President Trump’s administration and the U.K. agreed to the outlines of a deal on trade, the first in what the White House hopes will be a series of agreements in the wake of U.S. tariffs imposed on allies and adversaries alike. Canada’s central bank warned that permanent tariffs could cause high unemployment and business insolvencies. And U.S. consumers’ expectations for inflation over the next 12 months stayed steady at 3.6%, according to a New York Fed survey, but they edged higher to 3.2% for three years ahead compared with the previous month's survey.

The U.S.-U.K. trade pact, which appeared to have been put together hastily, is fairly limited in scope. The Trump administration agreed to roll back tariffs imposed on British steel and automobiles in exchange for purchasing Boeing jets and giving American farmers greater access to U.K. markets. Under the deal, most U.K. goods will still be subject to the global 10% tariff the U.S. imposed on all countries in April.

• With U.K. Deal, U.S. Signals That 10% Tariff on World Is New Baseline
• The U.S.-U.K. Trade Relationship Is Unique. Here’s Why.
• Trump’s Bespoke Trade Deal With U.K. Sets Little Precedent for Other Nations
• Investors Dig Into U.K. Trade Deal, Await News of China Talks
• Bank of England Chief Says Broader Tariff Deals Are Key
• Traders Scale Back Rate-Cut Bets, Reflecting Increased Trade Optimism
• Economists Welcome Agreement for Signal Rather Than Substance

The European Union said it could target American cars, car parts, airplanes and other products with tariffs if negotiations with the U.S. break down. The European Commission, the bloc’s executive body, released a fresh list of about 95 billion euros worth of American products that it says could face tariffs, equivalent to about $107 billion.

• Fentanyl Crisis Provided Opening for U.S.-China Trade Talks

• Bank of Canada’s No. 2 Official Sounds Alarm on Hedge Fund Holdings of Government Debt

The three-year battle to tame Australia’s worst inflation surge in four decades has been wearying for the Reserve Bank of Australia. At last, the guns have fallen silent, and a string of interest-rate cuts are being locked and loaded.

With both headline and core inflation back within the RBA’s 2% to 3% target band in the first quarter, the mood at the central bank is likely one of relief that the “scourge” has ended.

Those responsible for economic forecasting at the bank will feel some satisfaction that the data has aligned with expectations, and that a soft landing is playing out. Read more.

The number of people newly filing for unemployment benefits declined last week, signaling continued resilience in the labor market through the month after President Trump unveiled his “Liberation Day” tariffs. The Labor Department said 228,000 filed new jobless claims in the week through May 3, down from 241,000 a week earlier.

8:30 a.m.: Richmond Fed President Thomas Barkin speaks at Loudon County Chamber of Commerce event
10 a.m.: Fed Listens—Perspectives from the Midwest event with Chicago Fed President Austan Goolsbee
11:30 a.m.: Fed Governor Christopher Waller speaks on monetary policy research panel at Hoover Monetary Policy Conference
11:30 a.m.: Richmond Fed President Thomas Barkin participates in Greater Washington Board of Trade event
7:45 p.m.: Fed Governor Lisa Cook speaks on productivity dynamics panel at Hoover Monetary Policy Conference

1 p.m.: SEC Crypto Task Force roundtable

Rate-setters at the Bank of England are increasingly divided about how to react to U.S. tariffs. It is a reminder that the Federal Reserve isn’t the only central bank facing a confusing outlook. On Thursday, the BOE cut interest rates by a quarter of a percentage point to 4.25%. This was a day after the Fed stood pat, showing officials abroad are finally ready to diverge from U.S. monetary policy. Yet sterling strengthened and U.K. government-bond yields rose. Investors, who had expected two more cuts over the next three meetings, took the BOE’s action as hawkish. Only five of the bank's nine rate-setters agreed with the move. Two thought the BOE should have cut more. Another two argued that policy shouldn’t have been loosened at all, because surveys point to higher inflation expectations.

— WSJ's Jon Sindreu

• Airplanes are carrying less cargo to the U.S., in large part because importers have paused shipments of e-commerce packages and other goods to avoid hefty tariffs on goods made in China.
• China said exports to the U.S. plunged in April, as the Trump administration’s tariff assault forced the world’s second-largest economy to redirect more of its goods to Southeast Asia, Latin America, Europe and Africa.
• The European Union's top trade negotiator signed a digital trade agreement with Singapore as Europe's policymakers search for closer ties with non-EU countries as U.S. President Trump's tariff threats loom large. (Dow Jones Newswires)
• Far-right populists are threatening to eclipse Europe’s once-powerful conservative parties, in one of the biggest political realignments since the end of World War II. The continent’s center-right is now searching for a survival strategy.

Early opponents of corporate influence in healthcare are spotting parallels in another trusted profession where private equity is making a push: accounting.

AI is changing the way we search online. Advertisers are already falling behind.

IBM has used AI to replace the work of a couple hundred human resources workers. As a result, it has hired more programmers and salespeople, and it promises higher total employment.

WeightWatchers, whose dieting and wellness programs were once a central part of U.S. fitness culture, has filed for bankruptcy to adjust to the increasing use of drugs for weight loss.

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ’s global team of reporters and editors. This newsletter was compiled by Michael Maloney in New York. Send your tips, suggestions and feedback michael.maloney@wsj.com.