Annie Minoff
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Hey, it's Jess. Annie Minoff, one of our senior producers, is going to be stepping in to do some hosting this summer while Ryan is out on leave. Enjoy. Every year, a ski resort nestled in the Swiss Alps hosts the world's biggest party for the rich and powerful. Some people call it the Magic Mountain. Most people know it better as Davos.
Hey, it's Jess. Annie Minoff, one of our senior producers, is going to be stepping in to do some hosting this summer while Ryan is out on leave. Enjoy. Every year, a ski resort nestled in the Swiss Alps hosts the world's biggest party for the rich and powerful. Some people call it the Magic Mountain. Most people know it better as Davos.
But as Shalini discovered, there was a lot more happening behind the scenes. She and our colleagues have been investigating allegations of sexism, racism, and harassment at the organization that runs Davos, an organization called the World Economic Forum.
But as Shalini discovered, there was a lot more happening behind the scenes. She and our colleagues have been investigating allegations of sexism, racism, and harassment at the organization that runs Davos, an organization called the World Economic Forum.
And now, after a fresh round of allegations, a major leadership shakeup is underway.
And now, after a fresh round of allegations, a major leadership shakeup is underway.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Wednesday, April 30th. Coming up on the show, the boardroom drama and leadership crisis, rocking Davos. The World Economic Forum, the nonprofit that runs the Davos Conference, has been around for more than half a century.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Wednesday, April 30th. Coming up on the show, the boardroom drama and leadership crisis, rocking Davos. The World Economic Forum, the nonprofit that runs the Davos Conference, has been around for more than half a century.
Today, it has over 800 employees and takes in hundreds of millions of dollars, much of it from partner companies that pay big bucks to attend Davos. But the organization started small.
Today, it has over 800 employees and takes in hundreds of millions of dollars, much of it from partner companies that pay big bucks to attend Davos. But the organization started small.
At the time, Klaus Schwab was a German engineer and economist, broad-shouldered with glasses and a dour expression.
At the time, Klaus Schwab was a German engineer and economist, broad-shouldered with glasses and a dour expression.
Schwab's time growing up in Europe after the war shaped his views on the power of global cooperation to rebuild economies. And that experience gave him a big idea.
Schwab's time growing up in Europe after the war shaped his views on the power of global cooperation to rebuild economies. And that experience gave him a big idea.
And so the Davos meeting was born. These days, it hosts 3,000 leaders from over 130 countries. And as Davos' importance increased, so too has Schwab's. Schwab is 87 now, and not exactly a household name. But his role at the top of the World Economic Forum has made him one of the best-connected people in the world, with a Rolodex that includes everyone from royals to rock stars.
And so the Davos meeting was born. These days, it hosts 3,000 leaders from over 130 countries. And as Davos' importance increased, so too has Schwab's. Schwab is 87 now, and not exactly a household name. But his role at the top of the World Economic Forum has made him one of the best-connected people in the world, with a Rolodex that includes everyone from royals to rock stars.
But as Schwab and his organization worked to shine a light on the world's problems, Shalini started hearing about problems within the forum itself.
But as Schwab and his organization worked to shine a light on the world's problems, Shalini started hearing about problems within the forum itself.
One former employee, a Black woman, described an incident in which a boss, brandishing matches, asked if he could set her wig on fire.
One former employee, a Black woman, described an incident in which a boss, brandishing matches, asked if he could set her wig on fire.
The Forum told the Journal last year that they weren't aware of the allegations. The employee eventually chose to leave the organization. And then there was a story an employee told about a strange encounter in 2010 during a flu vaccination drive.
The Forum told the Journal last year that they weren't aware of the allegations. The employee eventually chose to leave the organization. And then there was a story an employee told about a strange encounter in 2010 during a flu vaccination drive.
According to a complaint sent to Schwab and forum leaders, the woman only realized she'd been duped when the real doctor walked in. According to the complaint, the manager later brushed it off as a joke.
According to a complaint sent to Schwab and forum leaders, the woman only realized she'd been duped when the real doctor walked in. According to the complaint, the manager later brushed it off as a joke.
The Forum told the journal last year that the incident was a misunderstanding. Documents show that the executive was reprimanded and had his bonus reduced. Some current and former employees told Shalini about alleged incidents involving Schwab himself. One woman described a meeting in which Schwab propped his leg up on her desk with his crotch in front of her face.
The Forum told the journal last year that the incident was a misunderstanding. Documents show that the executive was reprimanded and had his bonus reduced. Some current and former employees told Shalini about alleged incidents involving Schwab himself. One woman described a meeting in which Schwab propped his leg up on her desk with his crotch in front of her face.
According to her account, Schwab told her he'd like to see her wearing what he called a Hawaiian costume. The woman said Schwab had told her more than once, quote, Two other employees also confirmed they saw Schwab strike the crotch pose in front of the staffer and other women. For their investigation, Shalini and her colleagues interviewed more than 80 current and former employees.
According to her account, Schwab told her he'd like to see her wearing what he called a Hawaiian costume. The woman said Schwab had told her more than once, quote, Two other employees also confirmed they saw Schwab strike the crotch pose in front of the staffer and other women. For their investigation, Shalini and her colleagues interviewed more than 80 current and former employees.
They also reviewed documents such as HR complaints, internal emails, and text messages. So you publish your article outlining what these ex and current employees have told you they experienced. What happened next?
They also reviewed documents such as HR complaints, internal emails, and text messages. So you publish your article outlining what these ex and current employees have told you they experienced. What happened next?
At the time, the Forum disputed the journal's reporting. A spokesperson told the journal that the article mischaracterized the organization, as well as Schwab. It called the claims vague and false and said Schwab never made sexual advances. Last year, the Forum's board created a special committee and hired a law firm to investigate its workplace culture.
At the time, the Forum disputed the journal's reporting. A spokesperson told the journal that the article mischaracterized the organization, as well as Schwab. It called the claims vague and false and said Schwab never made sexual advances. Last year, the Forum's board created a special committee and hired a law firm to investigate its workplace culture.
Recently, it said that review had concluded, and it shook up its senior leadership. The final report was never publicly released. Earlier this month, Schwab announced that he would transition out of his role at the forum. But it wouldn't be immediate. He planned to step down by 2027. At this point, after this investigation by the forum, how are things looking for Schwab?
Recently, it said that review had concluded, and it shook up its senior leadership. The final report was never publicly released. Earlier this month, Schwab announced that he would transition out of his role at the forum. But it wouldn't be immediate. He planned to step down by 2027. At this point, after this investigation by the forum, how are things looking for Schwab?
And then, just this month, a bombshell.
And then, just this month, a bombshell.
What was in that letter? That's after the break.
What was in that letter? That's after the break.
A few weeks ago, the World Economic Forum's board received a letter In it, current and former employees repeated some of the allegations the journal had reported. But the letter also contained fresh accusations, this time leveled directly at the boss.
A few weeks ago, the World Economic Forum's board received a letter In it, current and former employees repeated some of the allegations the journal had reported. But the letter also contained fresh accusations, this time leveled directly at the boss.
We feel compelled, the letter said, to share a comprehensive account of systemic governance failures and abuses of power that have taken place over many years under the unchecked authority of Klaus Schwab. The letter alleged that Schwab and his wife, Hilda Schwab, mixed their personal affairs with World Economic Forum resources without proper oversight.
We feel compelled, the letter said, to share a comprehensive account of systemic governance failures and abuses of power that have taken place over many years under the unchecked authority of Klaus Schwab. The letter alleged that Schwab and his wife, Hilda Schwab, mixed their personal affairs with World Economic Forum resources without proper oversight.
The whistleblower letter also mentioned a sprawling estate overlooking Lake Geneva called Villa Mundi. The forum bought the modernist building for $30 million and spent another $20 million on renovations.
The whistleblower letter also mentioned a sprawling estate overlooking Lake Geneva called Villa Mundi. The forum bought the modernist building for $30 million and spent another $20 million on renovations.
The Schwabs deny all these allegations. A spokesman for the family said that Klaus Schwab intends to sue whoever is behind the anonymous letter. The spokesman also said that when Schwab charged massages to the forum, he always paid them back. As far as the Villa Mundi property, he said the Schwabs live nearby and have only used the estate for forum-related events.
The Schwabs deny all these allegations. A spokesman for the family said that Klaus Schwab intends to sue whoever is behind the anonymous letter. The spokesman also said that when Schwab charged massages to the forum, he always paid them back. As far as the Villa Mundi property, he said the Schwabs live nearby and have only used the estate for forum-related events.
The whistleblower letter ignited a new crisis at the forum, one that's pitting Klaus Schwab against many members of the organization's board.
The whistleblower letter ignited a new crisis at the forum, one that's pitting Klaus Schwab against many members of the organization's board.
At an emergency board meeting on Easter Sunday, the board decided to open an investigation into Schwab. Schwab then resigned. The board has appointed a former Nestle CEO as the forum's interim leader. What could all of this mean for the World Economic Forum long term? Like, will people still go to Davos?
At an emergency board meeting on Easter Sunday, the board decided to open an investigation into Schwab. Schwab then resigned. The board has appointed a former Nestle CEO as the forum's interim leader. What could all of this mean for the World Economic Forum long term? Like, will people still go to Davos?
Over the years, the Davos Conference has taken on big topics. Peace in the Middle East, climate change, gender equality, And they've touted big wins. Organizers have taken credit for major diplomatic breakthroughs, including averting conflict between Greece and Turkey and bringing together the leaders of East and West Germany after the fall of the Berlin Wall.
