Top Overnight News
US and Israeli jets struck Iranian vessels in the Strait of Hormuz and other targets, hours after Donald Trump said talks with Tehran on an interim deal were progressing. Israel vowed more strikes on Hezbollah and Iran demanded any deal to reopen the strait include a halt to fighting in Lebanon.
Russian Foreign Minister Sergei Lavrov advised Marco Rubio to evacuate American citizens and diplomats from Kyiv. He warned that the Kremlin plans to continue heavy strikes on the Ukrainian capital. BBG
Huawei Technologies said on Monday it will make industry-leading semiconductors using a new technology in five years, underscoring Beijing's efforts to neutralize U.S. sanctions that have made it hard for China to build cutting-edge chips. RTRS
Workers’ pay packets are shrinking in relation to prices in a growing number of rich countries as the energy shock unleashed by the Iran war chokes off a nascent recovery in real wages. FT
The ECB should raise interest rates in June, even if ongoing peace talks with Iran yield a deal, as the conflict has been far longer than projected and high energy prices are spilling into the broader economy. RTRS
China let the interest rate on a one-year policy loan to banks decline to a record low, according to people familiar with the matter, a sign Beijing is stepping up efforts to support an economy that’s losing momentum. BBG
Japan's core inflation as measured by a new central bank gauge accelerated in April and blew past its 2% target, data showed on Tuesday, helping make the case for an interest rate hike as soon as next month. BBG
ECB’s chief economist sees no need to correct markets from anticipating a rate hike next month. Nikkei
NYC Mayor Zohran Mamdani is set to unveil a plan today to exempt some distressed rent-stabilized landlords. It would allow eligible owners to impose a one-time rent increase on certain vacant units. WSJ
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