Pentagon poised to curb some defense contractors' payouts under Trump order

By Mike Stone

WASHINGTON, Feb 6 (Reuters) - Defense contractors are bracing for the Pentagon to release, as soon as Friday, a list of companies who would be subject to potential restrictions on ​stock buybacks and dividend payments, nearly a month after President Donald Trump signed an executive order ‌linking shareholder payouts to weapons delivery schedules.

The list, which industry executives say has been shrouded in secrecy, will identify contractors the Pentagon deems ‌to be underperforming on contracts while distributing profits to shareholders, according to three people familiar with the matter.

Questions remain about whether subcontractors will be named and how broadly the Pentagon will define "defense contractor". The term could potentially sweep in commercial companies with limited Pentagon work.

Trump's Jan. 7 executive order, titled "Prioritizing the Warfighter in Defense Contracting," gave Defense ⁠Secretary Pete Hegseth 30 days to identify ‌contractors who are "underperforming on their contracts, not investing their own capital into necessary production capacity, not sufficiently prioritizing United States Government contracts, or whose production speed is insufficient."

Late ‍on Friday two of the executives expected the list would be released early next week - Friday was viewed as the beginning of the period it would be released.

The order prohibits defense contractors from conducting buybacks or issuing dividends "until such time as they ​are able to produce a superior product, on time and on budget."

Companies named will have 15 days ‌to submit board-approved remediation plans addressing production delays, insufficient capital investment, or inadequate prioritization of U.S. government contracts. If the Pentagon deems those plans insufficient, it can pursue enforcement actions including contract terminations. It is not clear how it would be enforced.

Defense contractors have been seeking legal advice on the restrictions, which could affect billions of dollars in shareholder payouts, Reuters previously reported. For the five largest defense firms - Lockheed Martin, Northrop Grumman, General Dynamics, L3Harris, and ⁠RTX - the stakes are high: they paid out approximately $8 billion ​in dividends over the last 12 months and bought back roughly $10 ​billion in shares, according to Morgan Stanley data.

The executive order also directs the Securities and Exchange Commission to consider barring affected contractors from regulatory safe harbors for stock repurchases. And ‍it requires future Pentagon contracts ⁠to link executive compensation to on-time delivery rather than financial metrics like earnings per share.

Trump has criticized the defense industry for what he says are high costs and slow production. In a Truth ⁠Social post when he announced the order, Trump singled out RTX's Raytheon unit as having "been the least responsive to the needs of ‌the Department of War."

The Pentagon and White House did not immediately respond to requests for comment.

(Reporting ‌by Mike Stone in Washington; Editing by Chizu Nomiyama )

Pentagon poised to curb some defense contractors' payouts under Trump order

By Mike Stone WASHINGTON, Feb 6 (Reuters) - Defense contractors are bracing for the Pentagon to release, as soon...
Iran expresses cautious optimism after nuclear talks with US

Iran and the United States held indirect talks in Oman on Friday, negotiations that appeared to return to the starting point on how to approach discussions over Tehran's nuclear program. But for the first time, America brought its top military commander in the Middle East to the table.

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The presence of U.S. Navy Adm. Brad Cooper, the head of the American military's Central Command, in his dress uniform at the talks in Muscat, the Omani capital, served as a reminder that the aircraft carrier USS Abraham Lincoln and other warships were now off the coast of Iran in the Arabian Sea.

President Donald Trump has repeatedly threatened to use force to compel Iran to reach a deal on the program after earlier sending the carrier to the region over Tehran's bloody crackdown on nationwide protests that killed thousands and saw tens of thousands of others detained in the Islamic Republic.

Gulf Arab nations fear an attack could spark a regional war that would drag them in as well.

That threat is real — U.S. forces shot down an Iranian drone near the Lincoln and Iran attempted to stop a U.S.-flagged ship in the Strait of Hormuz just days before Friday's talks in this sultanate on the eastern edge of the Arabian Peninsula.

RELATED STORY |Iran's supreme leader warns any US attack would spark 'regional war'

"We did note that nuclear talks and the resolution of the main issues must take place in a calm atmosphere, without tension and without threats," Iranian Foreign Minister Abbas Araghchi later told journalists.

