politics

G7 agrees deal to ease global energy supply concerns

BY VALERIE LEROUX WITH UMBERTO BACCHI IN BRUSSELS

  • The seven countries agreed to a coordinated release through the International Energy Agency (IEA) of 100 million barrels "to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days," the leaders said in a statement released by Macron's office.
  • G7 countries agreed Friday to release 100 million barrels of diesel and crude oil to ease global energy supply concerns, as President Donald Trump hailed the decision and said the US would not impose a threatened diesel export ban.
  • The seven countries agreed to a coordinated release through the International Energy Agency (IEA) of 100 million barrels "to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days," the leaders said in a statement released by Macron's office.
G7 countries agreed Friday to release 100 million barrels of diesel and crude oil to ease global energy supply concerns, as President Donald Trump hailed the decision and said the US would not impose a threatened diesel export ban.
The announcement came following a video conference of G7 leaders chaired by French President Emmanuel Macron after Washington stepped up pressure on Europe to release strategic reserves and threatened a diesel export ban.
The talks, convened by Macron after a conversation with Trump, focused on coordinating a response to soaring fuel prices among the other G7 economies of Britain, Canada, Germany, Italy, Japan and the United States.
The US-Israeli war with Iran has sent energy prices skyrocketing, coming back to bite Trump at home with high fuel costs that have become a key issue ahead of midterm congressional elections in a month.
Trump had floated the possibility of banning US exports of diesel, which is used in trucks and other hauling vehicles, an alarming prospect for the EU, which relies heavily on fossil fuel imports.
The seven countries agreed to a coordinated release through the International Energy Agency (IEA) of 100 million barrels "to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days," the leaders said in a statement released by Macron's office.
They also said there would be no ban on diesel exports between them.
"We reaffirm our commitment to refrain from export restrictions on energy and energy products between G7 countries and call on all producers to refrain from imposing bans that could exacerbate market tensions," the leaders said.
"Our citizens' concerns about energy prices remain a top priority."
Trump said European countries had agreed to release a "massive amount" of diesel from their reserves.
"The process will begin immediately," he posted on his Truth Social network.
"Europe has a lot of diesel and they're going to be making a major world contribution -- and so are we," Trump said later, adding "Europe did a great thing". 
"And we're not going to be doing the export ban," he said.

US pressure

Earlier the EU pushed back hard against US threats to impose a diesel export ban, something Macron also warned against during his conversation with Trump.
The flurry of diplomatic activity came a day after US Treasury Secretary Scott Bessent cranked up the pressure on European nations.
"American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage," he said.
US Energy Secretary Chris Wright likewise held talks with his British counterpart Miatta Fahnbulleh on the crisis, including on the UK's strategic reserves.
British dairy farmer Keith Blackshaw, in the Derbyshire hamlet of Newhaven, complained of a "vicious circle" with high fuel prices being passed onto customers.
"I'd like to see Mr Trump support us a little bit more really," the 69-year-old said. "He looks after his own. Maybe we should do the same, look after our own."
The 32 members of the IEA agreed last March to unlock 400 million barrels of oil from reserves, their largest release ever. 
- 'Sanctions against Russia' - 
Earlier this week, IEA chief Fatih Birol said European nations had yet to release part of those stocks, which could happen soon. 
About a third was yet to come to market, Birol said, adding that further releases were possible since 80 percent of overall IEA stocks were "still in our pocket".
Diesel prices in the United States and Europe have hit record highs in recent weeks, with an export ban imposed by major producer Russia in response to Ukrainian attacks on fuel facilities also contributing to global market pressures. 
The G7 leaders said on Friday: "We will maintain sanctions against Russia while working with the IEA and global partners to prevent further spillovers into fuel, gas, and other commodity markets."
Energy prices surged in the eurozone in September, pushing inflation to 3.8 percent, the highest level in three years.
bur-ub-as/ach/jgc

justice

US jails Rubio ally for secret Venezuela lobbying

  • According to US media reports, Rivera argued that his consulting work concerned efforts to bring US oil giant ExxonMobil back to Venezuela and that his political activity was intended to remove Maduro rather than assist his government.
  • A former Republican congressman and one-time close friend of Secretary of State Marco Rubio was sentenced Friday to 10 years in prison for secretly lobbying the US government on behalf of Venezuela, media reported.
  • According to US media reports, Rivera argued that his consulting work concerned efforts to bring US oil giant ExxonMobil back to Venezuela and that his political activity was intended to remove Maduro rather than assist his government.
A former Republican congressman and one-time close friend of Secretary of State Marco Rubio was sentenced Friday to 10 years in prison for secretly lobbying the US government on behalf of Venezuela, media reported.
David Rivera was convicted in May by a federal jury in Miami of conspiracy to launder money, failing to register as a foreign agent and other charges stemming from a $50 million contract linked to Venezuela's state oil company.
Prosecutors said Rivera was hired during US President Donald Trump's first term by the government of then-Venezuelan president Nicolas Maduro to use his Republican contacts to persuade Washington to soften its policy toward Caracas.
They alleged that Rivera persuaded then-foreign minister Delcy Rodriguez -- now Venezuela's interim president -- to award him the lucrative lobbying contract paid for by energy giant PDVSA.
US District Judge Melissa Damian imposed the sentence after a hearing that lasted more than four hours, according to The Washington Post, which reported that Rivera intends to appeal and has applied for a presidential pardon.
Rivera's relationship with Rubio became a prominent feature of the case.
America's top diplomat testified at the trial in March that Rivera had once been a "close friend" and that the two shared an apartment when they were Florida lawmakers.
Rivera met with Rubio, then a US senator, twice in 2017 to discuss Venezuela's political future.
Rubio told jurors he knew nothing at the time about Rivera's alleged contract with Venezuelan officials and said he would have acted differently had he known.
"It would have been shocking to me," said Rubio, who has not been implicated in any wrongdoing.
According to US media reports, Rivera argued that his consulting work concerned efforts to bring US oil giant ExxonMobil back to Venezuela and that his political activity was intended to remove Maduro rather than assist his government.
Rivera separately faces a federal case in Washington involving allegations that he received more than $5.5 million to lobby on behalf of a Venezuelan businessman targeted by US sanctions.
ft/jgc

politics

Judge pauses construction of border project in Texas national park

  • "Effective immediately and until the Court orders otherwise, Defendants SHALL NOT build border barrier or related infrastructure, or engage in any construction or ground disturbing activities, in the Big Bend Sector until and unless Defendants comply with all applicable laws," Judge Kathleen Cardone wrote in her order.
  • A US federal judge on Friday issued an emergency injunction blocking President Donald Trump's administration from restarting border barrier and road construction across the Big Bend region in Texas.
  • "Effective immediately and until the Court orders otherwise, Defendants SHALL NOT build border barrier or related infrastructure, or engage in any construction or ground disturbing activities, in the Big Bend Sector until and unless Defendants comply with all applicable laws," Judge Kathleen Cardone wrote in her order.
A US federal judge on Friday issued an emergency injunction blocking President Donald Trump's administration from restarting border barrier and road construction across the Big Bend region in Texas.
The Department of Homeland Security plans to build vehicle barriers, patrol roads, lighting and detection technology in and around Big Bend National Park, known for its spectacular views and rich biodiversity, including hundreds of bird species, bobcats and black bears.
"Effective immediately and until the Court orders otherwise, Defendants SHALL NOT build border barrier or related infrastructure, or engage in any construction or ground disturbing activities, in the Big Bend Sector until and unless Defendants comply with all applicable laws," Judge Kathleen Cardone wrote in her order.
An underlying lawsuit filed by Friends of the Ruidosa Church, the Center for Biological Diversity, and a Big Bend-area river guide and landowner challenges the federal government's decision to waive dozens of laws in order to fast-track the $1.7 billion project across Big Bend National Park, Big Bend Ranch State Park and the wider region.
"This is a historic victory," Laiken Jordahl, national public lands advocate at the Center for Biological Diversity, told AFP. "The fight's not over, but today's injunction is a win for people and wildlife across West Texas and across the country, and it proves that no president can bulldoze a national park for political theater and expect to get away with it."
Bulldozers broke ground in August on the public lands that blend desert, river and mountain ecosystems and are home to the famed Santa Elena Canyon, before Customs and Border Protection Commissioner Rodney Scott announced a pause following fierce local opposition that crossed party lines.
But the CBP had said in a court filing this week that the pause had lapsed on September 30 and work would soon resume.
ia/pnb

