Hundreds of Marines Are Deploying to Los Angeles Area

Summary

Podcast Summary: WSJ What’s News – "Hundreds of Marines Are Deploying to Los Angeles Area"

Release Date: June 9, 2025

Host: Alex Osola | Source: The Wall Street Journal

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Deployment of Marines in Los Angeles Amid Immigration Protests

In a significant escalation of federal intervention, approximately 500 Marines have been deployed to the Los Angeles area in response to weekend protests over immigration. This move comes as President Trump federalizes National Guard troops to safeguard federal buildings and personnel. During the PM edition of "What's News," host Alex Osola reported:

"Roughly 500 marines are deploying to the Los Angeles area to protect federal buildings and personnel in the wake of weekend protests over immigration" (00:52).

Defense and congressional officials clarified that the deployed troops are not intended to engage with protesters. However, this decision has sparked controversy, notably with California's Democratic Governor Gavin Newsom, who criticized the federal intervention as an infringement on state sovereignty. California Attorney General Rob Bonta announced plans to sue the Trump administration, asserting that:

"Trump and Hegseth ignored law enforcement's expertise and guidance and trampled over our state's sovereignty" (01:32).

Los Angeles Mayor Karen Bass echoed these sentiments, labeling the National Guard's presence as "unnecessary" (02:32). President Trump defended the deployment, suggesting that without federal intervention, Los Angeles "would have been obliterated" (02:52).

Warner Bros. Discovery's Corporate Split

Warner Bros. Discovery has announced a strategic restructuring, planning to split into two standalone publicly traded entertainment entities. The first, Global Networks, will encompass CNN, TNT, TBS, numerous cable channels, and international holdings, retaining up to a 20% stake in the second entity. The second entity, dubbed Streaming and Studios, will house HBO Max, the movie studio, and the TV production business. This separation aims to address declining ratings and revenues in traditional cable networks as consumer preferences shift toward streaming services. The restructuring also allows the company to utilize earnings from Global Networks to reduce debt, effectively unwinding much of the 2022 WarnerMedia and Discovery Communications merger.

US Retailers Leverage Reduced Tariffs on Chinese Imports

US retailers are capitalizing on a temporary reduction in tariffs on Chinese imports to expedite shipments of clothing, electronics, and seasonal goods. According to the National Retail Federation's global port tracker, importers are projected to bring in approximately 2 million ocean shipping containers in June, marking a 5% increase from May when shipments were paused due to a 145% tariff on Chinese goods. This surge is expected to continue through August 12, thanks to a temporary tariff reduction agreement between the US and China. However, the federation warns of a potential sharp decline in imports starting September and continuing for the rest of the year.

Stock Market Movements and Crypto Trends

US stock indexes showed slight gains on the day of the episode, with the S&P 500 rising by about 0.1%, tech stocks like Nvidia and AMD boosting the Nasdaq by roughly 0.3%, and the Dow finishing flat.

Bitcoin Treasury Strategy and Its Impact

A noteworthy trend highlighted in the episode is the adoption of the Bitcoin treasury strategy by an increasing number of companies. Vicky Ge Huang, a crypto expert from WSJ, explained:

"The Bitcoin treasury strategy... has been popularized by Michael Saylor... many companies are following suit and buying bitcoin and even smaller cryptocurrencies to add onto their balance sheet as a so-called strategic asset" (05:40).

This strategy, while potentially enhancing stock performance, introduces significant volatility risks. Ge Huang noted:

"The most obvious and easy to find answer is that it really turbocharges company stock. In a lot of instances... their stock often times will have an immediate spike" (06:35).

However, the inherent volatility of cryptocurrencies poses substantial risks. A sharp decline in Bitcoin prices could lead to paper losses and forced asset sales, potentially undermining investor confidence and causing stock prices to drop further.

Rising Steel Tariffs Affect Canned Goods Prices

The implementation of a new 50% tariff on imported steel by the Trump administration is impacting the canned goods industry. Bob Tita, a WSJ reporter covering manufacturing and metals, discussed:

"US Companies that actually make tin cans have suddenly found it a lot more expensive to buy the steel for those cans" (09:04).

With domestic steel manufacturers dwindling, companies are increasingly reliant on overseas suppliers, subjecting them to the hefty tariffs. This surge in production costs is trickling down to consumers, with the Consumer Brands Association estimating that the price of canned goods could increase by 18 to 30 cents per $2 can of vegetables. Tita elaborated:

"A can is an important part of their production process because it gives food a long shelf life... their overall costs are higher than they were four or five years ago" (09:28).

These increased costs are expected to be passed along to consumers, exacerbating the rise in grocery prices driven by higher expenses for both packaging and food ingredients.

Renewable Energy Sector Struggles and Solar Farm Pushback

The renewable energy sector is witnessing significant challenges, exemplified by the bankruptcy of Sonova Energy International, one of America's largest rooftop solar installation firms. Once valued over $5 billion with more than 400,000 customers, Sonova has plummeted to a penny stock status, burdened by nearly $9 billion in debt. This downturn highlights the strained state of the US clean energy sector amid shifting federal policies that have eroded investor confidence.

