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Argentina’s opposition threatens impeachment trial after Milei touts crypto coin

ARGENTINE president-elect Javier Milei addresses supporters after winning Argentina’s runoff presidential election, in Buenos Aires, Argentina, Nov. 19, 2023. — REUTERS

BUENOS AIRES — Argentine President Javier Milei could face an impeachment trial in Congress, opposition lawmakers said on Saturday, after the libertarian leader touted a cryptocurrency which crashed soon after.

Mr. Milei late on Friday posted on X recommending the little-known crypto coin $LIBRE, which soon after shot up to nearly $5 apiece.

Just hours later, the cryptocurrency plummeted to under $1.

Argentina’s fintech chamber acknowledged that the case could potentially be a “rug pull,” in which the developers of a crypto token draw legitimate investments, pumping up the value, only to later dump their stake.

“This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” said lawmaker Leandro Santoro, a member of the opposition coalition.

Mr. Milei deleted the post on X, with local media saying the post had been up for a few hours on Friday night. He later said he took down his post after becoming aware of the circumstances, and that he had no relation to the cryptocurrency.

“I was not aware of the details of the project and once I found out, I decided to not continue giving it publicity,” he said. — Reuters

China accuses Australia of deliberate provocation in South China Sea

PHILEMBASSY.NO

BEIJING – China accused Australia on Friday of deliberately provoking it with a maritime patrol in the disputed South China Sea this week, saying the latter was spreading “false narratives”, though Australia maintained its action adhered to international law.

The incident, in which Australia’s defense minister said a Chinese PLA J-16 jet released flares within 30 m (100 feet) of an RAAF aircraft, comes amid ties strained by navy and air force interactions that Australia has called dangerous.

Friday’s comments came a day after Australia flagged “unsafe and unprofessional” actions by the jet towards the patrol which it said was on routine surveillance in international waters on Tuesday, an account Beijing disputes.

“Australia deliberately infringed upon China’s rights in the South China Sea and provoked China, yet it was the villain who complained first, spreading false narratives,” said Zhang Xiaogang, a spokesperson for the Chinese defense ministry.

Mr. Zhang accused the Australian military aircraft of ignoring the main routes in the busy waterway, saying it “broke into the homes” of others, and adding that China’s response was reasonable and a legitimate defense of sovereignty.

“We urge Australia to abandon its illusion of speculation and adventure,” Mr. Zhang said.

He urged Australia to restrain its frontline naval and air forces, instead of “stirring up trouble” in the South China Sea to the detriment of others and itself.

Before the Chinese comments, Australia’s Prime Minister Anthony Albanese told reporters, “We regard this action as unsafe. We’ve made that clear.”

Defense Minister Richard Marles said the Australian aircraft was in international airspace, adding, “There was no way that the pilot of the Chinese J16 could have been able to control where the flares then go.”

The Australian military’s exercise of freedom of navigation in the South China Sea comes with increasing risk, Mr. Marles said.

“We do it in accordance with international law,” he told the Australian Broadcasting Corporation in an earlier interview on Friday.

“We’re not the only country that does it. But it is really important that we are asserting the rules of the road, as it were.”

The Philippine foreign ministry expressed concern over the incident, citing “unsafe maneuvers” by the Chinese aircraft.

“All countries are expected to respect freedom of navigation and overflight in and above international sea lines of communication, such as the South China Sea,” it said in a statement.

China claims vast swathes of the South China Sea, despite overlapping claims by Brunei, Indonesia, Malaysia, the Philippines and Vietnam.

China rejects a 2016 ruling by the Permanent Court of Arbitration in the Hague that its sweeping claims were not supported by international law. – Reuters

Price growth of building materials in Metro Manila slows in January

Workers were seen at a construction site in Manila. — PHILIPPINE STAR/EDD GUMBAN

Price growth of construction materials in the National Capital Region (NCR) eased in January amid lower interest rates and a weaker peso, the Philippine Statistics Authority (PSA) reported on Friday.

