White House revokes spending freeze in face of legal challenges

Move come after federal judge blocked freeze that disrupted payments to medical and childcare providers

Donald Trump’s administration pulled back a proposed spending freeze that threatened to disrupt hundreds of billions of dollars in aid to US programs, a White House official said on Wednesday.

The first major domestic policy reversal of the Republican president’s new term came after one federal judge had temporarily blocked the freeze and before another judge was due to hear a separate legal challenge. The proposal had thrown the federal government into chaos and disrupted payments to medical and childcare providers.

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Meta to report fourth-quarter earnings amid DeepSeek mania and ballooning AI investments

Zuckerberg likely to be asked about plans to spend $60-65bn on AI in 2025 as tech giant faces increased competition

Meta will report earnings for the fourth quarter of 2024 after US stock markets close on Wednesday.

Analysts will probably ask about Mark Zuckerberg’s plans to spend between $60bn and $65bn on AI infrastructure in 2025. That is up from the $50bn the CEO said he expected to spend at the end of last quarter. But as Meta faces increased competition, especially from new player DeepSeek AI, the company is ramping up its AI efforts.

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Harvey Weinstein back in court as judge set to decide #MeToo retrial start

Disgraced producer wants extra charge involving allegation from woman who was not in original case throw out

A judge on Wednesday set a 15 April trial date for Harvey Weinstein’s retrial, as the disgraced movie mogul pleaded in court to move the trial date sooner citing health conditions.

Weinstein appeared in court in New York on Wednesday morning, seated in a wheelchair. He addressed the court and begged the Manhattan criminal court judge Curtis Farber to move up the trial date to before 15 April, expressing he “can’t hold on anymore”.

The Associated Press contributed reporting.

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Federal workers decry Trump attempt to force mass resignations as ‘cruel joke’

Advocates say email sent to 3 million employees offering resignations is dangerous and ‘of questionable legality’

Federal workers and their advocates on Wednesday condemned the Trump administration’s attempt to encourage them to resign en masse, describing an unprecedented email from the government’s human resources department office as a ham-handed attempt to create hostility in their workplaces and offer a false promise of an easy transition out of government service.

On Tuesday, the US office of personnel management (OPM) sent nearly all of its 3 million employees an email offering them deferred resignations and warning that, if they choose to stay, they may be laid off or reassigned.

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Mexico to question Google over Gulf name change after Trump order

Claudia Sheinbaum says US government does not have right to change name of Gulf of Mexico to Gulf of America

Mexico will send a letter to Google to question its decision to change the name of the Gulf of Mexico for users of Google Maps in the US.

In a press conference on Wednesday, Mexico’s president, Claudia Sheinbaum, said the US government did not have the right to rename the entirety of the Gulf of Mexico, much of which is in international waters.

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EU launches ‘simplification’ agenda in effort to keep up with US and China

Ursula von der Leyen announces plans to cut red tape and boost innovation in second term as head of European Commission

The EU executive has announced “an unprecedented simplification effort” to cut regulations and boost innovation in an attempt to reverse Europe’s economic decline and better compete with China and the US.

In her first major policy announcement since starting a second term as the European Commission president last month, Ursula von der Leyen outlined policy proposals intended to boost Europe’s flagging economy.

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Wednesday briefing: The problems, perils and precedent of ‘cleaning out’ Gaza

In today’s newsletter: After Donald Trump’s remarks, renewed alarm about what will follow the first phase of the ceasefire

Good morning. Donald Trump presented his proposal as one rooted in a concern for the safety of Palestinians: it was time to find many of the residents of Gaza somewhere else to live. “I’d rather get involved with some of the Arab nations and build housing at a different location where they can maybe live in peace for a change,” he said. “You’re talking about probably a million and a half people, and we just clean out that whole thing and say: ‘You know, it’s over.’”

That was more than stream of consciousness: Trump doubled down on his comments on Monday. But the idea of “cleaning out” Gaza is not welcomed by the Palestinians who live there – or the countries that Trump has in mind as their new home. And if they were to be forced to leave after Gaza was devastated by the Israeli military, it would appear to be a clear case of ethnic cleansing.

