Morning Briefing: Europe

Good morning. Travel chaos may continue today at Paris-Orly airport. There’s a flurry of diplomacy among the US, Russia and Europe. And kidnappings are causing crypto high-rollers to increase security spending. Listen to the day’s top stories.

Chaos at Paris-Orly airport may continue today, AFP reported. Hundreds of flights were delayed or canceled from yesterday afternoon after air traffic control systems suffered a failure. Airlines were asked to cut 15% of flights at the airport today.

US Vice President JD Vance, Italy's Prime Minister Giorgia Meloni and European Commission President Ursula von der Leyen on Sunday. Photographer: Jacquelyn Martin/Pool/Getty Images

Diplomacy: Donald Trump said he’ll have a call with Vladimir Putin today to discuss ending Russia’s war in Ukraine. JD Vance held talks with Ukrainian President Volodymyr Zelenskiy in Rome yesterday. The US VP also sat down with Italy’s Prime Minister Giorgia Meloni and European Commission President Ursula von der Leyen.

UK and European Union negotiators worked into Sunday evening in a bid to reset post-Brexit relations ahead of a summit in London. Announcements are expected on defense and security but deeper fixes to the relationship may prove trickier.

Israeli officials said they’re poised to order tanks and troops into unconquered parts of Gaza in an all-out bid to destroy Hamas. The country will allow a “basic amount” of food aid into the region.

Portugal Prime Minister Luis Montenegro. Photographer: Goncalo Fonseca/Bloomberg

Elections: Portugal’s ruling center-right coalition won a snap vote, early results showed. Bucharest’s centrist mayor won Romania’s presidential runoff, defeating a Trump loyalist. Poland’s presidential election will go to a June 1 runoff between a Donald Tusk ally and a nationalist.

Deep Dive: Emerging Bets

Wall Street’s emerging-market faithful are finally seeing better returns after missing out for years as US stocks soared.

Several big names are among those betting the tables may finally be turning in favor of developing-market equities.
Bank of America’s Michael Hartnett calls emerging markets “the next bull market.” AQR predicts they’ll deliver local-currency returns of almost 6% annually in the coming five to 10 years, outpacing a 4% gain for US shares in dollars.
There was more talk of a “sell America” trade after Moody’s rating downgrade of the US to Aa1 from Aaa, saying a ballooning budget deficit showed little sign of narrowing.

The Big Take

Why Apple Still Hasn’t Cracked AI

Insiders say continued failure to get artificial intelligence right threatens everything from the iPhone’s dominance to plans for robots and other futuristic products.

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Opinion

It’s clear that the direction of travel for the UK and the EU is toward better relations, Lionel Laurent writes. But Downing Street’s red lines will limit potential economic gains, while Brussels is pushing to settle scores too.

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