Nvidia expects to take $5.5bn hit as US tightens AI chip export rules to China
Shares plunge as firm says H20 chip, designed for Chinese market to comply with controls, now needs special licence
Nvidia has said it expects a $5.5bn (£4.1bn) hit after Donald Trump’s administration barred the chip designer from selling crucial artificial intelligence chips in China, sending shares in one of the US’s most valuable companies plunging in after-hours trading.
The company said in an official filing late on Tuesday that its H20 AI chip, which was designed specifically for the Chinese market, to comply with export controls, would now require a special licence to sell there for the “indefinite future”.
The US government, which is battling China in the race for AI supremacy, told Nvidia the new rules were designed to address the risk that its products might be “used in, or diverted to, a supercomputer in China”.
The chip designer now expects to report $5.5bn in charges in its financial quarter that ends on 27 April, because of stocks of H20 chips and sales commitments.
Nvidia, whose chips have helped drive huge developments in AI technology in recent years, has produced extraordinary returns for its investors. Its shares have risen by more than 1,400% since 2020, making it one of the few businesses in the US worth trillions of dollars.
However, the news on Tuesday sent Nvidia shares down about 6% in after-hours trading in the US, which could wipe off billions from its market value at the opening bell on Wednesday.
A chipmaker sell-off has already started in Asia, with South Korean semiconductor businesses such as Samsung Electronics and SK Hynix falling by as much as 3% overnight. In Europe, shares in ASML dropped 5% in early trading after its chief executive, Christophe Fouquet, said: “The recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while.” The Dutch company, which produces lithography machines used to make chips, also reported that orders in its first financial quarter were €3.94bn (£3.37bn), about €1bn less than investors had expected.
Shares in the US competitor Advanced Micro Devices also fell 7% in after-hours trading.
While so far the chip industry has been exempt from the 10% tariffs that started on 5 April, Trump said he would announce a levy on imported semiconductors over this week, adding that there could be some flexibility for certain companies in the sector.
This week, the US Department of Commerce initiated an investigation into the impact of imports of chips and pharmaceuticals on American national security.
The US relies heavily on chips imported from Taiwan. Trump placed a 32% tariff on products from the country, although this was suspended along with nearly all his “reciprocal” tariffs last week.
On Tuesday, Nvidia announced separately that it planned to build up to $500bn-worth of AI infrastructure in the US over the next four years, as it begins to bolster its presence in American manufacturing. Nvidia designs its chips but outsources production to contractors such as the Taiwan Semiconductor Manufacturing Company.
US officials under the Biden administration first barred Nvidia and other AI chipmakers from selling their most advanced chips to China in October 2022. Chinese officials have since increased their own controls on tools and processors needed to build semiconductors.
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- Artificial intelligence (AI)
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China tells US to ‘stop whining’ over tariffs as it reports GDP growth spurt
China Daily, the Communist party’s English-language mouthpiece, says US ‘has been living beyond its means for decades’
The US needs to “stop whining” about being a victim after “taking a free ride on the globalisation train”, China’s official state media said, as its government reported a spurt of economic growth ahead of an expected hit from Donald Trump’s tariffs.
Last week’s tit-for-tat tariff rises appear to have paused, but the conflict between the two biggest economies is showing no signs of letting up, with Beijing also reiterating its warning that it was “not afraid to fight”.
On Tuesday evening, China Daily, the ruling Chinese Communist party’s (CCP) English-language mouthpiece, published an editorial saying Donald Trump’s frequent claims of the US being “ripped off” were “hoodwinking the US public”.
“The US is not getting ripped off by anybody,” it said. “The problem is the US has been living beyond its means for decades. It consumes more than it produces. It has outsourced its manufacturing and borrowed money in order to have a higher standard of living than it’s entitled to based on its productivity. Rather than being ‘cheated’, the US has been taking a free ride on the globalisation train.”
It added: “The US should stop whining about itself being a victim in global trade and put an end to its capricious and destructive behaviour.”
The CCP has refused to capitulate to Trump’s demands to come to the table and renegotiate their terms of trade. On Wednesday, Beijing announced the replacement of its international trade negotiator. Li Chenggang will take over the role – and that of vice commerce minister – held previously by the veteran trade tsar Wang Shouwen. No reason was given for the change, as a result of which Li will lead any talks with the US to resolve the trade war, but it came amid a reshuffle of roles across China’s government.
In a statement delivered by the White House spokesperson Karoline Leavitt, Trump said on Tuesday “the ball is in China’s court”.
“China needs to make a deal with us. We don’t have to make a deal with them,” the statement said. “There’s no difference between China and any other country except they are much larger.”
On Wednesday, China’s foreign ministry hit back, saying the US started the trade war and Beijing had been clear that it did not want to fight, but also was not afraid to.
“If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit,” a foreign ministry spokesperson, Lin Jian, said.
Analysts and officials expect the trade war to have a significant impact on both economies – China was already struggling to rebound since the pandemic with low consumer spending and high youth unemployment.
On Wednesday, Beijing announced better-than-expected economic figures, driven in large part by exporters rushing to move products to the US before the tariffs came into effect.
China’s national bureau of statistics said the economy grew 5.4% in the first quarter, above analyst predictions. Sheng Laiyun, a senior official at the statistics bureau, warned, however, that the US tariffs “will put certain pressures on our country’s foreign trade and economy”.
China’s leader, Xi Jinping, is on a tour of Asian nations, on a trip that, although planned before the tariff war, has served to boost Beijing’s public and private efforts to strengthen trading relationships with other countries.
“China would be willing to partner with Malaysia and other Asean countries, following the trend of peace and the development of history, fend off the undercurrent of geopolitics and tribalism, break the unilateralism and protectionism, and create high-level strategic alliance between China and Malaysia that leads to a close community of common destiny,” Xi said in an editorial published ahead of his arrival in Malaysia on Wednesday.
While tariff rises appear to have paused at 145% on Chinese imports to the US and 125% on US imports to China, the two governments are finding other ways to raise the stakes.
China has reportedly ordered its airlines to pause purchases of aircraft-related equipment and parts from American companies, including Boeing. It was also reportedly considering ways to support airlines that lease Boeing jets and are facing higher costs.
