China has announced a package of tariffs on a range of American products in retaliation against a 10 per cent tariff on Chinese imports imposed by President Donald Trump.
It comes after Mr Trump agreed to suspend his aggressive tariff hike against Mexico and Canada by one month after speaking with his counterparts in both nations, but the threatened Chinese tariffs went ahead at 12.01am Eastern Time Tuesday.
Regarding Mexico, Trump wrote on Truth Social that he had had a “very friendly” conversation with President Claudia Sheinbaum and that the soldiers “will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country”.
As for Canada, Trump said the country agreed to appoint a “fentanyl czar” and signed a new intelligence directive on organized crime and fentanyl backed by $200 million.
The deals temporarily avert what is projected to be a costly trade war between the US and its most immediate neighbours.
As markets weighed the risk, congressional Democrats protested outside the headquarters of the U.S. Agency for International Development, which the Trump administration has targeted for major cuts and a potential full shutdown.
Key Points
- China announces wave of tariffs on US goods
- Donald Trump suspends Mexico tariff hike after agreeing border troop deal
- US stock markets fall in early morning selloff as Trump's tariff aggressions spark chaos
- Elon Musk applauds idea of U.S. sending prisoners to El Salvador
- Elon Musk says ‘criminal organization’ USAID is beyond repair and will be shut down
China announces wave of tariffs on US goods
06:04
,
Adam Withnall
China has announced a package of tariffs on a range of American products in retaliation against a 10 per cent tariff on Chinese imports imposed by president Donald Trump.
Read the full developing story here:
ICYMI: Tariffs on both Mexico and Canada now delayed
06:00
,
Andrew Feinberg
President Donald Trump’s plan to unilaterally impose a 25 percent tariff on Mexican and Canadian imports appears to be on hold in both countries Monday after a series of phone calls between Trump and the leaders of the two nations.
Canadian Prime Minister Justin Trudeau took to X (formerly Twitter) after what he described as a “good call with President Trump,” and said Canada was continuing to implement a $1.3 billion investment in security along his country’s long and largely unguarded border with America, including “new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl.”
Trudeau also said there are and already had been 10,000 Canadian personnel working along the world’s largest unguarded land frontier on protection-related duties.
Report: Trump administration will tackle Department of Education later this month
05:00
,
Ariana Baio
Several reports indicate Trump and his team will begin to tackle re-vamping the Department of Education, a target during his presidential campaign.
Some Republicans have championed for Trump to get rid of the Department of Education – a policy also part of Project 2025. However, it would require congressional approval.
Instead, Trump and his team may look at ways to defund the department or drastically reduce its size.
Elon Musk applauds idea of U.S. outsourcing prisoners to El Salvador
04:51
,
Josh Marcus
In a post on X on Monday night, Elon Musk seemed receptive to a highly controversial proposal to ship U.S. prisoners to El Salvador, a country which human rights observers have accused of violating human rights and carrying out mass arbitrary detention as part of a crackdown on violent and gang crime.
We have offered the United States of America the opportunity to outsource part of its prison system.
— Nayib Bukele (@nayibbukele) February 4, 2025
We are willing to take in only convicted criminals (including convicted U.S. citizens) into our mega-prison (CECOT) in exchange for a fee.
The fee would be relatively low for… pic.twitter.com/HTNwtp35Aq
“Great idea!” Musk said, in response to a post from Salvadorian president Nayib Bukele, proposing to “take in only convicted criminals (including convicted U.S. citizens) into our mega-prison (CECOT) in exchange for a fee.”
U.S. Secretary of State Marco Rubio is currently visiting El Salvador as part of a Central American tour.
Canadian border policies were issued in December
04:00
,
Ariana Baio
President Donald Trump touted that Canada would implement stronger border policies in exchange for pausing sweeping 25 percent tariffs on the U.S.’s northern neighbor, but some of those policies have already been in place.
In December, Canada announced a $1.3 billion investment in expanding drug detection technology and Canadian law enforcement at the border.
