AFP

Defiant Putin says Russia 'doing everything right' in Ukraine

Russian President Vladimir Putin said on Friday that Moscow was conducting its nearly eight-month invasion of Ukraine correctly, despite his forces’ early failure to topple Kyiv and a string of recent embarrassing battlefield defeats.

But his comments came hours after Kremlin-installed officials in Ukraine’s southern region of Kherson urged residents to leave, pointing to nearing Ukrainian artillery and as Kyiv announced its forces were pushing closer towards the region’s main city.

And on Thursday Moscow also hinted at the potentially wide extent of the damage dealt to the Crimea bridge, saying it could take many months to complete repairs after a recent blast rocked the key supply link between Russia and the annexed Crimean peninsula.

“What is happening today is not pleasant. But all the same, (if Russia hadn’t attacked on February) we would have been in the same situation, only the conditions would have been worse for us,” Putin told reporters after a summit in the capital of Kazakhstan.

“So we’re doing everything right,” he insisted.

Nearly eight months into Moscow’s war, Ukraine’s emboldened military, which is clawing back territory in the east as well as in the south, was celebrating Defender’s Day. Meanwhile a United Nations envoy alleged Russian forces were using rape as a weapon. 

Putin described the explosion on the Crimea bridge on Saturday as a “terrorist” act and in retaliation battered Ukraine for two days with missiles that hit energy facilities and caused blackouts and disruption to water supplies.

Speaking to reporters on Thursday, he said that “for now” he saw no need to continue the massive salvo of missiles that hit cities across Ukraine — several far from the front line — and left at least 20 civilians dead. He explained the Russian military had other objectives.

– ‘The world is with us’ –

“Our aim is not to destory Ukraine,” Putin added.

The Crimea bridge is logistically crucial for Moscow. It is a vital transport link for moving military equipment to Russian soldiers fighting in Ukraine.

But it is also symbolically important to Putin, who inaugurated the bridge in 2018 several years after he annexed the peninsula from Ukraine to a chorus of Western condemnation. 

The missile barrage on Monday and Tuesday, he said, was direct retaliation for the blast.

Russia’s cabinet, in a decree signed by Prime Minister Mikhail Mishustin, ordered the company tasked with the “design and restoration of destroyed elements of … the Crimean Bridge” to complete the work by July 1, 2023.

That date gives an indication of the extent of the damage caused by the explosion at the bridge because Russian officials have otherwise been circumspect about the lasting impact of the incident.

They did however say hours after the blast — which they blamed on Ukraine special forces — that both road and rail traffic had been restored.

In Kyiv on Friday, President Volodymyr Zelensky vowed, during events marking the country’s first Defender’s Day celebrations, that Ukrainian troops would be victorious over Russian forces

He also laid a wreath at a memorial for soldiers killed since 2014, when Kremlin-backed separatists wrested control of parts of two eastern regions. In February this year, the separatists appealed for Russia to intervene.

“The world is with us, more than ever. This makes us stronger than ever in history,” Zelensky added in reference to unprecedented Western aid.

Ukrainian forces mounted a counter-offensive in the south towards the end of the summer and have been pushing closer and closer to the main city in the Kherson region, also called Kherson.

On Friday, the Moscow-installed authorities in the region renewed a call for residents to temporarily leave, with reports that Ukrainian forces had been gaining ground near Kherson.

– Advance on Kherson –

“The bombardments of the Kherson region are dangerous for civilians,” Kirill Stremousov, the deputy head of the pro-Russian regional administration said. He urged residents to take a trip for “rest and recreation” elsewhere.

But in the east, pro-Russian forces said they were closing in on the industrial city of Bakhmut after they reported the capture of two villages on the city’s outskirts this week.

An official of the so-called Lugansk People’s Republic, a pro-Kremlin breakaway region in east Ukraine, said “active hostilities were underway” within Bakhmut.

“Our forces are confidently marching and liberating this settlement,” the official, Andriy Marochko, was quoted as saying by Russia’s state-run TASS news agency. 

Also this week, UN envoy Pramila Patten told AFP in an interview that rapes and sexual assaults attributed to Moscow’s forces in Ukraine were part of a Russian “military strategy” and a “deliberate tactic to dehumanise the victims”. 

“When you hear women testify about Russian soldiers equipped with Viagra, it’s clearly a military strategy,” the UN special representative on sexual violence said on Thursday. “It is clearly a deliberate tactic to dehumanise the victims.”

Pound slides amid UK political drama, stocks soar

The pound fell Friday as under-fire British Prime Minister Liz Truss sacked her finance minister and made a dramatic policy U-turn, while equities rallied for a second day despite surging US inflation.

