WSJ What’s News – Congress Receives Epstein’s 2003 Birthday Letter With Trump’s Signature

Date: September 8, 2025
Host: Alex Osola
Guests: Justin Leithart, Ryan Dezember, Noemi Bisserbe

Overview

This episode covers key developments in U.S. politics, the economy, and global affairs, including:

• The revelation of a controversial letter bearing Donald Trump's signature from Jeffrey Epstein’s 2003 birthday book, now delivered to Congress.
• Analysis of the robust health services sector amid an overall slowing U.S. labor market.
• The economic implications of falling lumber prices.
• France’s deepening fiscal and political crisis following the collapse of its government.
• Updates on U.S. Supreme Court action on immigration raids and economic indicators impacting markets.

Key Discussion Points & Insights

1. Epstein’s 50th Birthday Book and the Trump Letter ([00:33])

• Context: Lawyers for Epstein's estate provided Congress with the infamous 2003 "birthday book," which includes a letter with Trump’s signature. Trump had previously denied the letter existed and called it “a fake thing,” even filing a defamation lawsuit against The Wall Street Journal.
• Details of the Letter:
  • Described as containing typed text framed by an outline of a naked woman.
  • The letter ends, “happy Birthday and may every day be another wonderful secret.”
  • The signature, “a squiggly Donald below the waist, mimicking pubic hair.” ([01:01]).
• WSJ’s Position: Dow Jones stands by its reporting:
  • “We have full confidence in the rigor and accuracy of our reporting.”
• White House Response: No response from White House Press Secretary Caroline Levitt.

2. U.S. Labor Market and Health Services Sector ([01:48])

• Trend: The labor market is stalling, with jobs data indicating a sharply slowing trend, except in health services.
• Interview with Justin Leithart (WSJ Economics Reporter):
  • “Health services…has always just been this steady, growing sector...helping the seniors and the elderly. And these jobs are steady because we always go to the doctor.” ([02:54])
  • Pandemic was a rare exception where health services lost jobs:
    • “We saw that the health services sector shed jobs, which almost never happens… it took a long time for the sector to come back…” ([03:31])
  • Outlook: Health services expected to keep growing but at a slower pace due to potential Medicaid cuts (“might not have as much oomph as it has had in the past” [04:02]), and in the context of overall weak labor markets, that’s worrying.
• Upcoming Data:
  • Expect a downward revision in jobs data; business closures and lower company formation point to deeper labor market weakness ([04:58]).

3. Market Updates ([05:32])

• Stocks rose in anticipation of inflation and jobs data, impacting Fed policy on rate cuts.
• Mortgage rates dropped sharply, possibly reviving the sluggish housing market:
  • “The average rate for a 30 year fixed mortgage fell to 6.29, the lowest level since October…” ([05:32])

4. The Warning from Falling Lumber Prices ([07:21])

• With Ryan Dezember, WSJ Commodities Reporter:
  • Lumber prices, a leading indicator, have dropped more than 20% since August.
  • “Lumber prices have traditionally been a really good leading indicator…when things are slowing down, and that’s what it’s suggesting right now.” ([07:45])
• Trade Uncertainty:
  • 25% of U.S. softwood lumber comes from Canada; longstanding duty disputes raise U.S. prices and uncertainty.
  • Trump’s threats to impose broader tariffs on Canada could exacerbate uncertainty ([08:13]).
• Industry Impact:
  • Overstocked inventories led to reduced purchases, production cuts, and a “wood glut.”
  • “Sawmills are starting to cut back hours, reduce shifts, idle some mills… all looking like a big wood glut from here on out.” ([09:20])

5. U.S. Supreme Court on LA Immigration Raids ([09:59])

• The Supreme Court lifted restrictions on immigration raids in Los Angeles, previously imposed over concerns about racial profiling.
• The decision was unsigned and briefly justified; Justice Brett Kavanaugh wrote in concurrence that the decision matched precedent for federal immigration enforcement, while liberal justices dissented.

6. France’s Government Collapse and Fiscal Crisis ([10:55])

• With Noemi Bisserbe, WSJ Paris Correspondent:
  • PM Francois Bairou’s government lost a no-confidence vote and resigned.
  • The root issue: France’s soaring budget deficit and borrowing costs, now higher than Greece’s.
    • “The French Prime Minister called this confidence vote to try to…force lawmakers to acknowledge the dire state of France’s finances…His gamble went spectacularly wrong.” ([11:15])
  • Investors seek evidence France will address its fiscal problems to stave off further rises in borrowing costs.
  • Political gridlock likely with divided National Assembly:
    • “Appetite for new parliamentary elections… but chances are…we’ll end up with the same divided national assembly and stuck in the same situation.” ([12:44])

Notable Quotes & Memorable Moments

• On the Epstein Letter:

  • “The letter concluded, quote, happy Birthday and may every day be another wonderful secret. The signature was a squiggly Donald below the waist, mimicking pubic hair.” — Alex Osola ([01:01])
  • Trump: “a fake thing” (paraphrased, [01:01])

• On Health Services:

  • “The sector might not have as much oomph as it has had in the past…That’s not great.” — Justin Leithart ([04:02])

• On Lumber Market:

  • “…all looking like a big wood glut from here on out.” — Ryan Dezember ([09:20])

• On French Politics:

  • “…if we do this again, we’ll end up with the same divided national assembly and stuck in the same situation where basically there’s no clear majority with no clear path out of this crisis.” — Noemi Bisserbe ([12:44])

Timestamps for Important Segments

• Epstein Birthday Book & Trump Letter: 00:33 – 01:48
• US Labor Market & Health Services Analysis: 01:48 – 05:28
• Market & Mortgage Rate Update: 05:32 – 06:47
• Falling Lumber Prices & Economic Signals: 07:21 – 09:54
• Supreme Court Immigration Raids Decision: 09:59 – 10:55
• France’s Government Collapse & Economic Outlook: 10:55 – 13:11

Tone & Style

• Businesslike, concise, focused on facts and direct analysis, with a crisp delivery and clear reference to concrete data.
• Occasional editorial color in describing controversy or high-stakes political drama, especially regarding the Epstein letter and French crisis.

Summary

This WSJ What’s News episode provides a brisk but detailed overview of major news affecting markets and politics. The headline-grabbing story of Jeffrey Epstein’s birthday book and the disputed Trump letter sets the tone for serious political scrutiny. U.S. labor and housing markets are cautiously analyzed—with particular focus on fault lines such as persistent health services hiring and the surprising drop in lumber prices. Overseas, France’s fiscal and political chaos portend challenges for President Macron and the European economy. The episode distills complex dynamics into actionable insights for listeners following business, finance, and global politics.