Trump Says Putin Agrees to Talks to End Ukraine War

Summary

WSJ What’s News Episode Summary

Title: Trump Says Putin Agrees to Talks to End Ukraine War
Host/Author: The Wall Street Journal
Release Date: February 12, 2025

The February 12, 2025, episode of WSJ What’s News, hosted by Alex Osola, delves into significant developments shaping the global economic and political landscape. This comprehensive summary captures the episode's key discussions, insights, and conclusions, providing a detailed overview for those who haven't listened.

---

1. Inflation Trends and Economic Implications

Timestamp: [00:44] – [04:17]

The episode opens with a deep dive into the latest inflation data, revealing that consumer prices rose by 3% year-over-year in January, surpassing the December increase of 2.9%. This uptick has significant implications for the Federal Reserve’s monetary policy decisions.

Nancy Youssef elaborates on the factors driving this unexpected rise in inflation:

“What caused it to be a little hotter than people expected was not the housing and rent component. It was goods and services.”
[00:53]

Key contributors to the inflation surge include:

• Groceries: A notable 53% year-over-year increase in egg prices due to avian flu outbreaks affecting supply chains.
• Auto Costs: Rising auto insurance premiums and motor vehicle repair costs, driven by tariffs on imported auto parts, are contributing to higher consumer expenses.

Telis Demos (a writer for Hurt on the Street and co-host of WSJ's "Take on the Week" podcast) discusses the potential ramifications for investors:

“I think this really will complicate the picture for the Fed going forward. Will it still cut rates twice later this year? Maybe just once.”
[04:02]

Jerome Powell, Fed Chair, addressed the inflation data during his testimony:

“We've made great progress toward 2%. Last year, inflation was 2.6%. So great progress, but we're not quite there yet. So we want to keep policy restrictive for now.”
[03:47]

This commentary suggests a cautious approach from the Fed, potentially altering previously anticipated interest rate cuts.

---

2. Business Developments

Timestamp: [04:27] – [05:50]

The episode transitions to notable business news impacting the market:

• Chevron’s Workforce Reduction: Chevron announced plans to cut up to 20% of its workforce, equating to approximately 8,000 jobs, aiming to save up to $3 billion by the end of the next year. This move aligns with President Trump's pledge to lower energy costs by leveraging U.S. fracking capabilities.

• NYSE Texas Launch: In response to the emerging Texas Stock Exchange, the New York Stock Exchange is set to inaugurate a fully electronic exchange based in Dallas, Texas. This strategic expansion aims to capture a growing market segment and compete directly with regional exchanges.

---

3. President Trump and Vladimir Putin’s Talks on Ukraine

Timestamp: [05:11] – [09:50]

A focal point of the episode is the groundbreaking dialogue between former President Donald Trump and Russian President Vladimir Putin aimed at negotiating an end to the Ukraine war.

Key Highlights:

• Official Communications: Trump announced via Truth Social that he and Putin agreed to visit each other's countries and initiate immediate talks to resolve the Ukraine conflict. This marks the first official acknowledgment of such discussions since Trump’s return to the White House.

• Secretary of Defense Pete Hegseth’s Insights:

  “He said that it was unrealistic to get Ukraine back to its 2014 borders… Ukraine's ascension to NATO membership was not in the cards.”
  [07:55]

  Hegseth further detailed U.S. conditions for a potential settlement, indicating openness to European and non-European forces' involvement but declining the presence of U.S. troops in Ukraine.

• Strategic Concessions: The U.S. stance involves significant concessions, such as:

  • Territorial Adjustments: Accepting deviations from Ukraine's 2014 borders, notably Crimea.
  • NATO Membership: Reiterating that Ukraine's entry into NATO will not be entertained in the settlement.

Nancy Youssef provides context on Ukraine's position:

“What Zelenskyy has said is that he's looking for sort of an enduring peace for Ukraine, not something that puts Ukraine in a more vulnerable position down the road.”
[08:35]

Implications for U.S.-Russia Relations: While the tone between the U.S. and Russia appears to be shifting towards negotiation, Pete Hegseth notes:

“We’re hearing sort of a different talk in terms of language, but I don't see any tangible changes on the battlefield.”
[09:06]

This suggests that despite diplomatic overtures, the actual dynamics on the ground remain unchanged.

---

4. U.S. Intelligence on Israel and Iran

Timestamp: [09:50] – [End]

The episode concludes with an exclusive report on a U.S. intelligence assessment indicating that Israel is contemplating significant strikes on Iranian nuclear sites within the year. Key points include:

• Administration’s Stance: The intelligence assessment, reportedly produced at the end of the Biden administration, suggests that Israel may seek support from the Trump administration for these strikes, viewing Trump as more amenable compared to Biden.

• National Security Reactions: Officials have refrained from commenting, maintaining the confidentiality typical of intelligence matters.

This revelation underscores the ongoing tensions in the Middle East and the intricate interplay between U.S. administrations and their foreign policy strategies.