The yen held around three-decade dollar lows as rampant US consumer prices cemented expectations of more hefty Federal Reserve rate hikes.

Truss sacked Kwasi Kwarteng as finance minister as pressure mounted on her government following last month’s big spending, tax-slashing budget, which spooked markets.

The September 23 budget sent the pound tumbling to a record dollar low near parity with the greenback and bond yields surged, before stabilising thanks to interventions by the Bank of England. 

Sterling sank 1.2 percent to $1.1188 after Prime Minister Liz Truss dismissed Kwarteng. It reduced those losses as Truss appointed Jeremy Hunt as her new finance minister.

“The soap opera that is UK politics continues to dominate FX markets Friday,” said Stephen Innes, managing partner at SPI Asset Management.

Truss later announced a dramatic policy U-turn, stating the “need to act now to reassure the markets”, abandoning plans to eliminate an increase in corporation tax.

UK 10-year government bond yields fell further following the announcement, despite the Bank of England having insisted the costly market interventions would end Friday.

London’s FTSE 100 was 1.6 percent higher in afternoon trading. 

– ‘Astonishing rebound’ –

Stock markets continued to push higher Friday after rising on Thursday despite data showing strong inflationary pressures in the United States.

“Markets staged an astonishing rebound despite a hotter-than-expected inflation report in the United States,” said Interactive Investor analyst Richard Hunter on the broad-based gains.

“The reasons… were not immediately clear, although traders pointed to a technical rebound as investors unwound defensive positions which had been in place ahead of the inflation report.”

US CPI inflation data showed prices rose last month at a faster clip than expected, despite this year’s series of Fed interest rate hikes, which have fanned fears of a global recession.

The month-on-month reading came in double estimates, while core inflation — which strips out volatile energy and food prices — was also elevated.

The figures sparked a sharp plunge on Wall Street but the selling quickly reversed, and all three main indices finished the day with gains of more than two percent.

Wall Street opened higher on Friday as a number of top banks kicked off earnings season, JPMorgan Chase, Citigroup, Wells Fargo and U.S. Bancorp all beating analysts’ expectations. 

“None of those banks missed consensus earnings estimates, like investment bank Morgan Stanley did, yet their reports were laced with increased provisions for credit losses,” noted market analyst Patrick O’Hare at Briefing.com.

US retail sales came in flat in September, below analyst expectations of a 0.2 percent rise.

“The key takeaway from the report is that it is not adjusted for inflation, so the lackluster numbers for September suggest consumers were pulling back on spending activity in the face of high inflation,” O’Hare said.

– Key figures around 1330 GMT –

London – FTSE 100: UP 1.6 percent at 6,956.37 points

Frankfurt – DAX: UP 2.1 percent at 12,616.25

Paris – CAC 40: UP 2.4 percent at 6,021.88

EURO STOXX 50: UP 2.3 percent at 3,438.20

New York – Dow: UP 0.6 percent at 30,207.67

Tokyo – Nikkei 225: UP 3.3 percent at 27,090.76 (close)

Hong Kong – Hang Seng Index: UP 1.2 percent at 16,587.69 (close)

Shanghai – Composite: UP 1.8 percent at 3,071.99 (close)

Pound/dollar: DOWN at $1.1232 from $1.1326 Thursday

Dollar/yen: UP at 147.84 yen from 147.12 yen

Euro/dollar: DOWN at $0.9751 from $0.9776

Euro/pound: DOWN at 86.81 pence from 88.29 pence

Brent North Sea crude: DOWN 1.6 percent at $93.02 per barrel

West Texas Intermediate: DOWN 1.9 percent at $87.46 per barrel

burs-rl/jj

Pound slides amid UK political drama, stocks soar

The pound fell Friday as under-fire British Prime Minister Liz Truss sacked her finance minister and made a dramatic policy U-turn, while equities rallied for a second day despite surging US inflation.

The yen held around three-decade dollar lows as rampant US consumer prices cemented expectations of more hefty Federal Reserve rate hikes.

Truss sacked Kwasi Kwarteng as finance minister as pressure mounted on her government following last month’s big spending, tax-slashing budget, which spooked markets.

The September 23 budget sent the pound tumbling to a record dollar low near parity with the greenback and bond yields surged, before stabilising thanks to interventions by the Bank of England. 

Sterling sank 1.2 percent to $1.1188 after Prime Minister Liz Truss dismissed Kwarteng. It reduced those losses as Truss appointed Jeremy Hunt as her new finance minister.

