{{ subpage.title }}

UK Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng attend the annual Conservative Party conference in Birmingham, Britain

Hannah McKay via Reuters

What We’re Watching: UK PM's budget U-turn, OPEC mulls production cut, Yemen truce expires

Truss’s tax U-turn

Will it be enough? New British PM Liz Truss’s government has reversed course on its economic agenda. Chancellor Kwasi Kwarteng told the Conservative Party conference on Monday that a proposal to scrap the UK’s 45% tax rate for high-income earners would be axed. He cited the recent market chaos and vowed that there would be “no more distractions” in pursuing the rest of the government’s proposed tax policies. This caps a dismal couple of weeks for the new Tory leadership during which the Bank of England tried to calm markets after Kwarteng introduced £45 billion ($49 billion) worth of tax cuts despite sky-high inflation. The upheaval also caused the pound to plummet against the greenback (it regained some value on Monday). Truss and Kwarteng said they changed tack after listening to voters struggling amid the cost-of-living crisis. But it had become clear that the plan would have struggled to pass the House of Commons. The top tax rate accounted for just £2 billion of the proposed tax cuts, so this reversal will only go so far in placating opponents and markets. Truss addresses the party conference on Wednesday, and after her rocky start, we’ll be watching to see whether she can win support for her economic plan – and revive her party’s dismal approval rating enough to stay in the top job.

Read Now Show less

Osama bin Laden sits with his successor Ayman al-Zawahri.

REUTERS/Hamid Mir

What We’re Watching: US kills Al-Qaida leader, Pelosi's Taiwan pit stop, Yemen holds its breath, tensions rise between Kosovo and Serbs

US kills al-Qaida leader

President Joe Biden addressed the nation Monday night to make an announcement 21 years in the making: the US killed al-Qaida leader Ayman al-Zawahri in a drone strike in Kabul over the weekend. Osama bin Laden’s right-hand man and key architect in the 9/11 terror attacks was killed in the first US attack in Afghanistan since the American withdrawal last August. The operation – a major counterterrorism coup for Biden – reportedly saw al-Zawahri killed at the home of a staffer to senior Taliban leader Sirajuddin Haqqani. A CIA ground team, with the help of aerial reconnaissance, has confirmed the death. “My hope is that this decisive action will bring one more measure of closure,” Biden told loved ones of 9/11 victims. He also warned that the US “will always remain vigilant … to ensure the safety and security of Americans at home and around the globe.” With al-Qaida franchises having cropped up globally over the past decade, the death of Zawahri – who was wary of the brand’s localization and its effect on his authority – will present a challenge for control of the militant group.

Read Now Show less
Luisa Vieira

Crow on the menu during Biden’s trip to Saudi Arabia

US President Joe Biden is currently en route to the Middle East for the first time since taking office, and he’ll be making stops in Israel and the West Bank before making a more controversial swing through Saudi Arabia.

Yes, the same Saudi Arabia that, as a presidential candidate, Biden promised to treat like a “global pariah” because of the kingdom’s grim human rights record, its brutal war in Yemen, and the alleged involvement of the powerful Crown Prince Mohammed bin Salman in the 2018 murder of journalist Jamal Khashoggi.

But that was then, and this is now. With inflation soaring, midterm elections approaching, and prospects for a new Iran nuclear deal receding, Joe Biden is hopping on a jet to Riyadh with a few key issues in mind.

Read Now Show less

People tour a Sana'a graveyard for Houthi fighters killed in fighting during a 2016 ceasefire in Yemen's civil war.

REUTERS/Khaled Abdullah

Is Yemen on the road to peace?

A powerful country invades its neighbor. The conflict quickly becomes a brutal proxy war. A horrific humanitarian crisis ensues. While much of the world’s attention has been on Ukraine for the past few months, the civil war in Yemen is now in its eighth year. But in recent weeks signs of hope for peace have emerged, if faintly. What is the latest in a grinding conflict that has provoked what the UN calls "the world's worst humanitarian crisis"?

