Good morning. PepsiCo sought to push up prices of soda and other goods at retailers to help Walmart, U.S. antitrust regulators alleged in a recently unsealed lawsuit that the Trump administration dismissed.

• What they allegedly did: To make sure Walmart’s prices were less than rivals, Pepsi tracked how much other retailers were charging, offered promotions to Walmart and in some cases tried to raise prices at other retailers, the lawsuit against the food and beverage company alleged. The lawsuit described Pepsi’s efforts as a long-term practice.
   
• The regulator's case: The Federal Trade Commission made the allegations in an antitrust lawsuit against Pepsi that the agency had filed in a federal court in New York City during the final days of the Biden administration. The lawsuit was dropped months later by the FTC under the Trump administration.
   
• How'd this bit get released? The lawsuit’s particulars had been confidential until last week, when the Institute for Local Self-Reliance, an anti-monopoly advocacy group, won its motion to unseal much of the redacted portions of the complaint.
   
• Context: The allegations shed light on the common industry practice of large consumer goods and food companies carefully managing their business with their largest retail customers because of the volume of sales at stake. Critics say the practice can force consumers to pay higher prices depending on where they shop and give large retailers unfair pricing power.

Crypto wallet company to pay $3.1 million in sanctions settlement.

Risk Journal's Richard Vanderford reports that cryptocurrency wallet provider Exodus Movement agreed to pay $3.1 million after it allegedly helped customers in Iran violate U.S. sanctions on the country.

Exodus, which provides software for wallets that let users access digital assets, in some instances told users based in Iran to use virtual private networks to hide their location, the Treasury Department’s Office of Foreign Assets Control said Tuesday. The alleged Iran-related wrongdoing took place from 2017 to 2019.

Recommendations. Treasury warned financial technology companies that they need to incorporate compliance controls into key business functions and properly train staff.

• President Trump’s push to loosen China’s influence in the Panama Canal has hit a wall now that Beijing is demanding that China’s largest shipping company get a controlling stake in a deal to sell dozens of ports to a BlackRock-led group.
   
• Risk Journal's Max Fillion reports on a new report from the country’s federal comptroller, which warned that state-sponsored actors and sophisticated cybercriminal groups pose an increasing threat to the U.S. financial sector.
   
• A group of state attorneys general led by Rob Bonta of California are suing the Trump administration in an effort to reclaim billions in funds to expand electric vehicle charging infrastructure.
   
• President Trump sued the BBC for defamation Monday over the broadcaster’s editing of a documentary that featured his speech before the Jan. 6, 2021, Capitol riot.
   
• The U.K.’s financial watchdog is proposing a set of rules aimed at policing everything from cryptocurrency exchanges to decentralized finance, reports Risk Journal's Mengqi Sun, as the agency looks to bring digital assets under the same rigorous standards as traditional finance.
   
• The European Union proposed watering down rules that would have effectively banned the sale of new combustion-engine cars in the bloc from 2035, after heavy pressure from the automotive industry.
   
• Singapore appointed DBS Bank its second Chinese yuan clearing bank, the Monetary Authority of Singapore announced Monday, marking another step in deepening financial ties between the two countries.
   
• The European Union targeted information warfare and cyberattacks carried out on behalf of Russia in sanctions imposed on 12 individuals and two entities Monday.
   
• The U.K.’s Competition and Markets Authority said it sees persistent problems with the country’s civil engineering space, adding that companies and public bodies are caught in a “cycle of inefficiency” driving up costs and reducing quality.

Suspected Russian hackers step up attacks on U.S. energy firms, research shows.

Hackers backed by the Russian government have changed tactics in a yearslong campaign against energy companies in North America, Europe and the Middle East, according to Amazon.com cybersecurity researchers.

The attackers are targeting internet routers and other widely used devices that have been set up incorrectly or sport known security holes, Amazon said Monday.

• The alleged perpetrator had improper access to virtually every South Korean adult’s personal information: names, phone numbers and even the keycode to enter residential buildings.
   
• European security officials now regularly broadcast a message nearly unimaginable a decade ago: Get ready for conflict with Russia.
   
• The U.S. could hike tariffs or take other trade action against the European Union if the 27-nation bloc doesn’t stop imposing fines on American tech companies, the U.S. trade chief said on Tuesday.
   
• President Trump was frustrated at an Israeli operation to kill a top Hamas commander without giving the U.S. prior notice, fearing it could disrupt a fragile cease-fire in Gaza that he considers one of his major achievements, U.S. officials and a person familiar with the matter said.
   
• The U.S. military said it carried out strikes on three boats it suspected of drug smuggling in the Eastern Pacific on Monday, killing eight men, the latest attacks in Washington’s campaign against such vessels.

• Warner Bros. Discovery is preparing to tell its shareholders to reject Paramount’s latest offer as soon as Wednesday, people familiar with the matter say, and plans to recommend they support its existing deal with Netflix instead.
   
• The Trump administration expanded its travel ban to cover five additional countries, and added partial bans on 15 additional countries, in a move to formalize President Trump’s promised crackdown on “third-world countries.”
   
• Susie Wiles, President Trump’s chief of staff, rarely speaks on the record, prefering to stay out of the spotlight. But in a series of 11 interviews for Vanity Fair over the past year, she spoke candidly about how she wields power inside the White House and offered reflections on Trump’s policies and the staff she manages.
   
• The U.S. is facing a yearslong waitlist for electric transformers due to surging demand, particularly from artificial intelligence.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Mengqi Sun at mengqi.sun@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.

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