A Defiant Trump Is Sentenced in Hush-Money Case

Summary

WSJ What’s News: A Defiant Trump Is Sentenced in Hush-Money Case

Release Date: January 10, 2025
Host: Alex Osola, The Wall Street Journal

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U.S. Economy and Stock Market

The episode opens with a stark portrayal of the U.S. stock market’s downturn, where all three major indexes dipped by over 1.5%, with the Dow Jones Industrial Average plummeting nearly 700 points and the S&P 500 erasing its entire gains for 2025. This decline followed a robust jobs report released by the Labor Department, which revealed that the U.S. economy added 256,000 jobs last month—significantly exceeding economists' expectations by approximately 100,000 jobs. The unemployment rate also dipped slightly to 4.1%, better than anticipated.

Paul Kiernan, a WSJ reporter covering the U.S. economy, provides insights into these figures at [01:40]. He explains, “They just sort of reinforce that the economy in 2024 was stronger than a lot of people expected going into the year. GDP grew faster and the economy added more than twice as many jobs as economists had expected at the beginning of 2024.” Kiernan emphasizes that this strong performance is indicative of a "soft landing" orchestrated by the Federal Reserve, which had aimed to control inflation through high interest rates without triggering a recession.

Despite the positive economic indicators, investors reacted negatively. At [02:48], Kiernan notes, “Lately, good news for the economy has not been good news for the market.” The strong jobs report has led the Federal Reserve to signal that further interest rate cuts are unlikely, dampening market optimism. This sentiment is compounded by the anticipation of potential rate increases, as some economists suggest shifting focus from rate cuts to rate hikes.

Donald Trump's Sentencing in Hush-Money Case

A significant portion of the episode delves into the unprecedented sentencing of former President Donald Trump. Trump became the first ex-president to be sentenced for a felony when he was convicted of falsifying business records related to hush money payments to Stormy Daniels in 2023.

Speaking virtually from his Florida home before the sentencing at [04:19], Trump declared, “It’s been a political witch hunt. It was done to damage my reputation so that I’d lose the election. And obviously, that didn’t work.” Judge Juan Merchan delivered an unconditional discharge at [04:28], a rare sentence that carries no punishment but officially classifies Trump as a felon.

Corrine Ramey, a courts reporter for the WSJ, explains the significance of this sentencing at [05:07]. She states, “In some ways, it’s largely symbolic because it’s true. There’s no punishment. There’s not even a minimal fine or anything like that. In other ways, it matters because it cements his status of a felon and it kickstarts the appeal process, which could continue on for years.” Trump has indicated his intention to appeal, potentially escalating the case to higher courts, including the Supreme Court.

Additionally, the episode exclusive reports that Trump’s family real estate company is negotiating to reclaim the Trump International Hotel in Washington, D.C. This move, estimated to cost over $300 million, could test how the incoming president-elect manages potential conflicts of interest. The Trump Organization has stated that Trump will not be involved in daily management post-inauguration.

California Wildfires and Impact

The episode also covers the devastating wildfires in and around Los Angeles, which have burned over 35,000 acres, destroyed at least 10,000 buildings, and displaced more than 150,000 people. The death toll has risen to at least 10, with President Biden anticipating further increases. At [07:50], Trump comments on the situation, saying, “It is likely it will increase, whether significantly or not, we don’t know yet. There are still a lot of people are unaccounted for. I think this toll is likely to go up whether it’s significant or not. Pray God it’s not, but it could be.”

Firefighters are hopeful for progress over the weekend as dangerous winds are expected to subside slightly, offering a window to contain the fire. However, extreme fire spread conditions are forecasted to return by Monday. The wildfires have also affected the insurance sector, with U.S. home and auto insurer shares declining due to potential impacts on earnings.

Business Sector Highlights

Media Industry Developments: Disney, ESPN, Fox Corp., and Warner Brothers Discovery have abandoned their joint live sports streaming venture, Venue Sports. Initially launched to pool valuable sports programming, the collaboration struggled as confidence waned. Disney has since merged its Hulu + Live TV service with FuboTV, indicating a strategic pivot in the media landscape.

Energy Sector Acquisition: In a major move within the energy sector, Constellation Energy has agreed to acquire Calpine for $16.4 billion. This acquisition brings together two of the nation’s largest electricity generators, capitalizing on the surging value of power generators driven by the escalating energy demands of artificial intelligence.