---

Conclusion

The February 12, 2025, episode of WSJ What’s News provides a multifaceted exploration of critical issues ranging from economic indicators like inflation and Federal Reserve policies to geopolitical maneuvers involving the U.S., Russia, and Israel. Through insightful analysis and expert commentary, listeners gain a nuanced understanding of the factors influencing global markets and international relations.

Transcript

[Alex Osola]

This episode is brought to you by Global X. Since 2008, Global X ETFs has been committed to empowering investors with unexplored intelligence solutions. GlobalX specializes in exchange traded funds that offer exposure to the artificial intelligence ecosystem, including themes like data centers, robotics, semiconductors and cloud computing. To learn more about Global X's entire suite of ETFs from covered calls, fixed income, emerging markets and more, Visit global x etf's.com.

[Telis Demos]

President Trump sets the stage to negotiate an end to the war in Ukraine, but with a different stance from the U.S. plus, inflation comes in higher than anticipated. We dig into the data.

[Nancy Youssef]

What was notable about this report is that what caused it to be a little hotter than people expected was not the housing and rent component. It was goods and services.

[Telis Demos]

And House Republicans release a plan for making trillions of dollars in tax and spending cuts. ALEX It's Wednesday, February 12th. 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. Inflation rose more than economists expected in January. The Labor Department reported today that consumer prices last month rose 3% from a year earlier. That's up from the 2.9% increase in December. These numbers inform the Federal Reserve's decisions on future interest rate cuts. And President Trump campaigned on lowering prices. Tell us Demos, a writer for Hurt on the street and co host of WSJ's take on the Week podcast, joins me now. So tell us what is behind this uptick in inflation?

[Nancy Youssef]

Well, what's interesting about it is that, you know, inflation has been still running, I think hotter than many would like, but has been cooling. And one of the things that has sort of kept it from falling even more dramatically has been housing and rent. The cost of that has been high. What was notable about this report is that what caused it to be a little hotter than people expected was not the housing and rent component. It was goods and services. And a couple of things that are interesting. One is groceries, which two thirds of that was explained by the rise in the price of eggs. You have concerns about the spread of bird flu that are leading to, I mean, I don't mean to be gruesome, but like millions of dead chickens, that obviously impacts the egg supply. So their prices were up 53% year over year and 15% month over month, which was the fastest month over month gain in eggs since 2015. And then on top of that, you also had other things like the cost of car ownership.

[Telis Demos]

Yeah. Tell us more about that, was it auto insurance? Like, what was it about cars that was driving up prices?

[Nancy Youssef]

So auto insurance was growing, you know, 20% year over year through the middle of last year. That has slowed a little bit. The rate of increase had kept declining through December. That ended it went up. And then the cost of motor vehicle repair also accelerated a little bit. The tariff conversation really plays into that. So the fact that about 6 out of every 10 auto replacement parts in US shops are imported from Mexico, Canada and China, the potential targets of tariffs, that's according to the American Property Casualty Insurance Association. That means that those things becoming more expensive will increase what it costs to cover a car claim, and insurers will need to adjust for that at some point.

[Telis Demos]

Today, all the big US Stock indexes opened lower in response to this report, although they regained some ground by the end of the day. And the NASDAQ even closed ever so slightly higher. So, of course, the question everybody wants to know is what will this mean for the Fed? Well, Fed Chair Jerome Powell was in front of Congress today on his second day of testimony. Here's what he said about the new inflation data.

[Nancy Youssef]

We've had made great progress toward 2%. Last year, inflation was 2.6%. So great progress, but we're not quite there yet. So we want to keep policy restrictive for now.

[Telis Demos]

Tell us, does this change what investors could expect from the Fed?

[Nancy Youssef]

I think this really will complicate the picture for the Fed going forward. Will it still cut rates twice later this year? Maybe just once. Maybe rates come off the table at some point. These things have to be part of their thinking and investors thinking about what the Fed might do.

[Telis Demos]

That was Telis Demos, a writer for Hurt on the street and co host of WSJ's take on the Week podcast. Telis, thanks for being here.

[Nancy Youssef]

Thanks for having me.

[Telis Demos]

In business news, Chevron says it plans to cut its workforce by up to 20%. That's about 8,000 employees. It's part of an effort to reduce costs by up to $3 billion by the end of next year. The move follows President Trump's promise to cut energy costs by unleashing US Frackers. And the New York Stock Exchange plans to launch a fully electronic exchange based in Dallas called NYSE Texas. It's an apparent response to the upstart Texas Stock Exchange, which hopes to start listing companies next year. Coming up, what we know about how President Trump plans to end the war in Ukraine. That's after the break.

[Alex Osola]

I can say to my new Samsung Galaxy S25 Ultra, hey, find a keto friendly restaurant nearby and text it to Beth and Steve. And it does without me lifting a finger so I can get in more squats anywhere I can.

[Nancy Youssef]

1, 2, 3 will that be cash or credit? Credit.

[Alex Osola]

4 Galaxy S25 Ultra the AI companion that does the heavy lifting so you can do you get [e-mail] compatible with select apps. Requires Google Gemini account. Results may vary based on input. Check responses for accuracy.

