A strong market for US Treasuries is in everyone’s interest, said Bundesbank President Joachim Nagel. “We need a good US Treasuries market,” he told Bloomberg Television today, even as some investors have turned to German bunds instead. 

Treasuries sold off this month as threats of steep US tariffs escalated, and as President Donald Trump attacked Fed Chair Jerome Powell for not cutting rates fast enough. Trump appeared to moderate his stance on both issues today, and stock markets in Europe and the US rallied. Treasury Secretary Scott Bessent poured cold water on hopes that Trump is offering to take down US tariffs on China on a unilateral basis.

Nagel also said Germany is at risk of falling into a recession this year and that Europe “is in a stagnating situation” because of fallout from US tariffs. Business surveys released earlier in the day showed that private-sector activity almost stalled in the euro-zone economy this month, and unexpectedly shrank in Germany. Watch the full interview.— Philip Lagerkranser

What You Need to Know Today

Ukraine and its European allies have told the US that a ceasefire and clarity on security guarantees for Kyiv should precede any peace deal with Russia that involves negotiations about territory, we’ve learned. Officials are seeking more detail from Washington on the sequencing of its proposal to stop the fighting in Ukraine and to bring an end to Russia’s full-scale invasion. Earlier today, US Vice President JD Vance said in India that both Ukraine and Russia may have to give up some territory they hold as part of any US-brokered peace deal.

The European Union hit Apple and Meta with relatively modest fines totaling €700 million ($798 million) for violating new Big Tech antitrust rules, a sign the EU may be trying to avoid antagonizing Trump, who has warned of harsh retaliation for what he’s called non-tariff trade barriers. Apple was fined €500 million and Meta received a €200 million penalty. Regulators took aim at Apple for failing to allow developers to link out from its App Store, and at Meta over its business model for ad-free services on Instagram and Facebook. 

Tim Cook, chief executive officer of Apple  Photographer: Victor J. Blue/Bloomberg

Amundi’s clients are pulling away from the US and piling into European stocks and government bonds, we’re told. The comments from Europe’s biggest asset manager are in line with data from Morningstar that show a flight from US funds this month. It’s the latest example of the “sell-America” sentiment gripping markets after Trump’s chaotic tariff announcement in early April. 

Bessent said the US is willing to work with the International Monetary Fund and World Bank, while calling for change at the twin institutions. “Under the status quo, they are falling short,” Bessent said. The IMF should refocus on addressing balance-of-payments problems, and make its lending temporary, he said.

Tesla cut its outlook for capital spending this year, after reporting weaker-than-expected earnings yesterday. The cut reflects how Trump’s global trade war is hitting Tesla, whose CEO Elon Musk is a close Trump ally, and also the hit its brand has taken. Yesterday, Musk vowed to devote “far more” time to Tesla and pull back from his work with Trump. The company spent just $1.49 billion in the first three months of the year, its smallest outlay since the first quarter of 2021. 

Portugal will ask the EU to use an escape clause allowing an exception to the bloc’s fiscal rules so that countries can accommodate an increase in defense spending. The country’s defense spending lagged behind the NATO target of 2% last year. Prime Minister Luis Montenegro has said Portugal will bring forward a plan to meet the goal, without providing a new date. 

Estonia plans to build a military base in the city of Narva, close to its sensitive border with Russia. The base would be small and host a few hundred troops, and the government is seeking a location for it. The EU and NATO member state of 1.3 million has tense relations with Moscow and is a staunch supporter of Ukraine.

What You’ll Need to Know Tomorrow

For Your Commute

In certain corners of the internet, the ideal man lifts weights, tracks macros and speaks in clipped imperatives. He dresses not for comfort but for the camera, squeezing into compression gear or tightly tailored suits. Here’s a history of how the alpha-male ideal has evolved, from 19th-century strongmen to Joe Rogan. 

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