Mike Johnson Wins the Vote for House Speaker on First Ballot

Summary

WSJ What’s News: Mike Johnson Wins the Vote for House Speaker on First Ballot
Episode Release Date: January 3, 2025

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1. House Speaker Election: A Historic First-Ballot Victory

In a pivotal moment for the 119th Congress, Mike Johnson secured his position as Speaker of the House on the very first ballot. The election, which concluded after significant behind-the-scenes negotiations, highlights Johnson's ability to unify the Republican caucus amidst initial dissent.

Key Details:

• Vote Breakdown: Johnson achieved the necessary 218 votes by swaying key holdouts, including Representatives Ralph Norman from South Carolina and Keith Self from Texas.
• Strategic Negotiations: Johnson engaged directly with dissenting Republicans, leading to their shift in support and ensuring a swift resolution to the speaker vote.

Notable Quote:

"It's a big deal because Mike Johnson forever is going to be able to say he got this on the first ballot, he's sidelined any dissent and he is now on course to drive through Trump's agenda."
— Donald Trump (01:47)

Donald Trump's Influence: Former President Donald Trump exerted considerable influence over the speaker election, directly contacting holdout Republicans to secure Johnson's victory. This maneuver underscores Trump's enduring sway within the Republican Party and sets the stage for his continued impact on legislative priorities.

Implications for Congress: Trump's involvement suggests a strong alignment between the new House leadership and his policy objectives. However, the narrow pathway to advancing Trump's agenda indicates potential challenges ahead, especially if resistance grows within the party’s base.

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2. President Biden Blocks U.S. Steel Sale to Nippon Steel: A Move Towards Protectionism

President Joe Biden has officially blocked the sale of U.S. Steel to Japan's Nippon Steel, citing national security concerns. This decision reflects a broader shift towards a more protectionist stance by the U.S. government, signaling increased scrutiny of foreign investments in strategic industries.

Key Details:

• Committee Review: The deal was under review by the Committee on Foreign Investment in the U.S., which ultimately deadlocked, leading to Biden’s intervention.
• Response from Stakeholders: Both Nippon Steel and U.S. Steel have criticized the decision, claiming a lack of credible evidence to support the national security claims.

Notable Quote:

"The president basically said that there were national security issues related to the acquisition of U.S. steel. They didn't really give a lot of specificity about what those issues were or why they were a deal breaker."
— Siobhan Hughes (07:05)

Expert Insight: Bob Teda, a metals and manufacturing reporter, explains that U.S. Steel will continue operating independently, despite the weak steel market and the unlikelihood of another buyer emerging under current conditions. The company plans to close older, higher-cost plants and transfer production to more efficient facilities across the country.

Implications for U.S. Steel: The blockage leaves U.S. Steel to navigate a challenging market landscape without the infusion of foreign capital from Nippon Steel. This decision may lead to further consolidation within the industry or pave the way for alternative strategic alliances.

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3. Surgeon General Proposes Cancer Warnings on Alcohol Labels

In a significant public health initiative, the U.S. Surgeon General has recommended adding cancer warning labels to alcoholic beverages. This proposal aims to raise awareness about the link between alcohol consumption and cancer, fostering informed consumer choices.

Key Details:

• Health Impact: Alcohol consumption ranks as the third leading preventable cause of cancer in the United States.
• Legislative Hurdles: Implementing new labels would require an act of Congress, facing uncertain bipartisan support.
• Industry Response: While immediate comments are pending, industry groups like the Beer Institute advocate for moderate consumption without supporting new warnings.

Notable Quote:

"We're not quite sure if that's going to be passed, but there's definitely in the scientific community more of a movement to look much more critically at alcohol and potentially encourage people to curb back on their alcohol consumption."
— Brianna Abbott (04:35)

Insights from Health Reporting: Brianna Abbott highlights the ongoing debate within the scientific community regarding the extent of alcohol's cancer risks. Current data suggests that while moderate drinking (up to one drink per day) carries relatively low risk, the probability of cancer increases with higher consumption levels. Additionally, trends show a decline in alcohol consumption and a rise in non-alcoholic alternatives, reflecting shifting consumer preferences driven by health considerations.

Future Outlook: The proposal adds pressure on alcohol companies to potentially reformulate their products or adjust marketing strategies. However, the lack of consensus on safe consumption levels and the contested nature of the evidence presents challenges for regulatory approval.

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4. U.S. Markets Rally After Extended Declines

Despite a prolonged period of downturns, U.S. stock markets experienced a notable uptick, signaling a possible shift in investor sentiment. Major indices, including the Nasdaq, S&P 500, and Dow Jones, closed the day with significant gains.

Market Highlights:

• Nasdaq: Rose approximately 1.8%, marking a substantial rebound.
• S&P 500: Increased by about 1.3%, its best performance since November 6th.
• Dow Jones: Climbed nearly 1%, reflecting broad-based positive movements.

