Good morning. Positive murmurs from the China-US trade talks are boosting stock markets. Ukraine President Volodymyr Zelenskiy says he hopes Russia's Vladimir Putin doesn't look for excuses to cancel their planned meeting this week. And Pope Leo calls for a lasting end to hostilities. Listen to the day’s top stories.
European stock futures rose along with US contracts and most Asian equities, as the US and China made “substantial progress” on trade talks. US Treasury Secretary Scott Bessent promised details today and China’s Vice Premier He Lifeng said there would be a joint statement.
Volodymyr Zelenskiy in Prague on May 4, 2025. Photographer: Milan Jaros/Bloomberg
Volodymyr Zelenskiy will be “waiting for” Vladimir Putin in Turkey on Thursday after Donald Trump insisted the two leaders meet, despite Moscow’s reluctance to agree to a 30-day ceasefire. UK Foreign Secretary David Lammy will unveil new sanctions targeting Russia as he hosts a security meeting of European ministers today.
An India-Pakistan truce appeared to be holding despite reports of both sides violating the pact within hours. Stocks in both countries soared.
A 13-year-old private Boeing aircraft that President Donald Trump toured takes off from Palm Beach International Airport. Photographer: Ben Curtis/AP
The Trump administration will accept a luxury Boeing 747-8 from Qatar’s royal family this week in what may be the most valuable gift ever received from a foreign government, ABC News reported. Qatar said reports of a gift were “inaccurate.”
Deep Dive: Rate Outlook
The European Central Bank will lower borrowing costs more than expected this year to 1.75%, as inflation is seen undershooting the institution’s target in early 2026, according to economists surveyed by Bloomberg.
After seven quarter-point reductions so far, additional cuts are likely in June and September, a monthly poll showed.
In the previous poll, respondents saw it staying at 2% throughout the survey period, which runs through the third quarter of 2027.
However, analysts predict the ECB will hike to 2% again in the first quarter of that year, leaving the forecast for the survey’s end point unchanged.
US airlines and hotels are bearing the brunt of Trump’s trade policies and declining consumer confidence, Andrea Felsted writes. European tour operators should buckle up too given broader concerns over sentiment and a slowdown in the luxury market.
Pope Leo XIV in The Vatican on May 11. Photographer: Alberto Pizzoli/AFP/Getty Images
Pope Leo XIV’s first Sunday address called for a lasting end to hostilities in Ukraine and Gaza, and the “miracle of peace” in all forgotten conflicts.
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