By JILL LAWLESS and AAMER MADHANI

WASHINGTON (AP) — British Prime Minister Keir Starmer on Thursday extended a state visit invitation to President Donald Trump on behalf of King Charles.

Trump accepted the invitation, which came at the start of a face-to-face meeting between Trump and Starmer at the White House.

Starmer called the invitation for a second state visit to Trump, who already received the honor during his first term, as “historic” and “unprecedented.”

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

WASHINGTON (AP) — British Prime Minister Keir Starmer is visiting the White House on Thursday to try to convince President Donald Trump that a lasting peace in Ukraine will endure only if Kyiv and European leaders are at the table as negotiations move forward with Moscow.

Starmer’s trip, coming a few days after French President Emmanuel Macron’s own visit, reflects the mounting concern felt by much of Europe that Trump’s aggressive push to find an end to Russia’s war in Ukraine signals his willingness to concede too much to Russian President Vladimir Putin.

“We’re going to do the best we can to make the best deal we can for both sides,” Trump said Wednesday as he held the first Cabinet meeting of his second term. “For Ukraine, we’re going to try very hard to make a good deal so that they can get as much (land) back as possible.”

But the Republican president’s rapprochement with Russia has unsettled America’s historic allies in Europe. They have found themselves on their heels with Trump returning to the White House with a determination to dramatically make over U.S. foreign policy to correspond with his “America First” world view.

The Trump administration held talks last week with Russia without Ukrainian or other European allies represented. And this week, the U.S. refused to sign on to resolutions at the United Nations blaming Russia for the war, which began three years ago when Moscow invaded. The drifting White House view of Ukraine under Trump is leading to a tectonic shift in transatlantic relations.

His administration is pushing back on the notion that Trump is ignoring Europe or is too eager in his push for settlement talks with Putin.

“He hasn’t conceded anything to anyone,” Vice President JD Vance said. “He’s doing the job of a diplomat.”

Trump’s meeting with Starmer comes a day before a White House meeting with Ukrainian President Volodymyr Zelenskyy. The two leaders are expected to sign off Friday on a contentious agreement that would give the U.S. access to Ukraine’s critical minerals, which are used in the aerospace, defense and nuclear industries. Zelenskyy had chafed at signing off on an agreement without specific security guarantees from Washington.

Trump was noncommittal about any coming American security guarantees. “I’m not going to make security guarantees … very much,” Trump said. “We’re going to have Europe do that.”

If a truce can be reached, Starmer and Macron have agreed to send troops for a potential peacekeeping mission to Ukraine to ensure that fighting between Ukraine and Russia doesn’t flare up again.

But White House officials are skeptical that Britain and France can assemble enough troops from across Europe, at least at this moment, to deploy a credible peacekeeping mission to Kyiv.

It will likely take a “consensual peace settlement” between Russia and Ukraine before many nations would be willing to seriously providing such forces, according to a senior Trump administration official who briefed reporters on the condition of anonymity under ground rules set by the White House.

Zelenskyy, while en route to Washington, met on Thursday with Ireland’s prime minister, Micheál Martin, who said he told Zelenskyy that Ireland is open to helping, including sending peacekeepers to Ukraine.

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Zelenskyy and European officials have no illusions about U.S. troops taking part in such a mission. But Starmer and others are trying to make the case that the plan can only work with a U.S. backstop for European forces on the ground — through U.S. aerial intelligence, surveillance and support, as well as rapid-response cover in case of breaches of a truce.

Trump is also looking at the moment as an opportunity to potentially reopen economic relations with Russia after three years of U.S.-led sanction efforts to punish Moscow for the invasion.

“I think there’ll be plenty of of economic cooperation opportunities between the two countries,” Trump special envoy Steve Witkoff said in an appearance Thursday on Fox News.

Starmer is hosting a Sunday meeting in the United Kingdom of international leaders that will focus on Ukraine. Zelenskyy is expected to attend. The prime minister also announced plans this week for the U.K. to bolster defense spending. That should sit well with Trump, who has been critical that European allies are spending too little on defense.

Starmer’s government will increase military spending to 2.5% of gross domestic product by 2027, years earlier than expected, and aim to reach 3% by 2035.

Beyond the war in Ukraine, Starmer said the talks will home in on “a stable economy, secure borders and national security,” as well as cooperation on AI and other cutting-edge technology. He will stress that Europe must “play its part on global defense and step up for the good of collective European security.”