"The prerequisite for any dialogue is refraining from threats and pressure," he added. "We stated this point explicitly today as well, and we expect it to be observed so that the possibility of continuing the talks exists."

The U.S., represented by U.S. Mideast special envoy Steve Witkoff and Jared Kushner, Trump's son-in-law, did not immediately comment on the talks. Araghchi said diplomats would return to their capitals, signaling this round of negotiations was over.

Iran's top diplomat offers a positive note

Araghchi offered cautious optimism as he spoke in a live interview from Muscat on Iranian state television. He described Friday's talks as taking place over multiple rounds and said that they were focused primarily on finding a framework for further negotiations.

"We will hold consultations with our capitals regarding the next steps, and the results will be conveyed to Oman's foreign minister," Araghchi said.

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"The mistrust that has developed is a serious challenge facing the negotiations," Araghchi said. "We must first address this issue, and then enter into the next level of negotiations."

Omani Foreign Minister Badr al-Busaidi, who oversaw multiple rounds of negotiations before Israel launched its 12-day war on Iran in June, called the talks "useful to clarify both the Iranian and American thinking and identify areas for possible progress."

Still, Oman described the talks as a means to find "the requisite foundations for the resumption of both diplomatic and technical negotiations" rather than a step toward reaching a nuclear deal or easing tensions.

RELATED STORY |Trump says Iran wants talks as US carrier group deploys to the region

They had initially been expected to take place in Turkey in a format that would have included regional countries as well, and would have included topics like Tehran's ballistic missile program — something Iran apparently rejected in favor of focusing only on its nuclear program.

Before the June war, Iran had been enriching uranium up to 60% purity, a short, technical step away from weapons-grade levels. The U.N. nuclear watchdog — International Atomic Energy Agency — had said Iran was the only country in the world to enrich to that level that wasn't armed with the bomb.

Iran has been refusing requests by the IAEA to inspect the sites bombed in the June war, raising the concerns of nonproliferation experts. Even before that, Iran has restricted IAEA inspections since Trump's decision in 2018 to unilaterally withdraw America from Iran's 2015 nuclear deal with world powers.

Omani palace hosts talks

Friday's talks saw in-person meetings at a palace near Muscat's international airport, used by Oman in earlier talks Iran-U.S. talks in 2025. Associated Press journalists saw Iranian officials first at the palace and later returning to their hotel before the Americans came separately.

It remains unclear just what terms Iran is willing to negotiate at the talks. Tehran has maintained that these talks will only be on its nuclear program. However, the Al Jazeera satellite news network reported that diplomats from Egypt, Turkey and Qatar offered Iran a proposal in which Tehran would halt enrichment for three years, send its highly enriched uranium out of the country and pledge "not initiate the use of ballistic missiles."

Russia had signaled it would take the uranium, but Iran has said ending the program or shipping out the uranium were nonstarters.

U.S. Secretary of State Marco Rubio said on Wednesday that the talks needed to include all those issues.

"I'm not sure you can reach a deal with these guys, but we're going to try to find out," he said.

Iran expresses cautious optimism after nuclear talks with US

Iran and the United States held indirect talks in Oman on Friday, negotiations that appeared to return to the starting po...
UN peacekeepers in Lebanon allege surge in Israeli violence toward them

BEIRUT (AP) — U.N. peacekeepers patrolling southernLebanonhave faced a dramatic surge of "aggressive behavior" by Israeli forces over the last year, including drone-dropped grenades and machine-gun fire, according to an internal report seen by The Associated Press.

The report by one of the 48 nations that together have more than 7,500 peacekeepers in southern Lebanon says the number of incidents jumped from just one in January to 27 in December. The hilly frontier zone where the UNIFIL force patrols has seen decades of cross-border violence. Israel and Lebanon's Hezbollah militants fought a full-scale war in 2024.

