Ukraine truce proposal divides European allies

Good morning and welcome back to the working week. Thanks to all my colleagues who covered for me last week while I took a break. Here’s what’s on the agenda for today:

• Ukraine peace talks latest

• An exclusive Deutsche Bank story

• Crypto prices jump

• The triumph of Anora at the Oscars

• And Utah’s new members-only ski resort

Differences have emerged between Britain and France over a peace proposal for Ukraine as the European allies try to salvage a diplomatic process that was left in tatters following Friday’s disastrous meeting between Volodymyr Zelenskyy and the US president and vice-president in the Oval Office.

European leaders met in London yesterday to discuss ways to “stop the fighting” in Ukraine and build a “coalition of the willing” to secure a ceasefire.

French President Emmanuel Macron told the Le Figaro newspaper that he and British Prime Minister Keir Starmer had proposed an initial truce between Russia and Ukraine “in the air, at sea and on energy infrastructure” that would last one month.

But UK officials later said the one-month truce was not “a UK plan” and that there were “various options on the table”. Zelenskyy also rejected calls for Ukraine to agree an immediate ceasefire.

The French and British leaders are hoping a deal would involve US cover for European troops deployed to secure any ceasefire in Ukraine. Starmer said after Sunday’s summit that while Europe “must do the heavy lifting”, the “effort must have strong US backing”.

The European plan would also see Zelenskyy signing a proposed deal to provide the US with a share of revenues from some of Ukraine’s mineral reserves, giving Washington an economic stake in a peace settlement. Trump had wanted Zelenskyy to sign the agreement in Washington on Friday but it was left unsigned after Trump ejected the Ukrainian president from the White House following their dispute in the Oval Office.

Vladimir Putin’s spokesman today said western unity was falling apart after Friday’s extraordinary spat. Dmitry Peskov said the argument showed Ukraine’s leader “doesn’t want peace, he wants the war to continue”, according to Interfax. Here’s more on the diplomacy to rebuild relations between Europe and America.

• More on the war in Ukraine: Shares in European defence companies jumped at the start of trading today as investors bet governments across the continent would have to raise their military spending.

• Nord Stream 2: An ex-Stasi officer and close friend of Vladimir Putin has been talking to US investors about restarting a gas pipeline linking Russia and Europe.

• More on that Oval Office meeting: The relationship between Donald Trump and Volodymyr Zelenskyy has been damaged beyond repair, writes Ben Hall.

And here’s what else we’re keeping tabs on today:

• Tariffs: Postponed US tariffs of 25 per cent on imports from Mexico and Canada are due to take effect from midnight but commerce secretary Howard Lutnick said yesterday the president was still deciding on the level.

• Markets: The euro and European defence stocks were the biggest gainers as trading got under way in Europe and Asia. US stocks were expected to open flat when trading resumes later on today.

• Economic data: S&P Global releases February Manufacturing Purchasing Managers’ Index data for Canada and the US. The Bank of Mexico releases the results of its poll of private sector analysts’ predictions for growth, inflation and exchange and interest rates.

• Monetary policy: Federal Reserve Bank of St Louis president Alberto Musalem speaks on the US economy and monetary policy at an event in Washington.

• Jes Staley: The former Barclays chief executive will begin to try and clear his name and overturn a lifetime ban at a trial starting in London. The FT has been given a copy of Staley’s opening statement.

Five more top stories

1. Exclusive: Deutsche Bank clashed with the European Central Bank throughout 2024 over concerns the German lender may be underestimating how many loans would sour, people familiar with the matter told the Financial Times. The ECB flagged concerns over Deutsche’s credit risk management and its risk models on multiple occasions last year. Olaf Storbeck and Florian Müller in Frankfurt have more details.

2. Eurozone inflation has fallen for the first time in four months to 2.4 per cent. The February inflation number, which is down from 2.5 per cent in the year to January, will underpin European Central Bank rate-setters’ hopes that the recent uptick in price pressures is proving temporary. This is a developing story.

3. Anora, an independent film about a brief, ill-fated romance between a sex worker and the son of a Russian oligarch, took home the Best Picture prize along with four others at the 97th Academy Awards last night. Mikey Madison beat favourite Demi Moore to the Best Actress award for her role in the low-budget movie about the sex worker community. Christopher Grimes in LA has more.

4. Cryptocurrency prices jumped yesterday after Donald Trump named the tokens that would be included in a US strategic reserve, providing a jolt to an industry that has cosied up to the White House. Crypto traders believe something akin to Fort Knox for gold would offer legitimacy to the asset class. Here’s more on the tokens on Trump’s list.

5. Mark Walter, the billionaire chief executive of Guggenheim Partners, and Thomas Tull, the former owner of Legendary Entertainment, have formed a $40bn holding company to make large bets on artificial intelligence. Here’s more on the billionaires’ new venture.

Today’s Big Read

The Chevrolet Silverado has been one of America’s most popular pick-up trucks since it was launched almost three decades ago. But the General Motors model, which costs roughly $40,000-$70,000, relies on one of the most complex, international and interconnected automotive supply chains, meaning the iconic vehicle could now become one of the biggest victims of Donald Trump’s trade war.

We’re also reading . . . 

• US Congress: America’s first branch of government should be acting as a check on Trump’s power grab, writes our editorial board. Instead, it has been missing in action.

• Premier League: Richard Masters, chief executive of the world’s most-watched football league, speaks to the FT on keeping the peace between its 20 ultra-competitive clubs.

• Nuclear energy: Countries want to squeeze more electricity from ageing power plants to help meet global demand, but the strategy has its own challenges.

• Management: Elon Musk isn’t the first boss to ask staff to list top five things at work, writes Pilita Clark, just the worst.

Chart of the day

Wall Street has raced ahead of international rivals over the past decade and a half. But a recent pullback in tech shares has underlined the growing nervousness around soaring valuations in a market that has swallowed an ever larger share of global investors’ allocations. Stephanie Stacey and Mari Novik look back at the rise of the US stock market and assess the concentration risks worrying investors.

Take a break from the news . . . 

Reed Hastings, the billionaire founder of Netflix, has created a members-only ski resort on Utah’s Powder Mountain. He is walking a gentrification tightrope — and a ski industry in flux is watching every step.