About 10 Boeing 737 Max jets are being prepared to join Chinese airlines, and if delivery paperwork and payment on some of them were completed before Chinese “reciprocal” tariffs came into effect the planes may be allowed to enter the country, sources told Bloomberg.
On Wednesday, the Hong Kong postal service announced it would stop accepting US-bound packages. When sending items to the US, people in Hong Kong “should be prepared to pay exorbitant and unreasonable fees due to the US’s unreasonable and bullying acts”, Hong Kong Post said in a statement. Other postal items containing documents only, without goods, would not be affected.
Hong Kong is subject to the same tariffs as mainland China, although has not imposed any retaliatory tariffs of its own.
Meanwhile, Trump has announced an inquiry into further tariffs on pharmaceuticals and semiconductors – which would affect many of the US’s trading partners – and ordered an investigation that may result in tariffs on critical minerals, rare-earth metals and associated products such as smartphones.
China dominates global supply chains for rare metals and has imposed export controls on several rare earth elements since the trade war with the US erupted.
Additional research by Jason Tzu Kuan Lu
- China
- Trump tariffs
- Donald Trump
- news
EY, one of the “big four” accounting firms, is being investigated over how it audited the accounts of the Post Office as the postal branch network wrestled with the Horizon software scandal that resulted in hundreds of post office operators being wrongly convicted.
The UK’s accounting regulator, the Financial Reporting Council (FRC), said it had begun an investigation into whether the firm met its standards “with particular reference to matters related to the Horizon IT system”.
The Horizon accounting software was developed by Fujitsu and was at the heart of the Post Office scandal, described as the UK’s most widespread miscarriage of justice, which has been the subject of a long-running inquiry that concluded its hearings in December.
The FRC said:
So as not to interfere with the Post Office Horizon IT inquiry, the opening of this investigation follows the conclusion of the public hearings. While the inquiry was extensive, it purposefully did not encompass the role or knowledge of external auditors in its scope.
China tells US to ‘stop whining’ over tariffs as it reports GDP growth spurt
China Daily, the Communist party’s English-language mouthpiece, says US ‘has been living beyond its means for decades’
The US needs to “stop whining” about being a victim after “taking a free ride on the globalisation train”, China’s official state media said, as its government reported a spurt of economic growth ahead of an expected hit from Donald Trump’s tariffs.
Last week’s tit-for-tat tariff rises appear to have paused, but the conflict between the two biggest economies is showing no signs of letting up, with Beijing also reiterating its warning that it was “not afraid to fight”.
On Tuesday evening, China Daily, the ruling Chinese Communist party’s (CCP) English-language mouthpiece, published an editorial saying Donald Trump’s frequent claims of the US being “ripped off” were “hoodwinking the US public”.
“The US is not getting ripped off by anybody,” it said. “The problem is the US has been living beyond its means for decades. It consumes more than it produces. It has outsourced its manufacturing and borrowed money in order to have a higher standard of living than it’s entitled to based on its productivity. Rather than being ‘cheated’, the US has been taking a free ride on the globalisation train.”
It added: “The US should stop whining about itself being a victim in global trade and put an end to its capricious and destructive behaviour.”
The CCP has refused to capitulate to Trump’s demands to come to the table and renegotiate their terms of trade. On Wednesday, Beijing announced the replacement of its international trade negotiator. Li Chenggang will take over the role – and that of vice commerce minister – held previously by the veteran trade tsar Wang Shouwen. No reason was given for the change, as a result of which Li will lead any talks with the US to resolve the trade war, but it came amid a reshuffle of roles across China’s government.
In a statement delivered by the White House spokesperson Karoline Leavitt, Trump said on Tuesday “the ball is in China’s court”.
“China needs to make a deal with us. We don’t have to make a deal with them,” the statement said. “There’s no difference between China and any other country except they are much larger.”
On Wednesday, China’s foreign ministry hit back, saying the US started the trade war and Beijing had been clear that it did not want to fight, but also was not afraid to.
“If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit,” a foreign ministry spokesperson, Lin Jian, said.
Analysts and officials expect the trade war to have a significant impact on both economies – China was already struggling to rebound since the pandemic with low consumer spending and high youth unemployment.
On Wednesday, Beijing announced better-than-expected economic figures, driven in large part by exporters rushing to move products to the US before the tariffs came into effect.
China’s national bureau of statistics said the economy grew 5.4% in the first quarter, above analyst predictions. Sheng Laiyun, a senior official at the statistics bureau, warned, however, that the US tariffs “will put certain pressures on our country’s foreign trade and economy”.
China’s leader, Xi Jinping, is on a tour of Asian nations, on a trip that, although planned before the tariff war, has served to boost Beijing’s public and private efforts to strengthen trading relationships with other countries.
“China would be willing to partner with Malaysia and other Asean countries, following the trend of peace and the development of history, fend off the undercurrent of geopolitics and tribalism, break the unilateralism and protectionism, and create high-level strategic alliance between China and Malaysia that leads to a close community of common destiny,” Xi said in an editorial published ahead of his arrival in Malaysia on Wednesday.
While tariff rises appear to have paused at 145% on Chinese imports to the US and 125% on US imports to China, the two governments are finding other ways to raise the stakes.
China has reportedly ordered its airlines to pause purchases of aircraft-related equipment and parts from American companies, including Boeing. It was also reportedly considering ways to support airlines that lease Boeing jets and are facing higher costs.
About 10 Boeing 737 Max jets are being prepared to join Chinese airlines, and if delivery paperwork and payment on some of them were completed before Chinese “reciprocal” tariffs came into effect the planes may be allowed to enter the country, sources told Bloomberg.
On Wednesday, the Hong Kong postal service announced it would stop accepting US-bound packages. When sending items to the US, people in Hong Kong “should be prepared to pay exorbitant and unreasonable fees due to the US’s unreasonable and bullying acts”, Hong Kong Post said in a statement. Other postal items containing documents only, without goods, would not be affected.
Hong Kong is subject to the same tariffs as mainland China, although has not imposed any retaliatory tariffs of its own.