Over the years, the Davos Conference has taken on big topics. Peace in the Middle East, climate change, gender equality, And they've touted big wins. Organizers have taken credit for major diplomatic breakthroughs, including averting conflict between Greece and Turkey and bringing together the leaders of East and West Germany after the fall of the Berlin Wall.
And this is all happening at a time when there's been a lot of criticism of events like Davos. Like they've kind of been slammed as these meetings of out-of-touch elites.
And this is all happening at a time when there's been a lot of criticism of events like Davos. Like they've kind of been slammed as these meetings of out-of-touch elites.
That's all for today, Wednesday, April 30th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting in this episode from Khadija Softar, Jenny Strasberg, Suzanne Vranica, and Anna Maria Andriotis. Special thanks to George Downs. Thanks for listening. See you tomorrow.
That's all for today, Wednesday, April 30th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting in this episode from Khadija Softar, Jenny Strasberg, Suzanne Vranica, and Anna Maria Andriotis. Special thanks to George Downs. Thanks for listening. See you tomorrow.
We're on a culinary journey.
We're on a culinary journey.
Problem solved.
Problem solved.
Like, what do you do if you wake up and your credit score just plummets because of your student loans?
Like, what do you do if you wake up and your credit score just plummets because of your student loans?
I have a question. Who's ready?
I have a question. Who's ready?
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Tuesday, April 29th. Coming up on the show, how Canada's Prime Minister won by standing up to President Trump. Historically, the relationship between Canada and the U.S. has been pretty cozy.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Tuesday, April 29th. Coming up on the show, how Canada's Prime Minister won by standing up to President Trump. Historically, the relationship between Canada and the U.S. has been pretty cozy.
Who's ready? Last night, Mark Carney celebrated his victory in Canada's election at a hockey arena in Ottawa.
Who's ready? Last night, Mark Carney celebrated his victory in Canada's election at a hockey arena in Ottawa.
The two countries' economic ties also run deep. Eighty percent of Canada's exports go to the U.S.,
The two countries' economic ties also run deep. Eighty percent of Canada's exports go to the U.S.,
That's how it used to be. But recently, the US-Canada relationship has taken a big hit. Soon after coming into office, President Trump started imposing tariffs on America's trading partners, including Canada.
That's how it used to be. But recently, the US-Canada relationship has taken a big hit. Soon after coming into office, President Trump started imposing tariffs on America's trading partners, including Canada.
Who's ready to stand up for Canada with me?
Who's ready to stand up for Canada with me?
But it wasn't just economic. Trump also threatened Canada in a way that was much more existential.
But it wasn't just economic. Trump also threatened Canada in a way that was much more existential.
And so how have Canadians been feeling about their southern neighbor, the U.S.?
And so how have Canadians been feeling about their southern neighbor, the U.S.?
Some Canadians have started wearing blue Canada is not for sale hats. Others are boycotting American whiskey. And instead of selling Americanos, some coffee shops are selling Canadianos. That was the backdrop to Canada's election. And as a candidate, Mark Carney was able to tap into Canadians' anger.
Some Canadians have started wearing blue Canada is not for sale hats. Others are boycotting American whiskey. And instead of selling Americanos, some coffee shops are selling Canadianos. That was the backdrop to Canada's election. And as a candidate, Mark Carney was able to tap into Canadians' anger.
Carney, who had already been leading the Liberal Party, will continue to serve as prime minister. But a surprising portion of his acceptance speech wasn't focused on Canada.
Carney, who had already been leading the Liberal Party, will continue to serve as prime minister. But a surprising portion of his acceptance speech wasn't focused on Canada.
We are facing the most significant crisis of our lifetimes because of President Trump's unjustified trade actions and his threats to our sovereignty.
We are facing the most significant crisis of our lifetimes because of President Trump's unjustified trade actions and his threats to our sovereignty.
And so let's talk a bit about Carney. What's his background?
And so let's talk a bit about Carney. What's his background?
Carney would go on to run Canada's central bank. This was at a crucial moment during the 2008 global financial crisis.
Carney would go on to run Canada's central bank. This was at a crucial moment during the 2008 global financial crisis.
Imagine such a thing.
Imagine such a thing.
America wants our land, our resources, our water, our country.
America wants our land, our resources, our water, our country.
Carney would run that bank during another crisis, Brexit.
Carney would run that bank during another crisis, Brexit.
Then, Carney got a chance to lead on his home turf. Justin Trudeau has announced he's stepping down as the prime minister of Canada and as the leader of his party. After Trudeau's resignation earlier this year, Carney stepped in to replace him, and he soon called for an election.
Then, Carney got a chance to lead on his home turf. Justin Trudeau has announced he's stepping down as the prime minister of Canada and as the leader of his party. After Trudeau's resignation earlier this year, Carney stepped in to replace him, and he soon called for an election.
In only five weeks, Carney gained enough support to win. Was Carney's rise surprising to you?
In only five weeks, Carney gained enough support to win. Was Carney's rise surprising to you?
So how is Carney planning to take on Trump? That's next.
So how is Carney planning to take on Trump? That's next.
And what was Carney's speech like?
And what was Carney's speech like?
Carney went on the message that he would stand up for Canada and its economy. But that economy was shaky even before Trump took office.
Carney went on the message that he would stand up for Canada and its economy. But that economy was shaky even before Trump took office.
Our colleague Vipal Manga was there.
Our colleague Vipal Manga was there.
And tariffs, I would imagine, have made that worse.
And tariffs, I would imagine, have made that worse.
Carney has already taken some action against Trump's tariffs. He imposed counter-tariffs against the U.S. earlier this month. And he's looking to strike a new trade deal with Trump.
Carney has already taken some action against Trump's tariffs. He imposed counter-tariffs against the U.S. earlier this month. And he's looking to strike a new trade deal with Trump.
So as the trade relationship with the U.S. becomes shakier and something that Canada can't rely on, Carney's looking to deepen that relationship with other countries.
So as the trade relationship with the U.S. becomes shakier and something that Canada can't rely on, Carney's looking to deepen that relationship with other countries.
But could any of these potential deals with other countries or blocs like Europe actually replace the U.S.?
But could any of these potential deals with other countries or blocs like Europe actually replace the U.S.?
So he's looking to diversify the trade relationships, but that only goes so far.
So he's looking to diversify the trade relationships, but that only goes so far.
What about this idea that Trump has floated repeatedly of making Canada the 51st state? What can you expect to see from Carney about that?
What about this idea that Trump has floated repeatedly of making Canada the 51st state? What can you expect to see from Carney about that?
President Trump is trying to break us so that America can own us. That will never, that will never, ever happen.
President Trump is trying to break us so that America can own us. That will never, that will never, ever happen.
Carney's liberal party fell short of a majority in the parliament. That means that Carney will have to work with rival politicians to get things done. How much can Carney really do when it comes to standing up to Trump? How much leverage does he have? How much power does he have?
Carney's liberal party fell short of a majority in the parliament. That means that Carney will have to work with rival politicians to get things done. How much can Carney really do when it comes to standing up to Trump? How much leverage does he have? How much power does he have?
We are over the shock of the American betrayal, but we should never forget the lessons.
We are over the shock of the American betrayal, but we should never forget the lessons.
What could this moment and Carney's election mean for U.S.-Canada relations?
What could this moment and Carney's election mean for U.S.-Canada relations?
Before we go, our series Trump 2.0 is wrapping this week. If you have any questions about the Trump administration and how its first 100 days in power went, email us and let us know. Please send a voice note to thejournal at wsj.com. That's thejournal at wsj.com. That's all for today, Tuesday, April 29th. The Journal is a co-production of Spotify and The Wall Street Journal.
Before we go, our series Trump 2.0 is wrapping this week. If you have any questions about the Trump administration and how its first 100 days in power went, email us and let us know. Please send a voice note to thejournal at wsj.com. That's thejournal at wsj.com. That's all for today, Tuesday, April 29th. The Journal is a co-production of Spotify and The Wall Street Journal.
If you like our show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.
If you like our show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.
What was Christina Chapman doing with 10 laptops in her spare room? Well, according to a federal indictment... What she's doing is a scam.
What was Christina Chapman doing with 10 laptops in her spare room? Well, according to a federal indictment... What she's doing is a scam.
The U.S. government says that Christina Chapman was a laptop farmer, and her employer was North Korea.
The U.S. government says that Christina Chapman was a laptop farmer, and her employer was North Korea.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Tuesday, June 3rd. Coming up on the show, how an everyday American helped North Korea scam corporate America.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Tuesday, June 3rd. Coming up on the show, how an everyday American helped North Korea scam corporate America.
In January 2021, Christina Chapman took to TikTok to check in with her followers. Her financial situation was precarious.
In January 2021, Christina Chapman took to TikTok to check in with her followers. Her financial situation was precarious.
But Chapman's situation was about to turn around. In fact, the answer to her financial troubles had arrived just a few months before she posted that video, in the form of a social media message.
But Chapman's situation was about to turn around. In fact, the answer to her financial troubles had arrived just a few months before she posted that video, in the form of a social media message.
We do know that Chapman agreed to help out. And according to court documents, we know who that message came from. North Korean scammers. Chapman had stumbled into what's become a vast scam designed to bring hundreds of millions of dollars into North Korea. It took off during the pandemic, when many U.S. tech jobs moved online. And it works like this.
We do know that Chapman agreed to help out. And according to court documents, we know who that message came from. North Korean scammers. Chapman had stumbled into what's become a vast scam designed to bring hundreds of millions of dollars into North Korea. It took off during the pandemic, when many U.S. tech jobs moved online. And it works like this.
North Koreans trained in IT apply for remote jobs in the U.S. Those workers get hired, start work, and get paid, all under false identities.
North Koreans trained in IT apply for remote jobs in the U.S. Those workers get hired, start work, and get paid, all under false identities.
