DAVOS, Switzerland (Reuters) - Chancellor Olaf Scholz voiced cautious optimism on Tuesday on the potential for German-U.S. relations under President Donald Trump, citing good first talks with his administration, and stressed that cooperation was key for peace and prosperity.

German and French leaders Olaf Scholz and Emmanuel Macron are holding bilateral talks. Topics include the new Trump administration, war in Ukraine and the conflict in the Middle East.

U.S. Secretary of State Marco Rubio spoke with Israeli Prime Minister Benjamin Netanyahu on Wednesday to reiterate Washington's support for its ally, and the two also discussed Iran and Israeli hostages in Gaza, the State Department said.

German Chancellor Olaf Scholz offered only an indirect answer when asked about tech billionaire Elon Musk during an appearance at the World Economic Forum in Davos on Tuesday. Musk, who had previously weighed in on German politics to endorse and promote the far-right Alternative for Germany (AfD),

A heated exchange has erupted between Elon Musk and German Chancellor Olaf Scholz following Scholz’s remarks condemning the use of free speech to promote far-right views. The dispute comes after Musk made a controversial hand gesture during Donald Trump’s inauguration festivities,

A 28-year-old man from Afghanistan has been arrested following a knife attack in a park in the German city of Aschaffenburg on Wednesday in which two people were killed, including a toddler, police said.