AI

Trump expected to name intel chief Clayton as AI czar: reports

  • CBS News reported a day earlier that Clayton was the likely pick and that the administration had discussed keeping him in his intelligence post, with Trump expected to make a final decision shortly.
  • President Donald Trump is expected to name Jay Clayton, the US director of national intelligence, as the White House's new AI czar, CNN and other US media reported Friday.
  • CBS News reported a day earlier that Clayton was the likely pick and that the administration had discussed keeping him in his intelligence post, with Trump expected to make a final decision shortly.
President Donald Trump is expected to name Jay Clayton, the US director of national intelligence, as the White House's new AI czar, CNN and other US media reported Friday.
CBS News reported a day earlier that Clayton was the likely pick and that the administration had discussed keeping him in his intelligence post, with Trump expected to make a final decision shortly.
A White House official told CBS that any personnel announcement would come directly from the president, dismissing the reports as speculation.
Clayton would become the second person to hold the informal title after venture capitalist David Sacks, who held the role at the start of Trump's second term before stepping down.
Sacks continues to advise the president on AI, as does Nvidia CEO Jensen Huang.
Trump said last month he would create an "AI Force" modeled on the Space Force he established during his first term, and name a czar to coordinate federal AI efforts.
"Only High I.Q. individuals need apply!" he wrote on his Truth Social platform.
A longtime Wall Street lawyer, Clayton represented Goldman Sachs during the 2008 financial crisis and Barclays in its purchase of Lehman Brothers' assets.
He chaired the Securities and Exchange Commission during Trump's first term, where he largely took a pro-business stance but brought enforcement cases against the nascent crypto industry.
Crypto entrepreneurs have since become major Trump backers.
Trump tapped Clayton to lead federal prosecutors in Manhattan at the start of his second term, and the Senate confirmed him as intelligence chief in July.
He has no background in the tech industry.
The appointment would come as AI researchers warn of the technology's potential dangers, following cases of AI systems going rogue and hacking outside systems.
Trump has resisted tighter AI regulation, arguing a slowdown could hand Chinese firms an advantage and that federal law enforcement can deal with bad actors misusing the technology.
Tech bosses at a White House meeting this week signed a commitment to self-police AI, an accord Trump described as "morally binding."
arp/ksb

labor

US posts weak job growth data in September

BY ASAD HASHIM

  • Analysts polled by Dow Jones Newswires and the Wall Street Journal had expected the US economy to add 84,000 jobs in September.
  • Employment in the United States grew by 29,000 jobs in September, missing analysts' expectations significantly, with the unemployment rate rising slightly to 4.2 percent, government data showed on Friday.
  • Analysts polled by Dow Jones Newswires and the Wall Street Journal had expected the US economy to add 84,000 jobs in September.
Employment in the United States grew by 29,000 jobs in September, missing analysts' expectations significantly, with the unemployment rate rising slightly to 4.2 percent, government data showed on Friday.
Adding to the weak data, the Bureau of Labor Statistics (BLS) also revised down job figures for July and August by a combined 60,000 jobs, the department said in a statement.
The revision to July's data showed that the world's largest economy lost jobs that month, as opposed to posting a gain of 21,000 as previously reported.
The data comes ahead of key midterm elections in November where President Donald Trump's Republican Party is facing a stern test over his handling of the economy.
Trump's top economic advisor Kevin Hassett said he was "not even a little bit" disappointed in Friday's data.
Analysts polled by Dow Jones Newswires and the Wall Street Journal had expected the US economy to add 84,000 jobs in September.

Health care leads

Employment in most major sectors was largely unchanged, the BLS reported, with health care posting gains of 17,000.
The sector has propped up the labor market in the United States in the last year, as an aging population requires more care.
September's sector gains were slower than its average monthly gain of 33,000 over the last year.
"With... immigrant labor losing their status to work in the US, that restriction in labor supply is causing subdued labor growth now for health care," said Ken Kim, senior economist at KPMG.
The financial sector continued its downward slide, bringing its overall slump from a recent peak in May 2025 to 129,000.

Real wages drop

Average hourly earnings for all employees were up 3.0 percent year-on-year, with wages continuing to lag behind stubbornly high inflation -- meaning most workers are seeing real wage losses.
"It does have a big impact on households, that's why consumer confidence has been tanking," KPMG's Kim told AFP. "Because it's corrosive, (with) cumulative inflation."
Democratic Senator Elizabeth Warren seized on the data to criticize Trump's performance.
"Since the start of Trump's war, real wages have fallen 0.7 percent as his failed agenda keeps pushing prices up," she said, referring to the US war against Iran launched in late February.
The conflict has plunged the Middle East into violence and sent global energy prices skyrocketing, as Tehran's retaliatory action has targeted Washington's regional allies and choked a key trading route.

'Falling behind'

The data comes after the US Federal Reserve -- which has a dual mandate to maintain inflation at a long-term two-percent target while ensuring maximum employment -- raised interest rates last month to address high prices.
The US labor market has been largely in balance this year, with modest job gains and a steady unemployment rate.
That steadiness has allowed the Fed to focus on the inflation side of its mandate. Raising interest rates tends to cool inflation but can also limit economic activity, which can affect the job market.
This week, two key Fed policymakers indicated that the central bank may not raise rates again at its October meeting, although markets continue to expect a further hike before the end of the year. 
Friday's jobs data "lends support to the less hawkish Fed officials that indicate no need to rush and deliver the next rate hike at the end of this month," said Kathy Bostjancic, chief economist at Nationwide.
Nancy Vanden Houten at Oxford Economics disagreed, expecting upside risks to inflation to continue to dominate Fed policymakers' thinking and to see them raise rates again.
KPMG's Kim stressed that Friday's data was not positive for many households.
"Even though today's numbers were good for the market in terms of the Fed not having to hike rates, the wages (data) suggests that households are falling behind against inflation," he said.
aha/

China

Taiwan receives its first US-made F-16V fighter jets

BY AKIO WANG

  • The F-16V is a fourth-generation multi-role fighter and a significantly upgraded version of Taiwan's ageing F-16 A/B jets.
  • Taiwan received its first F-16V fighter jets made by the United States on Friday, as the island democracy upgrades its military capabilities to deter a potential Chinese attack.
  • The F-16V is a fourth-generation multi-role fighter and a significantly upgraded version of Taiwan's ageing F-16 A/B jets.
Taiwan received its first F-16V fighter jets made by the United States on Friday, as the island democracy upgrades its military capabilities to deter a potential Chinese attack.
The warplanes are part of an $8 billion deal for 66 F-16Vs approved during US President Donald Trump's first term and scheduled for delivery this year.
The arrival of the aircraft comes as Taiwan awaits Washington's approval of a separate $14 billion arms package that Trump paused after Chinese objections.
China claims Taiwan is part of its territory and has threatened to use force to seize it.
The two F-16Vs, made by US defence contractor Lockheed Martin, touched down under a clear sky at Taiwan's air force base in Taitung, on the island's southeast coast.
President Lai Ching-te hailed "a major milestone in elevating Taiwan's air defence capabilities", and thanked the United States for its "long-standing support".
The jets had been expected in early September after making refuelling stops in Hawaii and Guam.
Local media reported that the planes had turned back to Hawaii shortly after taking off for Guam. No official explanation was given.
Dozens of locals, some equipped with binoculars and long-lensed cameras, gathered near the air base's perimeter fence on Friday to watch the highly anticipated arrival of the jets.
Kimi Chi, a salesman from the central city of Taichung, had travelled through the night to be able to photograph the aircraft landing in Taitung.
He was philosophical about the delays, saying "good things take time."
"In terms of hardware capabilities, there will definitely be an improvement," the 37-year-old told AFP.
"But what we are actually lacking the most right now is pilots. Of course, I hope the government can provide better additional allowances for these military pilots."
Former Air Force serviceman Eric Chan, 57, marvelled at the improvements made to the F-16 over the past 30 years and said the fighter jets based in Taitung will "play a very important defensive role" against China.
 