According to preliminary data, the January construction materials retail price index (CMRPI) slowed to 1.2% in January, from 1.5% recorded in December and 1.4% reported in the same month last year.

Growth in the CMRPI in the National Capital Region (NCR) was the weakest in five months or since the 1.1% in August 2024.

“A weaker peso has made imported construction materials cheaper,” Cid L. Terosa, senior economist at the University of Asia and the Pacific, said in an e-mail interview.

The peso ended at P58.365 against the dollar in January, weakening from P57.845 at end-December 2024.

Mr. Terosa also said that lower interest rates have restrained the cost of production of construction materials.

Last year, the Bangko Sentral ng Pilipinas brought a total of 75 basis points in rate cuts since the beginning of its easing cycle in August, bringing the key rate to 5.75%.

“Lower demand for construction materials due to relatively fewer construction activities amidst the glut in residential and office buildings and units has contributed to slower price increases in prices across most construction materials,” Mr. Terosa said.

The PSA also said that the main factor behind NCR’s slower annual CMRPI increase was the deceleration in the heavily weighted tinsmithry materials index, which rose by 1.6% in January, down from 2.6% in December 2024.

Tinsmithry materials form the largest commodity group in the index, accounting for 21.76% of the CMRPI.

Other commodity groups also reported slower price growths, such as electrical materials (1.8% from 1.9%), painting materials and related compounds (2.2% from 2.6%), plumbing materials (0.8% from 1%), and miscellaneous construction materials (0.6% from 0.8%).

Only carpentry materials saw price increase at 1%, from 0.8% last month.

In a separate report by the PSA, the construction materials wholesale price index (CMWPI) cooled to a record 0.1%, lower than 0.2% in December and 1.5% in January last year.

The CMRPI is based on 2012 constant prices, while the CMWPI is based on 2018 constant prices.

Of the 20 categories, four commodities saw accelerated price growths, six saw easing growth, four were unchanged, and six commodities posted price declines.

The PSA attributed the slower annual CMWPI growth primarily to prices in reinforcing steel and PVC pipes, which declined by 0.3% (from 1.2%) and 0.1% (from 0.9%), respectively.

Other categories where rates went down were hardware (0.1% from 0.7%), G.I. sheet (0.3% from 0.4%), structural steel (-0.9% from -0.5%), metal products (0% from 0.1%), electrical works (0.3% from 0.4%), plumbing fixtures and accessories or waterworks (0.7% from 1.2%), painting works (1.1% from 1.2%), and fuels and lubricants (-3.4% from -1.2%).

The indices for concrete products, glass and glass products, asphalt, and machinery and equipment rental did not change.

Mr. Terosa said that US President Donald J. Trump’s trade policies and trade wars between major exporters of construction materials are key factors to consider in the coming months.

Since taking office in January, Mr. Trump has imposed tariffs on Chinese imports while putting on hold the duties on products from Mexico and Canada.

He is also mulling on slapping “reciprocal tariffs” on every country taxing US imports, stoking fears of wider global trade war, Reuters reported.

“If the downward trend in prices across most construction materials will continue despite the tense global trade environment, construction activity and real estate development in the NCR will benefit.” — Pierce Oel A. Montalvo

China opposes US missile deployed by Philippines

US ARMY PACIFIC

HONG KONG – China has urged the Philippines to withdraw the United States’ “Typhon” intermediate range missile, the defense ministry said on Friday, accusing the Southeast Asian nation of breaking its “promises” by introducing the missile system.

The system is part of a U.S. drive to amass a variety of anti-ship weapons in Asia. The weapon drew sharp criticism from China when first deployed in April 2024 during a training exercise.

The Philippines was not “only giving up its own security and national defense to others, but also introducing the risks of geopolitical confrontation and arms race into the region,” said Zhang Xiaogang, a spokesman for the Chinese defense ministry.

