WSJ What’s News — "What a Weaker Dollar Means for Businesses and the World"

Date: January 28, 2026
Host: Luke Vargas (The Wall Street Journal)

Episode Overview

This episode centers on the implications of a weakening US dollar, both domestically and globally, analyzing how this trend affects American businesses, international relations, and markets. The episode also highlights major stories: the political and military maneuvers in the Middle East, notable corporate developments in AI and chipmaking, and the ongoing controversy and legal challenges surrounding aggressive federal immigration enforcement in Minnesota.

Key Discussion Points and Insights

1. The Weakening US Dollar: Market and Policy Impact

• Dollar’s Downturn:

  • The US dollar recently experienced its largest one-day decline since April’s global tariff turmoil, hitting a four-year low against other major currencies (EUR, GBP, CHF, AUD, CNY).

    [01:37] Alex Frankos (WSJ Finance Editor):
    "The dollar has been falling pretty much since Donald Trump came into office a year ago, but took another leg down in the beginning of this year... it’s now at a four year low against other major currencies..."

• Interest Rate Influence:

  • The Fed is expected to keep rates steady following previously enacted cuts, fueling further dollar softness.

    "When the Fed is cutting interest rates, that makes it slightly less attractive to own dollars. That's part of it..."

• Presidential Stance and Geopolitics:

  • President Trump expressed indifference regarding the weak dollar, signaling potential benefits for US exports and manufacturing — and encouraging market speculation.
  • Traditionally, presidents and Treasury officials avoid commenting on the dollar; Trump’s approach marks a notable departure from this "strong dollar" policy consensus.

    [02:34] Alex Frankos:
    "For the dollar to fall a little bit, that's actually stimulative for the economy. It makes our exports more attractive... and it flatters the bottom line. So that can actually be really good for stocks."

    "It's just very unusual for a president... to give any indication of what they care about the dollar."

• Geopolitical Drivers:

  • Tensions over Venezuela, Greenland, and new tariffs are cited as destabilizing factors contributing to currency volatility.

    [01:37] "We start the year with Venezuela, with Greenland, threats of new tariffs against Canada, Korea and all these things are very destabilizing."

2. AI & Semiconductor Stock Surge

• SoftBank and OpenAI:
  • SoftBank is reportedly in talks to add $30B to its OpenAI investment, seeking to further fuel growth for the ChatGPT-maker as it targets a $100B raise.

    [03:17] "Japan's SoftBank is in talks to invest a further $30 billion in OpenAI, adding to its more than 10% stake in the startup."

• Nvidia's Expansion in China:
  • Nvidia received approval to sell its H200 AI chips to Chinese firms (Alibaba, ByteDance), an initial batch valued at $10B, with expectations of continued approvals.
  • Suppliers like SK Hynix also reported record profits, while ASML’s chipmaking equipment orders are surging, both fueled by the global AI boom.

    "Nvidia's success has been a boon for suppliers like memory chip maker SK Hynix, which this morning posted record earnings for the final quarter of 2025..."

3. Middle East Geopolitics and US Isolation

• Refusal from Key Allies:
  • Saudi Arabia and the UAE have publicly refused to permit the use of their airspace/territory for potential US operations against Iran, reflecting growing regional skepticism about US defense guarantees.

    [04:49] Jared Malson (WSJ Correspondent):
    "It narrows the number of options that the US has, and it's also a sign that the US is potentially more isolated in the region if President Trump decides to launch a strike on Iran."

• Reassessment of US Security Ties:
  • The aftermath of strikes on Doha has caused regional powers to question US reliability as a security partner.

    [05:46]
    "Both the Iranian and the Israeli strikes on Doha in Qatar really frightened a lot of leaders in the region and led them to question whether they can rely on the US for their security."

  • The US has extended new security guarantees to Qatar, comparable to NATO protections, but Iran has warned multiple nations (Oman, UAE, Turkey, Qatar) that US bases could be targeted if Iran is attacked.

4. Domestic Turmoil: Minnesota Immigration Crackdown and Legal Battles

• Incident Involving Rep. Ilhan Omar:

  • Rep. Omar was assaulted with an unknown substance at a town hall; the act follows repeated political targeting by President Trump.