"The threat from the CCP has always been there so we definitely need to strengthen our defence capabilities," Chan told AFP, referring to the Chinese Communist Party.
The F-16V is a fourth-generation multi-role fighter and a significantly upgraded version of Taiwan's ageing F-16 A/B jets.
Equipped with more advanced combat, detection and engine capabilities, the F-16V will be "a valuable addition to Taiwan's air force in countering China's military threat," said Su Tzu-yun, a military expert at the Taipei-based Institute for National Defense and Security Research.
 

'Negotiating chip'

 
The United States is Taiwan's most important security backer and biggest arms supplier. But bottlenecks have slowed delivery of critical weapons.
Taiwan's Defence Minister Wellington Koo said previously it would be "challenging" for all the F-16Vs to be delivered this year, despite Lockheed Martin ramping up production.
On Friday, Koo said more F-16Vs would be delivered to Taiwan "before the end of the year", but did not say how many. 
"At present, I think aircraft are gradually
moving through the production line, and there are also aircraft that have passed the tests," Koo said. 
"As for when they will fly back, we will coordinate further with the US side."
Trump has stalled signing off on the record $14 billion weapons purchase by Taipei, calling it in May a "very good negotiating chip" in dealings with China, which raised fears that Taiwan's security could be traded away.
Experts believe approval for the package is unlikely before the G20 summit in the United States in December where Chinese leader Xi Jinping and Trump are expected to meet for the fourth time this year. 
A US official said recently it was increasingly likely the $14 billion worth of arms, which include the Patriot air defence system, would be broken up into smaller amounts to temper China's response. 
bur-amj/tc

politics

US tells European allies to act 'immediately' to lower diesel prices

BY BEIYI SEOW

  • EU member states will meet with the European Commission Friday to discuss a coordinated response to soaring fuel prices, a Commission spokesman said.
  • The United States on Thursday told its European allies to help lower global diesel prices by releasing strategic reserves "immediately," with EU member states due to discuss the crisis on Friday.
  • EU member states will meet with the European Commission Friday to discuss a coordinated response to soaring fuel prices, a Commission spokesman said.
The United States on Thursday told its European allies to help lower global diesel prices by releasing strategic reserves "immediately," with EU member states due to discuss the crisis on Friday.
Reports said the Trump administration wants France and Germany in particular to tap their stockpiles of diesel to try to curb prices sent soaring by the US war on Iran.
"Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions," US Treasury Secretary Scott Bessent said in a post on social media.
EU member states will meet with the European Commission Friday to discuss a coordinated response to soaring fuel prices, a Commission spokesman said.
Washington is piling on pressure to get European help with fuel costs, with US President Donald Trump on Wednesday floating the possibility of banning diesel exports. 
High energy costs loom as a threat to Trump's Republican party in next month's midterm elections.
"It is in Europe's best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers," a US official told AFP.
At G20 trade talks in Milwaukee, US Trade Representative Jamieson Greer struck a conciliatory tone, saying there was an "eagerness on both sides to work together" on the diesel issue. 
And Trump told reporters in Texas on Thursday that he "may" ask European countries to release diesel reserves.

'Unexpected'

Still, EU trade chief Maros Sefcovic told reporters Thursday that any move by the US to ban diesel exports would be "unexpected for Europeans."
He spoke on the sidelines of the two-day G20 trade ministers' gathering in Milwaukee, after meeting with Greer.
Sefcovic told reporters that he did not go into details with Greer on energy exports.
But the transatlantic partners "decided to stay in close touch to avoid any surprises here," he said.
"It would have very dramatic consequences for our economic performance," Sefcovic said of any potential diesel export ban.
France's minister delegate for international trade, Nicolas Forissier, told AFP in Milwaukee: "I can't imagine that there will be a ban."
He stressed the importance of diesel to the United States and European countries, adding both sides will "try to find solutions."
"In France, we'll try to find balanced solutions all over the world," Forissier added. "If not with the Americans, it will be with other countries."
Trump on Wednesday said he was still considering a possible ban on US diesel exports, while adding that he thought it could ultimately cause gasoline prices to rise.
"I'm thinking about it," Trump told reporters in the Oval Office.
Speaking alongside Trump, US Energy Secretary Chris Wright said Wednesday that the world would "hear announcements from our friends in Europe" to push diesel prices down.
Asked about a release from strategic reserves, the French presidency said no such demand had been made when Emmanuel Macron and Trump met on the sidelines of the UN General Assembly last week.
Macron would also soon convene a video meeting of G7 leaders "to make progress on the various levers that can be used to address the rising fuel prices... including coordination on releasing reserves."
Macron announced on September 18 a plan for such a meeting. The G7 gathering is expected in mid-October, according to Macron's press office.
Average US diesel prices have surged more than 70 percent to $6.39 a gallon since the start of the Iran war, according to AAA motor club data. 
Fuel prices have caused living costs to soar, leaving Trump's Republican Party fearing it could lose control of Congress in November's midterm elections.
aue-fff-jmb-bys-aha/bgs

Israel

Trump vows to hit Iran 'very hard' if linked to flydubai attack

  • On whether the United States would retaliate against Iran if it was responsible for the attack, Trump replied: "Oh, they'll be hit very hard, don't worry."
  • US President Donald Trump said Thursday that Tehran was likely involved in an attack by a pilot on a flydubai flight to Israel and that Iran would be "hit very hard" if it was.
  • On whether the United States would retaliate against Iran if it was responsible for the attack, Trump replied: "Oh, they'll be hit very hard, don't worry."
US President Donald Trump said Thursday that Tehran was likely involved in an attack by a pilot on a flydubai flight to Israel and that Iran would be "hit very hard" if it was.
The co-pilot allegedly assaulted the captain before passengers managed to save the plane from crashing. Israel's prime minister said the man had undergone "Islamist radical indoctrination."
"I would say the answer, based on what I'm hearing, is yes but we're working on it right now," Trump said when asked by reporters at the White House whether Iran was involved in the incident on the flight from Dubai to Tel Aviv.
On whether the United States would retaliate against Iran if it was responsible for the attack, Trump replied: "Oh, they'll be hit very hard, don't worry."
The US leader's threat of retaliation came as he took a harsher tone on the stalled Iran war overall.
Trump was quoted as saying in a Time magazine interview published Thursday that it was "possible" he may resume bombing Iran after US midterm elections next month.
Republicans fear they could lose control of Congress in the November 3 election, with Trump's approval ratings at near-record lows over the Iran war and a surge in the cost of living fueled by high oil prices.
He also reiterated the threat to "annihilate" Iran that he made in his speech to the UN General Assembly last week, despite having previously cast himself as the "president of peace."
"Yeah, I would do that. It's possible," Trump told Time. "Because by annihilating Iran, we've created peace in the world. With Iran, I don't think you could ever have peace."
Iran continues to exert control over the strategic Strait of Hormuz more than seven months after the initial US and Israeli attacks on the Islamic Republic. Trump says the war is about preventing Iran from developing a nuclear weapon.
The United States was meanwhile set to send a third US aircraft carrier and up to 10,000 extra service members to the Middle East by the end of November, the Wall Street Journal reported.
It was not immediately clear if the new carrier, the USS Theodore Roosevelt, would replace one of the two carriers already in the region.
Trump had told aides he expected to resume bombing by late November, the Journal quoted him as saying.
dk/mlm

