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    Northern Ireland Has a Sinn Fein Leader. It’s a Landmark Moment.

    The idea of a first minister who supports closer ties to the Republic of Ireland — let alone one from Sinn Fein, a party with historic ties to the Irish Republican Army — was once unthinkable. On Saturday, it became reality.As Michelle O’Neill walked down the marble staircase in Northern Ireland’s Parliament building on the outskirts of Belfast on Saturday, she appeared confident and calm. She smiled as applause erupted from supporters in the balcony. Yet her determined walk and otherwise serious gaze conveyed the gravity of the moment.The political party she represents, Sinn Fein, was shaped by the decades-long, bloody struggle of Irish nationalists in the territory who dreamed of reuniting with the Republic of Ireland and undoing the 1921 partition that has kept Northern Ireland under British rule.Now, for the first time, a Sinn Fein politician holds Northern Ireland’s top political office, a landmark moment for the party and for the broader region as a power-sharing government is restored. The first minister role had previously always been held by a unionist politician committed to remaining part of the United Kingdom.“As first minister, I am wholeheartedly committed to continuing the work of reconciliation between all our people,” Ms. O’Neill said, noting that her parents and grandparents would never have imagined that such a day would come. “I would never ask anyone to move on, but what I can ask is for us to move forward.”The idea of a nationalist first minister in Northern Ireland, let alone one from Sinn Fein, a party with historic ties to the Irish Republican Army, was indeed once unthinkable.But the story of Sinn Fein’s transformation — from a fringe party that was once the I.R.A.’s political wing, to a political force that won the most seats in Northern Ireland’s 2022 elections — is also the story of a changing political landscape and the results of the 1998 Good Friday Agreement, which ended the decades-long sectarian conflict known as the Troubles.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    The Squeeze on British Businesses Is Not Letting Up Soon

    Company insolvencies hit a three-decade high, with businesses under pressure from high debts, prices and interest rates. The Bank of England held rates steady on Thursday.Britain’s economy faces a bracing fact: The number of companies that folded last year was the highest in three decades.More than 25,000 companies registered as insolvent in 2023, the most since 1993, according to government data published this week. As pandemic-related support measures for businesses ended, the wreckage from years of high debt and interest rates, soaring prices and a cost-of-living crisis become clearer. Insolvencies have spread from small to larger businesses, analysts said.Businesses still dealing with relatively high costs, demands for higher wages, supply chain uncertainties and wavering consumer confidence are hoping for brighter economic times. Slower inflation, stronger growth and cuts to interest rates are expected to come this year, but not soon.On Thursday, the Bank of England held interest rates at 5.25 percent, the highest since 2008, and where they have remained since August, after rising from just above zero in a series of increases over a year and a half.Policymakers said inflation had declined, including wage growth and services inflation, but some measures of persistence remained “elevated.” Two members of the nine-person rate-setting committee voted for a quarter-point rate increase, while one voted for the first time to cut rates.There has been good news on inflation, “but we have to be more confident that inflation will fall all the way back to the 2 percent target and stay there,” Andrew Bailey, the governor of the bank, said on Thursday. “We are not yet at a point where we can lower interest rates.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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    D.U.P. in Northern Ireland Breaks Political Deadlock After Nearly 2 Years

    The Democratic Unionist Party walked out of government in 2022 over post-Brexit trade rules. But on Tuesday, the party said it would return to power-sharing after negotiating with the British government.The Democratic Unionist Party, the main Protestant party in Northern Ireland and one of its biggest political forces, said on Tuesday that it was ready to return to power sharing after a boycott of almost two years had paralyzed decision-making in the region.After an internal meeting that stretched into the early morning, Jeffrey Donaldson, leader of the party, known as the D.U.P., said at a news conference that he had been mandated to support a new deal, negotiated with the British government, under which his party would return to Northern Ireland’s governing assembly.“Over the coming period we will work alongside others to build a thriving Northern Ireland firmly within the union for this and succeeding generations,” Mr. Donaldson said. He added, however, that the return to power sharing was conditional on the British government’s legislating to enshrine a new set of measures that had not yet been made public.The decision by the D.U.P., which represents those who want Northern Ireland to remain part of the United Kingdom, will be welcomed by many voters frustrated by the political stalemate, as well as by the British and Irish governments, which have both put pressure on the party to end the deadlock.But it could also herald a seismic shift in the territory’s history, opening the door for Sinn Fein, the Irish nationalist party, to hold for the first time the most senior political role of “first minister” rather than “deputy first minister.”Sinn Fein is committed to the idea of a united Ireland, in which Northern Ireland would join the Republic of Ireland, rather than remain part of the United Kingdom.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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    Major Donors Pause Funding for U.N. Agency as Scandal Widens