The missile system is a “strategic offensive weapon” and the Philippine side had “repeatedly broken its promises and catered to the U.S. side in introducing this system,” he added.

The comments came as Jonathan Malaya, a spokesperson for the Philippines National Security Council, told a press conference the Typhon missile was only meant for defense, and that the Philippines had never promised to withdraw the Typhon missile.

The Philippines “adheres to its pacifist constitution which renounces war as an instrument of national policy,” Mr. Malaya said.

The Philippines embassy and the U.S. embassy in Beijing did not immediately respond to requests for comment.

The U.S. military moved its Typhon launchers – which can fire multipurpose missiles distances of up to thousands of kilometers – from Laoag airfield in the Philippines to another site on the island of Luzon, Reuters reported in January.

The Tomahawk cruise missiles in the launchers can hit targets in both China and Russia from the Philippines, while the SM-6 missiles it also carries can strike air or sea targets more than 200 km (165 miles) away. – Reuters

Approved foreign investments drop to P544B in 2024

Philippine flags line the road in the City of Dasmariñas in Cavite, June 2, 2023. — PHILIPPINE STAR/EDD GUMBAN

By Abigail Marie P. Yraola, Deputy Research Head

Approved foreign investments in the Philippines fell by 38.9% last year to P543.62 billion, the steepest decline in four years, the Philippine Statistics Authority reported on Thursday.

Preliminary data from the PSA showed the value of foreign commitments approved by the country’s investment promotion agencies (IPAs) in 2024 was lower than the P889.24 billion in 2023.

The annual fall in foreign investments was the lowest since the 71.3% drop recorded in 2020.

Total Approved Foreign Investment Pledges

In the three months to December, pledges reached P57.70 billion, down 85.4% from P394.46 billion in the same period in 2023.

This was the steepest decline in over 26 years or since the 94.5% slump in the third quarter of 1998. By value, it was the lowest since the P27.46 billion in the third quarter of 2023.

“Global uncertainty due to geopolitical tensions is the primary reason for the large drop in foreign investments for the quarter,” Oikonomia Advisory & Research, Inc. economist Reinielle Matt Erece said in an e-mail.

He added that US President Donald J. Trump’s campaign and eventual win alongside his policies which includes tariff increases, strict immigration regulations, and other trade reforms made investors hesitant to invest outside their home countries.

“Foreign investors are hesitant as they hold on to their capital, re-analyze global risk factors, and is on a ‘wait and-see’ mode on the ongoing developments of the global economy,” Mr. Erece said.

Additionally, he said that the latest approved foreign investments data affected the country’s growth trajectory and while unemployment remains relatively low and stable, economic sentiment is negatively affected by growth print which will carry on towards this year.

“Investors will now be concerned of a slow growth in consumption, and adding global uncertainty to the mix, will make them even more hesitant to invest in the country,” he said.

The Philippine economy expanded by 5.2% in the fourth quarter of 2024, the slowest pace in six quarters or since the 4.3% in the second quarter of 2023.

This brought the country’s gross domestic product (GDP) at 5.6% in 2024, below the revised 6-6.5% government target.

On the other hand, unemployment in the country slowed to 3.1% in December which brought the full year average to an all-time low of 3.8%. This is equivalent to 1.94 million jobless Filipinos.

The December figure was the lowest since April 2005, when the statistics agency revised its definition of unemployed to Filipinos aged 15 years and older without a job, available for work and actively seeking one.

For the fourth quarter, investment commitments were approved by five IPAs — Board of Investments (BOI), BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), Clark Development Corp. (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA).

Switzerland was the top source of investment pledges for 2024 after committing P289.06 billion, or 53.2% of the total. It was followed by South Korea’s P100.34 billion (18.5% share) and the Netherlands’ P50.22 billion (9.2% share).

Meanwhile, in the fourth quarter, South Korea had the largest approved investments with P26.16 billion, accounting 45.3% of the total P57.70-billion pledges. This was followed by the Netherlands at P9.19 billion (15.9% share) and Japan with commitments worth P4.11 billion (7.1% share)

The BoI contributed the largest bulk with 70.7% of foreign investment pledges worth P384.44 billion last year.