“The soap opera that is UK politics continues to dominate FX markets Friday,” said Stephen Innes, managing partner at SPI Asset Management.

Truss later announced a dramatic policy U-turn, stating the “need to act now to reassure the markets”, abandoning plans to eliminate an increase in corporation tax.

UK 10-year government bond yields fell further following the announcement, despite the Bank of England having insisted the costly market interventions would end Friday.

London’s FTSE 100 was 1.6 percent higher in afternoon trading. 

– ‘Astonishing rebound’ –

Stock markets continued to push higher Friday after rising on Thursday despite data showing strong inflationary pressures in the United States.

“Markets staged an astonishing rebound despite a hotter-than-expected inflation report in the United States,” said Interactive Investor analyst Richard Hunter on the broad-based gains.

“The reasons… were not immediately clear, although traders pointed to a technical rebound as investors unwound defensive positions which had been in place ahead of the inflation report.”

US CPI inflation data showed prices rose last month at a faster clip than expected, despite this year’s series of Fed interest rate hikes, which have fanned fears of a global recession.

The month-on-month reading came in double estimates, while core inflation — which strips out volatile energy and food prices — was also elevated.

The figures sparked a sharp plunge on Wall Street but the selling quickly reversed, and all three main indices finished the day with gains of more than two percent.

Wall Street opened higher on Friday as a number of top banks kicked off earnings season, JPMorgan Chase, Citigroup, Wells Fargo and U.S. Bancorp all beating analysts’ expectations. 

“None of those banks missed consensus earnings estimates, like investment bank Morgan Stanley did, yet their reports were laced with increased provisions for credit losses,” noted market analyst Patrick O’Hare at Briefing.com.

US retail sales came in flat in September, below analyst expectations of a 0.2 percent rise.

“The key takeaway from the report is that it is not adjusted for inflation, so the lackluster numbers for September suggest consumers were pulling back on spending activity in the face of high inflation,” O’Hare said.

– Key figures around 1330 GMT –

London – FTSE 100: UP 1.6 percent at 6,956.37 points

Frankfurt – DAX: UP 2.1 percent at 12,616.25

Paris – CAC 40: UP 2.4 percent at 6,021.88

EURO STOXX 50: UP 2.3 percent at 3,438.20

New York – Dow: UP 0.6 percent at 30,207.67

Tokyo – Nikkei 225: UP 3.3 percent at 27,090.76 (close)

Hong Kong – Hang Seng Index: UP 1.2 percent at 16,587.69 (close)

Shanghai – Composite: UP 1.8 percent at 3,071.99 (close)

Pound/dollar: DOWN at $1.1232 from $1.1326 Thursday

Dollar/yen: UP at 147.84 yen from 147.12 yen

Euro/dollar: DOWN at $0.9751 from $0.9776

Euro/pound: DOWN at 86.81 pence from 88.29 pence

Brent North Sea crude: DOWN 1.6 percent at $93.02 per barrel

West Texas Intermediate: DOWN 1.9 percent at $87.46 per barrel

burs-rl/jj

Climate activists throw soup over Van Gogh's 'Sunflowers' in London

Environmental protesters threw tomato soup over Vincent van Gogh’s “Sunflowers” painting at the London’s National Gallery on Friday, in the latest “direct-action” stunt targeting works of art.

The gallery said the protesters caused “minor damage to the frame but the painting is unharmed”.

Protest group Just Stop Oil aims to end UK government approval for exploring, developing and producing fossil fuels, and has mounted a series of high-profile protests.

London’s Metropolitan Police said its officers arrested two protesters from the group for criminal damage and aggravated trespass after they “threw a substance over a painting” at the gallery on Trafalgar Square and glued themselves to a wall just after 11 am (1000 GMT).

Police said they had unglued the protesters and taken them to a central London police station.

The National Gallery said the two protesters “appeared to glue themselves to the wall adjacent to Van Gogh’s ‘Sunflowers'” and threw a “red substance” at the painting. The room was cleared of visitors and police were called, it added.

A video posted on Twitter by the Guardian newspaper’s environment correspondent Damien Gayle and retweeted by the eco-activism group shows two women wearing T-shirts bearing the slogan “Just Stop Oil” lobbing cans of soup at the iconic painting.

After glueing themselves to the wall, one of the activists shouts: “What is worth more, art or life?”

“Are you more concerned about the protection of a painting or the protection of our planet and people?” she asks.

In the video, someone can be heard yelling “oh my God” as the soup hits the canvas and another person shouts “Security!” while soup drips from the frame onto the floor.

Just Stop Oil said in a statement its activists threw two cans of Heinz Tomato soup over the painting to demand the UK government halt all new oil and gas projects.

