Flagship

China beats GDP forecasts

China reported stronger-than-expected economic growth but warned of stark challenges ahead. The world’s second-largest economy grew at an annualized rate of 5.4% in the first quarter, offering authorities a buffer in their efforts to reach their target of 5% growth for the year, ING’s chief China economist noted. However, massive US tariffs and pressing domestic issues, including elevated unemployment, falling prices, and a heavy debt burden, may force Beijing to roll out further monetary or fiscal stimulus: A Chinese statistics agency official said the “more complex and severe” trade picture would put a “certain pressure” on the economy. In a sign that China still holds some hope of negotiating with Washington, the country appointed a new trade envoy today.

Meloni heads to DC

Italian Prime Minister Giorgia Meloni heads to Washington today for talks with US President Donald Trump, carrying with her European hopes of defusing transatlantic tensions. The continent has made little headway on lowering US tariffs in particular; a recent visit by the EU trade commissioner to Washington was widely viewed as a flop. Meloni — the only EU leader to attend Trump’s inauguration — has positioned herself as a bridge between the ostensible allies, and her anti-immigration, nationalist views are largely in line with the American leader’s. But her nation is a laggard on the key issues Trump values: Italy spends far below the European average on defense, and has a hefty trade surplus with the US.

Chip giants suffering

Semiconductor giants Nvidia and ASML are already suffering the effects of US President Donald Trump’s unpredictable trade policies. Trump had apparently agreed to allow Nvidia to export its most sophisticated models to China, following a meeting with the company’s CEO. But curbs have now been reinstated, leading Nvidia to record a $5.5 billion charge. And ASML, which builds chipmaking machines, said orders were below expectations, blaming tariff uncertainty. Trump’s three-month tenure has been marked by headspinning changes of direction, with further chip tariffs looming. There have already been 25 major announcements, which the Financial Times’ chief economics commentator argued was incompatible with stability. Unpredictable “mad kings,” Martin Wolf wrote, “generate waste, fear and pervasive uncertainty. These are enemies of prosperity.”

Tesla stock hits ‘death cross’

Tesla’s stock price hit a “death cross” as uncertainty, competition, and distrust of its CEO lowered market confidence. The automaker’s 50-day average share price fell below its 200-day measure, a key crossover point. Tesla should be insulated from tariffs because much of its manufacturing is carried out domestically, but has instead seen BYD — which is counterintuitively protected by its lack of exposure to the US — overtake its global sales. Some of Tesla’s problems are its CEO Elon Musk’s fault, The Information said: Investors and advisers wanted the company to focus on affordable electric vehicles, but Musk insisted on a pivot to robotaxis and humanoid robots, which has yet to pay off.

Firms feel fallout of Treasury turmoil

The US Treasury market calmed, but American companies feared further fallout from a dizzying spike in yields that sparked fears of a financial crisis. When stocks plummeted last week over Washington’s trade war, bonds — usually safe havens — also fell, pointing to plummeting confidence in the US. Traders have since shifted from sell positions to neutral ones, Bloomberg reported, and yields are ticking lower. Yet for businesses, the consequences are only just emerging: Higher bond yields could slow or reverse a recent increase in venture-capital investments as money managers look for safer assets, The Information said, while riskier corporates have been shut out of the bond market entirely, according to the Financial Times.

Netanyahu faces backlash

Israeli Prime Minister Benjamin Netanyahu faced growing backlash over his decision to restart the war in Gaza. A two-month ceasefire was expected to be renewed in March, but Israel instead began a new assault. Last week, 1,000 military reservists signed a petition calling for a deal with Hamas, but despite a furious response from Netanyahu’s government, “the floodgates had… opened,” The Washington Post reported: 10,000 people have now backed the call, including hundreds of former senior police officials, while the families of many hostages still held in Gaza have dismissed the government’s aim of achieving total victory as “a fantasy.” Petitioners want hostages taken on Oct. 7, 2023 released, even in exchange for a complete military withdrawal from Gaza.

EU braces for long Ukraine war

The European Union is preparing for Russia’s war with Ukraine to persist for at least several months, despite Washington’s insistence that talks with Kyiv and Moscow will soon bear fruit. The bloc is expected to publish a roadmap for reducing reliance on Russian fossil fuels in the next few weeks, Bloomberg reported, and for extending its sanctions on Moscow beyond the summer. US President Donald Trump’s special envoy said yesterday that Moscow was open to a “permanent peace,” but Kyiv seems to share European skepticism: Recent Russian attacks on the Ukrainian city of Sumy showed that Moscow “remains focused on continuing the war,” Ukraine’s president said.