And do they do the job?
And do they do the job?
According to the FBI, their paychecks likely get funneled to the North Korean regime, where the money may help fund things like the country's nuclear weapons program.
According to the FBI, their paychecks likely get funneled to the North Korean regime, where the money may help fund things like the country's nuclear weapons program.
What kind of stuff?
What kind of stuff?
These North Korean scammers have been able to infiltrate a wide range of industries, from retail to the auto industry, even to cybersecurity.
These North Korean scammers have been able to infiltrate a wide range of industries, from retail to the auto industry, even to cybersecurity.
That is wild to me. Imagine being a North Korean hacker and applying for a job at a cybersecurity company.
That is wild to me. Imagine being a North Korean hacker and applying for a job at a cybersecurity company.
The U.S. cybersecurity company CrowdStrike shared a video with the journal. It shows just how adept North Korean scammers have become at acing job interviews.
The U.S. cybersecurity company CrowdStrike shared a video with the journal. It shows just how adept North Korean scammers have become at acing job interviews.
Scammers have no problem doing interviews, showing up for Zoom meetings, and coding remotely. But there are some tasks that they can't do, tasks that require them to be physically present in the U.S. But the scammers have found a way around this, too.
Scammers have no problem doing interviews, showing up for Zoom meetings, and coding remotely. But there are some tasks that they can't do, tasks that require them to be physically present in the U.S. But the scammers have found a way around this, too.
One key hire is the laptop farmer. How important is the laptop farmer in all of this?
One key hire is the laptop farmer. How important is the laptop farmer in all of this?
Laptop farmers help make that happen. They receive North Koreans' work laptops and help set them up so that the scammers can operate them remotely. They also help with logging on in the morning and logging off at night. And that's what Christina Chapman did.
Laptop farmers help make that happen. They receive North Koreans' work laptops and help set them up so that the scammers can operate them remotely. They also help with logging on in the morning and logging off at night. And that's what Christina Chapman did.
Bob, can you tell me about this influencer you've been watching on TikTok?
Bob, can you tell me about this influencer you've been watching on TikTok?
After she got that LinkedIn message, Chapman became one of what researchers estimate could be dozens of laptop farmers who've cropped up all across the U.S.
After she got that LinkedIn message, Chapman became one of what researchers estimate could be dozens of laptop farmers who've cropped up all across the U.S.
But according to the indictment, that was just the beginning.
But according to the indictment, that was just the beginning.
How laptop farming transformed Chapman's life? That's after the break. By January 2023, Christina Chapman was much more than a veteran laptop farmer. She was like an HR representative, administrative assistant, and tech support all rolled into one person.
How laptop farming transformed Chapman's life? That's after the break. By January 2023, Christina Chapman was much more than a veteran laptop farmer. She was like an HR representative, administrative assistant, and tech support all rolled into one person.
Our colleague Bob McMillan covers cybersecurity. And there's one video of Chapman's in particular that he says is a bit unusual. On its face, it's pretty innocuous. Chapman's showing her followers some breakfast that she picked up.
Our colleague Bob McMillan covers cybersecurity. And there's one video of Chapman's in particular that he says is a bit unusual. On its face, it's pretty innocuous. Chapman's showing her followers some breakfast that she picked up.
Chapman's total earnings amounted to just under $177,000 over two years. With that money, she was able to move into a four-bedroom house in Phoenix with a roommate. It even had a yard for her three chihuahuas, Henry, Serenity, and Burrito. And she could afford to treat herself once in a while.
Chapman's total earnings amounted to just under $177,000 over two years. With that money, she was able to move into a four-bedroom house in Phoenix with a roommate. It even had a yard for her three chihuahuas, Henry, Serenity, and Burrito. And she could afford to treat herself once in a while.
Chapman opens the packaging to reveal a $72 green ring.
Chapman opens the packaging to reveal a $72 green ring.
That same day, Chapman posted about going to a comedy show where drunken actors perform Shakespeare.
That same day, Chapman posted about going to a comedy show where drunken actors perform Shakespeare.
Such a contrast from the woman who was crying on the TikTok and now can afford to have the queen seat.
Such a contrast from the woman who was crying on the TikTok and now can afford to have the queen seat.
But then, in October of 2023, Chapman's life took yet another turn.
But then, in October of 2023, Chapman's life took yet another turn.
In early 2024, Chapman was arrested and charged with fraud, identity theft, and money laundering. She pleaded guilty. She's due to be sentenced next month and could face just over nine years in prison. Did she know she was doing the bidding of the North Koreans?
In early 2024, Chapman was arrested and charged with fraud, identity theft, and money laundering. She pleaded guilty. She's due to be sentenced next month and could face just over nine years in prison. Did she know she was doing the bidding of the North Koreans?
Without her laptop farming job, Chapman found herself back in a familiar situation, trying to string together enough gig work to make ends meet.
Without her laptop farming job, Chapman found herself back in a familiar situation, trying to string together enough gig work to make ends meet.
According to her attorney, Chapman is currently living at a homeless shelter. She's right back where she started.
According to her attorney, Chapman is currently living at a homeless shelter. She's right back where she started.
Now that this has become such a pervasive problem, how are government agencies and companies fighting back against this North Korean remote worker scam?
Now that this has become such a pervasive problem, how are government agencies and companies fighting back against this North Korean remote worker scam?
For any boss who's been looking for an excuse to bring people back to the office, this is it.
For any boss who's been looking for an excuse to bring people back to the office, this is it.
That's all for today, Tuesday, June 3rd. The Journal is a co-production of Spotify and The Wall Street Journal. If you like the show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.
That's all for today, Tuesday, June 3rd. The Journal is a co-production of Spotify and The Wall Street Journal. If you like the show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.
What came first, the chicken or the egg? Well, the egg came first in this story. CalMain Foods, the egg company, shares are soaring this year up 64%.
What came first, the chicken or the egg? Well, the egg came first in this story. CalMain Foods, the egg company, shares are soaring this year up 64%.
What do you hope that people will take away from this interview and from hearing Jonathan?
What do you hope that people will take away from this interview and from hearing Jonathan?
That's all for today, Thursday, May 15th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting from Robert Barba, Alison Sider, and Bodhi Atwe. Thanks for listening. See you tomorrow.
That's all for today, Thursday, May 15th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting from Robert Barba, Alison Sider, and Bodhi Atwe. Thanks for listening. See you tomorrow.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Thursday, May 15th. Coming up on the show, the chaos at Newark through the eyes of an air traffic controller.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Thursday, May 15th. Coming up on the show, the chaos at Newark through the eyes of an air traffic controller.
That's aviation reporter Andrew Tangle. He sat down with air traffic controller Jonathan Stewart earlier this week to talk about what's been going on at Newark. The circumstances of their conversation were a bit unusual. As the interview kicked off, Jonathan smoked a cigar while gunfire went off in the background.
That's aviation reporter Andrew Tangle. He sat down with air traffic controller Jonathan Stewart earlier this week to talk about what's been going on at Newark. The circumstances of their conversation were a bit unusual. As the interview kicked off, Jonathan smoked a cigar while gunfire went off in the background.
In late April, the radios that controllers used to talk to airplanes went silent. And the radar they used to guide the planes suddenly went dark.
In late April, the radios that controllers used to talk to airplanes went silent. And the radar they used to guide the planes suddenly went dark.
Jonathan has been in air traffic control for 25 years. He started his career in the Air Force in the late 90s.
Jonathan has been in air traffic control for 25 years. He started his career in the Air Force in the late 90s.
Jonathan describes airspace like the layers of a cake, with each layer managed by a dedicated team of controllers. The people in the towers at the airport, they're in charge of the bottom layer, where the planes take off and touch down. But Jonathan, he's in the layer above that. He's what's known as a radar controller.
Jonathan describes airspace like the layers of a cake, with each layer managed by a dedicated team of controllers. The people in the towers at the airport, they're in charge of the bottom layer, where the planes take off and touch down. But Jonathan, he's in the layer above that. He's what's known as a radar controller.
This video game is especially intense at Newark, which is some of the busiest airspace in the world.
This video game is especially intense at Newark, which is some of the busiest airspace in the world.
Controllers were in the dark for a harrowing 90 seconds. Then last week, it happened again. Another outage earlier this morning. And then just a few days ago, another malfunction. Another technical issue at Newark Airport today forcing a 45-minute ground stop, leading to more delays and cancellations. Government officials say they're working to fix the equipment problems.
Controllers were in the dark for a harrowing 90 seconds. Then last week, it happened again. Another outage earlier this morning. And then just a few days ago, another malfunction. Another technical issue at Newark Airport today forcing a 45-minute ground stop, leading to more delays and cancellations. Government officials say they're working to fix the equipment problems.
But lately, Jonathan says that he and other controllers have been pushed beyond their limits. Throughout the country, air traffic control facilities are understaffed. The FAA has almost 11,000 fully certified controllers, but that's about 3,000 short of its target.
But lately, Jonathan says that he and other controllers have been pushed beyond their limits. Throughout the country, air traffic control facilities are understaffed. The FAA has almost 11,000 fully certified controllers, but that's about 3,000 short of its target.
Staffing shortages at Newark aren't just a problem for controllers like Jonathan. Our colleague Andrew says they're also a problem for travelers.
Staffing shortages at Newark aren't just a problem for controllers like Jonathan. Our colleague Andrew says they're also a problem for travelers.
And so to try to fix the staffing problem, the FAA made a big move. Last year, it moved oversight of Newark's airspace from Long Island, where it had been for years, to Philadelphia.
And so to try to fix the staffing problem, the FAA made a big move. Last year, it moved oversight of Newark's airspace from Long Island, where it had been for years, to Philadelphia.