The new addition will be the appointment of a fentanyl czar, listing cartels as terrorists and launching a U.S. – Canada Joint Strike Force to combat organized crime, fentanyl and money laundering.
US markets finish down after early morning drop amid concerns with Trump's tariffs on global economy
03:00
,
Rhian Lubin
The U.S. stock markets have finished down after President Donald Trump agreed to delay implementing trade tariffs on Mexico and Canada.
Dow Jones Industrial Average fell by more than 122 points, and the NASDAQ fell about 235 points. The S&P 500 sank by 0.76 percent, following similar losses for markets across Asia and Europe.
The U.S. stock market had been on track for a much worse loss itself amid worries about how much pain U.S. companies would feel because of the tariffs.
Following an early morning slump, Trump agreed to delay implementing a 25 percent tax on Mexican and Canadian imports.
Trump fumes about Wall Street Journal with Rupert Murdoch right next to him
02:00
,
Justin Baragona
President Donald Trump welcomed Rupert Murdoch to the Oval Office on Monday to witness him sign an executive order establishing a sovereign wealth fund. The president then proceeded to trash Murdoch’s Wall Street Journal while the right-wing media mogul looked on.
With Oracle founder and conservative megadonor Larry Ellison also on hand, the president declared that the executive order could help initiate the purchase of TikTok from the Chinese-based ByteDance. “I think it’s about time that this country had a sovereign wealth fund,” said Trump, who wants the U.S. to own a portion of the social media platform.
Read more here:
Bill Gates says Elon Musk has been ‘mean’ to him
01:00
,
Kevin E G Perry
Bill Gates has opened up about his relationship with Elon Musk, saying that despite their differences he hopes to collaborate with his fellow billionaire.
“He’s been nice to me at times, and mean to me at times,” the Microsoft co-founder and philanthropist told The Independent. “I will try and work with him because he’s brilliant, he’s rich, he’s influential.”
However, they have also sparred in public, with Musk criticizing Gates for taking a short position on Tesla stock. He has also said Gates’s understanding of AI is “limited.”
Speaking to The Independent ahead of the publication of his memoir Source Code, Gates said he admired Musk for many reasons. “I’m in awe of the great work he did at SpaceX and Tesla,” said Gates. “The fact that Tesla kind of forced the car industry to do great EVs is a gigantic contribution.”
What is USAID? The government agency Elon Musk said needs to 'die’
00:00
,
Andrew Feinberg
Until a few days ago, most Americans might have gone their entire lives without hearing of the US Agency for International Development, the little-known government organization.
But for millions in poverty living around the world, the agency that Elon Musk has been attacking has been a crucial lifeline by providing needed humanitarian aid and other assistance — and for the United States, it has been a key element of soft power that has helped it counter the ambitions of authoritarian regimes for decades.
Read more here:
Susan Collins says she will vote to confirm Tulsi Gabbard
Monday 3 February 2025 23:30
,
Eric Garcia
Sen. Susan Collins, a senior member of the Senate Intelligence Committee, announced that she would vote to confirm Tulsi Gabbard to be President Donald Trump's director of National Intelligence.
In a statement Monday, Collins explained her rationale, saying specifically that Gabbard had answered Collins's questions about Edward Snowden, who leaked information to the press about US surveillance programs.
"In response to my questions during our discussion in my office and at the open hearing, as well as through her explanation at the closed hearing before the Senate Intelligence Committee, Ms. Gabbard addressed my concerns regarding her views on Edward Snowden. I look forward to working with Ms. Gabbard to strengthen our national security," she said in a statement.
During her confirmation hearing, Gabbard cited how Collins led to the creation of ODNI. Collins had expressed reservations about Gabbard's views on Section 702 of the Foreign Intelligence Surveillance Act, which allows the US government to gather intelligence on non-Americans outside the United States.
But in the statement, she said Gabbard had answered her concerns.
Rubio delegates Peter Marocco to lead USAID
Monday 3 February 2025 23:00
,
Ariana Baio
Secretary of State Marco Rubio informed leaders in Congress that he delegated Peter Marocco to oversee the U.S Agency for International Development
Marocco is a Trump appointee who served at USAID during the first Trump administration.
