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Stock markets have fallen sharply after signs that the US Federal Reserve could start pulling away emergency support for the world’s biggest economy later this year.

In London, the FTSE 100 was down by more than 160 points – or about 2% – in early trading following the publication of minutes of the Fed’s latest policy meeting.

Stock markets in Germany, France and Italy were also in the red while oil prices continued their six-day losing streak, with a barrel of Brent crude dipping below $67 a barrel.

The Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 27, 2019
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The US Federal Reserve published minutes of its latest policy meeting

Markets are digesting the possibility that, even as the worldwide spread of the Delta variant continues to cause alarm, the Fed is preparing to ease off its $120bn monthly programme of bond purchases.

It adds to a cocktail of worries this week which also include signs of weakness in the Chinese economy and the turmoil in Afghanistan.

Minutes of the Fed’s meeting last month showed officials felt that a threshold for the US jobs recovery that may mean starting to withdraw support “could be reached this year”.

However, consensus on a start date and pace of the withdrawal remains elusive while the Fed also reiterated the view that “the risks that rising COVID-19 cases associated with the spread of the Delta variant could cause delays in returning to work and school, and so damp the economic recovery”.

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The release of the minutes prompted a shares fall on Wall Street before the anxious sentiment spread to Asian markets and then Europe.

Vast stimulus packages from the Fed and other central banks have underpinned a recovery in stocks from the sharp sell-off seen in the early stages of the pandemic.

A Wall Street sign is pictured outside the New York Stock Exchange amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., April 16, 2021.
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Shares were also lower in New York

But as vaccines help many countries to emerge from tough lockdowns and inflation surges back, there is growing pressure on officials to start to pull back or “taper” the support.

In London it was volatile mining stocks such as Anglo American and Antofagasta – whose fortunes are closely linked to swings in global demand for the commodities that they dig up – that led the fallers.

Declines for oil giants BP and Royal Dutch Shell and banking heavyweight HSBC also dragged on the FTSE 100.

Richard Hunter, head of markets at Interactive Investor, said: “Markets took another glancing blow as the Federal Reserve minutes revealed that tapering is edging ever nearer.

“While no date has yet been confirmed, there is an increasing split within its members and it appears increasingly likely that the taper will begin before the end of the year.

“Alongside some mixed retailer results, the unrest in Afghanistan and an apparently weakening Chinese economy, this has been a week to test the mettle of investors.”

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Donald Trump on day one: Pace of change ‘like nothing you’ve seen in history’, warns campaign official

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Donald Trump on day one: Pace of change 'like nothing you've seen in history', warns campaign official

Within hours of taking office, president-elect Donald Trump plans to begin rolling out policies including large-scale deportations, according to his transition team.

Sky News partner network NBC News has spoken with more than half a dozen people familiar with the executive orders that his team plans to enact.

One campaign official said changes are expected at a pace that is “like nothing you’ve seen in history”, to signal a dramatic break from President Joe Biden’s administration.

Mr Trump is preparing on day one to overturn specific policies put in place by Mr Biden. Among the measures, reported by sources close to the transition team, are:

• The speedy and large-scale deportations of illegal immigrants

• Ending travel reimbursement for military members seeking abortion care

• Restricting transgender service members’ access to gender-affirming care

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But much of the first day is likely to focus on stopping illegal immigration – the centrepiece of Trump’s candidacy. He is expected to sign up to five executive orders aimed at dealing with that issue alone after he is sworn in on 20 January.

“There will without question be a lot of movement quickly, likely day one, on the immigration front,” a top Trump ally said.

“There will be a push to make a huge early show and assert himself to show his campaign promises were not hollow.”

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Donald Trump ally Matt Gaetz has withdrawn his name from consideration to be the next US attorney general.

But Mr Trump’s campaign pledges also could be difficult to implement.

Deporting people on the scale he wants will be a logistical challenge that could take years. Questions also remain about promised tax cuts.

Meanwhile, his pledge to end the war between Russia and Ukraine in just 24 hours would be near impossible.

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Even so, advisers based at Mr Trump’s Mar-a-Lago resort or at nearby offices in West Palm Beach, Florida, are reportedly strategising about ending the wars in Ukraine and the Middle East.

Following his decisive victory on 5 November, the president-elect has moved swiftly to build a cabinet and senior White House team.