But this move to Philly also created some unforeseen consequences.
But this move to Philly also created some unforeseen consequences.
Over the last few weeks, a crisis has unfolded just outside New York City at Newark Liberty International Airport.
Over the last few weeks, a crisis has unfolded just outside New York City at Newark Liberty International Airport.
Instead of having its own radar, the new facility would rely on a link from Long Island. But that link wasn't always reliable. That became frighteningly clear in late April, when those Newark controllers lost their radar and radios for about 90 seconds.
Instead of having its own radar, the new facility would rely on a link from Long Island. But that link wasn't always reliable. That became frighteningly clear in late April, when those Newark controllers lost their radar and radios for about 90 seconds.
For the controllers involved, the ongoing glitches around Newark Airport have been harrowing.
For the controllers involved, the ongoing glitches around Newark Airport have been harrowing.
And the CEO of United Airlines, which has a major hub at Newark, has personally tried to reassure the public. In an email to customers, he said that it is, quote, absolutely safe to fly out of the airport. But there's another voice that you don't often hear from after incidents like this. The people on the front lines of air safety. And this week, the Journal sat down with one of them.
And the CEO of United Airlines, which has a major hub at Newark, has personally tried to reassure the public. In an email to customers, he said that it is, quote, absolutely safe to fly out of the airport. But there's another voice that you don't often hear from after incidents like this. The people on the front lines of air safety. And this week, the Journal sat down with one of them.
Air traffic controllers can take trauma leave after an incident to look after their mental health. Earlier this month, United Airlines CEO Scott Kirby said that workers taking trauma leave had made the staffing situation at Newark worse. He described controllers as having, quote, walked off the job.
Air traffic controllers can take trauma leave after an incident to look after their mental health. Earlier this month, United Airlines CEO Scott Kirby said that workers taking trauma leave had made the staffing situation at Newark worse. He described controllers as having, quote, walked off the job.
That comment rubbed Jonathan the wrong way.
That comment rubbed Jonathan the wrong way.
We asked United about CEO Scott Kirby's comment. A United spokesman pointed to Kirby's more recent statements calling for better equipment and working conditions for air traffic controllers.
We asked United about CEO Scott Kirby's comment. A United spokesman pointed to Kirby's more recent statements calling for better equipment and working conditions for air traffic controllers.
Jonathan was speaking from experience. When Andrew interviewed him, Jonathan was also on trauma leave after a scary incident of his own. That's after the break.
Jonathan was speaking from experience. When Andrew interviewed him, Jonathan was also on trauma leave after a scary incident of his own. That's after the break.
It wasn't just the long hours that were wearing Jonathan down, though. Since the technical glitches, he'd been doing a more complicated version of his job. Beyond the usual radar procedure, Jonathan was using pen and paper techniques to track aircraft, just in case an outage happened again.
It wasn't just the long hours that were wearing Jonathan down, though. Since the technical glitches, he'd been doing a more complicated version of his job. Beyond the usual radar procedure, Jonathan was using pen and paper techniques to track aircraft, just in case an outage happened again.
A nose-to-nose situation, meaning two planes were at risk of a mid-air collision. Leading up to this moment, Jonathan had been monitoring two planes departing out of two New Jersey airports, a business jet and another small plane. The two aircraft were taking off around the same time. Jonathan was in charge of making sure that they stayed out of each other's way.
A nose-to-nose situation, meaning two planes were at risk of a mid-air collision. Leading up to this moment, Jonathan had been monitoring two planes departing out of two New Jersey airports, a business jet and another small plane. The two aircraft were taking off around the same time. Jonathan was in charge of making sure that they stayed out of each other's way.
But before he knew it, the aircraft were at the same altitude and at risk of colliding.
But before he knew it, the aircraft were at the same altitude and at risk of colliding.
After the incident, Jonathan filed an internal report saying that the situation at the Philadelphia control facility was unsafe. An FAA spokesperson told the journal that Jonathan's report is under review and that the agency takes safety reports seriously. Jonathan says these kinds of experiences can be traumatic.
After the incident, Jonathan filed an internal report saying that the situation at the Philadelphia control facility was unsafe. An FAA spokesperson told the journal that Jonathan's report is under review and that the agency takes safety reports seriously. Jonathan says these kinds of experiences can be traumatic.
Jonathan says that flying is still statistically the safest way to travel. And he says he's been reassured by recent steps taken by the FAA. Last week, the FAA said that it's working to increase staffing levels at Newark. It's also adding temporary backup systems to prevent more outages and eventually new high-bandwidth connections between Philadelphia and New York.
Jonathan says that flying is still statistically the safest way to travel. And he says he's been reassured by recent steps taken by the FAA. Last week, the FAA said that it's working to increase staffing levels at Newark. It's also adding temporary backup systems to prevent more outages and eventually new high-bandwidth connections between Philadelphia and New York.
Transportation Secretary Sean Duffy also announced plans to upgrade air traffic control infrastructure nationwide. He said the Philadelphia facility overseeing Newark would be a priority in those plans.
Transportation Secretary Sean Duffy also announced plans to upgrade air traffic control infrastructure nationwide. He said the Philadelphia facility overseeing Newark would be a priority in those plans.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Thursday, May 8th. Coming up on the show, what happened when Nike tried to make shoes closer to home? My colleague John is not what you would call a sneakerhead.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Thursday, May 8th. Coming up on the show, what happened when Nike tried to make shoes closer to home? My colleague John is not what you would call a sneakerhead.
You're a my wife found a sale guy. Nice. But ever since John moved to Singapore, he's been learning more about the business side of the sneaker game.
You're a my wife found a sale guy. Nice. But ever since John moved to Singapore, he's been learning more about the business side of the sneaker game.
Why is that?
Why is that?
That's because shoes are complicated. A single shoe can incorporate a range of materials, from squishy foams to flexible plastics.
That's because shoes are complicated. A single shoe can incorporate a range of materials, from squishy foams to flexible plastics.
Most of those shoes are made in Asia, in three countries, Vietnam, Indonesia, and China.
Most of those shoes are made in Asia, in three countries, Vietnam, Indonesia, and China.
For years, shoemakers thrived in Asia. But about a decade ago, several sneaker companies, Adidas, Under Armour, and Nike, all tried to make shoes in a new place and in a new way. all three shoe companies decided to bring some production to North America.
For years, shoemakers thrived in Asia. But about a decade ago, several sneaker companies, Adidas, Under Armour, and Nike, all tried to make shoes in a new place and in a new way. all three shoe companies decided to bring some production to North America.
One reason to try something different, wages were rising in Asia.
One reason to try something different, wages were rising in Asia.
For a long time, setting up factories in North America was cost prohibitive.
For a long time, setting up factories in North America was cost prohibitive.
Of all the shoe companies, Nike's automation effort was the biggest. In 2015, the company set up a factory, not in the United States, but close by, in Guadalajara, Mexico. Wages in Mexico are higher than in most of Southeast Asia, but they're lower than in the U.S. Plus, it would be faster to ship shoes from Mexico to Nike's American customers. And what was Nike's goal?
Of all the shoe companies, Nike's automation effort was the biggest. In 2015, the company set up a factory, not in the United States, but close by, in Guadalajara, Mexico. Wages in Mexico are higher than in most of Southeast Asia, but they're lower than in the U.S. Plus, it would be faster to ship shoes from Mexico to Nike's American customers. And what was Nike's goal?
That's my colleague, John Emont.
That's my colleague, John Emont.
Like, how much manufacturing did they want to shift back to North America?
Like, how much manufacturing did they want to shift back to North America?
That's ambitious.
That's ambitious.
According to John's reporting, some within Nike hoped that the Mexican factory would serve as a stepping stone.
According to John's reporting, some within Nike hoped that the Mexican factory would serve as a stepping stone.
To help them set up that Guadalajara factory, Nike partnered with a company called Flex.
To help them set up that Guadalajara factory, Nike partnered with a company called Flex.
One of the people who worked on that Apple project was Tom Fletcher.
One of the people who worked on that Apple project was Tom Fletcher.
Tom would go on to work on the Nike factory. So you'd built complicated stuff in North America before?
Tom would go on to work on the Nike factory. So you'd built complicated stuff in North America before?
And so going into this project of trying to build shoes in North America, how are you feeling? Did it seem doable?
And so going into this project of trying to build shoes in North America, how are you feeling? Did it seem doable?
Tough but possible?
Tough but possible?
That's the way most modern shoemaking is done. Shoes are crafted in factories in Asia by tens of thousands of laborers making relatively low wages. And those shoes are then shipped and sold all over the world. But President Trump would like to change that.
That's the way most modern shoemaking is done. Shoes are crafted in factories in Asia by tens of thousands of laborers making relatively low wages. And those shoes are then shipped and sold all over the world. But President Trump would like to change that.
Tom's main challenge was to figure out how to replace humans with robots. His goal was to have fewer than 3,000 workers. To start, he flew to China, Indonesia, and Vietnam to tour Nike's factories there. And he saw firsthand the scale of the human labor that Nike was used to.
Tom's main challenge was to figure out how to replace humans with robots. His goal was to have fewer than 3,000 workers. To start, he flew to China, Indonesia, and Vietnam to tour Nike's factories there. And he saw firsthand the scale of the human labor that Nike was used to.
But getting rid of all those toothbrushes and all those workers wasn't as simple as Tom imagined.
But getting rid of all those toothbrushes and all those workers wasn't as simple as Tom imagined.
Americans love their sneakers. These are blue Adidas Campus O's. I'm literally obsessed with these.
Americans love their sneakers. These are blue Adidas Campus O's. I'm literally obsessed with these.
