The Bulletin

• Trump pauses federal grants: President Donald Trump has ordered all federal agencies to stop issuing federal grants and loans, according to an internal memorandum sent on Monday. Find out who could be impacted.

• DeepSeek shocks U.S. giants: On Monday, a small Chinese artificial intelligence startup called DeepSeek singlehandedly wiped billions off the valuations of U.S. tech giants like Nvidia, Broadcom and Microsoft. Get more information about it.

• Trump's message to Colombia goes viral: Donald Trump garnered attention on Sunday with a Truth Social post that appeared to be a message to Colombia featuring the acronym "FAFO". Here's what that means.

• China ready to take back illegal immigrants: China said it is ready to receive Chinese nationals entering the United States unlawfully, amid the ongoing massive crackdown on illegal immigration by the Trump administration. Learn more.

• Migrant small business owner's message: Dreamer who runs two small businesses in New York City told Newsweek that she and her staff are living under a dark cloud, amid what one immigrant advocate called the "hysteria of mass deportations" under Trump. Read more.

• In the ongoing war in Ukraine, North Korean troops have pulled back from at least one section of the frontline in the Kursk region of Russia, according to members of Ukraine's military.

The rundown: President Donald Trump has said that the U.S. Military "just entered the Great State of California" using emergency powers and "TURNED ON THE WATER" from the Pacific Northwest following a wave of devastating wildfires around Los Angeles. However, this was denied by state authorities. Find out what's really happening.

Why it matters: Trump has been fiercely critical of California Governor Gavin Newsom's efforts to contain the Los Angeles wildfires over the past couple of weeks, dubbing him "Newscum" on social media. The president has repeatedly attributed the disaster to what he says are water shortages caused by California state policies, though this was denied by state officials who claimed a water-pumping station that was down for maintenance was reopened. The president made his announcement late on Monday via his Truth Social website. He said: "The days of putting a Fake Environmental argument, over the PEOPLE, are OVER. Enjoy the water, California!!!"

Read more in-depth coverage:
Trump Pressures California to Reroute Water to Farms, Cities

TL/DR: On Friday Trump signed an executive order instructing federal agencies to "maximize" water delivery to California and "override" state policies where they deem it necessary.

What happens now? It remains to be seen how the Los Angeles wildfires, and fierce criticism of state authorities from President Trump, will impact politics in the Golden State. Both Los Angeles Mayor Bass and Governor Newsom will be required to fight election battles in 2026 if they wish to retain their current positions.

Deeper reading Donald Trump Says He's Sent Military Into California

The rundown: OpenAI rival DeepSeek has sent a sobering message to Washington and Silicon Valley, showcasing China's erosion of the U.S.'s lead in a critical tech battleground. Here's what we know.

Why it matters: DeepSeek, a little-known company in Hangzhou, China, said its DeepSeek-R1 AI model, which burst onto the scene last week, was trained in two months for less than $6 million and using fewer chips. The app rode the buzz, becoming the most downloaded free app in China—and on the Apple Store in the U.S. Despite U.S. restrictions on advanced semiconductor exports to China, DeepSeek's model is reportedly rivaling—and even outperforming American counterparts like OpenAI's GPT-4 and Anthropic's Claude 3.5 in certain areas. Chipmaker Nvidia's shares plunged 17 percent on Monday, wiping out $589 billion in market value in the largest one-day market cap loss in history.

Read more in-depth coverage:
What Is DeepSeek AI? All About Chinese ChatGPT Rival

TL/DR: Venture capitalist Marc Andreessen called DeepSeek-R1 "AI's Sputnik moment" in a post on X, formerly Twitter, a reference to the Soviet satellite launched in 1957 that kicked off Moscow's Space Race with the U.S.

What happens now? Trump on Monday called the DeepSeek app a "wake up call" and called on U.S. industries to be "laser-focused on competing to win." The U.S. is set to pour an enormous amount of resources as it seeks to regain the initiative. Last week, the president announced the Stargate Project, dubbing it the "largest AI infrastucture in history."

Deeper reading US Blows AI Lead in Race With China

The rundown: Serbian Prime Minister Miloš Vučević has announced his resignation, according to the news agency Tanjug. Here's why.

Why it matters: The decision was reportedly prompted by widespread student protests, which have fueled mounting pressure on the government. On Monday, university students launched a 24-hour blockade of a major traffic intersection in the capital, Belgrade. It marked a significant escalation in their demands for accountability for a canopy collapse in the city of Novi Sad last November, which left 15 people dead. The disaster occurred when a large concrete canopy at the Novi Sad train station, part of a broader renovation effort linked to Chinese state-backed infrastructure projects, collapsed.

Read more in-depth coverage:
Serbia's Vučić Says He Won't Flee Like Assad

TL/DR: The protest, which has attracted thousands of students, farmers on tractors, and concerned citizens, is the latest chapter in a wave of demonstrations against the government's handling of the disaster.

What happens now? Vucevic’s resignation is likely to lead to an early parliamentary election. The resignation must be confirmed by Serbia’s parliament, which has 30 days to choose a new government or call a snap election.

Deeper reading Serbia's PM Resigns Following Bus Shelter Tragedy Protests, Reports

The rundown: The Russian economy is facing the prospect of a huge rise in corporate bankruptcies as firms are driven to the edge by a record key interest rate. Find out more.

Why it matters: The Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF), which is close to the Russian government, said that one in five manufacturing enterprises must pay two-thirds of pretax profits to service debt. This shows that the key interest rate of 21 percent imposed by Russia's Central Bank to cool the economy is taking its toll. The report is by a center closely linked to the government and gives a stark view of how Russia's sanctions-hit economy is being buffeted by the costs of the war President Vladimir Putin started in Ukraine.

Read more in-depth coverage:
Putin Faces 'Really Big Problems' in Russian Economy: Report

TL/DR: Vasily Astrov, senior economist at the Vienna Institute for International Economic Studies, told Newsweek that there was "realistic danger" Russia faces a big rise in bankruptcies.

What happens now? The CMASF report may have described "impressive" GDP growth of up to 4 percent, but it said this number hides how real production activity has almost stopped growing. There will be concern over whether companies can weather continued economic turbulence as the war rages on.

Deeper reading Russian Economy Facing a Tidal Wave of Bankruptcies

The rundown: Car insurance rates have skyrocketed across the country in the past few years, driven by more expensive repairs and increasingly risky behavior from drivers. Find out what the numbers reveal.

Why it matters: Five states are leading the way, with premiums in Minnesota and Maryland increasing by more than 50 percent in 2024, according to a new report by digital insurance agent Insurify. According to the December 2024 Consumer Price Index (CPI) from the U.S. Bureau of Labor Statistics, the cost of car insurance rose by 11.3 percent over the previous 12 months—the second highest increase after that of the price of eggs. In the same time frame, the CPI rose 2.9 percent. With nearly 284 million vehicles registered in the U.S. and 91.7 percent of households owning at least one, these rising premiums are hitting drivers hard.

Read more in-depth coverage:
America's Car Insurance Crisis Is Getting Worse

TL/DR: The cost of living, which climbed during the post-pandemic years of former President Joe Biden's administration, proved to be a crucial issue for American voters heading to the polls on November 5.

What happens now? A majority of experts expect a slowdown in rate increases this year, though that doesn't mean premiums will stop rising. Insurify's experts expect car insurance rate increases to finally slow to 5 percent in 2025, offering a glimpse of hope to U.S. drivers.

Deeper reading Car Insurance Soars for Millions Across 5 States