Former FBI Official Says Left-Wing Terror Will Continue Unless ICE ‘Changes Tactics’
Former Senior Executive (SES) FBI agent Christopher O’Leary, whose two-decade career focused on counterterrorism probes for the bureau, appeared blame Immigration and Customs Enforcement (ICE) for inviting attacks against its officers – urging the agency to overhaul its enforcement strategies such as ‘wearing masks’ (a nod to California) – to curb violence from radical leftwing extremists.
During an appearance on MSNBC’s “Katy Tur Reports” Wednesday, O’Leary weighed in on the brazen shooting at an ICE facility in Texas, conceding that overheated rhetoric should be dialed back while shockingly pinning the blame on ICE’s own playbook.
Former FBI agent Christopher O’Leary is on MSNBC telling Trump to bend the knee and stop the deportations of people here illegally, or the attacks will not only continue, but they will escalate. pic.twitter.com/TlqR9PbnBx
“You also have to start looking at what policies you’ve implemented and what tactics you’re using, because, if you tone down the rhetoric, but you leave those other pieces in place, nothing’s going to change,” O’Leary, who now is a MSNBC analyst, told Tur.
“Terrorism is theater. It’s intended to influence an audience beyond its immediate victims,” O’Leary said. “It’s putting a message out, and terrorism falls into really three categories: It’s either religiously motivated, ideologically motivated, or, in this case, politically motivated.
“The politically motivated ones, it doesn’t happen in a vacuum. It happens because conditions have been set that people start acting out against,” he added.
The former FBI agent doubled down, seemingly painting ICE as the villain in a narrative straight out of the progressive grievance handbook: “Distrust in institutions – that’s been building for quite some time – attacks on institutions, the wealth gap, oppressive policies – at least this is what people perceive – and then the militarization of ICE and other federal law enforcement, the wearing of the masks, the aggressive tactics. So, the people who are starting to act out against this feel it’s their only recourse.”
Related: DHS told California to pound sand over a new law banning federal immigration agents and other law enforcement personnel from wearing face masks while on duty.
“Again, this is predictable. We see this happening throughout our history and in other places as well. So, we can tone down the rhetoric, and that’s the right message,” O’Leary added. “But you also have to start looking at what policies you’ve implemented and what tactics you’re using, because, if you tone down the rhetoric, but you leave those other pieces in place, nothing’s going to change.”
ICE is still reeling after 29-year-old gunman Joshua Jahn allegedly unleashed a hail of bullets on a Dallas ICE facility early Wednesday morning, killing one detainee and leaving two others in critical condition before cowardly taking his own life.
Officials confirmed the shooter scrawled “ANTI-ICE” on an unused bullet, a chilling manifesto of hatred against agents enforcing America’s immigration laws.
Miraculously, no ICE officers were harmed in the indiscriminate attack, which acting ICE Director Todd Lyons slammed as a direct assault on federal personnel risking their lives to protect the homeland.
“Seeing the photos today, some of the bullets were in an office that I used to have there,” Lyons said. “It’s just a horrible feeling. People always ask me what’s the thing that keeps me up at night. It’s the safety of the men and women of ICE. My heart goes out to that detainee’s family. We’re charged with their protection, their custody. Nothing like that should happen.”
In response to the shooting, President Donald Trump announced that he is readying an Executive Order to expand targeting of domestic terror groups.
“The continuing violence from Radical Left Terrorists, in the aftermath of Charlie Kirk’s assassination, must be stopped. ICE Officers, and other Brave Members of Law Enforcement, are under grave threat,” Trump wrote in a statement. “We have already declared ANTIFA a Terrorist Organization, and I will be signing an Executive Order this week to dismantle these Domestic Terrorism Networks.”
DoJ Reportedly Directs Prosecutors To Investigate Soros Foundation Amid Far-Left Chaos Nationwide
The news cycle for dark-money, billionaire-funded NGOs is about to get optically displeasing for the Democratic Party and its elitist donor class, who have bankrolled what we consider the “protest-industrial complex.”
For years, these leftist billionaire-backed nonprofits have waged an all-out war against President Trump and his MAGA base, funding and facilitating nonstop leftist “color revolution” operations, propping up extremist movements, indoctrinating kids with toxic woke ideology and turning them into revolutionaries, and amplifying a decade of dangerous rhetoric that smeared MAGA as “fascists” and “Nazis.” These leftist, or Marxists, also fueled nation-killing agendas like DEI and criminal and social-justice reforms, which have proven disastrous for the longevity of the country.
