Russia and Ukraine exchanged drone strikes overnight as discussions over a ceasefire proposal continued. On Thursday Vladimir Putin said he was open to the “idea” of ending the war in Ukraine but suggested that talks should “remove underlying causes” of the conflict. Donald Trump called his remarks “incomplete”; Volodymyr Zelensky, Ukraine’s president said that Mr Putin was setting so many pre-conditions that “nothing will work out at all”.
Britain’s economy unexpectedly shrank by 0.1% month on month in January. A contraction in the manufacturing sector offset a modest rise in services. The figures are a blow to Rachel Reeves, the chancellor, who is expected to introduce spending cuts in her spring statement on March 26th. Markets expect the Bank of England to cut rates twice this year to bolster the economy.
The Trump administration reportedly asked the Pentagon for “credible military options” to ensure it retains “unfettered” access to the Panama Canal. Mr Trump has repeatedly said that he will reclaim the waterway, which he claims is “ripping off” American consumers with exorbitant transit fees. Panama’s government has made several concessions to Mr Trump, but it has so far received nothing in return.
America’s S&P 500 stock index fell by 10% from its record high in February. It slipped by 1.4% on Thursday, after Mr Trump threatened a 200% tariff on alcohol from EU countries. Markets have been spooked by his erratic protectionism and the prospect of slowing economic growth.
Prosecutors in Belgium arrested several people as part of a corruption case linking Huawei, a Chinese tech firm, and the European Parliament. Lobbyists from Huawei are suspected to have bribed European MPs in exchange for favourable policies. Both the firm and the European Parliament said they would assist authorities with the investigation.
America approved a loan worth $5bn for a liquefied-natural-gas project in Mozambique, run by TotalEnergies, a French oil company. Work on the site was put on hold in 2021 following an attack by Islamist militants. America’s decision could restart the project, which would “significantly help global energy security”, according to Mozambique’s energy minister. The south-east African country has vast untapped gas reserves.
Greenland’s probable new prime minister, Jens-Frederik Nielsen, said he would reject American efforts to take over the semi-autonomous state. Mr Nielsen, whose centre-right Democrats came first in elections this week, also said that he wanted full independence from Denmark. Earlier, Mr Trump told NATO’s commander that America needs Greenland for its security, and that he would probably annex it.
Figure of the day: 74%, the proportion of Ukrainians who favour fighting even without American support, according to a recent poll. Read the full story.
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