Spain and Portugal lost power shortly after 12:30 p.m. local time in a massive blackout that idled public transport, airports and phone services, bringing the daily activities of millions to a halt. While some areas across Spain gradually came back online in the afternoon, restoring all supply in the country was to take until at least the evening, according to grid operator Red Electrica.

The cause of the outage is still under investigation. While officials suspect that sharp swings in power were responsible for the worst blackout in Europe in years, a cyber attack hasn’t been entirely ruled out.

People line up to withdraw cash at an ATM in Madrid on Monday. Photographer: Thomas Coex/AFP

A countrywide blackout is quite unusual for any European nation, but not unprecedented. In 2003, Italy saw the worst power cut in more than half a century when a breakdown of electricity lines from neighboring nations impacted 54 million people. In 2019, a major outage hit London when a gas plant and an offshore wind farm went offline almost simultaneously.

“For the moment, the investigation seems to point to a technical/cable issue,” the European Union Agency for Cybersecurity said of the outage in Spain and Portugal. It added however that it’s “closely monitoring” the situation and is in contact with national and EU authorities. Follow our live blog here for updates. —Natasha Solo-Lyons and David E. Rovella

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IBM plans to invest $150 billion in the US over the next five years, including more than $30 billion for research and development of IBM’s mainframes and quantum computers, the company said Monday. One of the country’s biggest technology employers, IBM said its goal is to fuel the economy and to “accelerate its role as the global leader in computing.” Companies ranging from Apple to Eli Lilly have laid out plans to spend billions of dollars boosting their US manufacturing presence since Trump’s election. But many of the plans were already in the works before he took office or closely track prior spending trends.

Less than two weeks after declaring an Easter ceasefire only to breach it almost 100 times according to Ukrainian officials, Vladimir Putin says he wants a new ceasefire in his war on Ukraine. Russia has been reluctant to commit to any long-term peace agreement, even when presented with terms by a friendly Trump administration that would require Ukraine cede large swaths of territory. Trump, who has repeated falsehoods about who started the war and criticized Ukraine President Volodymyr Zelenskiy, is eager for a peace deal for the 100-day mark of his second term.

Ukraine President Volodymyr Zelenskiy at the site of a Russian strike in Kyiv on April 25. The missile and drone attack killed at least nine people and injured over 70. Photographer: Andrew Kravchenko/Bloomberg

Trump’s tariffs are already boosting US prices. Discount Chinese retail app Temu appears to be passing on nearly all of the new import taxes to consumers, more than doubling the cost of some products. Previously exempted from any levies under the so-called “de minimis” rule, parcels priced up to $800 now face a tax of 120% of a product’s value or a per-postal item fee of at least $100 starting May 2. Temu is requiring customers to pay those levies on top of the original cost of the goods.

The threat of inflation tied to Trump’s trade war has fueled a steady drop in his approval ratings, which are now at record lows for a president this early in his term. Less than 100 days after talking office, the 78-year-old Republican’s approval rating now sits at 39%, according to the latest polls.

Trump’s strongest issue has been his radical crackdown on undocumented immigrants, legal immigrants and foreign students. But even support for that is beginning to erode as more stories including the deportation of three small children—all US citizens including one reportedly with advanced cancer—come to light. Trump border official Tom Homan defended the deportations, alleging their non-citizen mothers chose to have them deported to Honduras, too. Lawyers for the families denied the mothers were provided a choice.

Tom Homan  Photographer: Francis Chung/Politico

Not everyone is totally pessimistic when it comes to markets. In fact, over at JPMorgan’s trading desk, the crowd is turning tactically bullish on US equities, predicting that tailwinds including Big Tech earnings and possible trade deal announcements will continue to lift stocks after the recent rout.

Still, the bank was quick to emphasize in a note to clients Monday that the rally’s momentum could fade within weeks, with the negative impacts of US tariffs poised to begin dragging on the economy in the months ahead. “Overall, the de-escalation trade has room to run,” wrote head of global market intelligence Andrew Tyler, adding, however, that “this is not an all-clear for markets.”

In trading Monday, a late-day wave of dip buying wiped out losses in stocks, with Wall Street investors awaiting a slew of corporate earnings and economic data for insights on the impacts of  Trump’s tariff war. The S&P 500 closed at about the same place it was last September. Here’s your markets wrap. 

The US Treasury ramped up its estimate for federal borrowing for the current quarter to account for a much smaller starting stockpile of cash than it had projected—a consequence of Congress having failed as yet to raise the federal debt limit.

The Treasury Department said in a statement Monday that it now estimates $514 billion in net borrowing for April through June, up from the $123 billion it had penciled in back in February. As is its usual practice, the Treasury had assumed in its previous projections that the debt ceiling—which kicked back in at the start of January—would be raised or suspended. But lawmakers are still working on the issue.

Claudia Sheinbaum  Photographer: Stephania Corpi/Bloomberg

President Claudia Sheinbaum is more admired by Mexicans than even her popular predecessor Andres Manuel Lopez Obrador, a status that is fueling economic optimism despite risks of a recession and the perils of a US trade war. Two-thirds of Mexicans, 67%, hold a positive image of Sheinbaum, putting her three points ahead of Lopez Obrador, according to a new survey. AMLO, as the former president is known, left office last year as one of Latin America’s most popular leaders, handing the reins of the region’s second-largest economy to his political protege. Sheinbaum’s management of the government won approval from 66% of respondents in April, up about five points from a month ago, while disapproval fell nearly six points to 28%.

See Bloomberg’s coverage of what the administration’s policies mean for you, your business and the world.

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