Civilian and commercial aircraft flying off Australia’s east coast have been diverted due to Chinese naval vessels performing live-fire drills. The Chinese communist regime describes the drills as routine training exercises compliant with international law. However, conducting such military drills so close to Australia is exceptionally rare and represents a potential escalation against the United States and its allies’ maritime dominance in the Pacific Ocean.
Australia’s defense department has been tracking three Chinese naval vessels, including the frigate Hengyang, cruiser Zunyi, and replenishment vessel Weishanhu, following their recent sightings. Leftist Prime Minister Anthony Albanese claims that the activities are in accordance with international law and pose no immediate threat to Australian or New Zealand assets.
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Currently, the three Chinese vessels are approximately 340 nautical miles east of the coast of New South Wales. However, at one point, they were within 150 nautical miles of Syndey—suggesting the drills are intended as a form of intimidation or provocation. In response to inquiries about the drills, China’s foreign ministry emphasized that the exercises would be conducted safely and professionally, adhering to global legal standards.
Meanwhile, Australian Foreign Minister Penny Wong expressed concerns and indicated plans to address the issue with Chinese officials. Speaking from a G20 meeting in Johannesburg, South Africa, she reiterated Australia’s intention to engage in discussions regarding the exercises. In the wake of the announcement, Airservices Australia, responsible for air traffic management, issued a caution for commercial aircraft to adjust their flight paths to avoid the affected area. The agency stated that it is collaborating to provide guidance to air operators and pilots.
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❓ What Happened: Newly released bodycam footage shows a 2022 Tennessee traffic stop involving the recently deported Salvadoran illegal alien Kilmar Abrego Garcia, an alleged member of MS-13, where state highway patrol officers interrogated him over the large sum of money he had on his person, an invalid driver’s license, and the presence of eight other men crammed into his vehicle. The Trump administration cites the footage as additional evidence justifying its decision to remove Abrego Garcia from the United States.
👥 Who’s Involved: Kilmar Abrego Garcia, Tennessee Highway Patrol officers, the Trump White House, and U.S. Immigration and Customs Enforcement (ICE).
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📍 Where & When: The traffic stop occurred in Tennessee on November 30, 2022, with the body camera footage being released late on May 1, 2025.
💬 Key Quote: “He’s hauling these people for money,” a state trooper is heard saying in the video.
⚠️ Impact: Abrego Garcia was deported to El Salvador in March, although a federal immigration judge had previously issued a ruling preventing him from being returned to his country of origin, specifically. Following the deportation, the Supreme Court ruled that the Trump administration should work to facilitate his return to the U.S., despite his alleged gang ties.
IN FULL:
Footage from a Tennessee traffic stop in 2022, released publicly this past Thursday, is being cited by the Trump administration as a basis for deporting Kilmar Abrego Garcia. State troopers pulled Abrego Garcia over for speeding on November 30, 2022, and upon inspection, found eight additional passengers in a modified SUV with an unusual four-row seating arrangement.
During the stop, officers questioned Garcia about his possession of $1,400 in cash and an invalid Maryland driver’s license. A trooper remarked on the unusual seating arrangement and asked Abrego Garcia about the alterations to the vehicle. “How many rows have you got in here? Four seats? Four rows of seats?” a state trooper can be heard asking the Salvadoran national and accused member of the MS-13. The law enforcement officer continued: “Did y’all put an extra one in? Huh? Did y’all put another one in, no? They come like this? I’ve never seen one with that many seats in it.”
After additional questioning, another Tennessee state trooper can be heard telling his colleagues: “He’s hauling these people for money.”
Following the traffic stop and questioning, the Tennessee state troopers entered Abrego Garcia’s name into the National Crime Information Center (NCIC) index and saw he was flagged as potentially being a gang member. Abrego Garcia said the SUV belonged to his “boss,” Jose Ramon Hernandez Reyes, another Salvadoran illegal who had been convicted of human trafficking in 2020.
