German Chancellor Friedrich Merz wants to create Europe’s most formidable conventional army as he seeks to counter the rising threat from Russia. “Our friends and partners also expect this from us, indeed, they practically demand it,” Merz told Bundestag lawmakers today. 

The plan is said to include raising the annual defense budget to more than €60 billion ($67.4 billion) this year and beyond, a more than 15% increase from 2024. In February, Germany’s top general told us that the country’s armed forces, the Bundeswehr, needs at least 100,000 additional troops on top of the roughly 260,000 it has now. 

Merz’s initiative comes as NATO allies have started working on plans to assuage Donald Trump’s demand to spend 5% of GDP on the military. None of the alliance’s 32 members, including the US, currently meet that threshold, and eight of them are below 2%. — Philip Lagerkranser

What You Need to Know Today

A Swiss court ruled that a dozen Credit Suisse bankers were unlawfully stripped of their bonuses when UBS bought its collapsing rival. The decision could set the stage for fresh lawsuits from hundreds more employees over unpaid compensation. In March 2023, the Swiss finance ministry told Credit Suisse to cut bonuses completely for its executive board members and reduce them sharply for other senior executives. 

OPEC+ nations collectively added just 25,000 barrels a day last month, making a careful start to their long-awaited oil production revival. Saudi Arabia added roughly the amount it had agreed, while output from other countries like Kazakhstan and Iraq declined. Separately, Goldman Sachs said in a report that Trump appears to favor oil in the $40 to $50 per barrel range, based on his social-media posts. 

Roche would need to reconsider planned investments in the US if Trump follows through on implementing an executive order to cut prescription drug costs, it said today. The drugmaker last month announced plans to invest $50 billion in pharmaceuticals and diagnostics in the US over the next five years. On Monday, Trump signed an executive order asking drugmakers to lower prices voluntarily or else face regulatory measures. 

Telefonica is making plans for a deal to take control of its UK joint venture with Liberty Global, we’re told. Telefonica Chairman Marc Murtra has held talks with its advisors on the plans, which are said to be in early stages. The business, created by the two companies in 2020, has been valued at as much as £31.4 billion ($41.9 billion).

The UK is said to plan allowing foreign states to own up to 15% of key British newspapers. Such a move could clear the path for a sale of the Telegraph, which has struggled to find a buyer after being put up for sale more than a year ago. The UK government could announce the cap as soon as tomorrow, we’re told. 

A JPMorgan office in the City of London has been defaced, the latest in a string of protests in recent years. The revolving glass doors of the Blackfriars complex were shattered and red paint was sprayed on the exterior walls of the building, including the ornate Victorian facade. No group has so far claimed responsibility. 

Red paint near an entrance to JPMorgan's offices in London, on May 14. Photographer: Jaimi Joy/Bloomberg

Novo Nordisk is teaming up with biotech firm Septerna to develop oral obesity pills, moving to address a potentially vast market. The companies will start with four development programs that use different ways to potentially treat obesity, type 2 diabetes and other diseases linked to obesity. Novo shares, which have fallen sharply over the past year, rose slightly today after the announcement. 

What You’ll Need to Know Tomorrow

For Your Commute

With tourism in Japan booming, the best trip guides are increasingly hard to find. One expert took us around Kyoto, the country’s old capital and home to over 2,000 places of worship. Here’s what you need to know. 

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