Supreme Court and TikTok: The Supreme Court is currently reviewing the constitutionality of a law passed in April that bans TikTok in the United States. TikTok’s legal representatives argue that the law infringes on First Amendment rights by threatening to silence the platform. However, judges have expressed skepticism, viewing the law as a move against TikTok’s ownership by Beijing-based ByteDance rather than a mere speech restriction. Pending further decisions, TikTok faces a shutdown or needs to find new ownership by January 19th.

Tech Executives’ Gaming: A Look at Elon Musk

A lighter yet intriguing segment explores Elon Musk's engagement with the video game Diablo 4. Despite his extensive commitments with SpaceX, Tesla, and Dogecoin, Musk has reportedly completed a challenging level in the game within 45 days—a feat that typically requires dozens of hours. Becky Peterson, a WSJ reporter covering Musk, examines how this hobby intersects with his business responsibilities.

At [10:19], Peterson observes, “A few weeks ago, presumably he was having a SpaceX meeting while he was playing.” Musk’s gaming activities often feature on his social media, where he shares gameplay clips and even conducts business discussions in-game. This multitasking has raised questions about his focus, yet supporters argue that his diverse activities demonstrate his capability to manage multiple high-stakes ventures simultaneously. Comparatively, other tech leaders like Meta’s Mark Zuckerberg and Microsoft’s Phil Spencer also integrate personal interests with their professional roles, showcasing a trend among executives to blend work with play.

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Closing Insights and Upcoming Segments

The episode concludes with a preview of upcoming content. Listeners can anticipate a weekly markets roundup the following day and a detailed analysis of labor market trends in "What’s News Sunday." The production team, including producers Anthony Banci and Pierre Bienname, are acknowledged for their work, ensuring the delivery of comprehensive and insightful news coverage.

For those looking to take control of their financial futures, the WSJ promotes its “Money Moves” series and the “Money Briefing” segments scheduled for the new year, aiming to provide practical advice for achieving financial goals.

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Notable Quotes:

• Corrine Ramey ([05:42]): “In some ways, it’s largely symbolic because it’s true. There’s no punishment. There’s not even a minimal fine or anything like that.”
• Paul Kiernan ([02:48]): “Lately, good news for the economy has not been good news for the market.”
• Donald Trump ([04:19]): “It’s been a political witch hunt. It was done to damage my reputation so that I’d lose the election. And obviously, that didn’t work.”
• Donald Trump ([04:33]): “The only lawful sentence that permits entry of a judgment of conviction without encroaching upon the highest office in the land is an unconditional discharge...”

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This comprehensive summary encapsulates the diverse range of topics covered in the January 10, 2025 episode of WSJ What’s News, providing listeners with in-depth insights into economic trends, significant legal developments, environmental challenges, and notable business maneuvers shaping the current landscape.

Transcript

[Alex Osola]

Waymo is making a multi billion dollar bet that its self driving cars are the future of driving. Will it pay off? Find out in Waymo and the Robo Taxi Race, a new series in the WSJ's Future of Everything Feed.

[Unknown Host]

Donald Trump becomes the first former president to be sentenced for a felony.

[Corrine Ramey]

In some ways, it's largely symbolic. There's no punishment. There's not even a minimal fine or anything like that. In other ways, it matters because it cements his status of a felon.

[Unknown Host]

And a better than expected jobs report is good news for the economy, but not necessarily the stock market. Plus, why this weekend could be critical for fighting the wildfires in Los Angeles. It's Friday, January 10th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's News, the top headlines and business stories that move the world today. Today was a big down day for U.S. stocks. All three major indexes fell more than 1 1/2 percent, with the Dow losing nearly 700 points and the S&P 500 seeing all of its 2025 gains wiped out. The big reason the Labor Department's jobs report came with stronger than expected numbers this morning. Last month, the US economy added 256,000 jobs, about 100,000 more than economists had anticipated. The unemployment rate was 4.1%, slightly slightly lower than expected. Paul Kiernan, who covers the US Economy for the Wall Street Journal, is here to tell us more about what this means. Paul, what do these numbers tell us about how the economy is doing?