The state troopers contacted ICE to notify the immigration enforcement agency of their encounter with Abrego Garcia. However, sources close to Tennessee state law enforcement state that ICE never arrived, allowing the alleged gang member to slip away.
The National Pulse previously reported that Abrego Garcia was the subject of a 2021 protective order filed in Maryland by his wife, Jennifer Vasquez, due to multiple alleged incidents of domestic violence. Despite the preponderance of evidence indicating that the Salvadoran illegal immigrant is affiliated with the violent MS-13 gang and has previously engaged in other acts of criminality, Congressional Democrats have tried to use Abrego Garcia’s removal from the U.S. as a platform to criticize President Trump’s deportation efforts, even traveling to El Salvador to visit him.
WATCH:
BREAKING: Fox News obtained police bodycam footage from the 2022 traffic stop of Kilmar Abrego Garcia who was suspected of human trafficking.
“He’s getting paid to haul these people.”
Democrats are dying on the hill of defending an MS-13 foreign terrorist and alleged human… pic.twitter.com/q6Fnv1X59A
❓What Happened: President Donald J. Trump signed an Executive Order late Thursday directing the Corporation for Public Broadcasting (CPB) to halt both direct and indirect federal funding for public broadcasters NPR and PBS.
👥 Who’s Involved: President Donald J. Trump, the Corporation for Public Broadcasting (CPB), National Public Radio (NPR), Public Broadcasting Service (PBS).
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📍 Where & When: The Executive Order was signed by President Trump late on Thursday, May 1.
💬 Key Quote: The Trump White House contends NPR and PBS are “entities that receive tens of millions of dollars in taxpayer funds each year to spread radical, woke propaganda disguised as ‘news.'”
⚠️ Impact: The action eliminates federal financial support for NPR and PBS. Currently, direct federal funding accounts for about one percent of NPR’s budget and 15 percent of PBS’s, plus further funding by indirect means.
IN FULL:
President Donald J. Trump issued a new Executive Order late Thursday that ceases federal funding for National Public Radio (NPR) and the Public Broadcasting Service (PBS). The order directs the government-funded Corporation for Public Broadcasting (CPB) to halt all direct and indirect support for the two public broadcasters, contending they are “entities that receive tens of millions of dollars in taxpayer funds each year to spread radical, woke propaganda disguised as ‘news.'”
“No media outlet has a constitutional right to taxpayer subsidies, and the Government is entitled to determine which categories of activities to subsidize. The CPB’s governing statute reflects principles of impartiality: the CPB may not ‘contribute to or otherwise support any political party,'” the Executive Order states, arguing: “The CPB fails to abide by these principles to the extent it subsidizes NPR and PBS. Which viewpoints NPR and PBS promote does not matter. What does matter is that neither entity presents a fair, accurate, or unbiased portrayal of current events to taxpaying citizens.”
The presidential directive instructs “the CPB Board of Directors (CPB Board) and all executive departments and agencies (agencies) to cease Federal funding for NPR and PBS.” Specifically, the CPB has been told to halt all indirect federal funding for public broadcasters, including ancillary funding for “licensees and permittees of public radio and television stations.” Additionally, the executive order directs the heads of other federal agencies to “identify and terminate, to the maximum extent consistent with applicable law, any direct or indirect funding of NPR and PBS.”
Both NPR and PBS have been embroiled in recent media controversies, facing allegations of partisan political bias in their news coverage. In March, the current NPR CEO, Kathrene Maher, admitted while testifying before Congress that the publicly funded broadcaster failed to adequately cover the Hunter Biden laptop story in 2020. “I do want to say that NPR acknowledges we were mistaken in failing to cover the Hunter Biden laptop story more aggressively and sooner,” Maher said, noting she was tapped to lead the public broadcaster well after the controversy.