The targeting ofpeacekeepersappears aimed at underminingthe international forceand strengthening Israel's military footprint along the U.N.-drawn border with Lebanon, known as the Blue Line, the report alleges. It was shared with AP on condition that the news organization not identify the country whose peacekeepers compiled the findings for internal use by their senior command.

Israel has long mistrusted UNIFIL, accusing it of failing to prevent Hezbollah from building up its military presence along the border in violation of ceasefire agreements going back two decades.

The growing catalog of run-ins comes as a half-century of international peacekeeping efforts along the border face an uncertain future. UNIFIL's mission is scheduled to end this year and U.S. PresidentDonald Trump's administration regards it asa waste of money.

Israel says it tries to reduce harm

In a statement to AP, the Israeli military said it "is not conducting a deterrence campaign against UNIFIL forces" and is working within accepted frameworks to dismantleHezbollah, largely based in southern Lebanon.

The military "takes steps to reduce harm to UNIFIL forces and other international actors operating in the area," it said.

UNIFIL said in a statement that "the number of attacks on or near peacekeepers, as well as aggressive behavior toward peacekeepers, have increased since September 2025," with most of those incidents attributed to the Israeli military.

"The majority of incidents do not involve physical harm to peacekeepers, but any action that interferes with our mandated activities is a matter of concern," it said.

The U.N. force has reported additional incidents this year. An Israeli tank opened fire with small-caliber bullets on a UNIFIL post on Jan. 16, it said. This week, it reported that a drone dropped a stun grenade that exploded in the vicinity of a peacekeeping patrol before flying toward Israeli territory.

Report details array of incidents

The report seen by AP details multiple instances in 2025 ofgrenades being dropped by Israeli dronesnear UNIFIL patrols, including an attack in October that wounded a peacekeeper, as well as machine-gun fire near UNIFIL positions. In some cases, UNIFIL vehicles were damaged.

The last four months of 2025 also saw a surge in incidents of direct fire at all targets from Israeli positions on both sides of the Blue Line, the report says. Such incidents spiked to 77 in December, up from just two in January, it says.

UNIFIL vehicles and positions are clearly marked as belonging to the U.N., and Hezbollah militants have not maintained a visible presence or fired on Israeli forces in recent months.

The report says "it cannot be excluded" that Israel is using the incidents to maintain a military presence north of the border and prevent people who have fled the zone from returning.

Israel-Hezbollah conflict

After the Oct. 7, 2023,Hamas-led attack on Israel that triggeredwar in Gaza, Hezbollah began firing rockets from Lebanon into Israel in support of Hamas and the Palestinians.

Israel responded with airstrikes and shelling. The low-level conflict escalated into full-scale war in September 2024, later reined in but not fully stopped by a U.S.-brokered ceasefire two months later.

Since then, Israel has accused Hezbollah of trying to rebuild in the south, in violation of the ceasefire, and has carried out near-daily strikes in Lebanon that it says target Hezbollah militants and facilities. Israeli forces also continue to occupy five hilltop points on the Lebanese side of the border. Hezbollah has claimed one strike against Israel since the ceasefire.

Spraying of chemicals spurs an outcry

The U.N. and Lebanon say Israeli forces dropped herbicide on Lebanese territory on Sunday, forcing a more than nine-hour pause in peacekeeping activities, including patrols.

"The use of herbicides raises questions about the effects on local agricultural lands, and how this might impact the return of civilians to their homes and livelihoods in the long-term," U.N. spokesperson Stéphane Dujarric said. There was no Israeli comment.

Dujarric added that "any activity" by the Israeli military north of the Blue Line violatesa U.N. resolutionadopted in 2006 that expanded the UNIFIL mission, in hopes of restoring peace to the area after a monthlong war between Israel and Hezbollah.

Uncertain future for border area

UNIFIL was created nearly five decades ago to oversee Israel's withdrawal from southern Lebanon after its troops invaded in 1978.

The U.N. Security Councilvoted last Augustto terminate its mission at the end of 2026.

Israel had long sought an end to its mandate, saying UNIFIL failed to keep Hezbollah away from the border. Under the 2006 U.N. ceasefire, the Lebanese army was supposed to maintain security in the south with backing from UNIFIL and militants were to disarm.

