WSJ What’s News: U.S. Stocks Fall as Trump Renews Trade Tensions
Release Date: July 7, 2025
Host: Alex Osola
Guest Speakers: Michael Gordon (National Security Correspondent), Peter Grant (Real Estate Reporter), Hayley Zimmerman (Industry Reporter)
1. Devastating Flash Floods in Texas
The episode opens with an urgent report on the severe flash floods ravaging Texas. As of the report, the disaster has claimed at least 90 lives, including 27 girls and counselors from Camp Mystic, a summer camp located along the Guadalupe River in the state's Hill Country. The camp's longtime director is also feared dead. Rescue operations are ongoing, though efforts have been hampered by continuous heavy rainfall.
Alex Osola highlights the grim situation:
"Search and rescue operations have continued across the region today, with an unknown number of people still missing. Bad weather has impeded some of those efforts over the past few days, and today residents are bracing for even more heavy rains" (00:48).
The National Weather Service has extended flood warnings, anticipating up to 10 inches of rain by evening. In response to the disaster, White House Press Secretary Caroline Levitt announced that President Trump will visit Texas later this week to assess the damage. Levitt vehemently defended the administration's response, countering claims that federal service cuts hindered rescue efforts:
"Blaming President Trump for these floods is a depraved lie and it serves no purpose during this time of national mourning. Here are the facts. In the lead up to this tragic natural disaster, the National Weather Service did its job" (02:00).
2. Renewed Trade Tensions Impact U.S. Markets
In a significant development, President Trump has decided to extend the pause on reciprocal tariffs until August 1, following his announcement on his Truth Social platform about potentially reimposing tariffs ranging from 25% to 40% on countries including Japan and South Korea. Levitt confirmed that approximately 12 more nations would receive similar tariff threats, which will also be communicated via Truth Social.
This escalation in trade tensions has had a tangible impact on the U.S. stock market:
"US Stocks fell today after President Trump's tariff announcements reignited trade tensions. The S&P 500 was down about 0.8%, while the Dow and the Nasdaq both dropped about 0.9%" (02:22).
3. Saudi Investment in Manhattan’s Real Estate
A notable story covered by WSJ reporter Peter Grant reveals that Saudi Arabia's government fund is acquiring a two-thirds stake in a site designated for a new skyscraper in Manhattan, located just one block from Central Park. The total investment, including development costs, is projected to exceed $1 billion, with the Saudi fund currently contributing $200 million.
Peter Grant explains the significance of this investment:
"Saldians in recent years have been trying to diversify as much as possible in their types of investments, and real estate has been one of the big areas of diversification. This is globally. New York is one of the most attractive markets in the US. So naturally the Saudis will be interested in New York" (04:40).
He further discusses the resilience of New York's real estate market post-pandemic, noting a strong recovery in tourism, apartment rents, and particularly the office sector, driven by the financial services industry’s return to in-office operations.
4. Trump and Netanyahu’s Strategic Middle East Meeting
A significant portion of the episode delves into the upcoming meeting between President Trump and Israeli Prime Minister Benjamin Netanyahu. Hosted at the White House, this meeting is pivotal for regional diplomacy, especially following recent military engagements involving Israel, the U.S., and Iran.
Michael Gordon outlines the primary objectives:
"The big prize that both Israel and the US are seeking is normalization of relations between Israel and Saudi Arabia. During President Trump's first term, there were the Abraham Accords, which led to normalization between the UAE and Israel, Bahrain and Israel. But the Saudi Kingdom is really the big prize that everyone is seeking" (07:03).
The discussions are expected to cover:
- Normalization with Saudi Arabia: A strategic goal that involves complex negotiations and preconditions, including resolving conflicts in Gaza and addressing Palestinian statehood aspirations.
- Gaza Ceasefire: Efforts to establish a temporary, potentially permanent, ceasefire amid ongoing tensions.
- Iran's Influence: Balancing diplomatic relations with Iran, especially in light of recent military strikes that have altered the regional power dynamics.
Gordon emphasizes the challenges ahead:
"Are we just going to have another temporary ceasefire in Gaza that will be followed by more fighting, some talks with Iran that are not likely to be productive, or is there going to be a more sweeping architecture put into place that would transform the region with a permanent settlement in Gaza, some sort of understanding with Iran, a movement toward Israeli Saudi normalization, and something for the Palestinians?" (09:31).
5. Additional Global Developments
Beyond the primary stories, the podcast touches on several other international events:
-
Houthi Attacks in the Red Sea: Yemen's Houthi rebels attacked a ship in the Red Sea, leading to its abandonment. This marks the first such incident since President Trump declared a truce in May. The Houthis claim their actions support Palestinians in Gaza, citing violations by the ship’s company regarding entry bans to occupied Palestinian ports. In retaliation, Israel conducted airstrikes on Yemen, with officials noting the attacks were planned in advance.
-
Death of Russia’s Former Transport Minister: Roman Staravoit was found dead under suspicious circumstances shortly after being dismissed by President Vladimir Putin. Authorities suspect suicide, but the incident highlights the volatility within Russian high-level politics.
6. Beer Industry Trends: Michelob Ultra’s Rise Amidst Declines
In a lighter yet impactful segment, WSJ reporter Hayley Zimmerman analyzes the beer industry's current landscape. Despite overall sales declines for major brands like Modelo, Bud Light, Coors Light, and Miller Lite, Michelob Ultra is experiencing growth.
Key factors contributing to Michelob Ultra's success include:
- Consistent Branding: Since its launch in 2002, Michelob Ultra has targeted health-conscious consumers with a focus on sports and fitness (11:28).
- Product Alignment: As younger demographics shift towards canned cocktails and non-alcoholic options, Michelob Ultra's low calorie, low carb, and low alcohol by volume profile aligns well with current consumer preferences.
- Competitor Challenges: Issues such as Bud Light's enduring impact from a previous boycott and Modelo's recent struggles due to decreased Hispanic consumer spending have opened pathways for Michelob Ultra to capture greater market share.
Zimmerman remarks:
"Michelob Ultra, which is this low calorie, low carb, low alcohol by volume light beer, is suddenly meeting the moment" (11:28).
Conclusion
This episode of WSJ What’s News provides a comprehensive overview of pressing issues ranging from natural disasters and international trade tensions to significant real estate investments and geopolitical diplomacy. Additionally, it offers insightful analysis into industry-specific trends, reflecting the diverse scope of news that influences global and financial markets.
Produced by Pierre Bienname with supervising producer Michael Cosmides. For more updates, tune in to WSJ What’s News daily.