Category: Associated Press

  • The White House starts demolishing part of the East Wing to build Trump’s ballroom

    The White House starts demolishing part of the East Wing to build Trump’s ballroom

    WASHINGTON — The White House on Monday started tearing down part of the East Wing, the traditional base of operations for the first lady, to build President Donald Trump’s $250 million ballroom despite lacking approval for construction from the federal agency that oversees such projects.

    Dramatic photos of the demolition work showed construction equipment tearing into the East Wing façade and windows and other building parts in tatters on the ground. Some reporters watched from a park near the Treasury Department, which is next to the East Wing.

    Trump announced the start of construction in a social media post and referenced the work while hosting 2025 college baseball champs Louisiana State University and LSU-Shreveport in the East Room. He noted the work was happening “right behind us.”

    “We have a lot of construction going on, which you might hear periodically,” he said, adding, “It just started today.”

    The White House has moved ahead with the massive construction project despite not yet having sign-off from the National Capital Planning Commission, which approves construction work and major renovations to government buildings in the Washington area.

    Its chairman, Will Scharf, who is also the White House staff secretary and one of Trump’s top aides, said at the commission’s September meeting that agency does not have jurisdiction over demolition or site preparation work for buildings on federal property.

    “What we deal with is essentially construction, vertical build,” Scharf said last month.

    It was unclear whether the White House had submitted the ballroom plans for the agency’s review and approval. The White House did not respond to a request for comment and the commission’s offices are closed because of the government shutdown.

    The Republican president had said in July when the project was announced that the ballroom would not interfere with the mansion itself.

    “It’ll be near it but not touching it and pays total respect to the existing building, which I’m the biggest fan of,” he said of the White House.

    The East Wing houses several offices, including those of the first lady. It was built in 1902 and and has been renovated over the years, with a second story added in 1942, according to the White House.

    Karoline Leavitt, the White House press secretary, said those East Wing offices will be temporarily relocated during construction and that wing of the building will be modernized and renovated.

    “Nothing will be torn down,” Leavitt said when she announced the project in July.

    Trump insists that presidents have desired such a ballroom for 150 years and that he’s adding the massive 90,000-square-foot, glass-walled space because the East Room, which is the largest room in the White House with an approximately 200-person capacity, is too small. He also has said he does not like the idea of hosting kings, queens, presidents and prime ministers in pavilions on the South Lawn.

    Trump said in the social media announcement that the project would be completed “with zero cost to the American Taxpayer! The White House Ballroom is being privately funded by many generous Patriots, Great American Companies, and, yours truly.”

    The ballroom will be the biggest structural change to the Executive Mansion since the addition in 1948 of the Truman Balcony overlooking the South Lawn, even dwarfing the residence itself.

    At a dinner he hosted last week for some of the wealthy business executives who are donating money toward the $250 million construction cost, Trump said the project had grown in size and now will accommodate 999 people. The capacity was 650 seated people at the July announcement.

    The White House has said it will disclose information on who has contributed money to build the ballroom, but has yet to do so.

    Trump also said at last week’s event that the head of Carrier Global Corp., a leading manufacturer of heating, ventilation and air conditioning systems, had offered to donate the air conditioning system for the ballroom.

    Carrier confirmed to The Associated Press on Monday that it had done so. A cost estimate was not immediately available.

    “Carrier is honored to provide the new iconic ballroom at the White House with a world-class, energy-efficient HVAC system, bringing comfort to distinguished guests and dignitaries in this historic setting for years to come,” the company said in an emailed statement.

    The clearing of trees on the south grounds and other site preparation work for the construction started in September. Plans call for the ballroom to be ready before Trump’s term ends in January 2029.

  • Massive Amazon cloud outage has been resolved after disrupting internet use worldwide

    Massive Amazon cloud outage has been resolved after disrupting internet use worldwide

    LONDON — Amazon says a massive outage of its cloud computing service has been resolved as of Monday evening, after a problem disrupted internet use around the world, taking down a broad range of online services, including social media, gaming, food delivery, streaming and financial platforms.