In April last year, NPR faced internal pushback from veteran editor Uri Berliner, who published a scathing criticism of the news organization in The Free Press. Berliner alleged that NPR had abandoned any pretense of objective journalism and instead had become a willing mouthpiece for partisan propaganda pushed by the likes of Democrat lawmaker Adam Schiff (D-CA). After receiving a five-day suspension from Maher over the commentary, Berliner resigned from his role as an editor with NPR, stating: “I cannot work in a newsroom where I am disparaged by a new CEO whose divisive views confirm the very problems at NPR I cite in my Free Press essay.”
Meanwhile, PBS falsely reported last year that President Trump wants to ‘purge’ LGBTQ people from America. During a news segment, PBS anchor William Brangham claimed that Trump planned on “rolling back the rights of millions of LGBTQ people.”
❓What Happened: Sarah Pochin, representing Nigel Farage’s Reform Party, has won a by-election (special election) in the Runcorn and Helsby constituency (electoral district), ousting the governing Labour Party by six votes.
👥 Who’s Involved: Sarah Pochin of Reform UK, Karen Shore of Labour, Nigel Farage.
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📍 Where & When: Runcorn and Helsby, northwest England; results overnight on May 2, 2025.
💬 Key Quote: Nigel Farage described the victory as a “huge night for Reform.”
⚠️ Impact: The victory highlights Reform’s growing influence in British politics, despite Labour’s substantial parliamentary majority.
IN FULL:
The Reform Party’s Sarah Pochin clinched victory in the Runcorn and Helsby by-election (special election) in England by a margin of just six votes, unseating the governing Labour Party in what was previously a “safe” seat. The election, which took place in northwest England, saw Pochin defeat Labour candidate Karen Shore after a recount. The win marks a significant gain for Nigel Farage’s party and signals a shift in the political landscape.
The by-election was initiated after the previous Labour Member of Parliament (MP) resigned following a criminal conviction. “Victory in Runcorn & Helsby proves we are now the opposition party to this Labour government,” said Reform leader Nigel Farage. “With this and other results tonight, it’s clear that if you vote Conservative you will get Labour. But if you vote Reform, you get Reform.”
The Brexit champion was referring to the broader municipal and mayoral elections across England taking place at the same time as the Runcorn by-election. Results are still coming in, but those declared so far indicate massive gains by Reform, huge losses for the Conservative Party, which governed from 2010 to mid-2024, and comparatively small but still significant losses for Labour.
In the House of Commons, Labour retains a substantial majority, holding 403 MPs compared to Reform’s five, while the Conservatives are the primary opposition, with 121 seats. However, the parties’ relative popularity is not as far apart as this would indicate, and national polls now regularly show Reform equalling and in many cases leading the two establishment parties.
In the Runcorn contest, the Conservative candidate managed only a little over seven percent of the vote, while Reform secured 38.72 percent against Labour’s 38.70 percent. The electoral system in the United Kingdom, which follows a first-past-the-post model, tends to favor larger parties. The Conservatives, in particular, have often pressured right-leaning voters dissatisfied with their left-leaning governance into backing them instead of Farage-led parties to keep Labour out.
The Runcorn results suggest this line of argument is no longer effective, with voters ready to vote for Reform in large numbers regardless of the scare tactics employed by the establishment parties.
❓What Happened: The new Ukraine-U.S. minerals deal creates a joint investment fund aimed at rebuilding Ukraine and expanding its ability to mine and extract critical resources like rare earth minerals. Notably, the U.S. contribution to the fund will partially come in the form of future military aid, though the agreement does not provide Ukraine with any military security guarantees.
👥 Who’s Involved: The agreement involves the United States and Ukraine, with significant involvement from national leaders Donald J. Trump and Volodymyr Zelensky.
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📍 Where & When: The deal was signed late on Wednesday.
💬 Key Quote: “I am glad to announce the signing of today’s historic economic partnership agreement between the United States and Ukraine establishing the United States-Ukraine Reconstruction Investment Fund to help accelerate Ukraine’s economic recovery. Economic security is national security.” — Secretary of the Treasury Scott Bessent.