Read Now Show less
Paige Fusco

De-facto ruler no more — UAE’s new president is ambitious, sophisticated

One of the world’s richest men and arguably the most powerful political player in the Arab world has ascended to the presidency of the Middle East’s most dynamic Islamic state. Crown Prince Mohamed bin Zayed al-Nahyan, 61, was appointed on Saturday as the ruler of the oil-rich United Arab Emirates, after the death Friday of Sheikh Khalifa, his elder half brother.

Read Now Show less

Models of oil barrels and a pump jack are seen in front of EU and Russia flag colors.

REUTERS/Dado Ruvic

What We’re Watching: Drawdown pledge, Europe veers away from Russia, Ethiopian peace hopes dashed, a Gulf non-starter

Fighting continues despite Russia’s drawdown pledge

The Pentagon said it believes the Kremlin was starting to reposition some of its troops away from Kyiv. But Russia continued to pound the Ukrainian capital with airstrikes and artillery while maintaining its ferocious bombardment of the besieged port city of Mariupol. Meanwhile, Russian Foreign Minister Sergey Lavrov said that bilateral peace talks were making “substantial progress,” but Ukrainian officials immediately disputed his claim that Kyiv had accepted the loss of Crimea and the Donbas as a “resolved question.” President Zelensky late Wednesday released a new video in which he said "we don't believe in fancy rhetorical constructions, we believe in what happens on the battlefield."

Read Now Show less

What We’re Watching: Russian and NATO intentions, US strikes Syrian prison, UAE-Houthi escalation

Russian and NATO intentions. To prepare to meet a perceived military threat, planners try to understand both the intentions and the capabilities of the other side. Russia says it does not intend to invade Ukraine, but NATO planners can see it has built the capability for an attack by amassing 100,000 troops near the Ukrainian border. In response, the alliance has decided to underline its own capacities. On Monday, NATO announced it had put troops on high alert and ordered the reinforcement of Eastern Europe with additional ships and fighter jets. It has beefed up defense of the Baltic states and is publicly mulling the idea of deploying more troops to southeastern Europe. NATO commanders hope this shift in the alliance’s own capabilities will send Moscow a clear message: Any aggressive military action taken by Russia will come at a steep cost for Moscow. The UK government claims to have exposed a Russian plot to install a pro-Kremlin leader in power in Kyiv in hopes of forcing Russia to abort any such plan. The perceived Russian threat has also reinvigorated debate within Sweden and Finland about possible membership in NATO for those countries. In sum, both sides have boosted their capabilities, and bystanders are considering doing the same. It’s Russian and NATO intentions that Ukraine, and the rest of us, will be watching.

Read Now Show less

What We’re Watching: Ukraine’s tumultuous politics, Netanyahu’s endgame, escalation in Yemen

Ukraine’s political woes. While Russia maintains tens of thousands of troops on the Ukrainian border, domestic politics in Kyiv are becoming increasingly contentious. This week, former President Petro Poroshenko — who was elected in 2014 after the Maidan Revolution ousted a longtime Putin ally and then defeated for re-election in 2019 — has now returned to Ukraine after a month abroad to face a host of criminal charges. Those charges include treason, an alleged crime related to his decision to sign government contracts to buy coal from mines held by Russian separatists in eastern Ukraine in 2014. Poronshenko, a businessman worth $1.6 billion, says the deal was necessary to keep Ukraine from economic collapse and that the charges are an attempt by current President Volodomyr Zelensky to distract from unfavorable perceptions of the country’s (currently lousy) economic outlook. He also calls it a manufactured crisis and a “gift” to the Kremlin, because it distracts from Russia’s ongoing aggression. Also, on Friday US Secretary of State Tony Blinken will meet Russian Foreign Minister Sergey Lavrov to continue talks on resolving the Ukraine standoff.

Read Now Show less

Subscribe to GZERO Media's newsletter, Signal

Latest