Theresa May is chairing the first meeting of her new-look cabinet as she battles to keep her job amid mounting chaos in the Conservative Party.
The prime minister reshuffled her senior ministers on Monday after David Davis and Boris Johnson dramatically resigned in protest at the government's Brexit policy.
Jeremy Hunt, previously the health secretary, was moved to foreign secretary, with Matt Hancock, the culture secretary, replacing him. Jeremy Wright, the attorney general, became culture secretary and was replaced by Geoffrey Cox.
Ms May addressed her MPs last night amid swirling speculation that Tory Eurosceptics are on the verge of triggering a vote of no confidence in her. More ministers and frontbench aides could resign today.
Meanwhile, Angela Merkel is in London for a summit on the Western Balkans, with she and Ms May expected to hold a joint press conference this afternoon.
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Matt Hancock replaces Jeremy Hunt as health secretary
Theresa May was forced to reshuffle her top team after Boris Johnson and David Davis both dramatically resigned
"It could mean staying in a customs union, it could even mean staying in the European Economic Area.The desirability in economic terms of the United Kingdom having frictionless access for goods and services into the EU market is absolutely overwhelming and businesses are saying this over and over again."

Theresa May clings on after Boris Johnson quits amid torrid day of Brexit conflict
Mr Johnson said the prime minister's plans for negotiating with Europe equated to going into battle with 'white flags fluttering'
Former Conservative leader warns Tories a vote of no confidence in Theresa May would be 'extremely foolish’
Party rules dictate that 48 Tory MPs must sign letters of no confidence before a vote is triggered, but that number has not yet materialised"No I don't. I think, overall, colleagues should think very, very carefully about that.
"That's the last thing we need at the moment.
"We now have a plan. There is now an agreed plan on the way forward."
"It's a negotiation and that requires compromises from both sides if we are to reach an agreement which is in the best interests of the United Kingdom and the best interest of the EU 27."What I would say to those of my colleagues ... if there are some who think this is pain free and this is just something that we can ride over very easily, is no deal will have a negative impact on our constituents, on the British public.
It is not an attractive option at all, which is why we should try to move these negotiations forward.
But, of course, one cannot rule that out at this stage and we have to be prepared for it."