In an excruciating news conference – so short the gathered political press pack were left open-mouthed as she departed – Liz Truss made her already perilous political position even worse.
The aim of this breakneck change in direction was to attempt to calm markets and her Conservative colleagues, but instead, she left huge questions unanswered.
It’s worth underlining the significance of what the prime minister just announced.
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First, on policy, she has buckled and reversed her position on corporation tax. She will now go ahead with the increase proposed by her leadership rival, Rishi Sunak.
During the contest to replace Boris Johnson as Tory leader, Ms Truss had said increasing the rate from 19% to 25% next April would “put off people who want to invest in Britain” and amount to “cutting off our nose to spite our face”.
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It was a significant part of the platform on which she was elected Tory leader, now humiliatingly discarded in order to bring in around £18bn to fill the black hole left by last month’s mini-budget.
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She said it was a “down payment” on the medium-term fiscal plan due to be set out on 31 October – a signal to the markets that she’s prepared to make more reversals if necessary.
Does she still believe it will put people off investing? We don’t know because she didn’t stick around at the news conference long enough to be asked.
On the sacking of Kwasi Kwarteng as chancellor, she expressed her sorrow – but again, did not answer the obvious question about how she can possibly justify his departure without her own.
Image: Liz Truss and her former chancellor Kwasi Kwarteng
The chancellor, who was supposed to be one of her closest political friends, was also humiliatingly discarded – along with the government’s radical economic mission for which she had asked him to lead the charge.
The way in which the prime minister delivered this news really matters. Not just because of the lack of scrutiny that came from only taking four questions and barely engaging with them in the answers – but because her party, and indeed the markets, will have been watching to see how she handled the situation.
That news conference was not just about communicating with the public. The messages I received from Conservative MPs ahead of the news conference made clear that she needed to put in a really strong, reassuring performance.
Their fears are that she is out of her depth. They want to see that she can handle being prime minister. And the early signs are that her performance today failed on both fronts.
One MP has messaged me saying it was “shockingly bad”, even by Liz Truss’s standards.
Image: Jeremy Hunt has replaced Kwasi Kwarteng as chancellor
Jeremy Hunt’s installation as the new chancellor may be intended to show the ship is being steadied – that someone with deep experience in government is at the helm of the economy and that markets do not need to fear further surprises.
But power flows from Number 10. The prime minister is the head of government. The prime minister is the person who must command the confidence of the Commons if they are to remain in post.
Ukraine’s president is offering an olive branch to Donald Trump with a dramatic public message aimed at mending their relationship and ending Russia’s war.
He did not go so far as to apologise for a fiery bust-up with Mr Trump at the Oval Office last Friday – a move that some members of the US administration have called for, even though it was the American president and his deputy JD Vance who laid into Mr Zelenskyy.
Image: Ukrainian forces fire a missile towards Russian troops near Chasiv Yar. Pic: Reuters
Most significantly though was his spelling out of a vision for the first stage of how Russia’s war with Ukraine could end.
Pushing back on false claims by Trump allies such as Elon Musk that Mr Zelenskyy wants an endless war, he said that Ukraine is committed to peace and is ready to come to the negotiating table as soon as possible.
Crucially, he said: “We are ready to work fast to end the war, and the first stages could be the release of prisoners and truce in the sky – ban on missiles, long-ranged drones, bombs on energy and other civilian infrastructure – and truce in the sea immediately, if Russia will do the same.”
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Appealing to the US president’s ego, he praised Mr Trump’s “strong leadership” and repeated his gratitude for past American support – again responding to criticism from the American commander in chief and his team that he is not showing enough gratitude.
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He also said Kyiv was ready to sign a key minerals deal with Washington – something else Mr Trump is seeking.
This message appears to be an attempt by Mr Zelenskyy to steer his relationship with Mr Trump back on track and to map out his idea for an end to the war – a conflict that Ukraine did not seek but which was brought to its land by Russia’s invading forces.