Additionally, solar farm projects, particularly in the American South, are facing local opposition. Ryan December, a WSJ commodities reporter, shared insights from Perry, Georgia:

"People are saying... we like green energy, but maybe that's not the greenest use of this land... the locals said if you hem in the wildlife... you're going to hurt them more" (11:22).

In Perry, concerns over the impact of solar farms on wildlife, particularly the local black bear population suffering from restricted movement and alarming birth defects, have led to resistance against new solar projects. This local pushback underscores the complex balance between advancing renewable energy and preserving environmental integrity.

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This summary captures the key discussions and insights from the WSJ "What's News" podcast episode released on June 9, 2025. For a more in-depth understanding, listening to the full episode is recommended.

Transcript

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[Alex Osola]

Marines are being deployed in Los Angeles in the wake of the weekend protests over immigration. Plus why dozens of businesses are binging on cryptocurrency.

[Vicky Ge Huang]

Even just by announcing that a company is adopting the Bitcoin treasury strategy or a crypto treasury strategy, their stock oftentimes.

[Alex Osola]

Will immediate spike and rising steel tariffs are squeezing the canned food aisle It's Monday, June 9th. 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. Roughly 500 marines are deploying to the Los Angeles area to protect federal buildings and personnel in the wake of weekend protests over immigration that have already President Trump to federalize National Guard troops. That's according to defense and congressional officials who said that the troops won't engage with protesters. The White House did not immediately respond to a request for comment. The decision to send active duty forces into an American city marks an escalation of the use of military troops to quell domestic unrest and came over the objections of California Democratic governor Gavin Newsom, who has called the federal intervention an intrusion on state sovereignty. Earlier, in a video statement, California Attorney General Rob Bonta said California plans to sue the Trump administration over its decision to send in National Guard troops and put the blame on President Trump and Defense Secretary Pete Hegseth. With this order. Trump and Hegseth ignored law enforcement's expertise and guidance and trampled over our state's California's sovereignty. In a news conference today, Los Angeles Mayor Karen Bass also said that the National Guard's presence was unnecessary.

[Vicky Ge Huang]

When you run armored caravans through our streets, you cause fear and you cause panic. And deploying federalized troops is a dangerous escalation. But we need to be real about this. This is about another agenda. It's not about public safety. There's clearly no plan and there is clearly no policy.

[Alex Osola]

President Trump, in return, said Newsom and other city officials should be grateful for the National Guard and that Los Angeles would have been obliterated without the intervention. Warner Bros. Discovery has said it will split into two standalone publicly traded entertainment companies. One company will be home to cnn, tnt, TBS and Warner's dozens of cable channels, as well as its international holdings. That entity, called Global Networks, for now, will hold as much as a 20% stake in the second entity, which will contain the company's HBO Max streaming service, movie studio and TV production business, and which Warner is referring to as streaming and studios. It plans to use the earnings from that stake to pay off debt. The move effectively undoes much of WarnerMedia and Discovery Communications 2022 merger, separating Warner's marquee film and TV from Discovery's reality and nonfiction fare. Warner, like several other entertainment companies, has seen ratings and revenue decline in its once powerful cable network operation as consumers ditch traditional pay television in favor of streaming. US Retailers are taking advantage of a temporary reduction in China tariffs to rush in clothes, electronics and seasonal goods. The National Retail Federation's global port tracker said today that it forecasts that importers will bring in the equivalent of about 2 million ocean shipping containers this month. That's up about 5% from May, when retailers had paused shipments because of a 145% tariff on Chinese goods. Retailers are expected to bring in similarly high numbers for July and August as a temporary deal between the US and China holds tariffs at a lower 30% rate through August 12. But the federation warns that imports are expected to drop sharply in September and through the rest of the year. US stock indexes edged higher today. The S&P 500 rose about 0.1%. Chip stocks like Nvidia and AMD rallied, boosting the tech heavy Nasdaq up roughly 0.3%. The Dow ended the day flat. A growing number of companies are buying bitcoin because they believe digital assets can boost their stocks, according to Standard Chartered bank, citing data from bitcointreasuries.net, about 60 companies with no previous ties to the market are now pursuing the Bitcoin treasury strategy. But some industry insiders say that this comes with a problem. The trend could expose crypto to new risks. Vicky GE Huang covers crypto for the Journal and joins me now. So, Vicky, how does this Bitcoin treasury strategy help these companies boost their stock?

[Vicky Ge Huang]

Essentially, the Bitcoin treasury strategy. It's been popularized by Michael Saylor, executive chairman of the software company Strategy, which he has turned into a warehouse for the digital currency loading up on Bitcoin for his company. And that has really done fantastic things for the stock of strategy. And just in the recent few months a lot of companies have been following suit and they're also buying bitcoin and even smaller cryptocurrencies to add onto their balance sheet as a so called strategic asset. They want to use it as part of their treasury management strategy, which usually should be just U.S. treasury bills and really stable and conservative assets.

