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White House says ‘substantial’ shutdown layoffs have begun

The White House said Friday it had begun mass layoffs of federal workers as President Donald Trump sought to amp up pressure on opposition Democrats to end a government shutdown that has crippled public services.With the crisis set to go into a third week and no off-ramp in sight, Trump’s budget chief Russ Vought announced on social media that the administration was following through on threats to fire some of the 750,000 public servants placed on enforced leave.The Office of Management and Budget, headed by Vought, told AFP the layoffs would be “substantial,” but gave no precise numbers or details of which departments would be most affected.A court filing Friday said the government has fired more than 4,000 federal workers, including more than 1,000 each at the Treasury Department and Department of Health and Human Services. Trump reiterated his pledge to use the cutbacks as a way to inflict pain on Democrats, telling reporters the number of people fired would be “a lot and it’ll be Democrat-oriented because we figure they started this thing.”Democratic leaders in Congress have dismissed the threats as an attempt at intimidation and say mass firings would not stand up in court.”Russell Vought just fired thousands of Americans with a tweet,” the party’s leader in the Senate, Chuck Schumer, said in a statement berating the White House for wreaking “deliberate chaos.””Let’s be blunt: nobody’s forcing Trump and Vought to do this. They don’t have to do it; they want to,” he fumed.Unions representing 800,000 government employees asked a federal judge in San Francisco for an emergency order to halt the firings, ahead of a hearing set for October 16 on their legality.A US Treasury spokesperson told AFP the department had begun sending out notices of layoffs while the Health and Human Services Department said it had started firing nonessential workers “as a direct consequence of the Democrat-led government shutdown.”Other departments firing people included the Department of Education, Department of Housing and Urban Development, Department of Commerce, Department of Homeland Security and Department of Energy, according to the court filing.- ‘Tired of the chaos’ -Public servants who hang onto their jobs still face the misery of going without pay while the crisis remains unresolved, with the standoff expected to drag on until at least the middle of next week.Adding to the pain, 1.3 million active-duty military personnel are set to miss their pay due next Wednesday — something that has not happened in any of the funding shutdowns through modern history.”We’re not in a good mood here in the Capitol — it’s a somber day,” Republican House Speaker Mike Johnson said at a news conference marking the 10th day of the shutdown.Nonessential government work stopped after the September 30 funding deadline, with Senate Democrats repeatedly blocking a Republican resolution to reopen federal agencies.The sticking point has been a refusal by Republicans to include language in the bill to address expiring subsidies that make health insurance affordable for 24 million Americans.With a prolonged shutdown looking more likely each day, members of Congress have been looking to Trump to step in and break the deadlock.But the president has been largely tuned out, with his focus on the Gaza ceasefire deal and sending federal troops to bolster his mass deportation drive in Democratic-led cities such as Chicago and Portland.The Bureau of Labor Statistics (BLS) meanwhile announced it had rescheduled publication of key inflation data due next week to October 24, with the shutdown logjamming government data releases.The consumer price index data is being published to allow the Social Security Administration to “ensure the accurate and timely payment of benefits,” it said. 

Trump, oldest elected US president, has second medical this year

Donald Trump on Friday had his second medical checkup this year, a day after the oldest elected president in US history insisted that he was in “great shape.”The 79-year-old Trump saw physicians at Walter Reed military hospital on the outskirts of the capital Washington.He gave reporters the thumbs-up on his return to the White House when they asked how the checkup had gone, but did not comment.The White House is expected to release details of his checkup later.It comes three months after the White House announced Trump was diagnosed with a vein condition following speculation about frequent bruising on his hand and his swollen legs.The White House had said earlier this week that Friday’s checkup would be an “annual” one — despite the fact that Trump had already undergone one of those in April.Trump told reporters in the Oval Office on Thursday that he was “going to do a sort of semi-annual physical.””I’m in great shape, but I’ll let you know. But no, I have no difficulty thus far… Physically, I feel very good. Mentally, I feel very good.”Republican Trump then embarked on one of his trademark tirades comparing his health with that of former presidents, particularly his Democratic predecessor Joe Biden.Trump said that during his last checkup “I also did a cognitive exam which is always very risky, because if I didn’t do well, you’d be the first to be blaring it, and I had a perfect score.”Trump then added: “Did Obama do it? No. Did Bush do it? No. Did Biden do it? I definitely did. Biden wouldn’t have gotten the first three questions right.”- Bruised hand -But Trump has repeatedly been accused of a lack of openness about his health despite huge interest in the well-being of America’s commander-in-chief.In September, he dismissed social media rumors swirling about his health — including false posts that he had died.In July, the White House said Trump was diagnosed with a chronic but benign vein condition — chronic venous insufficiency — following speculation about his bruised hand and swollen legs.The hand issue, it said, was linked to the aspirin he takes as part of a “standard” cardiovascular health program.Trump is regularly seen at public events with heavy make-up on the back of his right hand which he uses to conceal the bruising.At his last checkup the White House said Trump was in good health, saying he had a “normal cardiac structure and function, no signs of heart failure, renal impairment or systemic illness.”