“The world is becoming ever more dangerous, and it is more important than ever that we are united with our allies,” Starmer said.

Starmer is also keen to discuss “the opportunities that further technology and AI partnerships could deliver,” his office said, including ambitious but vague “shared moonshot missions across top technologies including quantum and AI, and a deeper partnership on space.”

Britain has signaled it aims to eschew the European Union’s high-regulation approach to AI as it seeks to become a leader in the field.

The U.K. joined the U.S. in refusing to sign a joint declaration at an artificial intelligence summit hosted by Macron in Paris this month in what was seen as an attempt to curry favor with Washington and seek investment from American tech companies. Starmer’s office said the prime minister “will make the case for further integration between the two countries’ tech sectors to make them the most efficient, ambitious technology sectors in the world.”

Peter Mandelson, Britain’s ambassador to the U.S., said the two allies should stand “shoulder to shoulder” at “a very, very significant moment for our lives, between our two countries and indeed for all the freedom-loving democracies in the world.”

“We share people, we share cultures, we share a lot of intelligence, we share technologies, and … we also share some of the fighting of our adversaries as well,” Mandelson said.

Associated Press writer Panagiotis Pylas in London contributed to this report. 

By ALEX VEIGA, AP Business Writer

The average rate on a 30-year mortgage in the U.S. eased for the sixth week in a row, a welcome boost in purchasing power for home shoppers just as the annual spring homebuying season gets going.

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The average rate fell 6.76% from 6.85% last week, mortgage buyer Freddie Mac said Thursday. A year ago, it averaged 6.94%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also eased this week. The average rate fell to 5.94% from 6.04% last week. A year ago, it averaged 6.26%, Freddie Mac said.

The steady decline in mortgage rates rates this year hasn’t been enough to change the affordability equation for many prospective home shoppers, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase.

Sales of previously occupied U.S. homes fell in January as rising mortgage rates and prices froze out many would-be homebuyers despite a wider selection of properties on the market.

New data on pending home sales, a bellwether for future completed sales, point to potentially further sales declines in coming months. They slid to an all-time low in January.

The average rate on a 30-year mortgage is now at its lowest level since Dec. 19, when it was also 6.72%. It briefly fell to a 2-year low last September, but has been mostly hovering around 7% this year. That’s more than double the 2.65% record low the average rate hit a little over four years ago.

“The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home,” said Sam Khater, Freddie Mac’s chief economist.

The inventory of U.S. homes on the market climbed last month to its highest level since June 2020, according to data from Redfin. But mortgage rates and prices remain an unaffordable combination for many would-be homebuyers.

Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy decisions.

The latest pullback in rates echoes a decline in the 10-year Treasury yield, which lenders use as a guide for pricing home loans.

The yield, which was at 4.79% in mid-January, has been mostly easing since then, reflecting worries among bond investors over the potential impact from tariffs and other policies proposed by the Trump administration.

The 10-year yield was at 4.28% in midday trading Thursday.

By STAN CHOE

NEW YORK (AP) — When it comes to stock markets around the world, this year has clearly not been “America First.”

The U.S. stock market has risen in 2025 and isn’t far from its all-time high set last week. But it’s climbed less than stock indexes in Mexico City, Paris and Hong Kong.

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The difference in performance has been so stark than an index of stocks from 22 of 23 developed economies around the world, excluding the United States, has trounced the S&P 500: a 7.5% rise through Monday versus 1.7% for Wall Street’s benchmark.

The split in performance has many causes, and if it continues, it would mark a sharp reversal following years of U.S. exceptionalism. The U.S. stock market has been the clear winner for so long among global markets in large part because the U.S. economy’s growth has been so much stronger and more stable than nearly anywhere else.

But the steep divide means many other stock markets now don’t look as pricey as Wall Street, where critics say prices for many stocks rose too quickly relative to their companies’ admittedly booming profits. And the Big Tech stocks that have accounted for more and more of the U.S. stock market as they kept soaring look particularly expensive to some.

Morgan Stanley strategist Michael Wilson said many of his clients in recent weeks have been asking if they should be focusing more outside the United States. That includes tech stocks from China, where an upstart called DeepSeek rocked the artificial-intelligence industry by saying it had developed a large language model that could compete with big U.S. rivals but at a much lower cost.