[Paul Kiernan]

They just sort of reinforce that the economy in 2024 was stronger than a lot of people expected going into the year. GDP grew faster and the economy added more than twice as many jobs as economists had expected at the beginning of 2024. So we're in good shape. This is really the soft landing that the Federal Reserve had been hoping for during 2023 and 2024, as inflation was coming down, they had interest rates high. There was a little bit of concern in the late summer as the unemployment rate ticked up to 4.3%, that maybe the labor market was cooling faster than it needed to or that it wanted to, and that there could be a sharper deterioration, maybe a recession in the offing. But what we've really seen since the fall is the labor market stabilize or if anything, accelerate slightly. So that's really kind of a great sign if you're a worker or an employer.

[Unknown Host]

So it seems like this is quite a solid picture for the labor market. But stocks fell sharply after the report came out and bond yields rose. Why did investors have this reaction?

[Paul Kiernan]

Lately, good news for the economy has not been good news for the market. In particular, today's report really cemented the Fed's inclination to not cut interest rates any further in January and potentially even in March. So the Fed has reduced its main interest rate by a full percentage point since September. And markets are always hoping for lower rates and they have been hoping that the Fed would continue easing policy in 2025. Well, today's report shows that the labor market concerns that have been driving those interest rate cuts are no longer really there, at least for the time being. And with a lot of the Trump administration policies uncertainty on the horizon, Fed officials are really going to want to wait before they cut rates. And in a further source of concern for markets, we've seen some economists start to suggest that maybe the conversation might need to shift away from, you know, when is the next rate cut coming to? Is a rate increase more likely than a cut at this point?

[Unknown Host]

That was Wall Street Journal reporter Paul Kiernan. Thanks, Paul.

[Paul Kiernan]

Thanks, Alex.

[Unknown Host]

Donald Trump has become the first former president to be sentenced for a crime. In 2023, Trump was indicted on 34 felony counts of falsifying business records for covering up hush money paid to adult film Stormy Daniels. Today he was sentenced for those crimes. Trump addressed the court virtually from his home in Florida before the sentencing.

[Donald Trump]

It's been a political witch hunt. It was done to damage my reputation so that I'd lose the election. And obviously that didn't work.

[Unknown Host]

Justice Juan Merchan handed down a sentence called an unconditional discharge, which carries no punishment.

[Donald Trump]

The only lawful sentence that permits entry of a judgment of conviction without encroaching upon the highest office in the land is an unconditional discharge, which the New York State Legislature has determined is a lawful and permissible sentence for the crime of falsifying business records in the first degree.

[Unknown Host]

Joining me now to talk more about this unprecedented hearing is Corrine Ramey, who covers courts for the Wall Street Journal. Corinne, tell me about this unconditional discharge. What does it mean and why this sentence?

[Corrine Ramey]

So this is a sentence that's really quite rare and unusual, particularly for somebody who was convicted at trial of a felony. But in this case, Merchand said in court that there really wasn't any other possibility that, you know, a normal defendant could have faced jail time or probation. But you can't put someone who's about to be president in jail. You can't have probation officers randomly searching the White House or doing drug tests. It just didn't work in the circumstances of this very unusual defendant.

[Unknown Host]

Okay, so if this sentence comes with no punishment, why does it even matter?

[Corrine Ramey]

Well, in some ways, it's largely symbolic because it's true. There's no punishment. There's not even a minimal fine or anything like that. In other ways, it matters because it cements his status of a felon and it kickstarts the appeal process, which could continue on for years.

[Unknown Host]

Has Trump said that he plans to appeal? Like, where does the case go from here?

[Corrine Ramey]

He has said he plans to appeal. He will appeal to an intermediate New York appeals court, which is called the First Department. And it could then go to a higher court and possibly even the Supreme Court.

[Unknown Host]

That was WSJ reporter Corinne Ramey. And in other Trump news, we're exclusively reporting that his family's real estate company is in talks to reclaim its former Washington, D.C. hotel. People familiar with the property's operations and revenue say reacquiring the rights to the Trump International Hotel could cost more than $300 million. It's a move that could offer an early test of how the president elect will handle potential conflicts of interest. In an ethics plan released today, the Trump Organization said Trump won't be involved in the day to day management of the organization once he takes office. Coming up, the latest from Los Angeles as fires continue to burn. That and more after the break.

[Alex Osola]

Are you ready to take control of your financial future in 2025? WSJ's yous Money Briefing will answer your questions about achieving your money goals.

