Good morning. A spate of Supreme Court rulings over the last week promises to dramatically reshape the way regulation is created and upheld in the U.S., starting with proposed rules by the Biden administration to rein in businesses on noncompete clauses and bring transparency to how companies navigate the risks of climate change.

• Why it matters: Under President Biden, agencies such as the Securities and Exchange Commission and the Federal Trade Commission have moved aggressively to apply decades-old statutes to issues ranging from climate change to cryptocurrency. Their actions have at times been met with fierce opposition from companies and trade associations. The high court's latest rulings give opponents new ammunition to fight those regulations.
   
• The regulations at issue: The rulings have the potential to impact a whole host of regulations, including those related to environmental, labor and workplace safety protections. Among the rules at stake for the FTC is one banning employers from using noncompete clauses to prevent most workers from moving to competitors. The proposal was the first time in more than 50 years that the agency issued a regulation to mandate an economywide change to how companies compete. It said such clauses violate a 110-year-old law prohibiting unfair methods of competition.
   
• Curtailing agency power: In one of the final actions of its term, the court on Monday issued a ruling allowing newly created businesses to contest even decades-old regulations, including those that may have beat back prior claims of government overreach. The court last week also overturned the Chevron deference legal doctrine, which instructed courts to yield to agency interpretations in cases involving ambiguous statutes. 
   
• The upshot: The rulings give more ammunition to opponents of Biden's regulatory agenda. But they also represent a sea change in the balance of agency power in the U.S. “It’s a complete shift away from the predominant way of looking at agency action from the last few decades,” said Justin Weitz, a lawyer at Morgan Lewis & Bockius. 

Related: Supreme Court Declines to Wade Deeper Into Bankruptcy Releases After Purdue Ruling

Note to readers: The Morning Risk Report will be off tomorrow in observance of the Fourth of July holiday. We'll be back Friday.

Biden administration announces rules to protect workers from extreme heat.

The Biden administration on Tuesday released long-anticipated proposed rules that would establish the first federal safety standard for protecting workers from extreme heat on the job.

The Labor Department rules, which apply to indoor and outdoor workplaces, would require employers to provide water when the heat index climbs above 80 degrees Fahrenheit. Employers also would need to provide access to shade or air-conditioned break rooms.

• The Federal Trade Commission has voted unanimously to block Tempur Sealy’s proposed $4 billion acquisition of Mattress Firm due to competition and pricing concerns, challenging a bedding deal years in the making.
   
• A federal appeals court Tuesday reinstated a $10 billion antitrust lawsuit against 10 banks after finding that a judge who had earlier dismissed the case should have recused himself because of an apparent conflict of interest first exposed by The Wall Street Journal.
   
• A student's luggage was found to be part of a barely concealed network of buyers, sellers and couriers bypassing the Biden administration’s restrictions aimed at denying China access to Nvidia’s advanced AI chips, The Wall Street Journal has found.
   
• Boeing faces an unprecedented decision in the next several days: plead guilty, or argue at trial why it is innocent of a crime it already said it committed.
   
• The European Union gave Deutsche Lufthansa its conditional green light to buy a minority stake in ITA Airways, the Italian carrier formerly known as Alitalia, increasing the German carrier group’s reach in Europe and exposure to the lucrative Italian market.

Investors give lifeline to Texas bank confronting real-estate risks.

A Texas-based regional bank with heavy commercial real-estate exposure is raising $228 million from a group of investors led by Fortress Investment Group, the latest sign of the mounting pressure on banks that lend to that sector.

Fortress, Canyon Partners, Strategic Value Bank Partners, North Reef Capital and other investors agreed to buy common and preferred shares from First Foundation, a Dallas bank with some $14 billion in assets, according to the firms.

• The chief executive of the world’s leading arbiter of corporate climate targets is stepping down from the role following months of controversy over the group’s decision to consider carbon offsets as one way companies can meet their climate goals.
   
• Fighters from Sudan’s paramilitary-turned-rebel Rapid Support Forces ransacked and looted towns, markets and homes in the southeastern agricultural state of Sennar, opening up a new front in the country’s 14-month-old war as aid groups warn of an impending famine.
   
• Shell will pause the construction of its Rotterdam biofuels facility, one of Europe’s largest, as it seeks to rein in project costs amid weak global demand for the fuel.
   
• Big companies including AT&T, Keurig Dr Pepper and Krispy Kreme are pulling back on a type of short-term financing that gives them more time to pay their invoices.
   
• A private gauge of China’s services sector signaled the slowest pace of activity growth in eight months in June, reflecting the trend seen in official data.

The San Francisco-based company appointed Damien Kieran as chief privacy officer in a newly created position that brings together several privacy-focused roles across the organization under one function. Kieran spent seven years at what was formally Twitter, leaving his job as chief privacy officer there following Elon Musk’s takeover of the social-media platform.

• President Biden’s reliance on a tight circle of loyal advisers, family members and political confidants to navigate the aftermath of his poor debate performance helps explain why he isn’t changing course.
   
• A judge delayed Donald Trump’s hush-money sentencing until September, granting the former president’s request to weigh whether the Supreme Court’s immunity ruling affects his New York criminal conviction.
   
• The Department of Homeland Security said Tuesday that 116 Chinese nationals were deported back to China, a move that came after a surge of Chinese migrants entering at the U.S. southern border in recent years.
   
• By Friday, British Prime Minister Rishi Sunak will almost certainly be drummed out of Downing Street and his ruling Conservative Party facing its deepest hole in more than a century.

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