Europe and US diplomats clash over Ukraine on war’s anniversary

Good morning. In today’s newsletter:

• A clash at the UN over Ukraine

• Starbucks announces job cuts

• Ruchir Sharma on China’s investability

The US and Europe battled in the UN and G7 yesterday over whether to blame Russia for its war against Ukraine, as President Donald Trump’s rapid shift on the conflict threatens to tear apart western unity.

The Trump administration and the EU put forward rival UN resolutions yesterday, while G7 diplomats spent the weekend haggling over whether a joint statement due to be released by the group of rich nations would refer to Russia’s “aggression” against Ukraine or not.

In an extraordinary move, the US voted with Russia against Ukraine and EU nations in the UN General Assembly yesterday.

“If [we] look at the messages that come from the United States, then it is clear that the Russian narrative is, there, very strongly represented,” EU chief diplomat Kaja Kallas told reporters when asked if she believed the Trump administration was acting in Russia’s interests.

Later in the day the UN Security Council passed a US resolution that called for “a swift end” to the war between Russia and Ukraine. The resolution, which was backed by the China and Russia, did not fault Moscow for the conflict. Follow our live blog for the latest updates on Ukraine diplomacy.

• European defence: Britain will this week join EU leaders in groundbreaking talks about setting up Europe-wide defence funding arrangements, amid fears of a disappearing US security blanket.

• US-Russia ties: Trump signalled the US was prepared to forge an “economic” deal with Russia amid a sharp reversal of Washington’s policy towards Moscow.

Here’s what else we’re keeping tabs on today:

• Economic data: Japan reports services PPI inflation figures for January,

• Monetary policy: South Korea is expected to cut its key interest rate by a quarter-point to 2.75 per cent. (Reuters)

• Apple shareholder meeting: Investors will vote on a motion attempting to force the iPhone maker to scrap its diversity, equity and inclusion policies.

• New Zealand-China ties: New Zealand’s deputy prime minister and foreign minister Winston Peters visits Beijing.

Five more top stories

1. Starbucks will cut 1,100 office jobs as new chief executive Brian Niccol attempts to revive the world’s biggest coffee shop chain. The company said yesterday that staff in corporate roles would be required to work remotely this week as it informs employees who will lose their jobs. Here’s what else we know about the job reductions.

2. The EU should craft its own China policy and not ape the Trump administration’s confrontational stance, Spain’s foreign minister has said. “Europe must take its own decisions . . . we have to decide when China can be a partner and when China is a competitor,” José Manuel Albares told the FT, as Brussels tries to adapt to Washington’s recent hostility towards European allies. Read the full interview.

3. German election winner Friedrich Merz is looking at using the outgoing parliament to lift the country’s strict “debt brake” before newly elected far-right and far-left lawmakers can take their seats. The manoeuvre would allow Merz to reform the borrowing cap to allow more defence spending, which is opposed by the rightwing Alternative for Germany and leftwing Die Linke.

• More Germany news: Merz has told Benjamin Netanyahu that he would be invited to visit the European country despite an outstanding arrest warrant from the International Criminal Court for war crimes in Gaza.

4. Shares in WiseTech lost a fifth of their value yesterday after a majority of its board, including the chair, resigned over “intractable differences” related to scandal-hit co-founder Richard White’s future role at Australia’s largest listed technology company. Read more about the boardroom turmoil.

5. JPMorgan Chase has said it will set aside $50bn to lend to risky companies backed by private equity firms as it revs up its push into the booming private credit market. The announcement comes as an increasing number of Wall Street banks bypass traditional debt markets.

News in-depth

Three years after Russia’s full-scale invasion, Ukraine’s war effort has badly stalled. Trump is pressing for a deal with Russia — while sidelining Kyiv and disparaging Zelenskyy. Now, with the country’s future hanging in the balance, the Ukrainian leader is facing his biggest fear: war without US support.

We’re also reading . . . 

• Is China investable? It always was, writes Ruchir Sharma — at the right price and for those with eyes wide open.

• Syria: Today’s Big Read looks at how the country’s new rulers meet the challenge of forging a national security apparatus from a patchwork of factions.

• Doge vs business: The prospect of deregulation is appealing, but CEOs may come to regret their Faustian bargain with Trump and Elon Musk, writes Rana Foroohar.

Chart of the day

Indian carmakers are relying on buoyant sales of high-end sport utility vehicles to help them through a slowdown in the country’s car market, according to two leading brands. The trend towards SUVs is an indication that only India’s most affluent are in the mood to spend.

Take a break from the news . . . 

Our latest Life of a Song column explores “Here Comes the Sun” by George Harrison. The 1969 piece lit up The Beatles’ Abbey Road album and spawned hundreds of covers, including versions by Richie Havens and Nina Simone.