A new report from The New York Times shows the Trump administration is preparing to investigate dark-money-funded NGOs that operate in the shadows, with the ultimate goal of not only destroying President Trump and MAGA, but also driving capitalism to collapse and ensuring the nation as we know it today no longer exists in the next decade.
NYT said a senior Justice Department official directed at least six U.S. attorneys’ offices to prepare investigative plans targeting the Open Society Foundations (OSF), bankrolled by radical leftist billionaire Democratic donor George Soros – now his leftist son, Alex, runs operations.
NYT’s report comes after the Capital Research Center, a think tank that tracks foundations, charities, and other nonprofits, released a report last week detailing an explosive revelation: OSF “gave $80 million to pro-terror groups.”
Let’s take a step back to understand that cracks were already rapidly forming across the NGO world shortly after the Trump administration nuked the United States Agency for International Development. Then came domestic terrorist operations by far-left groups that burned Tesla showrooms and vehicles nationwide. At the time, we focused on the Gates Foundation that funded the Aarbella network that plowed millions into ‘No Kings’ protests (read report). These protests ultimately failed, but they were color revolution-style operations aimed at influencing public opinion polls and promoting regime change in Washington. This is the same bullshit strategy U.S. intelligence agencies use overseas.
💰 $114.8 Million Dark Money Infusion: The Arabella Advisors network has funneled at least $114.8 million to “No Kings” protest organizers and affiliates
according to most recent (’19-’23) financial disclosures analyzed by GAI. pic.twitter.com/qWHyuAa7Tg
Then came revelations late in the summer, via a NYT report, that the Gates Foundation had severed ties with the Arabella dark-money network. And for good reason: the foundation likely realized that money funneled into the Arabella network would only strengthen Trump’s push to launch investigations into the NGO world (deep state/parallel government). And that’s precisely what might have happened.
Late summer arrived when Trump, out of the blue, began blasting Soros on Truth Social: he “should be charged with RICO because they support violent protests.” Trump was likely referring to anti-ICE and Tesla takedown protests earlier in the year.
Shortly after, a series of leftist violence erupted – from the transgender shooter who stormed a church in Minneapolis, to the leftist with a transgender boyfriend suspected in the Kirk political assassination, to Wednesday’s ICE attack in Texas by a far-left radical, which merely activated the Trump administration into launching war against the radical left that has been fueling this chaos and the rise in far-left militancy for years, something even the The Atlantic admitted this week as major problem.
Civil terrorism expert Jason Curtis Anderson describes the rise in far militancy as “nihilistic accelerationism” suggesting that “Far-left extremism extends far beyond groups like Antifa. There is an entire revolutionary (marxist) ecosystem of interconnected entities: billion-dollar progressive NGOs, anarchist networks, political organizations such as the DSA, foreign influence operations like the Singham network, gaming platforms, Discord servers and reddit threads, the dark web, and even civil-rights organizations staffed with “movement lawyers” fully dedicated to waging war against the West until it collapses.”
Marxist-aligned groups operating across America to subvert the nation and collapse capitalism are already “planning war against fascists.”
Meanwhile, the Trump administration is moving full steam ahead to neutralize radical leftists and their NGOs that sow chaos – a crackdown that will extend well beyond Soros and likely include Roy Singham in China, as well as PFLP, Samidoun, and leftist American dynasty families and their nonprofits. Americans remember who funded the BLM riots that destroyed their businesses and cities. Accountability is coming.
Former President Barack Hussein Obama has chimed in on the Tylenol controversy, after President Donald Trump warned pregnant women not to take the drug (acetaminophen), citing research showing a link to autism in children.
In a Thursday post to X, Obama defended the drug – writing that ‘broad claims around certain drugs and autism’ have been ‘continuously disproven,‘ – and as such, ‘undermine public health, do harm to women who are pregnant,’ and ‘create anxiety for parents who do have children who are autistic…
We have people in power making broad claims around certain drugs and autism that have been continuously disproven. The degree to which those comments can undermine public health, do harm to women who are pregnant, create anxiety for parents who do have children who are autistic –… pic.twitter.com/rxCZ7OIzs8
Perhaps now is a good time to point out that donations from employees of Tylenol maker Kenvue have overwhelmingly donated to Democrats.