    [07:08] "Minnesota Democratic Representative Ilhan Omar was sprayed with an unknown substance at a town hall meeting in Minneapolis last night..."

  • Omar:

    "[Trump] had an unhealthy and disturbing obsession with her and the Somali community..."
    (paraphrased from [07:37])

• Alex Preddy Shooting & Federal Response:

  • Recent reports clarify both Border Patrol and CBP officers fired at protester Alex Preddy, whose killing intensified scrutiny of border enforcement.
  • Bipartisan calls for investigation; new federal deployments led by Trump’s "border czar" Tom Homan met with further controversy and legal challenges.

• Congressional and Legal Fallout:

  • Democrats and some Republicans demand DHS Secretary Kristi Noem’s resignation.

    [09:56] Sen. Chuck Schumer:
    "Kristi Noem is a liar. She's vicious. She's also incompetent. Donald Trump must fire her at once before another American is killed under her watch."

  • Minnesota sues federal government, alleging overreach and constitutional violations (First and Tenth Amendments).

• Expert Legal Analysis:

  • Journal Deputy Law Bureau Chief Laura Kasisto outlines rising constitutional tensions:
    • First Amendment: Right to protest vs. claims of threatening behavior by protesters.
    • Second Amendment: Debate over carrying firearms at protests, particularly when protesters may be licensed.

      [10:31] Laura Kasisto:
      "There are a lot of Second Amendment advocates... who would very strongly say that you should be able to carry a firearm at a protest as long as you're not using it to threaten people."

    • Fourth Amendment: Questions about ICE's authority in conducting stops and searches related to immigration status.
    • Tenth Amendment: State sovereignty vs. federal intervention; Minnesota claims the federal presence disrupts its governance.

      [12:00]
      "These protests are about ICE's presence in Minnesota... That then raises is then what the state has sort of said is this is interfering with our sort of sovereign authority as a state..."

Notable Quotes & Memorable Moments

• On Presidential Dollar Policy:

  [02:34] Alex Frankos:
  "It's just very unusual for a president... to give any indication of what they care about the dollar. For decades, the policy among Democrats and Republicans in office was we have a strong dollar policy and we don't comment on it."

• On US Isolation in the Middle East:

  [04:49] Jared Malson:
  "It narrows the number of options that the US has, and it's also a sign that the US is potentially more isolated in the region if President Trump decides to launch a strike on Iran."

• On Protester Rights and the Constitution:

  [10:31] Laura Kasisto:
  "What you can't do is threaten the life of law enforcement officers or put their lives in danger. And really... the question, right, is were they in any way threatening... or not?"

• On Second Amendment Tensions:

  [10:57] Laura Kasisto:
  "There are a lot of Second Amendment advocates... who would very strongly say that you should be able to carry a firearm at a protest as long as you're not using it to threaten people."

• On State vs. Federal Authority:

  [12:00] Laura Kasisto:
  "We're creating just a climate of fear in our state. And so you've seen them also sort of sue the federal government and say, we want you out of here."

Timestamps for Important Segments

• Dollar Weakness and Global Market Impact: [01:02] – [03:17]
• Tech/AI Corporate Developments (SoftBank, OpenAI, Nvidia): [03:17] – [04:49]
• Middle East Geopolitical Tension: [04:49] – [06:21]
• Federal Immigration Crackdown & Minnesota Legal Fight: [07:08] – [13:21]
• Expert Legal Analysis (Laura Kasisto): [10:31] – [13:29]

Episode Tone and Language

The episode maintains the Wall Street Journal’s hallmark tone: clear, authoritative, analytical, and direct, with a focus on primary sources and expert commentary. Quotes are concise, focusing on factual analysis and legal clarity.

Summary

This episode expertly weaves currency policy, global market moves, geopolitical tension, and domestic legal controversy into a snapshot of a pivotal news day, offering both straightforward reporting and nuanced expert analysis. Through the lens of the sliding dollar and mounting political turbulence, listeners are kept informed of both immediate developments and their broader implications for business and society.