Trump Ejects National Security Adviser Mike Waltz

Summary

WSJ What’s News: "Trump Ejects National Security Adviser Mike Waltz"

Release Date: May 1, 2025
Host: The Wall Street Journal
Description: What's News delivers the day's most significant stories from business, finance, global events, and politics that influence markets. This episode dives deep into President Trump's decision to replace National Security Adviser Mike Waltz, among other pivotal developments.

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1. Presidential Shake-Up: Mike Waltz Out as National Security Adviser

Timestamp: 00:33 – 04:00

The episode opens with the breaking news that President Trump has dismissed National Security Adviser Mike Waltz, marking the first high-profile departure from his administration in the second term.

• Pierre Bienna May (00:33): "National Security Advisor Mike Waltz is out, making him the first top official to lose his job in Trump's second term."

• Meredith McGraw (02:03): "It's certainly a serious game of musical chairs over here at the White House... Elise Stefanik until she was asked to come back to her role as a member of Congress because of the tight margins there in the House."

The decision comes after reports that Waltz added a journalist to a sensitive Signal group chat discussing a bombing operation against Houthi rebels in Yemen. Trump announced Waltz's reassignment to U.S. Ambassador to the United Nations via social media, signaling a strategic repositioning within his administration.

• Pierre Bienna May (02:36): "President Trump is replacing National Security Adviser Mike Waltz... Secretary of State Marco Rubio will step in as interim national security advisor."

Meredith McGraw (03:28): "Trump is really placing a lot of responsibility in Marco Rubio, and that signals to us not only how much Trump puts his respect and trust in Rubio and his administration and carrying out his foreign policy..."

This reshuffle underscores Trump's trust in Rubio, who now juggles multiple roles including acting USAID administrator and acting archivist, indicating an intensified focus on foreign policy execution.

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2. Legal Setbacks: Alien Enemies Act Ruling Against Trump

Timestamp: 04:00 – 05:20

A federal judge in Texas ruled President Trump's use of the Alien Enemies Act to detain and deport alleged members of a foreign gang unconstitutional.

• Pierre Bienna May (04:00): "A federal judge in Texas has ruled President Trump's use of the Alien Enemies act to detain and deport alleged members of a foreign gang unlawful... It's the first direct ruling against Trump's use of the Alien Enemies Act."

The judge highlighted that the government cannot detain individuals based solely on the 18th-century law, although other immigration laws remain applicable. The White House has yet to comment, reflecting cautious discretion ahead of the upcoming jobs report.

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3. Economic Indicators: Unemployment and Market Resilience

Timestamp: 05:20 – 07:30

The report touches on rising unemployment claims and their potential impact on the economy.

• Pierre Bienna May (04:58): "Weekly filings for new unemployment benefits hit the highest level since February. In the last full week of April, 241,000 Americans sought jobless benefits..."

Despite the increase, analysts remain unconcerned as the rise is not drastic enough to trigger immediate alarm, especially given past fluctuations.

Market Performance:

Strong earnings from major tech companies like Microsoft and Meta Platforms uplifted the stock market, showcasing the durability of the "Magnificent Seven" tech giants amid tariff uncertainties.

• Pierre Bienna May (05:55): "US Stocks rallied, led by the NASDAQ composite, which gained roughly 1.5%. The Dow moved up 0.2%, and the S&P 500 gained just over 0.6%."

Notable Earnings:

• Amazon: Reported a 9% revenue growth to over $155 billion and profits exceeding $17 billion, surpassing Wall Street expectations despite new tariffs on Chinese imports.

  • Pierre Bienna May (06:00): "Amazon said its revenue grew by 9% in its first quarter to more than $155 billion, while its profit was over $17 billion."

• Apple: Achieved its highest March quarter revenue in over two years with a 5% increase to $95 billion, driven by accelerated smartphone and device purchases ahead of upcoming U.S. tariffs.

  • Pierre Bienna May (06:10): "The company said sales rose 5% to $95 billion ahead of analyst expectations."

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4. Presidential Fleet Update: Interim Air Force One Secured

Timestamp: 07:30 – 09:40

President Trump accelerates efforts to secure a new presidential aircraft, dissatisfied with Boeing's delays in producing the new Air Force One jets.

• Pierre Bienna May (06:47): "President Trump is moving to refurbish a Qatari luxury aircraft... aiming to have the plane available for use by this fall."

• Andrew Tangle (07:30): "Producing the Air Force One presidential jets has been a privilege and honor and point of pride for Boeing... It might not prove as capable as the current vehicles."

Due to Boeing's ongoing delays and budget overruns in the new Air Force One project, the administration has commissioned L3Harris to retrofit a Boeing 747, aiming for operational readiness by year-end. This move reflects Boeing's strained relationship with the administration and potential reputational risks.

• Andrew Tangle (08:28): "If Boeing were to lose the contract, it would be a blow to Boeing's reputation."

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5. Corporate Leadership: CEO Turnover and Work-Life Balance

Timestamp: 09:40 – 10:55

The episode highlights a significant trend of CEO departures and the shifting attitudes of emerging leaders towards work-life balance.