Needless to say, Obama must have missed all the receipts showing a mountain of research – as well as Tylenol’s own warnings – that pregnant women avoid the drug, or ‘talk to your doctor’ – and got scorched in the replies.
Wait, you’re now actually calling these warnings some kind of “violence”? Even though this Mount Sinai study, summarized via press release around a month ago, supports a link between acetaminophen and autism/ADHD?
Truly next level.https://t.co/Qvap9HSU4upic.twitter.com/xde9kvHLfI
Tylenol, meanwhile, has issued a hilarious statement in the wake of this PR disaster:
“Acetaminophen is the safest pain reliever option for pregnant women as needed throughout their entire pregnancy,” said a spokesperson. “Our products are safe and effective when used as directed on the product label. We recommend pregnant women do not take any over-the-counter medication, including acetaminophen, without talking to their doctor first.“
Trump’s Trade Deal With South Korea On The Rocks As Lutnick Seeks More Cash
A little over a month ago, we joked that Trump was throwing around such ridiculous trade deal numbers – investments in the hundreds of billions if not trillions from countries for whom said promises were multiples of their GDP…
… the while impressive sounding, the while house of trade cards would crumble the moment someone does anything more than cursory due diligence, or merely peeks behind the curtain to try to understand what was just signed.
It appears that South Korea just peeked.
According to the WSJ, Trump’s trade deal with South Korea – announced with so much fanfare – is on shaky ground, with Commerce Secretary Howard Lutnick taking a tough line in talks as some Seoul officials privately argue to allies that the White House is moving the goal posts.
As a reminder, in late July Trump said the U.S. had agreed to lower South Korea’s reciprocal tariffs, plus levies on autos, to 15% from a proposed 25%. In exchange, South Korea pledged $350 billion in U.S. investments, plus another $100 billion in American energy purchases.
Well, it appears that Trump is altering the deal (and pray he doesn’t alter it further). Lutnick, in recent conversations with South Korean officials, has discussed with Seoul the idea of increasing the $350 billion they had previously guaranteed to the U.S. in July and suggested the final tally could get closer to the $550 billion pledged by Japan.
Furthermore, the commerce secretary has also told South Korean officials in private that Trump is looking for more of the funding to be provided in cash rather than loans, a recurring joke by those who first pointed out that the deal is, in a word, ridiculous as the $350BN represents a fifth of the country’s entire gross domestic product.
According to the WSJ, the fate of the Trump administration’s trade pact with South Korea represents a key barometer for the U.S.’s broader tariff dealmaking with dozens of countries. Many of those deals, including the one with Seoul, have been verbal, not signed, agreements. That has left a gulf between the U.S. and some of its key trading partners over what it would take to cross the finish line.
A rather naive take came from a White House official who told the WSJ that while the U.S. is working to fine-tune its agreement with South Korea, the administration isn’t asking for anything that would represent a “dramatic departure” from what was already agreed upon. Full details of that framework haven’t been disclosed.
The good news is that so far at least the cracks in the deal haven’t spilled over diplomatically: Treasury Secretary Scott Bessent reaffirmed to President Lee Jae Myung on Wednesday the strong economic and security ties between the U.S. and South Korea on the sidelines of the United Nations General Assembly, according to a Treasury spokesperson. Lee expressed hope for a “commercially reasonable” agreement, a top Seoul official said.
South Korea is closely watched because its trade accord closely mirrors that of neighboring Japan, which, along with the U.K., represents one of the few deals officially signed by both countries. A close ally of Washington and home to America’s largest overseas U.S. military base, South Korea was pegged by the Trump administration to be among the first major trade-deal targets, alongside Australia, India, Japan and the U.K.
But at home, South Korean officials are facing tougher political pressure to not give too much ground, with the public still irked over the immigration raid this month at a Hyundai Motor complex in Georgia that resulted in the arrest of more than 300 South Koreans (whose visas were improper as we subsequently learned as the company had “cut corners” on US visas instead of hiring domestic US workers). All but one of the detained Koreans have since returned home.
Washington’s ability to close a deal with Seoul could offer Trump much-needed momentum to complete others. But inaction could relieve negotiating pressure on trading partners, who have bristled at the steep asking price and await clarity on the legal issues swirling around Trump’s proposed tariffs.
