| Evening Briefing Europe |
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| The European Union said it agreed to accelerate negotiations with the US to avoid a transatlantic trade war. It signals a more amicable approach after President Donald Trump said he would extend the deadline for the EU to face 50% tariffs until July 9. Trump's change of heart came after a phone call with Commission President Ursula von der Leyen. "We had a very nice call and I agreed to move it," Trump told reporters yesterday. Talks so far have been beset with a multitude of problems, with no clear path to finding a middle ground that will appease them both. The Europeans have complained that it's not clear what the US wants or even who speaks for the American president, and the US has said the EU unfairly targets US companies with lawsuits and regulations. US and European equity-index futures climbed along with Asian stocks this afternoon. The dollar fluctuated after falling to its lowest level since December 2023.— Jennifer Duggan | |
What You Need to Know Today | |
| German Chancellor Friedrich Merz said Ukraine has been given permission to use weapons supplied by its allies to launch strikes deep inside Russia. "There are absolutely no range limits anymore for weapons delivered to Ukraine, not from Britain, the French or from us — also not from the Americans," Merz said at a conference in Berlin. Ukraine's Western allies are trying to put pressure on the Kremlin after Moscow launched its biggest drone barrage against Ukraine since the full-scale invasion over three years ago. | |
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| Trump's erratic policies offer a "prime opportunity" to strengthen the euro's international role and allow the currency bloc to enjoy more of the privileges so far reserved for the US, European Central Bank President Christine Lagarde said. If national governments can solve issues that have long restrained the European Union's economic potential, they could be rewarded with lower borrowing costs as well as protection from currency fluctuations and sanctions, Lagarde said in a speech in Berlin. | |
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| Volvo plans to eliminate around 7% of its global workforce as the Swedish carmaker cuts costs to counter muted demand and protect profits. The move will affect around 3,000 positions, including 1,000 consultants. The manufacturer employs around 43,800 people, more than half of them in Sweden. Chief Executive Officer Hakan Samuelsson is pushing through a sweeping efficiency program after Volvo reported a 60% plunge in first-quarter operating income. | |
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| A contested plan backed by the US and Israel to deliver food aid to Palestinians in Gaza is off to a rocky start, with the top organizer resigning and the scale and schedule of the handouts unclear. The Gaza Humanitarian Foundation (GHF), a new Swiss-based nonprofit, said it would begin operations today despite the last-minute walkout by its executive director, who decried what he described as the plan's departure from humanitarian principles. There have been scattered reports of a single aid center opening in the city of Rafah but no official word as to when and where Palestinians might get rations. | |
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| Chinese President Xi Jinping's government is said to be considering a new version of its master plan to boost production of high-end technological goods. It signals an intention to keep a firm grip on manufacturing as Trump looks to bring more factories back to the US. Officials are said to be drawing up plans for a future iteration of Xi's flagship "Made in China 2025" campaign. The plan over the next decade would prioritize technology including chip-making equipment. | |
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| Poland's two presidential candidates are heading into the final week of a neck-and-neck election campaign that risks leaving Prime Minister Donald Tusk boxed in by a nationalist rival. Political polarization in eastern Europe's biggest economy was on display at the weekend as tens of thousands turned out in Warsaw for rallies by Rafal Trzaskowski, the capital's mayor and a Tusk ally, and Karol Nawrocki of the opposition Law and Justice party. Polish presidents have the power to veto legislation, which means they can potentially clash with the government.  Rafal Trzaskowski, Mayor of Warsaw and candidate for President of Poland, center, and Donald Tusk, Poland's prime minister march with supporters in Warsaw, Poland. Photographer: Damian Lemanski/Bloomberg | |
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| Trump threatened to divert billions in grant dollars away from Harvard University and give those funds to trade schools across the US, escalating his clash with the elite institution. Harvard did not immediately respond to a request for comment. The Trump administration has already moved to freeze funding and block Harvard's ability to enroll international students in an intensifying battle over what the president has cast as a failure by the Ivy League university and others to crack down on antisemitism. | |
What You'll Need to Know Tomorrow | |
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| The transition to hyper-personalized artificial intelligence is fast approaching. Pretty much every big consumer AI player is trying to bolster their offerings this way, by leveraging your account data across various connected apps in their portfolio and device slate. | |
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