Meanwhile, Trump has announced an inquiry into further tariffs on pharmaceuticals and semiconductors – which would affect many of the US’s trading partners – and ordered an investigation that may result in tariffs on critical minerals, rare-earth metals and associated products such as smartphones.
China dominates global supply chains for rare metals and has imposed export controls on several rare earth elements since the trade war with the US erupted.
Additional research by Jason Tzu Kuan Lu
- China
- Trump tariffs
- Donald Trump
- news
EY, one of the “big four” accounting firms, is being investigated over how it audited the accounts of the Post Office as the postal branch network wrestled with the Horizon software scandal that resulted in hundreds of post office operators being wrongly convicted.
The UK’s accounting regulator, the Financial Reporting Council (FRC), said it had begun an investigation into whether the firm met its standards “with particular reference to matters related to the Horizon IT system”.
The Horizon accounting software was developed by Fujitsu and was at the heart of the Post Office scandal, described as the UK’s most widespread miscarriage of justice, which has been the subject of a long-running inquiry that concluded its hearings in December.
The FRC said:
So as not to interfere with the Post Office Horizon IT inquiry, the opening of this investigation follows the conclusion of the public hearings. While the inquiry was extensive, it purposefully did not encompass the role or knowledge of external auditors in its scope.
UK’s supreme court rules that legal definition of woman is based on biological sex
Judges say Equality Act definition excludes transgender women holding gender recognition certificates after gender critical campaigners’ challenge
The UK supreme court has ruled that the terms “woman” and “sex” in the Equality Act refer to a biological woman and biological sex, in a victory for gender critical campaigners.
Five judges from the UK supreme court ruled unanimously that the legal definition of a woman in the Equality Act 2010 did not include transgender women who hold gender recognition certificates (GRCs).
In a significant defeat for the Scottish government, which has not yet commented, their decision will mean that transgender women can no longer sit on public boards in places set aside for women.
It could have far wider ramifications by leading to much greater restrictions on the rights of transgender women to use services and spaces reserved for women, and prompt calls for the UK’s laws on gender recognition to be rewritten.
The UK government said the ruling “brings clarity and confidence” for women and those who run hospitals, sports clubs and women’s refuges.
A spokesperson said: “We have always supported the protection of single sex spaces based on biological sex. Single-sex spaces are protected in law and will always be protected by this government.”
Lord Hodge told the court the Equality Act (EA) was very clear that its provisions dealt with biological sex at birth, and not with a person’s acquired gender, regardless of whether they held a gender recognition certificate.
That affected policy-making on gender in sports and the armed services, hospitals, as well as women-only charities, and access to changing rooms and women-only spaces, he said.
In a verbal summary of the decision, he said: “Interpreting sex as certificated sex would cut across the definitions of man and woman in the EA and thus the protected characteristic of sex in an incoherent way. It would create heterogeneous groupings.
“As a matter of ordinary language, the provisions relating to sex discrimination, and especially those relating to pregnancy and maternity and to protection from risks specifically affecting women, can only be interpreted as referring to biological sex.”
Trans rights campaigners urged trans people and their supporters to remain calm about the decision.
The campaign group Scottish Trans said on social media: “We’d urge people not to panic – there will be lots of commentary coming out quickly that is likely to deliberately overstate the impact that this decision is going to have on all trans people’s lives. We’ll say more as soon as we’re able to. Please look out for yourselves and each other today.”
Ellie Gomersall, a trans woman in the Scottish Green party, called on the UK government to change the law to entrench full equality for trans people.
Gomersall said: “I’m gutted to see this judgment from the supreme court, which ends 20 years of understanding that transgender people with a gender recognition certificate are able to be, for almost all intents and purposes, recognised legally as our true genders.
“These protections were put in place in 2004 following a ruling by the European court of human rights, meaning today’s ruling undermines the vital human rights of my community to dignity, safety and the right to be respected for who we are.”
The gender critical campaign group For Women Scotland, which is backed financially by JK Rowling, said the Equality Act’s definition of a woman was limited to people born biologically female.
Maya Forstater, a gender critical activist who helped set up the campaign group Sex Matters, which took part in the supreme court case by supporting For Women Scotland, said the decision was correct.
“We are delighted that the supreme court has accepted the arguments of For Women Scotland and rejected the position of the Scottish government. The court has given us the right answer: the protected characteristic of sex – male and female – refers to reality, not to paperwork.”
Hodge, the deputy president of the court, said it believed the position taken by the Scottish government and the Equality and Human Rights Commission that people with gender recognition certificates did qualify as women, while those without did not, created “two sub-groups”.
This would confuse any organisations they were involved with. A public body could not know whether a trans woman did or did not have that certificate because the information was private and confidential.
And allowing trans women the same legal status as biological women could also affect spaces and services designed specifically for lesbians, who had also suffered historical discrimination and abuse.
In part of the ruling that could have sweeping implications for policy-makers in the sports world and sports centres, he said some services and places could “function properly only if sex is interpreted as biological sex”.
“Those provisions include separate spaces and single-sex services, including changing rooms, hostels, medical services, communal accommodation, [and] arise in the operation of provisions relating to single-sex characteristic associations and charities, women’s fair participation in sport, the operation of the public sector equality duty and the armed forces.”
Hodge urged people not to see the decision “as a triumph of one or more groups in our society at the expense of another”. He said all transgender people had clear legal protections under the 2010 act against discrimination and harassment.
Kishwer Falkner, the chair of the Equality and Human Rights Commission, which had intervened in the case to support the Scottish government’s stance, said it would need time to fully interpret the ruling’s implications.
However, the commission was pleased it had dealt with its concerns about the lack of clarity around single-sex and lesbian-only spaces.
“We are pleased that this judgment addresses several of the difficulties we highlighted in our submission to the court, including the challenges faced by those seeking to maintain single-sex spaces, and the rights of same-sex attracted persons to form associations.”
- Transgender
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- JK Rowling
- Women
- UK supreme court
- Scotland
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The supreme court ruling on the definition of a woman under the Equality Act brings “clarity and confidence, for women and service providers such as hospitals, refuges, and sports clubs”, a government spokesperson has said, reports the PA news agency.