Trump said on social media at the time he would select the projects funded by South Korea, with his administration controlling how the money is distributed. He offered no further details on the deal’s structure. Officials in Seoul almost immediately disputed Trump’s assertion.
Lutnick had been pushing the South Koreans to sign a deal more aligned with Japan’s agreement, particularly around the enormous investment funds pledged to the U.S. in exchange for tariff relief, according to WSJ sources.
Japan has earmarked $550 billion for U.S. investment projects as part of a memorandum of understanding signed earlier this month. A committee led by Lutnick will make recommendations to Trump on which projects to pursue, and the U.S. stands to reap 90% of the profits from each investment after Japan has recouped its original outlay. By agreeing to those terms, Tokyo saw its lower 15% auto tariff take effect earlier this month, down from the prior 27.5%. That puts Japan among the countries that have seen a crucial reduction from Trump’s proposed auto tariffs.
Lutnick has made clear that, while South Korea is unlikely to come substantially closer to Japan’s $550 billion figure, in his view Seoul must agree to many of the same terms arranged with Japan. Lutnick doesn’t want to give the impression the administration is offering a dramatically different deal structure to South Korea. That reflects a concern that doing so could undermine the signed U.S. agreement with Japan (which is a document that isn’t legally binding).
Lutnick never demanded a total payment of $550 billion from South Korea, according to a spokesman from South Korea’s Ministry of Trade, Industry and Economy, which handles trade talks with the U.S. He declined to comment further.
Still, behind the scenes the panic is palpable and suddenly the entire deal looks on the verge of collapse. In recent days, South Korea, through its embassy in Washington, D.C., has been dialing allies in Washington and warning them the Trump administration is trying to acquire last-minute concessions after the two sides had already come to a verbal agreement, according to a person familiar with the calls.
The discussions between Lutnick and his South Korean counterparts have taken place as recently as this month in New York. In these recent talks with Washington, Seoul has sought to make clear it isn’t comparable to Tokyo. South Korea has stressed its economy, with a gross domestic product of roughly $1.8 trillion, is roughly two-fifths the size of Japan’s.
Tokyo also has a currency-swap deal with Washington, which it can tap for U.S. dollars in a crisis. South Korea lacks such a foreign-exchange arrangement and would potentially need to liquidate U.S. dollar reserves to fund the $350 billion. That sum would swallow up more than 80% of South Korea’s current dollar reserves, potentially leaving it vulnerable in a financial emergency.
South Korean officials, including Lee, have recently said accepting the U.S. offer could trigger a financial crisis for the country. In fact, according to a Reuters report, South Korea now demands a Fed currency swap be implemented so the US can bailout Korea… after it makes its mandatory payments to the Trump admin!
“Without a currency swap, if we were to withdraw $350 billion in the manner that the U.S. is demanding and to invest this all in cash in the U.S., South Korea would face a situation as it had in the 1997 financial crisis,” he said through a translator.
Lee, a liberal, took office in a June snap election after his conservative predecessor, Yoon Suk Yeol, was removed from office and jailed for briefly imposing martial law. Lee has sought to calm the country and its economy and said he plans to use his U.S. visit to tell the world that “democratic Korea is back”.
Lee met Trump for their first summit in August, saying he had built a strong personal tie with the U.S. leader, despite not agreeing on a joint statement or concrete announcement.
Commerce Secretary Howard Lutnick has said South Korea should follow Japan’s deal with the United States. He said Seoul either needs to accept the deal or pay the tariffs, using the Trump administration’s depiction of foreign governments paying the levies, which are instead paid by U.S. importers. Lee, asked if he would walk away from the deal, said: “I believe that between blood allies, we will be able to maintain the minimum amount of rationality.”
South Korea has proposed a foreign exchange swap line with the U.S. to reduce the shock of the investments on the local market for the won currency. Lee did not address how likely the U.S. was to agree or whether that would be enough for the deal to go forward.
He said South Korea is different from Japan, which struck a trade deal with the U.S. in July. Tokyo has more than double South Korea’s $410 billion foreign exchange reserves, an international currency in the yen and a swap line with the United States, Lee said.
And once the incentives are aligned for South Korea to “have a crisis” to evade its tariff obligations, it will do just that… which means that it will be up to the Fed to not only rescue Seoul, but to indirectly pay the US treasury.
Which may have been Trump’s plan all along.
