WSJ What’s News – Episode Summary: "DOGE Sets Its Sights on the Military"

Release Date: February 14, 2025
Host: Alex Osola
Produced by: Pierre Bienname and Anthony Banci

Introduction

In this episode of WSJ What’s News, host Alex Osola delves into several pivotal stories shaping the world of business, politics, and technology. From high-stakes negotiations involving major tech firms to significant shifts in military budgeting, the episode offers a comprehensive overview of the top headlines influencing global markets and governance.

OpenAI Rejects Elon Musk’s $97 Billion Bid

Timestamp: 00:37

The episode opens with a significant development in the tech industry:

• Elon Musk’s Bid for OpenAI: Elon Musk made a substantial offer of $97 billion to acquire OpenAI's assets. However, the board of OpenAI declined the proposal, citing that the bid was "not in the best interests" of the company's mission. This decision underscores OpenAI's commitment to its foundational goals over financial incentives.

Resignation of Star Prosecutors in New York City

Timestamp: 00:37

A critical legal controversy unfolds in New York City:

• Prosecutor Resignations: Hagan Scotten, a prominent prosecutor, resigned in protest against the Justice Department's directive to drop bribery charges against Mayor Eric Adams. Scotten criticized the move as a tactic to secure Adams' support for Trump administration initiatives combating illegal immigration and violent crime.
• Chain Reaction: Following Scotten's resignation, at least five more career prosecutors from the Justice Department have stepped down, indicating widespread dissent within the department over the decision to dismiss the case.
• Additional Context: Danielle Sassoon, the acting U.S. Attorney in Manhattan, also resigned, highlighting the depth of disagreement within the department regarding the handling of Mayor Adams' case.

International News: Russian Drone Strike on Chernobyl

Timestamp: 02:34

Significant geopolitical tensions are highlighted:

• Drone Strike Incident: Ukrainian officials reported that a Russian drone targeted the Chernobyl nuclear power plant, igniting a fire in the radiation shelter. Ukrainian President Volodymyr Zelensky confirmed that the fire was extinguished without any rise in radiation levels. However, visual evidence showed structural damage, though nuclear safety experts assured that the inner containment remained intact.
• Zelensky at Munich Security Conference: President Zelensky emphasized the priority of negotiating peace, stating, "I don't want to meet just with Russians. Just to meet for what?" (02:34). He outlined the sequence of talks, prioritizing meetings with the United States and Europe before engaging with Russia.

President Zelensky’s Meetings with U.S. Officials

Timestamp: 02:44

Further diplomatic engagements include:

• Private Meetings: Zelensky met privately with U.S. Vice President J.D. Vance and other lawmakers. During these discussions, Zelensky alleged that Treasury Secretary Scott Besant attempted to persuade him to sign an agreement granting the U.S. a 50% stake in Ukraine's rare earth minerals. These claims were reported by lawmakers to the Wall Street Journal, indicating potential leverage tactics by U.S. officials.

Hamas Announces Hostage Release

Timestamp: 02:44

In Middle Eastern affairs:

• Hostage Release Plan: Hamas declared the imminent release of the last remaining American civilian and two other men held hostage in Gaza. This announcement follows recent disputes over humanitarian aid deliveries, which had jeopardized the fragile ceasefire between conflicting parties.

Department of Government Efficiency Targets the Department of Defense

Timestamp: 02:44 – 07:15

A major focus of the episode is on governmental budgeting and efficiency:

• DOGE’s Initiative: The Department of Government Efficiency (DOGE) has set its sights on the Department of Defense (DoD) to identify significant cost-saving measures. Defense Secretary Pete Hegseth welcomed DOGE's involvement at the Pentagon.

• Interview with Nancy Youssef: WSJ National Security Correspondent Nancy Youssef provides an in-depth analysis of the military’s budget and the implications of potential cuts.

  • Military Budget Overview: The Pentagon's budget exceeds $800 billion, with total defense-related expenditures surpassing $1 trillion when including nuclear programs and the Department of Energy (04:28).
  • Allocation Breakdown: Approximately half of the budget funds personnel, followed by healthcare costs and weapons equipment. The military employs 3 million people, including 2 million troops responsible for national defense.
  • Potential Budget Cuts: Youssef discusses how military services are reassessing their expenditures, particularly in rapidly evolving areas like drone technology, to prioritize more effective investments (04:36).
  • Congressional Dynamics: Unlike previous attempts, the current Congress may be more amenable to budget cuts, especially since many defense projects are intertwined with local economies across multiple states, making unilateral budget reductions politically challenging (05:40).
  • Additional Cut Targets: Potential cuts could affect military contractors and reduce the number of general officers. Secretary Hegseth referenced the possibility of having "too many generals and admirals" (06:15).
  • Impact on Local Economies: Even minor budget adjustments can have substantial effects on specific districts and senators’ constituencies due to the immense size and complexity of the DoD budget (06:15).

