Connect with us

Published

on

After his crisis talks with Liz Truss at Chequers, Jeremy Hunt was photographed being driven from the PM’s country retreat sitting in the back of a government car.

Earlier, when the new chancellor was asked in a TV interview who was in charge, him or the PM, he insisted it was her. But MPs believe Mr Hunt is now an all-powerful back seat driver.

Mr Hunt wasn’t even being driven from Chequers in a top-of-the-range Range Rover as befits his new status as a senior cabinet minister, but a humble and less conspicuous people carrier.

And the embattled PM will be hoping her new chancellor can carry the British people with him, as he embarks on more U-turns designed to steady the nerves of markets, Tory MPs and voters.

The latest verdict of the markets will come early on Monday morning, hours before MPs return to Westminster after taking soundings in their constituencies over the weekend. Those soundings are likely to have been brutal.

The voters’ latest verdict will come in the next snap opinion polls. And while jittery Tory MPs will hope the polls can’t get any worse for their party, it’s possible they will.

A poll of polls analysed by Sky News confirms the findings of recent surveys suggesting Labour’s average lead is nudging 30 points, the biggest since Tony Blair’s honeymoon period after his 1997 landslide.

After the turmoil and chaos of the past week, the mood of Conservative MPs is mutinous. One senior backbencher, Sir Crispin Blunt, was first to declare publicly that the game is up.

Truss loyalists will claim, with some justification, that Sir Crispin is not the most reliable witness. He defended former Tory MP Imran Khan, who was convicted of sexual assault, though he later apologised.

But the Reigate MP, who is now quitting at the next election, was only saying publicly what many Conservative MPs are saying privately.

Please use Chrome browser for a more accessible video player

‘Blindingly obvious Liz Truss must go’

He was closely followed by serial rebel Andrew Bridgen, who claimed the PM has run out of friends. He expects “fireworks” this week and predicts a general election if the situation is not resolved quickly.

In issuing his call, Mr Bridgen has set some kind of record. Ms Truss is the fourth leader he has called to go since he was elected in 2010, after David Cameron, Theresa May and Boris Johnson. At least he’s consistent.

Next came Jamie Wallis, a 2019-er, who declared “enough is enough” and announced he’s written to the prime minister, asking her to stand down as she no longer holds the confidence of the country.

There was much talk over the weekend of Tory MPs rallying behind a “unity candidate” to replace Ms Truss. Defence Secretary Ben Wallace, defeated leadership candidate Rishi Sunak and Commons Leader Penny Mordaunt have been touted to succeed the PM.

Read more:
Who could replace Liz Truss as prime minister?
How could Lizz Truss be removed?

But a senior defence source told Sky News: “The defence secretary is focused on our support for Ukraine and the security of Britain and our allies. Our future as a government and as a Conservative Party lies in demonstrating and providing stability.

“Anything other than that will lead to a deserved spell in opposition.”

In other words, Mr Wallace is telling his more excitable backbenchers to calm down and the veteran plotters – a group of embittered ex-ministers who have been both king-makers and assassins of Tory leaders over the years – to back off.

For now.

Please use Chrome browser for a more accessible video player

Expect more no-confidence letters

Mr Wallace didn’t entirely rule out putting himself forward at some point in the future. And he remains the favourite among party activists, regularly topping polls of party members in highly unscientific popularity contests.

It’s likely Mr Hunt will have to face MPs in the Commons on Monday afternoon to explain the U-turns so far, either in a statement or by answering an urgent question from Labour’s Rachel Reeves, which Speaker Sir Lindsay Hoyle would be certain to grant.

But as he proved in his weekend interviews, Mr Hunt is an experienced and accomplished public performer who has already displayed a reassuring tone in his first few days in his new job.

The same cannot be said of Ms Truss, whose brief news conference in Downing Street on Friday afternoon was a public relations disaster that left even many of her most loyal supporters in despair.

Not surprisingly, Labour want the PM and not Mr Hunt to come to the Commons. Good luck, as they say, with that.

