B (2:56)

The question we always get to when we talk about jobs numbers is what it means for the Fed and they have their meeting in less than two weeks where they were widely expected to cut rates. Does that seem more likely now?

D (3:09)

Our story today says that they are all but certain to cut rates now. And they had talked about being concerned about the labor market and this report being pretty weak just seems to seal the deal.

B (3:23)

That was WSJ economics reporter Rachel Ensign. Thank you Rachel.

D (3:27)

Thanks so much for having me.

B (3:31)

Stocks opened higher today on a bet that the weak jobs report will prompt the Fed to cut interest rates. But they turned lower at mid morning, reflecting concerns that rate cuts won't necessarily jumpstart economic growth. Major US Indexes ended the day mostly lower. The the Dow fell about half a percent, the S&P 500 dropped about 0.3% and the NASDAQ was little changed. The world's richest man could soon be getting a whole lot richer. Tesla's board is asking investors to approve a new pay package for CEO Elon Musk that could be worth as much as $1 trillion over the next decade. That's according to a financial filing published today. For more I'm joined by WSJ business reporter Teo Francis. Teo, what do we know about this deal?

E (4:19)

Well, we know it's complicated and we know it could, if Tesla does extraordinarily well over the next decade or so, give Elon Musk a lot of Tesla stock. He gets this stock in kind of 12 chunks if he meets 12 market capitalization targets. In other words, if the company's total valuation reaches certain points, the first hits the target if the market cap goes to $2 trillion. So it's got to roughly double in value before he has any hope of getting anything. There's another part to it which is that in addition to those market value targets, there are also what the company is calling operating targets. Some of them are financial and there's what you might call product goals. Having a certain number of cars, a certain number of subscribers to the full self driving feature of Tesla cars selling a certain number of cars, putting robots that are not vehicles out into customers hands, putting robo taxis on the street. There are some caveats and exceptions as with most executive pay packages, but the gist of it is if Tesla does very well, Elon Musk will do very well and he could wind up with about 29% of the shares in the company. An additional 12% or so over what he owns.

B (5:43)

Now the pay package is coming at what is kind of a low moment for Tesla. What is the board's goal in presenting this?

E (5:50)

The goal first and foremost is to keep Elon Musk engaged. He did not too long ago threaten that he might take his activity elsewhere if he can't get a bigger stake of Tesla's voting power. It's really a balancing act for the board because they want to give him an incentive to pay attention to Tesla rather than getting distracted by politics or any of the other companies he runs. At the same time, they also need to make it something that he's actually going to have some hope of achieving.

B (6:21)

That was WSJ business reporter Teo Francis. Thanks, Teo.

E (6:25)

Thank you.

B (6:27)

Coming up, what we know about this morning's immigration raid at a Hyundai site in Georgia and what it could mean for international relations. That's after the break.

F (6:39)

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B (7:13)

Nearly 500 people were arrested as part of an immigration raid at a Hyundai Motor battery plant under construction in Georgia. A Homeland Security official said the raid was part of a criminal investigation into employment practices at the site. During a press conference, Stephen Schrank, special agent in charge of Homeland Security investigations in Georgia, said, said this wasn't a spontaneous raid.

G (7:36)

This was not a immigration operation where agents went into the premises, rounded up folks and put them on buses. This has been a multi month criminal investigation where we have developed evidence, conducted interviews, gathered documents and presented that evidence to the court in order to obtain a judicial search warrant.

B (8:02)

The factory is a joint venture between South Korea based Hyundai Motor and a South Korean battery manufacturer, LG Energy Solutions. The plant is part of a $7.6 billion Hyundai complex that the state has described as the largest manufacturing project in Georgia's history. I'm joined now by WSJ Korea Bureau Chief Tim Martin. Tim, what do we know about the people who were arrested and why most.