It later tweeted that the protest’s message was “Choose life over art”.

“Human creativity and brilliance is on show in this gallery, yet our heritage is being destroyed by our government’s failure to act on the climate and cost of living crisis,” the group said.

The activist group said the painting has an estimated value of $84.2 million.

The National Gallery says on its website the signed painting from 1888 was acquired by the gallery in 1924. 

Van Gogh created seven versions of “Sunflowers” in total and five are on public display in museums and galleries across the world. 

One of those — the Van Gogh Museum in Amsterdam — said it was keeping “a close eye on developments” that might affect its own security measures.

Well-known Dutch ‘art detective’ Arthur Brand, dubbed the “Indiana Jones of the Art World” for recovering famous artworks, condemned the attack.

“There are hundreds of ways to achieve attention for the climate problems. This should not be one of them,” he said.

– ‘Cross a line’ –

The attack came a week after British Home Secretary Suella Braverman issued a threat to direct-action climate protesters, who she said were using “guerrilla tactics” to bring “chaos and misery” to the public.

“Whether you’re Just Stop Oil, Insulate Britain or Extinction Rebellion, you cross a line when you break the law — and that’s why we’ll keep putting you behind bars,” she said.

Just Stop Oil has previously targeted several other famous paintings with glue attacks.

In June, two activists glued their hands to the frame of van Gogh’s painting “Peach Trees in Blossom” at the Courtauld Gallery in London.

In July, supporters glued their hands to the frame of British painter John Constable’s “The Hay Wain” at the National Gallery.

They first taped over the canvas with a “reimagined version” of the bucolic scene, showing the landscape covered in pollution, dotted with wildfires and overflown by aircraft. 

In the same month, they glued themselves to a full-scale copy of Leonardo Da Vinci’s “The Last Supper” at the Royal Academy in London.

In recent days, Just Stop Oil has held multiple protests blocking major roads.

Met Police Commissioner Mark Rowley said of the protests that he was “frustrated so many officers are being taken away from tackling issues that matter most to communities”.

burs-am/har/gil

'Shelf-life of a lettuce': Truss's nightmare on Downing Street

British Prime Minister Liz Truss has had the shortest of political honeymoons since taking over from Boris Johnson.

Taking out the 10 days of mourning for Queen Elizabeth II, Truss had only a week in control of events before her political programme imploded, leading to the sacking of her finance minister.

“That is the shelf-life of a lettuce,” The Economist magazine commented this week.

– September 5 –

Truss wins a vote by Conservative party members by 81,326, against 60,399 for Johnson’s former finance minister Rishi Sunak. 

As the new leader of the largest party in parliament, that makes her prime minister — with support from less than 0.2 percent of the UK electorate and only a minority of her own MPs.

The next day, she is confirmed as prime minister by the queen. 

Despite her weak mandate, Truss purges all Sunak supporters from her new cabinet, and installs the like-minded Kwasi Kwarteng as chancellor of the exchequer.

– September 8 –

Truss unveils a costly scheme to cap household energy bills, in response to Russia’s invasion of Ukraine. 

But the dramatic announcement is eclipsed by the queen’s death, which suspends all government business for 10 days.

– September 23 –

Kwarteng announces a “mini-budget” which details the price of the energy scheme -– £60 billion ($67 billion) over the next six months. 

But there are no measures to raise funds. 

Instead, he announces massive new borrowing to pay for sweeping tax cuts — including for top-earners — along with scrapping a cap on bankers’ bonuses.

The announcement immediately draws political fire for being unfair. But the markets reserve the most stinging verdict in their response to the new borrowing — driving the pound down towards parity against the dollar.

Two days later, a Sunday, Kwarteng vows “more to come” on tax cuts. The next day, when markets reopen, the pound plumbs new depths. 

The budget is dubbed “Kami-Kwasi” by media, which begin reporting tensions between Kwarteng and Truss, and deep disquiet among Tory MPs including cabinet ministers.

– September 28 – 

With bond market turmoil placing British pension funds in jeopardy, the Bank of England announces a two-week programme to buy long-term UK bonds, capped initially at £65 billion, “to restore orderly market conditions”. 

– September 29 –

Pollsters YouGov report a 33-point lead for the main opposition Labour party over the Tories –- its biggest margin since the heyday of former Labour prime minister Tony Blair in the late 1990s.

Other polls also point to electoral disaster for the Conservatives. But hours before his keynote speech at the party’s annual conference at the start of October, Kwarteng vows to “stay the course”.

