• Treasury Secretary Janet Yellen warned in a letter to congressional leaders that the federal government could run out of money by June 1 without a deal to raise the debt ceiling. Shortly after the letter was published, the White House confirmed that President Joe Biden had invited House Speaker Kevin McCarthy (R-Calif.) and the rest of congressional leadership to meet on May 9 for talks to raise the debt limit. It’s an apparent shift in tactics from the White House, which had previously been unwilling to negotiate on the issue. (Financial Times)
• Biden reiterated Washington’s “ironclad” commitment to its alliance with the Philippines during Philippines President Ferdinand Marcos Jr.’ visit to the White House and praised his counterpart’s role in improving strained ties since he came to office. Following the meeting, the United States announced the transfer of three C-130 aircraft and two naval patrol vessels to Manila and said it would launch a new trade mission meant to bring more innovation to the Philippine economy. (The Associated Press)
• At least 20,000 Russian fighters have been killed and about another 80,000 have been wounded in Ukraine in the last five months, according to U.S. National Security Council spokesperson John Kirby. Kirby did not disclose Ukrainian losses, but said roughly half of the Russian dead are mercenaries for the Wagner group, which has been decimated in its attempt to take the city of Bakhmut. (The New York Times)
• The Federal Reserve is set to raise interest rates again to their highest level in 16 years this week, but is sending signals that the phase of consistent rate increases may be coming to a close. Central bankers are attempting to balance attempts to fight inflation through rate hikes against fears that doing so could cause more bank collapses or even a recession. (The Wall Street Journal) 

Happening today (all times Eastern):

• 10 a.m. The Senate Appropriations subcommittee holds a hearing with the Army secretary and chief of staff on Biden’s 2024 budget request.
• 11 a.m. The Center for Strategic and International Studies hosts a discussion of how the collapse of the Soviet Union is viewed within the Chinese Communist Party.

Earthquake Barely Shakes Erdoğan’s Support Weeks Before Key Turkish Elections

Morning Consult

Spiking sea surface temperatures are raising climate concerns

Andrew Freedman, Axios 

Since mid-March, the world’s oceans have been hotter than at anytime since at least 1982, raising concerns among some climate experts about accelerated warming.

Investment in developing nations may hit 20-year low: World Bank official

Kosuke Takami, Nikkei Asia 

Private-sector money to poorest areas is sinking, agency chief warns.

Honda follows Apple model on EVs, working directly with suppliers

Shizuka, Nikkei Asia 

New supply chain puts emphasis on batteries, semiconductors.

EU and US warn Malaysia of ‘national security’ risk in Huawei’s bid for 5G role

Mercedes Ruehl, Financial Times 

Kuala Lumpur’s review of tender tests ability to juggle relations with the west and China.

U.S., Japan and South Korea plan three-way summit in Hiroshima

Nikkei Asia 

Biden, Kishida and Yoon to deepen partnership to counter North Korean threat.

China’s exit bans multiply as political control tightens under Xi

James Pomfret and Angel Woo, Reuters 

China is increasingly barring people from leaving the country, including foreign executives, a jarring message as the authorities say the country is open for business after three years of tight COVID-19 restrictions.

China’s ‘men in black’ step up scrutiny of foreign corporate sleuths

Financial Times 

Raids on consultancies reveal mounting risks of performing due diligence.

China revises conscription law, eyeing Taiwan conflict

Yukio Tajima, Nikkei Asia 

Veteran soldiers, tech-savvy students expected to play key roles.

Cambodia’s Hun Sen plans power succession to son, allies’ children

Jack Brook Phin Rathana, Nikkei Asia 

Strongman prime minister mulling when to hand over to his eldest child, Hun Manet.

More opposition defections lift Cambodia’s ruling party ahead of July election

Radio Free Asia 

Three opposition figures send hand-written apologies and pre-recorded videos to Hun Sen in recent days.