Automotive Sector Performance: The auto industry is anticipating a modest rise in vehicle sales for 2024, with forecasts estimating around 16 million new vehicles sold—a 3% increase from the previous year. Improved inventory levels, aided by a stronger holiday sales season, contributed to this optimistic outlook. However, analysts caution about potential obstacles, including lingering supply chain issues and economic uncertainties.

Manufacturing Sector Update: The Purchasing Managers Index (PMI) from the Institute for Supply Management revealed a slight contraction in U.S. manufacturing activity for December, marking the ninth consecutive month of decline. Despite this, demand indicators showed signs of improvement, hinting at a gradual stabilization of the sector.

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Conclusion

This edition of WSJ What’s News provided comprehensive coverage of significant political developments, regulatory actions affecting key industries, public health initiatives, and the latest movements in the financial markets. As Congress begins its new session under Speaker Mike Johnson's leadership, the interplay between political influence and legislative agendas will be crucial to monitor. Simultaneously, President Biden's protectionist measures and public health policies indicate a noteworthy shift in U.S. governance priorities. Meanwhile, fluctuating market dynamics and industry-specific trends continue to shape the economic landscape as we move further into 2025.

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For those who missed this episode, stay informed with WSJ's What’s News for detailed analyses and timely updates on the issues that matter most.

Transcript

[Alex Osola]

Waymo is making a multi billion dollar bet that its self driving cars are the future of driving. Will it pay off? Find out in Waymo and the Robo Taxi Race, a new series in the WSJ's Future of Everything Feed.

After some late drama, Mike Johnson is elected as speaker of the House on the first ballot. And President Biden blocks the sale of U.S. steel to Japan's Nippon Steel.

[Siobhan Hughes]

This is a signal that the US Government is becoming more protectionist, less open to foreign business investment, particularly as it relates to foreign companies buying U.S. companies.

[Alex Osola]

Plus, the U.S. surgeon General wants to add labels to alcoholic beverages warning that they cause cancer. It's Friday, January 3rd. 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. Incumbent Mike Johnson has won enough votes to remain House Speaker. He won on the first ballot. Johnson could only afford to lose one Republican vote. And three Republicans initially voted for other candidates. But after Johnson huddled with two of the holdouts, they changed their votes, bringing Johnson's total to the 218 he needed to win. Therefore, the honorable Mike Johnson of the.

[Siobhan Hughes]

State of Louisiana, having received a majority.

[Alex Osola]

Of the votes cast, is duly elected speaker of the House of representatives for the 119th Congress. Siobhan Hughes, who covers Congress for the Wall Street Journal, joins me now from the Capitol. So, Siobhan, how significant is this win on the first ballot? Even with that kind of last minute scrambling?

[Donald Trump]

It's a big deal because Mike Johnson forever is going to be able to say he got this on the first ballot, he's sidelined any dissent and he is now on course to drive through Trump's agenda.

[Alex Osola]

Yeah. What made those two Republican representatives, Ralph Norman from South Carolina and Keith Self from Texas, change their minds?

[Donald Trump]

One word, Trump. Donald Trump was placing calls to these holdout Republicans and eventually they responded to that pressure.

[Alex Osola]

So it sounds like Trump is holding quite a bit of sway already over this new Congress.

[Donald Trump]

He absolutely is. That's a fair assessment. And you know, this had been an open question heading into the speaker vote because last year dozens of Republicans so spectacularly bucked Donald Trump when he'd wanted to get a debt ceiling increase through on a spending bill. And when they voted against him, there was a question about how much his influence was going to extend. And so far it's extensive. There was only one Republican, Thomas Massie, to vote for somebody other than Donald Trump.

[Alex Osola]

So looking ahead a little bit, what might this tell us about how Congress could work with Trump's agenda moving forward?

[Donald Trump]

Well, what this tells us is that there is a pathway for Republicans to pursue Trump's agenda, but it also tells us that this is a very narrow pathway. While the holdouts didn't really negotiate anything of substance, there are no wins here. They certainly put Republicans and in some sense Donald Trump on notice that they're ready to rattle the sabers. And really if they continue to do so, it's probably going to depend on how closely the base continues to stick with Donald Trump.

[Alex Osola]

That was Wall Street Journal reporter Siobhan Hughes. A New York judge said today he would move forward and sentence Donald Trump for his hush money conviction before the President elect begins his second term in the White House. Justice Juan Merchan said he would sentence Trump on January 10, rejecting Trump's argument that the verdict couldn't remain in place after his reelection. Merchan said that Trump could appear for his sentencing, which will be held in state court in Manhattan, either virtually or in person. Alcohol consumption is the third leading preventable cause of cancer in the U.S. now the U.S. surgeon General says alcoholic beverages should carry cancer warnings to increase awareness. The recommendation follows a years long debate within the health and scientific community. Changing the label would require an act of Congress and it's unclear if the Surgeon General's proposal would get bipartisan support. Wine and spirits industry groups didn't immediately comment. Industry group the Beer Institute said they encouraged drinkers to consume alcoholic beverages in moderation. WSJ health reporter Brianna Abbott says that it's not yet clear what this could mean for alcohol companies.