Carlos Cuerpo, Minister for Economy, Trade and Business, Spain, Valdis Dombrovskis, EU Commissioner for Economy & Productivity; Ken Griffin, Founder & CEO, Citadel; Éric Lombard, Minister of Economy and Finance, France; Ted Sarandos, Co-CEO, Netflix; David Schwimmer, CEO, London Stock Exchange Group, and more will join The Future of Global Finance session at the 2025 World Economy Summit. As private credit expands, consumer perspectives shift, and inflation remains stubborn, this session will examine how leaders are responding to the evolving global financial landscape and its risks and opportunities.

April 23, 2025 | Washington, DC | Learn More

Peru jails ex-president

Peru jailed a former president for accepting bribes from a Brazilian construction firm, the latest senior politician to be felled by a continent-wide corruption scandal. Ollanta Humala, who led Peru from 2011 to 2016, was found guilty of accepting illicit campaign funds from Odebrecht, which has admitted to handing out bribes for years across Latin America. Humala is the second former Peruvian leader to be jailed over the scandal, known as Operation Car Wash or Lava Jato, but the controversy centered on Brazil, upending the political careers of current President Luiz Inácio Lula da Silva and his protege Dilma Rousseff, and helping drive anti-establishment anger that propelled the nationalist Jair Bolsonaro to office.

Ant smugglers arrested

Two Belgian teenagers were arrested in Kenya for suspected ant smuggling. The pair were found in possession of 5,000 ants, including several Messor cephalotes, a large East African ant which can sell for tens or hundreds of dollars each: Authorities valued the haul at $7,000. Wildlife smuggling is a major industry, but while most of the focus is on animals — such as tortoises, pangolins, or rhinos — or parts thereof, sold for pets or for use in traditional Chinese medicine, the Kenyan Wildlife Service said there is a growing trend away “from iconic large mammals to lesser-known yet ecologically critical species” such as ants, which also have the advantage of being significantly easier to smuggle than the African elephant.

Lime inks battery-recycling deal

Lime, the world’s largest electric-bicycle hire firm, signed a deal to recycle its batteries, boosting hopes of creating a circular battery economy. Its partner Redwood says it recycled enough lithium-ion cells from cars, scooters, and other sources to build 250,000 EV batteries last year. Proponents of battery recycling say that it will succeed where plastic recycling, so far, has not: Virgin plastic is cheap to produce and recycled plastic is lower quality, whereas EV batteries are expensive and the reclaimed parts can work well. The move is timely, Gizmodo reported: With China blocking the export of many crucial minerals, old batteries’ value will likely increase, making recycling an ever more economic option.

• Chinese leader Xi Jinping begins a state visit to Malaysia as part of a three-country Southeast Asia tour.
• International Atomic Energy Agency chief Rafael Grossi visits Tehran ahead of the second round of Iran-US talks on Saturday.
• Yazidis celebrate their New Year.

The estimated number of active landmines worldwide, according to NATO. This week, eight people in Nigeria were killed by a landmine. They will likely be a small fraction of the number who will die this year: At least 1,983 people were killed by mines in 2023, a monitoring group said in its most recent report. Most of the world has signed up to the Ottawa Convention banning landmines, but Finland, and the Baltic states — all of which share a border with Russia — recently left the agreement, citing fears of Moscow’s territorial expansionism.

Real Madrid CF vs Arsenal FC, Champions League, 3pm Eastern. Real Madrid are the undisputed heavyweights of European soccer: They have won the Champions League, or European Cup as it used to be known, 15 times, eight more than their closest competitors. But they find themselves 3-0 down after the first leg of their quarter-final against the London side Arsenal, and facing likely elimination. The Spanish champions, though, have a history of thrilling comebacks and refusing to know when they are beaten — their midfielder Jude Bellingham told The Guardian it was “a night that’s made for Real Madrid.” Find where to watch Real Madrid vs Arsenal.

The escalating trade war between China and the US could boost some American battery manufacturers, amid what is otherwise a major setback for the US energy transition that will hit power utilities and electric vehicle makers that rely heavily on technology imported from China, Semafor’s Tim McDonnell reports.

Grant Ray, vice president of global market strategy at the battery materials producer Group14, said the company’s silicon-based components are well insulated from rising tariffs on Chinese imports and retaliatory restrictions by China.