Democratic lawmakers blocked from USAID offices as they protest Elon Musk efforts to dismantle it
Monday 3 February 2025 22:30
,
Eric Garcia
Members of the House and Senate rallied in front of the Ronald Reagan Building which houses USAID.
Sen. Chris Van Hollen told reporters that he and other Democrats were not allowed into the building. He said he would work with Sen. Brian Schatz of Hawaii to block State Department nominees as long as USAID is in danger.
Trump expresses doubt over Gaza ceasefire deal
Monday 3 February 2025 22:00
,
Ariana Baio
President Donald Trump expressed some skepticism over whether or not the Israel–Gaza ceasefire deal would hold saying there ‘no assurance’ it will.
“There’s no assurances that it will hold,” Trump told reporters in the Oval Office on Monday. “Nobody’s ever seen anything like it. I have no guarantees that the peace is going to hold.”
Trump is scheduled to meet with Israeli Prime Minister Benjamin Netanyahu on Tuesday. Ceasefire and hostage exchange talks are expected to be one of the main talking points.
Trump pauses Canada tariffs for 30 days
Monday 3 February 2025 21:54
,
Ariana Baio
President Trump paused sweeping 25 percent tariffs that were set to hit Canada for 30 days in exchange for Canada increasing its border security, Prime Minister Justin Trudeau said on X.
Striking a similar deal as Trump did with Mexico, Trudeau said Canada will be deploying 10,000 personnel to the U.S. – Canada border and will also appoint a “Fentanyl Czar”.
Among the other changes, they will launch a joint task force with the U.S. to tackle fentanyl and money laundering problems and list cartels as terrorists.
I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…
— Justin Trudeau (@JustinTrudeau) February 3, 2025
Trump says he could make a deal with Canada on tariffs
Monday 3 February 2025 21:32
,
Ariana Baio
After striking a deal with Mexico that prevents sweeping tariffs from enacting, President Donald Trump said a similar deal could be made with Canada.
Speaking with reporters in the Oval Office on Monday, Trump said he spoke with outgoing Prime Minister Justin Trudeau about the U.S.–Canada relationship.
The two specifically spoke about banking in Canada. Though U.S. banks do operate in Canada with lending and commercial investments. But U.S. banks are subject to stricter regulations.
“Canada is very tough. You know, we’re not treated well by Canada,” Trump said.
The president once again floated the idea of Canada becoming the 51st state.
“We’ll see what happens. What I’d like to see Canada become our 51st state,” he added.
ACLU files lawsuit Trump’s asylum executive order
Monday 3 February 2025 21:05
,
Ariana Baio
Several immigration advocacy groups, including the ACLU and National Immigrant Justice Center, have filed a lawsuit against Donald Trump’s administration for his executive order aimed at shutting down asylum entry at the border.
The lawsuit, filed in Washington D.C., accuses the administration of bypassing congressional and court authorizations on asylum seeking.
““This is the latest flagrantly illegal attempt by the executive branch to end humanitarian protection at the U.S.-Mexico border,” Richard Caldarone, senior litigation attorney at the National Immigrant Justice Center said in a press release.
“The immigration laws do not give the president autocratic power to override Congress and brazenly violate U.S. treaty obligations related to the protection of refugees. This latest attempt to do so will make thousands of people vulnerable to persecution, torture, and death,” Caldarone added.
It the latest in a series of lawsuits that have been filed against the Trump administration for it’s immigration orders.
Trump to sit down with Fox's Bret Baier for Super Bowl pregame interview amid slew of controversies
Monday 3 February 2025 20:35
,
Justin Baragona
The traditional pregame Super Bowl presidential interview is back on — and it’s almost certainly because it’s Fox’s turn to host the big game.
Justin Baragona reports:
Trump defends Elon Musk access
Monday 3 February 2025 20:10
,
Ariana Baio
Trump defended the vast access that Musk has acquired since becoming more involved in Trump’s agenda.