[Brianna Abbott]

The implications for especially alcohol companies is to be determined. We're not quite sure if that's going to be passed, but there's definitely in the scientific community more of a movement to look much more critically at alcohol and potentially encourage people to curb back on their alcohol consumption. The industry is already seeing fewer Americans drinking Alcoh than in previous years because of things like health concerns and changing tastes. And you've seen non alcoholic beers and spirits gain popularity as well. There is a sticking point between different scientific groups and industry about just how much alcohol raises cancer risk and how much of it is safe. We don't fully have an answer to that question, but there is data that suggests that though averaging no more than about one drink a day carries relatively low risk, the risk increases with every drink that you have. A couple of other reports are as the National Dietary Guidelines are being rethought. So there's definitely more news to come.

[Alex Osola]

In this space in the morning edition of what's News on Monday. Briana will be discussing the rise in cancer cases in young people. Coming up, what happens to U.S. steel after President Biden blocked its sale to Nippon Steel? That's after the break.

Are you ready to take control of your financial future in 2025? WSJ's yous Money Briefing will answer your questions about achieving your money goals. My score right now I think is.

At a 620 and so I want to improve it to a 750. What's coming up that's going to change how easy or difficult the job market is?

How long will my money last?

[Siobhan Hughes]

What can I do to make it.

[Alex Osola]

Last as long as possible? Catch our series money moves for the new year the week of December 23rd on your money Briefing.

As expected, President Biden has blocked the sale of U.S. steel to Japan's Nippon Steel. His decision comes after the Committee on Foreign investment in the U.S. a federal interagency panel, spent months reviewing the deal for potential national security risks. The committee deadlocked, which left the decision up to Biden. Nippon Steel and US Steel said the president's order didn't present any, quote, credible evidence of a national security issue, end quote, and criticized the committee's review of the deal. Here to tell us more about the scrap deal and its implications is Bob Teda, who covers metals and manufacturing for the Wall Street Journal. So, Bob, why did Biden ultimately reject this deal?

[Siobhan Hughes]

The president basically said that there were national security issues related to the acquisition of U.S. steel. They didn't really give a lot of specificity about what those issues were or why they were a deal breaker. This is a signal that the US Government is becoming more protectionist, less open to foreign business investment, particularly as it relates to foreign companies buying U.S. companies. That's become a lot more politically volatile in recent years. The sale of U.S. steel was criticized by President Elect Trump. There's been a lot of pushback on foreign companies buying U.S. companies.

[Alex Osola]

So where does this leave U.S. steel?

[Siobhan Hughes]

Well, it goes back kind of the way it has been. They continue to run as the standalone company. The steel market is quite weak. And so the likelihood that somebody else would come in and offer the same amount of money as Nippon Steel seems unlikely in this kind of a market. So it's not really clear if there is a Plan B in terms of a buyer. US Steel has basically said if this deal doesn't go through, we will continue to implement that strategy, which is basically closing down steel production at these older, higher cost plants and transferring production to newer, lower cost mills elsewhere in the country.

[Alex Osola]

That was Wall Street Journal reporter Bob Tita. In US Markets, stocks charged higher today with major indexes shaking off a days long losing streak. Nasdaq led today's gains up about 1.8%. The S&P 500's about 1.3% gain was its best one day performance since November 6th. And the Dow rose just shy of 1%. In other news, the auto industry is expected to report a small increase in U.S. vehicle sales for 2024. Forecasters estimate about 16 million new vehicles were sold in the U.S. in 2024, a gain of about 3% from the prior year. The inventory shortage that had plagued the US car market for years eased in 2024, according to the research firm JD Power. A robust holiday selling season helped boost numbers, with December up about 7% for 2025, analysts see another small rise in car sales but also some potential trouble spots. And U.S. manufacturing Activity contracted again in December, though only at a marginal pace as demand showed signs of improvement. That's according to the Purchasing Managers Index from the Institute for Supply Management. This was the ninth straight month of contraction, with manufacturing dragged down by continued weakness in employment and backlogs of orders. 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'll have a conversation courtesy of WSJ's take on the Week podcast about last year's winners and losers in the stock market and what investors can expect in the year ahead. And we'll be back with our regular show on Monday morning. Today's show was produced by Pierre Bienname and Anthony Banci, with supervising producer Michael Kosmides. Michael Lavalle wrote our theme music, Aisha Al Muslim is our development producer, Scott Salloway and Chris Zinsley are our deputy editors. And Falana Patterson is the Wall Street Journal's head of news audio. I'm Alex Zosola. Thanks for listening.