    The all-day disruption and the ensuing exasperation it caused served as the latest reminder that 21st century society is increasingly dependent on just a handful of companies for much of its internet technology, which seems to work reliably until it suddenly breaks down.

    About three hours after the outage began early Monday morning, Amazon Web Services said it was starting to recover, but it wasn’t until 6 p.m. Eastern that “services returned to normal operations,” Amazon said on its AWS health website, where it tracks outages.

    AWS provides behind-the-scenes cloud computing infrastructure to some of the world’s biggest organizations. Its customers include government departments, universities and businesses, including The Associated Press.

    Cybersecurity expert Mike Chapple said “a slow and bumpy recovery process” is “entirely normal.”

    As engineers roll out fixes across the cloud computing infrastructure, the process could trigger smaller disruptions, he said.

    “It’s similar to what happens after a large-scale power outage: While a city’s power is coming back online, neighborhoods may see intermittent glitches as crews finish the repairs,” said Chapple, an information technology professor at the University of Notre Dame’s Mendoza College of Business.

    Amazon blames domain name system

    Amazon pinned the outage on issues related to its domain name system that converts web addresses into IP addresses, which are numeric designations that identify locations on the internet. Those addresses allow websites and apps to load on internet-connected devices.

    DownDetector, a website that tracks online outages, said in a Facebook post that it received over 11 million user reports of problems at more than 2,500 companies. Users reported trouble with the social media site Snapchat, the Roblox and Fortnite video games, the online broker Robinhood and the McDonald’s app, as well as Netflix, Disney+ and many other services.

    The cryptocurrency exchange Coinbase and the Signal chat app both said on X that they were experiencing trouble related to the outage.

    Amazon’s own services were also affected. Users of the company’s Ring doorbell cameras and Alexa-powered smart speakers reported that they were not working, while others said they were unable to access the Amazon website or download books to their Kindle.

    Many college and K-12 students were unable to submit or access their homework or course materials Monday because the AWS outage knocked out Canvas, a widely used educational platform.

    “I currently can’t grade any online assignments, and my students can’t access their online materials” because of the outage’s effect on learning-management systems, said Damien P. Williams, a professor of philosophy and data science at the University of North Carolina at Charlotte.

    The exact number of schools impacted was not immediately known, but Canvas says on its website it is used by 50% of college and university students in North America, including all Ivy League schools in the U.S.

    At the University of California, Riverside, students couldn’t submit assignments, take quizzes or access course materials, and online instruction was limited, the campus said.

    Ohio State University informed its 70,000 students at all six campuses by email Monday morning that online course materials might be inaccessible due to the outage and that “students should connect with their instructors for any alternative plans.” As of 7:10 p.m. Eastern, access was restored, the university told students.

    Record of past outages

    This is not the first time issues with Amazon cloud services have caused widespread disruptions.

    Many popular internet services were affected by a brief outage in 2023. AWS’s longest outage in recent history occurred in late 2021, when a wide range of companies — from airlines and auto dealerships to payment apps and video streaming services — were affected for more than five hours. Outages also happened in 2020 and 2017.

    The first signs of trouble emerged at around 3:11 a.m. Eastern time, when AWS reported on its “health dashboard” that it was “investigating increased error rates and latencies for multiple AWS services in the US-EAST-1 Region.” Later, the company reported that there were “significant error rates” and that engineers were “actively working” on the problem.

    Around 6 a.m. Eastern time, the company reported seeing recovery across most of the affected services and said it was seeking a “full resolution.” As of midday, AWS was still working to resolve the trouble.

    Sixty-four internal AWS services were affected, the company said.

    Just a few companies provide most internet infrastructure

    Because much of the world now relies on three or four companies to provide the underlying infrastructure of the internet, “when there’s an issue like this, it can be really impactful” across many online services, said Patrick Burgess, a cybersecurity expert at U.K.-based BCS, The Chartered Institute for IT.