“Elon can’t do and won’t do anything without our approval,” Trump told reporters on Monday. “He’s running, obviously, a big company... If there's a conflict, that we won’t let him get near it.”
“Elon can’t do and won’t do anything without our approval. … He’s running, obviously, a big company. … If there's a conflict, that we won’t let him get near it.”
— The Recount (@therecount) February 3, 2025
— Trump defends Elon Musk getting access to the Treasury Department’s payment system pic.twitter.com/PTiAzYuO2L
Democrats try to enter USAID building
Monday 3 February 2025 19:45
,
Ariana Baio
Democrats who oppose Elon Musk’s attempt to close down the U.S. Agency for International Development is trying to enter the USAID building.
The group wants to “hear firsthand from whoever is here at AID or at least witness firsthand what is happening with this Elon Musk attempted takeover”, Senator Chris Van Hollen said on Monday.
Sen. @ChrisVanHollen (D-MD) leads other Congressional Democrats into USAID headquarters: "So we can hear firsthand from whoever is here at AID or at least witness firsthand what is happening with this Elon Musk attempted takeover which will not stand. We will prevail. Let's go." pic.twitter.com/anu41Bjyg7
— CSPAN (@cspan) February 3, 2025
Trump says TikTok could be owned by sovereign wealth fund
Monday 3 February 2025 19:30
,
Ariana Baio
After signing an executive order that directs the Department of Treasury and Commerce to take steps toward creating a sovereign wealth fund, Trump indicated that TikTok could be partially owned by that fund.
Speaking to reporters in the Oval Office on Monday, Trump floated the possibility that the government could invest in TikTok through the fund.
A sovereign wealth fund is a federally-owned investment vehicle
Trump says he had 'a great talk' with Mexican president
Monday 3 February 2025 19:00
,
Ariana Baio
Speaking with reporters in the Oval Office, President Donald Trump said he had a “great talk with Mexico” on Monday morning after the country agreed to deploy 10,000 troops in exchange for pausing tariffs
Democrats call out Elon Musk for shutting down USAID
Monday 3 February 2025 18:50
,
Ariana Baio
Democrat lawmakers criticized billionaire Elon Musk for shutting down the USAID on Monday, saying his authority is too vast for a non-elected official.
“No one elected Elon Musk to dismantle it,” Virginia Representative Gerry Connolly said on Monday.
“Elon, if you want to run USAID, get nominated by Trump and go to the Senate and good luck in getting confirmed," Connolly added.
Gerry Connolly: "It is a matter for Congress to deal with, not an unelected billionaire oligarchy named Elon Musk. And Elon, if you want to run USAID, get nominated by Trump and go to the Senate and good luck in getting confirmed." pic.twitter.com/hM9rN9ryx6
— Aaron Rupar (@atrupar) February 3, 2025
Trump signs executive order establishing a sovereign wealth fund
Monday 3 February 2025 18:40
,
Ariana Baio
HAPPENING NOW: President Trump signs an Executive Order calling for the creation of a Sovereign Wealth Fund pic.twitter.com/sMkBg3bUwX
— Karoline Leavitt (@PressSec) February 3, 2025
As Musk amasses authority, White House names him 'special government employee'
Monday 3 February 2025 18:20
,
Ariana Baio
The White House named Elon Musk a “special government employee” on Monday, formalizing his role within the White House while bypassing typical disclosure and confirmation rules.
An unnamed official confirmed to the Associated Press that Musk has office space within the White House and a government email address.
Musk, the richest person in the world, has managed to obtain vast authority over various federal agencies thanks to his role heading the Department of Government Efficiency, a temporary organization with the government.
EPA warns more than 1,100 employees could be fired 'immediately‘ amid Trump government cutbacks
Monday 3 February 2025 18:00
,
Julia Musto
The Trump administration has reportedly warned more than 1,100 Environmental Protection Agency employees working on climate change, reducing air pollution, and other programs that they could be “immediately” terminated at any time.
