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At the moment’s agenda: Trump “pissed off” at Putin; China’s WTO disputes; Massive Learn on Iran; UBS’s “deal of the year” sours; and Pilita Clark on the WhatsAppification of labor
Good morning. We begin the working week with a have a look at how Germany’s defence spending spree is affecting monetary markets throughout the EU.
What’s taking place: Germany’s shift from its historic reluctance to borrow to a “whatever it takes” plan for navy and infrastructure spending has helped increase 10-year Bund yields to almost 3 per cent this month — ranges final seen in 2023. That has in flip pushed up bond yields in different international locations, similar to France and Italy, due to German debt’s function because the de facto benchmark for the bloc’s market.
Why it issues: Buyers have warned concerning the impression on the funds of extra closely indebted EU economies. With extra fiscal strains, spreads — the extra borrowing prices international locations pay relative to Germany — might widen. This might make it a lot tougher for some international locations to mount borrowing campaigns of their very own, specialists mentioned, affecting their skill to extend defence spending.
Right here’s extra evaluation on how the Eurozone might be affected, and we’ve got extra on European defence spending beneath.
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Norway: The nation’s two foremost opposition events say its sovereign wealth fund, the world’s largest, needs to be allowed to spend money on defence corporations.
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Netherlands: Dutch pension funds are set to plough tens of billions of euros into dangerous property in Europe, in a lift to the defence sector.
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Portugal: Lisbon is not going to let rearmament prices threaten its price range surplus secured after years of austerity, its finance minister mentioned.
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Area of interest minerals: Costs of supplies for bullets and fighter jets are now surging as defence spending booms, writes Argus Media’s Ellie Saklatvala.
And right here’s what else we’re holding tabs on in the present day:
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Myanmar earthquake: About 1,700 individuals have been killed as worldwide efforts to get assist into the nation intensify.
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Financial knowledge: Germany stories its March client worth index whereas Italy points its provisional CPI for a similar month.
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EU power: A scheme to cut back fuel consumption by 15 per cent, designed to chop reliance on Russian energy throughout the bloc, ends in the present day.
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Marine Le Pen: The far-right chief might be banned from working for the French presidency as judges challenge their verdict in an EU fraud case in the present day.
5 extra high tales
1. Donald Trump has threatened secondary tariffs on patrons of Russian oil if no deal over Ukraine emerges. In a shift in tone, the US president mentioned he was “pissed off” with Russian President Vladimir Putin for foot-dragging in talks over a ceasefire with Ukraine. Right here’s extra from Trump’s outburst at Moscow.
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EU sanctions: A senior German politician has mentioned curbs in opposition to Moscow are hurting Europe greater than Putin, and that his nation ought to contemplate easing them.
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Tariff realpolitik: Trump’s commerce coverage is about energy and safety, not economics, writes Rana Foroohar.
2. Deloitte is rising as the largest early loser from Trump’s spending clampdown on consultants, forward of a deadline in the present day for the businesses to supply worth cuts and different concessions. The administration mentioned that 10 corporations, together with Accenture and IBM, are heading in the right direction to collectively invoice the federal authorities $65bn in charges in 2025 and future years.
3. China was focused by a report variety of disputes on the World Commerce Group final yr because the nation’s booming exports swamped worldwide markets and triggered objections from its industrial companions. New analysis confirmed Beijing accounted for practically half of all disputes lodged on the international commerce physique in 2024.
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Extra on China: 4 of the nation’s largest banks will elevate a mixed $72bn by share gross sales to buyers, together with the Ministry of Finance, as Beijing seeks to spice up lending in opposition to urgent financial woes.
4. Europe must act urgently or threat having all its know-how corporations listing on US inventory markets, Sweden’s prime minister has warned, after dropping homegrown tech corporations similar to Spotify and Klarna to New York. Ulf Kristersson advised the Monetary Instances that there was “a lot of homework to do” for Europe.
5. Trump has mentioned he’s “not joking” about serving a 3rd time period, including that there are “methods” by which he might bypass the constitutional prohibition on US presidents being elected 3 times. Trump, who’s 78, advised native media: “A lot of people want me to do it.”
The Massive Learn

Seven years in the past, Trump tore up an accord with Iran that strictly restricted its nuclear actions and had the buy-in of Europe, Russia and China. Now again within the White Home, the president is confronting the repercussions, as Tehran has aggressively expanded its nuclear exercise and is now locked on a collision course with the west that’s set to return to a head this yr.
We’re additionally studying . . .
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Elon Musk and Wisconsin: The billionaire’s transfer to spend $22mn on the state’s supreme court docket election has made it the most costly judicial race in US historical past.
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UBS: Two years on, the Swiss financial institution’s integration of Credit score Suisse goes nicely. So why is the “deal of the century” beginning to bitter?
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UK economic system: Fiscal tweaks gained’t resolve Britain’s progress drawback, writes Martin Wolf, who says the UK wants a extra radical programme of structural reforms.
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US immigration: Guests have suffered hostile therapy by the hands of border guards, together with a German vacationer who was shackled and jailed for 16 days.
Chart of the day
Weak oil costs are including to stress on Saudi Arabia’s huge spending programme as Riyadh prepares to unwind crude manufacturing cuts beginning tomorrow, which is more likely to push costs decrease. The squeeze comes as the dominion pursues formidable initiatives anticipated to price lots of of billions of {dollars}.

Take a break from the information . . .
The pandemic accelerated an increase in the usage of messaging apps similar to WhatsApp between colleagues — and in addition bred new ranges of informality at work, writes Pilita Clark. The Trump administration’s latest Signalgate scandal underscores the penalties of the WhatsAppification of labor.