    The actions came as specific, “horrific” details were more widely shared by the U.N. and Israel.Germany, Britain and at least four other countries said Saturday they were suspending funding for the United Nations agency that provides food, water and essential services for Palestinian civilians in the Gaza Strip, many of whom have been described as being on the brink of starvation after 16 weeks of war between Israel and Hamas.The countries joined the United States, which said on Friday it would withhold funding for the group, the United Nations Relief and Works Agency, or UNRWA, after a dozen of its employees were accused by Israel of participating in the Oct. 7 attacks.The United Nations has not made public the details of the accusations against the UNRWA employees, who have been fired, but a senior U.N. official briefed on the accusations called them “extremely serious and horrific.”The Israeli military said in a statement Saturday that its intelligence services had compiled a case “incriminating several UNRWA employees for their alleged involvement in the massacre, along with evidence pointing to the use of UNRWA facilities for terrorist purposes.” It did not elaborate on what that involvement entailed.In announcing the pause in funding, the United States, the agency’s largest donor, said it was reviewing the allegations “and the steps the United Nations is taking to address them.”The governments of Australia, Canada, Finland and Iceland also said they were suspending funding for the agency.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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    Playing for Time, U.K. Leader Sets Up Chance of U.S. Election Overlap

    Prime Minister Rishi Sunak signaled that voters will go to the polls in the fall, around the time that the United States will be in the midst of its own pivotal vote.When Prime Minister Rishi Sunak said this week that he was not likely to call a general election in Britain before the second half of the year, he was trying to douse fevered speculation that he might go to the voters as early as May. But in doing so, he set up another tantalizing prospect: that Britain and the United States could hold elections within days or weeks of each other this fall.The last time parliamentary and presidential elections coincided was in 1964, when Britain’s Labour Party ousted the long-governing Conservatives in October, and less than a month later, a Democratic president, Lyndon B. Johnson, swept aside a challenge from a right-wing Republican insurgent. The parallels to today are not lost on the excitable denizens of Britain’s political class.“It’s the stuff of gossip around London dinner tables already,” said Kim Darroch, a former British ambassador to Washington who is now a member of the House of Lords. For all the Côte du Rhône-fueled analysis, Mr. Darroch conceded, “it’s hard to reach any kind of conclusion about what it means.”That doesn’t mean political soothsayers, amateur and professional, aren’t giving it a go. Some argue that a victory by the Republican front-runner, Donald J. Trump, over President Biden — or even the prospect of one — would be so alarming that it would scare voters in Britain into sticking with Mr. Sunak’s Conservative Party, as a bid for predictability and continuity in an uncertain world.A supporter of Donald J. Trump laying out signs on Tuesday before an event in Cedar Rapids, Iowa.Jordan Gale for The New York TimesOthers argue that the Labour Party leader, Keir Starmer, could win over voters by reminding them of the ideological kinship between the Conservatives and Mr. Trump, who remains deeply unpopular in Britain. Mr. Trump praised Mr. Sunak last fall for saying he wanted to water down some of Britain’s ambitious climate goals. “I always knew Sunak was smart,” Mr. Trump posted on his Truth Social account.Still others pooh-pooh the suggestion that British voters would make decisions at the ballot box based on the political direction of another country, even one as close and influential as the United States. Britain’s election, analysts say, is likely to be decided by domestic concerns like the cost-of-living crisis, home-mortgage rates, immigration and the dilapidated state of the National Health Service.And yet, even the skeptics of any direct effect acknowledge that near-simultaneous elections could cause ripples on both sides of the pond, given how Britain and the United States often seem to operate under the same political weather system. Britain’s vote to leave the European Union in June 2016 is often viewed as a canary in the coal mine for Mr. Trump’s victory the following November.Already, the campaigns in both countries are beginning to echo each other, with fiery debates about immigration; the integrity — or otherwise — of political leaders; and social and cultural quarrels, from racial justice to the rights of transgender people. Those themes will be amplified as they reverberate across the ocean, with the American election forming a supersized backdrop to the British campaign.