Higher US tariffs will drive euro-area inflation lower than previously forecast, bolstering the case for the European Central Bank to cut interest rates this week. Analysts also expect the economy to grow 0.8% this year, a slight downward revision, a survey showed. 

The survey, which doesn’t take into account US President Donald Trump’s decision to pause higher tariffs on much of the world, comes as the EU plans to send its trade chief to Washington to negotiate. Trump’s flip-flopping on tariffs has sown confusion among investors and trading partners alike, driving a slump in the dollar. 

The euro hit its strongest level in three years late last week, and some traders are now betting it will go to $1.20. The Swiss central bank, meanwhile, potentially faces an uncomfortable choice between cutting interest rates below zero and selling the franc to stem its gains against the dollar. — Philip Lagerkranser

What You Need to Know Today

Dubai’s booming property market risks getting derailed by Trump’s plans for global tariffs. Among threats to values that have jumped 70% in four years is falling oil prices, which have dimmed the outlook for Gulf economies. In the UK, prices in London are likely to suffer more from the tariff fallout than in any other part of the country, real estate agents say. 

Dubai property prices have surged 70% over the last four years. Photographer: Natalie Naccache/Bloomberg

Barclays is embroiled in a legal spat with a former senior banker who retired from the lender and then got a job at a hedge fund. The UK bank is seeking to block more than £3.5 million in deferred payments to Kamal Sandhu after he joined Point72 Asset Management. Sandhu left Barclays in May 2023 to look after his ill son, only to start at Point72 months later.

The EU plans to outline steps to phase out Russian fossil fuels in early May. The European Commission is recommending the use of trade-related tools such as quotas or tariffs as options for reducing Russian energy imports, sources tell us. Unlike sanctions, trade measures can be adopted by a qualified majority of EU countries. 

Italian billionaire Gianluigi Aponte’s family-run business is emerging as the lead investor of a group seeking to buy 43 ports from Hong Kong tycoon Li Ka-shing. Terminal Investments will be the sole owner of all the ports, except for two in Panama that BlackRock would control, we’re told. Li’s deal to sell the ports has been fiercely opposed by China over US involvement. 
 

Dubai extended its lead as the world’s busiest international airport last year, handling 92.3 million passengers. London’s Heathrow was runner-up, followed by Seoul Incheon, with Singapore and Amsterdam rounding up the top five, according to ACI. Singapore’s Changi regained the title of the world’s best airport, a separate ranking published last week showed. 

Pfizer will stop developing an obesity pill that has been closely watched by investors. The treatment, called danuglipron, was linked to a potentially drug-related liver injury in one patient enrolled in a clinical trial. Shares of Denmark’s Novo Nordisk, which sells the Wegovy weight-loss shot, rose on the news.  

The US and Iran are expected to hold their second round of nuclear talks on Saturday in Rome, we’re told. The talks are set to coincide with a visit to Italy by US Vice President JD Vance, though it’s unclear if he’ll be involved. Both countries have described the previous meeting in Muscat on Saturday as productive.

What You’ll Need to Know Tomorrow

For Your Commute

Pop star Katy Perry blasted off to the edge of space on a Blue Origin rocket, accompanied by a crew including Blue Origin founder Jeff Bezos’ fiancee Lauren Sánchez. The flight launched at around 9:30 a.m. New York time from West Texas on a roughly 11-minute trip for a quick experience of weightlessness. Other celebrities have also taken the ride, including Bezos himself and actor William Shatner — who was 90 years old at the time.

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