Pakistan Is Developing Missile That Could Reach the U.S., White House Says

Summary

WSJ What’s News: "Pakistan Is Developing Missile That Could Reach the U.S., White House Says" - Detailed Summary

Release Date: December 23, 2024

The latest episode of WSJ What’s News, hosted by Alex Osola from The Wall Street Journal, dives deep into several pivotal stories shaping the global and economic landscape. This summary encapsulates the key discussions, insights, and conclusions from the episode, providing a comprehensive overview for those who haven't tuned in.

---

1. House Ethics Committee Releases Report on Matt Gaetz

Timestamp: [00:41] - [02:41]

The episode opens with a significant revelation from the House Ethics Committee, which has published a report detailing serious allegations against former Representative Matt Gaetz, a Republican from Florida. Gaetz, known for his abrupt resignation from Congress last month, was under consideration to be President Elect Donald Trump’s Attorney General.

Key Points:

• Misconduct Allegations: The report accuses Gaetz of regularly paying for sex, accepting impermissible gifts, and using or possessing cocaine and ecstasy while serving in Congress.
• Gaetz's Denial: Matt Gaetz vehemently denies all wrongdoing. His legal team has remained silent, not responding to requests for comment.
• Rarity of Release: Katie Stetschveric, a Wall Street Journal Congress reporter, highlights the unusual nature of releasing such a report post-Gaetz’s departure from Congress. She notes, "It's only happened a handful of times. The committee generally takes the position that once someone leaves Congress, their jurisdiction ends" ([01:47]).
• Committee Dynamics: The report's release was contentious, with a split 5-5 vote among Republicans and Democrats. Despite the division, the committee proceeded due to the severity of the allegations.
• Legal Action: Anticipating the report's release, Gaetz filed a lawsuit against the committee and its Republican chair. However, the committee moved forward with the publication before any legal proceedings could take place.

2. Economic Indicators and Market Movements

Timestamp: [02:41] - [04:15]

Shifting focus to the economy, Alex Osola discusses a concerning drop in American consumer confidence. This decline is based on the Conference Board's index, which gauges consumer beliefs about income, business conditions, and the job market.

Key Points:

• Consumer Confidence Dip: The index's drop approaches levels typically signaling a U.S. recession.
• Stock Market Response: Amidst these concerns, all three major stock indexes experienced gains, primarily driven by rising tech stocks.
  • Nasdaq: Increased by approximately 1%.
  • S&P 500: Rose by less than 1%.
  • Dow Jones: Marginally up after a day of stagnation.

Nordstrom's Strategic Move:

• Private Acquisition: The Nordstrom founding family, in collaboration with El Puerto de Liverpool from Mexico, has agreed to take the struggling retailer private in a $4 billion deal.
• Deal Details: The transaction encompasses all outstanding stock and debt, valuing the company at an enterprise value of approximately $6.25 billion. Closure is expected in the first half of the upcoming year, pending regulatory approval and a two-thirds shareholder majority.

3. Health Policy: Sugary Drinks and SNAP Eligibility

Timestamp: [04:15] - [10:37]

A significant discussion revolves around Robert F. Kennedy Jr., President Trump's nominee for the Health and Human Services Department. Kennedy proposes removing sugary beverages from federal assistance programs like SNAP (Supplemental Nutrition Assistance Program).

Insights from Laura Cooper:

• Lobbying Efforts: Laura Cooper, the Wall Street Journal’s beverage and tobacco reporter, explains that companies like Coca-Cola, Pepsi, and Keurig Dr. Pepper are intensifying their lobbying efforts to maintain the eligibility of sugary drinks in SNAP.
• Industry Response: These companies argue that they have diversified their product lines to include low and zero-calorie options, which account for 60% of non-alcoholic beverages sold in the U.S. by volume. They emphasize consumer choice, asserting that individuals should decide what to purchase regardless of income levels.
• Legislative Actions: Senator Marco Rubio and Representative Josh Burkin are spearheading legislation to counter Kennedy's proposal, with support anticipated from Trump and Kennedy himself. Cooper notes, "Having that level of support in the White House for something like this may make it more likely than in the past" ([04:15]).
• Alternative Solutions: The beverage industry suggests that instead of restricting SNAP purchases, Congress should fund programs that provide healthier food options to families.