As of Thursday, he had selected more than 30 people for senior positions in his administration, compared with just three at a similar point in his 2016 transition.

Stephen Moore, a senior economic adviser in Mr Trump’s campaign, told NBC News: “The thing to realise is Trump is no dummy.

“He knows he’s got two to three years at most to get anything done. And then he becomes a lame duck and we start talking about [the presidential election in] 2028.”

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Trump pick Matt Gaetz withdraws from consideration to be US attorney general

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Trump pick Matt Gaetz withdraws from consideration to be US attorney general

Donald Trump ally Matt Gaetz has withdrawn his name from consideration to be the next US attorney general.

Mr Gaetz, a controversial pick to be the country’s top legal official, said his selection was “unfairly becoming a distraction” to the transition of Mr Trump’s administration into the White House.

The Florida Republican had faced significant scrutiny over a federal investigation into sex trafficking allegations involving a 17-year-old girl.

He said in a post on the X social media platform: “There is no time to waste on a needlessly protracted Washington scuffle, thus I’ll be withdrawing my name from consideration to serve as attorney general. Trump’s DOJ (Department of Justice) must be in place and ready on Day 1.

“I remain fully committed to seeing that Donald Trump is the most successful president in history. I will forever be honoured that President Trump nominated me to lead the Department of Justice and I’m certain he will Save America.”

Mr Trump said in a post on his own social media site, Truth Social, that Mr Gaetz had a “wonderful future”.

“I greatly appreciate the recent efforts of Matt Gaetz in seeking approval to be Attorney General,” he wrote.

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“He was doing very well but, at the same time, did not want to be a distraction for the administration, for which he has much respect.”

Mr Gaetz previously faced a nearly three-year Justice Department investigation into sex trafficking allegations involving a 17-year-old girl, which ended in February 2023 without him facing any criminal charges.

He has always denied the allegations.

He has also been under scrutiny by the House Ethics Committee over wider allegations including sexual misconduct, illicit drug use and accepting improper gifts.

The inquiry was dropped on Wednesday 13 November when Mr Gaetz left Congress – the only forum where the committee has jurisdiction.

The Senate ethics committee is deadlocked on whether their report can be released.

Mr Gaetz’s withdrawal is a blow to Mr Trump’s push to install steadfast loyalists in his incoming administration and the first sign that he could face resistance from members of his own party.

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Dad who called 911 for help during break-in killed by Las Vegas police officer

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Dad who called 911 for help during break-in killed by Las Vegas police officer

A 43-year-old man was shot dead by police after calling 911 to report intruders had entered his home in Las Vegas.

Brandon Durham was at home with his 15-year-old daughter when he called the emergency line to report armed intruders were trying to break into his property on 12 November.

Bodycam footage shows Mr Durham struggling with a person over a knife in the moments before he was shot and killed at the scene.

“The loss of life in any type of incident like this is always tragic, and it’s something we take very seriously,” Las Vegas Metropolitan Police Assistant Sheriff Dori Koren said on Thursday.

The force is investigating the incident.

Mr Durham called 911 to report multiple people were outside shooting at his residence in Las Vegas’ Sunset Park neighbourhood, where he had been staying with his 15-year-old daughter, Sky News’ US partner network NBC reports.

It was one of multiple emergency calls reporting a shooting in the area.

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Mr Durham then said someone had managed to get into his home through the front and back doors of the property and he was locking himself in the bathroom, according to a police statement from 14 November, two days after the incident.

Officers reported to the scene at approximately 12:40am and could hear screaming from inside the residence.

One of the officers, Alexander Bookman, kicked open the front door and once inside, saw Mr Durham and another individual, later identified as 31-year-old Alejandra Boudreaux, struggling over a knife in a doorway.

Mr Bookman ordered them to drop the knife and about two seconds later, the officer fired the gun and Mr Durham appeared to be struck, the bodycam footage shows.

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Both Mr Durham and Mr Boudreaux fell to the ground and the officer fired another five shots. Roughly three seconds are believed to have gone by between the first and last shot, NBC reports.

Attempts were made to save the 43-year-old but he died at the scene.

Ms Boudreaux was taken into custody and is facing charges of home invasion with a deadly weapon; assault with a deadly weapon domestic violence; willful or wanton disregard of safety of persons resulting in death; and child abuse, neglect or endangerment.

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