Good morning. ECB Chief Christine Lagarde says it may be time for the euro to shine. EU regulators tell Shein to deal with consumer protection violations, or else. And India has developed a new weather model to better predict rainfall. Listen to the day's top stories.
It's time to take advantage. European Central Bank President Christine Lagarde says Donald Trump's erratic policies are creating a "prime opportunity" to strengthen the euro's international role as a reserve currency and let the bloc enjoy lower borrowing costs and protections from sanctions. Her comments show how policymakers are seeking to turn Trump's attacks on trade and US institutions to their benefit.
Photographer: Bing Guan/Bloomberg
Car trouble abounds in Europe. Volvo Car plans to cut about 7% of its global workforce—some 3,000 positions—as the automaker reduces expenses to counter muted demand. It expects to incur restructuring costs of as much as 1.5 billion Swedish kronor ($158 million). Over at Volkswagen, four former managers were convicted in Germany for their roles in the diesel-emission scandal that surfaced almost a decade ago.
Ukraine gets the green light. Germany gave Kyiv the all clear to strike deep inside Russian territory, with Chancellor Friedrich Merz saying there are "absolutely no range limits anymore." The Kremlin called the decision dangerous and counter to the goal of reaching a political settlement, Interfax reported. Moscow brushed aside Trump's criticism of Vladimir Putin as an "emotional reaction."
Meituan prepares for some bumps in the road. The Chinese food delivery leader warned that global expansion efforts and intensifying competition at home may hurt short-term profitability. Longer term, CEO Wang Xing said its international push "represents a very good, very promising growth opportunity."
Deep Dive: Time for Shein to Face the Music
Photographer: Yuki Iwamura/Bloomberg
Regulators in Europe are turning up the heat on Shein. The European Commission and consumer watchdogs from Belgium, France, Ireland and the Netherlands warned the e-commerce giant it may face fines if it doesn't clamp down on consumer protection violations on its platform.
The step, known as a "common position," is the next move in a probe into Shein's compliance with rules on product safety and consumer law that opened in February. If Shein fails to address the violations, regulators could levy fines of at least 4% of its yearly sales in affected member states.
Temu and Apple faced similar actions back in November from the commission, which is increasingly leaning on a mechanism known as the Consumer Protection Cooperation Network—a body focused on tackling platforms that breach rules.
Shein's trouble doesn't end in Europe. In more bad news for the brand, Japan is mulling a review of tax exemptions for small parcels including those shipped from China, joining the slew of governments stepping up scrutiny over the duty-free channel used by e-commerce firms.
The tech industry's push for AI agents appears to have kicked into overdrive, writes Catherine Thorbecke. Still, foundational cracks remain that will hold them back in the near term—and that's a good thing. The next phase of AI must unfold as a marathon and not a sprint to be successful.
Floodwater outside a house in Guwahati, India, on May 20. Photographer: Hafiz Ahmed/AFP
India's new weather model aims to improve rainfall predictions to a resolution of roughly 6 kilometers (3.7 miles)—doubling the current detail. The hope is the Bharat Forecast System will be able to help farmers and flood-preparation teams with predictions honed down to the size of villages.
Bloomberg Invest HK: New markets and new connections are powering Hong Kong's efforts to retain its role as a global financial center and economic gateway to China. From the so-called New Silk Road to Beijing's effort to strengthen the Greater Bay Area initiative, new investment opportunities are appearing in Hong Kong and across the Asia-Pacific region. Join us in Hong Kong on June 10-11 to hear more.
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