By 2016, Nike and Flex had set up a sneaker factory in Guadalajara, Mexico. But it didn't take long for the project to run into problems.
By 2016, Nike and Flex had set up a sneaker factory in Guadalajara, Mexico. But it didn't take long for the project to run into problems.
That's our colleague John again.
That's our colleague John again.
The project's success hinged on Nike's ability to cut costs, including by replacing humans with machines. But that was turning out to be easier said than done. For example, an early challenge was getting robots to attach the Nike swoosh to the side of the shoe. Here's Tom from Flex.
The project's success hinged on Nike's ability to cut costs, including by replacing humans with machines. But that was turning out to be easier said than done. For example, an early challenge was getting robots to attach the Nike swoosh to the side of the shoe. Here's Tom from Flex.
It took Tom and his team eight months to figure out an automated way to add the Nike swoosh to one specific shoe model.
It took Tom and his team eight months to figure out an automated way to add the Nike swoosh to one specific shoe model.
Now the swoosh is slightly to the right. Fine.
Now the swoosh is slightly to the right. Fine.
Another problem was fashion. At Nike, design was king. And the company didn't want to be limited by what robots could handle.
Another problem was fashion. At Nike, design was king. And the company didn't want to be limited by what robots could handle.
Robots are a lot less accommodating. All of these challenges added up. So in 2019, Nike packed up from the Mexico facility and went back to focusing on making shoes in Asia. According to Tom, the factory never hit its targets. The company produced fewer than 200,000 pairs of shoes in its Mexico factory and never reduced the workforce there below 3,000 people.
Robots are a lot less accommodating. All of these challenges added up. So in 2019, Nike packed up from the Mexico facility and went back to focusing on making shoes in Asia. According to Tom, the factory never hit its targets. The company produced fewer than 200,000 pairs of shoes in its Mexico factory and never reduced the workforce there below 3,000 people.
They also never achieved Tom's goal of automating all those toothbrushes out of the production line. Was it a surprise that robots weren't better at shoemaking?
They also never achieved Tom's goal of automating all those toothbrushes out of the production line. Was it a surprise that robots weren't better at shoemaking?
Nike wasn't the only shoe company to throw in the towel. Adidas and Under Armour had set up similar projects around the same time. And they actually did set them up in the U.S. Adidas in Atlanta and Under Armour in Baltimore. Under Armour called their effort Project Glory. Did they have better luck?
Nike wasn't the only shoe company to throw in the towel. Adidas and Under Armour had set up similar projects around the same time. And they actually did set them up in the U.S. Adidas in Atlanta and Under Armour in Baltimore. Under Armour called their effort Project Glory. Did they have better luck?
Though some of Trump's tariffs have been paused, shoe companies are still facing pressure to move production back home. but actually making shoes in North America would be incredibly tough to pull off. And shoemakers know that from experience.
Though some of Trump's tariffs have been paused, shoe companies are still facing pressure to move production back home. but actually making shoes in North America would be incredibly tough to pull off. And shoemakers know that from experience.
Adidas, Under Armour, and Nike declined to comment on their past reshoring efforts. All three companies refocused on Asia. And that might have been the end of the story. Except... Tariff.
Adidas, Under Armour, and Nike declined to comment on their past reshoring efforts. All three companies refocused on Asia. And that might have been the end of the story. Except... Tariff.
Tom from Flex said that when he first heard about the tariffs, including on Vietnam, Indonesia, and China, he had to laugh.
Tom from Flex said that when he first heard about the tariffs, including on Vietnam, Indonesia, and China, he had to laugh.
So a big goal of these tariffs, according to Trump, is to bring manufacturing back to America. How hard is that going to be? Like, what's that going to take to happen?
So a big goal of these tariffs, according to Trump, is to bring manufacturing back to America. How hard is that going to be? Like, what's that going to take to happen?
— Representatives from Nike and Under Armour said that the companies are working out responses to tariffs. John says we shouldn't expect North American-made sneakers to become the norm anytime soon.
— Representatives from Nike and Under Armour said that the companies are working out responses to tariffs. John says we shouldn't expect North American-made sneakers to become the norm anytime soon.
That's all for today, Thursday, May 8th. The Journal is a co-production of Spotify and The Wall Street Journal. If you like our show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.
That's all for today, Thursday, May 8th. The Journal is a co-production of Spotify and The Wall Street Journal. If you like our show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.
I had no idea what went into making a parachute for the military.
I had no idea what went into making a parachute for the military.
There is so little margin for error. So, like, if there is a flaw in one of these parachutes, the consequences could be really severe and very, very tragic. You're talking about people's lives who are at stake.
There is so little margin for error. So, like, if there is a flaw in one of these parachutes, the consequences could be really severe and very, very tragic. You're talking about people's lives who are at stake.
There are many, many steps to making these parachutes. It is repetitive work. It requires a lot of attention and a lot of skill. And it's not work for everyone.
There are many, many steps to making these parachutes. It is repetitive work. It requires a lot of attention and a lot of skill. And it's not work for everyone.
What's been the most difficult parts of making that United Nations work?
What's been the most difficult parts of making that United Nations work?
— And so that's creating a lot of anxiety and a lot of confusion among workers and their employers. And everyone's trying to figure it out.
— And so that's creating a lot of anxiety and a lot of confusion among workers and their employers. And everyone's trying to figure it out.
It's a meaningful portion of Mills' workforce. These people all work together, and one step is important, and one skill is important.
It's a meaningful portion of Mills' workforce. These people all work together, and one step is important, and one skill is important.
can't just say, we're going to bring someone new in, even if you can find them, and they're going to be able to, like, step in and fully do the job right away.
can't just say, we're going to bring someone new in, even if you can find them, and they're going to be able to, like, step in and fully do the job right away.
I mean, do you think would it take a year, five years, two years?
I mean, do you think would it take a year, five years, two years?
I think he's very concerned about the impact of these changes in immigration policies on his business, but also on the people who work there. And he kept saying that to me.
I think he's very concerned about the impact of these changes in immigration policies on his business, but also on the people who work there. And he kept saying that to me.
Lots and lots and lots. You have big companies that employ people through these kinds of programs. You have small employers that employ people through these kinds of programs. They are scattered all across the country.
Lots and lots and lots. You have big companies that employ people through these kinds of programs. You have small employers that employ people through these kinds of programs. They are scattered all across the country.
I haven't spoken to William since this decision came down, but... I know he wants to stay here. He wants to work here. He wants to work here legally. And he's trying to figure out how to keep his status solid.
I haven't spoken to William since this decision came down, but... I know he wants to stay here. He wants to work here. He wants to work here legally. And he's trying to figure out how to keep his status solid.
And it's and your signs are all in English. Oh, you have it. Wait. So you have multiple languages. So English, Spanish, Moldovan and Russian.
And it's and your signs are all in English. Oh, you have it. Wait. So you have multiple languages. So English, Spanish, Moldovan and Russian.
Oh, my God.
Oh, my God.
If I die, I hope you guys turn this into a meme coin.
If I die, I hope you guys turn this into a meme coin.
How soon after Trump began imposing sweeping tariffs did people in your world, the legal world, start asking, wait a second, can he do that?
How soon after Trump began imposing sweeping tariffs did people in your world, the legal world, start asking, wait a second, can he do that?
Typically, Congress regulates tariffs. But in this case, Trump argued that he could do it. His administration invoked a 1970s-era law, the International Emergency Economic Powers Act, IEPA for short.
Typically, Congress regulates tariffs. But in this case, Trump argued that he could do it. His administration invoked a 1970s-era law, the International Emergency Economic Powers Act, IEPA for short.
When President Trump invoked the Emergency Economic Powers Act, had we ever seen anything like that before? How new was that?
When President Trump invoked the Emergency Economic Powers Act, had we ever seen anything like that before? How new was that?
It was a first, and the move raised eyebrows. Some academics and legal groups started looking into whether the tariffs could be challenged in court. That led to a few lawsuits, including one brought by a libertarian nonprofit law firm called the Liberty Justice Center. That suit brought together a group of small businesses to sue the government.
It was a first, and the move raised eyebrows. Some academics and legal groups started looking into whether the tariffs could be challenged in court. That led to a few lawsuits, including one brought by a libertarian nonprofit law firm called the Liberty Justice Center. That suit brought together a group of small businesses to sue the government.
So they could really cover their ground with these five companies.
So they could really cover their ground with these five companies.
A few weeks ago, James visited the Court of International Trade, that obscure court in lower Manhattan. He was there to watch as the plaintiffs in the Trump administration made their case before a panel of three judges. And what argument did those five businesses make?
A few weeks ago, James visited the Court of International Trade, that obscure court in lower Manhattan. He was there to watch as the plaintiffs in the Trump administration made their case before a panel of three judges. And what argument did those five businesses make?
— The businesses also disputed Trump's claim that the country is in the middle of an emergency.
— The businesses also disputed Trump's claim that the country is in the middle of an emergency.
And what did the government argue in response to that?
And what did the government argue in response to that?
The court is obscure, but when it comes to matters of trade, it's powerful.
The court is obscure, but when it comes to matters of trade, it's powerful.
But there was also a larger argument that the government wanted to make, an argument about executive power.
But there was also a larger argument that the government wanted to make, an argument about executive power.
There's a squat, boxy building in New York City, a relatively unimposing courthouse tucked into Lower Manhattan. It's called the U.S. Court of International Trade. And you'd be forgiven if you've never heard of it. Neither had our legal reporter, James Finelli.
There's a squat, boxy building in New York City, a relatively unimposing courthouse tucked into Lower Manhattan. It's called the U.S. Court of International Trade. And you'd be forgiven if you've never heard of it. Neither had our legal reporter, James Finelli.