“The U.S. election will receive a huge amount of attention in the run-up to the U.K. election,” said Ben Ansell, a professor of comparative democratic institutions at Oxford University. “If the Tories run a culture-war campaign, and people are being fed a diet of wall-to-wall populism because of Trump, that could backfire on them.”Some argue that if the elections coincide, Keir Starmer, the leader of the opposition Labour Party, could win over voters by reminding them of the similarities between the Conservatives and Mr. Trump.Justin Tallis/Agence France-Presse — Getty ImagesProfessor Ansell identified another risk in the political synchronicity: it could magnify the damage of a disinformation campaign waged by a hostile foreign power, such as the efforts by Russian agents in Britain before the Brexit vote, and in the United States before the 2016 presidential election. “It’s a two-for-one,” he said, noting that both countries remain divided and vulnerable to such manipulation.On Thursday, Mr. Starmer appealed to Britons to move past the fury and divisiveness of the Brexit debates, promising “a politics that treads a little lighter on all of our lives.” That was reminiscent of Mr. Biden’s call in his 2021 inaugural address to “join forces, stop the shouting, and lower the temperature.”Frank Luntz, a Republican strategist who studied at Oxford and has advised Conservative Party officials, said he warned the Tories not to turn their campaign into a culture war. “It will get you votes, but it will destroy the electorate in the process,” he said he told them, pointing out that a campaign against “woke” issues had not helped Gov. Ron DeSantis of Florida dislodge Mr. Trump.Mr. Sunak has vacillated in recent months between a hard-edge and more centrist approach as his party has struggled to get traction with voters. It currently lags Labour by 20 percentage points in most polls. While general elections are frequently held in the spring, Mr. Sunak appears to be playing for time in the hope that his fortunes will improve. That has drawn criticism from Mr. Starmer, who accused him of “squatting” in 10 Downing Street.“I’ve got lots that I want to get on with,” Mr. Sunak told reporters Thursday. He could wait until next January to hold a vote, though analysts say that was unlikely, since campaigning over the Christmas holiday would likely alienate voters and discourage party activists from canvassing door to door.Counting votes in Bath, England, during the U.K.’s last general election in 2019.Ian Walton/ReutersWith summer out for the same reason, Mr. Sunak’s most likely options are October or November (Americans will vote on Nov. 5). There are arguments for choosing either month, including that party conferences are traditionally held in early October.In October 1964, the Conservative government, led by Alec Douglas-Home, narrowly lost to Labour, led by Harold Wilson. Like Mr. Douglas-Home, Mr. Sunak is presiding over a party in power for more than 13 years. The following month, President Johnson trounced Barry Goldwater, the hard-right Republican senator from Arizona, who had declared, “Extremism in the defense of liberty is no vice.”Sixty years ago, the Atlantic was a greater divide than it is today, and the links between trans-Atlantic elections more tenuous than they are now. Mr. Trump, armed with a social media account and a penchant for lines even more provocative than Mr. Goldwater’s, could easily roil the British campaign, analysts said.And a Trump victory, they added, would pose a devilish challenge to either future British leader. While Mr. Trump treated Mr. Sunak’s predecessor, Boris Johnson, as an ideological twin, he fell out bitterly with Mr. Johnson’s predecessor, Theresa May, and there was little reason, they said, to hope for less drama in a second Trump term.The biggest pre-election danger — much more likely for Mr. Sunak than for Mr. Starmer, given their politics — is that Mr. Trump will make a formal endorsement, either while he is the Republican nominee or newly elected as president, said Timothy Bale, a professor of politics at Queen Mary, University of London.“Given how negatively most Brits feel toward Trump,” Professor Bale said, “such an endorsement is unlikely to play well for whichever of the two is unlucky enough to find favor with him.” More

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    Rishi Sunak Promises to Honor Britain’s Climate Commitments at COP28 Summit