[Telis Demos]

In Washington, House Republicans have released a blueprint for a budget bill that would cut taxes by up to four and a half trillion doll the bill would also reduce spending and provide money for border enforcement. It's headed for a budget committee vote tomorrow. The Senate has confirmed former Democratic Congresswoman Tulsi Gabbard as the director of National Intelligence. Lawmakers voted largely along party lines. Gabbard overcame skepticism from Republicans that she lacks the kind of experience in the intelligence bureaucracy that many of her predecessors had. AID Inspectors general who President Trump fired last month are suing the administration. Their lawsuit cites federal laws that say presidents have to give a 30 day notification to Congress and provide specific reasons to terminate an inspector general. By the way, we've got a new feature on the Wall Street Journal website where you can keep tabs on President Trump's moves to reshape the federal government. It's called the Trump Tracker. Check out the link in our show. Notes President Trump spoke with Russian leader Vladimir Putin today. It's the first official acknowledgment that the two leaders have spoken since Trump returned to the White House. In a statement on Truth Social, Trump said he and Putin have agreed to visit each other's countries and open immediate talks to end the war in Ukraine. WSJ national security correspondent Nancy Youssef joins me now. Nancy, give us some of the details about these potential talks. What's the administration saying?

[Pete Hegseth]

In the last few days, we've heard increased talks about ways to negotiate some sort of settlement. Ukraine has been suffering in terms of holding on the territory they have, and there's a feeling within the Trump administration that the US can't provide the same pace of weapons that it has in the past. And frankly, Trump has signaled that he wants to be the one that ends this war. And to that end, we saw two things happen today. One, Trump described a lengthy and highly productive phone call with Vladimir Putin in the bid to end the war in Ukraine. And Trump's newly named Secretary of Defense, Pete Hegseth, made his first trip to Europe and outline some of the conditions as the US Sees in terms of what it would and wouldn't accept in a possible negotiated settlement.

[Telis Demos]

Yeah. What exactly did we hear from Hegseth that was new today?

[Pete Hegseth]

He said that it was unrealistic to get Ukraine back to its 2014 borders. Remember, in 2014, Russia took the peninsula of Crimea. And he also said that Ukraine's ascension to NATO membership was not in the cards. And while he said that there wouldn't be U.S. troops on the ground in Ukraine, he did open it up to European and non European forces, but he didn't specify what that would look like and how they would come together. So in a weird way, he kind of showed all his cards right up front in terms of what the US Would accept in this deal.

[Telis Demos]

Okay, so the loss of the 2014 borders, not joining NATO. Would this be a big concession for Ukraine then?

[Pete Hegseth]

Yes and no. For Ukraine, the biggest concern is to not reach a negotiated settlement that in the end gives Russia more time to sort of reset and come back at them. What Zelenskyy has said is that he's looking for sort of an enduring peace for Ukraine, not something that sort of allows everybody to claim and win now, but ultimately puts Ukraine in a more vulnerable position down the road.

[Telis Demos]

I want to zoom out a little bit and talk more broadly about the relationship between Russia and the U.S. this seems like kind of a big shift in tone from the Biden administration.

[Pete Hegseth]

Yes and no. We saw earlier this week yesterday, Mark Fogel, an American teacher who was held in Russia, released and Trump and his comments signaled that because he was able to talk to Putin, he was able to reach a settlement, which is the kind of language we didn't hear from Biden. But there were also Americans released under the Biden administration who held in Russia. So we're hearing sort of a different talk in terms of language, but I don't see any tangible changes on the battlefield in Ukraine or in how these two countries, US And Russia, are interacting with each other on things like hostage cases.

[Telis Demos]

That was WSJ national security correspondent Nancy Youssef. Thank you, Nancy.

[Pete Hegseth]

Thank you.

[Telis Demos]

And finally, we're exclusively reporting on a U.S. intelligence assessment that found that Israel is considering significant strikes on Iranian nuclear sites this year. Officials familiar with the report told the Journal that it was produced in the final days of the Biden administration. The analysis concluded that Israel would push the Trump administration to back the strikes, viewing him as more likely to join an attack than now former President Joe Biden was. And fearing the window for halting Tehran's pursuit of a nuclear weapon was closing. That's according to two of the people familiar with the intelligence. Israeli Prime Minister Benjamin Netanyahu's office didn't respond to requests for comment, and Israel's military declined to comment. A spokeswoman for the Office of the Directorate of National Intelligence declined to comment, and a spokesman for the National Security Council said the administration doesn't comment on intelligence matters. Before we go, heads up, we've made a correction to yesterday's PM show. The Fed's preferred metric for inflation is the Personal Consumption Expenditures Price Index, or pce. We incorrectly said that it was Consumer Price Index, or cpi, and that's what's news for this Wednesday afternoon. Today's show was produced by Pierre Bienname and Anthony Banci, with supervising producer Tali Arbel and deputy editor Chris Zinsley. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.