Kumbh Mela festival | Dozens of people are feared to have died in crowd crushes at India’s Kumbh Mela festival, local officials have said, as vast crowds went to bathe at one of the holiest sites of the Hindu gathering. People were crushed in the early hours of Wednesday as tens of millions flocked to immerse themselves in the sacred confluence of the Ganges and Yamuna rivers.

UK economy | Rachel Reeves is unveiling plans to create “Europe’s Silicon Valley” between Oxford and Cambridge as she stakes the government’s success on kickstarting economic growth. The chancellor will announce a blueprint to improve infrastructure across the region in the hope of adding £78bn to the UK economy within a decade.

Extremism | Yvette Cooper will reject internal Home Office advice to widen the definition of extremism to include violent misogyny and conspiracy theorists, the Guardian understands. The home secretary is expected to reject a report saying that authorities should adopt an “ideologically agnostic” approach in favour of focusing on Islamist and far-right violence.

Tax | Roman Abramovich, the billionaire Russian oligarch, may owe British tax authorities as much as £1bn, according to analysis of documents that suggests his companies failed to pay tax on profits made through an elaborate offshore investment scheme.

Technology | US tech stocks tentatively recovered on Tuesday after the emergence of the Chinese DeepSeek app wiped $1tn (£800bn) in value from the leading US tech index. Nvidia recovered somewhat from Monday’s 17% drop, rising 9%.

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Oklahoma schools plan to require proof of students’ immigration status

Proposal from state board of education condemned by teachers and rights groups, as parents and students protest

Parents enrolling children in Oklahoma public schools will be required to provide proof of their child’s US citizenship or legal immigration status under a proposed rule approved Tuesday by the state board of education.

The board voted unanimously to approve the rule aimed at helping Donald Trump’s immigration policies. It still needs to be approved by the legislature and the governor.

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Trump offers US federal workers buyouts to resign

Government employees’ union says offer pressures career workers to quit and will cause chaos in federal programs

The Trump administration has offered federal workers buyouts worth more than seven months’ salary if they would leave their jobs by 6 February as the White House attempts to slash the civil service in an unprecedented overhaul of US government.

The office of personnel management, the government’s human resources agency, sent a memo to the federal workforce on Tuesday evening with four directives that it says Trump is mandating, including a full-time return to the office for most employees. It also said that the federal workforce would be subjected to “enhanced standards of suitability and conduct” and warned that most agencies would be downsized.

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California officials deny Trump’s claim that US military ‘turned on the water’ in state

State water officials say military ‘did not enter California’ and ‘federal government restarted federal water pumps’

California water officials said this week there’s no truth to Donald Trump’s assertion that the US military has entered California and “turned on the water”.

Trump’s comments, made on Monday on his social media platform Truth Social, are the latest in a series of remarks he’s made and actions he’s taken related to the state’s water policy following devastating wildfires that ripped through the Los Angeles area this month. He’s often offering an incomplete or incorrect assessment of the state’s water policies or tying together unrelated issues.

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How Trump tariffs could upend car markets in Europe, the US and China

Levies threaten exporters to US market, while scrapping of subsidies will hit EV sales – and Tesla could gain

The internal combustion engine appears to hold a special place in Donald Trump’s psyche. During his inauguration speech last week, he made a “sacred pledge” to raise US car production to “a rate that nobody could have dreamt possible just a few years ago”.

Car making and the oil industry – not AI, computer chips, or even cryptocurrencies – were the only two industries the new US president highlighted as he promised to make America a “manufacturing nation once again”.

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Special counsel prosecutors were fired on instructions of White House

Press secretary Karoline Leavitt says late-night dismissals came after White House’s personnel office issued memo

The justice department fired more than a dozen federal prosecutors involved in the two criminal prosecutions against Donald Trump after receiving instructions to do so from the White House, indicating the late-night purge was a political directive that deputized the justice department.

The termination of the career prosecutors were ostensibly at the direction of the acting attorney general, James McHenry, according to the notices sent to anyone remaining on the trial team of 18 who had worked for former special counsel Jack Smith.