“The devil is in the details,” Lutnick said. “The Koreans either accept that deal or pay the tariffs. Black and white.”
It increasingly appears they may just end up paying the tariffs.
The Department of Homeland Security (DHS) said on Sept. 22 that it will defy California’s new law banning federal immigration agents and other law enforcement personnel from wearing face masks while on duty.
“To be clear: We will NOT comply with Gavin Newsom’s unconstitutional mask ban,” DHS said in a social media post.
DHS assistant secretary Tricia McLaughlin accused California Gov. Gavin Newsom of “fanning the flames of division, hatred, and dehumanization of our law enforcement” by signing the ban.
Newsom signed the measure on Sept. 20, making California the first state to prohibit most officers from covering their faces during official duties. The move followed criticism of masked Immigration and Customs Enforcement (ICE) agents conducting operations, which Newsom described as resembling a “dystopian sci-fi movie.”
“Unmarked cars, people in masks, people quite literally disappearing,” Newsom said. “No due process, no rights, no right in a democracy where we have rights.”
Trump administration officials have defended the masks as essential for agent safety at a time when immigration enforcement has grown politically explosive, in some cases drawing violent anti-ICE protests.
“At a time that ICE law enforcement faces a 1,000 percent increase in assaults and their family members are being doxxed and targeted, the sitting Governor of California signs unconstitutional legislation that strips law enforcement of protections in a disgusting, diabolical fundraising and PR stunt,” McLaughlin said.
DHS said that ICE agents “clearly” identify themselves during operations, wearing vests marked with ICE/ERO or Homeland Security and using vehicles with obvious insignia. The masks, the agency said, protect officers from being targeted by “highly sophisticated gangs like Tren de Aragua and MS-13, criminal rings, murderers, and rapists.”
The new law bans facial coverings such as neck gaiters and ski masks for local and federal officers—including immigration agents—while on duty. Exceptions allow motorcycle helmets, SWAT masks, N-95 respirators, undercover disguises, and tactical gear. The restrictions do not apply to state police.
Newsom’s office said the law responds directly to federal agents’ use of masks during immigration operations, including those in Los Angeles and Southern California that sparked protests this summer. “No one should be afraid that unidentified masked men will disappear your family members in broad daylight,” the governor’s office said.
Before being signed into law, the mask ban was approved by the California Senate by a two-thirds majority, and the Assembly passed it by a simple majority.
Legal experts are divided on whether the law will stand. The Supreme Court ruled in Arizona v. United States that states cannot regulate federal immigration enforcement. While California’s measure does not mention immigration specifically, it applies broadly to all local and federal law enforcement activity.
UC Berkeley constitutional scholar Erwin Chemerinsky has defended the legislation, arguing federal employees must follow general state laws unless compliance would significantly interfere with their duties.
Acting U.S. Attorney for Southern California Bill Essayli said that the measure is unconstitutional and unenforceable against federal officers.
“The State of California has no jurisdiction over the federal government,” Essayli said in a post on X. “If Newsom wants to regulate our agents, he must go through Congress,” Essayli continued, adding that he directed federal agents to “continue to protect their identities” and that the California mask ban “has no effect on our operations.”
The dispute is expected to head to federal court, where precedent strongly favors the supremacy of federal law over state law.
Starbucks CEO Unveils 900 Job Cuts, Store Closures in Turnaround Push To Win Back Customers
A little more than one year ago, Brian Niccol was lured to Starbucks from Chipotle Mexican Grill with a $100 million pay package. Niccol took over as CEO and has been implementing a turnaround plan aimed at restoring Starbucks’s mojo and convincing the public that $6 for a Grande Caffè Latte is a good deal. On Thursday morning, the next chapter of that turnaround was revealed: a restructuring plan that includes cutting 900 employees and closing certain stores as part of the company’s “Back to Starbucks” strategy.
In an 8-K filing, Starbucks revealed that its Board has approved a restructuring plan under its “Back to Starbucks” strategy, which includes the closure of some coffeehouses that lack a clear path to meeting brand standards or achieving financial performance. Most of these closures are expected to be completed by the end of the year.
Starbucks is also restructuring its corporate structure to focus more directly on coffeehouses and customers. These total restructuring costs will amount to $1 billion, with 90% of the costs tied to North American operations.
Niccol provided additional details on the restructuring in his letter to shareholders.
