Good morning from the Financial Times.

Today is Wednesday, April 1st, and this is your FT News Briefing.

U.S. stocks got a little pick-me-up yesterday, but the European Central Bank appears to have a bit of a mess on its hands.

Plus, American businesses wondered if they'd survive U.S. President Donald Trump's tariffs. We spoke to a small company who sued the administration over the policy.

I'm Mark Filipino, and here's the news you need to start your day.

U.S. stocks rallied yesterday after President Trump said that when it comes to Iran, quote,

the hard part is done. The S&P 500 ended the day nearly 3% higher. The NASDAQ composite jumped close to 4%. They had their biggest one-day gains in more than a month. While yesterday was good

for U.S. equities, it's been a rough couple of weeks for another American asset class.

Data from the New York Federal Reserve showed foreign central banks have slashed their holdings

of treasuries. They're at their lowest level since 2012. One analyst told the F.T. That oil-importing countries like Turkey and India

are looking to sell U.S. government debt

to afford the higher prices of dollar-denominated oil.

The value of treasuries held at the New York Fed

has dropped by $82 billion since the end of February.

The Middle East conflict created an energy shock around the world, and yesterday we got a glimpse of what it's doing to Europe.

A preliminary estimate showed that Eurozone inflation jumped to 2.5% in March, a little more than half a percent higher than what we saw in February and above the European Central Bank's 2% target.

So how should monetary policy makers respond? Chris Giles is the FT's economics commentator,

and he joins me now to discuss this. Hey, Chris. Hey, Mark. So I have to assume that this is causing a bit of a headache for the ECB.

It's a real pain for the ECB, because in Europe, which is a net energy importer, imports both

oil and natural gas, higher prices just means less money for everything else.

So it just means some form of lower growth, higher inflation.

The only question is how bad is it going to get

...