US President Donald Trump announced a trade framework with the UK today to bring down barriers and expand market access for American imports. Trump hailed the agreement as a “breakthrough,” though he said the final details of the pact would still be negotiated over the coming weeks.

It is the first agreement Trump has made since imposing tariffs on dozens of trading partners. Speaking at the White House, the President also said he intends to make a deal with the European Union and that he expects “substantive” talks with China.  

The British deal may provide clues for the shape of potential future agreements with other economies. The terms are limited in scope and they keep in place a 10% baseline tariff, according to Commerce Secretary Howard Lutnick. The pact spurred cautious optimism on Wall Street, with stocks up and bonds down. — Joshua Gallu

What You Need to Know Today

Vladimir Putin and Xi Jinping began bilateral meetings in Moscow, emphasizing the alliance between Russia and China as they seek to upend the US-led world order. This is the first time the two leaders have met in person since Trump unleashed his trade war. That has played into China’s mission to counter US supremacy — a task it has united with Russia over, particularly after Putin’s February 2022 invasion of Ukraine.

Vladimir Putin, right, and Xi Jinping ahead of talks at the Kremlin on May 8. Photographer: Evgenia Novozhenina/Getty Images

Most European companies in China have so far been able to limit the direct damage from the trade war, a survey has found, though a majority conceded their business environment has grown more challenging this year. The report comes amid signs of Beijing’s willingness to improve relations with Brussels, positioning itself as a more reliable partner at a time when Trump alienates the bloc. Last month, the European business group — which counts more than 1,700 corporate members — called on China to revise its industrial policies if it wants to avoid further backlash and build economic ties internationally.
 

The Roman Catholic cardinals gathered at the Vatican in Rome have chosen a new pope to lead the church’s 1.4 million faithful, announcing their decision with a swirl of white smoke from a smokestack above the Sistine Chapel. The identity of the new pontiff is due to be announced shortly from a balcony overlooking St. Peter’s Square where crowds have been waiting. The 133 electors began their Conclave on Wednesday. 

Europe’s carmakers will skirt billions of euros of fines for missing 2025 emissions targets after the EU granted them an extra two years to comply. The move will provide relief to the auto sector, which had been lobbying hard for a change to the rules after last year’s slump in electric-vehicle sales made achieving them more difficult. But relaxing short-term targets also raises questions about the feasibility of the EU’s future goals, most notably the obligation for new cars to be emissions-free by 2035.

Salesforce has begun building its team in Saudi Arabia as part of a plan to invest $500 million over the next five years to accelerate the adoption of artificial intelligence in the kingdom. Salesforce is expanding into Saudi Arabia as the kingdom pushes to digitize its economy and position itself as a global tech hub under its sweeping economic diversification agenda. Riyadh is planning a $100 billion AI project and is rapidly building out data centers and cloud infrastructure to support the effort.

Israel plans to set up distribution centers in southern Gaza and move a large number of Palestinians there, as it tries to balance international outrage over a blockade of aid to the enclave with continued pressure on Hamas. Israel cut off all deliveries to Gaza and relaunched military operations in early March after a six-week truce with Palestinian militant group Hamas fell apart. Blocking the entry of humanitarian aid is part of a campaign by Prime Minister Benjamin Netanyahu’s government to soften Hamas’ conditions for a potential new truce and return hostages. 

South Africa’s equity market is seeing the longest streak of inflows in more than two years, signaling a pickup in foreign demand as investors look for alternatives to US stocks. The purchases been relatively small, at an average of 376 million rand a day compared with daily of outflows of more than 1 billion rand for the whole of the year. But it’s a sign of changing sentiment following nine straight years of outflows, as lackluster economic growth, a weakening rand and political risks weighed dimmed the market’s allure.

What You’ll Need to Know Tomorrow

For Your Commute

A wave of rich Baby Boomers and Gen X residents are exiting the UK amid tax hikes aimed at the country’s wealthiest denizens. The departures underscore the growing unease among many of Britain’s richest residents over changes to taxation ranging from private equity investments to inheritances and capital gains. Many of those in the Baby Boomer cohort — born from 1946 to 1964 — are nearing retirement age and focused on preserving wealth, with the demographic shift dubbed a “silver tsunami.”

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