Mr Hunt is now on a rescue mission to save Ms Truss’s premiership. He’s also suddenly back in the running to become the next prime minister, along with Mr Wallace, Mr Sunak, Ms Mordaunt and – his diehard supporters hope – Boris Johnson.

To be fair, he did say in his latest interview: “Having run two leadership campaigns, and by the way failed in both of them, the desire to be leader has been clinically excised from me.”

Prime Minister Liz Truss during a press conference in the briefing room at Downing Street, London. Picture date: Friday October 14, 2022.
Image:
Liz Truss’s news conference on Friday left some of her supporters in ‘despair’

He went on to say: “I want to be a good chancellor. It’s going to be very, very difficult. But that’s what I’m focusing on.”

Difficult indeed. Many MPs would see his appointment as chancellor as a poisoned chalice. And there have been suggestions that he wasn’t the PM’s first choice and she sounded out Sajid Javid first.

That’s strongly denied by Number 10 insiders, one of whom took the opportunity to denigrate Mr Javid to Sunday newspapers in most unpleasant terms, provoking understandable protests from Tory MPs.

Mr Hunt is now undeniably the man of the moment. How long he remains in that position will depend on how long Ms Truss survives.

Given the extremely brief tenure of his two immediate predecessors, Kwasi Kwarteng and Nadhim Zahawi, he’ll have to weigh up whether it’s worth moving his wife and three young children into the Downing Street flat.

But he could be forgiven for hoping he gets to be driven around in a better government car than the rather down-market people carrier that sped him away from Chequers.

Given the PM’s vulnerability and weakness, the back seat driver tag will be difficult for Mr Hunt to shake off.

Continue Reading

World

Stock markets slump for second day running after Trump announces tariffs – in worst day for indexes since COVID

Published

on

By

Stock markets slump for second day running after Trump announces tariffs - in worst day for indexes since COVID

Worldwide stock markets have plummeted for the second day running as the fallout from Donald Trump’s global tariffs continues.

While European and Asian markets suffered notable falls, American indexes were the worst hit, with Wall Street closing to a sea of red on Friday following Thursday’s rout – the worst day in US markets since the COVID-19 pandemic.

As it happened: Worst week’s trading in five years

All three of the US’s major indexes were down by more than 5% at market close; The Dow Jones Industrial Average plummeted 5.5%, the S&P 500 was 5.97% lower, and the Nasdaq Composite slipped 5.82%.

The Nasdaq was also 22% below its record-high set in December, which indicates a bear market.

Read more: What’s a bear market?

Ever since the US president announced the tariffs on Wednesday evening, analysts estimate that around $4.9trn (£3.8trn) has been wiped off the value of the global stock market.

More on Donald Trump

Mr Trump has remained unapologetic as the markets struggle, posting in all-caps on Truth Social before the markets closed that “only the weak will fail”.

The UK’s leading stock market, the FTSE 100, also suffered its worst daily drop in more than five years, closing 4.95% down, a level not seen since March 2020.

And the Japanese exchange Nikkei 225 dropped by 2.75% at end of trading, down 20% from its recent peak in July last year.

Pic: Reuters
Image:
US indexes had the worst day of trading since the COVID-19 pandemic. Pic: Reuters

Trump holds trade deal talks – reports

It comes as a source told CNN that Mr Trump has been in discussions with Vietnamese, Indian and Israeli representatives to negotiate bespoke trade deals that could alleviate proposed tariffs on those countries before a deadline next week.

The source told the US broadcaster the talks were being held in advance of the reciprocal levies going into effect next week.

Vietnam faced one of the highest reciprocal tariffs announced by the US president this week, with 46% rates on imports. Israeli imports face a 17% rate, and Indian goods will be subject to 26% tariffs.

Please use Chrome browser for a more accessible video player

Do Trump’s tariffs add up?

Read more:
Markets gave Trump a clear no-confidence vote
There were no winners from Trump’s tariff gameshow

China – hit with 34% tariffs on imported goods – has also announced it will issue its own levy of the same rate on US imports.