– October 3 –

Kwarteng and Truss are forced into a humiliating U-turn as civil war engulfs the party conference, scrapping the planned cut in the top rate of income tax following hurried late-night talks.

In her own conference speech on October 5, Truss vows to pursue her “growth, growth, growth” agenda but fails to reassure party rebels and nervous markets. 

UK government bond yields keep rising, inflicting more pain for UK households as mortgage rates surge.

– October 10 – 

In another volte-face, Kwarteng reveals he will publish a medium-term fiscal plan alongside independent budget forecasts on October 31 –- Halloween –- rather than in late November as originally planned. 

But on October 12, Truss rules out any cuts to public spending, even as she vows no further U-turns on the remaining tax cuts, compounding perceptions of a government in chaos.

– October 14 – 

With markets still rattled and pressure piling on Truss, the prime minister fires Kwarteng after just 38 days in the role, further stoking rumours that her party was about to attempt her own ouster.

Kwarteng defends the economic programme in a letter to Truss, insisting it was needed because “the status quo was simply not an option”.

In his place, she appoints former foreign minister Jeremy Hunt.

Denmark paves the way for 'loss and damage' climate aid

It may seem a drop in the ocean, but the $13 million Denmark has earmarked as aid for climate change-related “loss and damages” set an important precedent.

It might just end up helping open a fresh flow of aid to the world’s most vulnerable countries.

Danish Development Cooperation Minister Flemming Moller told the UN General Assembly last month the money was for “climate adaptation and concrete activities to avert, minimise and address climate-induced loss and damage”.

It would mainly help island states and countries in the Sahel region of North Africa, he added.

Denmark’s gesture, however modest, represents an important contribution to the debate over the still-contentious notion of “loss and damages”.

“In some ways, Denmark is a pioneer,” said Lily Salloum Lindegaard, who specialises in the politics of climate change at the Danish Institute for International Studies.

Only Scotland and Belgium’s Walloon government have made such commitments previously, she added — and on a modest scale.

“But Denmark’s commitment provides further progress if we are to address the extensive losses and damages already experienced due to climate change,” Lindegaard told AFP.

“In comparison to the needs on the ground, the Danish commitment is quite small” given the scale of the problem.

But, she added: “The Danish commitment is more significant in political terms, as developed countries have long shied away from finance to losses and damages.”

– Pushback –

As the consequences of global warming — measured in lives lost and economic damages — have piled up, calls for loss and damage as a separate category have mounted.

Developing nations see this kind of funding as compensation — a form of reparations — above and beyond “adaptation” support to build resilience against future impacts.

Rich nations, while acknowledging the need that developing nations have for aid, remain wary of setting a legal precedent that might suggest liability for any and all future damages.

“Climate finance to date has basically only gone to preventing climate change impacts and related losses and damages through mitigation and adaptation efforts,” said Lindegaard.

And not every country is willing to go further, she added.

“There has already been some pushback from the US,” said Lindegaard.

“However, the science of loss and damage is already quite clear and continues to develop quickly, which makes it increasingly difficult for countries to sidestep the issue.”

– ‘We are committed’ –

As climate change amplifies the devastation of extreme weather events, pressure is mounting on developed nations to do more to help.

The world’s most vulnerable countries in the Global South are least responsible for causing the problem — the G20 group of major economies account for 80 percent of greenhouse gas emissions today, and even more historically. 

Pakistan — a nation of 220 million that has seen record monsoon rains this year linked to climate chang — emits less than one percent.

Denmark’s announcement at the UN Assembly General sent a clear message, Danish Development Minister Flemming Moller Mortensen told AFP.

“We are committed to helping the people and communities that are suffering from the consequences of climate change. 

“These are the people that are losing their houses to floods, the farmers that are losing their harvest because of drought”.

– Start of a dialogue –

At last year’s COP26, developing countries did not get the commitments they were looking for on targeted financial commitments.

Rich countries agreed only to begin a two-year dialogue on the issue running through 2024.

Denmark spends some $2.9 billion annually on development aid according to the OECD, equivalent to about 0.7 percent of gross national income.

It has set a target of spending at least 60 percent of its aid on climate adaptation, and is the first country to specifically allocate funds to redress its impacts.

But even Denmark’s commitment is short on details.

Its funds will be distributed between NGOs and a strategic initiative with details forthcoming, said the foreign ministry.

Their announcement was nevertheless widely seen as setting an important precedent.

It remains to be seen whether other countries will follow suit.

UK's Truss fires finance minister as economic plan in tatters

British Prime Minister Liz Truss on Friday dismissed her finance minister, forcing Kwasi Kwarteng to carry the can for turmoil sparked by her right-wing economic platform as restive Conservatives plotted her own demise.