Reacting to the supreme court ruling, a government spokesperson said:
We have always supported the protection of single-sex spaces based on biological sex.
This ruling brings clarity and confidence, for women and service providers such as hospitals, refuges, and sports clubs.
Single-sex spaces are protected in law and will always be protected by this government.
Judge rebukes Trump officials for not securing return of wrongly deported man
Administration will have to share under oath how it’s trying to get Kilmar Ábrego García back to US, says district judge
A federal judge sharply rebuked the Trump administration and scolded officials on Tuesday for taking no steps to secure the return of a man wrongly deported to a notorious prison in El Salvador, as the US supreme court had ordered in a contentious ruling last week.
The US district judge Paula Xinis said that Donald Trump’s news conference with El Salvador’s president, Nayib Bukele, where the leaders joked that Kilmar Ábrego García would not be released, did not count as compliance.
“To date nothing has been done,” Xinis said, a day after senior Trump officials also mounted an effort to sidestep the supreme court decision by offering increasingly strained readings of the order to claim they were powerless to bring back Ábrego García.
The judge ultimately said she would require the administration to produce details under oath about its attempts to return Ábrego García to US soil in two weeks, an unusually expeditious timeline for discovery that indicated how she intends to move with the case.
At issue at the hearing in federal district court in Maryland was the administration’s narrow reading of the supreme court order that compelled it to “facilitate” the return of Ábrego García, who was supposed to have been shielded from being sent to El Salvador.
The administration had earlier conceded Ábrego García’s deportation was an administrative error. But it has since taken the position that it is powerless to bring him back beyond removing domestic obstacles, and that courts lack the constitutional power to dictate the president to do more.
The lead lawyer for the administration, Drew Ensign, also said in legal filings before the hearing that even if Ábrego García were returned to the US, the justice department would deport him to a different country or move to terminate the order blocking his removal to El Salvador.
But the judge rejected the administration’s narrow reading of “facilitate”, noting the plain meaning of the word meant officials needed to secure Ábrego García’s release – and that US immigration and customs enforcement had previously taken a number of positions on its meaning.
“Your characterization is not bound in fact,” Xinis said. “I need facts.”
The administration argued it had sought to comply with the supreme court’s order when Trump addressed the case and Bukele questioned whether he was supposed to smuggle Ábrego García across the border – which Ensign argued showed the matter had been raised at the “highest levels”.
The judge appeared unimpressed by the argument. “It’s not a direct response,” Xinis said. “Nor is the quip about smuggling someone into the US. If you were removing domestic barriers, there would be no smuggling, right? Two misguided ships passing in the night.”
The judge told Ábrego García’s lawyers to prepare by Wednesday their questions for the administration about what steps it had taken. She said they could depose up to six officials, including Robert Cerna, a top official at Ice, and Joseph Mazarra, the acting general counsel of the Department of Homeland Security.
“Cancel vacation,” Xinis told Ensign. “Cancel appointments. I’m usually pretty good about this in my courtroom, but not this time.”
After the hearing, Ábrego García’s lawyer Rina Gandhi called the hearing a win but added they were not yet done. “We have not brought Kilmar home,” she told reporters, “but we will be able to question those involved and get information and evidence as required.”
She also accused the administration of acting in bad faith. “This case is about the government unlawfully – and admitting to unlawfully – removing a gentleman from this country, from his home, his family, his children, and taking no actions to fix them as ordered by the supreme court,” Gandhi said.
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Trump news at a glance: judge scolds officials over El Salvador deportation; Harvard holds firm
Judge considers whether officials are in contempt of court in deportation case; Obama backs Harvard in funding face-off – key US politics stories from Tuesday 15 April at a glance
A federal judge has sharply rebuked the Trump administration and is evaluating whether officials are in contempt of court for failing to secure the return of a man wrongly deported to a notorious prison in El Salvador.
The US supreme court last week ordered that the Trump administration to facilitate the release and return of Kilmar Ábrego García, a refugee who has legally lived in the US for 25 years.
Meanwhile, immigration authorities reportedly apprehended and deported a 19-year-old Venezuelan, Merwil Gutiérrez, despite agents’ realizing he was not whom they meant to arrest in a targeted operation.
Catching up? Here’s what happened on 14 April 2025.
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Ice deports Venezuelan teen despite reportedly knowing he was not a target
Merwil Gutiérrez sent from New York to El Salvador prison although family says he has no criminal history or gang ties
A 19-year-old Venezuelan in New York City reportedly was apprehended by Trump administration immigration authorities and deported to El Salvador despite agents’ realizing he was not whom they meant to arrest in a targeted operation.
Merwil Gutiérrez, whose family opened an asylum case after arriving in the US, was deported from the Bronx to the notorious Cecot prison in El Salvador despite his relatives’ insistence that he has no gang ties or criminal history, according to Documented, a newsroom dedicated to telling the stories of immigrants in New York City. The Gutiérrez family says it has been left without information or answers.
The teen was detained alongside 237 other Venezuelans on 24 February by US Immigration and Customs Enforcement (Ice). His father, Wilmer Gutiérrez, told Documented: “I feel like my son was kidnapped.
“I’ve spent countless hours searching for him, going from one precinct to another, speaking with numerous people who kept referring me elsewhere. Yet, after all this, no one has given me any information or provided a single document about his case.”
The elder Gutiérrez reportedly said he overheard Ice agents saying that his son had not been the person they had come to get.
“The officers grabbed him and two other boys right at the entrance to our building. One said: ‘No, he’s not the one,’ like they were looking for someone else. But the other said: ‘Take him anyway,’” he recalled.
Gutiérrez has no criminal record either in Venezuela or the US, his family said. He also did not have any tattoos, which is a feature that US law enforcement often use to link people to the Tren de Aragua gang – a transnational criminal organization from Venezuela – and to justify their expulsions from the country.
Despite this, Gutiérrez was arrested and later deported to El Salvador, to which he has no ties.