Mr Trump said China “played it wrong” and “panicked – the one thing they cannot afford to do” in another all-caps Truth Social post earlier on Friday.

Later, on Air Force One, the US president told reporters that “the beauty” of the tariffs is that they allow for negotiations, referencing talks with Chinese company ByteDance on the sale of social media app TikTok.

Please use Chrome browser for a more accessible video player

Tariffs: Xi hits back at Trump

He said: “We have a situation with TikTok where China will probably say, ‘We’ll approve a deal, but will you do something on the tariffs?’

“The tariffs give us great power to negotiate. They always have.”

Continue Reading

World

Financial markets were always going to respond to Trump tariffs but they’re also battling with another problem

Published

on

By

Financial markets were always going to respond to Trump tariffs but they're also battling with another problem

Global financial markets gave a clear vote of no-confidence in President Trump’s economic policy.

The damage it will do is obvious: costs for companies will rise, hitting their earnings.

The consequences will ripple throughout the global economy, with economists now raising their expectations for a recession, not only in the US, but across the world.

Tariffs latest: FTSE 100 suffers biggest daily drop since COVID

Financial investors had been gradually re-calibrating their expectations of Donald Trump over the past few months.

Hopes that his actions may not match his rhetoric were dashed on Wednesday as he imposed sweeping tariffs on the US’ trading partners, ratcheting up protectionism to a level not seen in more than a century.

Markets were always going to respond to that but they are also battling with another problem: the lack of certainty when it comes to Trump.

More on Donald Trump

He is a capricious figure and we can only guess his next move. Will he row back? How far is he willing to negotiate and offer concessions?

Read more:
There were no winners from Trump’s tariff gameshow
Trade war sparks ‘$2.2trn’ global market sell-off

These are massive unknowns, which are piled on to uncertainty about how countries will respond.

China has already retaliated and Europe has indicated it will go further.

That will compound the problems for the global economy and undoubtedly send shivers through the markets.

Much is yet to be determined, but if there’s one thing markets hate, it’s uncertainty.

Continue Reading

World

Court confirms sacking of South Korean president who declared martial law

Published

on

By

Court confirms sacking of South Korean president who declared martial law

South Korea’s constitutional court has confirmed the dismissal of President Yoon Suk Yeol, who was impeached in December after declaring martial law.

His decision to send troops onto the streets led to the country’s worst political crisis in decades.

The court ruled to uphold the impeachment saying the conservative leader “violated his duty as commander-in-chief by mobilising troops” when he declared martial law.

The president was also said to have taken actions “beyond the powers provided in the constitution”.

Demonstrators who stayed overnight near the constitutional court wait for the start of a rally calling for the president to step down. Pic: AP
Image:
Demonstrators stayed overnight near the constitutional court. Pic: AP

Supporters and opponents of the president gathered in their thousands in central Seoul as they awaited the ruling.

The 64-year-old shocked MPs, the public and international allies in early December when he declared martial law, meaning all existing laws regarding civilians were suspended in place of military law.

Read more from Sky News:
Highs and lows of Five-Year Keir
MP tells Sky News she was targeted online by Tate brothers

More on South Korea

The Constitutional Court is under heavy police security guard ahead of the announcement of the impeachment trial. Pic: AP
Image:
The court was under heavy police security guard ahead of the announcement. Pic: AP

After suddenly declaring martial law, Mr Yoon sent hundreds of soldiers and police officers to the National Assembly.

He has argued that he sought to maintain order, but some senior military and police officers sent there have told hearings and investigators that Mr Yoon ordered them to drag out politicians to prevent an assembly vote on his decree.

His presidential powers were suspended when the opposition-dominated assembly voted to impeach him on 14 December, accusing him of rebellion.

The unanimous verdict to uphold parliament’s impeachment and remove Mr Yoon from office required the support of at least six of the court’s eight justices.

South Korea must hold a national election within two months to find a new leader.

Lee Jae-myung, leader of the main liberal opposition Democratic Party, is the early favourite to become the country’s next president, according to surveys.

Continue Reading

Trending