Trump announces new 100 percent China tariff, threatens to scrap Xi talks

US President Donald Trump announced an additional 100 percent tariff on China Friday and threatened to cancel a summit with Xi Jinping, reigniting his trade war with Beijing in a row over export curbs on rare earth minerals.Trump said the extra levies, plus US export controls on “any and all critical software,” would come into effect from November 1 in retaliation for what he called Beijing’s “extraordinarily aggressive” moves.”It is impossible to believe that China would have taken such an action, but they have, and the rest is History,” he said on Truth Social.Stock markets fell as the simmering trade war between the United States and China reignited, with the Nasdaq down 3.6 percent and the S&P 500 down 2.7 percent.Chinese goods currently face US tariffs of 30 percent under tariffs that Trump brought in while accusing Beijing of aiding in the fentanyl trade, and over alleged unfair practices.China’s retaliatory tariffs are currently at 10 percent.Trump had threatened the tariffs hours earlier in a lengthy surprise post on his Truth Social network that said China had sent letters to countries around the world detailing export controls on rare earth minerals.Rare earth elements are critical to manufacturing everything from smartphones and electric vehicles to military hardware and renewable energy technology. China dominates global production and processing of these materials.”There is no way that China should be allowed to hold the World ‘captive,'” Trump wrote, describing China’s stance as “very hostile”.The US president then called into question his plans to meet Chinese president Xi at the Asia-Pacific Economic Cooperation (APEC) summit later this month.It was to be the first encounter between the leaders of the world’s two largest economies since Trump returned to power in January.”I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” he wrote.Trump later told reporters in the Oval Office that he hadn’t canceled the meeting.”I haven’t canceled, but I don’t know that we’re going to have it. But I’m going to be there regardless, so I would assume we might have it,” he said.- ‘Lying in wait’ -The US president said he did not understand why China was choosing to act now. “Some very strange things are happening in China! They are becoming very hostile,” he said.Trump said other countries had contacted the United States expressing anger over China’s “great Trade hostility, which came out of nowhere.”He also accused Beijing of “lying in wait” despite what he characterized as six months of good relations, which has notably seen progress on bringing TikTok’s US operations under American control as required by a law passed by Congress last year.His outburst comes just weeks after he had spoken of the importance of meeting Xi at the APEC summit and said that he would travel to China next year.Washington and Beijing engaged in a tit-for-tat tariffs war earlier this year that threatened to effectively halt trade between the world’s two largest economies.Both sides eventually agreed to de-escalate tensions but the truce has been shaky.Trump said last week that he would push Xi on US soybean purchases as American farmers, a key voting demographic in his 2024 election win, grapple with fallout from his trade wars.China had said earlier Friday that it would impose “special port fees” on ships operated by and built in the United States after Washington announced charges for Chinese-linked ships in April.In a further development, the US communications watchdog said it had successfully managed to get “millions” of listings for banned Chinese items removed from commerce platforms.”The Communist Party of China is engaged in a multi-prong effort to insert insecure devices into Americans’ homes and businesses,” Brendan Carr, head of the Federal Communications Commission, said on X.