In the last three months of 2024, BoI had the largest commitments worth P28.10 billion followed by PEZA with P15.44 billion.

SBMA and CDC approved P13.64 billion and P445.10 million worth of pledges, respectively. BoI-BARMM approved P86.66 million worth of commitments.

During the period, the Authority of the Freeport Area of Bataan, Bases Conversion and Development Authority, Cagayan Economic Zone Authority, Clark International Airport Corp., Poro Point Management Corp., John Hay Management Corporation, Tourism Infrastructure and Enterprise Zone Authority, and Zamboanga City Special Economic Zone Authority did not approve any investment pledges during the period.

In 2024, about 62.8% or P341.50 billion of the total approved foreign investments will go to the energy sector.

Meanwhile, in the October to December period, the manufacturing sector cornered the largest approved foreign investments with P30.55 billion, about 52.9% of the total pledges during the period.

Additionally, around 20.6% or P11.87 billion of the approved foreign investments will go into the transportation and storage industry, while 13.3% or P7.68 billion worth of pledges will be invested in the energy industry.

During the period, 34.5% of these foreign investment commitments worth P19.92 billion will be for projects in Central Luzon.

Meanwhile, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) cornered P13.51 woth of investment commitments while Metro Manila will get P12.86 billion.

In 2024, Calabarzon cornered around P195.67 billion worth of these investment pledges.

Should these foreign commitments materialize, these projects are expected to generate 39,284 jobs, 20.3% higher than the 23,726 projected jobs a year earlier.

Mr. Erece said that in terms of job generation, it is still too early to predict a slowdown but it is important for policymakers to take steps to prevent this slowdown and attract more investments to stimulate job growth and accelerate economic expansion.

“Some of the measures that policymakers can do is to implement more accommodative monetary policy, such as a timely rate cut,” Mr. Erece said.

While this may eventually cause the Philippine peso to depreciate especially against the US dollar, he added that the “economy is much more reliant on domestic consumption and spending so doing a rate cut will improve market sentiment and encourage spending from both businesses and consumers in the country.”

At its first policy meeting last Thursday, the Bangko Sentral ng Pilipinas (BSP) decided to keep it rates steady at 5.75%.

The central bank trimmed rates by a total of 75 basis points last year.

In the fourth quarter, total investment commitments from foreign and Filipino nationals fell by 36.1% to P373.70 billion, lower than P585.17 billion in the same period in 2023. Investment pledges by Filipinos reached P316 billion in the last quarter, accounting for 84.6% of the total.

Mr. Erece sees rising tensions on global trade, and a pause in rate cuts by the BSP, due to slow growth expected in 2025 and “cannot be optimistic for a growth in investments this quarter.”

However, he said that being an economy largely driven by domestic consumers and businesses provides a significant advantage in this uncertain global landscape.

“Stimulating consumption through fiscal spending and accommodative monetary policy can improve business sentiment, thereby inviting more foreign investments in the country,” he said.

The PSA data on foreign investment commitments, which may materialize shortly, differ from actual foreign direct investments tracked by the BSP. The central bank’s monitoring goes beyond the projects and includes other items such as reinvested earnings and lending to Philippine units via their debt instruments.

6 powerful ways to achieve your financial goals sooner than you think

We all have big dreams—whether it’s starting your own business, traveling the world, retiring early, or securing a comfortable future for our loved ones. The good news is that achieving your financial goals doesn’t have to take decades of hard work.

According to a 2024 study by the Bangko Sentral ng Pilipinas (BSP), Filipinos who start saving and investing early are more likely to reach their financial goals faster. The study highlights that individuals with higher financial literacy, particularly young adults, are better equipped to make smart financial decisions that can accelerate their path to financial freedom.

Here are six proven ways to speed up your journey toward financial freedom and set yourself up for long-term success.