4. US-Pakistan Relations and Missile Development

Timestamp: [07:08] - [10:37]

One of the episode's focal points is the White House’s assertion that Pakistan is developing a long-range ballistic missile capable of reaching the United States. This revelation marks a significant shift in US-Pakistan relations, traditionally viewed as strategic allies in South Asia.

Insights from National Security Correspondent Michael Gordon:

• Missile Capabilities: The missile in question could potentially allow Pakistan, a nuclear-armed nation with an estimated 170 nuclear weapons, to strike targets beyond South Asia, possibly the continental U.S.
• Diplomatic Efforts: The Biden administration has initiated a diplomatic campaign to persuade Pakistan to halt this missile program. However, the administration’s private, confidential channels have so far yielded no results, leading to the public disclosure of intelligence concerns ([07:52]).
• Strategic Shifts: Pakistan's increasing military support from China and strained relations with India contribute to this development. With the US having withdrawn support from Afghanistan, Pakistan’s strategic importance to the US has diminished, exacerbating tensions.
• Future Prospects: While current efforts are aimed at diplomacy, the administration warns that Pakistan's advancements could pose a long-term threat, necessitating continued vigilance.

5. Elon Musk’s Political Involvement and New Role

Timestamp: [10:46] - [12:25]

The episode concludes with a spotlight on Elon Musk, the world's richest man, and his growing involvement in US politics. Musk is set to take on a new role in President-elect Donald Trump’s administration as co-lead of the newly established Department of Government Efficiency.

Insights from Columnist Tim Higgins:

• Political Evolution: Musk, previously not known for political engagement, has become increasingly involved, particularly through his social media platform X (formerly Twitter), where he has adopted more conservative viewpoints.
• Financial Contributions: In 2024, Musk contributed approximately $250 million to pro-Trump political movements, marking a significant shift from his historical reluctance to heavily fund political causes.
• Campaign Involvement: Musk has actively participated in the Trump campaign, engaging with voters and advocating for Trump's policies, especially among young men ([11:07]).
• Future Implications: Higgins anticipates that Musk’s role in the Department of Government Efficiency will place him at the heart of US political strategy, though challenges in this new capacity remain to be seen.

---

Conclusion

This episode of WSJ What’s News provides a multifaceted look into critical issues ranging from political scandals and economic indicators to international relations and the intersection of technology and politics. Through in-depth reporting and expert insights, host Alex Osola ensures listeners are well-informed on the developments that influence markets and global dynamics.

Transcript

[Gemini AI]

This episode is brought to you by Google Gemini. With the Gemini app, you can talk live and have a real time conversation with an AI assistant. It's great for all kinds of things like if you want to practice for an upcoming interview, ask for advice on things to do in a new city, or brainstorm creative ideas. And by the way, this script was actually read by Gemini. Download the Gemini app for iOS and Android today. Must be 18 to use Gemini Live.

[Alex Osola]

A House committee has released an explosive report detail former Representative Matt Gaetz's alleged misconduct while in office, and the White House says Pakistan is developing a long range missile that could reach the U.S.

[Michael Gordon]

This is not an imminent threat. They're talking about a capability that Pakistan would be able to field in several years or perhaps a decade. But the administration is beginning a diplomatic campaign to persuade Pakistan to halt the program.

[Alex Osola]

Plus, beverage companies are lobbying Washington to keep sugary drinks eligible for food stamps. It's Monday, December 20. 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. The House Ethics Committee released a report detailing its investigation of sexual misconduct allegations against Matt Gaetz, a Florida Republican who abruptly resigned from Congress last month while under consideration to be President Elect Trump's attorney general. The report said that Gates regularly paid for sex, accepted impermissible gifts, and also used or possessed cocaine and ecstasy while he was in Congress. Gates denies wrongdoing and his lawyers didn't respond to a request for comment. Katie Stetschveric, who covers Congress for the Wall Street Journal, told me that it's rare for the House Ethics Committee to publish a report after a representative leaves Congress.