The chancellor of the exchequer was dismissed in person by Truss after he rushed back early from international meetings in Washington, and she was due to hold her first Downing Street news conference at 2:30 pm (1330 GMT).

There was no immediate announcement of his successor, who will become Britain’s fourth finance minister this year, and the pound slumped anew on currency markets.

“You have asked me to stand aside as your chancellor. I have accepted,” Kwarteng wrote in a letter to Truss, who only succeeded Boris Johnson on September 6.

But he insisted that their economic programme was needed because “the status quo was simply not an option”.

In reply, Truss wrote that Kwarteng had “put the national interest first”.

“I know that you will continue to support the mission that we share to deliver a low-tax, high-wage, high-growth economy that can transform the prosperity of our country for generations to come,” she said.

Financial upheaval sparked by the new government’s September 23 plan to slash taxes — financed via billions in more borrowing — has subsided somewhat since the Bank of England intervened in bond markets.

But the central bank was adamant it would end its bond-buying spree on Friday, and market analysts said only a bigger climbdown by Truss following Kwarteng’s disastrous budget announcement last month would avert fresh panic.

Tony Travers, from the London School of Economics, told AFP Kwarteng had been made “the fall guy for the government’s mistakes” — but that the sacking had not taken the pressure off Truss or calmed the Tories.

“It’s very hard to see them coming back from this” by the next election, he added. 

– ‘Not going anywhere’ –

Kwarteng was due to have stayed in Washington this weekend to conclude annual meetings of the International Monetary Fund and World Bank, after earned a rebuke from IMF chief Kristalina Georgieva on the need for “coherent and consistent” policies.

Speaking in Washington on Thursday, Kwarteng had insisted that his job was safe. “I’m not going anywhere,” he said.

But UK broadcasters showed live footage of Kwarteng’s British Airways plane landing at Heathrow airport a day early, after Truss held hurried meetings with her own financial advisors on Thursday in his absence.

Speculation was rife that Truss would row back on planned changes to corporation tax, having already changed her mind about cutting income tax for the highest earners.

The promised tax cuts were the centrepiece of Truss’s successful pitch to Tory party members that she,, rather than rival Rishi Sunak, was the best candidate to replace Johnson. 

That programme now lies in tatters, and Truss’s judgement is in question more than ever, after Sunak’s warnings were entirely vindicated: higher borrowing to pay for tax cuts served only to terrify the markets and drive up borrowing costs for millions of Britons.

A new YouGov poll for The Times newspaper said 43 percent of Conservative voters want a new prime minister in Downing Street.

Other polls show a mammoth lead up opening up for the main opposition Labour party, threatening electoral meltdown for the Tories. 

– ‘Romcom-worthy dash’ –

Junior minister Greg Hands said “I don’t recognise” multiple reports that senior Tory MPs were plotting to unseat Truss by installing a new leadership team under Sunak and Penny Mordaunt, who also ran to succeed Johnson.

Pressed on whether Truss will still be in 10 Downing Street in a week, Hands told ITV: “Oh definitely.”

The chancellor’s September 23 budget sparked market chaos because of fears it would drive up state debt. 

The pound tumbled to a record dollar low near parity with the greenback and bond yields surged, before stabilising thanks to interventions by the Bank of England (BoE). 

But with that costly BoE crutch ending on Friday, markets had already priced in a fresh about-turn by the government, leaving Downing Street with no room for manoeuvre.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said before Kwarteng’s sacking that his “romcom-worthy dash through the airport” showed the government waking up to financial reality.

But for many pundits, the self-inflicted damage risks proving terminal for Truss and her hard-right platform.

Another new poll by Ipsos showed Truss’s net satisfaction score at minus 51, lower than any of her predecessors this century, while Kwarteng left office with historically low ratings for a chancellor.

Royal Mail plans up to 10,000 job cuts

British postal operator Royal Mail on Friday unveiled plans to axe up to 10,000 jobs, blaming the move partly on ongoing staff strikes that contributed to a first-half loss.

The announcement came one day after staff staged the first of 19 walkouts targeting the critical run-up to Christmas, joining several other UK sectors carrying out industrial action as sky-high inflation erodes the value of wages.

Royal Mail’s job cuts follow “the impact of industrial action, delays in delivering agreed productivity improvements and lower parcel volumes”, its parent group said in a results statement, sending shares tanking.

“Our operational full-time employee workforce will need to reduce by an estimated 10,000 by the end of August 2023,” International Distributions Services added alongside news it had plunged into the red.