Stocks shudder after Trump threatens new tariff war with China

Stock markets fell Friday after US President Donald Trump threatened China with “massive” new tariffs, while oil prices retreated as Middle East tensions eased following the Gaza ceasefire.Trump, in an angry and lengthy social media post, slammed China for “very hostile” trade practices, including imposing new export controls on rare earths.In addition to “a massive increase of Tariffs,” other major countermeasures were “under consideration”, he said, adding that he no longer felt it necessary to meet China’s President Xi Jinping at a summit later in the month.Trump’s sharp pivot sent Wall Street’s major indices sharply lower, with the Nasdaq leading the major benchmarks lower, down 3.6 percent.The dollar fell against its main rival currencies.Trump’s message “has been disrupting the market calm,” said Angelo Kourkafas of Edward Jones, who also noted that markets have been poised for a pullback after a heady rally.Washington and Beijing had been de-escalating trade tensions after a tit-for-tat tariffs war earlier this year, with the Trump-Xi meeting expected to help prolong a shaky truce.However China on Thursday announced new controls on the export of rare-earth technologies and items, adding to regulations on a critical industry that has been a key source of tension between Beijing and Washington.Oil prices had already fallen more than two percent as the Gaza ceasefire took effect, easing concerns about a wider regional conflict that could disrupt supply.But trade war worries pushed prices down more, with the US benchmark West Texas Intermediate ending down 4.2 percent at $58.90, its lowest closing price since April.European markets also slid after Trump’s comments.Paris finished the day down 1.5 percent amid focus on French President Emmanuel Macron’s handling of a rolling political crisis.The president late Friday reappointed his outgoing Prime Minister Sebastien Lecornu, just four days after he gave his resignation.The week was marked by a raft of new records in several markets, with the tech-heavy Nasdaq index, the Frankfurt stock exchange and gold prices reaching new heights. Silver also surged to a decades-long high.Buying sentiment won a boost earlier this week from news that ChatGPT-maker OpenAI had signed multi-billion-dollar chip deals with US firm AMD as well as South Korean titans Samsung and SK hynix.However, there are rumblings that the rally could run out of steam, causing jitters on trading floors.”The AI bubble debate remains a hot topic: some argue this is the new internet bubble 2.0 waiting to burst, others think it’s a bubble that still has room to inflate,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.Such worries have been part of the reason behind the rally in gold to a record price above $4,000 an ounce Wednesday.- Key figures at around 2010 GMT -New York – Dow: DOWN 1.9 percent at 45,479.60 (close)New York – S&P 500: DOWN 2.7 percent at 6,552.51 (close)New York – Nasdaq Composite: DOWN 3.6 percent at 22,204.43 (close)London – FTSE 100: DOWN 0.9 percent at 9,427.47 (close)Paris – CAC 40: DOWN 1.5 percent at 7,918.00 (close) Frankfurt – DAX: DOWN 1.5 percent at 24,241.46 (close) Tokyo – Nikkei 225: DOWN 1.0 percent at 48,088.80 (close)Hong Kong – Hang Seng Index: DOWN 1.7 percent at 26,290.32 (close)Shanghai – Composite: DOWN 0.9 percent at 3,897.03 (close)Euro/dollar: UP at $1.1615 from $1.1564 on ThursdayPound/dollar: UP at $1.3352 from $1.3304Dollar/yen: DOWN at 151.57 yen from 153.07 yenEuro/pound: UP at 86.98 pence from 86.93 penceBrent North Sea Crude: DOWN 3.8 percent at $62.73 per barrelWest Texas Intermediate: DOWN 4.2 percent at $58.90 per barrel

