Good morning. Lululemon Athletica’s board was narrowing in on a resolution of its long-running spat with company founder Chip Wilson last week. Then things went sideways.

• What went wrong? Wilson was unaware that talks were breaking down. It took a surprise response from Executive Chair Marti Morfitt on Sunday—and then a broadside from the company Monday that publicly accused Wilson of negotiating in bad faith—for that reality to hit home.
   
• What the board said: “We feel there is no genuine intention to work collaboratively with the Board and management,” Morfitt wrote to Wilson, in an email viewed by The Wall Street Journal.
   
• Two steps back: The settlement had gotten close enough for the two sides to start working on a joint press release to announce the terms. Now, the Lululemon board is digging in and preparing to take its fight all the way to the annual meeting, where shareholders will choose between three directors picked by the company and three picked by Wilson.
   
• What this could mean: Open war with Wilson could hamstring the company just as management is trying to chart a new course. Sales in North America have been falling, and the stock has dropped by more than 60% over the past year. Wilson, who is the company’s largest individual shareholder, has lashed out at Lululemon’s management and board for months, blaming them for the retailer’s having lost its “cool” and its status as a leader in technical athletic apparel.

CFTC sues Minnesota over prediction markets ban.

The U.S. derivatives regulator sued the state of Minnesota over its blanket ban on prediction markets, Risk Journal’s Richard Vanderford reports, with the agency asking a federal court to strike down the new law. (free link)

Minnesota improperly tread on federal jurisdiction with a law criminalizing the operation of prediction markets, the Commodity Futures Trading Commission said Tuesday in a complaint filed in federal court in St. Paul, the state’s capital.

The new state law: Minnesota Gov. Tim Walz on Monday signed the legislation, which would impose felony sentences on prediction market founders and operators. The measure is set to take effect in August.

DOJ accuses four manufacturing firms of fixing shipping container prices.

The Justice Department indicted four shipping container manufacturers, alleging that they conspired to restrict the output and fix prices of shipping containers for at least four years.

What are the charges? The companies—Singamas Container Holdings, based in Hong Kong, as well as China-based China International Marine Containers, Shanghai Universal Logistics Equipment, and CXIC Group Containers—supply nearly all of the world’s standard unrefrigerated shipping containers, the DOJ said. The four firms allegedly conspired to roughly double container prices between 2019 and 2021, resulting in roughly a hundredfold increase to their profits, the Justice Department said.

• Risk Journal reports: The U.S. is reviewing its old sanctions designations and could sunset ones it finds obsolete, Treasury Secretary Scott Bessent said, arguing that leaving the measures in place indefinitely can have unintended effects. (free link)
   
• The U.K. government fined a major German bank for facilitating two payments to a sanctioned Russian entity in breach of Russia sanctions regulations, Risk Journal reports. (free link)
   
• The U.S. sanctioned an Iranian foreign currency exchange business as well as vessels involved in Iran’s shadow fleet as part of its “Economic Fury” campaign. (free link)
   
• Switzerland’s federal police said it is at the center of one of the largest money laundering cases in Europe linked to Russia sanctions evasion. (free link)
   
• The European Union on Monday renewed sanctions targeting individuals and entities linked to Syria’s former Assad regime for a further year while removing seven entities from the sanctions list—including the ministries of defense and interior—to deepen engagement with Syria’s new government. (free link)
   
• President Trump’s extraordinary agreement with the federal government expanded Tuesday to end all pending tax audits of him and his businesses, according to a document posted by the Justice Department.
   
• President Donald Trump’s investment portfolio actively traded UnitedHealth Group as the stock was whipsawed by a federal policy proposal on Medicare rates earlier this year.
   
• A legal watchdog group has accused FCC Chair Brendan Carr of breaching ethical obligations by pressuring broadcasters over speech.

Mediators see little progress in U.S.-Iran talks.

Iran’s position in talks with the U.S. to end the war hasn’t changed much from earlier iterations that failed to yield progress toward a deal, regional mediators and U.S. officials familiar with the terms said, raising questions about whether an offramp to the conflict can be found.

The comments came after President Trump said he had called off military strikes planned for Tuesday in light of what he called positive developments at the negotiating table.

• U.S. Seized Iran-Linked Oil Tanker in the Indian Ocean
• How Iran Got to the Nuclear Threshold on the Watch of Three U.S. Presidents
• Inside the Tiny Oil Sheikhdom Cut Off by the Iran War

Xi Jinping is now the world leader he wanted to be, but it has come at a cost.

The arrival Tuesday of Russian President Vladimir Putin in Beijing will mark a watershed moment for Chinese leader Xi Jinping, one that he has pursued since taking power in 2012—and bet his country’s future to achieve.

Welcoming Moscow’s ruler just days after President Trump’s motorcade swept out of the Chinese capital represents, for Xi, a vindication of 14 years of relentless economic competition with the U.S. and his strategic embrace of the Kremlin through the Ukraine war.

It is a victory on the world stage that has come at a cost at home.

• Taiwan Semi’s Big Takeaway From the Trump-Xi Talks
• Taiwan Presses Its Case After Trump Puts Arms Sales in Question
• Putin Seeks a Boost From Xi in Beijing as War Effort Falters

• Health officials are rushing to contain a deadly Ebola outbreak in what is already one of the most dangerous corners of the world.
   
• The son of fashion chain Mango’s billionaire founder was arrested by Spanish police and accused of playing a role in his father’s death after learning that he planned to change his will.
   
• German government said it plans to cut its stake in the utility Uniper to a minority position, four years after being forced to bail the company out in the wake of the energy crisis sparked by Russia’s full-scale invasion of Ukraine.
   
• The co-founder, largest shareholder and former chief of data-center developer Fermi has committed to holding a shareholder vote in late June to overhaul the embattled company’s board.
   
• Target named a former Walmart executive as its new head of supply chain as it tries to reverse years of sluggish sales that were caused, in part, by unreliably stocked shelves.
   
• A weekslong selloff in government bonds has intensified in recent days, threatening to drive up borrowing costs across the globe and knocking some momentum out of what had been a furious stock rally.
   
• New York City’s unionized workers are getting big raises.
   
• Samsung Electronics’ management and its union leaders failed to reach a bonus-pay deal in last-minute talks aimed at averting a strike at the world’s largest memory-chip maker.
   
• Indonesia’s central bank snapped a long-running pause to deliver its first rate hike in over two years, making a pre-emptive strike against the inflation threat posed by the conflict in the Middle East.

• Public sentiment toward artificial intelligence and data centers has rapidly soured, affecting elections and leading to protests and isolated acts of violence.
   
• Meanwhile, employers have singled out AI in recent years as a reason to cut back on hiring college graduates. Now some companies are flipping that narrative, saying AI is boosting their need for entry-level workers.
   
• President Trump on Tuesday endorsed Texas Attorney General Ken Paxton for Senate over incumbent Sen. John Cornyn, throwing an 11th-hour curveball into a vicious and tightly contested Republican primary and frustrating some GOP senators.
   
• At a lunch this month between President Trump and tobacco executives, the conversation turned to nicotine pouches, one of the hottest products in the market. The meeting was a boon for a booming product—one that has gained popularity across the Trump administration, with even key health officials indulging.
   
• Sam Altman’s high-profile courtroom win against Elon Musk on Monday comes at a cost for the OpenAI CEO.