Wilmer Gutiérrez says he discovered through a news report that his son had been deported to El Salvador under the Alien Enemies Act of 1798. He watched videos on social media that showed detainees facing harsh conditions, such as having their heads shaved by authorities and being marched to their prison cells.
“I could have understood if he’d been sent back to Venezuela,” he said. “But why to a foreign country he’s never even been to?”
The Gutiérrez family’s reported ordeal comes after the Trump administration admitted to wrongly deporting a Maryland man, Kilmar Abrego García, to the same Cecot facility.
The president of El Salvador said in a meeting with Trump on Monday that the Salvadoran government would not order the return of Abrego García to the US.
Monday’s meeting at the White House came amid a broader push by the Trump administration to remove noncitizens from the US, including people who are here legally and have not been charged with crimes.
Trump has also openly stated that he would like to remove US citizens who commit unspecified violent crimes and send them to the same Salvadoran prison as Abrego García and Gutiérrez.
- US immigration
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Tuvalu marks ‘momentous occasion’ with unveiling of its first ATMs
All banking in the Pacific nation used to be done in cash but that is about to change on the main island of Funafuti
Tuvalu, one of the world’s most remote nations, has unveiled its first ever ATMs, at the headquarters of the National Bank of Tuvalu in the village of Vaiaku on Funafuti, the country’s main island.
Tuesday’s ceremony marked a historic shift for the island nation of 12,000 people, which has never before had access to electronic banking. Attended by prime minister Feleti Teo, the governor general, traditional leaders, members of parliament and representatives from the diplomatic and business sectors, the event celebrated a long-anticipated move toward financial modernisation.
Until now, all banking in Tuvalu has been done in cash. On pay day, workers are required to queue at the bank to withdraw their salaries, a process that often leads to long lines and limited access after the bank closes at 2pm. Daily transactions for groceries, hotels and services remain almost entirely cash-based.
“Today not only marks a momentous occasion but it is also historic as the bank moves into a totally new era, not just in terms of its services but also in terms of its strategic direction,” Teo said during his keynote speech.
Initiated in 2021, the total cost of the ATM and point-of-sale rollout exceeded A$3m, according to the bank’s general manager, Siose Penitala Teo, who spoke to the Guardian at the main office of the bank.
“We’ve been in an analogue space all along, these were dreams for us,” Teo said. “These machines don’t come cheap. But with government support and sheer determination, we were able to roll out this service for our people.”
The prime minister said the bank initially worked with an external adviser but later contracted Pacific Technologies Limited in Fiji to deliver and install the systems, which will now be operational at multiple locations on Funafuti, including at the airport and within local villages. Five ATMs have been installed, and 30 point-of-sale terminals will be installed across the island.
“We explored different options and undertook due diligence to find cost-effective solutions tailored to our customers’ needs,” Teo said. “That’s how we procured the ATMs and point-of-sale systems that are now operational.”
For now, only prepaid cards can be used at the machines. Teo said customers would have to obtain prepaid cards before they could use the ATMs.
The bank plans to roll out Tuvalu-issued debit cards next, with the goal of eventually providing Visa debit and credit card functionality that can be used overseas for travel and online purchases.
With about 6,000 banking customers, many of whom hold multiple accounts, the introduction of electronic banking is expected to ease congestion, reduce reliance on cash and improve access to financial services across the outer islands.
“We’re providing the service for free until people get the hang of it,” Teo said. “In time we’ll look at fees, but right now this is about accessibility and progress.”
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Doge unemployment ‘fraud’ discoveries are old finds from Biden era, experts say
Exclusive: Some aren’t even fraud but rather known attempts by states to protect victims of identity theft, former top official says
In a series of late-night posts on X last week, Elon Musk and his so-called “department of government efficiency” revealed the seemingly startling findings of their “initial survey” into unemployment benefits.
They cited examples of claimants who were deceased, between one and five years old, or not born yet. They even cited one case of someone with a listed birthday in 2154 allegedly claiming $41,000.
News of the claims swept across rightwing media, including Fox News and Breitbart, and were attributed to Doge. They were repeated by the secretary of labor, Lori Chavez-DeRemer, who declared during a cabinet meeting with Donald Trump that the revelations were the latest to be “exposed by our partners at Doge”.
“Your tax dollars were going to pay fraudulent unemployment claims for fake people born in the future!” Musk wrote on X, his social network. “There was no sanity check for impossibly young or impossibly old people for unemployment insurance.”
But there was, in reality, a “sanity check” of unemployment claims years before Doge launched its blitz of the federal government – including under Joe Biden. People previously involved with the process say Doge’s claims are lifted from it.
“They’re coming up like they uncovered something brand-new,” Andrew Stettner, who served as the director of unemployment insurance modernization at the US Department of Labor in the Biden administration, told the Guardian. “Going back in 2020 to say there was a lot of fraud – that’s the definition of old news.”
Though Doge and Musk failed to cite the survey, or the agency it came from, the US Department of Labor’s office of inspector general is tasked with auditing state unemployment benefit systems.
“They got some access to data from the Department of Labor and office of inspector general, and are trying to make conclusions without doing a full audit or understanding the content,” said Stettner.
Elizabeth Pancotti, managing director of policy and advocacy at the economic thinktank Groundwork Collaborative, said: “What you have is the issue of an outside person who doesn’t know anything coming in and claiming that everything’s broken. The public should be really skeptical of Elon Musk’s claims.”
“For the most part, he and his gaggle of 20-year-olds are going to these federal agencies of staff who have been there for five, 10, 15, 20 years working on these programs,” added Pancotti. “For the most part, these programs work as intended.
“And now you have people coming in, spending five minutes looking at them and claiming that there’s widespread fraud, or they’re broken or they could be fixed in these ways.”
Back in 2023, the office of inspector general at the US Department of Labor identified potential fraud involving individuals over 100, or under the age of 14, receiving unemployment benefits.
Some of the claims may not actually have contained the ages of the people filing, Stettner noted, as some states created pseudo identities to protect identity-theft victims.
A 2023 Department of Labor memo found that while one state appeared to be paying benefits to scores of claimants 100 years or older, the state clarified that this was not, in fact, happening. “Rather, this was the result of how the state ensured victims of fraud were not unfairly prevented from accessing benefits,” the memo said.
