Trade talks between the US and China got underway this afternoon in London. The Trump administration is signaling a willingness to remove restrictions on exports imposed as part of its global trade war in exchange for assurances that China is easing limits on rare earth shipments. The meeting is expected to extend into the UK evening and might spill into Tuesday.

The first round of negotiations since the teams met a month ago is aimed at restoring confidence that both are living up to commitments made in Geneva, where a temporary truce was reached. That deal was seen as largely benefiting Beijing. Kevin Hassett, head of the White House’s National Economic Council, appeared to indicate the US is willing to offer more concessions, though he added it would stop short of including the most sophisticated artificial intelligence chips made by Nvidia as part of any deal.

US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are meeting a Chinese delegation led by Vice Premier He Lifeng. The addition of Lutnick, who’s in charge of curbs on the sale of advanced technology, could signal President Donald Trump may be willing to reverse some key US restrictions. —Jennifer Duggan

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Russia and Ukraine started a major prisoner exchange today after days of wrangling cast doubt over the only concrete result of peace talks last week. The first groups of prisoners under the age of 25 were transferred by both sides. The returning Russian soldiers are currently in Belarus, the Defense Ministry in Moscow said on its Telegram channel. Ukrainian President Volodymyr Zelenskiy confirmed the first soldiers were returned from Russian captivity and said the process would continue in several stages over the coming days.

Precious metals traders at top banks including JPMorgan and Morgan Stanley  posted their best performance in five years during the first quarter, in part thanks to an arbitrage opportunity that sparked a rush of bullion into the US. Twelve leading banks combined to make $500 million in revenue from precious metals, the second-highest figure in a decade of data compiled by Crisil Coalition Greenwich. That’s approximately twice the average earnings per quarter over the past ten years, the market intelligence firm’s data showed.

UK Prime Minister Keir Starmer’s government said more than three-quarters of pensioners in England and Wales will receive cold weather fuel payments this winter. That reverses much of a cut many in his party blamed for Labour’s declining poll numbers. The U-turn comes after a year in which Starmer spent much of his time telling voters they needed to make difficult spending cuts because of the battered public finances left behind by the previous Conservative government.

Referendums to liberalize Italy’s naturalization rules and bolster workers’ rights failed to garner enough turnout, dashing opposition hopes that a strong showing could weaken the position of hard-right Prime Minister Giorgia Meloni. Only about 30% of eligible voters turned out, according to preliminary figures from the Ministry of Interior, well below the required threshold of 50%-plus-one voter. The series of votes proposed by Italy’s opposition parties asked voters whether they supported shortening the timespan necessary for non-European Union nationals to naturalize to five from 10 years. 

Barclays is said to be preparing to cut more than 200 jobs in its investment bank in the coming days as part of Chief Executive Officer C.S. Venkatakrishnan’s plan to boost the profitability of the division. Staffers in investment banking, global markets and research are likely to be at risk, with managing directors the most senior roles affected. The reduction represents about 3% of the investment bank’s headcount. 

C.S. Venkatakrishnan Photographer: Bess Adler/Bloomberg

Israel intercepted a humanitarian aid ship en route to Gaza that was carrying activists including Swedish climate advocate Greta Thunberg, and said it would send those on board back to their home nations. The Freedom Flotilla Coalition, which operates the vessel, said in a statement the boat was forcibly blocked in international waters, its crew detained and the cargo — which included food, baby formula and medical supplies — confiscated. 

As fiscal-deficit concerns rocked global bond markets last month, an unusual thing happened. The bonds of Italy, Greece and Spain rallied. Just a few years ago, this would have been unthinkable — the countries had long been relegated to the periphery of European markets — seen as incorrigible spenders in the eyes of traders. But today, they have emerged as relative stewards of fiscal prudence, holding the line on deficits after hard-learned lessons of forced austerity that toppled political leaders. 

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