WSJ What’s News – Episode Summary
Episode: The Final U.S.-Russia Nuclear Weapons Pact Expires
Date: February 5, 2026
Host: Luke Vargas
Key Guests: Michael Gordon (National Security Correspondent), David Uberti (Reporter), Alex Frankos (Finance Editor)
Overview of Episode Theme
This episode centers on the expiration of “New START,” the last remaining nuclear arms treaty between the United States and Russia, and the implications it could have for global security. It also covers major political debates in Washington over health care and Department of Homeland Security (DHS) funding, examines the continuing decline in American manufacturing despite decades of political focus, and discusses SpaceX’s push for fast-track inclusion in major stock indexes following its anticipated IPO.
Key Discussion Points and Insights
1. Expiration of the U.S.-Russia Nuclear Weapons Pact (New START)
- What Happened: The last treaty limiting the nuclear arsenals of the U.S. and Russia expired with no replacement in place, raising widespread fears of a renewed nuclear arms race.
- Michael Gordon (01:24): “This is a very significant milestone. Since the early 1970s, there has been one sort of strategic arms treaty or another which has constrained the Russian and American long range nuclear arsenals.”
- Why It Expired: The Trump administration did not respond to Russia’s offer for an informal extension or replacement.
- Michael Gordon (01:52): “President Trump’s been on both sides of the issue…More recently, the administration has signaled that they'll address this issue on their own timeline. So that's created a lot of uncertainty…”
- What the Treaty Did:
- Capped deployed strategic nuclear warheads at 1,550 per country.
- Provided for mutual inspections and data transparency.
- Played a role in ending the Cold War nuclear standoff.
- Luke Vargas (02:42): “The treaty had capped the number of deployed strategic nuclear warheads for each party to 1,550 and established some transparency…including data transfer notifications and on site inspections.”
- Russia’s Response: Russia issued a statement promising to act responsibly following the treaty’s expiry.
2. Stalled Senate Negotiations Over Health Care and DHS Funding
- Affordable Care Act Subsidies: Bipartisan Senate negotiations to renew expired subsidies failed, potentially leading to higher insurance premiums for 20 million Americans (02:42–03:15).
- DHS Funding Stalemate:
- Democrats want stricter oversight and independent investigations.
- Dick Durbin (03:47): “…Why shouldn’t investigations be done by an independent source for their own credibility?...These are the fundamentals of constitutional conduct.”
- Republicans demand an end to “sanctuary cities.”
- Josh Hawley (04:14): “This is about trying to hamstring the entire agency because that’s what Democrats want. That’s fine. I get it. That’s their position. That’s fine. I think it’s a good faith position. I just totally disagree…”
- Threat of DHS Shutdown: Senate Majority Leader John Thune might propose another stopgap bill if talks fail, but Democrats threaten to block it unless they see progress.
- Democrats want stricter oversight and independent investigations.
3. Trump Administration Moves to Strip Civil Service Protections (04:30)
- New Rule: 50,000 workers subject to reclassification, making it easier to dismiss senior career officials.
- Administration Argument: Prevent sabotage and better align workers with administration priorities.
- Opposition: Labor unions fear it’s a pretext to push out workers with conflicting political views.
4. Decline in U.S. Manufacturing Despite Policy Efforts
- Ongoing Job Losses: Approximately 200,000 manufacturing jobs lost since 2023.
- David Uberti (05:41): “…Since President Trump unveiled his so-called Liberation Day tariffs last April, there have been eight straight months of job declines in the manufacturing sector.”
- Tariffs’ Mixed Effects:
- Beneficial for U.S. aluminum and steel producers.
- Harmful for downstream manufacturers needing to import materials, raising their costs and compressing margins.
- David Uberti (06:51): “…If you own an aluminum or steel plant, you love tariffs on aluminum or steel…But if you’re the various types of suppliers…then your costs are going up, and that’s actually compressing your margins in many cases and making you scramble for supplies.”
- Case Studies:
- Insteel (N.C.): Forced to import steel due to lack of U.S.-made supply; growth hindered.
- NN Inc. (N.C.): Higher materials cost leads to less investment in U.S. manufacturing.