[Alex Osola]

What do investors like so much about this?

[Vicky Ge Huang]

The most obvious and easy to find answer is that it really turbocharges company stock. In a lot of instances, even just by announcing that a company is adopting the Bitcoin treasury strategy or a crypto treasury strategy, their stock often times will have an immediate spike.

[Alex Osola]

Of course, cryptocurrencies are known for their volatility. How much of a risk is that to the strategy?

[Vicky Ge Huang]

The volatility of cryptocurrencies is certainly the biggest risk. When bitcoin starts to drop or drop very sharply very quickly, which can certainly happen and has happened in the past, the company would be stuck with, at least on paper, losses. And then if the drop is severe enough, the company might be faced with the possibility of having to sell their bitcoins. And that could create further problems where investors in the company's stock could lose confidence. And then you will see the company's stock starts to drop as well.

[Alex Osola]

That was WSJ reporter Vicky Gehuang. Thanks so much Vicky.

[Vicky Ge Huang]

Thank you for having me.

[Alex Osola]

Coming up, how steel tariffs may make canned goods more expensive. That's after the break.

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[Alex Osola]

Last week, the Trump administration's new 50% duty on imported steel went into effect. One industry that's going to be feeling the impact canned food. And consumers will likely feel it in their wallet. Bob Tita covers manufacturing and metals industries for the Wall Street Journal. Bob US Companies that actually make tin cans have suddenly found it a lot more expensive to buy the steel for those cans. What are they doing about this? Are there domestic manufacturers of steel that they can turn to?

[Bob Tita]

Well, there are, although they're becoming fewer. And so a lot of the companies that make Cans have turned to overseas suppliers to buy what's called tin plate to make cans. So they'll be subject to paying the 50% tariff on it.

[Alex Osola]

And how about for the companies that actually put the food into cans? How are things changing for them?

[Bob Tita]

Well, it'll drive up their costs. A can is an important part of their production process because it gives food a long shelf life. It's also a fairly complicated product to make and somewhat costly part of their process as well.

[Alex Osola]

Is it just the rising prices of the cans themselves that they're contending with? Are there other factors here?

[Bob Tita]

The food itself is more expensive because prices. Food prices have been going up in recent years. The same with other costs, labor, other overhead costs. So their overall costs are higher than they were four or five years ago. Those higher costs get passed along to consumers. And whether it's the tariffs on metal or higher prices for green beans or corn, eventually that shows up on the prices that we all pay for groceries. The Consumer Brands association, which is the major trade group for food producers, estimates that the price of canned goods could go up anywhere from 18 to 30 cents on a $2 can of vegetables.

[Alex Osola]

That was WSJ reporter Bob Teda. Thank you, Bob.

[Bob Tita]

Thank you.

[Alex Osola]

One of America's largest rooftop solar installation businesses, Sonova Energy International, filed for bankruptcy today. The company was once a poster child for America's residential renewable energy boom, with a market value above $5 billion and more than 400,000 customers at its peak. Now a penny Stock with almost $9 billion in debt, Cenova has recently struggled to take on new business, providing solar panel installations, energy storage, and financing for residential customers. It's a stark illustration of the strains haunting the US Clean energy sector as shifting federal policies shake investor confidence. Another place where sentiment on solar has soured is the American South. Its ample flat land and sunshine have made it a popular place for solar farms, which have replaced swaths of timber. Now, though, landowners as well as communities are pushing back against projects in the works. WSJ commodities reporter Ryan December told our Tech News Briefing podcast why locals in one such community in Perry, Georgia, are turning against solar farms.

[Ryan December]

You're getting situations where people are saying, look, we like green energy, but maybe that's not the greenest use of this land. I traveled to a place called the Okie Woods Wildlife Management Area. It's on the Okmulgee river south of Macon, Georgia, and it's a wildlife preserve. But now the landowners want to sell and solar developers want to build because there's a transmission line running right through the property. The problem is, the locals said if you hem in the wildlife, in particular the local black bear population, you're going to hurt them more. They're already so restricted in their movement by highways and development in this fast growing area that they're starting to inbreed. And scientists from the University of Georgia are saying they're turning up with all sorts of alarming birth defects. No ears, no tails, not just like no ear flap, no ear canal, odd numbers of testicles in some of the males. And that really swayed the public opinion locally to say we don't want to rezone this timberland for power production. Even though this solar developer has a solar farm down the road that makes the county a lot of money, this isn't the place for it.

[Alex Osola]

To hear more from Ryan, listen to today's episode of Tech News Briefing. And that's what's news for this Monday afternoon. Today's show was produced by Pierre Biennime with supervising producer Michael Cosmides. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening. Viking committed to exploring the world in comfort. Journey through the heart of Europe on an elegant Viking longship with thoughtful service, cultural enrichment and all inclusive fairs. Discover [e-mail].