On the second attempt, Friedrich Merz secured parliamentary backing as Germany’s new chancellor. The result paves the way for the conservative leader to take charge of Europe’s biggest economy but with considerably diminished authority.

The repeat ballot was arranged after several hours of frantic consultations with constitutional experts. Merz secured 325 votes, more than the required 316 out of 630 lawmakers. He had managed only 310 in an initial tally, even though the coalition partners have 328 Bundestag seats between them.

It was the first time since World War II that an incoming chancellor failed to secure enough support on the first attempt. It represents a huge embarrassment for the 69-year-old, already suffering from low approval ratings, and stoked concerns that his ability to steer government business will be compromised. — Jennifer Duggan

What You Need to Know Today

The US trade deficit widened to a record in March with companies rushing to import products as the Trump administration readied sweeping tariffs. The goods and services trade gap grew 14% from the prior month to $140.5 billion, Commerce Department data showed. Imports of consumer goods climbed by the most on record, primarily due to a surge in inbound shipments of pharmaceuticals. Meanwhile, the European Union plans to hit about €100 billion in US goods with additional tariffs in the event ongoing trade talks fail to yield a satisfactory result for the bloc, we’re told.

Tesla sales kept sliding across Europe’s biggest electric-car markets in April, despite the company rolling out an updated version of its most popular vehicle. The company registered  only 512 new vehicles last month in the UK, according to the Society of Motor Manufacturers and Traders, down 62% from a year earlier. Tesla’s plunge was even more pronounced in Denmark, the Netherlands and Sweden, with sales dropping by at least two-thirds in each country.

India and the UK agreed a trade deal aimed at boosting economic ties between the world’s fifth and sixth-largest economies. The agreement, India’s most ambitious and modern to-date, cuts tariffs on products including whisky, gin, cosmetics and vehicles, Britain’s Department for Business and Trade said. The UK estimates the deal will add an annual £4.8 billion to the British economy over the long-term — equivalent to 0.17% of gross domestic product. The deal is critical for both UK Prime Minister Keir Starmer and his Indian counterpart Narendra Modi as countries globally race to insulate themselves from the fallout of Trump’s tariff wars.

US delivery firm DoorDash announced two multibillion-dollar acquisitions that stand to turn what is already the largest food-delivery service in the US into a formidable global player. It agreed to buy London-based delivery Deliveroo for 180 pence per share, or about £2.9 billion, and it’s acquiring hospitality tech company SevenRooms for $1.2 billion. Alongside the deals, DoorDash also issued a strong orders outlook for the current quarter and posted better-than-expected gross order value for the first three months of the year.

The EU gave its strongest signal yet that it’s serious about ending five decades of reliance on Russian energy, but a challenging geopolitical environment may derail its plans. The European Commission, the bloc’s executive branch, unveiled a roadmap to finally switch off the remaining flows of Russian gas, nuclear fuel and oil, more than three years after President Vladimir Putin’s full-scale invasion of Ukraine. The plan would see European companies terminate all their contracts with Russian gas suppliers by the end of 2027. If the EU succeeds, it would be a remarkable pivot away from what was formerly the bloc’s largest energy supplier. 

Armed drones struck the airport and harbor in Sudan’s main coastal city, escalating a deadly conflict between the North African nation’s army and the Rapid Support Forces militia. Footage aired by pan-Arab TV channel Al-Arabiya after today’s blasts showed massive smoke clouds billowing from the waterfront in Port Sudan, the de-facto seat of Sudan’s military-aligned government since shortly after the civil war erupted in April 2023. The assaults on Port Sudan signal a new phase in the fighting that’s left as many as 150,000 people dead and sparked the world’s largest humanitarian crisis. 

Smoke rises from the airport of Port Sudan following reported attacks early on May 4, 2025.  Photographer: AFP/ Getty Images 

What You’ll Need to Know Tomorrow

For Your Commute

Ferrari NV’s earnings rose in the first quarter as the manufacturer sold more of its most expensive supercars and demand for personalizations grew. The results suggest that Ferrari remains relatively resilient to the demand issues plaguing its peers, which are also contending with additional costs from US tariffs. 

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