Be Clear About Your Financial Goals

Start by defining exactly what you want to achieve. Is it paying off debt, saving for retirement, or investing in your children’s education? Clarity is key. Break your goals into smaller, actionable steps, and set realistic timelines to measure progress. A clear destination keeps you motivated and focused, making it easier to stay on track.

Set a Realistic Budget

A budget isn’t about restricting yourself; it’s about taking control of your finances. Track your income, expenses, and savings to identify areas where you can cut back. This frees up money to invest in your future. A flexible budget that adjusts with your changing circumstances ensures it remains practical and effective.

Automate Your Savings and Investments

Automating savings and investments is one of the easiest ways to stay consistent with your financial goals. Automatic transfers to your accounts eliminate the temptation to spend and ensure you’re building your wealth without added effort. Over time, even small contributions grow significantly, thanks to compounding.

Cut Back on Unnecessary Spending

Revisit your spending habits and identify areas where you can make adjustments. While small luxuries like a coffee or streaming subscription might not seem like much, mindful spending can free up more money for savings and investments. Strategic adjustments can significantly accelerate your progress toward financial freedom.

Stay Informed and Keep Learning

Financial trends and tools evolve constantly, and staying informed can help you make better decisions. Learn how inflation impacts savings, explore tax-efficient investing strategies, and understand different investment options. Whether it’s through books, webinars, or podcasts, improving your financial literacy ensures you can make smarter choices and spot opportunities for growth.

Embrace the power to be in control

Life is unpredictable, and financial protection is essential to ensure your loved ones can continue their goals even if something unexpected happens. This is where life insurance becomes invaluable. AXA Secure Future not only helps you save strategically but also provides life protection, ensuring that your family is supported financially in the event of your untimely passing.

Combining guaranteed yearly payouts from years 8 to 20 with a lump sum benefit at the end of the policy term, AXA Secure Future offers a balance of savings growth and peace of mind. It supplements your income and provides a safety net for your family, empowering you to focus on your goals without worry.

The journey to financial freedom starts with small, consistent steps. With tools like AXA Secure Future, you can stay in control of your finances while enjoying the peace of mind that comes with life protection.

To learn more about how AXA can help you achieve your goals, visit the AXA Secure Future webpage.

 

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Takeda, Otsuka-Solar sign MoU to raise dengue awareness in the Philippines

Photo by Patricia B. Mirasol

by Patricia B. Mirasol, Producer

Takeda Healthcare Philippines, Inc. and Otsuka-Solar Philippines, Inc., with the support of the Embassy of Japan in the Philippines, inked on February 6 a memorandum of understanding to raise community-based awareness on dengue. 

The Japan-backed health alliance aims to empower communities in the Philippines with the knowledge and resources needed to improve health-promoting behaviors. 

Dengue cases from Jan. 1 to Nov. 16, 2024 reached 340,860 nationwide, or 81% higher than the 188,574 cases logged for the same period in 2023, according to the health department. 

Dengue is a viral infection transmitted to humans through the bite of infected mosquitoes. Urbanization (especially unplanned), is associated with dengue transmission through multiple social and environmental factors, including population density, human mobility, access to reliable water sources, and water storage practice. 

“With the Japanese Embassy’s support, Otsuka-Solar’s expertise in hydration and wellness, and Takeda’s leadership in pharmaceutical innovation, we can empower communities through open discussions about health, which is essential in shaping better healthcare practices and disease prevention strategies,” said Loreann E. Villanueva, country manager of Takeda Healthcare Philippines, Inc. 

“The campaign is initially targeting 10 communities, she said. 

“We’ll make the effort to understand what some of the causes are that’s driving the high incidence of dengue in their communities,” she told BusinessWorld on the sidelines of the event. “We are going to really find a way to get insights on the communities on what the gaps are, and that’s how were going to design the initiatives accordingly.”  

“Thats how we can avoid deaths and achieve the W.H.O. [World Health Organization]’s goal of zero dengue deaths by 2030,” she added. 

