
Plus, what happens when you have an A.I. boss.
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Tracy Mumford
From the New York times, it's the headlines. I'm Tracy Mumford. Today's Thursday, August 6th. Here's what we're covering. On Capitol Hill, a controversial measure is working its way through Congress that would reshape America's relationship with Israel when it comes to military support. For years, the US has sent Israel $3.8 billion in annual military assistance. But that deal runs out in a couple of years. And some lawmakers who support Israel are worried that the chances of re upping it are dwindling as public support in the US for that kind of arrangement is dropping sharply following backlash to Israel's conduct in Gaza. Recent Times Siena polling, for example, found that among Republican voters aged 18 to 40, about 2/3 said the US should not give more economic and military support to Israel. And in the House last month, nearly half of Democrats backed a measure that would have ended U.S. aid to the country. Facing that, a group of lawmakers has put forward a new proposal that would phase out the annual financial commitment and instead create a new office at the Pentagon that would be legally required to facilitate a U S Israel defense industrial partnership, the kind of partnership that the US Already has with close allies like Britain and Australia. Supporters of the plan, including President Trump and Israeli Prime Minister Benjamin Netanyahu, say it's a way to collaborate on things like AI missile defense and cybersecurity, and for the US to capitalize on Israeli defense and intelligence innovations. But critics say it would give Israel too much control of sensitive US Military matters and that it could intertwine Israel's military with the Pentagon in ways that might be dangerous and difficult to unwind. Representative Thomas Massie of Kentucky, one of the few Republicans who have spoken out against the measure, called it a, quote, betrayal of American sovereignty. And in an interview with the Times, Senator Chris Van Hollen, a Democrat from Maryland, argued that the US Government could always choose to work with another country on a case by case basis. But that, quote, what's sort of jaw dropping about this is that it Mandates it. One version of the plan passed the House last month and is now waiting for action in the Senate. Today, the Senate Homeland Security Committee will vote on Whether to hold Dr. Anthony Fauci, the country's former top infectious disease expert, in contempt of Congress following a heated hearing last week in which he declined to answer any questions.
Interviewer
Let's try something. What day of the week is it today?
Dr. Anthony Fauci
On the advice of counsel, I respectfully decline to answer based upon my rights under the Fifth Amendment to the Constitution.
Tracy Mumford
Fauci invoked the Fifth Amendment, his constitutional right not to incriminate himself, more than 100 times in response to questions big and small as Republican senators accused him of funding research that led to the coronavirus pandemic, something there's been no evidence of.
Interviewer
What color is the carpet in front of you?
Dr. Anthony Fauci
On the advice of counsel, I respectfully decline to answer based upon my rights under the Fifth Amendment to the Constitution.
Tracy Mumford
Legal experts say that Fauci basically took a better safe than sorry approach to avoid any accusations that he was lying under oath. But his repeated responses from frustrated Republicans.
Interviewer
Let's just get one thing straight. You don't have any rights under the Fifth Amendment because you've been pardoned, as you very well know.
Tracy Mumford
And today they're going to argue that Fauci is not entitled to plead the Fifth because President Biden gave him an unconditional pardon covering his work during the pandemic. Biden issued that pardon on his way out of office after Republicans vowed to pursue several prominent figures from his administration, including Fauci. So Republicans are basically saying that because Fauci's protected by that pardon, he has no right to refuse their questions. If the contempt vote passes the committee today, the case could eventually be referred to federal prosecutors and Fauci could face a fine or up to a year in prison. Many legal scholars predict it won't get to that point. And one law school professor who's an expert on pardon power told the Times that if a court rules Fauci can't claim the Fifth, it would be a huge break in precedent. That would say you take the 5th at your own risk of going to jail, and that turns the Fifth Amendment upside down. Yesterday, the Food and Drug Administration approved the first ever MRNA flu vaccine. MRNA is a molecule found in all human cells, and MRNA vaccines prompt the cells to make a tiny bit of a virus, which can then train the body's immune system. It was the technology used in Covid vaccines that were given to hundreds of millions of people, and now scientists believe it will let them develop new flu shots more quickly than traditional vaccines, which can take months to prepare. The head of the American Public Health association said the MRNA vaccine will make it possible to rapidly adjust to emerging new strains, quote, a capacity we have not had before. The flu remains a major public health challenge, which kills an estimated 300,000 people a year worldwide, according to the CDC. The new vaccine, which is made by the company Moderna, is expected to be ready for the upcoming flu season and will be available to most Americans 50 or older. The FDA's approval marks a stark turnaround. Initially, the agency refused to even review Moderna's application following moves by Health Secretary Robert F. Kennedy Jr. To limit MRNA research. After public outcry, the FDA reversed course. There's also been pushback against flu vaccines in general within the Trump administration. Earlier this year, the Pentagon lifted a decades old flu shot requirement for troops, but that was reinstated after a major flu outbreak at an Air Force base in Texas.
