Flagship

Tax bill sparks bond selloff

Republicans will likely today pass a mammoth tax-cutting bill that has set off market jitters for drastically widening an already yawning budget deficit. GOP members of the House of Representatives unveiled a revised proposal Wednesday that would accelerate cuts to health care spending and a phaseout of clean-energy tax breaks in a bid to win over fiscal hawks. Independent analysts forecast that the planned spending curbs would not offset tax cuts, and that the bill would add about $3 trillion to overall US debt. Bond traders appeared unconvinced by the plans: Demand at an auction of new, 20-year US debt was lower than in recent months, and the yield on 30-year Treasurys neared a two-decade high.

EU looks to kickstart US talks

The European Union sent a revised trade proposal to Washington as it seeks to revive seemingly moribund negotiations. The offer, sent ahead of talks between the EU’s top economic official and the US Treasury secretary today, would reportedly align the two economies on issues such as energy and artificial intelligence, and cut tariffs on non-agricultural goods to zero. However, any such deal would still result in higher barriers than before, the EU’s economy commissioner noted, and would be an “economically suboptimal outcome.” Instead, a former EU trade negotiator argued, the bloc should diversify its relationships and join the CPTPP, a trans-Pacific trading agreement. “In a stormy world,” she wrote, “you need friends and allies.”

Ramaphosa wins plaudits

South African President Cyril Ramaphosa’s calm performance in the face of US leader Donald Trump’s Oval Office ambush won plaudits at home. Trump showed Ramaphosa videos of firebrand South African politicians calling for violence against whites, but the South African leader sought to focus discussion on trade and investment instead. “Lawmakers across party lines found themselves quietly cheering,” Semafor columnist Sam Mkokeli wrote. Afrikaners, however, were divided: One politician said the meeting put the minority’s issues “on the international agenda,” but a leading columnist argued that the stories were “hyperbole and misinformation.” The Financial Times’ foreign editor — formerly a longtime correspondent on the continent — said Pretoria had ignored inflammatory language from populists, but that Washington’s claims of genocide were “absurd.”

Israeli embassy staff shot in DC

Two Israeli embassy staff were shot dead outside a Jewish museum in Washington, DC, by a man who reportedly shouted “Free, free Palestine.” A suspect, Elias Rodriguez, was arrested following the fatal attack, which the US ambassador to Israel called a “horrific act of terror.” US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu both called the killings antisemitic, and Netanyahu said that security would be stepped up at embassies around the world. Rodriguez apparently entered the museum after the shooting and handed himself in to police. The museum’s director had said previously that Jewish institutions in the US “are concerned about security due to some very scary incidents [and] a climate of antisemitism.”

India’s narrative push

India launched a crackdown on dissent at home and a charm offensive abroad in an effort to push its narrative over a military showdown with Pakistan. The standoff involving retaliatory aerial exchanges this month was the worst between the two nuclear-armed neighbors in years, triggered by the killing of dozens of tourists in Kashmir. Domestically, India has ordered the suspension of 8,000 accounts on X, including journalists and media outlets, while police arrested an academic who criticized “those who are mindlessly advocating for a war.” New Delhi is also dispatching seven delegations made up of lawmakers, officials, and diplomats to 32 countries to press for greater criticism of Pakistan, which India accuses of supporting militancy in Kashmir.

China ups WHO donations

China will give $500 million to the World Health Organization over five years, replacing the US as the institution’s biggest state donor. The US gave $1.2 billion across 2022 and 2023, but President Donald Trump announced in January that it would withdraw altogether. Beijing is trying to portray itself as a global leader, capitalizing on Washington’s isolationist turn: Its defense minister also said it would contribute more to peacekeeping, and a Chinese scholar told The Washington Post that China would likely take a bigger leadership role elsewhere. It is not a purely altruistic move: Beijing has sought to use its growing clout in international bodies to press its territorial claims in the South China Sea and over Taiwan.

Weight-loss drugs loophole closes

A loophole allowing US citizens to gain cheap access to weight-loss drugs closes today. The Food and Drug Administration allowed “compounding pharmacies” — which sell customized medications to patients — to make generic versions of semaglutide, aka Ozempic, because it agreed there was a shortage. As a result, a huge industry sprang up, with patients able to buy the compounded drugs for as little as $199 a month, compared with around $1,000 for the branded versions. But the FDA has declared the shortage over, so many patients will either have to come off the drugs or pay the full price. Pharmacies are seeking new loopholes, such as offering personalized doses, and the industry is gearing up for a legal battle.

Argentina pensions vote sparks protests

Dozens of people were injured after anti-government demonstrators clashed with police outside Argentina’s legislature. Hundreds protested in Buenos Aires after the lower house rejected a proposed pension increase, in line with President Javier Milei’s austerity drive. The “anarcho-capitalist” leader has overseen a rapid fall in sky-high inflation and returned Argentina’s budget to surplus, in part by slashing outlays. While Milei’s measures have helped spark investor interest in the country and boosted economic growth after years of stagnation, newly released figures showed the economy expanded at a slower pace than forecast in March, marking a challenge for the president ahead of key midterm elections.

Record forest losses

Wildfires drove a record loss of the world’s forests in 2024. In tropical regions, fire became the biggest cause of forest loss for the first time since records began, ahead of logging, agriculture, and mining. Brazil saw the greatest losses — 10,000 square miles, or 42% of the total area lost — a World Resources Institute report found. Some countries, including Indonesia and Malaysia, had success at stemming deforestation, but overall 17 of the 20 most forested countries saw greater losses than in 2021, when a global deal to protect woodland was signed. Changing rainfall patterns driven by climate change are leaving large areas of forest vulnerable to fire: A researcher called it “frightening.”

Canadian wins NBA MVP

A 26-year-old superstar for the Oklahoma City Thunder won the NBA’s Most Valuable Player award, cementing a run of dominance for non-US basketball stars. Toronto-born guard Shai Gilgeous-Alexander — whose team is currently three wins away from the NBA Finals — is the seventh consecutive winner born outside the US, where the majority of the league’s players are from: Prior MVPs hailed from Serbia, Cameroon, and Greece. And thanks to the NBA’s collective bargaining agreement between players and teams, receiving the award also catapults “SGA” into a new contractual class: Winning various accolades opens players up for bigger contracts. As MVP, he is now eligible for the richest deal in league history, valued at $380 million over five years.