C (8:26)

Of them are South Korean? More than 300 of the roughly 475 detained are from South Korea. And what the US has said is these people have overstayed their visas, they crossed the border illegally. But we don't have a breakdown of who did what Allegedly, what we're hearing from our South Korean contacts is that the majority of these South Koreans are there on visas that allow some type of training, and they're there to help the workers on the ground carry out their work.

B (8:56)

Is that a common practice for companies from elsewhere to bring in workers to help build their manufacturing facilities?

C (9:02)

We haven't seen specific data tracking this, but under the new Trump administration, there's this big push by the US to get foreign companies to relocate more of their manufacturing inside the US So as a result, these foreign companies don't just outsource all of this work to local Americans. They often send officials from the home country to provide some of that overseas knowledge to operations and production on the ground.

B (9:26)

Now, Hyundai recently pledged $26 billion in US investments. Could this raid affect that investment?

C (9:33)

Hyundai I think it will be difficult for them to unwind some of the money, but the timing certainly could be affected. They have to reassess, well, are we putting our employees at risk? Is there political implications? South Korea was not happy about this raid, so the company will have to factor in what this will do for their relationship with the Seoul government.

B (9:57)

So this raid and arrest come months after tense trade negotiations between the US And South Korea. Could this affect that relationship?

C (10:05)

Seoul was definitely upset they were not given advance notice to this raid. And yes, we've had contentious trade talks for months, but they're still unresolved. There's no written agreement between Seoul and Washington, and a big impasse sits around roughly $350 billion in investment that South Korea has pledged for America. But there are still unresolved questions about when, where, and how that money will be spent. And if South Korean companies feel like their employees could be detained at a moment's notice, that will give them pause. Should they do this now, what are the actual visas they need? This has thrown a lot of uncertainty and questions into an already complex and ambitious investment plan by South Korea.

B (10:48)

That was WSJ Korea Bureau Chief Tim Martin. We're exclusively reporting that the Department of Health and Human Services, run by Health Secretary Robert F. Kennedy Jr. Is expected to release a report this month that is likely to suggest as among the potential causes of autism, low levels of folate, an important vitamin, and Tylenol taken during pregnancy. That's according to people familiar with the matter. Tylenol, whose active ingredient is acetaminophen, is a widely used pain reliever, including by pregnant women. Some previous studies have indicated risks to fetal development, but others have found no association. The American College of Obstetricians and gynecologists say it is safe to use in pregnancy, though it recommends pregnant women consult with their doctors before using it, as with all medicines. Shares of Ken View, parent company of McNeil Consumer Health Care, which makes Tylenol, fell about 9% today. In tech news, the European Union fined Google nearly three and a half billion dollars for abusing the dominance of its advertising technology tools. The fine is the EU's second largest antitrust penalty ever, after another Google fine in 2018. The block gave Google 60 days to propose how to resolve, quote, inherent conflicts of interest, but added that its preliminary view remains that Google must divest part of that business. Fines alone haven't tended to change big tech companies business practices because even large penalties represent a fraction of their overall revenue. And AI company Anthropic agreed to pay at least one and a half billion dollars to settle a copyright infringement lawsuit over its use of pirated books to train large language models. The settlement could influence the outcome of pending litigation between other media companies and AI firms and may push the tech companies to seek licensing agreements content owners whose works are considered vital for training purposes. And that's what's news for this week. Tomorrow you can look out for our weekly markets wrap up, what's News in Markets. Then on Sunday, we're bringing you an episode of WSJ's take on the Week where co hosts Gunjan Banerjee and Telus Demos dive into markets, the economy and finance. This week they're talking with Dana Peterson from the conference board about consumer confidence and the importance of survey based data. 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 Charlotte Gartenberg and Rodney Davis. Our supervising producer was Emily Martosi. Michael Lavalle wrote our theme music. Aisha Al Muslim is our development producer. Chris Insinsley is our deputy editor. And Falana Patterson is the Wall Street Journal's head of news Audio. I'm Alex Osola. Thanks for listening.