News from February 7, 2025 at 2 AM

U.S. President Donald Trump announced at a White House press conference that the United States will take over the Gaza Strip and relocate approximately 2 million Palestinians to other Middle Eastern countries, a proposal rejected by Arab nations. Trump envisioned Gaza as the 'Riviera of the Middle East,' potentially bringing peace. Israeli Prime Minister Benjamin Netanyahu supported the idea but did not clarify the legal basis. Negotiations on the second phase of a Gaza ceasefire are ongoing between the U.S., Israel, and Arab countries. The Council on American-Islamic Relations condemned Trump's remarks, stating they violate international law.

The Greek island of Santorini has been struck by several earthquakes, prompting authorities to declare a state of emergency. Since Sunday, thousands of earthquakes have been recorded in the region. On Thursday evening, a 4.6 magnitude quake occurred at 20:16 local time, followed by a 4.2 magnitude quake two hours later. Over 11,000 residents have evacuated, leaving the island largely deserted. Experts are uncertain when this period of 'seismic crisis' will end. No injuries or significant damage have been reported so far, but authorities are preparing for a potential larger quake. The state of emergency is set to last until March 3.

UN Secretary-General Antonio Guterres called on the global community, including DR Congo's neighbors and regional organizations like the African Union, to intensify efforts to end the violence in the Democratic Republic of the Congo. The conflict, instigated by the M23 group with support from Rwandan forces, has resulted in thousands of civilian deaths and forced hundreds of thousands to flee. Guterres emphasized that there is no military solution and urged parties to return to peace talks. M23, which had seized Goma, the capital of North Kivu province, announced a humanitarian ceasefire. On February 7, leaders from the East African Community and the Southern African Development Community will meet in Tanzania, followed by an African Union Peace and Security Council summit next week, with the DR Congo crisis topping the agenda.

The United States Agency for International Development (USAID) announced that thousands of its employees will be placed on leave from Friday night, retaining only those in mission-critical functions, core leadership, and specially designated programs. This move is part of President Donald Trump's recent cuts to government-funded programs since returning to office last month. USAID will collaborate with the State Department to arrange and fund return travel for overseas personnel within the month. Affected employees will be notified by 3:00 PM EDT on Thursday. With 10,000 employees worldwide, two-thirds of whom work overseas, concerns are widespread that shutting down USAID could profoundly impact global humanitarian efforts.

The Australian government has banned the use of products by Chinese AI company DeepSeek on all government devices due to privacy and malware risks. Home Affairs Minister Burke stated that intelligence assessments found DeepSeek's technology posed unacceptable risks, and all related products will be removed from February 5th. Previously, Australia banned Huawei from participating in 5G infrastructure. South Korea and the Indian Finance Ministry have also prohibited the use of DeepSeek and other AI tools in official duties. Australian cybersecurity researchers highlighted security risks associated with DeepSeek, but its use on personal devices remains allowed. Italy has banned downloads of DeepSeek from regional Apple App Stores.

On February 5, 2025, Deputy Prime Minister Angela Rayner announced the government's decision to dismantle Grenfell Tower during a meeting with bereaved relatives and survivors. The 24-storey tower in west London caught fire in June 2017, resulting in 72 deaths. The decision follows years of debate over the tower's future, with some wanting it preserved as a permanent reminder of the tragedy and others advocating for a new memorial. A formal announcement is expected on Friday. Kimia Zabihyan, representing Grenfell Next of Kin, said Rayner was clear that the decision was based on engineers' recommendations. While Zabihyan agreed with the decision, many expressed dissatisfaction. A spokesperson for Grenfell United criticized the decision, stating that the voices of the bereaved had been ignored. The fire, caused by a faulty fridge, spread rapidly due to flammable cladding. A public inquiry concluded that the disaster resulted from multiple government failures and the construction industry's neglect of flammable material risks.

