US President Donald Trump has said he is confident the US will strike a trade deal with Europe before his 90-day tariff pause expires, as talks with top global economies accelerate. He also downplayed China's influence, vowing a "very good deal" with Beijing and aligning with Italy's Giorgia Meloni on energy and defense cooperation.

The European Central Bank has reduced its benchmark interest rate by 25 basis points to 2.25% in response to the economic impact of US President Donald Trump's tariffs. ECB President Christine Lagarde highlighted the "exceptional uncertainty" facing the eurozone economy and emphasized the bank's commitment to bringing inflation down to its 2% target.

US Treasury yields climbed Thursday in a low-volume session, with long bonds leading the sell-off as rising oil prices and weak TIPS demand lifted inflation expectations. A steepening curve mirrored similar moves in Europe, while US President Donald Trump's renewed criticism of US Federal Reserve Chair Jerome Powell added uncertainty around US rate policy.

Japan's core inflation rose to 3.2% in March, marking the third straight year above the Bank of Japan's 2% target, fueled by surging rice prices. BOJ Governor Kazuo Ueda signaled more rate hikes could follow if underlying inflation continues climbing, though uncertainty over US tariffs may complicate the outlook.

Banks are increasingly lending to nonbank lenders amid sluggish overall loan growth. The strategy allows banks to manage risk better and free up capital for more profitable activities, but regional banks without trading arms face challenges in maintaining profitability.

The dollar's safe-haven status is under scrutiny as it weakens amid US President Donald Trump's trade policies. From April 2 to April 16, the S&P 500 fell 7%, while the WSJ Dollar Index dropped 4%. Investors are turning to alternative safe havens such as gold and the yen, both of which have risen significantly. The shift could have long-term implications for the US economy, particularly in financing fiscal deficits.

The US Federal Reserve has proposed changes to stress tests for major banks, including averaging results over two years and delaying the stress-capital buffer requirement's effective date to Jan. 1. Governor Michael Barr criticized the changes, saying they could give a false sense of security, while Governor Adriana Kugler expressed concern about reduced sensitivity to current economic conditions.

US Treasury Secretary Scott Bessent is leading private meetings with the US Federal Reserve and other banking agencies to streamline oversight and ease regulation. These efforts follow a February executive order from US President Donald Trump aimed at tightening White House control over bank supervision. Bessent has emphasized coordination among regulators without consolidating agencies, but former Fed attorney Jeremy Kress has described the Treasury's actions as a "power grab" that could politicize financial regulation.

Punctuated with keynotes from senior policymakers, regulators and leading industry practitioners and enhanced by targeted breakouts on key topics, the 2025 ISDA AGM is covering a lot of ground. Add in vendors showcasing innovative solutions, networking events, evening receptions and an ISDA 40th Anniversary celebration and you've got the preeminent annual derivatives industry event that cannot be missed! Register here: https://agm.isda.org/

ISDA is expanding its SwapsInfo dataset to include European credit derivatives trading activity, complementing existing research on credit default swaps trading in the US. This addition provides a more comprehensive view of global market trends, offering valuable insights into trading activity across key jurisdictions. Click here to read the report.

The report analyzes interest rate derivatives (IRD) trading activity reported in Europe. The analysis is based on transactions publicly reported by 30 European approved publication arrangements (APAs) and trading venues (TVs). Click here to read the report.