armament

Musk returns to US government for Pentagon war study

  • In a speech Wednesday at the Quantico military base, Pentagon chief Pete Hegseth said "Project Meridian" will be "an effort led by America's best minds to study the future of warfare."
  • Tech billionaire Elon Musk will make a return to officially advising US President Donald Trump's government by co-leading what the Pentagon called a study on the future of war.
  • In a speech Wednesday at the Quantico military base, Pentagon chief Pete Hegseth said "Project Meridian" will be "an effort led by America's best minds to study the future of warfare."
Tech billionaire Elon Musk will make a return to officially advising US President Donald Trump's government by co-leading what the Pentagon called a study on the future of war.
Musk served as head of the Department of Government Efficiency (DOGE), where he spearheaded sweeping job cuts across the US federal government, before departing in May 2025.
In a speech Wednesday at the Quantico military base, Pentagon chief Pete Hegseth said "Project Meridian" will be "an effort led by America's best minds to study the future of warfare."
"We are leveraging a unique source of American advantage, one our adversaries do not have: our innovators, our senior leaders and our technologists," Hegseth said.
Musk will be a co-leader of Project Meridian alongside Palmer Luckey, the 34-year-old co-founder of defense technology company Anduril Industries, and Newt Gingrich, the 83-year-old Republican former House speaker.
Musk's companies are already major Pentagon contractors, including SpaceX building satellite networks for Trump's planned "Golden Dome" missile defense shield.
His artificial intelligence firm xAI this year signed a deal allowing the military to use its Grok chatbot on classified systems.
In 2024, Musk threw his support behind Trump and helped his return to the White House, but the men later had a high-profile blow-up over the president's spending legislation.
The two have since reconciled, and Musk has again become a frequent presence at the White House, though less visibly than during his previous stint, when he often visited the Oval Office, most memorably with his young son on his shoulders.
On Tuesday he was seated next to Trump at a lunch with artificial intelligence executives, where he joined other tech leaders in signing a voluntary AI safety accord that the president described as "morally binding."
Last week, Musk attended the state dinner Trump hosted for Chinese President Xi Jinping, and in May he flew to Beijing on Air Force One as part of the business delegation accompanying Trump on his state visit to China.
He also resumed giving to Republican causes, including multimillion-dollar donations to individual candidates and conservative political groups.
Musk, who spent more than $250 million backing Trump and other Republicans in the 2024 election, has given at least $90 million toward November's midterm elections, according to tallies of Federal Election Commission filings.
Hegseth said the project's purpose is to "creatively look to the future and identify the domains that we must conquer and capabilities we must master."
Project members will include hand-picked private sector leaders and subject matter experts from across the innovation, academic and policy ecosystems.
Hegseth said he has directed Project Meridian's findings to be completed and submitted within 120 days.
bur-arp/mjf

arrest

Malawi ex-army chief arrested following allegations over Sudan arms

  • "The charges arise from allegations concerning his role in facilitating illegal arms trafficking in June and July 2025," the Anti-Corruption Bureau (ACB) said in a statement announcing Phiri's arrest.
  • Malawi's anti-corruption agency said it arrested the previous army chief on Thursday on allegations including dealing in property linked to "terrorism".
  • "The charges arise from allegations concerning his role in facilitating illegal arms trafficking in June and July 2025," the Anti-Corruption Bureau (ACB) said in a statement announcing Phiri's arrest.
Malawi's anti-corruption agency said it arrested the previous army chief on Thursday on allegations including dealing in property linked to "terrorism".
General Paul Valentino Phiri's arrest comes months after the Platform for Investigative Journalism (PIJ) reported unverified allegations, based on purported US intelligence, that Malawi military personnel may have helped Sudanese rebels acquire heavy weaponry.
"The charges arise from allegations concerning his role in facilitating illegal arms trafficking in June and July 2025," the Anti-Corruption Bureau (ACB) said in a statement announcing Phiri's arrest.
The retired general was facing five counts "relating to abuse of office and dealing in terrorist property", it said, giving no other details.
Phiri, 54, was head of the Malawi Defence Force from July 2023 until October 2025, the month after former president Lazarus Chakwera lost the general election.
Phiri's lawyer, Powell Nkutabasa, told AFP the main allegations were misuse of office, contravening procurement procedures and dealing in "terrorist" property.
"He was asked to report to the ACB today and he was arrested when he got there," Nkutabasa said.

War in Sudan

In a report in July, the PIJ claimed the bureau had received a complaint alleging US intelligence believed top Malawi military personnel may have helped to secretly funnel heavy weaponry to Sudan. 
It reported that multiple sources said the CIA had tracked an operation in which weapons were allegedly briefly offloaded from a cargo aircraft that landed at Lilongwe's Kamuzu International Airport and reloaded onto a flight to Sudan via Chad.
The weapons were said to include heavy military equipment and missiles, with documents allegedly identifying the Malawi Defence Force as the end-user, it said.
PIJ said it was not clear who had flagged the matter to the ACB and it had not seen the complaint or the alleged intelligence itself.
The Malawi Defence Force confirmed at the time it was aware of the matter and had been approached by the ACB but could not comment further.
Sudan's paramilitary Rapid Support Forces (RSF) have been locked in war with Sudan's regular army since April 2023. 
The army has accused the UAE of supporting the RSF with weapons and mercenaries sent via Chad, Libya, Kenya and Somalia, by land and air, which it denies.
str/br/gil

defense

Hegseth says US cut number of generals, admirals by 20%

BY W.G. DUNLOP

  •   - Cutting 'fat' -   Hegseth ordered major cuts to the US military -- including a 10-percent reduction to the overall number of generals and admirals, and a 20-percent decrease in the highest four-star ranks -- in May 2025.
  • Defense Secretary Pete Hegseth announced Wednesday that the United States has slashed the number of its generals and admirals by 20 percent, in a move he said is aimed at "accountability."
  •   - Cutting 'fat' -   Hegseth ordered major cuts to the US military -- including a 10-percent reduction to the overall number of generals and admirals, and a 20-percent decrease in the highest four-star ranks -- in May 2025.
Defense Secretary Pete Hegseth announced Wednesday that the United States has slashed the number of its generals and admirals by 20 percent, in a move he said is aimed at "accountability."
Hegseth suggested the cuts targeted officers who failed to get on board with his efforts to ensure the military is focused on war-fighting rather than the "woke" policies of previous administrations, describing the reductions as an "accomplishment."
"The number-crunchers say we fired 10 percent of the generals and admirals across the force," Hegseth told troops at the Quantico military base, saying: "We've also reduced the overall number of general officer slots by an additional 10 percent."
"So yes, 20 percent reduction across the board," he said. "The media calls that a purge. I call it accountability, and long overdue."
The address to junior officers and enlisted personnel at Quantico came a year after a similar speech to top officers in which Hegseth said the US military was too fat, too focused on leftist "woke" ideas, and in need of major shake-up.
He said Wednesday that top officers who "responded positively" to the previous speech are "leading newly focused and newly empowered and disciplined formations," while those who did not "no longer work here."
"We are no longer the woke department, or the weak department," Hegseth said.
"Simple translation of that: no fatties, no trannies, no beardos, no weirdos, no wimps, no radicals. Just warriors -- just tough, ready, committed troops."
 

Cutting 'fat'

 
Hegseth ordered major cuts to the US military -- including a 10-percent reduction to the overall number of generals and admirals, and a 20-percent decrease in the highest four-star ranks -- in May 2025.
There were 831 active duty US generals and admirals as of the end of that month, but Pentagon figures from the end of July 2026 -- the latest available -- showed there were actually more top officers -- a total of 851.
Asked to clarify if the 20 percent cuts had been completed or were still ongoing, the Pentagon said: "We have nothing further to provide beyond the secretary's comments."
During his confirmation hearing in January 2025, Hegseth argued that the Pentagon's bureaucracy was top-heavy and in need of cuts.
"It's going to be my job, working with those that we hire and those inside the administration, to identify those places where fat can be cut, so it can go toward lethality," he told lawmakers at the time.
Since returning to office early last year, Trump has overseen a purge of top military personnel, including the chairman of the Joint Chiefs of Staff, general Charles "CQ" Brown, whom he fired without explanation in February 2025.
Other senior officers pushed out include the heads of the US Army, Navy and Coast Guard, the general who headed the National Security Agency, the vice chief of staff of the US Air Force, a Navy admiral assigned to NATO, and three top military lawyers.
The chief of staff of the Air Force also announced his retirement without explanation just two years into a four-year term, while the head of US Southern Command retired a year into his tenure.
Hegseth has insisted the president is simply choosing the leaders he wants, but Democratic lawmakers have raised concerns about the potential politicization of the traditionally neutral US military.
 