– ‘Gross mismanagement’ –

The planned job losses comprise almost seven percent of Royal Mail’s total workforce of 150,000 people.

The restructuring includes up to 6,000 compulsory redundancies.

Dave Ward, general secretary of the CWU union that has organised Royal Mail walkouts, said the job cuts were “the result of gross mismanagement “.

He added there had been “a failed business agenda of ending daily deliveries, a wholesale levelling-down of the terms, pay and conditions of postal workers, and turning Royal Mail into a gig economy-style parcel courier”.

The group suffered an operating loss of £219 million ($245 million) in the six months to the end of September, it added Friday.

That contrasted sharply with profit of £235 million a year earlier, when it was buoyed by strong parcel demand during the pandemic.

“It now expects full-year losses to hit £350 million, which is the figure it had hoped to make in cost savings before the strikes erupted,” noted Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

The threat of further strike action beyond Christmas “means that no certainty can be given over the full year outlook for the group as a whole”, she added.

Royal Mail said full-year operating losses could increase to £450 million should “customers move volume away for longer periods” as a result of strike action.

The share price of International Distributions Services was down more than eight percent at 192.65 pence in afternoon London trading, having recovered from even sharper losses following Friday’s news.

– Royal makeover –

Set up more than 500 years ago, Royal Mail has experienced some of its most turbulent times during the past decade, particularly following its controversial privatisation in 2013.

The firm’s core letters business has been ravaged as consumers increasingly go online to communicate.

However, it enjoyed booming demand for parcel deliveries during Britain’s Covid lockdowns — and played a vital role delivering test kits and protective clothing in the pandemic.

Yet the Covid-era boom in parcels has tailed off.

Following the death of Queen Elizabeth II last month, all new Royal Mail postboxes will no longer feature the EIIR royal cipher.

The cipher stood for Elizabeth II Regina (“queen” in Latin).

Instead they will be imprinted with CIIIR, representing Charles III Rex (“king” in Latin). A crown will feature above both letters.

New British stamps will also feature an image of his head.

Eco-activists throw soup over Van Gogh's 'Sunflowers' in London

Environmental protesters on Friday threw tomato soup over Vincent van Gogh’s “Sunflowers” painting at the London’s National Gallery, in the latest “direct-action” stunt targeting works of art.

The gallery said the protesters caused “minor damage to the frame but the painting is unharmed”.

Just Stop Oil aims to end UK government involvement in oil and gas and has mounted a series of high-profile protests.

London’s Metropolitan Police said its officers arrested two protesters from the group for criminal damage and aggravated trespass after they “threw a substance over a painting” at the gallery on Trafalgar Square and glued themselves to a wall just after 11 am (1000 GMT).

Police said they had unglued the protesters and taken them to a central London police station.

The National Gallery said the two protesters “appeared to glue themselves to the wall adjacent to Van Gogh’s ‘Sunflowers'” and threw a “red substance” at the painting. The room was cleared of visitors and police called, it added.

A video posted on Twitter by the Guardian newspaper’s environment correspondent Damien Gayle and retweeted by the eco-activism group shows two women wearing T-shirts with the slogan “Just Stop Oil” lobbing cans of soup at the iconic painting.

After glueing themselves to the wall, one of the activists shouts: “What is worth more, art or life?”

“Are you more concerned about the protection of a painting or the protection of our planet and people?” she asks.

In the video, someone can be heard yelling “oh my God” as the soup hits the canvas, and another person shouts “Security?” while soup drips from the frame onto the floor.

Just Stop Oil said in a statement its activists threw two cans of Heinz Tomato soup over the painting to demand the UK government halt all new oil and gas projects.

It later tweeted that the protest’s message was “Choose life over art”.

“Human creativity and brilliance is on show in this gallery, yet our heritage is being destroyed by our Government’s failure to act on the climate and cost of living crisis,” the group said.

The activist group said the painting has an estimated value of $84.2 million.

The National Gallery on its website says the signed painting from 1888 was acquired by the gallery in 1924. 

It is one of five versions of “Sunflowers” on public display in museums and galleries across the world. Van Gogh created seven in total.

– ‘Cross a line’ –

The gallery called the works “among Van Gogh’s most iconic and best-loved works”.

The attack came a week after Britain’s Home Secretary Suella Braverman issued a threat to direct-action protesters who she said were using “guerrilla tactics” to bring “chaos and misery” to the public.

“Whether you’re Just Stop Oil, Insulate Britain or Extinction Rebellion, you cross a line when you break the law — and that’s why we’ll keep putting you behind bars,” she said.