Julia Musto reports:
USAID to merge with State Department
Monday 3 February 2025 17:40
,
Ariana Baio
After a contentious weekend of conflict between officials in Elon Musk’s Department of Government Efficiency and the U.S. Agency for International Development, the USAID will merge with the State Department, according to reports.
Secretary of State Marco Rubio said he will serve as the acting director of USAID on Monday.
USAID oversees foreign aid, humanitarian development and security programs in approximately 120 countries.
The agency has been subject to scrutiny by Musk and others who believe the U.S. is spending too much money abroad.
Over the weekend, two USAID officials refused to give Musk’s DOGE team access to classified information, resulting in the officials being put on administrative leave. Now the agency will be overseen by Rubio.
"USAID has a history of sort of ignoring that and deciding that they're somehow a global charity,” Rubio told reporters.
Voices: If Britain is to avoid Trump’s tariffs, the NHS may pay the price
Monday 3 February 2025 17:30
,
Joe Sommerlad
Here’s Sean O’Grady on what specifically could be at stake for the U.K. if a deal has to be done with Donald Trump to sidestep his tariff aggressions.
Speechwriter fired in first Trump term for attending white nationalists rally handed State Department job
Monday 3 February 2025 17:10
,
Joe Sommerlad
The Trump administration is reportedly expected to tap a conservative media figure and former speechwriter, who was fired for attending a conference with ties to white nationalists in 2018, for one of the top jobs within the State Department.
Darren Beattie, the founder of the conservative online news source Revolver, will serve as the acting under secretary for public diplomacy and public affairs beginning on Monday, ABC News reported.
Beattie served as a speechwriter during the first Trump administration but was terminated in 2018 after it was discovered he spoke on a panel at the H.L. Mencken Club Conference in 2016 alongside notable white supremacists including Peter Brimelow, the founder of VDARE.
Elon Musk lays out plans for DOGE’s cost-cutting in late-night, freewheeling conversation on X
Monday 3 February 2025 16:50
,
Joe Sommerlad
The billionaire hosted a rambling 50-minute conversation on X Spaces early Monday with Republican senators Joni Ernst, Mike Lee and former DOGE co-lead Vivek Ramaswamy.
“We just got to do [a] wholesale spring cleaning of regulation and get the government off the backs of everyday Americans so people can get things done, and the government isn’t… doesn’t have a sort of boot on the neck of the average Americans,” Musk said.
Lee said that America was due for a moment of political upheaval and described 2025 as “the DOGE revolution”.
Musk suggested that DOGE may turn to the Supreme Court if it needs backup to push through some of his cuts when they meet resistance.
The Tesla founder acknowledged that three justices were nominated by Donald Trump.
Rhian Lubin has more.
Trump administration has already released some immigrants back into the U.S. after touting aggressive crackdown
Monday 3 February 2025 16:40
,
Joe Sommerlad
Some of the 8,000 migrants arrested under the Trump administration’s deportation crackdown have already been released back into the U.S., according to a report.
Agents from Immigration and Customs Enforcement (ICE) have conducted raids in cities such as New York, Chicago and Philadelphia, arresting immigrants who entered the U.S. illegally.
The surge in arrests has come as Donald Trump returns to the White House and works to fulfill a campaign promise to deport millions of illegal migrants.
ICE has shared daily numbers of those arrested, totaling about 8,000 since Trump took office.
Now, an NBC News report details how some have already been released back into the U.S., with federal court systems to blame.
Alex Lang reports.
Trump to sit down with Fox’s Bret Baier for Super Bowl pregame interview amid slew of controversies
Monday 3 February 2025 16:30
,
Joe Sommerlad
The president’s next big interview, airing Sunday, will be with the Fox host who made himself notorious during the presidential campaign last fall by shamelessly talking over Kamala Harris, refusing to let the then-vice president get a word in edgeways.
Justin Baragona reports.
US stock markets fall in early morning selloff after Trump slams Canada, Mexico and China with new tariffs
Monday 3 February 2025 16:20
Here’s Rhian Lubin on this morning’s trading floor drama in response to Trump’s antics.