⚠️ Impact: The deal could increase America’s stake in the Ukrainian economy, potentially paving the way for security guarantees to preserve American interests.
IN FULL:
Ukraine’s new minerals deal with the United States does not include security guarantees but does outline the creation of a joint investment fund between the two nations. According to the agreement text, the U.S. will manage the fund, and its income will be derived from Ukraine’s mineral resources.
The deal covers several strategic resources, such as titanium, used in construction and aircraft, uranium for nuclear power and weapons, and lithium, a vital component of electric vehicles and consumer electronic batteries.
“I am glad to announce the signing of today’s historic economic partnership agreement between the United States and Ukraine establishing the United States-Ukraine Reconstruction Investment Fund to help accelerate Ukraine’s economic recovery. Economic security is national security,” Secretary of the Treasury Scott Bessent said.
Ukraine has succeeded in removing a condition that would have labeled previous U.S. aid as debt requiring repayment via mineral wealth. This aspect of the agreement is seen as a compromise to avoid embarrassment for the Ukrainian government.
Key to the deal is its potential to foster U.S. interests in Ukraine, aligning the U.S. government’s strategic goals with the fate of the Ukrainian state.
The finalized deal also maintains the opportunity for Ukraine to join the European Union (EU), keeping an essential future pathway to Western integration open. Potential NATO membership for Ukraine remains more elusive and is not supported by President Trump.
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❓What Happened: Mercedes-Benz announced on Thursday, May 1, that it will shift additional production to the United States, with the aim of localizing the assembly of a new “core segment” vehicle at its facility in Tuscaloosa, Alabama.
👥 Who’s Involved: Mercedes-Benz, President Donald J. Trump, BMW, Honda, Hyundai, Kia, Nissan, Stellantis, Toyota.
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📍 Where & When: The announcement was made on May 1, 2025, with plans to have production of the “core segment” vehicle entirely moved to Alabama by 2027.
💬 Key Quote: In a statement announcing the move, Mercedes-Benz North America CEO Jason Hoff said: “We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots.”
⚠️ Impact: The move by Mercedes-Benz is the latest announcement by a major global corporation that it intends to increase its production base in the United States following President Trump’s imposition of a global 10 percent tariff on all foreign imports and additional trade duties on foreign steel and automobiles last month.
IN FULL:
Mercedes-Benz is set to expand its manufacturing operations in the United States, as the company plans to produce an additional vehicle at its Tuscaloosa, Alabama, facility. This move comes amid the Trump administration’s emphasis on bolstering American manufacturing, urging automakers to enhance their domestic production efforts to avoid tariffs imposed on foreign auto and steel imports earlier this year.
“We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots,” Mercedes-Benz North America CEO Jason Hoff said in a statement announcing the move on Thursday.
The decision aligns with other shifts in the automotive industry toward onshoring production. BMW is contemplating increasing its workforce in South Carolina with additional shifts. Honda intends to transfer production of its Civic model from Japan to U.S. facilities. Additionally, Hyundai has announced a significant $20 billion investment aimed at strengthening its American production capabilities. This includes a new $5.8 billion steel plant in Louisiana, aiding in Hyundai’s goal of localizing production in the United States.
Kia, in collaboration with Hyundai, plans to manufacture hybrid vehicles in Georgia. Nissan is evaluating the possibility of moving production from Mexico to the U.S. Additionally, Stellantis is set to restart its Belvidere, Illinois plant to produce a midsize pickup truck, while Toyota intends to increase hybrid vehicle production at its West Virginia facility.
The National Pulse reported earlier on Thursday that satellite radio provider SiriusXM told investors on its quarterly earnings call that it does not anticipate tariffs to significantly impact the company’s revenue. Notably, SiriusXM is heavily reliant on new car sales to build its subscriber base, holding installation agreements with most U.S. automakers.