    Prime Minister Rishi Sunak of Britain rejected claims on Friday that he had lowered his country’s net-zero ambitions and pledged to meet targets in a more pragmatic way.At a news conference, Mr. Sunak, who was spending just a few hours at the COP28 climate summit in Dubai, committed 1.6 billion pounds, or about $2 billion, for international climate finance projects, including for renewable energy and forests, fulfilling a promise to spend a total of £11.6 billion over five years.Mr. Sunak said that Britain was “leading by example” but then added swiftly that excessive costs from the transition to net zero should not be borne by ordinary Britons.“We won’t tackle climate change unless we take people with us,” he said. “Climate politics is close to breaking point.”“The British people care about the environment,” added Mr. Sunak, who has been trailing in opinion polls ahead of an election that is likely to take place next year. “They know that the costs of inaction are intolerable, but they also know that we have choices about how we act. So, yes, we will meet our targets but we will do it in a more pragmatic way which doesn’t burden working people.”Mr. Sunak has recently stressed his determination to limit costs to Britons, whose living standards are being squeezed by inflation as their economy stagnates.That emphasis on Friday from the British prime minister was in striking contrast to the more idealistic tone of King Charles III, a lifelong supporter of environmental causes, who told leaders earlier at the same meeting that “hope of the world” rested on the decisions they took.Britain has been regarded as one of the global leaders in combating climate change, but this year Mr. Sunak signaled a shift in policy when he said he would delay a ban on the sale of gas and diesel cars by five years, and lower targets for replacing gas boilers.That followed a surprise victory in July in a parliamentary election in northwestern London, where his Conservative Party campaigned against moves by the city’s Labour mayor to expand an air-quality initiative that raised fees for drivers of older, more polluting vehicles.On Friday, Mr. Sunak emphasized pragmatism in climate policy even as he insisted that Britain had “done more than others up until now” and would continue to do so.When asked about the brevity of his visit and why he would spend more time in his plane than on the ground in Dubai, Mr. Sunak responded: “I wouldn’t measure our impact here by hours spent. I would measure it by the actual things we are doing.” More

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    Global Markets Cheer on Better Than Expected Inflation Data

    A better-than-expected Consumer Price Index report triggered a big surge in stocks and bonds, as investors bet that interest rates will begin to fall.Upbeat investors see Tuesday’s inflation data as a possible turning point in the Fed’s battle against soaring prices.Michael M. Santiago/Getty ImagesGood news for global markets Yesterday’s impressive rally in U.S. stocks and bonds has gone worldwide this morning, as investors see central banks making gains in their fight against inflation. Adding to the good news was a breakthrough in the House last night that could avert a government shutdown.S&P 500 futures signal further gains at the opening bell. The question now is whether this represents a false dawn on inflation, or the start of a durable decline in rising costs — and interest rates.Here’s what’s exciting investors: Yesterday’s cooler-than-expected Consumer Price Index data has shifted discussion in the markets from potential interest rate hikes to cuts, and what that might mean for stocks. President Biden, whose poll ratings have been hurt by inflation, also cheered the numbers.Other promising data points came out this morning. Inflation in Britain fell to its lowest level in two years. And consumer spending and industrial output in China rebounded last month, a hopeful sign for the world’s No. 2 economy.Market optimists have moved up their bets on rate cuts. Futures markets this morning pointed to the Fed starting to lower borrowing costs by May, sooner than previous estimates of closer to the end of 2024.Less aggressive is Mohit Kumar, the chief financial economist at Jefferies, who wrote today that big rate cuts would begin after the presidential election next year. Jefferies predicts the Fed’s prime lending rate going to 3 percent by the end of 2025 from its current level of 5.25 to 5.5 percent.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.We are confirming your access to this article, this will take just a moment. However, if you are using Reader mode please log in, subscribe, or exit Reader mode since we are unable to verify access in that state.Confirming article access.If you are a subscriber, please  More

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    Under Pressure, U.K.’s Sunak Tries Another Cabinet Reset With a Swerve to Center