[Katie Stetschveric]

It's only happened a handful of times. The committee generally takes the position that once someone leaves Congress, their jurisdiction ends. But this was a very divisive issue for the members of the committee. There's five Republicans, five Democrats, and they were split on whether or not this should be released to the public. But they ultimately concluded that the nature of the misconduct that the congressional investigators uncovered explained why they were willing to continue talking about this report and its potential release since he left Congress last night. Some news outlets said that this report was coming out shortly, and Matt Gaetz raced to the courthouse and filed a lawsuit earlier this morning against the committee and its Republican chair, saying that it it shouldn't be released. And before a judge could even look at that lawsuit or hold a hearing, the committee decided to release its report.

[Alex Osola]

Confidence among American consumers dropped unexpectedly this month. That's according to an index that measures consumers near term confidence in income, business and the jobs market. Published by research group the Conference Board. The expectations index fell close to the level that often signals a recession in US Markets. All three major indexes climbed, buoyed by rising tech stocks. The Nasdaq climbed about 1%, while the S&P 500 rose less than 1%. And the Dow edged up after hovering around the flatline most of the day. In business news, the founding family of Nordstrom has reached a $4 billion deal to take the struggling retailer private. Several family members, along with Mexican retailer El Puerto de Liverpool, are acquiring all of Nordstrom's outstanding stock in a deal, including debt. The company said the deal had an enterprise value of six and a quarter billion dollars. The deal is expected to close in the first half of next year, subject to approval from regulators and two thirds of Nordstrom shareholders. Robert F. Kennedy, Jr. Donald Trump's pick to run the Health and Human Services Department, wants to take sugary drinks like soda from federal programs like food stamps, the so called Supplemental Nutrition Assistance Program, or snap. That could have big repercussions for the beverage industry. And companies like Coke, Pepsi and Keurig Dr. Pepper are pushing back. Laura Cooper, who covers beverage and tobacco companies for the Wall Street Journal, joins me now with more. Laura, are companies like Coke and Pepsi increasing their lobbying activity in Washington to try to continue to be a part of SNAP?

[Laura Cooper]

Yes. Coke, Pepsi, Dr. Pepper, others in the sugary beverage industry are stepping up their lobbying in D.C. lobbying groups associated with these companies have long been faced with the prospect of SN making sugary drinks ineligible. Also desserts, ice cream, things of that nature. So companies are very well versed in this fight. Last year, Senator Marco Rubio co sponsored legislation with Representative Josh Burkin of Oklahoma. Burkin said he actually plans to reintroduce that legislation as soon as next month and is counting on help from Trump and Robert F. Kennedy Jr. To help get that passed. If Kennedy is approved, this is likely to be top of mind for him. And what's really new here is he has the support of Trump in his campaign to do this. So having that level of support in the White House for something like this may make it more likely than in the past.

[Alex Osola]

As you mentioned, this is not the first time these companies have been faced with this prospect. What is their argument this time around for keeping these sugary drinks SNAP eligible?

[Laura Cooper]

The American Beverage association, which is an industry group which represents Coke, Pepsi Dr. Pepper, has said that the companies it represents are selling more low calorie or zero calorie drinks than ever before. And that includes things like seltzers, sports drinks, bottled waters, teas, and of course the zero in diet options of the sodas that we all know. They highlight that the sales of These low and zero calorie options represent 60% of non alcoholic package and fountain drinks sold in the US by volume. So a significant amount. The choice is also a big part of this that consumers, no matter their income, should have the opportunity to make the choices of what they want to eat when they go to the supermarket. In addition, some lobbyists have said that instead of being restrictive of what SNAP families can buy in the supermarket, Congress should fund programs for families to access healthier foods. Some of the Soto companies are also sponsors of those types of groups.

[Alex Osola]

That was Wall Street Journal reporter Laura Cooper. Thanks so much Laura.

[Laura Cooper]

Thanks so much for having me, Alex.

[Alex Osola]

Coming up, why the US Revealed intelligence about Pakistan's missile program. That's after the break.

[Dutch Bros]

This episode is brought to you by Dutch Bros. Get stoked for all the holly jolly vibes this season at Dutch Bros. Stay cozy with returning winter faves. Hazelnut truffle mocha and candy cane mocha. Plus the new Winter Shimmer Rebel energy drink blends up sweet cream and blue razz flavor with soft top and shimmer sprinks to keep those spirits energized all winter long. Download the Dutch Bros. App to find your nearest shop. Order ahead and start earning rewards.

[John Finer]

Weeks.

