Trump calls Putin ‘crazy’ as Russia pounds Ukraine

Good morning. Here's what happened overnight and what you need to know today.

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1.

Trump defiance: Russia continued its drone and missile bombardment of Ukraine for the third day, according to Ukrainian officials, defying Trump’s calls for Putin to end the war. Issuing a rebuke of Putin after 12 people were killed in Ukrainian cities on Sunday, Trump said: “He has gone absolutely CRAZY! He is needlessly killing a lot of people, and I’m not just talking about soldiers,” Trump said via Truth Social. “Missiles and drones are being shot into Cities in Ukraine, for no reason whatsoever.” Trump also criticised Ukrainian leader Volodymyr Zelensky, saying that he “is doing his Country no favors by talking the way he does.” Kremlin spokesman Dmitry Peskov brushed off Trump’s comments, arguing that the strikes are necessary for Russia’s security. Also on Monday, German Chancellor Friedrich Merz said Ukraine has been given permission to use weapons supplied by its allies to launch strikes deep inside Russia. (FT)(WSJ)(Bloomberg)(Reuters)

2.

Deadline détente: US President Donald Trump delayed the imposition of 50% tariffs on European Union goods from 1 June to 9 July after a call with European Commission President Ursula von der Leyen, who he said had asked for more time to reach a deal. The EU said the call had added a new impetus to the negotiations, with both sides agreeing to fast track the talks and stay in close contact. Trump had unexpectedly threatened the tariffs on Friday, frustrating EU officials who believed progress was being made. Talks have faced multiple problems, with disputes over trade barriers, lawsuits and regulations on US companies, according to reports. The EU has offered to jointly remove tariffs on industrial goods, boost access for some American agricultural products and co-develop AI data centres, Bloomberg reported. European markets and the euro rose on the news. (Reuters)(WSJ)(Bloomberg)

3.

Port control: PE firm Cerberus is set to make an offer to buy the Port of Darwin from its Chinese owner, Landbridge, for slightly above the $506 million that Landbridge paid in 2015, The Australian reports. Landbridge says while the facility is not for sale, the masthead reports, the port operator is open to offers of about $1 billion. Earlier on Monday, China’s Ambassador Xiao Qian warned Canberra to be careful after PM Anthony Albanese vowed to bring the port back under Australian control. The 99-year lease was awarded to Landbridge in what Xiao described as “an open and transparent” process, adding that it is “ethically questionable to lease the port when it was unprofitable and then seek to reclaim it once it becomes profitable.” The port is close to a military facility used by US marines and awarding the lease to Landbridge was criticised by Barack Obama in 2015. (Capital Brief)(The Australian)(Xiao Qian statement)(ABC)(Bloomberg)

4.

Beijing blueprint: China’s President Xi Jinping is weighing a revamped version of its plan to produce high-end technological goods, as it works to bolster manufacturing in the face of Trump’s efforts to onshore factories in the US. Sources cited by Bloomberg said that officials are drafting plans for a new “Made in China 2025” campaign, which would prioritise technology including chip-making equipment over the next decade. Policymakers who are separately working on Beijing’s next Five-Year Plan starting in 2026 reportedly want to maintain the share of manufacturing in GDP at a stable level over the medium to long term, signalling that Beijing plans to maintain its strategy which has been criticised by the US and EU for fuelling trade imbalances. Meanwhile, EU and Chinese trade officials are reportedly set to meet again in early June, suggesting that both sides are increasing engagement in efforts to push back against tariff pressure from Trump. (Capital Brief)(Bloomberg)(Global Times)

5.

Trump coin: Trump Media and Technology Group (TMTG), controlled by Donald Trump’s family and behind the Truth Social app, plans to raise USD3 billion ($4.6 billion) to buy cryptocurrencies such as bitcoin, the Financial Times reported citing six unnamed sources briefed on the matter. According to the report TMTG plans to raise USD2 billion in fresh equity and another USD1 billion via a convertible bond. The terms, timing and size of the capital raise could still change. The plan could be announced ahead of a big meeting of crypto investors and advocates in Las Vegas this week, where US Vice President JD Vance, Trump’s crypto tsar David Sachs, Donald Trump Jr and Eric Trump are expected to speak. TMTG said in a statement that “apparently the Financial Times has dumb writers listening to even dumber sources,” without commenting further, while the White House has not commented. (FT)

6.

Tax Tussle: Australia’s two main tech and investment advocacy groups warned the government’s proposed tax on unrealised gains for super balances over $3 million will have a “significant negative impact” on early-stage investment. The Tech Council of Australia and Australian Investment Council argue the policy will hurt startup funding and productivity. However, neither group made a submission to the Senate inquiry into the proposed changes. Treasurer Jim Chalmers has said the measure targets “long-term sustainability” and structural problems, and the opposition is not universal. Cassandra Winzar, of the Committee for Economic Development of Australia, said claims of damage to innovation and investment are “clearly overblown”. Former RBA governor Bernie Fraser said super tax concessions are “just making it another tax-funded benefit for very wealthy people”. Mercer Super CIO Graeme Miller said the case for reducing tax concessions is clear, though he opposed taxing unrealised gains. Economists Saul Eslake and Chris Richardson argued super is “not fair on the way in” and “we don’t tax enough”. The tax is forecast to raise $2.3 billion. (Capital Brief)(Capital Brief)

7.

Fast fines: European Union regulators said Shein must tackle consumer protection breaches on its platform or risk fines. The watchdog found that a number of Shein’s practices breach rules against fake discounts, missing, incorrect and misleading information, deceptive product labels, misleading sustainability information and website designs that pressure customers to finalise purchases. The EU’s executive arm on Monday notified Shein of the violations, saying that the Chinese fast-fashion retailer now has one month to reply to the CPC Network’s findings to propose how it will address the breaches. If Shein fails to address the breaches, regulators could impose fines of at least 4% of its yearly sales in the affected EU states. The enforcement action is complementary to the ongoing Digital Services Act inquiry conducted by the Commission. Michael McGrath, EU commissioner for justice and consumer protection said: “It’s now for Shein to step up, respect the rules.” (Capital Brief)(European Commission)(WSJ)(Bloomberg)

8.

EV BYD: Eagers Automotives said that the company agreed to a five-year deal with electric vehicle (EV) maker BYD, but will no longer be the brand’s exclusive retailer in the country. The Chinese EV maker which now sells more cars in Australia than Tesla, has also taken control of the import and distribution of its vehicles. While Eagers said it “will retain its existing extensive network of retail sales and after-sales service centres,” BYD is able to appoint other dealers outside Eagers’ network. Shares in BYD tumbled on Monday after the EV maker offered fresh subsidies and incentives on over 20 models, exacerbating an intense pricing war in China. Elsewhere in EVs, Tesla has agreed to extend a key deadline for AustralianSuper-backed Syrah Resources, offering the ASX-listed graphite producer a reprieve to establish itself as a strategic supplier of key battery material, natural graphite, to the US electric car maker. (AFR)(Eagers ASX)(Reuters)(AFR)