April 15 update

During a visit to the White House El Salvador’s president, Nayib Bukele, said that a man mistakenly deported from Maryland would not be returned, despite a ruling by America’s Supreme Court to do so. Donald Trump’s administration has eagerly deported alleged gang members to a high-security prison in the Central American country. Mr Trump pledged to help El Salvador build new ones—and send more illegal migrants.

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Pfizer halted the development of an obesity pill, known as danuglipron, after it was suspected of damaging the liver of a trial patient. The American pharmaceuticals giant has sought to enter the fast-growing market for weight-loss drugs as sales of its coronavirus products dry up. Investors flocked to its rival, Eli Lilly, whose shares jumped 1.7% in pre-market trading.

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A group of American businesses sued the Trump administration to block its sweeping tariffs from taking effect, arguing that it overstepped its authority in imposing the levies. Bypassing Congress, Mr Trump announced hefty tariffs on April 2nd after he invoked an emergency economic-powers law. The suit argues that the threats Mr Trump cited—trade deficits—“are not an emergency”.

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Russia admitted to a ballistic-missile strike on the Ukrainian city of Sumy on Sunday that killed at least 34 people, apparently contradicting Mr Trump’s claims that the attack had been “a mistake”. As American-sponsored peace talks stall, Russia has insisted that it was targeting military commanders. Earlier Friedrich Merz, Germany’s incoming chancellor, called the attack a “deliberate and calculated war crime”.

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Goldman Sachs beat expectations in the first quarter of 2025 as its traders rode the stockmarket turmoil prompted by Mr Trump’s economic policies. The Wall Street bank posted profits of $4.7bn. Its equities division had a record quarter: revenues were 27% up on the first three months of 2024. On Friday its rivals, JPMorgan Chase and Morgan Stanley, also reported strong results.

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Meanwhile, sales at LVMH, the world’s biggest luxury conglomerate, fell in the first quarter. Revenues in fashion and leather goods, its largest division, were down 5% from a year ago. Luxury sales were declining even before the trade war between America and China added to the turbulence. LVMH acknowledged a “disrupted geopolitical and economic environment” in its quarterly report.

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Second only to being a mother—that is how Katy Perry, a pop star, described going to space with the first all-female crew in half a century. Blue Origin, a firm owned by Jeff Bezos, blasted six celebrities (including Lauren Sánchez, his fiancée) above the Kármán line, which marks where outer space begins. They returned to Earth after around 10 minutes.

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Figure of the day: 560 tonnes. The combined purchases of gold jewellery by Indians, the world’s biggest buyers, last year. Read the full story.

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Donald Trump has begun his second term at a blistering pace. Keep up with his executive orders, legal challenges against them and what Americans think about it all on our presidential tracker.

 

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Photograph: Reuters

Xi Jinping courts South-East Asia 

This week Xi Jinping is in South-East Asia, a region reeling from Donald Trump’s “reciprocal” tariffs. On Monday China’s leader landed in Vietnam, which Mr Trump hit with a 46% levy before pausing his plan. Mr Xi called for stronger trade ties with Vietnam and warned that there would be “no winner” from a “trade war and tariff war”. On Tuesday he will go to Malaysia. Cambodia, his final stop, is threatened with a 49% tariff, among the highest rates. (China is now subjected to an American tariff of 145%.)

America’s chaotic policies could help China gain influence. On his trip Mr Xi will announce investments in South-East Asia’s infrastructure and high-end manufacturing. He has a long-term strategy of binding the region’s economies more closely to China’s.

But the region has not given up on America. Cambodia, Malaysia and Vietnam are clamouring to negotiate with Mr Trump. And South-East Asian officials worry about another, growing threat: that Chinese manufacturers, unable to sell their goods  to America, will dump them on their region.

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Photograph: Getty Images

Israel pushes deeper into Gaza

Israel appears ready to expand its military campaign in southern Gaza. Its forces have already forced out most residents of Rafah, a city near the border with Egypt. On April 12th they told civilians in neighbouring Khan Younis to evacuate, after rockets were fired from the area. “Gaza will become smaller and more isolated,” warned Israel’s defence minister, Israel Katz.

Whether Israel will push ahead with a full-scale offensive against Hamas remains unclear. The chief of staff of the Israel Defence Forces, Lieutenant-General Eyal Zamir, has warned the government that he may not have enough troops to carry out that mission. After 18 months of war Israeli reservists are fatigued. A proposal by Egypt may offer a way out. It envisions Hamas releasing some Israeli hostages in exchange for Palestinian prisoners, another temporary truce and talks aimed at a longer ceasefire. Still, Israel’s plans for Gaza, and whether they include an agreement with Hamas, remain uncertain.

 

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Photograph: dpa

Gloom deepens in Germany

On Tuesday ZEW, a German economic-research institute, will publish its economic-sentiment index, a closely watched measure of investor confidence, for April. The index reflects expectations for growth, inflation and interest rates over the next six months. In March it surged to 51.6 points, the highest reading in three years, up from 26 in February. (A higher reading reflects optimism.) The jump was driven by hopes for structural reforms under the incoming centre-right government to be led by Friedrich Merz.

But optimism is fading. America’s sweeping tariffs threaten to rattle Germany’s export-heavy economy. Carmakers are especially worried: America and China are the biggest markets for Volkswagen, BMW, Mercedes and Porsche. The gloom runs deep: economic research institutes now warn that Germany could fall into its third consecutive year of recession—the first such run in the post-war era. After a moment of cheer over the promise of Mr Merz’s government, Tuesday’s reading will show how sharply Mr Trump’s tariffs have shifted sentiment.

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Photograph: Getty Images

A push for peace in Sudan

Foreign ministers from nearly 20 countries will meet in London on Tuesday to discuss Sudan’s devastating civil war. The gathering is the latest attempt to solve a two-year-long conflict that has displaced 12m people and caused a severe famine. Britain, which is co-hosting the conference with Germany and France, joins a growing list of countries that have held talks aimed at increasing aid, ending the fighting or both.

Neither of Sudan’s main warring factions—the national army or the Rapid Support Forces, a paramilitary group accused of genocide in Darfur—has been invited. The goal of the meeting is to encourage the foreign powers that are backing the combatants to support a ceasefire. Among them is the United Arab Emirates, which supports the RSF. Last week the Sudanese army accused the UAE at the International Court of Justice of aiding the RSF’s atrocities. Its presence in London is likely to make for some uncomfortable conversations.