    After more than a year as prime minister, Rishi Sunak, a Conservative, has failed to close a yawning gap in the polls. On Monday he did something new.Prime Minister Rishi Sunak of Britain fired one of his most senior and divisive ministers on Monday, in a reshuffle of his top team that unexpectedly brought a centrist predecessor, David Cameron, back into government.The departure of Suella Braverman as home secretary and the surprise return of Mr. Cameron as foreign secretary were the latest in a series of convulsions that have rocked the governing Conservative Party since the fateful Brexit referendum that Mr. Cameron called in 2016, and signaled the peril facing Mr. Sunak as he nears a general election expected next year.After 13 years in Downing Street, the Conservatives’ grip on power appears to be slipping, with the party trailing Labour by around 20 points in the polls against a challenging economic backdrop, with sluggish growth and inflation eroding living standards, and a public sector under acute strain after years of Conservative-led austerity.Mr. Sunak has tried various gambits to address his party’s unpopularity with voters, weakening environmental targets, pledging to defend motorists and promising tougher sentencing for serious criminals. None seem to have worked.At the same time, Ms. Braverman, who is seen as a rival within the party, had become increasingly emboldened as home secretary, raising her profile and appearing to prepare the ground for a leadership bid if the Conservatives lose the election as many expect.Last week she wrote an extraordinary opinion article in The Times of London, which was not authorized by Downing Street, in which she criticized the police for not seeking to ban a pro-Palestinian protest march in the capital, and described the demonstrators as “hate marchers” and “Islamists.”Protesters in solidarity with Palestinians in Gaza, on Vauxhall Bridge in London, on Saturday.Hollie Adams/ReutersAfter counterprotesters clashed with the police on Saturday, critics accused Ms. Braverman of inflaming tensions and encouraging far-right demonstrators onto the streets, and her position was judged untenable by Downing Street.Mr. Sunak and Ms. Braverman spoke by phone on Monday, and in the shuffle of jobs that followed her departure, she was replaced by the more emollient former foreign secretary, James Cleverly, freeing up his position for Mr. Cameron.Both men are regarded as moderates and the changes appeared to signal a shift away from the divisive politics that were championed by Ms. Braverman, whose focus on cultural issues had become a feature of Mr. Sunak’s government in recent months.Neither of the two appointments was good news for the right-wing faction of the Conservative Party where Ms. Braverman had a small but vocal group of supporters.Nor was Mr. Sunak’s decision to keep Jeremy Hunt as chancellor of the Exchequer. Mr. Hunt’s resistance to offering tax cuts has antagonized a wider group of Conservative lawmakers. He, like Mr. Cameron, campaigned against Brexit in 2016, but Mr. Hunt has made controlling inflation his priority and says that reducing taxes will have to wait.The return to the cabinet of Mr. Cameron may remind some voters of the political chaos that he triggered in 2016 when Britons ignored his recommendation and narrowly voted to leave the European Union. Mr. Sunak is the fourth Conservative leader to have become prime minister since Mr. Cameron stood aside after the referendum result, which sent shock waves around Europe.David Cameron, Britain’s new foreign secretary, departing 10 Downing Street on Monday.Andy Rain/EPA, via ShutterstockMr. Sunak restored some stability when he succeeded Liz Truss as prime minister last year, but his latest reshuffle risks reopening ideological divisions that have dogged the party in recent years. Though the salience of Brexit has faded in British politics, Mr. Cameron — who led the campaign against it — will now be partly responsible for promoting the policy around the globe.Yet, while bringing back Mr. Cameron is a political gamble, Mr. Sunak may have judged the risk worthwhile. He has limited time to win back voters, or possibly even to limit the scale of a defeat in the looming election.Ms. Braverman had lost her job as home secretary once before, under the short-lived government of Ms. Truss, but she was given it back by Mr. Sunak when he entered Downing Street. She used her position in cabinet to push hard-right policies and embraced polarizing rhetoric, describing migration as a “hurricane,” the arrival of asylum seekers on the British coast as an “invasion” and homelessness as a “lifestyle choice.”While Mr. Sunak’s language was more measured, he supported most of her ideas — in particular, her pursuit of a policy to deport asylum seekers to Rwanda. That faces a critical test on Wednesday when the country’s Supreme Court is scheduled to rule on its legality following a series of challenges.Mr. Sunak visiting an Ikea distribution center in Dartford, Kent, in June.Pool photo by Jack HillThe decision to bring back Mr. Cameron, who led the Conservatives between 2005-16, seemed at odds with Mr. Sunak’s recent claims at his party’s annual conference to be an agent of change.It also underscored a constitutional requirement of Britain’s political system that ministers hold a seat in Parliament so they can propose legislation and be held to account by fellow lawmakers. As a consequence Mr. Sunak on Monday nominated Mr. Cameron for a seat in the House of Lords, Parliament’s less powerful, unelected upper chamber.It is not the first time in the modern era that a foreign secretary has been a member of the House of Lords, rather than the House of Commons: Peter Carington, who became Lord Carrington — and as such, gained a second r in his name — filled that role between 1979-82. He resigned amid the Falklands crisis, when troops from Argentina occupied a British overseas territory in the South Atlantic in 1982, sparking a brief conflict.While the situation is not unique, Mr. Cameron’s status as a member of the House of Lords has already raised tensions among lawmakers in the House of Commons as he will normally speak not to them, but to an assembly of unelected members of the upper chamber.Lindsay Hoyle, speaker of the House of Commons, said on Monday that he was looking into ways in which the new foreign secretary could be held accountable by elected lawmakers. It was “especially important” that they should be able to scrutinize his work, “given the gravity of the current international situation,” Mr. Hoyle said in Parliament. More