“This is a risk the department has already known about,” Stettner explained. “It’s already been written about. The department has put in additional cross-checks through our department integrity data analysis to flag these claims.
“The Department of Labor has done a whole fraud-risk analysis recommended by the government accountability office.”
Under the Biden administration, $2bn was allocated to state unemployment systems to improve fraud prevention and detection.
The office of inspector general at the US Department of Labor under the Biden administration had already identified the potential fraud of unemployment insurance from March 2020 to April 2022 in areas such as multi-state claims, deceased persons, federal prisoners, claims from people under the age of 14 or claims from those older than 100, or the use of suspicious emails used in claims.
More than 2,000 convictions were secured following work by the office from April 2020 to January 2025, resulting in recovered funds of $1.1bn.
And while the federal government has spent years investigating suspected fraud, thousands of workers who file for unemployment benefits are wrongly denied each year and are required to appeal, including 286,000 workers in 2024.
“It’s really not new to anyone at this point that there were fraud issues with unemployment insurance during the pandemic,” said Amy Traub, senior researcher on social insurance at the National Employment Law Project. “I think that coming back to it now is a distraction, and it’s a distraction from the fact that unemployment insurance really is not ready for a recession.”
The Department of Labor’s office of inspector general declined to comment on the claims made by Musk and Doge, but cited unemployment benefit fraud data available on its website. The dataset was last updated in December, under the Biden administration.
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Doge unemployment ‘fraud’ discoveries are old finds from Biden era, experts say
Exclusive: Some aren’t even fraud but rather known attempts by states to protect victims of identity theft, former top official says
In a series of late-night posts on X last week, Elon Musk and his so-called “department of government efficiency” revealed the seemingly startling findings of their “initial survey” into unemployment benefits.
They cited examples of claimants who were deceased, between one and five years old, or not born yet. They even cited one case of someone with a listed birthday in 2154 allegedly claiming $41,000.
News of the claims swept across rightwing media, including Fox News and Breitbart, and were attributed to Doge. They were repeated by the secretary of labor, Lori Chavez-DeRemer, who declared during a cabinet meeting with Donald Trump that the revelations were the latest to be “exposed by our partners at Doge”.
“Your tax dollars were going to pay fraudulent unemployment claims for fake people born in the future!” Musk wrote on X, his social network. “There was no sanity check for impossibly young or impossibly old people for unemployment insurance.”
But there was, in reality, a “sanity check” of unemployment claims years before Doge launched its blitz of the federal government – including under Joe Biden. People previously involved with the process say Doge’s claims are lifted from it.
“They’re coming up like they uncovered something brand-new,” Andrew Stettner, who served as the director of unemployment insurance modernization at the US Department of Labor in the Biden administration, told the Guardian. “Going back in 2020 to say there was a lot of fraud – that’s the definition of old news.”
Though Doge and Musk failed to cite the survey, or the agency it came from, the US Department of Labor’s office of inspector general is tasked with auditing state unemployment benefit systems.
“They got some access to data from the Department of Labor and office of inspector general, and are trying to make conclusions without doing a full audit or understanding the content,” said Stettner.
Elizabeth Pancotti, managing director of policy and advocacy at the economic thinktank Groundwork Collaborative, said: “What you have is the issue of an outside person who doesn’t know anything coming in and claiming that everything’s broken. The public should be really skeptical of Elon Musk’s claims.”
“For the most part, he and his gaggle of 20-year-olds are going to these federal agencies of staff who have been there for five, 10, 15, 20 years working on these programs,” added Pancotti. “For the most part, these programs work as intended.
“And now you have people coming in, spending five minutes looking at them and claiming that there’s widespread fraud, or they’re broken or they could be fixed in these ways.”
Back in 2023, the office of inspector general at the US Department of Labor identified potential fraud involving individuals over 100, or under the age of 14, receiving unemployment benefits.
Some of the claims may not actually have contained the ages of the people filing, Stettner noted, as some states created pseudo identities to protect identity-theft victims.
A 2023 Department of Labor memo found that while one state appeared to be paying benefits to scores of claimants 100 years or older, the state clarified that this was not, in fact, happening. “Rather, this was the result of how the state ensured victims of fraud were not unfairly prevented from accessing benefits,” the memo said.
“This is a risk the department has already known about,” Stettner explained. “It’s already been written about. The department has put in additional cross-checks through our department integrity data analysis to flag these claims.
“The Department of Labor has done a whole fraud-risk analysis recommended by the government accountability office.”
Under the Biden administration, $2bn was allocated to state unemployment systems to improve fraud prevention and detection.
The office of inspector general at the US Department of Labor under the Biden administration had already identified the potential fraud of unemployment insurance from March 2020 to April 2022 in areas such as multi-state claims, deceased persons, federal prisoners, claims from people under the age of 14 or claims from those older than 100, or the use of suspicious emails used in claims.
More than 2,000 convictions were secured following work by the office from April 2020 to January 2025, resulting in recovered funds of $1.1bn.
And while the federal government has spent years investigating suspected fraud, thousands of workers who file for unemployment benefits are wrongly denied each year and are required to appeal, including 286,000 workers in 2024.
“It’s really not new to anyone at this point that there were fraud issues with unemployment insurance during the pandemic,” said Amy Traub, senior researcher on social insurance at the National Employment Law Project. “I think that coming back to it now is a distraction, and it’s a distraction from the fact that unemployment insurance really is not ready for a recession.”
The Department of Labor’s office of inspector general declined to comment on the claims made by Musk and Doge, but cited unemployment benefit fraud data available on its website. The dataset was last updated in December, under the Biden administration.
- Trump administration
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European Commission president Ursula von der Leyen told the German weekly Die Zeit that “the West as we knew it no longer exist,” as she spoke of “historic” changes taking place as a result of Donald Trump’s presidency in the US.
In a wide-ranging interview, she defended the EU’s position on regulating US digital services even in the face of threats of removing US nuclear umbrella, as she pointedly said “we don’t have bros or oligarchs making the rules.”
