Ukraine’s Volodymyr Zelenskiy stiffened his opposition to any concessions to Russia after Moscow carried out the biggest air strike so far this year. President Donald Trump has continued to press Zelenskiy to accept a peace deal, but the US leader also issued a strong condemnation of the latest Russian attack, urging Vladimir Putin to “STOP!” Russia fired 70 missiles of various types as well as 145 drones against Ukraine in the overnight barrage, with the main bulk of them aimed at the capital.

Even as the US is prepared to defend Ukraine’s right to maintain an army under any peace agreement, we’ve also reported that Washington is prepared to recognize Moscow’s control of Crimea -- something Zelenskiy has rejected. Europe, for its part, insists that a ceasefire and clear security guarantees for Ukraine must precede any agreement that involves negotiations over territory.

— Kevin Whitelaw

What You Need to Know Today

China rebuffed suggestions that trade talks with the US were ongoing and demanded that Trump revoke all unilateral tariffs. The remarks indicate that Trump’s comments signaling he could lower tariffs on China — which currently stand at 145% for most goods — won’t be enough to de-escalate tensions. Meanwhile, President Xi Jinping is seeking to repair ties with the European Union, painting China as the more reliable partner as Trump alienates the bloc over issues from tariffs to defense.

Deutsche Bank sees a “major” structural decline of the US dollar in the coming years that will bring it to the weakest level in more than a decade against the euro. The main factors: US tariffs, Germany’s fiscal boost and doubts about the US role on the world stage under Trump. The dollar hit a 16-month low this week. 

Nestle and Unilever are warning that consumers will face some fresh pain from higher prices as Trump’s tariff war and surging prices on commodities like coffee and cocoa are piling on new costs. The companies posted better than-expected sales in the first quarter despite raising prices, but Nestle noted there’s “soft consumer sentiment” around the world. Unilever also said Ben & Jerry’s is “not for sale” and will remain a key brand in its soon-to-be spun off ice cream division.

Norway’s $1.7 trillion sovereign wealth fund saw its biggest loss in six quarters — some $40 billion — driven largely by a decline in tech stocks. Despite the market tumult and tariff fears, Norges Bank Investment Management CEO Nicolai Tangen told Bloomberg TV he’s planning to boost investments in US stocks under the Finance Ministry’s mandate. Watch the full interview. 

Two of Britain’s richest real estate investors and a top London banker have shed their UK residency after a flurry of recent tax hikes hit the wealthy. UK natives Ian and Richard Livingstone now list Monaco as their place of usual residency, while Richard Gnodde, a Goldman Sachs vice chairman, is relocating to Milan from London. On the other side of the pond, Trump said that imposing a higher tax rate on millionaires, which some Republicans have been discussing, would probably send the US richest toward the exits.

South Africa abandoned a planned tax increase to prevent the coalition government from collapsing. Just a few days earlier, Finance Minister Enoch Godongwana had said he saw no alternative to boost the value-added tax from 15% to 15.5% on May 1. The surprise reversal leaves questions over how the resulting 75 billion rand ($4 billion) budget gap will be filled, and what will happen to the so-called government of national unity.

A Dubai-based company is trying to breathe new life into a 500-year-old tradition: smoking a waterpipe with flavored shisha tobacco. Advanced Inhalation Rituals, a firm with Syrian-Jordanian roots, wants to attract health-conscious global consumers by attempting to remake the hookah. Its plan: an electronic waterpipe called Ooka that uses rechargeable batteries and tobacco pods in the same way as a Nespresso coffee machine.

What You’ll Need to Know Tomorrow

For Your Commute

Trump’s tariff turmoil is opening up interesting opportunities for investors looking more globally. The experts we surveyed offered suggestions that include an electricity play in Spain, pharmaceutical companies in the UK and Japanese real estate. We also asked the experts how they’d spend a $10,000 windfall on something fun.

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