FINANCIAL TIMES
-US and Chinese officials have started high-stakes trade talks in Malaysia, marking the beginning of a summit with President Xi Jinping in Asia. The talks, which will shape the outcome of the summit, are taking place after Beijing announced sweeping export controls on rare earths, prompting Trump to threaten an extra 100 per cent tariff on Chinese imports from November 1. The talks come a day after the US trade representative's office launched a probe into whether Beijing complied with a trade deal agreed in Trump's first term, potentially leading to further duties on Chinese imports. Trump is heading to Malaysia to meet with Xi on the first leg of a week-long Asia trip.
-In just nine months, US Treasury Secretary Michael Maga has endorsed Trump's aggressive tariff policies, overhauled the Federal Reserve, and introduced a new era of deregulation and tax cuts. He has also brought Maga to the US Treasury to probe left-leaning organizations suspected of fueling political violence, including those affiliated with George Soros. Bessent is also orchestrating a multibillion-dollar US rescue package for Argentina to support President Javier Milei, Trump's libertarian ally in Latin America. He has spoken to the Financial Times twice this month, including before announcing US sanctions on Russian oil exporters and a trip to Asia to resolve trade tensions with China.
-The Tony Blair Institute, a not-for-profit set up by former UK Prime Minister Tony Blair, is undergoing a major restructuring, including staff lay-offs, as it seeks a more sustainable funding model. The institute, which advises nearly 50 governments worldwide, has announced a new stage of its journey, including changes in senior management. The new leadership includes the appointment of a new finance chief and operating officer, as well as plans for a regional managing director in Europe. The TBI will now focus on four global functions, with an emphasis on AI and innovation, with the appointment of a new chief AI and innovation officer, Benedict Macon-Cooney. The changes come as the not-for-profit, which undertakes commercial consulting to fund pro-bono work for governments, suffered deepening losses last year.
-President Trump has outlined a fundraising initiative for the White House ballroom, which would not require the destruction of existing federal property. The project, which would not require the destruction of existing federal property, has been supported by tech giants Amazon, Google, and Meta, as well as companies seeking regulatory relief or policy changes from the Trump administration. Alphabet subsidiary YouTube has pledged its $22M settlement with Trump over the suspension of his account in 2021 to be donated to the ballroom fund. Lockheed Martin, the US government's largest defense contractor, has pledged $10M to the project, pledging to make the addition to the people's house a powerful symbol of American ideals.
-Artificial intelligence (AI) is a powerful tool that can solve complex human challenges. However, it also poses significant dangers, including job losses, misinformation, and the risk of losing control of AI as it progresses. There are no international norms or sustained technical and legal processes in place to address these issues. As the CEO of a tech company that heavily uses AI, the lack of effort to address the existential challenges it poses is astonishing. While AI has the potential to solve many problems, it is crucial to address these issues to ensure its continued development and use.
-Donald Trump has triggered global trade turmoil by approving new tariffs on China and expressing anger at Canada. The US trade representative's office is investigating whether Beijing complied with a trade deal during Trump's first term, potentially leading to further duties on imports from China. This investigation could increase tension between the world's two largest economies in the run-up to the US-China summit. The probe could allow Trump to impose new tariffs on Chinese imports if the Supreme Court strikes down levies imposed on Beijing.
-A gun shop in Arizona secured a $1bn order of ammunition for Ukraine in 2022, covering an armoury worth more than Estonia's annual defence budget. OTL Firearms, a small gun shop, had no export record, large storage facility, or expertise to take state-scale orders. Ukraine wired €17mn upfront but never received a single round of ammunition from OTL's then 30-year-old owner. A US federal judge has ordered OTL to repay the full sum, plus interest and legal fees, bringing its liability to more than €20M. The June 2022 contract called for the delivery of 10mn rounds of 23mm anti-aircraft shells, 56,000 Grad rockets, 24,000 mortar bombs, and a vast inventory of other Soviet-standard munitions.
NEW YORK TIMES
-Speaker Mike Johnson has put the House on an indefinite hiatus for the second month, causing a decline in the role of Congress and stifling the speakership. This move, driven by political expedience, could have significant consequences for the institution that has already ceded much of its power to President Trump. Johnson, who has little influence over his own members, has chosen to become subservient to Trump, a departure from past speakers who sought to act more as a governing partner with the president. Trump has joked about being both the speaker and the president, raising concerns about sharing private conversations.