[Unknown Host]

My score right now I think is at a 620.

[Becky Peterson]

And so I want to improve it to a 750.

[Unknown Host]

What's coming up that's going to change how easy or difficult the job market is? How long will my money last? What can I do to make it last as long as possible?

[Alex Osola]

Catch our series Money Moves for the new year the week of December 23rd on your money brief.

[Unknown Host]

The fires in and around Los Angeles have so far scorched more than 35,000 acres and destroyed at least 10,000 buildings. More than 150,000 people have been forced to leave their homes. And so far, at least 10 people are dead. President Biden told reporters today that the death toll is likely to rise.

[Donald Trump]

It is likely it will increase, whether significantly or not, we don't know yet. There's still a lot of people are unaccounted for. We don't know where they are. I think this toll is likely to go up whether it's significant or not. Pray God it's not, but it could be.

[Unknown Host]

The dangerous winds of the past few days are expected to ease slightly this weekend. Firefighters see the weekend as their best shot to make progress containing the massive blazes, with conditions for extreme fire spread forecast to return on Monday. Shares of U.S. home and Auto insurers fell today because of concerns about how the Los Angeles infernos will hit earnings. In business news, Disney's espn, Fox Corp. And Warner Brothers Discovery have called off their joint live sports streaming venture Venue Sports. Last year, the three media companies announced plans to pool some of their most valuable sports programming. On Monday, Disney agreed to merge its Hulu plus live TV service with the sports focused streamer FuboTV. We report that by later in the week, confidence in the future of Venue was eroding. Fox and the Wall Street Journal's parent News Corp. Share common Ownership A big acquisition in the Energy sector Constellation Energy has agreed to buy Calpine for $16.4 billion. The move combines two of the country's largest electricity generators. The value of power generators has soared in the past year due in large part to the massive energy demands of artificial intelligence, and the Supreme Court today seemed inclined to uphold a law banning TikTok. The court heard oral arguments on the constitutionality of the law passed last April. TikTok's lawyer said the law threatens to silence a popular platform, a violation of its First Amendment rights. But in early questioning, most judges voiced doubts about TikTok's arguments, viewing the law not as a restriction on speech, but instead as targeting the platform's ownership by Beijing based ByteDance. Pending any further intervention, the app will have to shut down or find new owners by January 19th. And finally, between SpaceX, Tesla and Doge Elon Musk is famously a pretty busy guy. But despite all those endeavors, he also claims another achievement to have quickly beaten a very difficult level in the dark fantasy video game Diablo 4. It takes dozens of hours to reach that final challenge, and it appears Musk found the time to do it in no more than 45 days. Becky Peterson covers Musk for the Journal, and she looked into how his real world business partners feel about how he's spending his time.

[Becky Peterson]

Diablo is a role playing game, and we know that Elon's playing it because he's always posting about it. He's posting clips of himself playing. He does these screen shares. Sometimes, shockingly, we hear him having conversations about his businesses. A few weeks ago, presumably he was having a SpaceX meeting while he was playing. And so the fact that we now know he's spending so much time on Diablo just raises more questions of when he's focusing on companies. But there are people who follow Musk closely who see this and are impressed with him. Sometimes when he's playing, it seems like he's maybe in his private plane streaming over Starlink, SpaceX's Internet service, or he's streaming it on X and really showing the capability of the technology. And a lot of those companies are doing well. So sometimes investors think whatever he's doing, it's working.

[Unknown Host]

And Musk isn't the only tech executive who's known to mix business and play. Meta's Mark Zuckerberg and Microsoft Gaming CEO Phil Spencer, for example, have also found ways to game while managing big companies. And that's what's news for this week. Tomorrow, you can look out for our weekly markets roundup. What's news in markets Then on Sunday, we'll be looking beyond today's jobs report to some big trends that'll affect the labor market this year. That's in what's New Sunday. And we'll be back with our regular show on Monday morning. Today's show was produced by Anthony Banci and Pierre Bienname, with supervising producer Emily Martosi. Michael Eval wrote our theme music, Aisha Al Muslim is our development producer, Scott Salloway and Chris Insinsley are our deputy editors. And Falana Patterson is the Wall Street Journal's head of news audio. I'm Alex Osola. Thanks for listening.