• Pierre Bienna May (09:40): "Chief executives are leaving their posts at a record pace this year... Over 2,200 CEOs bid farewell last year and more than 370 public company chiefs exited..."

Calum Borchers (10:13): "Some are dialing back their professional ambitions a little bit in the name of work-life balance."

Illustrating this trend, WSJ columnist Calum Borchers shares the story of Ryan Byer, a rising financial manager who chose to leave his principal position to focus on family life, reflecting broader generational shifts in career priorities.

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6. Corporate Scandal: Kohl's CEO Dismissed

Timestamp: 10:55

The episode concludes with news of Ashley Buchanan's ousting as CEO of Kohl's following a board investigation that uncovered unethical business dealings.

• Pierre Bienna May (10:55): "Kohl's has fired its CEO, Ashley Buchanan, after a board investigation discovered he had instructed the company to enter into a highly unusual business deal involving a woman with whom he has had a romantic relationship."

This scandal underscores the increasing scrutiny on corporate governance and ethical standards within major retail companies.

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Conclusion

The May 1, 2025 episode of WSJ What’s News provides a comprehensive overview of significant political reshuffles, legal challenges faced by the Trump administration, robust economic indicators amidst rising unemployment claims, strategic maneuvers in presidential assets, and notable trends in corporate leadership dynamics. Through expert insights and timely reporting, the episode captures the multifaceted events shaping the current socio-economic and political landscape.

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For a deeper dive into these stories and more, tune into the full episode of WSJ What’s News.

Transcript

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[Pierre Bienna May]

National Security Advisor Mike Waltz is out, making him the first top official to lose his job in Trump's second term.

[Meredith McGraw]

Waltz had been seen as on the out in the West Wing. At the same time, the president's sensitive to the idea that he's given a scalp to the press over the Signal episode.

[Pierre Bienna May]

Plus, President Trump decides to refurbish a Qatari airplane, frustrated by Boeing's delays in delivering a new Air Force One. And a federal judge rules that the president's use of the Alien Enemies act to allow deportations is unlawful. It's Thursday, May 1st. I'm Pierre Bienna May for the Wall Street Journal, filling in for Alex Osola. This is the PM edition of what's News, the top headlines and business stories that moved the world today. President Trump is replacing National Security Adviser Mike Waltz, making him the first top official to lose his job in Trump's second term. Trump announced on social media that Waltz would be nominated as U.S. ambassador to the United Nations. He added that Secretary of State Marco Rubio will step in as interim national security advisor. The decision follows a report that Waltz added a journalist to a sensitive group chat on the non government messaging app Signal roughly a month ago in which advisors discussed a bombing operation on Houthi rebels in Yemen. Meredith McGraw covers the White House and she joins me from there. Meredith, is this a promotion or what for Waltz?

[Meredith McGraw]

No, I wouldn't see it as a promotion, but it's certainly a serious game of musical chairs over here at the White House. Just after we were hearing rumblings the National Security Advisor, Mike Waltz, was going to be ousted, President Trump announced on Truth Social that he was actually just being moved into an empty seat. And that would be the UN Ambassador that was going to be held by Elise Stefanik until she was asked to come back to her role as a member of Congress because of the tight margins there in the House.

[Pierre Bienna May]

And with Marco Rubio, the Secretary of State, as interim national security adviser, what changes is he expected to bring, if any?

[Meredith McGraw]

Well, this is another hat that Secretary of State Marco Rubio is going to have to wear. There was a tweet. I can't take credit for it, but just added up all of the different roles that he's now been appointed to. And in addition to Secretary State and now National Security Advisor, he's the acting USAID admin. He's also the acting archivist. So Trump is really placing a lot of responsibility in Marco Rubio, and that signals to us not only how much Trump puts his respect and trust in Rubio and his administration and carrying out his foreign policy, but also how he's going to at least approach the NSA role for now.

[Pierre Bienna May]

And what message is the White House sending with this reshuffle in staff?

[Meredith McGraw]

Waltz had been seen as on the outs in the West Wing and hadn't been as actively involved with some of the major foreign policy negotiations that are going on right now. You've seen Steve Witkoff has been traveling the world doing a lot of these big negotiations and deals. At the same time, the president's sensitive to the idea that he's giving a scalp to the press over the signal episode.

[Pierre Bienna May]

That was Wall Street Journal reporter Meredith McGraw. Meredith, thank you.

[Meredith McGraw]

Thanks.