The highest case fatality rates of dengue in the country are observed among those 9 years old and below, as well as those 60 years old and above, said Dr. Enrique A. Tayag, a public health advocate and founding member of the Philippine Foundation for Vaccination.  

The challenges are multifold – from the lack of granular data to the different protocols for dengue management, he said at the Feb. 6 event. 

The integration of routine vector surveillance is likewise a challenge, he said. 

“Everyone does their own thing. They do it now, then they forget it the next season…,” he said. “Dengue will win if we do that. [Efforts] should be sustained. Hindi puwedeng ningas kugon lang (Our diligence shouldn’t just be short-lived).” 

The Philippine health department cannot do this alone, Dr. Tayag told the event audience. 

“This partnership can be a model for future collaboration among many entities,” he said. 

Filipinos advised to apply for visas early

Apply for visas early, said Bernard Vijaykumar, head for North Asia & the Philippines for VFS Global.

“Waiting until the last moment not only increases the risk of delays but also exposes applicants to fraudulent entities seeking to exploit their urgency,” he added.

VFS Global helps governments and diplomatic missions with visa, passport, and consular services, but doesn’t decide whether applications are approved or denied.

Interview By Patricia Mirasol
Video editing by Jayson Mariñas

Macron says only Ukrainian President Zelenskiy can negotiate peace for his country

FRENCH PRESIDENT EMMANUEL MACRON — REUTERS

French President Emmanuel Macron said only Ukrainian President Volodymyr Zelenskiy could negotiate on behalf of his country with Russia to end the war, warning a “peace that is a capitulation” would be “bad news for everyone”, including the U.S., the Financial Times reported on Thursday.

“The only question at this stage is whether President Putin is genuinely, sustainably, and credibly willing to agree to a ceasefire on this basis. After that, it’s up to the Ukrainians to negotiate with Russia,” Mr. Macron said in an interview with the newspaper at the Elysee Palace.

U.S. President Donald Trump on Wednesday separately discussed the war with Russian President Vladimir Putin and Mr. Zelenskiy and told U.S. officials to begin talks on ending the nearly three-year-long conflict.

The phone calls came shortly after U.S. Defense Secretary Pete Hegseth told Ukraine’s military allies in Brussels that a return to Ukraine’s pre-2014 borders – before Russia annexed Crimea – was unrealistic and that the U.S. does not see NATO membership for Kyiv as part of a solution.

Ukrainians on Thursday worried that Trump was preparing to sell out their country following his phone call Putin.

Mr. Trump, speaking to reporters at the White House on Thursday, said Ukraine would have a seat at the table during any peace negotiations with Russia over ending the war.

Mr. Macron told the Financial Times that Trump had created a “window of opportunity” for a negotiated solution, where “everyone has to play their role”, adding that it is now up to Mr. Zelenskiy to discuss territorial and sovereignty issues.

He said “..it is up to the international community, with a specific role for the Europeans, to discuss security guarantees and, more broadly, the security framework for the entire region. That is where we have a role to play.”

Mr. Macron described Mr. Trump’s return as an “electroshock” that should force Europe to secure its own future as well as Ukraine’s, the Financial Times report added.

Separately, Mr. Macron said to the newspaper that expelling Gazans would be “extremely dangerous”, adding that Trump’s designs on Gaza and Greenland were examples of the “extreme strategic uncertainty” the world was now living in.

The commentary is aimed at Trump’s shock announcement that the U.S. intends to remove Gaza residents and transform the war-ravaged territory into what the president billed as a “Riviera of the Middle East”. He had also said he wants to take over the Panama Canal and Greenland.

Mr. Macron reiterated that Europe should build its defence capabilities so it can act even when the U.S. is not involved.

“We must also develop a fully integrated European defence, industrial and technological base,” Mr. Macron said.

