Macron opens debate on ‘nuclear sharing’ with European allies

Today’s agenda: US government spending on consultants; White House hands carmakers tariff reprieve; Trump warning on Hamas; HSBC renames business sections; Microsoft-CoreWeave ties cool

Good morning. We begin in Paris where President Emmanuel Macron has said he will hold talks with allies over how France’s nuclear weapons could protect Europe, as the continent steps up efforts to guard against an emboldened Russia. 

What he said: In a television address yesterday, Macron responded to a call by Germany’s chancellor-in-waiting Friedrich Merz about whether France and the UK would be willing to do some form of “nuclear sharing” if the US became a less reliable partner.

“Our nuclear deterrence protects us. It is complete, sovereign and entirely French,” Macron said. “However, in response to the historic call of the future German chancellor, I have decided to open the strategic debate on the protection of our European continental allies through our deterrence.”

Shifting wind: US President Donald Trump’s upending of the transatlantic alliance has shocked European countries that fear Russia will pose a long-term risk to Ukraine and the entire continent. In response, Europe is preparing different steps, including easing EU deficit rules that have been holding back defence spending and introducing enhanced regional co-operation on weapons development and procurement.

The issue of “nuclear sharing” is likely to come up at an emergency EU summit in Brussels today that will be focused on financing military expenditures.

Read more on the idea of France extending its nuclear shield to its European allies.

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

• Central banks: The European Central Bank decides on interest rates.

• Results: Admiral Group, Bouygues, Deutsche Post, ING Groep, ITV, Lufthansa, Merck, Schroders and Zalando report. Our Week Ahead newsletter has the full list.

Five more top stories

1. Exclusive: The Trump administration is widening its assault against government spending on consultants, after an Elon Musk-led cost-cutting drive triggered the cancellation of contracts. Ten of the largest US consultants have been told that they have until tomorrow to justify billions of dollars of ongoing projects for the federal government. Read which groups are impacted by the cost-cutting blitz.

2. Trump has handed carmakers a one-month reprieve on tariffs on imports from Mexico and Canada, the White House said, in the latest last-minute policy shift to roil corporate America. The carve-out comes after markets reacted turbulently to tariffs imposed by the Trump administration which took effect on Tuesday.

• Reversal of fortune: US stocks are struggling as “America First” bets backfire while European assets predicted to suffer under Trump are now surging.

• ‘Symbiotic relationship’: Canada and the US could imperil North American energy stability if they restrict electricity flows, an industry watchdog warned.

• More US news: Lord David Cameron is joining a private equity firm founded by Jeb Bush, the brother of former US president George W Bush.

3. HSBC has renamed its “eastern markets” and “western markets” business sections within months of creating them, after the branding prompted renewed speculation that the bank might formally split along east-west lines. Read more on the lender’s switch to geographic labels.

4. Trump has warned Hamas that “it is OVER for you” unless it hands over the remaining hostages it holds in Gaza, hours after Washington said it had held direct talks with the militant group. The US president added that he was “sending Israel everything it needs to finish the job”, warning Gazans they would be “dead” if the hostages are not released.

5. Exclusive: Microsoft has walked away from some of its commitments to cloud computing provider CoreWeave in a significant blow to a company seeking to launch a blockbuster $35bn initial public offering next month. CoreWeave provides Microsoft with computing capacity from its AI data centres under a partnership worth billions of dollars. Read the reasons behind the shift in the relationship.

The Big Read

Brook­field Cor­por­a­tion, one of the world’s most com­plex fin­an­cial con­glom­er­ates, is attract­ing scru­tiny for circular flows of cash involving its global property portfolio. Read the FT investigation in full.

We’re also reading . . . 

• Turkey’s foreign ambitions: The country’s top diplomat says in a rare interview that Ankara would join a post-Nato European security pact.

• US aid freeze: The rest of the world should take the lead on aid and show that it can spend it better, write Nobel laureates Abhijit Banerjee and Esther Duflo.

• Thames Water: The public water utility cannot avoid a debt refinancing, despite the horrifying expense, writes John Gapper.

Join consumer editor Claer Barrett today for a webinar on tackling debt to mark International Women’s Day. Register for free

Chart of the day

For the first time in more than 30 years, Europe’s defence sector is hot property. After decades in which military budgets were squeezed, Donald Trump’s hardline approach towards Ukraine and calls on allies to shoulder more of their security burden have forced the region’s leaders into action. But can European defence groups step up?

Take a break from the news . . . 

A guided sailing holiday can offer those with little experience — and a modest budget — a taste of the yachting lifestyle, as Neville Hawcock found on a flotilla tour of Greece’s Ionian Islands.