-The Trump administration is planning a shake-up at Immigration and Customs Enforcement, aiming to replace senior leaders in field offices across the country. The move is a response to the slow pace of deportations, which is falling short of President Trump's goal of over a million by the end of his second term. The plans, which involve reassigning about half a dozen field office leaders, have not been finalized. The administration is still trying to meet Trump's demand for crackdown on immigration, despite his efforts to secure the border.
-About 42 million low-income Americans are set to lose access to monthly nutrition assistance in November, after the Trump administration said on Friday that it would not reconfigure the budget to provide benefits during the government shutdown.The decision, described in an Agriculture Department memo, appeared to contradict earlier guidance from the agency that said it could tap into leftover emergency funds. The move raised the risk of some of the nation’s poorest families being unable to buy food in a matter of days. Dozens of states have warned that they cannot provide benefits next month, and at least two have already paused delivering them, prompting a surge of demand at food banks and eliciting anxiety among recipients. The Supplemental Nutrition Assistance Program, or SNAP, provides one in eight people in the United States with money to buy food. Those benefits, often referred to as food stamps, average about $187 per month and cost the federal government $8B monthly. The shutdown has put funding for the program at risk. But SNAP maintains a reserve, currently estimated to be about $5B, which can help cover emergencies and shortfalls.
-Unusual Machines, a Florida-based drone company, has won its largest contract from the Pentagon, as the US government expands its procurement of drones. The company, which has a $4mn stake in Trump Jr., has been contracted to manufacture 3,500 drone motors and other drone parts. The US army plans to order an additional 20,000 components from Unusual Machines next year. The acquisition is believed to be the largest order for Unusual Machines parts from the US government to date, but the value of the contract has not been disclosed. Shares in Unusual Machines jumped as much as 13% on Friday. Trump Jr.'s stake in Unusual Machines was disclosed in November 2024.
-President Trump is set to visit Malaysia on Air Force One, where he will meet with China's top leader, Xi Jinping, and the region is undergoing a new kind of superpower rivalry. The rivalry is centered on not only troops and warships but also supply chains, ports, and data centers. Governments across Asia are increasingly being pressured to pick sides, and countries caught in the middle, like Thailand, Singapore, and Indonesia, must weigh how to benefit from the competition without being held hostage. Countries in the region want to avoid being seen as pawns for the U.S. and P.R.C.
-Russia and Ukraine are engaged in a parallel war on each other's energy assets, which could force them to negotiate more than any international diplomacy. The US and Europe have announced new sanctions on Russia's oil industry, while Ukraine has been implementing its own "long-range sanctions" through drone strikes. Russia targets Ukrainian electricity and gas infrastructure, aiming to cripple Ukraine's ability to function and sap its people's will to abide the war. Analysts believe both sides view their energy attacks as a strategic lever to break the stalemate in a conflict that has lasted nearly four years.
-Ivory Coast's long-time president, Alassane Ouattara, is facing a potential extension of his rule in an upcoming election. Ouattara, who has been in power for 15 years, is accused of using his authority to bar opponents and has criticized his crackdown on dissent. Voters in the world's largest cocoa bean producer face a choice between renewal and continuity. Despite a major political and economic turnaround in the last decade, Ouattara's crackdown on dissent remains a concern.
NEW YORK POST
-The Pentagon has accepted an anonymous $130M donation to cover military paychecks during the government shutdown, an unprecedented move that has sparked questions over its legality. President Trump announced the gift, stating that "a friend" sent a check to make up for what he called a "Democrat shutdown." The donation was made under the condition that it be used to offset the cost of service members' salaries and benefits. The Pentagon spokesman Sean Parnell said the donation was grateful for this donor's assistance after Democrats opted to withhold pay from troops. The contribution came as millions of federal employees face missed checks and shuttered offices on day 24 of the partial government shutdown, the second-longest in US history. Experts warned that the administration may not be able to legally disburse the money without congressional approval.
-Ford and General Motors have praised President Trump for reducing tariffs on big and midsized trucks from other countries. Ford CEO Jim Farley slashed its expected tariff costs by $1 billion, down to about $2 billion. General Motors CEO Mary Barra also thanked Trump for the important tariff updates. Ford reported adjusted earnings per share of 45 cents, above expectations of 36 cents. The company's turnaround program, Ford+, has been praised for its performance in the quarter, demonstrating consistent improvement. The levies are expected to make American alternatives more competitive. Ford CEO Jim Farley thanked Trump and his team for the tariff updates. General Motors also cut its projection for the levies' impact by half a billion, to between $3.5 billion and $4.5 billion. Both Ford and GM reported earnings that beat Wall Street estimates across the top and bottom lines.