Donald Trump called talks between Vladimir Putin and Steve Witkoff, America’s envoy to the Middle East, “good and productive”. Mr Witkoff met Russia’s president in Moscow on Thursday to discuss a ceasefire proposal for the war in Ukraine. Earlier a Kremlin spokesperson said Russia had a “number of questions” about the idea of a 30-day truce. Ukraine’s president, Volodymyr Zelensky, said Russia was deliberately slowing down negotiations.
In a joint statement, G7 countries, including America, offered “unwavering support” to Ukraine, and threatened Russia with more sanctions if “a ceasefire is not agreed”. After a meeting in Quebec, Canada’s foreign minister said that all G7 foreign ministers “agree” with the American proposal for a ceasefire. But the group emphasised the need for assurances that would guard against Russian aggression.
Gold prices surged past $3,000 per troy ounce for the first time, driven by fears that Mr Trump’s tariffs will slow global growth. The metal has risen by 14% this year as investors seek a safe haven. Purchases by central banks and expectations that the Federal Reserve will cut rates have also fuelled demand (lower rates make non-yielding assets like gold more attractive).
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.
Mark Carney was sworn in as Canada’s prime minister. On March 9th Liberal Party members chose him to succeed Justin Trudeau as the party’s leader. Mr Carney previously ran central banks in England and Canada. His main challenges will be to defend Canada from Donald Trump’s economic onslaught and to prepare the Liberals for an election that must be held this year.
Friedrich Merz, Germany’s incoming chancellor, reportedly agreed on a spending plan with the Green Party. Earlier this month he proposed relaxing Germany’s constitutional “debt brake” to boost spending by hundreds of billions of dollars, particularly in defence and infrastructure. Mr Merz needs the Greens’ support to secure a two-thirds majority when the package goes to a vote in parliament next Tuesday.
The Trump administration reportedly asked the Pentagon for “credible military options” to ensure it retains “unfettered” access to the Panama Canal. Donald 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.
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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