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Morgan Stanley to Increase Sale of Loans Tied to Musk’s X Amid Strong Demand

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Morgan Stanley, leading a group of banks, is set to increase the sale of loans linked to Elon Musk’s social media platform X, following stronger-than-expected demand from investors, according to Bloomberg News on Tuesday. Initially, the banks had planned to sell around $3 billion in loans, but the revised target now stands at up to $5.5 billion, reflecting investor interest that exceeded expectations.

In November, reports indicated that Musk’s rising political influence and connections to former President Donald Trump played a role in improving prospects for the platform, which helped banks manage the debt sale without incurring heavy losses. Morgan Stanley, along with other financial institutions like Bank of America and Barclays, provided Musk with loans in 2022 to support his $44 billion acquisition of X, formerly known as Twitter.

Typically, banks sell such loans to investors shortly after a deal is finalized, but the process has been more challenging in the case of X. Despite this, the latest demand suggests a more favorable outcome for the banks involved.

Ontario Pauses Retaliatory Measures, Including Starlink Contract, After U.S. Tariffs Delay

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Ontario has temporarily halted several planned retaliatory actions against the United States, including the cancellation of a C$100 million ($68.12 million) contract with Elon Musk’s Starlink. Premier Doug Ford announced the decision following U.S. President Donald Trump’s move to delay the imposition of tariffs on Canadian imports by 30 days.

Ford had previously threatened to sever the Starlink deal, which would have seen Starlink provide high-speed internet to 15,000 remote homes and businesses in Ontario. The Premier also planned to bar U.S. companies from provincial contracts and remove American products from the shelves of Ontario’s liquor board.

“We have some good news today. We have temporarily averted tariffs that would have severely damaged our economy, giving time for more negotiation and time for cooler heads to prevail,” Ford posted on X, referring to the tariff reprieve.

Ontario, the most populous and industrially significant province in Canada, had prepared the retaliatory measures after Trump proposed a 25% tariff on most Canadian imports, excluding oil. The proposed tariffs sparked concerns about a potential recession if the measures remained in place for long.

Prime Minister Justin Trudeau announced Canada’s response on Saturday, which included imposing 25% tariffs on C$155 billion worth of U.S. goods. While Ford acknowledged that the ongoing trade tensions could delay or freeze various projects, he emphasized the temporary nature of the reprieve.

 

Musk Leads Efforts to Shut Down USAID, Part of Broader U.S. Government Downsizing

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Elon Musk, billionaire CEO of Tesla and SpaceX, shared an update on his role in U.S. President Donald Trump’s efforts to reduce the size of the federal government, revealing that work is underway to shut down the U.S. Agency for International Development (USAID). Musk, who leads a federal cost-cutting panel called the Department of Government Efficiency (DOGE), stated that USAID is “beyond repair” and that Trump agrees the agency should be dissolved. This announcement was made during a social media conversation on Musk’s platform, X, which he owns.

Musk’s comments came alongside former Republican presidential candidate Vivek Ramaswamy and Senators Joni Ernst and Mike Lee. In a related move, most USAID staff were told to work remotely, as per an email reviewed by Reuters. The agency has also experienced a shake-up with the removal of two top security officials after they attempted to block DOGE representatives from accessing restricted areas of the agency’s headquarters.

The U.S. has historically been the largest global donor, with USAID contributing significantly to humanitarian efforts such as health programs, clean water access, and anti-corruption work. In fiscal year 2023, the U.S. disbursed $72 billion in foreign aid. However, Trump’s “America First” policy has led to a global freeze on most U.S. foreign aid, impacting critical programs such as field hospitals and disease treatment in developing countries.

During the conversation, Musk also discussed broader efforts to cut the U.S. budget, suggesting that the administration could reduce the deficit by $1 trillion. He claimed that fraudulent foreign operations were siphoning off large sums from the U.S. but did not provide supporting evidence for his statement. This estimate and Musk’s involvement in controlling key government systems have raised concerns, particularly regarding his access to sensitive U.S. Treasury data.

Democrats have questioned the scope of Musk’s influence, with Senator Peter Welch calling it “a gross abuse of power” and pointing out that Musk’s access to taxpayer information could pose serious risks. Meanwhile, Trump praised Musk for his cost-cutting efforts, though acknowledged that not all of Musk’s approaches would be universally agreed upon.