Washington, D.C. – Former U.S. President Donald Trump has reached a $25 million legal settlement with social media giant Meta, the parent company of Facebook and Instagram, resolving a lawsuit over his 2021 account suspension following the January 6 Capitol riots.

The settlement, first reported by the Wall Street Journal, will see $22 million allocated to Trump’s presidential library fund, with the remainder covering legal fees and other plaintiffs who joined the lawsuit. Meta will not admit wrongdoing as part of the agreement.

Trump’s Social Media Battle with Meta

Trump sued Meta and its CEO Mark Zuckerberg in 2021, arguing that his suspension from Facebook and Instagram was unjust and politically motivated. The company initially banned Trump’s accounts for two years, citing concerns over public safety after the Capitol riots.

Despite lingering tensions, Meta lifted the final restrictions on Trump’s accounts in July 2024, ahead of the U.S. presidential election. The settlement signals a significant de-escalation between Trump and Meta, following years of sharp criticism from the former president.

Trump, who previously labeled Facebook as “anti-Trump”, went as far as calling it an “enemy of the people” in March 2024. However, relations appear to have thawed in recent months, with Zuckerberg visiting Trump’s Mar-a-Lago resort after his 2024 election victory.

In December, Meta donated $1 million to Trump’s inauguration fund, and Zuckerberg attended Trump’s inauguration ceremony earlier this month, sitting alongside top global tech leaders.

Trump’s Social Media Presence and the Role of X

While Meta initially banned Trump, Twitter—now rebranded as X—permanently suspended his account in 2021. However, after Elon Musk acquired the platform for $44 billion, he reinstated Trump’s account in 2022 following a user poll.

Trump has since maintained an active presence on X, though he continues to favor his own platform, Truth Social, for major announcements.

Meta’s AI Investment and DeepSeek Competition

The settlement comes as Meta faces mounting competition in artificial intelligence (AI), particularly from China’s rising AI app, DeepSeek.

On Wednesday, Meta defended its $65 billion AI investment, even as tech stocks plummeted following DeepSeek’s rapid rise in popularity. Meta, however, bucked the trend, with its stock rising in after-hours trading after posting strong financial results.

Zuckerberg acknowledged DeepSeek’s impact but downplayed concerns. “There’s a lot to learn, but it’s too soon to have a strong opinion on what this means for AI’s future,” he told investors.

Meta’s Push for Open-Source AI

Unlike many U.S. tech firms, Meta has taken a unique approach by open-sourcing its AI models, making them freely available to developers.

“There’s going to be an open-source standard globally, and it’s important that it’s an American standard,” Zuckerberg said, emphasizing the need for U.S. dominance in AI development.

Meta’s AI spending has been a key focus, with Zuckerberg arguing that large-scale infrastructure investments will be a major competitive advantage.

“For a company serving billions of people, this kind of investment makes sense,” he said, dismissing concerns over high expenditures.

The Future of Meta: Smart Glasses and Facebook’s Relevance

Beyond AI, Meta is betting big on smart glasses, with Zuckerberg predicting that all glasses will be replaced by smart technology within a decade.

He also addressed concerns over Facebook’s declining popularity compared to Instagram and TikTok, vowing to revive the platform’s cultural relevance.

Additionally, Zuckerberg defended Meta’s decision to end fact-checking, arguing that community-based moderation tools would be more effective. He assured investors that advertiser demand remained strong, despite the policy shift.

Financial Performance

Meta reported $48 billion in revenue in the final quarter of 2024, a 21% increase year-over-year. Despite high AI spending, the company posted a $20 billion profit, up 49% from the previous year.

With AI investment surging and competition heating up, Meta remains at the center of the evolving tech landscape, even as it works to repair its once-hostile relationship with Donald Trump.

Global smartwatch maker Garmin is facing growing frustration from customers after widespread reports of device malfunctions, leaving many unable to use their high-end watches.

Users worldwide have complained that their devices either freeze on the start-up screen or display a blue triangle upon powering on. Among the affected models are the Fenix 8, a premium smartwatch retailing for nearly £1,000 ($1,200), as well as several other popular Garmin products.

Garmin has acknowledged the issue but has yet to provide a definitive fix. The company suggested that users attempt a reset or connect their devices to the Garmin app, but admitted that a full factory reset may be necessary in some cases.

However, reports suggest that even this measure has not resolved the problem for all users. “Their instructions don’t fix it, and Garmin is silent,” one frustrated customer wrote on X (formerly Twitter).