- Macro Challenges:
- Global Competition: China’s dominance in manufacturing and global trade barriers haven’t stemmed competition or import pressure.
- Jobless Growth: Companies automate and modernize, increasing output with fewer workers.
- David Uberti (08:24): “There is sort of a difference between manufacturing output and manufacturing employment…It’s probable that a lot of the companies that are making investments will do so…to be able to pump out more stuff with fewer people.”
- Insight: Even as policies focus on reviving manufacturing, the combination of global trade pressures and technological advances undermines the prospect of returning to previous employment highs.
5. SpaceX Pushes for Early Inclusion in Major Stock Indexes
- Context: Typically, companies wait months or a year post-IPO to enter indexes like the S&P 500 or Nasdaq 100.
- Recent Developments: Nasdaq is considering allowing especially large companies (such as SpaceX, OpenAI, Anthropic) immediate inclusion within 15 trading days.
- Alex Frankos (11:38): “The sooner you can get into these indexes, the sooner you have this wall of money coming at your stock…index funds, which a lot of our listeners are probably invested in, automatically buy whatever is in the index.”
- Why It Matters:
- Rapid index inclusion ensures steady stock demand and price stability during the post-IPO phase.
- Indexes wary because early inclusion can expose funds and investors to more nascent, riskier businesses.
- Alex Frankos (12:23): “Indexes have these rules for a reason…because they're concerned that they don't want something come in and then tank and then people be like, why did you put that in the index?”
6. Business Headlines Roundup (12:51–13:43)
- Maersk: Cutting 1,000 jobs, forecasts lower earnings.
- Shell: $3.5B share buyback ongoing despite weak prices.
- Baidu: Launches its first-ever $5B buyback.
- ArcelorMittal: Sees EU protection from Chinese competition as a market opportunity; shares up 3%.
Notable Quotes & Memorable Moments
- On the end of arms control:
- Michael Gordon (01:24): “This is a very significant milestone…There has been one sort of strategic arms treaty or another which has constrained the Russian and American long-range nuclear arsenals.”
- Luke Vargas (02:42): “The expiration of New START marks an end to the arms control that helped to bring an end to the Cold War.”
- On political gridlock:
- Dick Durbin (03:47): “Why shouldn’t investigations be done by an independent source for their own credibility?...These are the fundamentals of constitutional conduct.”
- Josh Hawley (04:14): “This is about trying to hamstring the entire agency because that’s what Democrats want…That’s fine. I just totally disagree with it and I’m not gonna help them do it.”
- On U.S. manufacturing’s decline:
- David Uberti (05:41): “…There have been eight straight months of job declines in the manufacturing sector.”
- David Uberti (08:24): “There is sort of a difference between manufacturing output and manufacturing employment…companies…are actually taking advantage of some…tax breaks for new investment…to be able to pump out more stuff with fewer people.”
- On SpaceX’s index push:
- Alex Frankos (11:38): “The sooner you can get into these indexes, the sooner you have this wall of money coming at your stock.”
- Alex Frankos (12:23): “Indexes have these rules for a reason…because they're concerned that they don't want something come in and then tank…”
Timestamps for Important Segments
- 00:30–02:42: Expiry of New START nuclear treaty and its global implications
- 03:15–04:30: Senate gridlock on ACA subsidies and DHS funding
- 04:30–05:41: Trump administration moves to reclassify civil service protections
- 05:41–09:55: Analysis of U.S. manufacturing’s decline – policy, tariffs, global competition, automation
- 10:57–12:51: SpaceX and IPO index inclusion debate
- 12:51–13:43: Business headlines (Maersk, Shell, Baidu, ArcelorMittal)
Conclusion
This episode delivers incisive coverage of the expiration of the U.S.-Russia New START treaty, mapping its strategic consequences while tying in the turbulence of domestic policy battles. It provides a ground-level and macroeconomic insight into why American manufacturing jobs keep vanishing, despite high-profile political attention and efforts. The segment on SpaceX highlights how Wall Street’s rules are being tested by high-profile, mega-cap IPOs. The discussion remains brisk, balanced, and tightly focused on the news that moves markets and policy debates.