Image: Donald Trump and Volodymyr Zelenskyy at the White House on Friday, before their Oval Office bust-up. Pic: AP
Will Mr Zelenskyy’s expression of regret and clear wish to end the war provide enough of an off-ramp for Mr Trump to defuse the row and – for the sake of Ukraine’s ability to defend itself – switch back on the flow of military assistance to the country?
Another major factor, of course, is how Vladimir Putin reacts and whether he could countenance a limited ceasefire in a war that he started and – unlike Mr Zelenskyy – appears to have no genuine desire to halt.
Donald Trump’s 25% tariffs on goods from Mexico and Canada have come into effect, as has an additional 10% on Chinese products, bringing the total import tax to 20%.
The US president confirmed the tariffs in a speech at the White House – and his announcement sent US and European stocks down sharply.
The tariffs will be felt heavily by US companies which have factories in Canada and Mexico, such as carmakers.
Mr Trump said: “They’re going to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs.”
There’s “no room left” for a deal that would see the tariffs shelved if fentanyl flowing into the US is curbed by its neighbours, he added.
Mexico and Canada face tariffs of 25%, with 10% for Canadian energy, the Trump administration confirmed.
And tariffs on Chinese imports have doubled, raising them from 10% to 20%.
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Canada announced it would retaliate immediately, imposing 25% tariffs on US imports worth C$30bn (£16.3bn). It added the tariffs would be extended in 21 days to cover more US goods entering the country if the US did not lift its sanctions against Canada.
China also vowed to retaliate and reiterated its stance that the Trump administration was trying to “shift the blame” and “bully” Beijing over fentanyl flows.
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2:45
What is America’s trade position?
Mr Trump’s speech stoked fears of a trade war in North America, prompting a financial market sell-off.
Stock market indexes the Dow Jones Industrial Average and the Nasdaq Composite fell by 1.48% and 2.64% respectively on Monday.
The share prices for automobile companies including General Motors, which has significant truck production in Mexico, Automaker and Ford also fell.
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Consumers in the US could see price hikes within days, an expert has said.
Gustavo Flores-Macias, a public policy professor at Cornell University, New York, said “the automobile sector, in particular, is likely to see considerable negative consequences”.
This is due to supply chains that “crisscross the three countries in the manufacturing process” and ” because of the expected increase in the price of vehicles, which can dampen demand,” he added.
A truck has collided with a bus in southern Bolivia, killing at least 31 people, according to police – just two days after a deadly crash claimed at least 37 lives.
Officers said the bus rolled some 500m (1,640ft) down a ravine after the collision on Monday, which took place on the highway between Oruro, in the Bolivian Altiplano, and the highland mining city of Potosi.
The driver of the truck has been arrested, while the cause of the accident is under investigation.
Police spokesperson Limbert Choque said men and women were among the dead, and 22 people suffered injuries.
Image: Rescue teams operating at the site of the crash. Pic: Bolivia’s attorney general/Reuters
Bolivia’s President, Luis Arce, expressed condolences for the victims on social media: “This unfortunate event must be investigated to establish responsibilities,” he said in a post on Facebook.
“We send our most sincere condolences to the bereaved families, wishing them the necessary strength to face these difficult times.”
Image: The crash happened between Oruro and Potosi
On Saturday morning, a crash between two buses killed more than three dozen people in the same region.
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It happened between Colchani and the city of Uyuni, a major tourist attraction and the world’s largest salt flat.
Image: People stand near the wreckage of one of the two buses involved in a crash on Saturday. Pic: Reuters/Potosi Departmental Command
Coincidentally, one of the buses was heading to Oruro, where one of the most important carnival celebrations in Latin America is currently taking place.
More than 30 people were also killed after a bus crash on 17 February.
In that crash, police said the driver appeared to have lost control of the vehicle, causing it to drop more than 800m (2,600ft) off a precipice in the southwestern area of Yocalla.
Bolivia’s mountainous, undermaintained and poorly supervised roads are some of the deadliest in the world, claiming an average 1,400 fatalities every year.