Striking a delicate balance, she still sung praises for the US and the EU-US relationship, while urging countries to produce and buy more in Europe, particularly when it comes to increasingly critical defence supplies.
On European security, von der Leyen also warned that “while Putin may pause every so often, there is no limit to his imperial ambitions,” highlighting the existential risks facing the EU.
What’s notable is that the interview – originally conducted in German – was translated for the newspaper by von der Leyen’s office – as if she and her team wanted it to be more widely read across Europe (and beyond; hello Donald and JD.)
Either way, her comments come a day after the EU appeared to be growing frustrated with the lack of engagement on the US side when it comes to resolving the tariffs standoff, with commission spokesperson telling reporters that the bloc needed “an additional level of engagement from the US to keep the ball rolling forward.”
Further talks will be taking place in the background as the 90-day pause continues.
Let’s see what the day brings today.
It’s Wednesday, 16 April 2025, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
Donald Trump has gone on yet another rant about Harvard University on his social media platform Truth Social this morning.
It comes as the US education department said it was freezing about $2.3bn in federal funds to the Ivy League school.
The announcement followed Harvard deciding to fight the White House’s demands that it crack down on antisemitism and alleged civil rights violations, including shutting down diversity, equity and inclusion programs.
In the president’s typically rambling style, he posted:
Everyone knows that Harvard has “lost its way.” They hired, from New York (Bill D) and Chicago (Lori L), at ridiculously high salaries/fees, two of the WORST and MOST INCOMPETENT mayors in the history of our Country, to “teach” municipal management and government.
These two Radical Left fools left behind two cities that will take years to recover from their incompetence and evil. Harvard has been hiring almost all woke, Radical Left, idiots and “birdbrains” who are only capable of teaching FAILURE to students and so-called “future leaders.”
Look just to the recent past at their plagiarizing President, who so greatly embarrassed Harvard before the United States States Congress. When it got so bad that they just couldn’t take it anymore, they moved this grossly inept woman into another position, teaching, rather than firing her ON THE SPOT. Since then much else has been found out about her, but she remains in place.
Many others, like these Leftist dopes, are teaching at Harvard, and because of that, Harvard can no longer be considered even a decent place of learning, and should not be considered on any list of the World’s Great Universities or Colleges.
Harvard is a JOKE, teaches Hate and Stupidity, and should no longer receive Federal Funds. Thank you for your attention to this matter!
Dutton admits he made mistake on Indonesia in ABC leaders’ debate as Albanese evasive on electricity prices
Opposition leader also says ‘I’ll let scientists pass that judgment’ when asked if climate change impacts getting worse in second showdown
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Peter Dutton has admitted he made a mistake by wrongly claiming the Indonesian president had announced a proposal for Russia to base military aircraft in Indonesia, and declined to state whether the impacts of climate change were getting worse.
The opposition leader has also confirmed his plan to reduce the size of the federal public service by 41,000 positions by 2030 would not pay for the entirety of the Coalition’s policy platform, suggesting further cuts to government spending may be necessary.
The comments were made on Wednesday during the second leaders’ debate with Anthony Albanese hosted in ABC’s Parramatta studio in Sydney, where the prime minister repeatedly declined to state when electricity prices would come down under a re-elected government.
Dutton seized on the noncommittal answer, noting that Labor told voters before the last election that electricity prices would decline by $275 if an Albanese government was elected.
“They are making no commitments in this election other than if you vote Labor, your electricity and gas prices will go up,” Dutton said.
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When the leaders were asked by the ABC debate moderator David Speers whether they trusted Donald Trump, Albanese said “I have no reason not to”, while Dutton distanced himself, saying “I don’t know the president. I’ve not met him.”
In the hours before the debate, senior Labor ministers accused Dutton of making “reckless” comments about Indonesia, with the foreign affairs minister, Penny Wong, saying Dutton had “fabricated” a statement from the Indonesian president, Prabowo Subianto.
Dutton acknowledged he should not have claimed the Indonesian president had made an announcement about a Russian proposal to base Russian aerospace forces aircraft on Manuhua air force base on Biak island in Indonesia’s easternmost Papua region – about 1,400km from Darwin.
“The reference I was making should not have been to the president, it was in relation to sources from the Prabowo government,” Dutton said. “It was a mistake and I am happy to admit [that].”
Albanese described Dutton’s comments as “extraordinary” and argued they demonstrated he had “no understanding of the need for diplomacy”.
The pair also clashed over the Coalition’s plan to reduce the size of the federal public service by 41,000 jobs by the end of the decade, through a mixture of natural attrition and voluntary redundancies.
When asked whether “cuts” to the public service would cover all of its election commitments, Dutton said “the short answer is no”.
“We won’t achieve all of the savings we need to achieve through our changes to the public service,” Dutton said.
Dutton also declined to state which departments the 41,000 jobs would come from beyond frontline services, which the opposition leader has said would be ringfenced.
“It’s not something you can do from opposition, to redesign the public service in the way that works,” Dutton said.
In response, Albanese accused Dutton of not being upfront with the Australian public.
“He won’t say where the cuts will be but says vote for me, trust us, we will tell you after the election,” Albanese said.
When asked whether the impacts of climate change – including in his own state of Queensland – were getting worse, Dutton said: “I’ll let scientists pass that judgment.
“I don’t know because I’m not a scientist and I can’t tell you whether the temperature has risen in Thargomindah because of climate change or the water levels are up.”
“There’s an impact. The question is what we can do about it as a population of 27 million people. We should be good corporate citizens, good international neighbours. But at the moment China is building two coal fired power stations a week.”
In his closing statement, Albanese accused Dutton of not accepting the science of climate change.
“We’ve heard tonight no acceptance of the science of climate change,” Albanese said. “We accept it and we’re acting on it.”
Both leaders were asked whether their initiatives to address housing affordability would increase property prices, as many economists have claimed, but both said measures to increase supply would offset any increase in demand.
Albanese denied claims his government had modelled the impact of any change to negative gearing, before later clarifying that the modelling did exist and that it wasn’t commissioned by his team.
“It was modelled by the government,” Dutton said. “That’s publicly available. This prime minister has a problem with the truth.”
