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Good morning.

Here’s what you need to know:

• A Putin bet that backfired.

Russia, facing tough sanctions that await only President Trump’s signature, appears to be shifting back to Cold War-style tactics.

On Sunday, President Vladimir Putin said the U.S. must reduce its diplomatic staff by 755 employees by September.

It’s the harshest such move since 1986, but one that analysts told us was among the simplest countermeasures possible. Washington’s initial response was muted.