Affected Devices

According to Garmin’s website, the issue impacts several of its leading product lines, including:

• Approach Watch
• Edge Cycling Computers
• Epix Watch
• Fenix Watch
• Forerunner Watch
• Instinct Series Watch
• Vivoactive 4 and 5
• Venu 3 and 3S

The company has yet to confirm the root cause of the issue, but some industry experts speculate that a faulty software update may be preventing devices from properly syncing with GPS signals.

Customer Frustration Grows

As the outage drags on, social media has been flooded with complaints, with many criticizing Garmin for its lack of transparency and slow response.

“You should really prioritize your current customers and the ongoing issue with many watches,” one user posted. Another called the company’s silence “unbelievable,” given the high price tag of Garmin’s products.

Even public figures have weighed in, including Absolute Radio DJ Leona Graham, who shared her own experience with the malfunctioning watch alongside footage of the dreaded blue triangle screen.

Garmin has yet to issue a timeline for a permanent fix, saying only that it will “provide more information when available.”

For now, frustrated users are left waiting – and watching – for answers.

The European Central Bank (ECB) is widely anticipated to lower interest rates by 25 basis points on Thursday, as inflation trends toward its 2% target and economic growth remains sluggish. The deposit facility rate is expected to decline from 3% to 2.75%, marking its lowest level since February 2023.

While the prevailing economic indicators justify easing monetary policy, potential US trade tariffs could introduce uncertainty for ECB policymakers, adding complexity to the rate-cutting trajectory.

Analysts Predict Further Rate Cuts in 2025

Market analysts foresee additional rate cuts in the coming year. Goldman Sachs economist Sven Jari Stehn expects another 25 basis point reduction at the ECB’s March meeting, with further cuts likely as economic conditions evolve.

“We maintain our forecast for sequential cuts to 1.75% in July, given our projection of subdued growth,” Stehn said. ING analyst Francesco Pesole echoed this sentiment, stating that a “broadly dovish message” from the ECB could pave the way for further rate reductions in the eurozone.

Bank of America predicts rate cuts in both January and March, with a potential terminal rate of 1.5% or lower, increasing the monetary policy divergence with the US Federal Reserve. However, some analysts caution that delays beyond March may occur due to core inflation volatility.

ECB policymakers speaking at the World Economic Forum in Davos acknowledged that inflation risks are diverging between the US and the eurozone, with European inflation appearing less severe. None of the ECB speakers highlighted inflation risks arising from recent energy price movements.

Projections for euro area economic growth remain modest, with Bank of America forecasting fourth-quarter growth at 0.1% quarter-on-quarter. Spain is expected to lead (0.5%), followed by Italy (0.2%), while France (-0.1%) and Germany (0.0%) continue to struggle.

Trade Tariffs Introduce New Risks

ECB President Christine Lagarde is likely to face questions during Thursday’s press conference regarding the potential impact of US tariffs on the European economy.

Reports indicate that US Treasury Secretary Scott Bessent is preparing a 2.5% universal tariff, with gradual monthly increases up to 20%. President Donald Trump has signaled support for more aggressive tariffs on key goods, including steel, copper, and semiconductor chips.

News of these trade measures has already impacted currency markets. After briefly strengthening above 1.05 against the dollar, the euro fell to 1.0430 as tariff concerns emerged. “Volatility is likely to continue, and in the short term, the tariff noise is a key driver,” noted BBVA in a Tuesday report.

Tariffs and ECB Policy Outlook

Higher US tariffs on European imports could weigh on eurozone growth, particularly in sectors like machinery and pharmaceuticals, which rely on US exports. In theory, this could reinforce the case for lower interest rates.

However, the inflationary impact of tariffs remains uncertain. If the EU retaliates against US products, or if a weaker euro raises import costs, inflation could rise instead. Banque de France Governor François Villeroy de Galhau downplayed these risks, stating at Davos that US tariffs may drive inflation in the US but would have limited impact on the eurozone.

ABN Amro economist Bill Diviney suggested that tariffs may ultimately have a deflationary effect in Europe due to weakened global trade and lower commodity prices. “This is an important factor behind our view that the ECB policy rate will eventually be reduced to 1%,” he said.

As the ECB prepares to announce its decision, investors and policymakers will closely monitor economic data and geopolitical developments to gauge the long-term implications for monetary policy.