Top Overnight News President Trump said he is not planning to fire Federal Reserve Chairman Jerome Powell prompting some relief from investors who had been spooked by the White House’s commentary towards the Fed in recent weeks. WSJ Trump suggested tariffs on China may be “substantially” cut if a deal is reached. China said the door was “wide open” for talks. BBG Tesla shares climbed (+6% premkt) premarket despite an earnings miss after Elon Musk said he’ll pull back “significantly” from DOGE in May. BBG JD Vance said the US has issued a “very explicit proposal” to Russia and Ukraine on a path forward to a peace deal and that territory concessions are needed: CNN Fed's Kugler (voter) said tariff increases are significantly larger than previously expected and economic effects of tariffs and uncertainty will likely be larger than anticipated. Kugler added that Fed policy is well-positioned for macroeconomic changes and she supports holding the policy rate steady as long as upside risks to inflation continue, whilst economic activity and employment remain stable. Trade war is starting to slam Europe's economy. The euro-area’s flash composite PMI gauge fell more than expected this month to 50.1, as both the German and French measures missed. The UK gauge also fell more than estimated. BBG Talks between the U.S., Ukraine and European officials to discuss ending Russia's war in Ukraine faltered on Wednesday as U.S. Secretary of State Marco Rubio abruptly cancelled his trip to London and negotiations were downgraded. Rubio's no show prompted a broader meeting of foreign ministers from Ukraine, Britain, France and Germany to be cancelled, although talks continued at a lower level. RTRS UK government borrowing exceeded official forecasts made just last month. The budget deficit in the full fiscal year through March was £151.9 billion, above the OBR’s £137.3 billion projection. BBG The US wants the UK to lower levies and other non-tariff barriers on a variety of US goods, including a reduction in its automotive tariff from 10% to 2.5%, the WSJ reported. Chancellor Rachel Reeves will meet Treasury Secretary Scott Bessent this week. BBG