    “The world now runs on the cloud,” Burgess said.

    And because so much of the online world’s plumbing is underpinned by so few companies, when something goes wrong, “it’s very difficult for users to pinpoint what is happening because we don’t see Amazon, we just see Snapchat or Roblox,” Burgess said.

    “The good news is that this kind of issue is usually relatively fast” to resolve, and there’s no indication that it was caused by a cyberattack, Burgess said.

    “This looks like a good old-fashioned technology issue. Something’s gone wrong, and it will be fixed by Amazon,” he said.

    There are “well-established processes” to deal with outages at AWS, as well as rivals Google and Microsoft, Burgess said, adding that such outages are usually over in “hours rather than days.”

  • Trump says he’s doubtful Ukraine can win the war with Russia as he prepares for Putin meeting

    Trump says he’s doubtful Ukraine can win the war with Russia as he prepares for Putin meeting

    KYIV, Ukraine — President Donald Trump said Monday that while he thinks it is possible that Ukraine can defeat Russia, he’s now doubtful it will happen.

    The comments from Trump added a fresh layer of skepticism toward Kyiv as he plans to meet again in the coming weeks with Russian President Vladimir Putin for face-to-face talks in Budapest, Hungary, on ending the war.

    “They could still win it. I don’t think they will, but they could still win it,” Trump told reporters on Monday at the start of a White House meeting with Australian Prime Minister Anthony Albanese.

    Trump last month reversed his long-held position that Ukraine would have to concede land and could win back all the territory it has lost to Russia.

    But after a lengthy call with Putin last week followed by a meeting with Ukrainian President Volodymyr Zelenskyy, Trump made another reversal and called on Kyiv and Moscow to “stop where they are” and end their brutal war.

    Asked on Monday about his whiplashing opinion on Kyiv’s position, Trump offered the dour assessment about Ukraine’s chances. He added, “I never said they would win it. I said they could. Anything can happen. You know war is a very strange thing.”

    Earlier Monday, Zelenskyy said that during the White House meeting Trump informed him that Putin’s maximalist demand — that Ukraine cede the entirety of its eastern Donetsk and Luhansk regions — was unchanged.

    Still, Zelenskyy described the meeting as “positive,” even though Trump also rebuffed his request for long-range Tomahawk cruise missiles.

    In public comments in the weeks leading up to his meeting with Zelenskyy, Trump had appeared to warm to the possibility of sending the Tomahawks, which would allow Ukrainian forces to strike deeper into Russian territory.

    But the U.S. leader’s tone changed after his latest call with Putin and he made clear that he was reluctant to send Ukraine the missile system, at least for the time-being.

    “In my opinion, he does not want an escalation with the Russians until he meets with them,” Zelenskyy told reporters on Sunday. His comments were embargoed until Monday morning.

    Zelenskyy also expressed skepticism about Putin’s proposal to swap some territory it holds in the Kherson and Zaporizhzhia regions if Ukraine surrenders Donetsk and Luhansk, saying the proposal was unclear. The Donetsk and Luhansk regions make up the Donbas.

    Ukraine’s leader said Trump ultimately supported a freeze along the current front line.

    “We share President Trump’s positive outlook if it leads to the end of the war,” Zelenskyy said, citing “many rounds of discussion over more than two hours with him and his team.”

    Zelenskyy was diplomatic about his meeting with Trump despite reports that he faced pressure to accept Putin’s demands. The meeting followed the disastrous Oval Office spat on Feb. 28 when the Ukrainian president was scolded on live television for not being grateful for U.S. support.

    Zelenskyy said he hopes that Trump’s meeting in the coming weeks with Putin in Hungary — which does not support Ukraine — will pave the way for a peace deal.

    Zelenskyy said he has not been invited to attend but would consider it if the format for talks were fair to Kyiv.

    He also took a shot at Hungarian Prime Minister Viktor Orban, saying he does not believe that a prime minister “who blocks Ukraine everywhere can do anything positive for Ukrainians or even provide a balanced contribution.”