Trump threatens to scrap Xi talks and hit China with ‘massive’ tariffs

US President Donald Trump threatened on Friday to cancel an upcoming summit with Xi Jinping and hit China with “massive” tariffs after Beijing imposed export curbs on rare earth minerals.In an angry social media post that triggered a sell-off on the stock markets, Trump said China’s restrictions on materials used in almost every area of modern life were “very hostile.”Trump said China had sent letters to countries around the world detailing export controls on “each and every element of production having to do with Rare Earths.” “There is no way that China should be allowed to hold the World ‘captive,'” he said on his Truth Social network.The US president called into question his plans to meet Xi at the Asia-Pacific Economic Cooperation (APEC) summit later this month, which was to be their first encounter since Trump returned to power in January.”I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” he said.He also threatened sanctions that would reignite the trade war that has simmered between Washington and Beijing since his second term began.”One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America,” he said.There was no immediate reaction from Beijing.But Trump’s sharp pivot sent Wall Street’s major indices sharply lower, with the Nasdaq down two percent in late morning trading. The dollar fell against its main rival currencies.Rare earth elements are critical to manufacturing everything from smartphones and electric vehicles to military hardware and renewable energy technology. China dominates global production and processing of these materials.The US president said he did not understand why China was choosing to act now.”Some very strange things are happening in China! They are becoming very hostile,” he said.- ‘Lying in wait’ -Trump said other countries had contacted the United States expressing anger over China’s “great Trade hostility, which came out of nowhere.”He also accused Beijing of “lying in wait” despite what he characterized as six months of good relations, which has notably seen progress on bringing TikTok’s US operations under American control as required by a law passed by Congress last year.”Dependent on what China says about the hostile ‘order’ that they have just put out, I will be forced, as President of the United States of America, to financially counter their move,” Trump said.His outburst comes just weeks after he had spoken of the importance of meeting Xi at the APEC summit and revealed that he would travel to China next year.Washington and Beijing engaged in a tit-for-tat tariffs war earlier this year that threatened to effectively halt trade between the world’s two largest economies.Both sides eventually agreed to de-escalate tensions but the truce has been shaky.Trump said last week that he would push Xi on US soybean purchases as American farmers, a key voting demographic in his 2024 election win, grapple with fallout from his trade wars.China had said earlier Friday that it would impose “special port fees” on ships operated by and built in the United States after Washington announced charges for Chinese-linked ships in April.In a further development, the US communications watchdog said it had successfully managed to get “millions” of listings for banned Chinese items removed from commerce platforms.”The Communist Party of China is engaged in a multi-prong effort to insert insecure devices into Americans’ homes and businesses,” Brendan Carr, head of the Federal Communications Commission, said on X.

Melania Trump says Putin talks secured return of Ukraine war kids

US First Lady Melania Trump said Friday she had secured the release of Ukrainian children abducted by Russia after establishing an extraordinary back channel of communication with President Vladimir Putin.In a rare public announcement at the White House, she revealed weeks of behind the scenes diplomacy with the Kremlin chief after he held a summit in Alaska with her husband, US President Donald Trump.Eight children displaced by Moscow’s 2022 invasion of Ukraine had been returned to their homes in the last 24 hours, she said.The 55-year-old said that Putin had agreed to help after she passed him a letter through Trump at the summit, a meeting which otherwise ended without a breakthrough in resolving the war now in its fourth year.”Much has unfolded since President Putin received my letter last August. He responded in writing signalling a willingness to engage with me directly and outlining details regarding the Ukrainian children residing in Russia,” she told reporters.”Since then, President Putin and I have had an open channel of communication regarding the welfare of these children.”The Slovenian-born former model said that both sides had also had “several back channel meetings and calls, all in good faith.””My representative has been working directly with President Putin’s team to ensure the safe reunification of children with their families between Russia and Ukraine,” she said.”In fact, eight children have been rejoined with their families during the past 24 hours.” – Elusive figure -Seven of them were returned to Ukraine from Russia, she said, while one young girl went back to Russia from Ukraine. Three were separated from their parents and “displaced to the Russian Federation by frontline fighting,” she said.The others including the girl returned to Russia were “separated from family members across borders” by the conflict. Kyiv has accused Moscow of abducting almost 20,000 children from parts of the east and south of Ukraine after Moscow’s troops invaded in February 2022. Ukraine has made the issue of the abducted children a diplomatic priority.The International Criminal Court has issued an arrest warrant for Putin and his children’s rights commissioner, Maria Lvova-Belova, over the allegations of child abductions.Russia has said it moved some Ukrainian children from their houses or orphanages for protection due to the threat of hostilities.Melania Trump said in her announcement that Russia had “demonstrated a willingness” to share details to identify abducted children, including biographies and photos.She said she would continue to work for more children to return to their homes.”This is an important initiative for me. It is built on shared purpose and lasting impact,” she added.The announcement marked a rare glimmer of progress in the Ukraine war, which Trump vowed to solve within 24 hours of taking office but now admits is the most difficult conflict he has tried to solve.It was also a rare solo appearance by Melania Trump, who has been an elusive figure at the White House since her husband’s return to power in January, preferring to spend her time in New York or Florida.But she has highlighted a number of initiatives, often involving children.Melania also accompanied her husband on his state visit to Britain in September, making a joint appearance with Princess Catherine, wife of heir to the throne Prince William.