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By Popular Demand.
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❓What Happened: President Donald J. Trump signed an Executive Order to establish a Religious Liberty Commission to safeguard and promote religious freedom in America.
👥 Who’s Involved: The Commission will include TV personality Dr. Phil McGraw as chairman, ex officio government officials, clergy, legal experts, academics, and public advocates.
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📍 Where & When: Announced on Thursday in the United States.
💬 Key Quote: “I can’t tell you how proud I am to see religion coming back to the White House. God bless you for doing this.” — Dr. Phil McGraw.
⚠️ Impact: The initiative aims to address threats to religious liberty, enhance protections for future generations, and advise on relevant policies.
IN FULL:
President Donald J. Trump signed an Executive Order on May 1 to form the Religious Liberty Commission, a move aimed at reinforcing and protecting the principle of religious freedom in the United States. This newly established Commission plans to delve into issues affecting religious liberty and propose strategies to safeguard and enhance these rights for future generations.
The Commission will be chaired by TV personality Dr. Phil McGraw. It will see additional participation from government officials, clergy, legal experts, and public advocates. Its mission encompasses producing a thorough report on the historical foundations of religious liberty, strategies to maintain a peaceful religious pluralism, and identification of threats to religious freedom. It is also tasked with recommending policies to uphold these liberties.
“I can’t tell you how proud I am to see religion coming back to the White House. God bless you for doing this,” McGraw said on May 1. “This is a man that wants this country to have a heart and have religion,” he added.
Among the key focus areas are parental rights in religious education, school choice, and protections of religious expressions and institutions. Furthermore, the Commission is expected to collaborate with the White House Faith Office and the Domestic Policy Council to offer guidance on related policies.
Joe Biden-era federal measures and state-level measures in Democrat-led states have undermined religious freedoms, particularly for Christians, targeting conscience protections and threatening funding for faith-based entities.
The Trump administration’s efforts to correct this include ongoing federal initiatives against anti-Semitism and establishing a White House Faith Office. Additionally, a “Task Force to Eradicate Anti-Christian Bias” has been created at the Department of Justice (DOJ).
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❓What Happened: Federal charges have been brought against two Ukrainians for allegedly voting illegally in the 2024 U.S. presidential election as noncitizens.
👥 Who’s Involved: The individuals are Svitlana Demydenko, 53, and her daughter, Yelyzaveta Demydenko, 22, both Ukrainian nationals. The prosecution involves the U.S. Attorney for the Southern District of Florida, Homeland Security Investigations, and the Florida Department of Law Enforcement.
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📍 Where & When: The charges were filed in federal court in Palm Beach, Florida. The women appeared before a federal judge in West Palm Beach on April 29, 2024. The voting in question occurred on October 31, 2024.
💬 Key Quote: The Department of Justice stated that the women “voted from Palm Beach in the federal 2024 General Election, which included election of a United States President.”
⚠️ Impact: This case highlights the Trump administration’s focus on election integrity, particularly its push to ensure only citizens participate in voting following concerns about noncitizen voter registration.
IN FULL:
Federal prosecutors are charging two Ukrainian nationals with unlawfully casting ballots in the 2024 U.S. presidential election. According to the Department of Justice (DOJ), Svitlana Demydenko, 53, and her daughter Yelyzaveta, 22, were brought before a federal court on April 29 to face charges related to voting as noncitizens.
The Demydenkos, who entered the United States on nonimmigrant visas in April 2021, successfully registered to vote in August 2024. This registration was conducted through a system requiring prospective voters to affirm their U.S. citizenship. Despite this requirement, they allegedly cast ballots during early voting on October 31, in Palm Beach, within the federal general elections, which included the presidential race.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Acting Special Agent in Charge Jose R. Figueroa of Homeland Security Investigations in Miami, and Florida Department of Law Enforcement Commissioner Mark Glass announced the charges. Additionally, the DOJ says the investigation was supported by various entities, including the Florida Department of State’s Office of Election Crimes and Security, Palm Beach County Supervisor of Elections, the U.S. Diplomatic Security Service, and the U.S. Department of Government Efficiency (DOGE).