Just Stop Oil has previously targeted several other famous paintings with glue attacks.

In June, two activists glued their hands to the frame of van Gogh’s painting “Peach Trees in Blossom” at the Courtauld Gallery in London.

In July, supporters glued their hands to the frame of British painter John Constable’s “The Hay Wain” at the National Gallery.

They first taped over the canvas with a “reimagined version” of the bucolic scene, showing the landscape covered in pollution, dotted with wildfires and overflown by aircraft. 

In the same month, they glued themselves to a full-scale copy of Leonardo Da Vinci’s “The Last Supper” at the Royal Academy in London.

In recent days, Just Stop Oil has held multiple protests blocking highways.

Met Police Commissioner Mark Rowley said of the protests that he was “frustrated so many officers are being taken away from tackling issues that matter most to communities.”

Sweden parties agree to form govt with far-right backing

Three Swedish right-wing parties will build a minority government with the unprecedented backing of the far-right Sweden Democrats, the parties said Friday, unveiling plans for new nuclear reactors and a crime and immigration crackdown.

The incoming government will be made up of the conservative Moderates, Christian Democrats and Liberals, with the far-right Sweden Democrats remaining outside the coalition but providing key support in parliament.

The four presented a 62-page roadmap Friday for their cooperation, outlining measures to address what they defined as the biggest challenges facing Sweden: rising crime, immigration, energy, healthcare, education, the economy and the climate.

“All this in what is possibly the most dangerous time for Sweden since World War II,” Moderates leader Ulf Kristesson told reporters in a reference to the war raging in Ukraine which prompted Sweden’s historic NATO membership application.

Parliament will vote on Kristersson as the new prime minister on Monday and the future government is expected to take office on Tuesday, just over a month after the right-wing won a narrow victory in a general election that ousted the Social Democrats after eight years in power.

The anti-immigration and nationalist Sweden Democrats, once shunned as pariahs on Sweden’s political scene, were the big winners of the September 11 vote.

They emerged as the country’s second-largest party with a record 20.5 percent of votes, behind outgoing prime minister Magdalena Andersson’s Social Democrats, which have dominated Swedish politics since the 1930s.

– Concessions to far-right –

While far-right leader Jimmie Akesson said he “would have preferred to sit in government”, he stressed that the most important thing was that his party has influence over policy and that “the change of government represent a paradigm shift”.

“We are going to deliver policy, especially in those areas our voters think are extra important, and crime policy is one such area,” he told reporters.

While the quartet presented a united front on Friday, they have traditionally been divided on a number of key policy areas and major concessions were made in the agreement, primarily to meet the far-right’s demands.

As Sweden struggles to contain soaring gang shootings, the roadmap calls for body searches in some disadvantaged areas, harsher sentences for repeat offenders, double sentences for certain crimes and anonymous witnesses. These were all major concessions by the small Liberal party.

It also calls for major cuts to generous refugee policies in Sweden, a country of 10.5 million that has welcomed around half a million asylum seekers in the past decade.

The incoming government said it aims to reduce the number of quota refugees from 6,400 last year to 900 per year during its four-year mandate, and introduce incentives to encourage immigrants to return home.

It will also probe the possibility of keeping asylum seekers in transit centres during their application process, as well as ditch Sweden’s development aid target of one percent of GDP and introduce a national ban on begging.

In another measure bearing the stamp of the far-right, the parties also agreed to examine the possibility of “expelling foreigners for misconduct”.

“Anyone in Sweden enjoying Swedish hospitality has an obligation to respect fundamental Swedish values and not disrespect the local population by their actions”, the document said.

It gave failure to follow regulations or having ties to criminal organisations as an example of grounds for removal.

The four parties also agreed to not reduce unemployment benefits, a major concession to the far-right by the Moderates.

– More nuclear –

Meanwhile, the future government also announced plans to build new nuclear reactors to meet the country’s rising electricity needs.

“The goal going forward is electrification and the way there is nuclear power,” the leader of the Christian Democrats Ebba Busch told reporters.

Sweden has in recent years shut down six of its 12 reactors and the remaining ones, at three nuclear power plants, generate about 30 percent of the electricity used in the country today.

But it has struggled to find viable alternative energy sources to replace nuclear power, with renewable energy not yet sufficient to fully meet its needs.

The outgoing Social Democratic government, in power for the past eight years, has traditionally been opposed to the construction of new reactors but acknowledged earlier this year that nuclear energy would be crucial for the foreseeable future.

In June, Swedish energy group Vattenfall said it was examining the possibility of building at least two small modular nuclear reactors.

Close Bitnami banner
Bitnami