Ontario premier says he’s ‘ripping up’ $100m contract with Musk’s Starlink in response to US tariffs
Monday 3 February 2025 16:10
,
Joe Sommerlad
We heard a little earlier about Ontario Premier Doug Ford, who is planning to ban American liquor from shelves in his province.
He now says he is ripping up a contract with Elon Musk’s Starlink internet services in response to Donald Trump’s sweeping tariffs on Canada.
Ford, who said he is also banning American companies from provincial contracts, signed a $68 million (US dollar) contract with Musk’s company in November to deliver high-speed internet to remote residents in rural and northern Ontario.
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy,” Ford said in a post on X.
Ford said U.S.-based businesses will lose out on “tens of billions of dollars” in new revenues as a result of Ontario’s response.
“They only have President Trump to blame,” he said.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
— Doug Ford (@fordnation) February 3, 2025
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
Trump hails border troop deal with Mexico after agreeing to pause tariffs
Monday 3 February 2025 15:50
,
Joe Sommerlad
This is what Trump has had to say about his conversation with Sheinbaum just now in a post to Truth Social:
“I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country. We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico. I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries.”
Here’s Andrew Feinberg’s report.
Breaking: Mexico says US agrees to pause tariff hike for one month
Monday 3 February 2025 15:40
,
Joe Sommerlad
Here’s the latest from Mexico President Claudia Sheinbaum:
“We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements:
“1. Mexico will immediately reinforce the northern border with 10,000 members of the National Guard to prevent drug trafficking from Mexico to the United States, particularly fentanyl.
“2. The United States is committed to working to prevent the trafficking of high-powered weapons to Mexico.
Sostuvimos una buena conversación con el presidente Trump con mucho respeto a nuestra relación y la soberanía; llegamos a una serie de acuerdos:
— Claudia Sheinbaum Pardo (@Claudiashein) February 3, 2025
1.México reforzará la frontera norte con 10 mil elementos de la Guardia Nacional de forma inmediata, para evitar el tráfico de drogas…
Watch: Anti-Trump protesters block LA freeway for hours in response to president’s illegal immigration crackdown
Monday 3 February 2025 15:31
,
Joe Sommerlad
Demonstrations like this could become a much more common spectacle on America’ streets as the president’s mass deportation raids ramp up.
Trump reveals upcoming call with Trudeau
Monday 3 February 2025 15:15
,
Joe Sommerlad
The president says he is in discussions with Canada’s prime minister about the trade war he has caused to erupt between the two North American neighbors.
Canada doesn’t even allow U.S. Banks to open or do business there. What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada. Just spoke to Justin…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) February 3, 2025
Tracking the Nasdaq after Trump tariffs
Monday 3 February 2025 15:00
,
Ariana Baio
WHO chief asks countries to push Washington to reconsider its withdrawal
Monday 3 February 2025 14:40
,
Joe Sommerlad
Director-General Tedros Adhanom Ghebreyesus has asked global leaders to lean on Washington to reverse Donald Trump’s decision to withdraw from the U.N. health agency, insisting in a closed-door meeting with diplomats last week that the U.S. will miss out on critical information about global disease outbreaks.
U.S. stock market down upon opening
Monday 3 February 2025 14:39
,
Ariana Baio
As expected, the U.S. stock markets opened on Monday morning to falling rates after President Donald Trump imposed sweeping tariffs on the U.S.’s largest trading partners: Canada and Mexico.
At opening, the Nasdaq was down more than 1.7 percent.
The S&P 500 was down 1.5 percent.
The Dow Jones Industrial Complex was down 1.08 percent.
Recap: Impatient Trump accuses Democrats of delaying his nominees
Monday 3 February 2025 14:20
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Joe Sommerlad
Donald Trump has accused Senate Democrats of deliberately delaying the confirmation of his nominees to top cabinet positions, angrily insisting, without evidence, that his political rivals are intentionally sabotaging his new administration and laughing about doing so behind the scenes.
Here’s more.