U.S. Markets Recap

Timestamp: 07:47

A concise update on stock market movements:

• Mixed Performance: The Dow Jones Industrial Average slipped by 0.4%, while the Nasdaq gained 0.4%. The S&P 500 hovered near a record closing high set the previous month, closing down by less than 0.1%.
• Notable Movers:
  • Airbnb and Roku: Both companies saw significant surges following strong earnings reports.
  • Coinbase: Despite reporting increased revenue and profit, Coinbase's shares declined, reflecting broader market volatility.

Airlines Expand Operations in Connecticut

Timestamp: 07:15 – 09:41

The episode explores strategic shifts in the aviation industry:

• Underserved Market: Connecticut emerges as a burgeoning hub for airlines seeking to capitalize on underserved regions. Regional airports in the state present lucrative opportunities due to lower fees and reduced competition for gates.
• Insights from Jacob Passi:
  • Affluent Demographics: Connecticut’s population has substantial disposable income, making it an attractive market for leisure travel.
  • Geographical Advantage: Positioned between major hubs like Boston and New York, Connecticut offers a convenient alternative for travelers avoiding longer drives to larger airports (08:45).
  • Competitive Edge: Airlines like Breeze Airways and Avelo Airlines are tapping into this niche, supported by lower operational costs and less gate competition compared to major airports. Established carriers such as JetBlue and American Airlines are also expanding their presence in similar regional markets (09:46).
  • Industry Trend: This shift indicates a broader industry trend towards leveraging smaller airports to build business sustainably and cost-effectively (10:37).

Valentine’s Day and Tech-Driven Love Languages

Timestamp: 10:37 – 12:13

A unique take on modern relationships:

• Location Sharing as Affection: In lieu of traditional Valentine’s gifts like flowers and chocolates, some individuals express love by sharing their phone’s location through apps like Life360, Snapchat’s Snap Map, or Apple’s Find My.
• Insights from Julie Jargan:
  • Generational Shift: Younger generations, accustomed to being constantly connected and tracked by parents and peers, view location sharing as a natural extension of their relationship dynamics.
  • Potential Conflicts: This method of expressing affection can lead to trust issues and arguments, particularly if one partner feels the other is being overly intrusive or hiding something (11:16).
  • Trust Dynamics: For some, the ultimate sign of trust is the absence of the need to monitor a partner's whereabouts continually (12:13).

Conclusion and Upcoming Episodes

Timestamp: 12:13 – 13:09

Alex Osola wraps up the episode by previewing future content:

• Upcoming Shows:
  • Weekly Wrap-Up: The next day’s episode will provide a comprehensive review of the week’s news and market movements.
  • Sunday Deep Dive: An in-depth exploration of President Trump's objective to dismantle the Education Department, including potential legal and political hurdles.
  • Holiday Note: Monday's episode is skipped for President's Day, with the show resuming on Tuesday morning.

Notable Quotes

• President Volodymyr Zelensky: "First of all, I don't want to meet just with Russians. Just to meet for what? No, we see the order of meetings. As I said, the order is United States, Europe, then Russia." (02:34)

• Nancy Youssef: "It's an agency that employs 3 million people, 2 million of them being troops with such an awesome responsibility, the defense of the country." (05:34)

• Julie's Insight: "The ultimate sign of trust is to not have to know where your partner is at all times." (12:13)

Additional Information

• Production Credits: The episode was produced by Pierre Bienname and Anthony Banci, with supervising producer Emily Martosi. Michael Lavalle composed the theme music, and Aisha El Musleam served as the development producer. Scott Salloway and Chris Insinsley are the deputy editors, while Falana Patterson leads news audio for the Wall Street Journal.

• Availability: "What's News" is available wherever you get your podcasts, offering listeners concise updates twice daily on weekdays, with extended analyses on weekends.

This summary encapsulates the key discussions and insights from the WSJ What’s News episode titled "DOGE Sets Its Sights on the Military," providing a comprehensive overview for listeners and readers alike.