Trump says no reason to meet Xi, threatens ‘massive’ China tariffs

US President Donald Trump said Friday he no longer feels the need for a summit with Chinese leader Xi Jinping this month, slamming Beijing for hostile trade practices and threatening “massive” tariffs.In a lengthy and unexpected Truth Social post, Trump railed against China imposing export controls on rare earth minerals — a critical component in modern technology.”Some very strange things are happening in China! They are becoming very hostile,” Trump said in the post, which he sent as he headed for a medical check-up at a military hospital near Washington.”I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” he said, adding that he had also seen no reason to call Xi about the issue.Trump added: “One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America.”Wall Street stocks quickly tumbled into negative territory as traders worried the simmering trade war between Washington and Beijing could reignite.As recently as last week Trump had stressed the importance of his plans to meet Xi at the Asia-Pacific Economic Cooperation (APEC) summit, which was to be their first encounter since the US president returned to power in January.He had also said that he would travel to China next year.But in his post on Friday, Trump said China had sent letters to countries around the world detailing export controls on “each and every element of production having to do with Rare Earths, and virtually anything else they can think of, even if it’s not manufactured in China.”- ‘Lying in wait’ -“There is no way that China should be allowed to hold the World ‘captive,’ but that seems to have been their plan for quite some time,” Trump wrote.He accused Beijing of “lying in wait” despite what he characterized as six months of good relations, adding that he had not spoken to Xi about the matter.Trump also questioned whether the timing of China’s announcement was designed to take the shine off the Gaza ceasefire deal that he brokered this week between Israel and Hamas.Rare earth elements are critical to manufacturing everything from smartphones and electric vehicles to military hardware and renewable energy technology. China dominates global production and processing of these materials.Trump said other countries had contacted the United States expressing anger over China’s “great Trade hostility, which came out of nowhere.”He characterized China’s approach as building monopoly positions on magnets and other elements, calling it “a rather sinister and hostile move, to say the least.””Dependent on what China says about the hostile ‘order’ that they have just put out, I will be forced, as President of the United States of America, to financially counter their move,” he said.Washington and Beijing engaged in a tit-for-tat tariffs war earlier this year that threatened to effectively halt trade between the world’s two largest economies.Both sides eventually agreed to de-escalate tensions but the truce has been shaky.Trump said last week that he would push Xi on US soybean purchases as American farmers, a key voting demographic in his 2024 election win, grapple with fallout from his trade wars.China had said earlier Friday that it would impose “special port fees” on ships operated by and built in the United States after Washington announced charges for Chinese-linked ships in April.

Melania Trump says has ‘open channel’ with Putin on Ukrainian kids

US First Lady Melania Trump said Friday she had been communicating with Russian President Vladimir Putin on the fate of children abducted by Russia in the Ukraine war.In an announcement at the White House, the 55-year-old said eight children had been reunited with their families in the past 24 hours following negotiations between her team and Putin’s.Melania Trump said that Putin had responded to a letter she sent via her husband, President Donald Trump, at a summit in Alaska in August that otherwise failed to provide a breakthrough in ending Russia’s invasion.”Much has unfolded since President Putin received my letter last August. He responded in writing signalling a willingness to engage with me directly and outlining details regarding the Ukrainian children residing in Russia,” she told reporters.”Since then, President Putin and I have had an open channel of communication regarding the welfare of these children.”The Slovenian-born former model said that both sides had also had “several back channel meetings and calls, all in good faith.””My representative has been working directly with President Putin’s team to ensure the safe reunification of children with their families between Russia and Ukraine,” she said.”In fact, eight children have been rejoined with their families during the past 24 hours,” adding that one of them had been displaced by fighting and was returning from Ukraine to Russia.