Hezbollah supporters in Lebanon have frequently accused UNIFIL of collusion with Israel and have sometimes attacked its patrols.

The Lebanese government says UNIFIL serves a necessary purpose. Prime Minister Nawaf Salam said in December that Lebanon will need a follow-up force to fill the vacuum and to help Lebanese troops along the border as they expand their presence there.

In an AP interview this week, Lebanese Deputy Prime Minister Tarek Mitri said several proposals are under discussion.

One possibility is an expansion of the United Nations Truce Supervision Organization, or UNTSO, which maintains a small observer force in Lebanon. The European Union has also offered to contribute to an international observer force, he said.

Whatever the arrangement, Mitri said: "We need a neutral, internationally mandated force to observe and make sure that whatever is agreed upon in negotiations is fully respected."

Leicester reported from Paris and Lederer from the United Nations. AP journalist Josef Federman in Jerusalem contributed.

UN peacekeepers in Lebanon allege surge in Israeli violence toward them

BEIRUT (AP) — U.N. peacekeepers patrolling southernLebanonhave faced a dramatic surge of "aggressive behavior" ...
Are the Hornets the buzz of the NBA? Their 8-game winning streak is franchise's longest since 1999

There's finally NBA buzz in Charlotte again. That's because the Hornets, amid the league's longest active playoff drought, have won eight games in a row for the first time since the 1998-99 season.

They extended that head-turning streak with a109-99 road winover the Houston Rockets, despite Kevin Durant scoring at least 30 points for the fifth time in his past eight games.

In their first game sinceacquiring Coby White in a trade with the Chicago Bulls before the deadline, the Hornets (24-28) pulled away from the Rockets (31-19), causing the Western Conference's fourth-place team to pull its starters for the back half of the fourth quarter in a game that wasn't even as close as the 10-point differential suggests.

Continuing his standout rookie campaign, Kon Knueppel poured in a team-high 24 points on 8-of-13 shooting. LaMelo Ball made five 3s and wasn't far behind with 20 points.

White didn't play, and he's not expected to until after the All-Star break due to a lingering calf injury, but the former UNC star is excited for this new chapter of his career.

"Every time I come back to Charlotte to play, I would just tell people it just felt different,"White, a Goldsboro, North Carolina, native told The Charlotte Observer on Thursday.

"I just felt the love every time I was in the building just being there, it was just weird. ... Something triggers every time I was in there. So I'm excited I get to play there more."

White was talking about the Spectrum Center. The guard averaged 22.5 points per game in his two outings there with the Bulls earlier this season.

It's also where Hornets fans will anxiously await their up-and-coming squad on Monday, when Charlotte returns home to host the Eastern Conference-leading Detroit Pistons.

That matchup will mark the first of four consecutive home contests for the Hornets.

But first they'll head to Atlanta to play the Hawks on Saturday. With a win there, they'll officially match that 1999 surge, which occurred during a strike-shortened season that saw the late Paul Silas take over as interim head coach afterDave Cowens resigned in the wake of a 4-11 start.

That Hornets team lost eight of its first nine games. Similarly, the 2025-26 Hornets recorded only three victories in their first 10 games and were a meager 4-14 by late November.

This time, a coaching change hasn't precipitated the turnaround.

In his second year on the job, Charles Lee has overseen the midseason transformation.

The Hornets are getting production from an assortment of young players. In addition to the 20-year-old Knueppel and 24-year-old Ball, Brandon Miller is making a sizable impact. In his third season, Miller, 23, is leading the team in scoring at 20.4 ppg. Plus, it helps that big man Moussa Diabaté, 24, has become a reliable rebounder for the group.

Miles Bridges is still doing his thing, too. The Hornets' future is bright, and they're suddenly 1.5 games back of the Hawks for ninth place in the East — prime play-in position.

Charlotte plays Atlanta twice in the next three games, starting on Saturday night.