Here’s a breakdown of that:
Coffeehouse Portfolio Review:
Locations unable to meet brand standards or financial goals will be closed.
Net effect: ~1% decline in company-operated stores in North America in FY2025, leaving ~18,300 U.S. and Canadian locations (operated + licensed).
FY2026: growth expected as new stores open. Over the next 12 months, 1,000+ stores will be “uplifted” with upgraded designs.
Impacted employees will be offered transfers where possible; severance will be provided otherwise.
Non-Retail Role Reductions:
Starbucks will cut ~900 non-retail jobs and close many open positions.
Affected staff will receive severance and benefit extensions.
Non-essential office staff are instructed to work from home during the transition.
Investment Priorities:
More barista hours and staffing in stores.
Elevated coffeehouse designs.
Ongoing innovation and customer service enhancements.
Outlook:
Early results from “uplifted” stores show higher traffic, longer visits, and improved partner engagement.
Leadership stressed the difficulty of these decisions but framed them as necessary for long-term growth and resilience.
“While we’re making good progress, there is much more to do to build a better, stronger and more resilient Starbucks. As we approach the beginning of our new fiscal year, I’m sharing two decisions we’ve made in support of our Back to Starbucks plan. Both are grounded in putting our resources closest to the customer so we can create great coffeehouses, offer world-class customer service and grow the business,” Niccol wrote in the letter.
Full Letter:
Later this week, Starbucks is expected to report its 4Q25 earnings. In July, the company posted its sixth consecutive quarterly sales decline at stores open for at least a year.
Total quarterly revenues have stalled over the last two years.
Shares are down nearly 8% year-to-date and have been trading sideways for the past five years.
Hmmm Starbucks…
UK Starbucks Employee screams at woman for misgendering him, then proceeds to violently assault a man filming the altercation. pic.twitter.com/6ahMsto49T
— Antifa Public Watch official (@UnmaskedAntifa) May 8, 2023
I’m convinced Starbucks recruits their employees from Antifa riots.
US Jets Scrambled To Intercept Russian Warplanes Off Alaska Amid Growing Incidents
Amid ongoing soaring tensions between the West and Russia, the North American Aerospace Defense Command (NORAD) scrambled American fighter jets to identify and intercept four Russian warplanes flying near Alaska.
NORAD indicated in a fresh statement that the incident occurred Wednesday, and involved a pair of Russian Tu-95 long-range strategic bombers and a pair Su-35 fighter jets traversing the Alaskan Air Defense Identification Zone (ADIZ).
The US side sent E-3 early warning and control aircraft, and four F-16s and four KC-135 tanker planes, “to positively identify and intercept” the Russian aircraft – NORAD described.
The ADIZ is considered international airspace that borders US and Canadian sovereign airspace. Such an action by Russian aerial forces has become somewhat routine, but has occurred more frequently over the last couple years, also as war continues to rage in Ukraine.
For example, August saw three similar incidents play out within only a matter of a week. And before that, there were a half-dozen instances since the year’s start where Russian planes entered the ADIZ.
There were dozens of other instances in 2024 and 2023 – each requiring NORAD to send its own jets to shadow, monitor, and intercept the Russian aircraft.
As we detailed before, in September 2024 NORAD released footage of a Russian plane flying “within just a few feet” of US military aircraft near the coast of Alaska, prompting a general to say at the time that the Russian Su-35 plane’s conduct “was unsafe, unprofessional, and endangered all.”
NORAD has previously acknowledged that Russian bomber flights near Alaska occur “regularly”. But recently China has even begun to join some Russian patrols of northern Pacific areas, including areas extending near Alaska.
JETS SCRAMBLED: NORAD detects Russian aircraft in Alaskan Air Defense Identification Zone. pic.twitter.com/ObTsFSX7WZ
The US-Canada command has said “NORAD employs a layered defense network of satellites, ground-based and airborne radars and fighter aircraft to detect and track aircraft and inform appropriate actions.”
President Donald Trump will sign an executive order approving a new TikTok U.S. joint venture on Sept. 25, a White House official told The Epoch Times.
The order will extend China-based ByteDance’s divestment deadline for 120 days, giving U.S. investors and ByteDance time to seek regulatory approvals and close a deal.
The TikTok U.S. joint venture will have a new board with seven seats, six of which will be held by Americans with backgrounds in cybersecurity and national security. The seventh will be held by ByteDance, which will be excluded from security-related decisions.
