Smugglers Tell Migrants to Rush to U.S. Before Trump Takes Office

Summary

Podcast Summary: WSJ What’s News – "Smugglers Tell Migrants to Rush to U.S. Before Trump Takes Office"

Introduction

In this episode of WSJ What’s News, hosted by Tracy Hunt from The Wall Street Journal, listeners are guided through the pressing headlines shaping the global landscape. The episode delves into significant developments in the U.S. stock market influenced by Federal Reserve policies and political appointments, as well as urgent movements in Latin America where smugglers are prompting migrants to expedite their journey to the U.S. border ahead of President-elect Donald Trump's inauguration.

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U.S. Market Reactions to Federal Reserve and Political Appointments

The episode opens with an overview of the U.S. financial markets experiencing declines. Tracy Hunt explains that U.S. stocks dipped following a robust retail sales report, which suggests economic strength and reduces the immediate need for lower borrowing costs. This financial downturn coincided with comments from Boston Fed President Susan Collins, who indicated uncertainty regarding a December rate cut.

Key Points:

• Stock Market Decline: The tech-heavy Nasdaq fell by 2.2%, the S&P 500 by 1.3%, and the Dow Jones Industrial Average dropped over 300 points (0.7%) (00:32).
• Federal Reserve Insights: Susan Collins mentioned that a December rate cut is "certainly on the table, but it's not a done deal," reflecting indecision on the part of the Federal Reserve regarding interest rates (00:32).

Impact of Robert F. Kennedy Jr.'s Nomination on Pharmaceutical Stocks

A significant portion of the episode focuses on the market's reaction to President-elect Trump's nomination of Robert F. Kennedy Jr. as the Secretary of Health and Human Services (HHS). This appointment has caused unease among pharmaceutical companies, leading to a notable decline in their stock prices.

Insights from David Wehner: Tracy Hunt interviews David Wehner, a healthcare columnist for The Wall Street Journal, to uncover why pharmaceutical firms are anxious about Kennedy's potential leadership.

• Kennedy's Skepticism: Wehner explains, "You have a person who has expressed deep skepticism about vaccines and the usages of drugs in general. And now that person's potentially going to be in charge of the Health and Human Services Department" (02:36).

• Concerns Over Policies: Kennedy's stance includes the possibility of "prohibiting pharma direct to consumer advertising" and efforts to "level the playing field for Americans on drug costs," which poses significant challenges for the pharmaceutical industry (02:36).

• Market Reactions: Wehner highlights that vaccine makers and companies specializing in obesity and diabetes treatments saw their stocks decline due to fears over Kennedy's critical views on vaccines and certain medications like GLP1 drugs (e.g., Mounjaro and Ozempic) (03:14, 03:54).

• Future Outlook: While acknowledging that drug companies still hold considerable influence in Congress and the administration, Wehner notes, "Investors are still watching very closely to see if he would get approved by the Senate" (03:54).

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Migration Dynamics and Smuggling Operations Ahead of Trump's Inauguration

Shifting focus to international affairs, the episode examines the actions of smugglers in Latin America who are encouraging migrants to expedite their journey to the U.S. border before Donald Trump's inauguration on January 20th. This movement is portrayed as a strategic push by smugglers ahead of potential policy shifts under the new administration.

Discussion with Santiago Perez: Tracy Hunt engages with Santiago Perez, the Deputy Editor for Latin America at The Wall Street Journal, to explore the motivations and implications of this push.

• Smugglers' Strategy: Perez elaborates that smugglers are using "social media groups and WhatsApp chat groups" to disseminate information and foster urgency among migrants to reach the U.S. border pre-inauguration (06:14).

• Potential Policy Changes: Migrants fear that Trump's promised "mass deportations" and stricter immigration policies will eliminate legal avenues for entry, such as the CBP1 appointment process for asylum seekers, reducing their chances of lawful entry and increasing the risk of immediate deportation (07:53, 08:01).

• Government Enforcement: Perez notes that immigration enforcement in Mexico has become more sophisticated, which may mitigate the risks of large-scale migration ("mass events") that attract media attention (07:06).

• Current Trends: While there is no immediate surge in migrant numbers at the U.S.-Mexico border, authorities remain vigilant about the potential for increased migration activity as the inauguration date approaches (06:56).

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Upcoming Features and Concluding Remarks

The episode briefly mentions the launch of a new WSJ podcast series, Tech News Briefing, which will feature in-depth conversations with leaders of prominent technology companies. Although not the central focus of this episode, it highlights the publication's commitment to providing comprehensive coverage on emerging tech trends and industry leadership.

Conclusion: Tracy Hunt wraps up the episode by outlining upcoming content, including the debut of Tech News Briefing, a weekly market wrap-up, and a Sunday deep dive into Trump's immigration policies. The episode emphasizes the interconnectedness of economic policies, political appointments, and international migration trends, providing listeners with a nuanced understanding of how these factors influence global and market dynamics.