Project co-led by Musk

 
In his speech, Hegseth also announced a new project on "the future of warfare" co-led by Elon Musk, marking the tech billionaire's return to a role in President Donald Trump's administration.
Hegseth said "Project Meridian" will be "an effort led by America's best minds to study the future of warfare" under the Pentagon's top technology official Emil Michael.
Musk will be a co-leader alongside Palmer Luckey, the 34-year-old co-founder of defense technology company Anduril Industries, and Newt Gingrich, the 83-year-old Republican former House Speaker.
Hegseth said the project's purpose is to "creatively look to the future and identify the domains that we must conquer and capabilities we must master," though he stressed the project is not about developing new strategies or policies.
The project will include hand-picked private sector leaders and subject matter experts, with findings expected to be completed and submitted within 120 days.
wd/pnb/hol/ami

AI

US government's new AI chatbot pulls back from debunking Trump

BY ANUJ CHOPRA

  • The chatbot, however, continued to debunk some of Trump's other contentious claims on Wednesday.
  • US President Donald Trump unveiled what he called a "damn good" AI chatbot, but it quickly drew attention for contradicting some of his contentious political claims. 
  • The chatbot, however, continued to debunk some of Trump's other contentious claims on Wednesday.
US President Donald Trump unveiled what he called a "damn good" AI chatbot, but it quickly drew attention for contradicting some of his contentious political claims. 
A day later, however, it stopped answering some political questions.
"Hello, America. Whatever you need from government, start here," reads the America.gov platform, which Trump launched on Tuesday in a bid to simplify access to government information and federal services.
The chatbot soon began contradicting Trump on controversial subjects such as the 2020 presidential election, which he wrongly claims to have won, and the January 6, 2021 insurrection that saw a violent mob attacking the US Capitol.
"On its first day, America.gov harnessed facts and official documents to contradict some of the false narratives and political framing about immigration and elections heavily promoted by the administration that built it," said the Digital Democracy Institute of the Americas.
"Initial analyses found that America.gov generally provided evidence-based answers backed by government records, even when those records contradicted claims made by Trump and his administration."
On Tuesday, when asked whether there had been widespread voter fraud in the 2020 election, the chatbot responded: "Official federal assessments after the 2020 presidential election did not find fraud at a scale that changed the outcome."
Democratic lawmakers quickly promoted the chatbot's responses about the election.
"Finally, a straight answer from someone in the Trump administration," Senator Adam Schiff of California wrote on X on Tuesday, alongside a screenshot of the chatbot's statement that former president Joe Biden had won the 2020 election.
On Wednesday, however, the chatbot changed its tune when asked the same question. "I do not provide political commentary or analysis of past elections," it said.
It was unclear whether the Trump administration had tweaked the settings to prevent the chatbot from debunking the president.
"America.gov will continue to be updated to provide Americans the most accurate and reliable federal information and resources," a White House official said in a statement to AFP, without elaborating.
The chatbot, however, continued to debunk some of Trump's other contentious claims on Wednesday.
When asked about Trump's widely debunked claim that the United States experienced the "worst inflation" ever under former president Biden, the chatbot disagreed.
"No. Official Bureau of Labor Statistics (BLS) Consumer Price Index (CPI-U) data do not show the highest US inflation on record during 2021–2025."
"'Worst inflation ever' is not supported by the official CPI record."
The launch of the new government platform comes as growing cyber incidents have raised concerns around the world about risks posed by uncontrollable AI, with some tech executives urging a slow-down for safety.
Trump has dismissed those concerns as a conspiracy to undermine US economic growth and hamper competition with China.
ac/sla

trade

US pushes against overproduction with eye on China at G20 meeting

BY BEIYI SEOW

  • "We're releasing a Milwaukee framework to take coordinated action on steel excess capacity," top US trade official Jamieson Greer told reporters Wednesday.
  • The United States is pushing for action against excess industrial capacity that drives prices down unfairly, Washington's top trade envoy said Wednesday on the sidelines of a G20 meeting, with some countries -- excluding China -- agreeing to a plan that includes reducing subsidies.
  • "We're releasing a Milwaukee framework to take coordinated action on steel excess capacity," top US trade official Jamieson Greer told reporters Wednesday.
The United States is pushing for action against excess industrial capacity that drives prices down unfairly, Washington's top trade envoy said Wednesday on the sidelines of a G20 meeting, with some countries -- excluding China -- agreeing to a plan that includes reducing subsidies.
The developments came as officials from the Group of 20 major economies convened in the Midwestern city of Milwaukee over two days, with a group of countries separately agreeing on a framework to counter "persistent" excess steel production.
Overcapacity is a criticism often leveled against China, with accusations that it produces more than it consumes, flooding markets. Beijing rejects these claims.
"We're releasing a Milwaukee framework to take coordinated action on steel excess capacity," top US trade official Jamieson Greer told reporters Wednesday.
"Every country will do what they think is appropriate. We want to coordinate those measures," Greer added. "The United States has taken robust measures, and it probably makes sense for other countries to do that too."
He did not elaborate on whether he meant for countries to raise trade barriers on Chinese steel.
The framework was released after a meeting of the Global Forum on Steel Excess Capacity. Its 28 members include the European Union, Australia, Japan and South Korea -- but not China.
Asked about his message to partners this week on overcapacity, China's international trade representative Li Chenggang told AFP early Wednesday that G20 members had yet to discuss the topic.
Besides plans to reduce or eliminate "market-distorting subsidies," members of the steel global forum also agreed to boost data sharing to help identify "suspicious patterns of steel trade," according to the framework.
It added that, if needed, members would also take "trade measures" against countries that overproduce. Such measures could include tariffs.

Few breakthroughs 

As G20 trade ministers opened talks Wednesday, a traditional "family photo" was taken twice, allowing European leaders to be separated from Russia's representative, sources told AFP.
European leaders have declined to appear with Russia in G20 photos, with some noting this year that doing so sends a troubling message following Moscow's 2022 invasion of Ukraine. 
US President Donald Trump's global tariffs also cast a pall over the G20 talks, pushing countries to seek cooperation outside the world's biggest economy.
The meetings come amid a deepening US-Canada trade war, waves of US tariffs and Trump's investigations into member countries over excess industrial capacity.
Analysts expect few breakthroughs as trade tensions simmer.
Countries are seeking deals with the Trump administration, with India pushing to get a trade pact over the finish line. Brazil said it held a "constructive" in-person meeting with Greer too.
Still, the threat of further tariffs looms even over those that have struck deals, as US investigations into overcapacity target 16 trading partners including China, the EU, Japan and India.
Polish Finance Minister Andrzej Domanski urged Wednesday for a lowering of trade barriers.
"I do hope that our US partners will stick to all settlements that were made," he added, referring to an earlier deal between the United States and the European Union to cap Trump's duties on the bloc at 15 percent.
Of such tariff deals, Greer told reporters Tuesday: "We will certainly take them into account."
But he added that he was not in a rush to reach a pact with Canada, where certain products now face a US ban due to their trade spat.
"Eventually, it will happen," he said.
Also on the agenda this week are efforts to eliminate forced labor and the targeting of food access to pressure others.
Domanski condemned "all actions taken by Russia against the export of agriculture products from Ukraine" in their war.
Poland is not a permanent G20 member but has been invited to the table this year as Washington holds the grouping's rotating presidency. In turn, US officials have excluded South Africa.
The G20 trade ministerial comes after finance ministers met in Asheville, setting the stage for a leaders' summit in Miami.
The G20 comprises 19 nations plus the EU and the African Union.
bys/pnb