The government's lawyer responded that IEPA set out clear boundaries for exercising presidential power. The court issued its ruling on Wednesday night. Its verdict? Trump did not have the authority to impose tariffs under the Emergency Economic Powers Act.
The government's lawyer responded that IEPA set out clear boundaries for exercising presidential power. The court issued its ruling on Wednesday night. Its verdict? Trump did not have the authority to impose tariffs under the Emergency Economic Powers Act.
In response to the ruling, a White House spokesman said, quote, it is not for unelected judges to decide how to properly address a national emergency, unquote. Lawyers for the Trump administration immediately appealed the court's decision. They also requested a stay that would keep the tariffs in place temporarily.
In response to the ruling, a White House spokesman said, quote, it is not for unelected judges to decide how to properly address a national emergency, unquote. Lawyers for the Trump administration immediately appealed the court's decision. They also requested a stay that would keep the tariffs in place temporarily.
Yesterday, they got that stay, which will remain in place as the case works its way through the courts.
Yesterday, they got that stay, which will remain in place as the case works its way through the courts.
But in the meantime, the Trump administration does have a plan B. That plan is after the break. So could you start by introducing yourself?
But in the meantime, the Trump administration does have a plan B. That plan is after the break. So could you start by introducing yourself?
So you're not busy at all.
So you're not busy at all.
Gavin has been tracking the administration's moves in the aftermath of the International Trade Court's decision. Gavin, the administration is in the middle of trade negotiations right now with the European Union, with China. How could this ruling impact those talks?
Gavin has been tracking the administration's moves in the aftermath of the International Trade Court's decision. Gavin, the administration is in the middle of trade negotiations right now with the European Union, with China. How could this ruling impact those talks?
And this week, it did.
And this week, it did.
So was the administration right in that court filing? Like, does this decision make it less likely that countries will want to make a deal?
So was the administration right in that court filing? Like, does this decision make it less likely that countries will want to make a deal?
The Trump administration will continue to pursue the case through the courts. But according to people Gavin's talked to, the administration is also working on a potential Plan B. This plan wouldn't rely on IEPA. It would rely on yet another law from the 1970s, the Trade Act of 1974.
The Trump administration will continue to pursue the case through the courts. But according to people Gavin's talked to, the administration is also working on a potential Plan B. This plan wouldn't rely on IEPA. It would rely on yet another law from the 1970s, the Trade Act of 1974.
This section, the first part of the plan, allows the president to put tariffs in place for 150 days.
This section, the first part of the plan, allows the president to put tariffs in place for 150 days.
The problem, of course, is that those tariffs would be temporary unless they're reauthorized by Congress.
The problem, of course, is that those tariffs would be temporary unless they're reauthorized by Congress.
Trump has actually used this section of the law before. He used it to impose tariffs on China during his first term. But implementing tariffs this way takes time and work.
Trump has actually used this section of the law before. He used it to impose tariffs on China during his first term. But implementing tariffs this way takes time and work.
So Gavin, where does this all leave Trump's signature economic policy of these sweeping tariffs?
So Gavin, where does this all leave Trump's signature economic policy of these sweeping tariffs?
That's all for today, Friday, May 30th. The Journal is a co-production of Spotify and The Wall Street Journal. The shows made by Catherine Brewer, Pia Gadkari, Carlos Garcia, Rachel Humphries, Ryan Knudsen, Sophie Codner, Matt Kwong, Kate Leinbaugh, Colin McNulty, Jessica Mendoza, Laura Morris, Enrique Perez de la Rosa, Sarah Platt, Alan Rodriguez-Espinoza,
That's all for today, Friday, May 30th. The Journal is a co-production of Spotify and The Wall Street Journal. The shows made by Catherine Brewer, Pia Gadkari, Carlos Garcia, Rachel Humphries, Ryan Knudsen, Sophie Codner, Matt Kwong, Kate Leinbaugh, Colin McNulty, Jessica Mendoza, Laura Morris, Enrique Perez de la Rosa, Sarah Platt, Alan Rodriguez-Espinoza,
Heather Rogers, Pierce Singey, Jivika Verma, Lisa Wang, Catherine Whalen, Tatiana Zamise, and me, Annie Minoff. Our engineers are Griffin Tanner, Nathan Singapak, and Peter Leonard. Our theme music is by So Wiley. Additional music this week from Catherine Anderson, Peter Leonard, Billy Libby, Nathan Singapak, Haley Shaw, Griffin Tanner, and Blue Dot Sessions.
Heather Rogers, Pierce Singey, Jivika Verma, Lisa Wang, Catherine Whalen, Tatiana Zamise, and me, Annie Minoff. Our engineers are Griffin Tanner, Nathan Singapak, and Peter Leonard. Our theme music is by So Wiley. Additional music this week from Catherine Anderson, Peter Leonard, Billy Libby, Nathan Singapak, Haley Shaw, Griffin Tanner, and Blue Dot Sessions.
Fact-checking this week by Kate Gallagher and Mary Mathis. Thanks for listening. See you Monday.
Fact-checking this week by Kate Gallagher and Mary Mathis. Thanks for listening. See you Monday.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Friday, May 30th. Coming up on the show, how an obscure court upended Trump's trade agenda. On April 2nd, Trump imposed his Liberation Day tariffs and kicked off a global trade war.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Friday, May 30th. Coming up on the show, how an obscure court upended Trump's trade agenda. On April 2nd, Trump imposed his Liberation Day tariffs and kicked off a global trade war.
Laura Morris, Enrique Perez de la Rosa, Sarah Platt, Alan Rodriguez-Espinosa, Heather Rogers, Pierce Singey, Jivika Verma, Jessica Mendoza, Lisa Wang, Catherine Whalen, Tatiana Zamise, and me, Annie Minoff, with help from Trina Menino. Our engineers are Griffin Tanner, Nathan Singapak, and Peter Leonard. Our theme music is by So Wiley.
Laura Morris, Enrique Perez de la Rosa, Sarah Platt, Alan Rodriguez-Espinosa, Heather Rogers, Pierce Singey, Jivika Verma, Jessica Mendoza, Lisa Wang, Catherine Whalen, Tatiana Zamise, and me, Annie Minoff, with help from Trina Menino. Our engineers are Griffin Tanner, Nathan Singapak, and Peter Leonard. Our theme music is by So Wiley.
Additional music this week from Catherine Anderson, Peter Leonard, Billy Libby, Bobby Lord, Emma Munger, Griffin Tanner, Nathan Singapak, Audio Network, and Blue Dot Sessions. Fact Checking by Mary Mathis. Thanks for listening. See you Monday.
Additional music this week from Catherine Anderson, Peter Leonard, Billy Libby, Bobby Lord, Emma Munger, Griffin Tanner, Nathan Singapak, Audio Network, and Blue Dot Sessions. Fact Checking by Mary Mathis. Thanks for listening. See you Monday.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Friday, May 9th. Coming up on the show, Sam Altman's global project to tell man from machine. Have you seen one of these orbs or touched one?
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Friday, May 9th. Coming up on the show, Sam Altman's global project to tell man from machine. Have you seen one of these orbs or touched one?
My colleague Angus Barak has been following Sam Altman's eye scanning project. As the CEO of OpenAI, Altman's had a front-row seat to AI advances, including helping to create chatbots like ChatGPT that sound a whole lot like humans. And that's where Altman saw a potential problem.
My colleague Angus Barak has been following Sam Altman's eye scanning project. As the CEO of OpenAI, Altman's had a front-row seat to AI advances, including helping to create chatbots like ChatGPT that sound a whole lot like humans. And that's where Altman saw a potential problem.
How far away did he think that future was? Because it almost feels like it's here.
How far away did he think that future was? Because it almost feels like it's here.
This man or machine problem has come up in all sorts of areas. On social media, in online dating, e-commerce, education, and gaming.
This man or machine problem has come up in all sorts of areas. On social media, in online dating, e-commerce, education, and gaming.
AI fakes are also becoming a problem in banking.
AI fakes are also becoming a problem in banking.
Altman says he wanted to help solve this problem. And to do it, he co-founded World.
Altman says he wanted to help solve this problem. And to do it, he co-founded World.
So how does World plan to identify real humans on the internet? That is where the orbs come in. How does that process work? How does the scan happen?
So how does World plan to identify real humans on the internet? That is where the orbs come in. How does that process work? How does the scan happen?
Nothing's sold at this store. And what's actually going on inside sounds pretty sci-fi. People are getting their eyes, specifically their irises, scanned by a device called the orb.
Nothing's sold at this store. And what's actually going on inside sounds pretty sci-fi. People are getting their eyes, specifically their irises, scanned by a device called the orb.
World says it then deletes the pictures of your eye. The only thing it says it retains is that individualized code. That iris code can then link to something called a world ID, basically your online proof of humanness. I mean, isn't this just a fancy social security number? Like, why is it better than a passport or a password?
World says it then deletes the pictures of your eye. The only thing it says it retains is that individualized code. That iris code can then link to something called a world ID, basically your online proof of humanness. I mean, isn't this just a fancy social security number? Like, why is it better than a passport or a password?
Not everybody in the world has a passport. Passports can be forged, and they're not standardized around the world. The world ID, on the other hand, could work for anyone, anywhere. Or at least that's the idea. And in Altman's kind of vision of the future, how are people using this code? Like, what's the scenario where I'm being asked to flash my world ID?
Not everybody in the world has a passport. Passports can be forged, and they're not standardized around the world. The world ID, on the other hand, could work for anyone, anywhere. Or at least that's the idea. And in Altman's kind of vision of the future, how are people using this code? Like, what's the scenario where I'm being asked to flash my world ID?
