WSJ What’s News — PM Edition

Episode Title: DOJ Releases First Batch of Jeffrey Epstein Files
Date: December 19, 2025
Host: Sabrina Siddiqui (for The Wall Street Journal)

Overview

This episode covers the day's most significant business and political headlines, with a focus on the Justice Department’s release of Jeffrey Epstein investigation files, the state of the U.S. housing market, economic sentiment and market performance, the resurgence in the global art auction market, developments in the pharmaceutical and entertainment sectors, and other major news stories impacting markets.

1. DOJ Releases First Batch of Jeffrey Epstein Files

[00:25]

• Headline: The DOJ released a new batch of files tied to the Jeffrey Epstein case, a significant event in the longstanding battle over disclosure in the high-profile sex offender investigation.
• Context:
  • Release mandated by an overwhelming congressional vote.
  • Further releases anticipated in upcoming weeks.
• Takeaway: Marks a major transparency milestone in the Epstein case.

2. U.S. Housing Market Update

[01:16]

• Data: U.S. existing home sales rose for a third straight month (up 0.5%), reaching their highest level since February 2025.
• Expert Insight: Nicole Friedman, WSJ housing market reporter:
  • "So existing home sales have risen for three straight months, which is the longest streak of gains since late 2024...driven by slightly lower mortgage rates." [01:44]
  • “Overall, home sales are still really low this year, is still likely to be at or near the lowest level since the mid-90s for existing home sales. So...we're not seeing any huge increase in home buying activity just yet.” [02:20]
• Outlook: Possibly increased activity in 2026 if rates continue declining, but current recovery remains shallow.

3. Consumer Sentiment and Economic Outlook

[02:46]

• Sentiment: December saw slight improvements in consumer confidence.
• Concerns: Persistently high prices and a challenging job market keep pessimism elevated; 60% expect joblessness to rise in 2026.
• Positive Signs: Many economists foresee a stronger U.S. economic outlook for 2026 with diminishing trade uncertainties and new tax policy changes.

4. Stock Market Performance

[03:30]

• Market Rally:
  • Nasdaq: +1.3%
  • S&P 500: +0.9%
  • Dow: +0.4%
• Context: Both S&P and Dow are within 1% of all-time highs, buoyed mainly by rebounding tech stocks.

5. Pharma: Drug Pricing Deal

[03:58]

• Announcement: Nine pharmaceutical giants including Bristol Myers, GSK, and Merck will offer reduced prices for flagship drugs in the U.S. in exchange for tariff reprieves.
• Quote: President Trump:

  "They've agreed to offer many of their flagship drugs...at heavily discounted most favored nations prices. In other words, whatever the drug sells for...the lowest number...we will match that price." [03:58]

• Context: Aligns U.S. drug prices with international lows, continuing recent trends in drug-pricing policy.

6. Elon Musk's Pay Package Restored

[04:23]

• Legal Decision: Delaware Supreme Court reversed a prior move to block Musk’s historic 2018 CEO pay package, which grew to over $126 billion.
• Significance: Resolves a prolonged legal debate over executive compensation at Tesla.

7. Art Market Comeback

[05:38] – [09:34]
Guest: Kelly Crow, WSJ Art Market Reporter

Art Market By the Numbers

• Sotheby’s sales: +17% to $7 billion in 2025.
• Christie’s sales: +6% to $6.2 billion.
• Total global auction sales: $13.2 billion (up from $11.7 billion in 2024).

What’s Fueling Growth?

• Kelly Crow:

  "When broader economic issues pop up...it's just distracting for the wealthy people who sort of enjoy collecting art on the side. And now...they can sort of go back to having fun and buying art." [06:15]

Who Are the Buyers?

• Generational shifts: Baby Boomers and Gen X dominate, but 25% of Sotheby's bidders and 33% of Christie's buyers are under 40.
• Young collectors (Gen Z, Millennials) often enter through categories like watches, handbags, and wine before expanding into fine art.
• Quote:

  "You do get this sense that, you know, younger collectors are coming in and they don't always tend to buy what their parents and their...older friends bought. They kind of are determining their own taste." [06:47]

Changing Demographics, Expanding Markets

• Auction houses are experimenting to gauge what younger, global buyers want—such as collectibles, luxury items, and natural history artifacts.
• Expansion focus: Middle East (beyond sovereign wealth funds) and Indian diaspora.

Novelty & Record Royalties

• High prices for "trophy" collectibles:
  • Gustav Klimt painting: $236.4 million.
  • Jane Birkin’s original Hermès bag: $10.1 million.
  • Fabergé egg: $30.2 million.
  • Dinosaur bones (triceratops): $5.4 million.
• Quote:

  "When you see collectors start to pay...trophy art prices for things that are kind of novelty items...they're still just sort of testing the field of what do the younger buyers want and how kooky do they want to be?" [08:32]

• Anticipate more sports memorabilia and quirky items in big auctions.

8. U.S. Navy’s Golden Fleet Expansion

[09:42]

• News: Approval of a new class of frigates as part of President Trump's “Golden Fleet” initiative to bolster naval power against adversaries like China.
• Timeline: First ship scheduled to launch by 2028.

9. Major Developments: Shein & M&A

[10:15]

• Shein: French court rejects the government’s plea to halt the platform due to illicit product listings—determines suspension would be excessive.
• Biotech Deal: Biomarin Pharmaceutical acquires Amicus Therapeutics for $4.8 billion. Set to expand drug portfolio for rare diseases.

10. Entertainment: Peanuts Goes to Sony

[11:06]

• Deal: Sony to pay $450+ million to double its stake in Peanuts Holdings, now controlling 80% of the brand, valuing it at over $1 billion.
• Rationale: Expands Sony’s holdings in games and entertainment; keeps 20% with the Shulz family.

Notable Quotes & Memorable Moments

• On Housing Market Recovery:

  "It's a slightly more affordable time to buy a home...there is some optimism that if rates continue to decline that that could lead to an increase in home buying activity in 2026." — Nicole Friedman [01:44]

• On Young Collectors in Art Market:

  "They really are going after some novelty items...but they don't necessarily want Rothko and Bacon...there's sort of a quirkiness that comes with the younger group..." — Kelly Crow [07:47]/[08:32]

• On Pharma Pricing Deal:

  "Whatever the drug sells for over the world, in the world, whatever the lowest number is...we will match that price." — President Trump [03:58]

Timestamps for Major Segments

• Epstein Files Released: [00:25]
• Housing Market Update: [01:16]–[02:46]
• Consumer Sentiment/Economy & Stocks: [02:46]–[03:58]
• Pharma Drug Pricing: [03:58]–[04:23]
• Elon Musk Pay Package: [04:23]
• Art Market Comeback: [05:38]–[09:34]
• Navy Golden Fleet: [09:42]
• Shein Legal Win & M&A: [10:15]
• Sony/Peanuts Deal: [11:06]