By Esra Tekin

ISTANBUL (AA) - Here’s a rundown of all the news you need to start your Friday with, including simmering tensions between US President Donald Trump and tech billionaire Elon Musk exploding in public over a tax bill dispute, Musk saying the “real reason” the Epstein files have not been made public is because Trump is in them, and NATO defense ministers gathering in Brussels to discuss capability targets.

TOP STORIES

• Trump says he asked Elon Musk to leave administration, threatens to cut funding

US President Donald Trump said he asked Elon Musk to leave his role in his administration and appeared to threaten to cut billions of dollars of government contracts with Musk’s companies as a row between the once close allies continued to widen.

"Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!" Trump wrote in a social media post.

Trump appeared to threaten to cut government subsidies for the multiple companies Musk runs, saying "the easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts."

• Musk says 'real reason' Epstein files have not been made public is because Trump is in them

Tesla CEO Elon Musk said the "real reason" government documents on disgraced financier Jeffrey Epstein have not been fully made public is because President Donald Trump is mentioned in them, marking the latest escalation in a growing rift between the once close allies.

"Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!" Musk wrote on X, adding: "Mark this post for the future. The truth will come out.”

Musk and Trump have been exchanging increasingly pointed barbs after the tech billionaire left the administration and went on to rally opposition to Trump's massive spending and tax bill.

• NATO defense ministers gather to discuss capability targets, alliance chief Rutte says

NATO defense ministers gathered in Brussels to discuss capability targets, according to the military alliance’s Secretary General, Mark Rutte.

"Today is really key, because we will decide on the capability targets, and this is an important building block to decide on the money we're going to spend in the coming years on defense," Rutte said during a doorstep statement.

Hoping to agree on the capability targets, he reiterated the need for NATO members to be able to defend themselves by preparing for a possible war and to deter any attacks.

NEWS IN BRIEF

• Turkish President Recep Tayyip Erdogan said the second round of Russia-Ukraine talks held in Istanbul on Monday marked a "historic step" toward ending the war, which has entered its fourth year.
• Four Palestinian journalists were killed in a deadly Israeli strike in Gaza City, a medical source told Anadolu.
• US President Donald Trump ordered an investigation into former President Joe Biden's presidential actions, alleging his top aides helped "conceal Biden's cognitive decline."
• The US imposed sanctions on four judges at the International Criminal Court, said Secretary of State Marco Rubio.
• Chinese President Xi Jinping and US President Donald Trump spoke over the phone for the first time since tensions between their countries escalated over tariffs, according to China’s state-run Xinhua news agency.
• UN Secretary-General Antonio Guterres expressed disappointment about the US veto of a Security Council draft resolution that called for an "immediate, unconditional and permanent ceasefire" in the Gaza Strip.
• Elon Musk endorsed impeaching his former political ally US President Donald Trump, hours after the president threatened to cut billions of dollars in government subsidies and contracts for the tech billionaire's companies.
• Israeli warplanes carried out airstrikes on Beirut’s southern suburbs, Lebanon’s state-run news agency reported.
• Italian Prime Minister Giorgia Meloni urged Israel to immediately halt its military campaign in Gaza, saying the response has grown disproportionately and must be brought to an end to protect civilians.
• Tech billionaire Elon Musk said President Donald Trump would have lost the 2024 US election without his support and further suggested that it may be time for the country to establish a new political party.

BUSINESS & ECONOMY

• European Central Bank lowers rates by 25 basis points, in line with forecasts

The European Central Bank (ECB) slashed its three key interest rates by 25 basis points, meeting market estimates.

The key deposit rate now stands at 2%, its lowest level since January 2023.

The interest rates on the main refinancing operations and the marginal lending facility were also cut to 2.15% and 2.40%, respectively.

It marked the eighth rate cut since the ECB initiated its easing cycle in June 2024.