[Alex Osola]

Before the Biden administration leaves office, officials have said that Pakistan is developing a long range ballistic missile. It could eventually mean that Pakistan, which possesses nuclear weapons, would be able to strike the U.S. deputy National Security Adviser John Finer called Pakistan's actions, quote, an emerging threat to the United States. Allegations that Pakistan's Foreign Ministry spokeswoman said were, quote, unfounded, devoid of rationality and unhelpful for the overall relationship. Here to tell us more about what this means is Wall Street Journal national security correspondent Michael Gordon. So Michael, Pakistan was once considered a US Partner in South Asia. Now US Officials are saying its weapons program is a threat. What does the development of this missile say about the relationship between these two countries?

[Michael Gordon]

Well, the assertion was really quite striking. And what he's saying is that Pakistan, which has been getting military support from China, is developing a ballistic missile that is not merely aimed at its adversary India, but can go beyond South Asia and could even strike the continental United States. And that's of grave concern to the current administration because Pakistan has nuclear weapons, perhaps about 170 or so, according to an estimate by the Federation of American Scientists. Now, it's important to note that this is not an imminent threat. They're talking about a capability that Pakistan would be able to field in several years or perhaps a decade. But the administration is beginning a diplomatic campaign to persuade Pakistan to halt the program. So that's the import of this. What's going on is that since the US Left Afghanistan, Pakistan is no longer such an important strategic ally. It's no longer really in that category. And it's much closer to China. And Pakistan's unhappy about the American efforts to strengthen relationships with its arch enemy, India. And I think that's the subtext here.

[Alex Osola]

So it sounds like there's more of a rift then between the two countries than there used to be.

[Michael Gordon]

Yes, and it has to do a bit also with the current direction of Pakistan's authoritarian government. So there are tensions between the two sides. There are a number of steps. Pakistan has taken, according to the State Department, to extend the range of these missiles. They've acquired, or in the process of acquiring test equipment to test very large rocket motors. And an effort was made to broach these concerns quietly, privately, through confidential channels with the Pakistanis over past months. But what Feiner said publicly last week is those efforts went nowhere. So what they did is they went public with these assertions and also by declassifying intelligence about the program.

[Alex Osola]

A lot of this diplomatic work that you're talking about is being done, of course, by officials in the Biden administration. How are we expecting Donald Trump and his administration to approach the relationship with Pakistan when he takes office next month?

[Michael Gordon]

It's very hard to predict the course of the Trump administration since there's a spectrum of views about what the US Security priorities are. But you can expect the incoming administration to take a pretty hard line on the subject, particularly since it was President Trump during his first term who slashed security assistance to Pakistan. One would expect some continuity there.

[Alex Osola]

That was Wall Street Journal national security correspondent Michael Gordon. Thanks so much, Michael.

[Michael Gordon]

Thank you.

[Alex Osola]

Elon Musk has been everywhere this year in business and in politics. The world's richest man now has a new gig in 2025 in President elect Donald Trump's administration as co lead of a newly created Department of Government Efficien. Our columnist Tim Higgins spoke to our Tech News Briefing podcast about how Elon Musk has put himself firmly in the center of US Politics.

[Tim Higgins]

It has been a year of politics for Elon Musk, not somebody who we would have seen as being very political if we were talking, say, three or four years ago. We've seen this kind of evolution occur in real time and of course, on X, his social media platform, where he's become increasingly more political, taking on more conservative points of view, or at least what some people might see as conservative. Musk would say that he has remained centrist and that the world around him has moved. As the world's richest man, he has a lot of money and he spent some of that in 2024 helping Trump win the White House, roughly $250 million into pro Trump political movements. This was very unlike Elon in past years where he wasn't known as a very big giver to political causes. This injected him into the Trump campaign. He was out on the campaign trail, if you can imagine this, almost like he was a candidate moving around Pennsylvania trying to rally support for Trump, really speaking to young men who found him to be inspiring. So really the year of politics for Elon Musk.

[Alex Osola]

And you can hear more about Musk's approach to co leading the new Department of Government efficiency and the challenges that lie ahead in 2025 in tomorrow's tech News Briefing podcast. And that's what's news for this Monday afternoon. Today's show was produced by Pierre Bienname with supervising producer Michael Kosmides. I'm Alex Osola for the Wall Street Journal. Tomorrow we'll be back with just one show that will publish midday U.S. eastern time. Thanks for listening.