Rishi Sunak is promising to stand up to competitors with “robust pragmatism” rather than “grand rhetoric” as he distances himself from Boris Johnson’s foreign policy approach.
The prime minister will rule out “short-termism” and “wishful thinking” when dealing with adversaries including Russia and China, as he pledges to stand up for British values.
In his first major foreign policy speech, Mr Sunak will tell international dignitaries and business leaders on Monday he will “do things differently” as he stresses the need to reinvigorate relationships in Europe.
Both Mr Johnson and Liz Truss, his short-lived successor in Downing Street, were seen as taking more combative approaches with allies such as France’s Emmanuel Macron.
Mr Sunak will stress the need to adapt to new challenges and threats as the government updates the integrated review of defence and foreign policy.
In the speech at the annual Lord Mayor’s Banquet in London’s Guildhall, Mr Sunak is expected to say: “Our adversaries and competitors plan for the long term. In the face of these challenges, short-termism or wishful thinking will not suffice.
“So we will make an evolutionary leap in our approach. This means being stronger in defending our values and the openness on which our prosperity depends.
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“It means delivering a stronger economy at home – because it is the foundation of our strength abroad.
“And it means standing up to our competitors, not with grand rhetoric, but with robust pragmatism.”
Even out of office, Mr Johnson has become involved in clashes with allies, with Berlin this week dismissing as “utter nonsense” his claim that Germany wanted Ukraine to quickly “fold” to the Russian invasion for economic reasons.
Mr Sunak has been trying to portray himself as the calmer and more sensible successor to the periods of chaos under his Conservative predecessors.
But he will maintain their firm commitment to supporting Ukraine’s resistance against Vladimir Putin‘s war after meeting Ukrainian President Volodymyr Zelenskyy in Kyiv.
Image: Ukrainian President Volodymyr Zelenskyy meets with Rishi Sunak in Kyiv. Pic: AP
Mr Sunak will vow to “stand with Ukraine for as long as it takes” and pledge to maintain or even “increase our military aid next year”.
“And we will provide new support for air defence, to protect the Ukrainian people and the critical infrastructure that they rely on.
Mr Sunak has been seeking to work more closely with France to tackle migrant crossings of the Channel in small boats, and with Albania to get a returns agreement for failed asylum seekers.
However, there are concerns that efforts to broker a deal with Albania have been made more difficult by Home Secretary Suella Braverman.
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.
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”.
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.
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.
While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.
All three of the US’s major markets opened to sharp losses on Thursday morning.
Image: The S&P 500 is set for its worst day of trading since the COVID-19 pandemic. File pic: AP
By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.
Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.
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Worst one-day losses since COVID
As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.
The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.
It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.
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5:07
The latest numbers on tariffs
‘Trust in President Trump’
White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.
“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”
Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”
He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.
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3:27
How is the world reacting to Trump’s tariffs?
Economist warns of ‘spiral of doom’
The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.
He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.
Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.
He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”
It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.
Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.
Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.
It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.
He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”