In accordance with the law requiring ByteDance to divest itself of TikTok, ByteDance will retain a stake of less than 20 percent in the new venture.
The popular social media app has approximately 170 million monthly users, and White House officials anticipate that it will contribute $178 billion to economic development over the next four years.
U.S. cloud company Oracle is among the investors and will serve as the venture’s trusted technology partner, overseeing the app’s source code and security matters.
White House officials have said this means that Oracle will be tasked with taking its copy of the infamous TikTok algorithm, retraining it on U.S. user data, and observing it for any signs of malicious influence.
It is a role similar to the one proposed in TikTok’s “Project Texas” plan, pitched a few years ago, with a key difference being that ByteDance is no longer in charge of code operations and will no longer send U.S. data to China.
Trump had deemed China’s access to TikTok a national security risk in his first administration, ordering an investigation and later issuing an executive order that required ByteDance to sell the app to a U.S. buyer in 2020.
The years-long efforts to secure the app from Chinese influence have seen major developments recently, as U.S. and Chinese trade negotiators met in Madrid on Sept. 15, with a looming deadline of Sept. 17 that would have seen TikTok go dark unless Trump ordered otherwise.
A Chinese export control law covering recommendation algorithms had made selling the app untenable, ByteDance and would-be U.S. investors had said.
On Sept. 19, Trump announced that, following a two-hour call with Chinese Communist Party leader Xi Jinping, approval had apparently been given at the highest level.
This means that ByteDance will now need to secure an export license for the algorithm on the Chinese side. On the U.S. side, the venture will likely need to undergo antitrust reviews, officials have said.
U.S. officials have said that securing the algorithm and having it outside of ByteDance’s control in the new venture was a “tough point of negotiation,” as Chinese negotiators had sought significant trade and technology concessions in return.
“We are not willing to sacrifice national security for a social media app,” U.S. Treasury Secretary Scott Bessent told reporters in Madrid on Sept. 15.
China hawks in Congress have expressed cautious approval, wanting to ensure that the terms of the final deal satisfy the law Congress passed in 2024 to block foreign adversaries from accessing apps with more than 1 million monthly users.
Q2 GDP Revised Sharply Higher To 3.8%, Best Quarter In Two Years
It started off as 2.960%; one month later it was revised higher to 3.290%, and moments ago the Bureau of Economic Analysis reported that Q2 GDP was revised once again, and even higher this time, to a whopping 3.830%, the highest print in nearly two prints, since the 4.70% in Q3 2023, and primarily reflecting an upward revision to consumer spending.
According to the BEA, the increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports.
Compared to the first quarter, the upturn in real GDP in the second quarter primarily reflected a downturn in imports and an acceleration in consumer spending that were partly offset by a downturn in investment. Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 2.9 percent in the second quarter, revised up 1.0 percentage point from the previous estimate.
Here are the details:
Personal consumption contributed 1.68% to the bottom line GDP print of 3.8%, or nearly half. This was revised higher from 1.07% in last month’s revision
Fixed investment was also revised higher, to 0.77% from 0.59%
The change in private inventories was revised lower, subtracting 3.44% from the bottom line print; down from 3.29% previously
Net exports (i.e. exports less imports) was also revised slightly lower, adding 4.83% to the bottom line print, down from 4.95% last month.
Government was flat, subtracting a negligible 0.01% from the GDP number, down from -0.03% previously.
Of the above, the most notable revision was that of personal consumption which surged from 1.6% SAAR to 2.5%, despite clear signals that the average US consumer (middle class, if not so much the top 1%) is hurting.
Before Thursday’s figures, the Federal Reserve Bank of Atlanta’s GDPNow estimate penciled in a 3.3% rate of growth in the July-September period. However, economists are less upbeat about growth in the fourth quarter as weaker employment dims prospects for consumer spending.
From an industry perspective, the increase in real GDP reflected increases of 10.2 percent in real value added for private goods-producing industries and 3.5 percent for private services-producing industries that were partly offset by a decrease of 3.2 percent in real value added for government.
Real gross output increased 1.2 percent in the second quarter, reflecting increases of 0.6 percent for private goods-producing industries and 1.7 percent for private services-producing industries that were partly offset by a decrease of 0.7 percent for government.