Central banks in other countries also seem much more willing to cut interest rates, a move that often tends to boost stock prices there. The European Central Bank eased rates in January, for example. A day later, the Federal Reserve in Washington said it would hold rates steady, and minutes from that meeting indicate U.S. policy makers may not move rates for a while given worries about how President Donald Trump’s tariffs and other policies could keep upward pressure on inflation.

The rise in the U.S. dollar’s value against other currencies has also helped big exporters from other countries. Some big U.S. companies, meanwhile, have already begun cutting their forecasts for upcoming profits in part because of the bite that a stronger dollar will take from their results.

At Amazon, shifting currency values erased about $900 million of its revenue during the latest quarter, which totaled $187.8 billion, for example. The tech giant said the pain will likely continue, and it forecasted an “unusually large, unfavorable impact of approximately $2.1 billion” for its revenue in the current quarter from currency shifts.

Professional investors have noticed. It’s still popular among global fund managers to bet on Apple, Nvidia and the other five Big Tech U.S. stocks that make up the group known as the “Magnificent Seven.” But the recent outperformance for stocks outside the United States may show a “peak in investor conviction of U.S. exceptionalism,” Bank of America strategist Michael Hartnett wrote in a recent BofA Global Research report.

By RAF CASERT

BRUSSELS (AP) — The European Union on Thursday pushed back hard against allegations by U.S. President Donald Trump that the 27-nation bloc was out to get the United States, and warned that it would vigorously fight any wholesale tariff of 25% on all EU products.

The tit-for-tat dispute following the comments of Trump, which were aimed at an age-old ally and its main postwar economic partner, further deepened the trans-Atlantic rift that was already widened by Trump’s warnings that Washington would drop security guarantees for its European allies.

Thursday’s EU pushback came after Trump told reporters that “the European Union was formed in order to screw the United States. That’s the purpose of it, and they’ve done a good job of it,” adding that it would stop immediately under his presidency.

Prime Minister Donald Tusk of Poland, which holds the EU’s rotating presidency, went on a counteroffensive.

“The EU wasn’t formed to screw anyone,” Tusk said in an X post. “Quite the opposite. It was formed to maintain peace, to build respect among our nations, to create free and fair trade, and to strengthen our transatlantic friendship. As simple as that.”

And Spanish Prime Minister Pedro Sánchez added fiery fuel to the debate.

“We are going to defend our interests when our economies are attacked with tariffs that are completely unjustified and represent a veiled threat to our economic sovereignty.

“We are committed and prepared to do so,” he said in northern Spain.

The EU also warned that the moment that tariffs are announced, it would trigger tough countermeasures on iconic U.S. industries like bourbon, jeans and motorcycles.

“The European Union and its member states have been working for months and we are going to adopt measures that are proportional to the challenge. We will do so in unison,” Sánchez said.

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European Commission trade spokesman Olof Gill also said that the EU would stand up to the Trump administration if tariffs are announced.

“The EU will react firmly and immediately against unjustified barriers to free and fair trade,” Gill said in a statement. “We will also protect our consumers and businesses at every turn. They expect no less from us.”

Trump said in comments late Wednesday that the United States stood ready.

“We are the pot of gold. We’re the one that everybody wants. And they can retaliate. But it cannot be a successful retaliation, because we just go cold turkey. We don’t buy any more. And if that happens, we win.”

Gill also countered Trump’s caustic comments on the inception of the EU and its development as an economic powerhouse.

“The European Union is the world’s largest free market. And it has been a boon for the United States,” he said, adding that the EU has “facilitated trade, reduced costs for U.S. exporters, and harmonized standards and regulations,” which makes it easier for U.S. exporters.

The EU estimates that the trade volume between both sides stands at about $1.5 trillion, representing around 30% of global trade. Trump has complained about a trade deficit, but while the bloc has a substantial export surplus in goods, the EU says that is partly offset by the U.S. surplus in the trade of services.

The EU says that trade in goods reached 851 billion euros ($878 billion) in 2023, with a trade surplus of 156 billion euros ($161 billion) for the EU. Trade in services was worth 688 billion euros ($710 billion) with a trade deficit of 104 billion euros ($107 billion) for the EU.

The figures are so big that it remained essential to avoid a trade war, the EU has said.

“We should work together to preserve these opportunities for our people and businesses. Not against each other,” Gill said. “Europe stands for dialogue, openness and reciprocity. We’re ready to partner if you play by the rules.”

Joseph Wilson in Barcelona, Spain, and Vanessa Gera in Warsaw, Poland, contributed to this report.