Fed

Watchdog clears former US Fed chief Powell in renovation probe

BY ASAD HASHIM

  • "At no point during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law had occurred," the Office of the Inspector General (OIG) of the Federal Reserve said in its report.
  • Donald Trump on Wednesday demanded former central bank chief Jerome Powell quit the body's board, despite a watchdog finding no criminal misconduct in a costly Federal Reserve renovation project.
  • "At no point during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law had occurred," the Office of the Inspector General (OIG) of the Federal Reserve said in its report.
Donald Trump on Wednesday demanded former central bank chief Jerome Powell quit the body's board, despite a watchdog finding no criminal misconduct in a costly Federal Reserve renovation project.
"At no point during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law had occurred," the Office of the Inspector General (OIG) of the Federal Reserve said in its report.
In April, the Department of Justice dropped a criminal probe into the then-chairman over the cost overruns after Trump repeatedly criticized and insulted Powell over interest rate policy.
In his second term, Trump had launched an unprecedented assault on the Fed's independence as he demanded the central bank cut rates to spur economic activity.
The charges were dropped after a senator from Trump's own party refused to confirm the president's chosen successor to Powell, saying he would only do so if the criminal probe was stopped.
At the time, US Attorney Jeanine Pirro said she would bow to the inspector general's findings.
But on Wednesday, Trump demanded Powell be "forced to resign" from the Fed's board over the issue and said he was directing his Attorney General to "study the report."
"If he doesn't resign, he should be sued, at the highest level," said Trump.

Unprecedented assault

Powell took the helm of the Fed during Trump's first presidency in 2018 and was subsequently reappointed to the position under Democratic president Joe Biden.
When he announced that the DOJ probe had been launched in January, Powell explicitly said it was meant to pressure the Fed to set interest rates in line with Trump's preferences.
In a highly unusual move, he did not resign his post on the Fed's Board of Governors when his term as chair ended in May.
At the time, Powell said he would not leave that position until the probe over the cost overruns was "well and truly over, with transparency and finality."
Trump's campaign against the Fed's independence has also seen him attempt to unseat another Fed governor, Lisa Cook, over mortgage fraud allegations that she denies.
In June, the Supreme Court sided with Cook and ruled that Trump could not summarily dismiss her over unproven allegations.
In August, however, the White House doubled down on its attempt to fire Cook.
On Wednesday, Democratic Senator Elizabeth Warren said the OIG's report proved that Trump's DOJ has "no basis to restart the President's witch hunt against former Fed Chair Jerome Powell."
"The President should quit trying to fire Fed governors to cover up for his economic failures and instead stop his chaotic tariffs and end his war in Iran."

Management deficiencies

The OIG's investigation centered around a major building renovation project at the Fed's Washington headquarters whose cost estimates grew from $1.3 billion in February 2020 to $2.4 billion in December 2024.
In its report -- which was dated Tuesday but made available online on Wednesday -- the OIG said that its probe found deficiencies in management of the renovation project, but "did not identify administrative misconduct during our evaluation."
It made a series of recommendations to address those problems, including the appointment of an independent body to oversee costs and the construction schedule, and the ordering of an audit of the project.
In a letter attached to the report, Fed Chair Kevin Warsh pledged to implement the OIG's recommendations.
"With the changes we are putting in place, we will deliver a superior result for this project and add to our strengths as an institution," he wrote.
aha/pnb

US

US-led coalition ends mission in Iraq

BY CHRISTY-BELLE GEHA

  • - 'Sovereignty' - The US-led coalition did not defeat IS alone -- Kurdish Peshmerga fighters played an important role, as did powerful Iraqi factions, including pro-Iran groups that have yet to disarm.
  • A US-led coalition deployed in Iraq more than a decade ago to fight jihadists concluded its mission Wednesday, a move celebrated by the country's leaders and President Donald Trump despite fears of emboldened pro-Iran armed factions.
  • - 'Sovereignty' - The US-led coalition did not defeat IS alone -- Kurdish Peshmerga fighters played an important role, as did powerful Iraqi factions, including pro-Iran groups that have yet to disarm.
A US-led coalition deployed in Iraq more than a decade ago to fight jihadists concluded its mission Wednesday, a move celebrated by the country's leaders and President Donald Trump despite fears of emboldened pro-Iran armed factions.
Coalition troops deployed to Iraq and Syria in 2014 to fight the Islamic State group, which had seized large swathes of territory, committed massacres, and forced thousands of women and children into slavery.
The group was defeated in Iraq in 2017 and in Syria in 2019, but coalition forces stayed on to battle its remnants.
The United States and Iraq agreed in 2024 to wind down the mission, and US troops withdrew gradually from bases across the country, restricting their presence to the autonomous northern Kurdistan region.
"This Day is a victory for the United States, a victory for Iraq, and a decisive victory over ISIS," President Trump posted, referring to the Islamic State group.
"I had a choice to stay or to leave, and felt, without question, that it was time for America to go home!" he added.

'Sovereignty'

The US-led coalition did not defeat IS alone -- Kurdish Peshmerga fighters played an important role, as did powerful Iraqi factions, including pro-Iran groups that have yet to disarm.
The Iraqi government believes it will deprive Iran-backed factions of the excuse they have used to retain their arsenal.
But many fear the pullout might boost the pro-Iran factions and draw the country deeper into the Middle East war.
Hours after the US announced the completion of the pullout, supporters of those groups gathered in a flag-lined public space to celebrate, with speeches delivered from a stage decorated with model drones.
Speaking at the event, a military spokesman for Kataeb Hezbollah, Jaafar al-Husseini, said the factions had been in talks on "regulating" their weapons but "have not yet received a response from the Iraqi government".
As such, they were "not bound by any timeline or agreement" to surrender their weapons, he added, and retained "the right to directly respond to any American or Zionist violation of Iraq's sovereignty".
Iraqi Prime Minister Ali al-Zaidi said "a new phase has begun, defined by Iraq's sovereignty, the strength of its institutions (and) the readiness of its forces."

Intensified attacks

Zaidi, who came to power this year with the US's blessing, has vowed to ensure that armed factions hand over their weapons.
His government set September 30 as the deadline for factions to disarm, but later withdrew the deadline as talks continued to "regulate" weapons.
Kurdish military commander Sirwan Barzani expressed disquiet over the withdrawal, saying: "We have no means to protect the skies of Kurdistan."
He nonetheless told AFP that the Peshmerga forces remained prepared to confront any threats, stating that their capabilities had "improved significantly thanks to the training, assistance and armament provided by the coalition".
Kurdish leader Masoud Barzani also insisted on Wednesday that there was "extremely good coordination with the Iraqi federal government to confront any type of threat".
With several Iran-backed groups refusing to disarm, senior politicians are now hoping to work out a compromise.
Factions have put forward conditions that include not only the withdrawal of foreign troops but also an end to American political and economic interference.
Kataeb Hezbollah has said the withdrawal of "the occupation forces... is a start towards achieving full sovereignty".
But the group also threatened Zaidi's government.
"A government that doesn't work for the good of its people will be brought down by all possible means," it said.
Pro-Iran groups have long demanded the withdrawal of US troops, targeting them with drones and missiles, and triggering US retaliatory strikes that killed several faction commanders over the years.
During the Middle East war that began with US-Israeli strikes on Iran, Tehran and allied factions intensified their attacks in Iraq, targeting US-led troops in the Kurdistan region.
bur-rh/ser/pnb

growth

US reports firm Q2 economic growth, inflation steady

BY ASAD HASHIM

  • The BEA also revised upwards its estimate of GDP growth in the first quarter of this year by 0.4 percentage points to 2.5 percent.
  • The United States on Wednesday estimated stronger second-quarter GDP growth than previously reported, with inflation remaining steady and private payrolls increasing more than expected. 
  • The BEA also revised upwards its estimate of GDP growth in the first quarter of this year by 0.4 percentage points to 2.5 percent.
The United States on Wednesday estimated stronger second-quarter GDP growth than previously reported, with inflation remaining steady and private payrolls increasing more than expected. 
The US Commerce Department revised upwards its estimate for Q2 GDP growth in the world's largest economy by 0.7 percentage points to 2.2 percent.
"The contributors to the increase in real GDP in the second quarter were consumer spending, investment, and exports. Imports, which are a subtraction in the calculation of GDP, increased," the Bureau of Economic Analysis said in a statement.
The new data will come as a boost to US President Donald Trump as his Republican Party heads into key midterm elections in November, with the state of the economy a major issue for voters.
Analysts said much of the upward revision came from sectors exposed to the Artificial Intelligence (AI) technology boom.
"The annual revisions show AI contributed more to growth and less to inflation in recent years than previously thought," said Michael Pearce, chief US economist at Oxford Economics.
The BEA also revised upwards its estimate of GDP growth in the first quarter of this year by 0.4 percentage points to 2.5 percent.
That change was primarily driven by upward revisions to consumer spending and services exports, the department said.