Meanwhile, Assistant U.S. Attorney John McMillan is spearheading the ongoing prosecution. Notably, the incident arrives amidst efforts, particularly championed by Republican lawmakers, to ensure only citizens engage in federal voting following historical concerns regarding voter registration by noncitizens during former President Joe Biden’s term in office.
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❓What Happened: Failed Democratic presidential candidate Kamala Harris addressed a gathering of fellow Democrats, expressing her disapproval of changes in America under Donald J. Trump’s presidency.
👥 Who’s Involved: Former Vice President Kamala Harris; Democratic donors, candidates, and elected officials, including California’s lieutenant governor, Eleni Kounalakis.
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📍 Where & When: Palace Hotel in San Francisco, during a 15-minute speech on April 30.
💬 Key Quote: Harris criticized the swift implementation of the America First agenda, calling it, “A narrow, self-serving vision of America where they punish truth-tellers, favor loyalists, cash in on their power, and leave everyone to fend for themselves.”
⚠️ Impact: Her speech highlighted ongoing distress within Democratic ranks over Trump’s energetic presidency.
IN FULL:
Former Vice President Kamala Harris has bemoaned President Donald J. Trump’s whirlwind implementation of his agenda in his first 100 days. Speaking at an exclusive event at the Palace Hotel in San Francisco, California, she delivered her first major public address post-election.
“What we are, in fact, witnessing is a high velocity event, where a vessel is being used for the swift implementation of an agenda that has been decades in the making,” Harris said, complaining that, among other things, President Trump is looking to downsize the government.
Her remarks were made in front of an audience that included prominent Democratic figures such as California’s lieutenant governor, Eleni Kounalakis. Like Harris, Kounalakis is a potential gubernatorial candidate, and part of a broader group within the Democratic Party reassessing why Harris faced widespread rejection at the polls.
Harris remarked on what she viewed as a “narrow, self-serving vision of America” under President Trump, which she claimed penalizes those speaking against it.
Speculation that Harris may consider a bid for California’s governorship in 2026 comes alongside speculation she may have hopes for another presidential run in 2028. Polls suggest that while Harris leads other potential gubernatorial candidates in polls, many voters are actually split on whether she should run at all. Just 50 percent of California voters think Harris should enter the race for state governor.
❓What Happened: A former judge from New Mexico and his spouse were released on bond after being arrested for allegedly sheltering a Venezuelan gang member and tampering with evidence.
👥 Who’s Involved: Former Doña Ana County Magistrate Judge Joel Cano, his wife Nancy Cano, and Cristhian Ortega-Lopez, an alleged member of the Tren de Aragua gang.
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📍 Where & When: Las Cruces, New Mexico; arrested in April and released on bond this past Tuesday.
💬 Key Quote: “Jose Cano stated that he destroyed [a] cellphone and further admitted that he believed the cellphone contained photos or videos that would reflect negatively on Ortega,” a federal criminal complaint states.
⚠️ Impact: Joel and Nancy Cano face potential prison sentences of up to 15 years if convicted; Joel Cano has resigned from his judicial position and is permanently barred from holding any judicial office in New Mexico.
IN FULL:
A former judge from New Mexico, Joel Cano, along with his wife, Nancy Cano, has been released on $10,000 bonds after facing charges of tampering with evidence and allegedly harboring a Venezuelan gang member, following a federal raid on their residence. The couple was apprehended in Las Cruces, New Mexico, after Homeland Security Investigations got a tip-off in January 2025 concerning Cristhian Ortega-Lopez. Ortega-Lopez is an alleged member of Tren de Aragua, a Venezuelan gang designated as a foreign terrorist organization (FTO).