Tempers flare as US shutdown threatens troops’ pay

US senators began a long weekend Friday that guarantees the government shutdown lasting at least 14 days, with both sides more entrenched than ever and the military facing an unprecedented threat to its pay.Republicans and Democrats have been getting into angry confrontations in the corridors of Congress, with frustration mounting as the crisis over funding the government hits public services harder each day.Pressure is increasing on Republican House Speaker Mike Johnson to bring the shuttered lower chamber of Congress back in session to hold an emergency vote on at least providing military pay.But Johnson is sticking to his guns, telling reporters Friday that “we will come back here and get back to legislative session as soon as the Senate Democrats turn the lights back on.”Some 1.3 million active-duty service military personnel are set to miss their pay due next Wednesday — something that has not happened in any of the funding shutdowns through modern history.And with the Senate out until Tuesday next week, there’s little hope for the civilian federal workforce, whose pay has already been hit. “We’re not in a good mood here in the Capitol — it’s a somber day. Today marks the first day federal workers across America will receive a partial pay check,” Johnson said.”Thanks to Democrats’ obstruction to the system here, this is the last pay check that 700,000 federal workers will see until Washington Democrats decide to do their job and reopen the government.”Rising tensions between the two parties have been on full display this week, with Johnson and Democratic senators clashing over the shutdown in front of the gathered press.There was a fiery exchange after a House Democratic leadership press conference when Republican Congressman Mike Lawler needled House Minority Leader Hakeem Jeffries over his role in the shutdown.Jeffries told Lawler to “keep your mouth shut” as the two traded barbs and later called the Republican a “malignant clown.”    – ‘Tired of the chaos’ -Nonessential government work stopped after the September 30 funding deadline, with Senate Democrats repeatedly blocking a Republican resolution to reopen federal agencies.The sticking point has been a refusal by Republicans to include language in the bill to address expiring subsidies that make health insurance affordable for 24 million Americans.With a prolonged shutdown looking more likely each day, members of Congress have been looking to Republican President Donald Trump to step in and break the standoff.Trump has been largely tuned-out, with his focus on the Gaza ceasefire deal and sending federal troops to bolster his mass deportation drive in Democratic-led cities such as Chicago and Portland.”Donald Trump can find the time to play golf, but he can’t be bothered negotiating a bipartisan agreement to reopen the government… and House Republicans remain on vacation for three weeks,” Jeffries told a news conference.”The American people are sick and tired of the chaos, crisis and confusion that has been visited upon the country by Donald Trump and Republican complete control of Congress.”

Trump says no reason to meet Xi, threatens ‘massive’ China tariffs

US President Donald Trump said Friday he no longer feels a summit is necessary with Chinese counterpart Xi Jinping this month, slamming Beijing for hostile trade practices and threatening “massive” tariffs.”Some very strange things are happening in China! They are becoming very hostile,” Trump said in a long post on Truth Social that railed against China imposing export controls on rare earth minerals — a critical component in modern technology.”I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” he added in the post, which he sent as he headed for a medical check-up at a military hospital near WashingtonTrump said China had sent letters to countries around the world detailing export controls on “each and every element of production having to do with Rare Earths, and virtually anything else they can think of, even if it’s not manufactured in China.””There is no way that China should be allowed to hold the World ‘captive,’ but that seems to have been their plan for quite some time,” Trump wrote, adding that Beijing had been “lying in wait” despite what he characterized as six months of good bilateral relations.Rare earth elements are critical to manufacturing everything from smartphones and electric vehicles to military hardware and renewable energy technology. China dominates global production and processing of these materials.”One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America,” Trump said, adding that he was considering “many other countermeasures.”Trump said other countries had contacted the United States expressing anger over China’s “great Trade hostility, which came out of nowhere.”The president added that he had not spoken to Xi about the matter.He characterized China’s approach as building monopoly positions on magnets and other elements, calling it “a rather sinister and hostile move, to say the least.”