In response to US President Trump's postponement of tariffs on Mexico, Mexico began deploying 10,000 National Guard troops to its northern border on February 4 to enhance security. Mexican President Obrador announced that the troops would be stationed in states like Sonora, primarily to address drug trafficking and illegal immigration. Hundreds of guardsmen have departed from Merida to the US-Mexico border, with new deployments in Tijuana and Ciudad Juarez. Obrador emphasized that the troop increase would not weaken security in other parts of the country. The US and Mexico will conduct joint operations in Ciudad Juarez to search for tunnels used by immigrants. Last month, a secret tunnel from Ciudad Juarez to El Paso, Texas, was discovered by both countries.

The Bank of England has reduced its growth forecast for 2025 from 1.5% to 0.75% and cut interest rates to the lowest level in over 18 months, at 4.5%. Governor Andrew Bailey stated that rates will continue to fall but must be approached cautiously due to uncertainty and rising inflation expectations. Despite the downgrade for this year, forecasts for 2026 and 2027 have been raised to 1.5%. Inflation is expected to surge later this year, reaching 3.7%, due to higher energy and water bills. Chancellor Rachel Reeves announced measures to boost the economy last week, but her decision to increase employers' National Insurance contributions has faced criticism.

In the early hours of February 6th, a shooting occurred near the Clementine Metro Station in Brussels, Belgium, injuring one person. This was the second shooting in the vicinity of the metro station within 24 hours. The Brussels Prosecutor stated that three shootings took place in Brussels within 24 hours, two near the Clementine Metro Station and one in the Saint-Josse-ten-Noode district. The investigation is ongoing to determine if the three incidents are related.

Despite a ceasefire announced by the M23 rebels on February 4, hostilities continued. On February 6, M23 rebels, supported by the Rwandan army, seized the town of Ihusi in the east of the Democratic Republic of the Congo, just 11 kilometers from Bukavu, the administrative center of South Kivu province. They also captured the city of Nyabibwe in South Kivu on Wednesday. Ihusi is close to Kavumu Airport, a major transit hub for humanitarian and other cargoes, which is guarded by the United Nations Organization Stabilization Mission in the Democratic Republic of the Congo (MONUSCO).

The Australian Parliament passed a series of amendments to hate crime laws on Thursday, imposing mandatory jail terms of one to six years for displaying hate symbols or performing a Nazi salute. This follows a wave of high-profile antisemitic attacks in the country. Described as the toughest hate crime laws in Australia's history, the amendments have sparked criticism for the Labor Party's deviation from its policy against mandatory sentences. Recent incidents include the discovery of an explosive-laden caravan with an antisemitic note in Sydney, a childcare center near a Jewish school set on fire, and a synagogue in Melbourne being set alight. Former Labor senator Kim Carr criticized the move as a breach of the party's platform, while opposition parties accused Labor of dragging its feet on the amendments.

Traders are preparing for the release of January's jobs report on Friday, which could add more volatility to an already jittery market. Economists polled by Dow Jones expect the Bureau of Labor Statistics to report a gain of 169,000 jobs for last month, with the unemployment rate remaining steady at 4.1%. The latest employment data comes as investors grapple with global trade concerns, which could delay rate cuts from the Federal Reserve if tariffs on imports from countries like China, Mexico, and Canada lead to higher inflation. Against this backdrop, traders at JPMorgan outlined how they expect the market to react to the report based on the number of jobs added. They presented five scenarios: More than 230,000 jobs added (5% chance) could see the S&P 500 fall between 0.5% and 1%; 190,000 to 230,000 jobs added (25% chance) could lead to a 0.25% to 1.25% gain in the S&P 500; 150,000 to 190,000 jobs added (40% chance) could result in a 0.25% to 0.75% gain; 110,000 to 150,000 jobs added (25% chance) could pressure stocks, sending the S&P 500 down 0.5% to 1.25%; and less than 110,000 jobs added (5% chance) could cause the S&P 500 to lose between 1.25% and 1.5%.