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IS fighters in Syria could break free amid Trump aid cut, terrorism expert warns

Prediction by ex M16 counter-terror director comes as security paused around two main detention facilities

Donald Trump has thrown into doubt the security and administration of the main two detention facilities in north-east Syria that hold thousands of Islamic State fighters, the former counter-terrorism director of M16 Richard Barrett says.

The state of limbo has been caused in the short term by the US president unexpectedly suspending all USAid funding for 90 days, and by long-term uncertainty over his willingness to retain troops in Syria.

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US tech stocks partly recover after Trump says DeepSeek AI chatbot is ‘wake-up call’

Tentative rise comes after emergence of cheaper Chinese rival wiped $1tn off the value of leading US tech companies

US tech stocks tentatively recovered on Tuesday after Donald Trump described the launch of a chatbot by China’s DeepSeek as a “wake-up call” for Silicon Valley in the global race to dominate artificial intelligence.

The emergence of DeepSeek, which has built its R1 model chatbot at a fraction of the cost of competitors such as OpenAI’s ChatGPT and Google’s Gemini, wiped $1tn (£800bn) in value from the leading US tech index on Monday.

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Kansas officials say tuberculosis outbreak is largest on record in US history

Department of health reports ‘rapid number of cases in a short amount of time’ and says that there could be more

Kansas is facing an unprecedented outbreak of tuberculosis, one that has been labeled the largest of its kind on record in the US.

According to the Kansas state department of health and environment, as of 24 January, there had been 67 active tuberculosis cases since 2024 and an additional 79 latent or non-active infections. The infections – all since 2024 – were reported in Wyandotte and Johnson counties, which are part of the greater Kansas City area.

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AI-linked stocks make modest gains after DeepSeek rout; Boeing posts its second-biggest annual loss on record – business live

Donald Trump says China’s DeepSeek is a ‘wake-up call’ for American AI firms

Donald Trump has suggested that Microsoft is in talks to acquire TikTok and that he would like to see a bidding war over the app.

When asked if Microsoft was in talks to buy the app, the US president said “I would say yes”, adding “A lot of interest in TikTok. There’s great interest in TikTok.”

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Shooter kills at least two people and wounds two officers at Indiana grocery store

Shooting occurred at Martin’s Super Market in Elkhart and suspect was fatally shot when ‘engaged’ with police

A mass shooting at a grocery store in northern Indiana on Monday left three people dead – including the suspected shooter – and two police officers wounded, officials said.

Police received a 911 call at about 5.30pm about a shooting at Martin’s Super Market in Elkhart, the city police department said in a social media post. When officers arrived, they found two victims shot to death inside the store.

The Associated Press contributed reporting

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Alarm as Trump administration pauses all federal spending on grants and loans

Memo says social security and Medicare are excluded but congressional Democrats express ‘extreme alarm’

Donald Trump’s second presidential administration has paused all grants and loans disbursed by the federal government, potentially upending programs relied upon by millions of Americans.

In a two-page internal memo, Matthew Vaeth, Trump’s acting head of the office of management and budget (OMB), instructed all federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance”.

The Associated Press contributed reporting

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Trump repeats suggestion Palestinians should leave Gaza for Egypt and Jordan

US president insists leaders of both countries would agree to move that could be ‘temporary or long-term’

Donald Trump has repeated his suggestion that large numbers of Palestinians should leave Gaza for Egypt or Jordan, despite widespread opposition to the proposal from Palestinian leadership, the UN and US allies in the region.

Speaking to reporters onboard Air Force One on Monday night, the US president was asked about his comments over the weekend about “cleaning out” the Gaza Strip either “temporarily or long-term”. Trump reiterated he would “like to get [Palestinians from Gaza] living in an area where they can live without disruption and revolution and violence so much”.

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Trump will not be ‘meteor’ blow to Irish economy, says employers’ group

Businesses should avoid panic amid fears US will attempt to repatriate jobs and taxes, says Danny McCoy

Donald Trump will not be a knockout “meteor” to Ireland’s economy despite its heavy reliance on US multinationals, the head of the country’s business trade organisation has said.

While the US president told world leaders gathered at Davos last week that “Europe treats us very, very unfairly” there is a heightened sense of nervousness in Ireland that this could translate to an attempt to repatriate jobs and taxes from the 950 US companies there.

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