Are the Hornets the buzz of the NBA? Their 8-game winning streak is franchise's longest since 1999

There's finally NBA buzz in Charlotte again. That's because the Hornets, amid the league's longest active pla...
Casey Wasserman, chairman of the Los Angeles Organizing Committee for the 2028 Olympic and Paralympic Games speaks during an IOC meeting ahead of the 2026 Winter Olympics, in Milan, Italy, on Tuesday, February 3, 2026. (AP Photo/Luca Bruno) - Luca Bruno/AP

The head of the coordinating committee for the 2028Olympic Games in LosAngeles is facing calls to step down after emails released by the Justice Department last week show he exchanged racy messages with Ghislaine Maxwell more than 20 years ago.

The messages between Casey Wasserman – who, along with chairing LA28, is also a prominent entertainment and sports agent – and Maxwell were included in themillions of documents released by DOJlast week related to its investigation into Jeffrey Epstein.

They show that the pair exchanged several intimate messages in 2003, prompting calls from city officials that Wasserman step down.

Duringone exchange in March, Wasserman asks Maxwell: "So what do I have to do to see you in a tight leather outfit?"

In another email, datedApril 1, 2003,Wasserman, who was married at the time, says to Maxwell: "Where are you, I miss you," before asking to book a massage.

Wasserman has not been accused of criminal wrongdoing in relation to Epstein. Messages for Wasserman left through his talent management company and a crisis public relations firm that represents him were not immediately returned on Thursday.

In a statement to other news outlets, Wasserman apologized for his communications with Maxwell while adding he "never had" a personal or business relationship with Epstein.

Maxwell, Epstein's former girlfriend, was convicted of sex trafficking and other crimes in 2021 and is serving a 20-year sentence. Epstein died by suicide in 2019 while awaiting trial on federal sex-trafficking charges.

While some aspects of Wasserman's association with Epstein were already known, the emails show a deeper and far more intimate relationship with Maxwell than had previously been revealed.

Wasserman's communications with Maxwell took place years before she was convicted of a crime.

The messages between the pair threaten to create a major distraction as Los Angeles gears up to host the 2028 games, whichare forecasted to generatebetween roughly $13.6 billion and $17.6 billion in additional gross domestic product for the region and create tens of thousands of new jobs.

Several local officials in Los Angeles have called for Wasserman to step away, describing the stakes of the Olympics as too great to be put at risk.

"Los Angeles cannot trust our financial future to someone connected with Jeffrey Epstein and Ghislaine Maxwell," City Controller Kenneth Mejia said in a post on X, calling for Wasserman to "take accountability and resign."

Los Angeles City Councilwoman Monica Rodriguez, who also called for Wasserman to step aside, saidin an interview with Spectrum Newsthat she was "incredibly disappointed" to learn of Wasserman and Maxwell's close relationship, adding it "really undermines the legacy of what these Games are supposed to represent."

Los Angeles County Supervisor Janice Hahn, also calling for Wasserman to resign, said her opposition to his leadership in LA28 was "not about shaming him for his past indiscretions."

"This is about the message we are sending to Epstein survivors and to the world about our values — especially as we work to combat any sex trafficking associated with the Games," Hahn told CNN. "I worry Casey Wasserman's continued leadership almost guarantees that our Los Angeles Olympic Games will be tied in subsequent press coverage to his association with a notorious sex trafficker."

Los Angeles Mayor Karen Bass said in a statement that it is "critical to be 100% focused on making our city shine and ensuring the 2028 Games are the best in Los Angeles' history," but did not go as far as asking for Wasserman's resignation. Instead, the mayor added that any decision pertaining to the leadership of LA28 must rest with its board.

Several members of the LA28 board, which includes nearly three dozen prominent names in business, entertainment, sports and politics, also did not respond to requests from CNN asking if they maintain confidence in Wasserman's ability to lead.

Both the International and US Olympic committees did not respond to requests for comment, but when asked during recent press conferences about Wasserman, leaders of both committees referred to his earlier statement and said they would have nothing to add.

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LA Olympics chief faces calls to resign after flirty emails with Ghislaine Maxwell are revealed in Epstein files

The head of the coordinating committee for the 2028Olympic Games in LosAngeles is facing calls to step down after emails released by the Ju...

 

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