But World had a problem. How to get people to stand in front of an orb and get their eyeballs scanned.
But World had a problem. How to get people to stand in front of an orb and get their eyeballs scanned.
But World had a solution for that, too. It would give people a little extra incentive to get scanned. The project developed its own cryptocurrency called WorldCoin.
But World had a solution for that, too. It would give people a little extra incentive to get scanned. The project developed its own cryptocurrency called WorldCoin.
If you agree to get your eye scanned, you become eligible to claim some free WorldCoin. WorldCoin's value fluctuates based on trading.
If you agree to get your eye scanned, you become eligible to claim some free WorldCoin. WorldCoin's value fluctuates based on trading.
Worlds had a vision, a technology, and a hook to get people to sign up. Now, it just had to start scanning people's eyes. That's next.
Worlds had a vision, a technology, and a hook to get people to sign up. Now, it just had to start scanning people's eyes. That's next.
Last week, a new storefront opened in San Francisco. Our producer Sophie Codner was there. And what brought you into the store today?
Last week, a new storefront opened in San Francisco. Our producer Sophie Codner was there. And what brought you into the store today?
World officially launched in July of 2023. But they didn't start in the U.S., Instead, they went just about everywhere else. Kenya, Argentina, Germany, Spain, Hong Kong. Operators scanned people's eyes in shopping malls and galleries, offering WorldCoin to those who participated. And they found plenty of takers.
World officially launched in July of 2023. But they didn't start in the U.S., Instead, they went just about everywhere else. Kenya, Argentina, Germany, Spain, Hong Kong. Operators scanned people's eyes in shopping malls and galleries, offering WorldCoin to those who participated. And they found plenty of takers.
The orbs are metallic spheres about the size of volleyballs. Inside each one, there's a camera taking high-definition pictures of people's eyes. The goal is to create individualized online IDs for each person based on the unique patterns in their eyes. Did you get your eye scanned?
The orbs are metallic spheres about the size of volleyballs. Inside each one, there's a camera taking high-definition pictures of people's eyes. The goal is to create individualized online IDs for each person based on the unique patterns in their eyes. Did you get your eye scanned?
Governments in some of those countries, though, were less than thrilled.
Governments in some of those countries, though, were less than thrilled.
World says that orbs currently delete photos of participants' eyes. But in some countries, World has allowed people to later opt in and share their eye photos with the project to help train its algorithms. That has raised some issues. Hong Kong, for example, banned World after finding it was retaining iris images for up to a decade.
World says that orbs currently delete photos of participants' eyes. But in some countries, World has allowed people to later opt in and share their eye photos with the project to help train its algorithms. That has raised some issues. Hong Kong, for example, banned World after finding it was retaining iris images for up to a decade.
Authorities in Argentina accused World of having abusive user terms and launched investigations into it. And in Spain, officials accused the project of scanning children's eyes. Let's talk about some of the main concerns. What issues have critics raised with this project?
Authorities in Argentina accused World of having abusive user terms and launched investigations into it. And in Spain, officials accused the project of scanning children's eyes. Let's talk about some of the main concerns. What issues have critics raised with this project?
Alex Blania is a co-founder of The World Project. I asked him about some of the pushback that it's received. What's your response to governments who have been uncomfortable with how you've rolled this out in the past?
Alex Blania is a co-founder of The World Project. I asked him about some of the pushback that it's received. What's your response to governments who have been uncomfortable with how you've rolled this out in the past?
What do you say to someone who might be in an Orb store right now trying to make this decision? Do I hand over to you, Alex Blania, and your company this very sensitive biometric data? What would you say to them?
What do you say to someone who might be in an Orb store right now trying to make this decision? Do I hand over to you, Alex Blania, and your company this very sensitive biometric data? What would you say to them?
It feels sci-fi. And it's your eye.
It feels sci-fi. And it's your eye.
Okay, how'd it go?
Okay, how'd it go?
Should governments be doing this? I mean, you're doing this as a company, but verifying people's identities, you know, ID documents, that's traditionally been the purview of government.
Should governments be doing this? I mean, you're doing this as a company, but verifying people's identities, you know, ID documents, that's traditionally been the purview of government.
All this eye scanning is part of a project called World. It's the brainchild of Sam Altman, the tech visionary and CEO of OpenAI. In Altman's view, what's happening in this San Francisco storefront could be part of the solution to a pressing problem, how to tell humans and AI apart.
All this eye scanning is part of a project called World. It's the brainchild of Sam Altman, the tech visionary and CEO of OpenAI. In Altman's view, what's happening in this San Francisco storefront could be part of the solution to a pressing problem, how to tell humans and AI apart.
So you really do see this as kind of a global infrastructure project?
So you really do see this as kind of a global infrastructure project?
How do you imagine world is going to make money?
How do you imagine world is going to make money?
So Angus, World has just launched in the U.S. finally. Why now?
So Angus, World has just launched in the U.S. finally. Why now?
World is initially launching in Atlanta, Austin, Los Angeles, Miami, Nashville, and of course, in San Francisco, where the orbs have already been booted up. The QR code is invalid. And that means that more people will soon be pondering a choice, to scan or not to scan. Did you have any reservations? Were you debating it at all?
World is initially launching in Atlanta, Austin, Los Angeles, Miami, Nashville, and of course, in San Francisco, where the orbs have already been booted up. The QR code is invalid. And that means that more people will soon be pondering a choice, to scan or not to scan. Did you have any reservations? Were you debating it at all?
Any reservations or fears?
Any reservations or fears?
That's all for today, Friday, May 9th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting in this episode from Sophie Codner. The show is made by Katherine Brewer, Pia Gadkari, Carlos Garcia, Rachel Humphries, Sophie Codner, Brian Knudson, Matt Kwong, Kate Leinbaugh, Colin McNulty,
That's all for today, Friday, May 9th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting in this episode from Sophie Codner. The show is made by Katherine Brewer, Pia Gadkari, Carlos Garcia, Rachel Humphries, Sophie Codner, Brian Knudson, Matt Kwong, Kate Leinbaugh, Colin McNulty,
I had no idea what went into making a parachute for the military.
There is so little margin for error. So, like, if there is a flaw in one of these parachutes, the consequences could be really severe and very, very tragic. You're talking about people's lives who are at stake.
There are many, many steps to making these parachutes. It is repetitive work. It requires a lot of attention and a lot of skill. And it's not work for everyone.
What's been the most difficult parts of making that United Nations work?
— And so that's creating a lot of anxiety and a lot of confusion among workers and their employers. And everyone's trying to figure it out.
It's a meaningful portion of Mills' workforce. These people all work together, and one step is important, and one skill is important.
can't just say, we're going to bring someone new in, even if you can find them, and they're going to be able to, like, step in and fully do the job right away.
I mean, do you think would it take a year, five years, two years?
I think he's very concerned about the impact of these changes in immigration policies on his business, but also on the people who work there. And he kept saying that to me.
Lots and lots and lots. You have big companies that employ people through these kinds of programs. You have small employers that employ people through these kinds of programs. They are scattered all across the country.
I haven't spoken to William since this decision came down, but... I know he wants to stay here. He wants to work here. He wants to work here legally. And he's trying to figure out how to keep his status solid.
And it's and your signs are all in English. Oh, you have it. Wait. So you have multiple languages. So English, Spanish, Moldovan and Russian.
What was Christina Chapman doing with 10 laptops in her spare room? Well, according to a federal indictment... What she's doing is a scam.
The U.S. government says that Christina Chapman was a laptop farmer, and her employer was North Korea.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Tuesday, June 3rd. Coming up on the show, how an everyday American helped North Korea scam corporate America.
In January 2021, Christina Chapman took to TikTok to check in with her followers. Her financial situation was precarious.
But Chapman's situation was about to turn around. In fact, the answer to her financial troubles had arrived just a few months before she posted that video, in the form of a social media message.
We do know that Chapman agreed to help out. And according to court documents, we know who that message came from. North Korean scammers. Chapman had stumbled into what's become a vast scam designed to bring hundreds of millions of dollars into North Korea. It took off during the pandemic, when many U.S. tech jobs moved online. And it works like this.
North Koreans trained in IT apply for remote jobs in the U.S. Those workers get hired, start work, and get paid, all under false identities.
And do they do the job?
According to the FBI, their paychecks likely get funneled to the North Korean regime, where the money may help fund things like the country's nuclear weapons program.
What kind of stuff?
These North Korean scammers have been able to infiltrate a wide range of industries, from retail to the auto industry, even to cybersecurity.
That is wild to me. Imagine being a North Korean hacker and applying for a job at a cybersecurity company.
The U.S. cybersecurity company CrowdStrike shared a video with the journal. It shows just how adept North Korean scammers have become at acing job interviews.
Scammers have no problem doing interviews, showing up for Zoom meetings, and coding remotely. But there are some tasks that they can't do, tasks that require them to be physically present in the U.S. But the scammers have found a way around this, too.
One key hire is the laptop farmer. How important is the laptop farmer in all of this?
Laptop farmers help make that happen. They receive North Koreans' work laptops and help set them up so that the scammers can operate them remotely. They also help with logging on in the morning and logging off at night. And that's what Christina Chapman did.
Bob, can you tell me about this influencer you've been watching on TikTok?
After she got that LinkedIn message, Chapman became one of what researchers estimate could be dozens of laptop farmers who've cropped up all across the U.S.
But according to the indictment, that was just the beginning.
How laptop farming transformed Chapman's life? That's after the break. By January 2023, Christina Chapman was much more than a veteran laptop farmer. She was like an HR representative, administrative assistant, and tech support all rolled into one person.