Inflation steady

In a separate release, the BEA said the US Federal Reserve's preferred inflation gauge stood at 3.4 percent year-on-year in August, unchanged from the month before after a revision to the July data.
US households and businesses have been battered by years of high prices since the pandemic, with the Fed missing its long-term two-percent target for inflation since early 2021.
Earlier this month, the Fed raised interest rates for the first time in three years to combat the inflation.
The Personal Consumption Expenditures (PCE) price index, the Fed's targeted gauge, covers a broader range of household spending than the other benchmark metric, the Consumer Price Index (CPI).
US inflation has been stoked by some of Trump's policies, including his imposition of widespread tariffs. His launching of the Iran war has sent global energy prices skyrocketing, with US consumers paying an average of 50 percent more at the pump.
Core PCE inflation, which strips out volatile energy and food prices, came in at 3.0 percent year-over-year.
Markets are closely watching inflation data to gauge the Fed's next move. On Tuesday, an influential US central banker said there was no "urgency" to raise rates again, even as he indicated one more rate hike could be needed before the end of the year.
Wednesday's revisions to PCE data were due to planned methodological changes, including to how the BEA calculates prices for computer-related products, portfolio management and legal services.  
Bernard Yaros, also of Oxford Economics, said the new PCE data was unlikely to sway the Fed from its path of monetary policy tightening, especially given upside risks to energy prices from the Iran war.
"Core inflation is still hovering well above target, and risks are firmly stacked to the upside because of the sharp rise in refined petroleum product prices in recent months," he said.

Private payrolls bounce back

The US labor market has been largely stable this year, allowing the Fed to concentrate on the inflation side of its dual mandate.
On Wednesday, payroll firm ADP reported that US private sector hiring had bounced back strongly in September, after registering its slowest pace this year the month before.
Private sector job growth came in at 90,000 last month, up from 38,000 the month before and well above market expectations. 
"It's a strong report," said Nela Richardson, ADP's chief economist. "After a three-month slowdown, job creation rebounded and pay growth remained solid."
ADP's data is closely monitored ahead of official employment numbers due Friday, although the reports can diverge.
Analyst Matthew Martin said ADP's data underscored "the strength of the labor market."
It "will bolster market expectations for firmer monetary policy from the Federal Reserve as it seeks to ensure inflation is tamped out," he added.
aha/

trade

G20 trade officials meet under shadow of tariffs, overcapacity

BY BEIYI SEOW

  • Although the Supreme Court struck down Trump's country-specific tariffs in February, Washington has since alleged insufficient action against forced labor to slap new tariffs on 60 economies.
  • G20 trade ministers are set to open talks Wednesday in the United States, in meetings strained by President Donald Trump's tariffs as Washington targets partners regarding forced labor and overcapacity.
  • Although the Supreme Court struck down Trump's country-specific tariffs in February, Washington has since alleged insufficient action against forced labor to slap new tariffs on 60 economies.
G20 trade ministers are set to open talks Wednesday in the United States, in meetings strained by President Donald Trump's tariffs as Washington targets partners regarding forced labor and overcapacity.
The gathering of officials from the Group of 20 major economies -- which includes China, India, Russia, Japan, Germany and France -- takes place in the Midwestern city of Milwaukee.
But analysts expect the two days of talks to be deadlocked as Trump's tariffs weigh on relationships while China rejects concerns about its exports, which critics see as driven by excess industrial capacity.
US Trade Representative Jamieson Greer defended Washington's approach at a Tuesday roundtable in Milwaukee, saying the administration "is not anti-trade."
He added that countries are facing similar challenges with global overcapacity and "non-market policies."
This week, key US trading partners like Canada and the European Union are also expected to push for deeper trade ties outside the United States.
"Don't expect any breakthroughs in Milwaukee," Josh Lipsky of the Atlantic Council think tank told AFP, noting Trump's preference for bilateral negotiations.
Even as G20 partners will be anxious to find ways to cooperate with the world's biggest economy, "they will also be under pressure to voice their concerns with tariffs," added former US trade official Wendy Cutler, now at the Asia Society Policy Institute.
The United States holds the rotating presidency of the G20, which comprises 19 nations plus the EU and the African Union.
— 'Unfairly targeted' —
Trump has unleashed a barrage of tariffs on trading partners since last year, separately targeting sectors like steel and autos.
Although the Supreme Court struck down Trump's country-specific tariffs in February, Washington has since alleged insufficient action against forced labor to slap new tariffs on 60 economies.
These include China, India and the EU.
The president's sectoral duties remain intact too, straining ties.
And Washington is investigating 16 partners over excess industrial capacity, a complaint commonly levied at China. Critics say this floods markets, unfairly suppressing prices.
But ongoing US probes go beyond the world's number two economy, bringing the threat of more tariffs to the EU and G20 countries like Japan and South Korea.
Cutler expects some countries will "mince no words" regarding the investigation, feeling "they are being unfairly targeted."
China "will continue to deny the issue of exporting overproduction," by trying to convince others that it is doing good by providing high-quality and low-priced goods, she said.
"This will be a hard sell," Cutler told AFP, as countries see employment and commercial fallout from waves of Chinese imports.
"Meanwhile, members are wondering how much they should agree to with the Trump administration, given trade policy could change in the US after 2028," Lipsky said, referring to the next US presidential election.
— Diversifying — 
With Trump's trade wars, all eyes are on G20 members' efforts to deepen trade ties outside the US, or strike deals with his administration.
Canada and the EU are expected to try and boost trade and investment with others, as a spat between Ottawa and Washington intensifies.
Canada's international trade minister Maninder Sidhu stressed Ottawa's support for "open, predictable and rules-based trade."
He plans to speak with partners to "reinforce a multilateral trading system," as officials try to diversify an economy they see as too reliant on an increasingly protectionist United States.
Others like India could finalize a long-awaited trade deal with the United States. Observers are also monitoring for signs of further pressure on Iran.
Outside the G20, workers and activists are protesting what they see as the Trump administration's broken promises to improve conditions for workers, farmers and smaller businesses.
John Drew, who chairs the political arm of the United Auto Workers union in Wisconsin, laments the loss of manufacturing jobs in the state.
While the UAW does not rule out using targeted duties to protect jobs, he said, Trump's sweeping "use of tariffs has done nothing to bring back jobs and rebuild manufacturing."
bys/mlm

immigration

US Supreme Court lifts limits on third-country deportations

  • In a brief to the Supreme Court, opponents of lifting the restrictions argued that the lower court ruling did not fully block all third-country deportations, "it simply requires them to do so lawfully."
  • The US Supreme Court on Tuesday lifted restrictions on the deportations of immigrants to countries that are not their own, while agreeing to hear the issue on its merits in December.
  • In a brief to the Supreme Court, opponents of lifting the restrictions argued that the lower court ruling did not fully block all third-country deportations, "it simply requires them to do so lawfully."
The US Supreme Court on Tuesday lifted restrictions on the deportations of immigrants to countries that are not their own, while agreeing to hear the issue on its merits in December.
The conservative-dominated high court granted an emergency request by the Trump administration to suspend a lower court ruling that restricted, but did not outright ban, so-called "third-country removals."
The lower court had said people targeted with deportation must be given effective notice ahead of time about where they are being sent to allow them to raise concerns about potential persecution.
The three liberal justices on the nine-member bench said they would not have granted the administration's request.
President Donald Trump campaigned on promises to expel millions of undocumented migrants from the United States and has taken several actions aimed at speeding up deportations since returning to the White House in 2025.
The Trump administration has defended third-country deportations as necessary since the home nations of some of those who are targeted for removal sometimes refuse to accept them.
In a brief to the Supreme Court, opponents of lifting the restrictions argued that the lower court ruling did not fully block all third-country deportations, "it simply requires them to do so lawfully."
Trump's solicitor general, John Sauer, meanwhile told the court that the rapid deportation to third countries was "an essential tool to remove certain aliens, including some of the worst criminal aliens."
The lower court ruling "created substantial logistical problems" with removals, he said.

