Good morning. US-China trade talks are set to start later this week. The conclave takes center stage in Rome. And how to book the best restaurants in Japan. Listen to the day’s top stories.
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US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet with Chinese Vice Premier He Lifeng this weekend in Switzerland for trade talks, seeking to de-escalate a simmering standoff. It will be the first confirmed trade negotiations between the countries since Donald Trump announced punishing levies of as high as 145% on China that were met with retaliatory rates of 125% from Beijing.
Escalation. India conducted military strikes on nine targets in Pakistan, which said it shot down five jets in retaliation. New Delhi said it targeted known terror camps, but Islamabad said 26 civilians were killed and called the move an “act of war.” For a wrap of the latest developments, see our blog coverage. And for more context on what’s behind the enduring conflict between India and Pakistan, read this explainer.
Sales of obesity shot Wegovy are set to rebound in the second half as competition from cheaper copies abates, according to the manufacturer’s finance chief. But the future of the drug’s pricing remains uncertain—here’s why. Disney reported results that beat Wall Street estimates. It also raised its outlook, citing strong performances from its theme parks and streaming.
Firefighters install a temporary chimney on the roof of the Sistine Chapel in Vatican City. Photographer: Mario Tama/Getty Images
Roman Catholic cardinals from across the globe have sealed themselves off in the Sistine Chapel to choose a new pope, who will set the moral compass for the Church’s 1.4 billion faithful and become a reference point for much of the world.
The highly secretive election will see 133 cardinals cast ballots to find a successor to Pope Francis who died in April. They’ll have no contact with the outside world during the process and will not be allowed to leave until they reach an agreement.
The closed-door deliberations will see debate on where the new pope should stand on topics including divorce, sexual abuse by clergy, and LGBTQ+ issues. Geopolitics will probably also be front of mind.
Once a decision is reached—signaled by a plume of white smoke from the Vatican roof— the announcement of a new pontiff will be made from a balcony overlooking St Peter’s Square.
The New York Stock Exchange at the opening bell on May 6. Photographer: Timothy A. Clary/AFP via Getty Images
US stock investors seem surprisingly confident Trump’s tariffs won’t be so bad, Jonathan Levin writes. US talks with China and others are a positive sign, but uncertainty remains and Trump’s take-it-or-leave-it stance adds to the risk of disappointment.