Court records detail that Nancy Cano initially hired Ortega for projects around the house, later offering him accommodation in a guesthouse. Ortega reportedly entered the United States in 2023, climbing over a barbed wire fence. He now faces charges related to illegal firearm possession.
Federal agents searched the Canos’ home on April 24, aiming to locate a missing cellphone belonging to Ortega. During an inquiry, Joel Cano admitted to destroying the device with a hammer and disposing of it. “Specifically, Jose Cano stated that he destroyed the cellphone and further admitted that he believed the cellphone contained photos or videos that would reflect negatively on Ortega,” a federal criminal complaint states. “Through further questioning, agents ascertained that Jose Cano destroyed the cellphone, believing that it contained photographs of Ortega holding firearms that Ortega had uploaded onto social media platforms which would be additional incriminating evidence against him.”
Other devices retrieved from Ortega allegedly suggest affiliations with Tren de Aragua and depict him with weaponry.
Joel Cano resigned from his role as a magistrate judge in March. Subsequently, the New Mexico Supreme Court barred him from holding any judicial office within the state. The charges against the Canos could result in 15-year prison sentences if they are found guilty.
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❓What Happened: SiriusXM reported a decrease in first-quarter revenue and subscribers. Despite this, CFO Tom Barry indicated that the company is not significantly impacted by tariff-related pressures on car sales. Notably, in 2024, an estimated 92.7 percent of SiriusXM’s revenue came from subscriptions to its satellite radio service, a large portion of which is tied to installation deals with much of the American automobile industry.
👥 Who’s Involved: SiriusXM, CFO Tom Barry, CEO Jennifer Wirtz, and the Trump White House.
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📍 Where & When: The quarterly revenue numbers and comments regarding tariff impacts were revealed on May 1 during SiriusXM’s earnings call.
💬 Key Quote: “Big picture, we sleep well at night,” Barry said, noting the company had not seen a significant negative impact on auto sales stemming from President Donald J. Trump’s imposition of tariffs on foreign imports earlier this year.
⚠️ Impact: SiriusXM’s unique business model, heavily reliant on new car sales and installment contracts with automobile manufacturers, makes the company especially vulnerable to disruptions impacting the auto industry. The comments from company executives indicating that they see tariffs having only a minimal impact on revenue suggest negative economic forecasts pushed by Wall Street may be overblown.
IN FULL:
Executives with SiriusXM, the satellite radio provider, stated during a quarterly earnings call on Thursday that they do not believe the foreign import tariffs imposed by President Donald J. Trump will significantly impact the company’s revenue. The comments are notable as SiriusXM is heavily reliant on revenue derived from subscribers to its satellite radio service, which is pre-installed in many American automobiles.
During the Thursday morning earnings call, SiriusXM CFO Tom Barry stated that the company does not anticipate “that tariff-related pressure on new car sales will have a material impact on our subscriber or financial performance this year.” While Barry cautioned that “like every business, we’ll continue to closely monitor ongoing developments and broader consumer health,” he emphasized to investors, “Big picture, we sleep well at night.”
While SiriusXM did state that its revenue decreased in the first quarter of 2025 by four percent, to slightly over $2 billion, Barry and the company’s CEO, Jennifer Wirtz, stressed that lower-than-expected advertising profits drove the decline. The satellite radio provider’s business model is heavily reliant on new car sales and installment contracts with automakers to grow its subscriber base. In 2024, an estimated 92.7 percent of SiriusXM’s revenue came from subscriptions to its satellite radio service, a large portion of which is tied to the installation deals with much of the American automobile industry.
The confidence expressed by the SiriusXM executives that the Trump administration tariffs will have minimal impact on their future earnings contrasts with the narrative being pushed by economic analysis on Wall Street, which continues to forecast a high likelihood of a recession later this year. Notably, the outlook presented by Barry mirrors consumer data that suggests the U.S. economy remains steady despite a 0.3 percent contraction in GDP in the first quarter announced on Wednesday.
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