The next leaders’ debate will be held next Tuesday, and will be hosted on Nine. The final leaders’ debate will be held on 27 April, just six days before Australia heads to the polls.
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New details of Gene Hackman and Betsy Arakawa’s final days released
Arakawa was shown to have been researching medical conditions related to Covid-19 and flu and police bodycam footage from inside the couple’s home released
Authorities on Tuesday released a lengthy investigation report detailing some of the last emails, phone calls and internet searches by Gene Hackman’s wife Betsy Arakawa in the days before her death, indicating that she was scouring for information on flu-like symptoms and breathing techniques.
Arakawa died in February of hantavirus pulmonary syndrome – a rare, rodent-borne disease that can led to a range of symptoms that include flu-like illness, headaches, dizziness and severe respiratory distress, investigators said. Hackman is believed to have died about a week later of heart disease with complications from Alzheimer’s disease.
The partly mummified remains of Hackman, 95, and Arakawa, 65, were found in their Santa Fe home on 26 February, when maintenance and security workers alerted police.
According to the newly released report, a review of Arakawa’s computer showed she was actively researching medical conditions related to Covid-19 and flu-like symptoms between 8 February and the morning of 12 February. The searches included questions about whether Covid-19 could cause dizziness or nosebleeds.
She also had mentioned in an email to her massage therapist that Hackman had woken up on 11 February with flu or cold-like symptoms but that a Covid-19 test was negative and she would have to reschedule her appointment for the next day “out of an abundance of caution”.
Arakawa’s search history also showed a query for a concierge medical service in Santa Fe on the morning of 12 February. A review of her phone records by investigators showed she had a call with the service that lasted less than two minutes and missed a return call later that afternoon. Investigators also reviewed a call history to Hackman’s home phone along with voicemails and security footage from stores that Arakawa had visited on 11 February.
Authorities also released more redacted police body camera footage from inside the home as sheriff’s deputies and investigators tried to piece together what had happened to the couple. Investigators found one of the couple’s dogs sitting in the bathroom near Arakawa’s body. The officers then walked around the house to where they said Hackman was found dead.
“Two totally separate areas of the house,” an officer comments in the footage. “Mhm, it’s strange,” another responds. The officers, worried about a possible gas leak, then begin opening doors and windows around the house. Subsequent testing showed there were no leaks.
The footage shows them going through rooms of the home and finding nothing out of the ordinary and no signs of forced entry, with the couple’s art collection still adorning shelves and walls throughout. The investigators can also be seen counting cash that was found around the home and looking at the prescription medication on the bathroom counter as one of the couple’s dogs barked in the background.
The footage, photos and reports are being released with redactions as the result of a recent court order that mandated any depictions of the deceased couple would have to be blocked from view. All photos, video and documents from the investigation had been restricted from release by an earlier, temporary court order. The Hackman estate and family members had sought to keep the records sealed to protect the family’s constitutional right to privacy.
A report by the New Mexico Department of Health showed an environmental assessment of the Hackman property found rodent faeces in several outbuildings and live traps on the property. The inside of the home was clean, with no evidence of rodent activity. Nestled among the piñon and juniper-covered hills overlooking Santa Fe, the Hackman home is not unlike others in the area as mice are common in the area.
One of the couple’s three dogs was also found dead in a crate in a bathroom closet near Arakawa, while two other dogs were found alive. A state veterinary lab tied the dog’s death to dehydration and starvation.
An attorney for the estate, Kurt Sommer, argued during a hearing last month that the couple had taken great pains to stay out of the spotlight during their lifetimes and that the right to control the use of their names and likenesses should extend to their estate in death. The Associated Press, CBS News and CBS Studios intervened in the matter, saying in court filings that they would not disseminate images of the couple’s bodies and would blur images to obscure them from other records.
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In the red: global wine sales fall to lowest levels since 1961
Consumption and production falls in almost every market as industry fears a ‘generational’ change in drinking habits
Worldwide consumption of wine fell in 2024 to its lowest level in more than 60 years, the main trade body has said, raising concerns about new risks from US tariffs.
The International Organisation of Vine and Wine (OIV) said on Tuesday that 2024 sales fell 3.3% from the previous year to 214.2m hectolitres.
The OIV, whose report was based on government figures, said this would be the lowest sales figure since 1961, when sales were 213.6m hectolitres.
Production is also at its lowest level in more than 60 years, having fallen 4.8% in 2024 to 225.8m hectolitres.
The OIV’s statistics chief, Giorgio Delgrosso, said the wine industry had been hit by a perfect storm as health concerns drive down consumption in many countries and economic factors added to troubles.
“Beyond the short-term economic and geopolitical disruptions, it is important to consider the structural, long-term factors also contributing to the observed decline in wine consumption” the IOV’s annual report said.
The OIV said the consumer was now paying about 30% more for a bottle now than in 2019-20 and overall consumption had fallen by 12% since then.
In the United States, the world’s top wine market, consumption fell 5.8% to 33.3m hectolitres.
Delgrosso said tariffs ordered by the US president, Donald Trump could become “another bomb” for the wine industry.
Sales in China remain below pre-Covid levels. In Europe, which accounts for nearly half of worldwide sales, consumption fell 2.8% last year. In France, one of the key global producers, 3.6% less wine was consumed last year. Spain and Portugal were among the rare markets where consumption increased.
The OIV said production had been hit by environmental extremes such as above-average rainfall in some regions and droughts in others.
Italy was the world’s top producer with 44m hectolitres, while France’s output fell 23% to 36.1m hectolitres, its lowest level since 1957.
Italy is also the biggest wine exporter and its trade increased because of the popularity of sparkling wines such as prosecco.
Spain produced 31m hectolitres, while US wine output fell 17.2% to 21.1m hectolitres, mainly because of extreme heat.
The OIV could not predict if consumption would take off again and industry players, such as the French chain of wine shops Nicolas, say there is a “generational” fall in drinking.
“People do not drink in a festive way any more and young people consume less than their parents,” the company said in a statement to Agence France-Presse.
However, “people drink less, but better”, Nicolas said, and so are ready to spend more.
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