In January, at a joint news conference with German Chancellor Olaf Scholz in Paris, Mr. Macron said: “After the inauguration of a new administration in the United States, it is necessary more than ever for Europeans and for our two (France and Germany) countries to play their role of consolidating a united, strong and sovereign Europe.” – Reuters

US government begins wave of mass firings as Trump, Musk purge federal workers

STOCK IMAGE | Image by Mohamed Hassan from Pixabay

WASHINGTON – The U.S. government began firing hundreds of people at multiple agencies on Thursday as President Donald Trump and Elon Musk accelerate their purge of America’s federal bureaucracy, union sources and employees familiar with the moves told Reuters.

Termination emails have been sent in the past 48 hours to government workers, mostly recently hired employees still on probation, at the Department of Education, the Small Business Administration, the Consumer Financial Protection Bureau, and the General Services Administration, which manages many federal buildings.

It was not immediately clear how many domestic federal workers stood to lose their jobs in the first wave of layoffs. According to government data, about 280,000 civilian government workers were hired less than two years ago with most still on probation, which makes them easier to fire.

Firings at the U.S. Consumer Financial Protection Bureau appeared to be going beyond probationary employees.

Notices went to dozens of term employees, full-time workers who have contracts with end dates, said sources who requested anonymity to avoid any reprisal.

Reuters could not immediately ascertain the extent of the firings. The new round of firings comes after the consumer protection agency on Tuesday terminated as many as 70 probationary staff members.

Meanwhile, all probationary staff at the Office of Personnel Management, the human resources arm for the U.S. government, were fired in a group call on Thursday and told to leave the agency’s headquarters in Washington, two sources said.

OPM officials also met with other government agencies on Thursday and advised them to lay off their probationary employees, with some exceptions, according to a person familiar with the matter.

 

LEGAL CHALLENGES

Even as the firings commenced, a group of 14 states filed a federal lawsuit in Washington alleging that Mr. Trump appointed Mr. Musk illegally, giving him “unchecked legal authority” without authorization from the U.S. Congress.

Most civil service employees can be fired legally only for bad performance or misconduct, and they have a host of due process and appeal rights if they are let go arbitrarily. The probationary employees targeted in Thursday’s wave have fewer legal protections.

Mr. Trump and Mr. Musk’s overhaul of the federal government appeared to be widening as Mr. Musk aides arrived for the first time at the federal tax-collecting agency, the Internal Revenue Service, and U.S. embassies were told to prepare for staff cuts.

Mr. Trump has defended the effort, saying the federal government is too bloated and that too much money is lost to waste and fraud. The federal government has some $36 trillion in debt and ran a $1.8 trillion deficit last year, and there is bipartisan agreement on the need for government reform. But critics have questioned the blunt force approach of Mr. Musk, who has amassed extraordinary influence in Trump’s presidency.

 

‘YOU ARE NOT FIT’

Thursday’s moves fulfill Mr. Trump’s vow to reduce the size of the federal government and root out the “deep state,” a reference to bureaucrats he views as not sufficiently loyal to him.

“The Agency finds that you are not fit for continued employment because your ability, knowledge and skills do not fit the current needs, and your performance has not been adequate to justify further employment with the Agency,” letters sent to at least 45 probationers at the SBA stated.

Reuters has seen a copy of the termination letter.

Letters to at least 160 recent hires at the Department of Education, also seen by Reuters, told them that their continued employment “would not be in the public interest.”

Mr. Trump, a Republican serving his second term, on Wednesday reiterated his desire to close the Department of Education.

About 100 probationary employees received termination letters on Wednesday at the GSA, according to two people familiar with the firings.

One GSA employee, who said he had one month left until his probation period ended and had been receiving excellent performance reviews, was told this week he will be fired on Friday.

“Up until two weeks ago, this was an absolute dream job. Now it’s become an absolute nightmare because of what is going on. I have small children and a mortgage to pay,” the worker told Reuters.

Mr. Musk’s cost-cutting Department of Government Efficiency, or DOGE, did not respond to a request for comment, but a spokesperson for OPM said the firings were in line with new government policy.

