WSJ What’s News: Musk Admits ‘Difficulty’ Running Businesses Amid DOGE Work – March 11, 2025
Hosted by The Wall Street Journal
Introduction and Overview
In the March 11, 2025 episode of WSJ What’s News, host Luke Vargas delves into a spectrum of pressing global and economic issues. The episode navigates through mounting fears of a US recession, Elon Musk’s admission of challenges in managing his businesses alongside government responsibilities, and the evolving dynamics between the US and Ukraine amidst ongoing conflict with Russia. Additionally, the podcast touches upon significant international developments, including the arrest of former Philippine President Rodrigo Duterte and potential high-level US-China summits.
US Economic Concerns and Trade Policy
Rising Recession Fears:
The episode opens with a spotlight on the precarious state of the US economy. Following a significant downturn on Wall Street, fears of a recession have intensified. Economists are bearish, with JPMorgan Chase elevating the recession probability to 40% from an earlier 30%, while Goldman Sachs estimates a 20% chance, noting potential increases contingent on the Trump administration's steadfast policies.
Tariff Policies Under Scrutiny:
Alex Frangos, Journal Finance Editor for Europe, provides an in-depth analysis of the Trump administration's trade policies. He explains, “Trump is much more serious this time. His advisors around him are much more serious and perhaps a little bit more united in the idea that tariffs are more permanent” (02:51). This steadfast approach to tariffs, particularly the impending 25% tariffs on steel and aluminum, has unsettled markets. Frangos highlights investor concerns over prolonged trade disruptions, drawing parallels to past economic crises where halted trade exacerbated downturns.
Market Reactions and Future Outlook:
As tariffs loom, Gavin Bade from Washington reports that there is little indication of reprieve, signaling a potential market volatility. Alex Frangos notes, “Early in the morning, markets have stabilized a bit and stock futures are pointing up a little bit. But it's certainly not a rebound” (03:18). The uncertainty is palpable as investors await crucial data points, including inflation rates, job market indicators, and consumer sentiment, to gauge the economic trajectory.
Elon Musk’s Business Struggles Amid Government Roles
Balancing Multiple Roles:
A significant portion of the episode focuses on Elon Musk, CEO of Tesla, who has publicly acknowledged the difficulties in managing his businesses while serving in a governmental capacity. During an interview on Fox Business Network’s Kudlow, host Larry Kudlow presses Musk on this issue:
- Larry Kudlow: “I mean, what do you how are you running your other businesses?” (05:40)
- Elon Musk (via Alex Frangos): “With great difficulty.” (05:44)
This admission comes at a time when Tesla’s stock is experiencing a sharp decline, exacerbated by disappointing sales data and investor concerns over Musk’s divided attention between his business ventures and his governmental responsibilities.
Corporate Impacts: Tesla, Delta, and the Market
Tesla’s Declining Performance:
Tesla shares have plummeted, marking their worst performance since 2020. The stock is down over 45% for the year and has fallen more than 36% in the past month. UBS has downgraded its first-quarter delivery forecast for Tesla, citing a drop in European deliveries and a shift in consumer preferences away from the brand.
Airline Industry Struggles:
Delta Air Lines is also facing headwinds, with shares declining in after-hours trading following a lowered outlook. The airline attributes this to reduced consumer and corporate confidence, particularly in domestic travel. This trend is part of a broader downturn in the airline sector, where uncertainty in the economic outlook is dampening consumer willingness to plan vacations.
US-Ukraine Peace Talks in Saudi Arabia
High-Level Negotiations:
The podcast shifts focus to ongoing peace talks between US and Ukrainian officials in Saudi Arabia, aiming to reset relations and forge a pathway to peace with Russia. Michael Gordon, the Journal's correspondent attending the talks in Jeddah, reports a cautiously optimistic atmosphere:
- Michael Gordon: “The vibes are good. The proof will be in the pudding.” (07:26)
Key Discussions:
Ukraine is reportedly preparing to offer a ceasefire, potentially applying to airstrikes and naval activities. However, the US emphasizes that a ceasefire is just a preliminary step towards comprehensive peace negotiations. Security guarantees are a pivotal point of contention, with Ukraine seeking assurances to prevent future Russian aggression, invoking the annexation of Crimea in 2014 as a precedent.
Administration’s Stance:
Secretary Rubio, accompanied by National Security Advisor Mike Waltz, represents the Trump administration’s efforts to facilitate effective policy outcomes. Gordon notes, “Secretary Rubio is not here alone... they do speak for the administration” (09:32), although he cautions about President Trump's unpredictability and his stern rhetoric towards Ukrainian leadership.
International Developments: Duterte’s Arrest and US-China Summit
Rodrigo Duterte’s Arrest:
In a significant international development, former Philippine President Rodrigo Duterte has been arrested by Philippine authorities based on a warrant from the International Criminal Court (ICC) for alleged crimes against humanity during his anti-drug campaign. Human rights organizations report that over 12,000 individuals were killed in operations targeting suspected drug offenders, highlighting the severity of Duterte’s administration.
Potential US-China Summit:
The episode also touches on the possibility of a high-level summit between US President Trump and Chinese President Xi Jinping in June, aligning their birthdays on June 14th and 15th respectively. While plans remain unconfirmed, sources indicate that both the White House and Chinese officials are considering the summit as a strategic opportunity to negotiate and potentially ease the ongoing tariffs and technology restrictions imposed by the US.
Additionally, the podcast mentions a special series, “Building Influence,” which explores how China’s Belt and Road Initiative is being leveraged to challenge American global dominance. Listeners are encouraged to access all three episodes on the What’s News feed.
Conclusion
The March 11, 2025 episode of WSJ What’s News provides a comprehensive analysis of the current economic uncertainties in the US, the multifaceted challenges faced by Elon Musk in balancing his entrepreneurial and governmental roles, and the delicate negotiations aiming to resolve the US-Ukraine-Russia conflict. Coupled with significant international developments involving the ICC and potential US-China dialogues, the episode underscores a period of heightened global tension and economic volatility.
Additional sound in this episode was provided by Reuters. Production credits go to Daniel Bach and Kate Bullivant, with supervising producer Sandra Kilhoff.
Note: Timestamps are referenced in brackets (e.g., 02:51) for clarity and attribution purposes.