[Pierre Bienna May]

A federal judge in Texas has ruled President Trump's use of the Alien Enemies act to detain and deport alleged members of a foreign gang unlawful. The judge, who was nominated to the bench by Trump during his first term, ruled the government can't detain the plaintiffs solely on the basis of the 18th century law. The order didn't bar officials from detaining or deporting people under other relevant immigration laws, the judge noted. It's the first direct ruling against Trump's use of the Alien Enemies Act. The White House didn't immediately return a request for comment ahead of tomorrow's jobs report, a small cautionary sign. Weekly filings for new unemployment benefits hit the highest level since February. In the last full week of April, 241,000Americans sought jobless benefits, well more than analysts were expecting. Still, the rise wasn't such a big jump that economists will be sounding the alarm just yet. Over the past year, there have been bigger increases that quickly reversed. Yesterday's better than expected earnings from Microsoft and Meta platforms boosted markets, reassuring investors of the relative resilience of the Magnificent Seven tech giants in the face of tariff uncertainty. US Stocks rallied, led by the NASDAQ composite, which gained roughly 1.5%. The Dow moved up 0.2%, and the S&P 500 gained just over 0.6%. Speaking of the Magnificent Seven, Amazon reported strong quarterly earnings that weren't affected by new tariffs on Chinese imports. The tech giant topped Wall street projections. Amazon said its revenue grew by 9% in its first quarter to more than $155 billion, while its profit was over $17 billion. And Apple reported the highest March quarter revenue it's seen in more than two years, as people moved quickly to buy smartphones and other devices before new U.S. tariffs were announced in April. The company said sales rose 5% to $95 billion ahead of analyst expectations. Coming up, President Trump is done waiting for Boeing to deliver a new Air Force One. He commissioned a smaller defense contractor to ready an interim presidential plane by the end of the year. That's after the break.

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[Pierre Bienna May]

President Trump wants a new Air Force One, and in the short term he's moving to refurbish a Qatari luxury aircraft. In order to get it, Trump wants to have the plane available for use as early as this fall. The US government has commissioned L3Harris to retrofit the Boeing 747 with specialized systems, though it might not prove as capable as the current vehicles. This as Boeing continues work on a pair of Air Force One replacement jets that may not be delivered until around 2035. The project is also billions of dollars over budget after a series of supplier engineering and manufacturing setbacks. So what does this project mean for Boeing? Andrew Tangle covers aviation for the Wall Street Journal, and he joins me now. Andrew, how is Boeing looking at this development?

[Andrew Tangle]

This is symbolic in a ways of Boeing's problems with Air Force One replacement project and its other manufacturing and engineering problems in recent years. Boeing didn't comment for the article, but producing the Air Force One presidential jets has been a privilege and honor and point of pride for Boeing. And Trump has been so frustrated with the company's inability to get the planes that he did the deal for in his last term in office that he has tasked a different company with finishing essentially an interim Air Force One jet to bridge the gap between the current aging Air Force One jets and the newer ones that Boeing is still plugging away on and will be done at some point in the years down the road, Maybe after Trump leaves office, could.

[Pierre Bienna May]

Boeing see its Air Force One contracts canceled? And how big of a blow would that be for the company that was.

[Andrew Tangle]

Under consideration, at least during the previous administration? It's unclear what the status of the Boeing contract is at this moment. Boeing, prior to Trump taking office the second time, informed the government that there were new delays that suggested the planes would not be delivered until 10 years away. TRUMP didn't like that news and has dispatched Elon Musk to speed up Boeing's project. And part of that work is involving reducing the requirements by the government to make it easier for Boeing to finish the planes. So how well Boeing can perform under what becomes of the new timeframe that the government and Boeing settle on it remains to be seen. But if Boeing were to lose the contract, it would be a blow to Boeing's reputation.

[Pierre Bienna May]

That was Wall Street Journal aviation reporter Andrew Tangle. Andrew, thank you.

[Andrew Tangle]

Thank you.

[Pierre Bienna May]

Chief executives are leaving their posts at a record pace this year, according to Challenger Gray and Christmas, which tracks executive departures among US businesses with at least 25 employees. Over 2,200 CEOs bid farewell last year and more than 370 public company chiefs exited roughly a quarter more than did in 2023. WSJ columnist Calum Borchers told our your Money Briefing podcast that some of the middle managers who would have once been ushered up the career ladder to take the place of exiting CEOs are instead stalling out or calling it quits themselves.

[Calum Borchers]

It's one thing for the CEO who's already done it to go retreat to the beach, right? But it's another thing for the potential success to go and do it early. But some are I met a financial manager in his 40s named Ryan Byer, for example. He's moved his family to Puerto Rico. He was a principal at a wealth management firm in the D.C. area. He's the type of rising star who could be in the leadership pipeline. But he took a buyout, left early. He's not retired. He's advising high net worth family offices. He says, look, I earned less than I used to, but I'm fine with that because I'm available for my kids, school pickups and drop offs. I never miss a baseball game. And we're seeing more of these millennial and younger Gen Xers dial back their professional ambitions a little bit in the name of work life balance.

[Pierre Bienna May]

You can listen to the full story on tomorrow's episode of youf Money Briefing. And Kohl's has fired its CEO, Ashley Buchanan, after a board investigation discovered he had instructed the company to enter into a highly unusual business deal involving a woman with whom he has had a romantic relationship. That's according to people familiar with the situation. According to a regulatory filing, Buchanan caused the retailer to enter into a multi million dollar consulting agreement with a woman who was part of the consulting team. Buchanan declined to comment. And that's what's news for this Thursday afternoon. Today's show was produced by Anthony Banci with supervising producer Michael Cosmides. I'm Pierre Bienname for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for.