Australia may use defence exchanges with Pacific countries to tackle ADF recruitment crisis

Daniel Hurst, The Guardian 

The Australian government wants to broaden defence exchanges with Pacific countries amid wider fears the Australian defence force will struggle to meet recruitment targets over the coming decades.

Ukrainian defenders oust Russian forces from some positions in Bakhmut – Ukraine general

Dan Peleschuk,| Reuters 

Ukrainian units have ousted Russian forces from some positions in Bakhmut amid fierce battles, a top Ukrainian general said on Monday, as the White House believes that more than 20,000 Russian fighters have been killed in Ukraine since December.

Eurozone Prices Rose in April, as Central Bank Seeks to Tame Inflation

Melissa Eddy, The New York Times 

The eurozone’s overall rate of inflation ticked higher in April, with the cost of food remaining high. But after subtracting prices for food and energy, which tend to be volatile, the underlying inflation rate eased for the first time in 10 months.

At least 108 police injured and 291 held in May Day protests in cities across France

Angelique Chrisafis, The Guardian 

Teargas fired amid clashes as unions turn traditional marches into anti-government protest against pension reform.

France’s weakened prime minister ducks an immigration fight

Leila Abboud, Financial Times 

Élisabeth Borne struggles to find parliamentary allies after forcing through pensions reform.

Brazil government to tax income from financial investments obtained abroad

Marcela Ayres, Reuters 

Brazilian President Luiz Inacio Lula da Silva’s government published an executive order aimed at increasing revenue by taxing the capital income from financial investments obtained abroad by individuals who reside in Brazil.

Remembering the horrors of Colonia Dignidad in Chile

Oliver Pieper, Deutsche Welle

Chile and Germany have agreed to push for a memorial for the victims of sexual violence, torture and murder in the former German cult. But this isn’t the first time such promises have been made.

Saudi-Iran rapprochement visible in Sudan evacuation effort

Parisa Hafezi et al., Reuters 

The growing rapprochement between Riyadh and Tehran after years of mistrust was visible on Monday as Saudi Arabia helped evacuate Iranian citizens fleeing the war in Sudan.

BBC World Service launches emergency pop-up radio service for Sudan

Paul Glynn, BBC News 

The pop-up radio service will be broadcast twice daily for three months, providing news and information for people in the war-torn African nation.

Sudanese fleeing clashes flood port city, borders with Egypt 

Samy Magdy, The Associated Press

Sudanese fleeing the fighting between rival generals in their capital flooded an already overwhelmed city on the Red Sea and Sudan’s northern borders with Egypt, as explosions and gunfire echoed Tuesday in Khartoum.

Kenyan police clash with anti-government protesters

Evelyne Musambi, The Associated Press

Police in Kenya clashed with anti-government protesters in the capital, Nairobi, in a fresh round of demonstrations called by the opposition leader.

UN agency suspends food aid to Ethiopia’s Tigray amid theft

The Associated Press

The United Nations food relief agency has suspended aid deliveries to Ethiopia’s northern Tigray region amid an internal investigation into the theft of food meant for hungry people, according to four humanitarian workers.

US House speaker in Knesset amid fraught US-Israel ties

Ilan Ben Zion and Tia Goldenberg, The Associated Press

The U.S. House speaker addressed Israel’s parliament on Monday, a rare honor awarded to the highest-ranking Republican in U.S. politics at a time of fraught relations between Israel’s government and Democratic President Joe Biden.

Kevin McCarthy Says He Will Invite Israel’s Netanyahu if Biden Won’t

Aaron Boxerman, The Wall Street Journal 

House speaker addresses Knesset after president aired concern about Israeli judicial overhaul.

U.S. Backs Sale of Citgo to Pay Venezuela’s Debts 

Andrew Scurria, The Wall Street Journal 

The federal government says it intends to strip Venezuela’s Citgo of protections against seizure to make way for a forced sale of the oil refiner.