The BEA also issued its annual update of the national economic accounts, which covers GDP and related series in the past five years. While it incorporated newer, more complete source data, the agency said it was “unable to purchase” certain statistics related to tax returns for corporations and sole proprietorships.
The annual revisions were relatively minor as real GDP still increased at an average annual pace of 2.4% from 2019 to 2024. They paint a picture of an economy that quickly rebounded from the initial shock of the pandemic and has since transitioned to period of steadier, trend growth with lingering inflation.
Turning to the inflation metrics, the revisions showed the Fed’s preferred inflation metric — the personal consumption expenditures price index, excluding food and energy — rose at faster clip throughout 2024 and was also marked up in the second quarter to 2.6%. Economists expect monthly PCE data, which are due Friday, to show the metric advanced nearly 3% in August from a year ago.
For Q2, the price index for gross domestic purchases increased 2.0% in the second quarter, revised up 0.2% from the previous estimate. The personal consumption expenditures (PCE) price index increased 2.1 percent, revised up 0.1 percentage point. Excluding food and energy prices, the PCE price index increased 2.6 percent, also revised up 0.1 percentage point.
That may limit the extent of Fed interest-rate cuts in the coming months. In lowering borrowing costs last week, policymakers also projected two more reductions this year, though some officials are wary given persistently high inflation.
Real gross domestic income (GDI) increased 3.8 percent in the second quarter, revised down 1.0 percentage point from the previous estimate. The average of real GDP and real GDI increased 3.8 percent, revised down 0.2 percentage point.
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $6.8 billion in the second quarter, a downward revision of $58.7 billion.
Looking ahead, economists expect activity to only pick up somewhat in 2026, partly due to Trump’s tax law and lower interest rates, with most forecasters expecting sub-2% growth for the next few years.
French Ex-President Sarkozy Given 5-Years In Prison For Libya Campaign Financing Scandal
Former French President Nicolas Sarkozy has been sentenced to five years in prison and a €100,000 fine after being found guilty of criminal conspiracy in a high-profile case involving alleged illicit funding from the late Libyan leader Muammar Gaddafi, who was slain by NATO-backed rebels after US-UK-French military intervention in 2011.
The 70-year-old, who served as president from 2007 to 2012 and was a hugely influential figure in right-wing politics has maintained his innocence. “What happened today is extremely serious for the rule of law and for public trust in the justice system,” he said in a statement. “If they absolutely want me to sleep in jail, I will sleep in jail – but with my head held high.”
He was accused during his time as president of accepting millions of euros from Gaddafi to finance his 2007 election campaign. The quid pro quo allegedly involved a commitment help rehabilitate Gaddafi’s image with the West.
Gaddafi had over many decades been in and out of the West’s favor, and in the mid-2000s had been ‘brought in from the cold’ by the Bush administration, in exchange for giving up his aspiring nuclear and WMD program. Yet he still later saw a Washington-led regime change war against him once the so-called Arab Spring kicked off.
Sarkozy was acquitted of other charges, including passive corruption and illegal campaign financing, with Judge Nathalie Gavarino stating that Sarkozy had allowed close aides to reach out to Libyan officials to secure financial support for his campaign. But there wasn’t enough evidence to show Sarkozy actually directly benefited from any such illicit campaign funds.
The former French leader insists he will appeal the whole thing and that his innocence will be established, in what he says is a politically motivated case.
The allegations and case are at the very least mired in intrigue, political scandal, score settling, and curiously came to light only after Gaddafi was overthrown and killed. The accusations emerged after Gaddafi’s son Saif al-Islam publicly accused Sarkozy of accepting campaign funds from Libya.
In 2014, Franco-Lebanese businessman Ziad Takieddine, long a well-known go-between for France and the Middle East, purported to possess written proof that Sarkozy received €50 million from Tripoli, with the payments allegedly persisting even after Sarkozy took office.
Former French President Nicolas Sarkozy vows appeal after being sentenced to five years for accepting illegal campaign financing from Muammar Gaddafi’s regime for his 2007 campaign. #Libya#ليبياpic.twitter.com/Z3CDhLw4dY
This is another historic ‘first’ for France’s presidents and the legal system, after in 2024 he had already received a one-year sentence (but six months were suspended) for exceeding the legal spending limit during his 2012 re-election campaign
Also in 2021 he was found guilty of attempting to bribe a judge in exchange for confidential information regarding an ongoing investigation, after which he was issued a custodial sentence.