“The Trump administration is encouraging agencies to use the probationary period as it was intended: as a continuation of the job application process, not an entitlement for permanent employment,” the spokesperson said.

About 75,000 workers have signed up for the buyout, White House press secretary Karoline Leavitt told reporters. That is equal to 3% of the civilian workforce.

Mr. Trump has tasked the South Africa-born Musk and his team at DOGE, a temporary government agency, to undertake a massive downsizing of the 2.3 million-strong civilian federal workforce.

Mr. Musk, the world’s richest person, has sent DOGE members into at least 16 government agencies, where they have gained access to computer systems with sensitive personnel and financial information, and sent workers home.

Gavin Kliger, a top staffer in DOGE, arrived at a new agency, the IRS, on Thursday, people familiar with the matter said.

It was the first time a Musk aide has entered the IRS, a longtime target of Republicans who claim without evidence that the Biden administration weaponized the agency to target small businesses and middle-class Americans with unnecessary audits. – Reuters

TikTok returns on Apple, Google app stores as Trump delays ban

STOCK PHOTO | Image by amrothman from Pixabay

TikTok returned on the U.S. app stores of Apple and Google on Thursday, as President Donald Trump delayed its ban until April 5 and assured the companies they would not be fined for distributing or maintaining the Chinese app.

The popular short video app, used by 170 million American users, started restoring its services, weeks after the app went dark, as Trump assured to revive its access prior to his inauguration.

Tiktok did not immediately respond to a Reuters request for comment.

Mr. Trump’s executive order last month delayed the ban of TikTok for 75 days, allowing China’s ByteDance-owned company to continue its operations in the U.S. temporarily.

The companies, which run mobile application stores or digital marketplaces where users can browse, download and update apps, would not face penalties for keeping the TikTok app up and running, the directive said.

TikTok was the second most downloaded app in the U.S., with more than 52 million downloads in 2024, according to market intelligence firm Sensor Tower.

About 52% of TikTok’s total downloads were from Apple App Store, while 48% were from Google Play in the U.S. last year, Sensor Tower said. – Reuters

Taiwan president to meet senior officials on US tariffs, sources say

TAIWAN President-elect Lai Ching-te, of Democratic Progressive Party (DPP), holds a press conference, following his victory in the presidential elections, in Taipei, Taiwan, Jan. 13, 2023. — REUTERS

TAIPEI – Taiwan President Lai Ching-te will hold a meeting of the National Security Council on Friday to discuss possible new U.S. tariffs as well as broader relations with the United States, two sources familiar with matter told Reuters.

The presidential office declined to comment. The council is composed of senior ministers and other officials and is convened to discuss major issues.

U.S. President Donald Trump tasked his economics team on Thursday with devising plans for reciprocal tariffs on every country taxing U.S. imports, ramping up prospects for a global trade war with American friends and foes.

Mr. Trump has threatened specifically to put tariffs on imported semiconductors, which could threaten Taiwan’s economy given the island’s major role in producing chips used in everything from cars to AI servers.

Mr. Trump spoke critically about Taiwan on Thursday, telling reporters at the White House he aimed to restore U.S. manufacturing of semiconductor chips.

“We have to have chips made in this country. Right now, everything’s made in Taiwan practically, almost all of it. A little bit in South Korea,” he said.

Mr. Trump said U.S. companies had made semiconductors before moving overseas.

“Taiwan took our chip business away. We had Intel. We have these great companies that did so well and it was taken from us. And we want that business back. We want it back in the United States. And if they don’t bring it back, we’re not going to be very happy.”

Taiwan is home to the world’s largest contract chipmaker, TSMC, a major supplier to companies including Apple and Nvidia.

Taiwan also runs a large trade surplus with the United States, which surged 83% last year, with the island’s exports to the U.S. hitting a record $111.4 billion, driven by demand for high-tech products such as semiconductors. – Reuters

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