    Zelenskyy said he thinks that all parties have “moved closer” to a possible end to the war.

    “That doesn’t mean it will definitely end, but President Trump has achieved a lot in the Middle East, and riding that wave he wants to end Russia’s war against Ukraine,” he added.

    Ukraine is hoping to purchase 25 Patriot air defense systems from U.S. firms using frozen Russian assets and assistance from partners, but Zelenskyy said procuring them would require time because of long production waits. He said he spoke to Trump about help procuring them more quickly, potentially from European partners.

    Zelenskyy said the United States is interested in bilateral gas projects with Ukraine, including the construction of an LNG terminal in the southern port city of Odesa. Other projects of interest include those related to nuclear energy and oil.

  • Regional banks’ bad loans spark concerns on Wall Street

    Regional banks’ bad loans spark concerns on Wall Street

    NEW YORK — Wall Street is concerned about the health of the nation’s regional banks, after a few of them wrote off bad loans to commercial customers in the last two weeks and caused investors to wonder if there might be more bad news to come.

    Zions Bank, Western Alliance Bank, and the investment bank Jefferies surprised investors by disclosing various bad investments on their books, sending their stocks falling sharply this week. JPMorgan Chase CEO Jamie Dimon added to the unease when he warned there might be more problems to come for banks with potentially bad loans.

    “When you see one cockroach, there are probably more,” Dimon told investors and reporters on Tuesday, when JPMorgan reported its results.

    The KBW Bank Index, a basket of banks tracked by investors, is down 7% this month.

    There were other signs of distress. Data from the Federal Reserve shows that banks tapped the central bank’s overnight “repo” facilities for the second night in a row, an action banks have not needed to take since the COVID-19 pandemic. This facility allows banks to convert highly liquid securities like mortgage bonds and treasuries into cash to help fund their short-term cash shortfalls.

    Zions Bancorp shares sank Thursday after the bank wrote off $50 million in commercial and industrial loans, while Western Alliance fell after the bank alleged it had been defrauded by an entity known as Cantor Group V LLC. This came on top of news from Jefferies, which told investors it was might experience millions of dollars in losses from its business with bankrupt auto parts company First Brands.

    All three stocks recovered a bit Friday. Jefferies’ CEO told investors that the company believes it was defrauded by First Brands and that there were no broader concerns in the lending market.

    The last banking flare-up, in 2023, also involved midsize and regional banks that were overly exposed to low-interest loans and commercial real estate. The crisis caused Silicon Valley Bank to fail, followed by Signature Bank, and led to the eventual sale of First Republic Bank to JPMorgan Chase in a fire sale. Other banks like Zions and Western Alliance ended up seeing their stocks plummet during that time period.

    While banks do fail or get bought at fire sale prices, all bank deposits are insured by the Federal Deposit Insurance Corporation, up to $250,000 per account, in case of a bank failure. In the nearly 100 years since the FDIC was created in 1933, not one depositor has lost their insured funds.

    Still, even the larger banks aren’t immune in this latest round of trouble. Several Wall Street banks disclosed losses this week in the bankruptcy of Tricolor, a subprime auto dealership company that collapsed last month. Fifth Third Bank, a larger regional bank, recorded a $178 million loss from Tricolor’s bankruptcy.

    That said, the big banks believe that any losses will be manageable and do not reflect the broader economy.

    “There is no deterioration, we’re very confident with our credit portfolio,” Deutsche Bank CEO Christian Sewing said, in an interview on Bloomberg Television on Friday.

    While the big Wall Street banks get most of the media and investor attention, regional banks are a major part of the economy, lending to small- to medium-sized businesses and acting as major lenders for commercial real estate developers. There are more than 120 banks with between $10 billion and $200 billion in assets, according to the FDIC.

    While big, these banks can run into trouble because their businesses are not as diverse as the Wall Street money center banks. They’re often more exposed to real estate and industrial loans, and don’t have significant businesses in credit cards and payment processing that can be revenue generators when lending goes south.