'Indefensible'

An AFP investigation found that the US has offered multimillion-dollar deals and threatened visa restrictions in a bid to get "third countries," especially in Africa, to take such deportees.
Once in these countries -- and outside US jurisdiction -- deportees have been subject to abuse by local guards, indefinite detention, or quickly re-deported to their home countries.
According to an investigation published last week, the United States has deported more than 25,000 people under secretive agreements with 35 countries to take migrants with no ties to those nations.
The investigation by Forbidden Stories found the administration has earmarked $410 million to be paid directly to the receiving countries, or to United Nations agencies to facilitate the returns.
The vast majority of the deportees -- around 20,000 -- were sent to Mexico, but the rest were dispersed to 27 other countries across Latin America, Africa, and the Pacific, and agreements have been finalized with seven more. 
Congress has made it US policy not to deport people to countries where their lives would be in danger or they could be subject to torture.
After the high court's ruling, some Democratic lawmakers were calling for more formalized steps to prevent such deportations and uphold due process.
"Congress must step in. No one should be shipped off to a country that is not their own without basic due process and a meaningful opportunity to raise legitimate fears for their safety," House Democrat Lois Frankel said on X. 
Rob Menendez, another congressional Democrat, called the Supreme Court's decision "indefensible."
"Taxpayers shouldn't fund tearing people from the only home they've ever known, nor should our legal system fast-track these unilateral deportations."
sst-des/mlm/sla

AI

Trump touts AI boss pledge to self-regulate

BY AURéLIA END

  • Trump said the tech bosses had signed a deal that would put on paper their commitment to self-regulate in a morally binding agreement that would not be legally enforceable.
  • US President Donald Trump on Tuesday said the tech executives gathered at the White House to discuss regulating AI had signed a "morally binding" commitment to build adequate safeguards on the fast-moving technology.
  • Trump said the tech bosses had signed a deal that would put on paper their commitment to self-regulate in a morally binding agreement that would not be legally enforceable.
US President Donald Trump on Tuesday said the tech executives gathered at the White House to discuss regulating AI had signed a "morally binding" commitment to build adequate safeguards on the fast-moving technology.
"They're going to police themselves," Trump said after the meeting that gathered the top leaders in artificial intelligence, including Nvidia's Jensen Huang, OpenAI's Greg Brockman and Anthropic's Dario Amodei.
Trump said the tech bosses had signed a deal that would put on paper their commitment to self-regulate in a morally binding agreement that would not be legally enforceable.
But the final document, dubbed the White House Accord, left the door open "to codify these steps into laws or regulations" if it made sense over time.
Speaking to reporters outside the Oval Office surrounded by the world's most powerful tech titans, Trump also confirmed he would officially rename the technology "super intelligence" instead of artificial intelligence, "because it's not artificial."
Hours later he released an executive order in which he says the terms super intelligence and SI shall be used by the federal government whenever possible, because "'Super Intelligence' more appropriately captures the promise, potential and rapidly advancing capabilities of these technologies."

'Robust internal controls'

Meta boss Mark Zuckerberg said the White House accord aims to assure customers that AI technology "works in the way that we intend."
The commitment includes "robust internal controls" and multiple layers of auditing -- from internal risk reviews to external auditors and oversight from the companies' boards of directors, he said.
Zuckerberg called it a starting point for industry-wide standards.
Elon Musk, the world's richest person, said the executives essentially agreed to "grading each other's homework, which is a lot better than if people just grade their own homework for obvious reasons."
The lunch meeting also included Amazon founder Jeff Bezos, Satya Nadella of Microsoft and Sundar Pichai of Google.
Of the 31 guests, two were women: Susie Wiles, Trump's chief of staff, and AMD chief executive Lisa Su.
The gathering occurred as attitudes toward AI sour in Washington, with lawmakers increasingly under pressure from voters to curb or slow its development over fears it could displace workers and upend society.
Those concerns gained force from a run of incidents in which OpenAI's autonomous systems slipped out of their constraints, beginning with a July breach of Hugging Face -- a widely used platform for sharing AI models.
OpenAI announced on Monday it was canceling the release of its latest model, known as Astra 6.1, after internal testing by the ChatGPT-maker revealed it did not meet safety standards.
Trump, advised by Huang and his former AI czar David Sacks, has urged unfettered AI development to outpace China and fuel a US economy increasingly dependent on AI-driven growth.
The issue of data centers, the vast computing facilities the technology requires, has emerged as a flashpoint in midterm election races in both parties, with more and more communities worried about rising electricity bills and strains on water and land.
Trump has dismissed opponents of these data centers and after the meeting insisted that AI companies "will be very generous" with communities who open their doors to them.
"They'll help with their schools, they'll help with their teachers," he said.

'Still under discussion'

Major AI companies, particularly Anthropic and OpenAI, have issued stark public warnings about uncontrolled development of increasingly powerful systems -- even as they develop and deploy this same technology.
Those concerns intensified after a former employee of both companies went public with warnings that the industry is moving faster than safety reviews allow.
Anthropic warned investors of potential existential risks to humanity in the prospectus for its highly anticipated initial public offering, the Financial Times reported on Tuesday.
Anthropic is aiming for an IPO as early as November.
Trump has repeatedly characterized these warnings about existential risks as overblown and the White House has bitterly clashed with Anthropic over AI safety.
"As the president has said, whoever wins AI wins. I think that's very important," Amodei said after the meeting. "But I think the technology has very real risks, and the mechanism, how we address those risks, is still under discussion."
arp-aue/mlm/sla

AI

Trump unveils AI chatbot for US government services

  • Like other websites using AI-powered chatbots, users type in queries and converse with the system online.
  • US President Donald Trump unveiled an AI-powered website on Tuesday aimed at becoming the first stop for Americans to access federal services, hailing the initiative as a "reinvention" of government.
  • Like other websites using AI-powered chatbots, users type in queries and converse with the system online.
US President Donald Trump unveiled an AI-powered website on Tuesday aimed at becoming the first stop for Americans to access federal services, hailing the initiative as a "reinvention" of government.
The "America.gov" platform was developed under Airbnb co-founder Joe Gebbia, who joined the Trump administration last year in the newly formed role of chief design officer.
Like other websites using AI-powered chatbots, users type in queries and converse with the system online.
While its functions are currently limited, Trump said that America.gov will eventually be able to process all sorts of complicated tasks involving the government, such as applying for a new passport or accessing health and retirement benefits.
"We're making it dramatically easier, faster, and more convenient to get what you need exactly when you need it," Trump said at a launch event for the platform in Washington, attended by top government officials.
"It's a restoration of America's founding promise and it's a reinvention of your government for the 21st century and beyond," he said.
The president also signed an executive order directing all government agencies to integrate their websites with America.gov.
The launch of the new US government platform comes the same day that Trump is to meet with an array of top tech executives to discuss the AI sector's rapid development.
A growing list of cyber incidents revealed in recent weeks has raised concerns around the world about risks posed by uncontrollable AI, with some executives urging a slow-down for safety.
Trump has dismissed those concerns as a conspiracy to undermine US economic growth and hamper competition with China.
AI and the rapid buildout of data centers have become a significant issue in the November midterm elections.
A recent poll published by CNN showed 82 percent of Americans expressed concern about the pace of AI development.
cha/des/ksb