Jesse Drucker
I've been writing about the tax dodging strategies of the world's biggest companies for more than 20 years, and the new hotspot for big companies that want to hide their profits from the IRS is Malta.
Tracy Mumford
My colleague Jesse Drucker is an investigative reporter on the Times Business Desk.
Jesse Drucker
So I went to Malta recently and went to several of the buildings that were listed as the headquarters that were claiming billions of dollars of profits for big US multinationals. Got buzzed into one building that claimed to be the headquarters of dozens of companies and every office, quote unquote office was empty with the lights turned out. Another building I went to claimed to be headquarters of crocs that was just two people and this office claims all of Crocs profits around the entire world.
Tracy Mumford
Jesse says that Malta, a tiny chain of islands south of Italy, has been a tax haven for decades, but it's become even more appealing in the past few years after the country delayed joining an international effort that would have put in place a global minimum corporate tax
Jesse Drucker
and companies are piling in there. You can see in the records that Victoria's Secret and Kraft, Heinz and Pepsi are all setting up new shell companies in Malta so they can do strategies that are similar to what we're seeing with Crocs. And now what is also happening is that other countries look like they may soon follow Malta's lead. Places like Switzerland and Singapore may soon go the way of Malta of not taking part in this global crackdown.
Tracy Mumford
Jesse says that the US had been making an effort to crack down on tax havens and had made some progress under the Biden administration by signing on to that global minimum tax initiative. But President Trump withdrew the US from that on his first day back in office, essentially giving corporate America a huge gift. According to a Times analysis, the move has helped American companies avoid at least $40 billion in income taxes since the beginning of last year.
Heather Knight
And finally, so there's more products than there were last time I was here. There are some greeting cards, mugs.
Interviewer/Listener
What is that?
Tracy Mumford
Dates A couple months ago, my colleague Heather Knight, the San Francisco bureau chief, stopped by what's been billed as the world's first ever store run by AI
Heather Knight
when you walk in, you really smell incense. Luna seems to be very big on incense. Not sure why. We could go ask it.
Tracy Mumford
Essentially, an AI agent named Luna is in charge of everything, choosing the products, doing the ordering, setting the prices, et cetera. Even if some of its choices have been a little head scratching. The company behind the experiment is also studying how AI performs as a boss. The shop has human employees. Since AI can't unpack boxes or ward off shoplifters, Luna posted an ad, interviewed people and brought them on. So how is that part going? Apparently, AI is super nice as a boss, but there are some issues. The best way to describe it might be like working for a teddy bear with amnesia. The AI has approved every single request for time off, even if that has meant there's no one there to work and the shop has to close. It has also struggled with privacy and boundaries, publishing an employee's salary on public Slack channels and messaging employees late at night and on weekends. One employee said she suggested that Luna could up the store's social media presence to try and bring in more business, but the bot forgot its Instagram password for several weeks. It also keeps reordering products that aren't selling. Still, the co founders of the whole operation say they're pleased that Luna has kept its friendly attitude, saying having happy employees could be one of the most important recipes for success. But also so far, Luna has lost $62,000. Those are the headlines today on the Daily how the cyclospora outbreak got so bad and why it's been so hard for authorities to get it under control. You can listen to that in the New York Times app or wherever you get your podcasts. And one last thing before we go the Times just made a change to that app that gets you more access to our reporting, even if you are not subscribed to the Times. Yet, when you download the Times app, you now get a free month of access. Totally free. 30 days. All the stories. You do not even have to put your credit card in. Download the Times app now to get started. I'm Tracy Mumford. We'll be back tomorrow with the latest and the Friday News quiz.
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Episode Theme:
Today’s episode dives into major U.S. and global headlines, including a major shift in U.S.-Israel military relations, a historic FDA decision on flu vaccines, tax evasion tactics used by global corporations, and the curious results of an AI-run store in San Francisco.
Tone & Language Notes:
The episode features clear, measured news analysis consistent with The New York Times’ tone: thorough, skeptical, and fact-driven, but also interspersed with human, memorable moments (especially in the AI store segment).
This episode offers a compelling cross-section of political, legal, scientific, economic, and technological news, with deep dives into topics shaping national conversations, and a few oddball moments that remind listeners how quickly technology can rewrite everyday life.