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Notable Quotes:

• David Wehner on Pharmaceutical Concerns:

  "You have a person who has expressed deep skepticism about vaccines and the usages of drugs in general. And now that person's potentially going to be in charge of the Health and Human Services Department..." (02:36)

• Santiago Perez on Migrant Strategies:

  "Smugglers are urging migrants to try to get to the US border before Trump takes office on January 20th. ... it's essentially a business pitch from smugglers." (06:14)

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This comprehensive summary encapsulates the key discussions and insights presented in the episode, offering listeners a clear understanding of the financial, political, and social issues currently at play without needing to access the full podcast.

Transcript

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[Tracy Hunt]

US stocks fall after a Fed official said a December rate cut wasn't a done deal. And farmer stocks took a hit after President elect Trump picked Robert F. Kennedy, Jr. To head health and Human Services. Plus, smugglers in Latin America are encouraging migrants to rush to the US Border before Trump assumes office.

[Santiago Perez]

Migrants are in many ways sitting ducks for smugglers and the organized crime networks that control large parts of Mexico's territory these days. So it's extremely dangerous and risky, especially for families who travel with children.

[Tracy Hunt]

It's Friday, November 15th. I'm Tracy Hunt for the Wall Street Journal. This is the PM edition of what's the top headlines and business stories that move the world. US Stock and bond prices fell today following a solid retail sales report that could bolster the case that the economy is strong and may not need support in the form of lower borrowing cost. Separately, Boston Fed President Susan Collins said today in an interview that another rate cut in December is, quote, certainly on the table, but it's not a done deal, indicating it was too soon to say whether the central bank should cut interest rates at its meeting on December 17th and 18th. In US markets, major stock indexes fell, with the tech heavy Nasdaq falling 2.2%. The S&P 500 was down 1.3% and the Dow dropped more than 300 points, or 0.7%. Pharmaceutical stocks in the US and Europe are taking a big hit after President elect Trump nominated Robert F. Kennedy, Jr. To be the and Human Services secretary. David Wehner writes about healthcare for WSJ's heard on the street column, and he joins us now. So, David, why are pharmaceutical companies so nervous about Kennedy's possible appointment?

[David Wehner]

So this is absolutely the worst case scenario for them, right? I mean, you have a person who has expressed deep skepticism about vaccines and the usages of drugs in general. And now that person's potentially going to be in charge of the Health and Human Services Department, which would mean essentially he would get to oversee agencies like the Centers for Disease Control and Prevention, nih, National Institute of Health and the fda. Of course, he also raised the notion of prohibiting pharma direct to consumer advertising, which to be fair, is an anomaly here in the US and he's also talking about things like leveling the playing field for Americans on drug costs. I mean, this is scary stuff for pharma.

[Tracy Hunt]

Which companies would be most affected by Kennedy leading hhs?

[David Wehner]

So if you look at the stocks that were affected, and I mean, it's a volatile market today, vaccine makers, obesity and diabetes companies, they were all down. Kennedy has questioned the safety of vaccines in general. And he was critical of COVID 19 vaccines. Kennedy has insisted that he is an anti vaccine. Exactly. But investors and companies are wondering what he might do.

[Tracy Hunt]

And it's not just vaccines. Right. He's also been critical of obesity and diabetes. GLP1 drugs like Mounjaro and Ozempic by Eli Lilly in novo nordisk.

[David Wehner]

GLP1 drugs kind of intersect with two of his big ideas. One being that America has a food and health and obesity problem, which he's not wrong about. And the second, that drugs are not always the solution. And I think that's where obesity drug developers are a little bit concerned. It's fair to say drug companies have quite still a bit of sway in Congress and a variety of officials throughout the administration. So I think you're going to see a lot of pushback on some of his views. Investors are still watching very closely to see if he would get approved by the Senate. I think that's still something that's quite up in the air right now.

[Tracy Hunt]

That was our columnist David Wehner. Thank you so much, David.

[David Wehner]

Thank you so much, Tracy.

[Tracy Hunt]

And what questions do you have about Trump's campaign promises, how they may be implemented and what they mean for you? Send a voice memo to WNPodub or leave a voicemail with your name and location at 212-416-4328. We might use it on the show. And coming up, smugglers in Latin America are urging migrants to get to the US Before Trump's inauguration. That's after the break.

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[Tracy Hunt]

From the dense jungle connecting Panama and Colombia to the banks of the Rio Grande, human smugglers have been urging migrants to get into the US Before President elect Donald Trump takes office. Joining us now is Santiago Perez, our deputy editor for Latin America based in Mexico City. Hi, Santiago.

[Santiago Perez]

Hi, Tracy.

[Tracy Hunt]

So what are migrants worried will change once Trump is in office?

[Santiago Perez]

Well, essentially, they are concerned that there will be a full border shutdown and that there won't be any way to enter the US legally. There are social media groups and WhatsApp chat groups set up by smugglers and migrants. In these chat groups, they discuss the best possible ways to get to the border. They share tips. And in this case, smugglers are urging migrants to try to get to the US border before Trump takes office on January 20th. Of course, that's easier said than done, and it's essentially a business pitch from smugglers.

[Tracy Hunt]

And just to be clear, there's no evidence that a migration surge is materializing yet at the US Mexico border. But are there concerns that one is on the way?

[Santiago Perez]

There are concerns about it, for sure. Authorities in Guatemala have expressed concerns about it. Things have changed quite a lot over the past eight years since the first Trump administration. And the enforcement that we are seeing, especially immigration enforcement in Mexico, is now more sophisticated. And of course, the Mexican government has an incentive to prevent large mass events that sometimes attract a lot of media attention out of other communities, like Eagle Pass in Texas or large migrant caravans approaching the border. So that may offset some of the risks of a surge.

[Tracy Hunt]

Donald Trump has promised mass deportations of migrants. How does that play into migrants decisions?

[Santiago Perez]

The first stage within the whole analysis for migrants is related to whether you can get to the border and whether you will be able to get in or not. So, for example, if you apply for a CBP1 appointment, which is a legal pathway these days, if that's dismantled, you essentially have little or no chances to get into the US Legally by requesting asylum. So chances are that they will be immediately expelled back to Mexico. That's somewhat similar to what we saw during the pandemic days under a measure known as Title 42. So that may be a possibility now.

[Tracy Hunt]

Santiago Perez is the deputy editor for Latin America for the Wall Street Journal. Thank you so much, Santiago.

[Santiago Perez]

Thank you so much, Tracy.

[Tracy Hunt]

Tomorrow morning, we're starting a new series on our Tech News Briefing feed in bold names. Our columnists, Tim Higgins and Christopher Mims are digging into their contacts in interviewing leaders of the bold named companies featured in the pages of the Wall street and they're with us now. So hi Christopher.

[Tim Higgins]

Hello.

[Tracy Hunt]

And hi Tim.

[Christopher Mims]

Hello.

[Tracy Hunt]

So first off, why did you two want to make this show?

[Christopher Mims]

We talk to some of the world's most interesting people on a regular basis. And sometimes those conversations are really conversations. You know, we maybe get a quote in a story or a column and we just thought it would be really interesting for our listeners, for our readers to kind of go into what it's like to talk to some of these people on some of the day's most interesting topics, whether it's the arrival of artificial intelligence, the transition to electrification of the automobile, work from home issues, what it's like to be a founder, what it's like to scale a new company.

[Tim Higgins]

Tim summed it up. I think I also feel like what we excel at at the Wall Street Journal is asking fair questions that are tough. And a lot of folks who are at the top of today's companies might be used to, you know, some softball interviews. But we want to make sure that we ask people the hard questions that we think readers want to hear them answer.

[Tracy Hunt]

Who's going to be your first guest?

[Christopher Mims]

We have Peter Rawlinson, who is the chief executive of an electric car company called Lucid. Lucid is trying to become kind of the next hot EV maker out there. Its CEO was a key executive, a key engineer in the creation of Tesla.

[Tim Higgins]

Model S. Peter Rawlinson is especially timely because while he might not articulate it this way, he's kind of building the anti Tesla. One of the things we really wanted to hear from Peter was how he plans to survive because it's in some ways kind of a bloodbath for independent EV makers. And he gets a ton of money from the Saudi Arabia investment fund. But at some point or another his company has to start making a profit and investors want to know. So we put that to him directly.

[Tracy Hunt]

And what stories do you have planned next for the show?

[Tim Higgins]

I think big stories in tech these days are how the bold name leaders who show up in the pages of the Wall Street Journal are themselves becoming the story. And that's why I think it's more important than ever to hear from them directly.

[Christopher Mims]

We talk with JB Straubel, who was one of the co founders of Tesla and who now has his own company called Redwood Materials that's in battery recycling. And we talked with him just how you scale a new business in an industry that is changing and not even.

[Tim Higgins]

Really fully developed yet obviously artificial intelligence is hot right now. So we had some very practical nuts and bolts conversations with Marc Benioff, head of Salesforce, and Aaron Levy, head of Box, another enterprise software company. And they really just got down to basics. And I think that kind of practical knowledge is something that folks are looking for in the future. We're going to move on to the other big topics of the day. I mean, we could have a trade war soon, at which point everybody we have on is going to be talking to us about supply chains.

[Tracy Hunt]

Bold Name starts tomorrow on our Tech News Briefing podcast feed. Thanks so much, guys.

[Christopher Mims]

Thank you.

[Tim Higgins]

Thank you.

[Tracy Hunt]

And that's what's news for this week. As you just heard, our podcast Bold Names drops its first episode tomorrow where a Tesla pioneer explains to Tim Higgins and Christopher Mims why the cheap EV market sucks. That's on our Tech News Briefing feed. And after that, you can look out for our weekly markets wrap up, what's News in Markets? Then on Sunday, we'll be looking at whether Donald Trump can carry out his promise to deport as many as 20 million immigrants and how he could go about it. 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 Pierre Bienname and Anthony Banti, with supervising producer Michael Cosmides. Michael Lavalle wrote our theme music. Aisha Al Muslim is our development producer. Scott Salloway and Chris Zinsley are our deputy editors. And Philana Patterson is the Wall Street Journal's head of news audio. I'm Tracy Hunt. Thanks for listening.