Our colleague Bob McMillan covers cybersecurity. And there's one video of Chapman's in particular that he says is a bit unusual. On its face, it's pretty innocuous. Chapman's showing her followers some breakfast that she picked up.
Chapman's total earnings amounted to just under $177,000 over two years. With that money, she was able to move into a four-bedroom house in Phoenix with a roommate. It even had a yard for her three chihuahuas, Henry, Serenity, and Burrito. And she could afford to treat herself once in a while.
Chapman opens the packaging to reveal a $72 green ring.
That same day, Chapman posted about going to a comedy show where drunken actors perform Shakespeare.
Such a contrast from the woman who was crying on the TikTok and now can afford to have the queen seat.
But then, in October of 2023, Chapman's life took yet another turn.
In early 2024, Chapman was arrested and charged with fraud, identity theft, and money laundering. She pleaded guilty. She's due to be sentenced next month and could face just over nine years in prison. Did she know she was doing the bidding of the North Koreans?
Without her laptop farming job, Chapman found herself back in a familiar situation, trying to string together enough gig work to make ends meet.
According to her attorney, Chapman is currently living at a homeless shelter. She's right back where she started.
Now that this has become such a pervasive problem, how are government agencies and companies fighting back against this North Korean remote worker scam?
For any boss who's been looking for an excuse to bring people back to the office, this is it.
That's all for today, Tuesday, June 3rd. The Journal is a co-production of Spotify and The Wall Street Journal. If you like the show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.
How soon after Trump began imposing sweeping tariffs did people in your world, the legal world, start asking, wait a second, can he do that?
Typically, Congress regulates tariffs. But in this case, Trump argued that he could do it. His administration invoked a 1970s-era law, the International Emergency Economic Powers Act, IEPA for short.
When President Trump invoked the Emergency Economic Powers Act, had we ever seen anything like that before? How new was that?
It was a first, and the move raised eyebrows. Some academics and legal groups started looking into whether the tariffs could be challenged in court. That led to a few lawsuits, including one brought by a libertarian nonprofit law firm called the Liberty Justice Center. That suit brought together a group of small businesses to sue the government.
So they could really cover their ground with these five companies.
A few weeks ago, James visited the Court of International Trade, that obscure court in lower Manhattan. He was there to watch as the plaintiffs in the Trump administration made their case before a panel of three judges. And what argument did those five businesses make?
— The businesses also disputed Trump's claim that the country is in the middle of an emergency.
And what did the government argue in response to that?
The court is obscure, but when it comes to matters of trade, it's powerful.
But there was also a larger argument that the government wanted to make, an argument about executive power.
There's a squat, boxy building in New York City, a relatively unimposing courthouse tucked into Lower Manhattan. It's called the U.S. Court of International Trade. And you'd be forgiven if you've never heard of it. Neither had our legal reporter, James Finelli.
The government's lawyer responded that IEPA set out clear boundaries for exercising presidential power. The court issued its ruling on Wednesday night. Its verdict? Trump did not have the authority to impose tariffs under the Emergency Economic Powers Act.
In response to the ruling, a White House spokesman said, quote, it is not for unelected judges to decide how to properly address a national emergency, unquote. Lawyers for the Trump administration immediately appealed the court's decision. They also requested a stay that would keep the tariffs in place temporarily.
Yesterday, they got that stay, which will remain in place as the case works its way through the courts.
But in the meantime, the Trump administration does have a plan B. That plan is after the break. So could you start by introducing yourself?
So you're not busy at all.
Gavin has been tracking the administration's moves in the aftermath of the International Trade Court's decision. Gavin, the administration is in the middle of trade negotiations right now with the European Union, with China. How could this ruling impact those talks?
And this week, it did.
So was the administration right in that court filing? Like, does this decision make it less likely that countries will want to make a deal?
The Trump administration will continue to pursue the case through the courts. But according to people Gavin's talked to, the administration is also working on a potential Plan B. This plan wouldn't rely on IEPA. It would rely on yet another law from the 1970s, the Trade Act of 1974.
This section, the first part of the plan, allows the president to put tariffs in place for 150 days.
The problem, of course, is that those tariffs would be temporary unless they're reauthorized by Congress.
Trump has actually used this section of the law before. He used it to impose tariffs on China during his first term. But implementing tariffs this way takes time and work.
So Gavin, where does this all leave Trump's signature economic policy of these sweeping tariffs?
That's all for today, Friday, May 30th. The Journal is a co-production of Spotify and The Wall Street Journal. The shows made by Catherine Brewer, Pia Gadkari, Carlos Garcia, Rachel Humphries, Ryan Knudsen, Sophie Codner, Matt Kwong, Kate Leinbaugh, Colin McNulty, Jessica Mendoza, Laura Morris, Enrique Perez de la Rosa, Sarah Platt, Alan Rodriguez-Espinoza,
Heather Rogers, Pierce Singey, Jivika Verma, Lisa Wang, Catherine Whalen, Tatiana Zamise, and me, Annie Minoff. Our engineers are Griffin Tanner, Nathan Singapak, and Peter Leonard. Our theme music is by So Wiley. Additional music this week from Catherine Anderson, Peter Leonard, Billy Libby, Nathan Singapak, Haley Shaw, Griffin Tanner, and Blue Dot Sessions.
Fact-checking this week by Kate Gallagher and Mary Mathis. Thanks for listening. See you Monday.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Friday, May 30th. Coming up on the show, how an obscure court upended Trump's trade agenda. On April 2nd, Trump imposed his Liberation Day tariffs and kicked off a global trade war.
We're on a culinary journey.
Problem solved.
Like, what do you do if you wake up and your credit score just plummets because of your student loans?
What came first, the chicken or the egg? Well, the egg came first in this story. CalMain Foods, the egg company, shares are soaring this year up 64%.
What do you hope that people will take away from this interview and from hearing Jonathan?
That's all for today, Thursday, May 15th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting from Robert Barba, Alison Sider, and Bodhi Atwe. Thanks for listening. See you tomorrow.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Thursday, May 15th. Coming up on the show, the chaos at Newark through the eyes of an air traffic controller.
That's aviation reporter Andrew Tangle. He sat down with air traffic controller Jonathan Stewart earlier this week to talk about what's been going on at Newark. The circumstances of their conversation were a bit unusual. As the interview kicked off, Jonathan smoked a cigar while gunfire went off in the background.
In late April, the radios that controllers used to talk to airplanes went silent. And the radar they used to guide the planes suddenly went dark.
Jonathan has been in air traffic control for 25 years. He started his career in the Air Force in the late 90s.
Jonathan describes airspace like the layers of a cake, with each layer managed by a dedicated team of controllers. The people in the towers at the airport, they're in charge of the bottom layer, where the planes take off and touch down. But Jonathan, he's in the layer above that. He's what's known as a radar controller.
This video game is especially intense at Newark, which is some of the busiest airspace in the world.
Controllers were in the dark for a harrowing 90 seconds. Then last week, it happened again. Another outage earlier this morning. And then just a few days ago, another malfunction. Another technical issue at Newark Airport today forcing a 45-minute ground stop, leading to more delays and cancellations. Government officials say they're working to fix the equipment problems.
But lately, Jonathan says that he and other controllers have been pushed beyond their limits. Throughout the country, air traffic control facilities are understaffed. The FAA has almost 11,000 fully certified controllers, but that's about 3,000 short of its target.
Staffing shortages at Newark aren't just a problem for controllers like Jonathan. Our colleague Andrew says they're also a problem for travelers.
And so to try to fix the staffing problem, the FAA made a big move. Last year, it moved oversight of Newark's airspace from Long Island, where it had been for years, to Philadelphia.
But this move to Philly also created some unforeseen consequences.
Over the last few weeks, a crisis has unfolded just outside New York City at Newark Liberty International Airport.
Instead of having its own radar, the new facility would rely on a link from Long Island. But that link wasn't always reliable. That became frighteningly clear in late April, when those Newark controllers lost their radar and radios for about 90 seconds.
For the controllers involved, the ongoing glitches around Newark Airport have been harrowing.
And the CEO of United Airlines, which has a major hub at Newark, has personally tried to reassure the public. In an email to customers, he said that it is, quote, absolutely safe to fly out of the airport. But there's another voice that you don't often hear from after incidents like this. The people on the front lines of air safety. And this week, the Journal sat down with one of them.
Air traffic controllers can take trauma leave after an incident to look after their mental health. Earlier this month, United Airlines CEO Scott Kirby said that workers taking trauma leave had made the staffing situation at Newark worse. He described controllers as having, quote, walked off the job.
That comment rubbed Jonathan the wrong way.
We asked United about CEO Scott Kirby's comment. A United spokesman pointed to Kirby's more recent statements calling for better equipment and working conditions for air traffic controllers.
Jonathan was speaking from experience. When Andrew interviewed him, Jonathan was also on trauma leave after a scary incident of his own. That's after the break.
It wasn't just the long hours that were wearing Jonathan down, though. Since the technical glitches, he'd been doing a more complicated version of his job. Beyond the usual radar procedure, Jonathan was using pen and paper techniques to track aircraft, just in case an outage happened again.
A nose-to-nose situation, meaning two planes were at risk of a mid-air collision. Leading up to this moment, Jonathan had been monitoring two planes departing out of two New Jersey airports, a business jet and another small plane. The two aircraft were taking off around the same time. Jonathan was in charge of making sure that they stayed out of each other's way.
But before he knew it, the aircraft were at the same altitude and at risk of colliding.
After the incident, Jonathan filed an internal report saying that the situation at the Philadelphia control facility was unsafe. An FAA spokesperson told the journal that Jonathan's report is under review and that the agency takes safety reports seriously. Jonathan says these kinds of experiences can be traumatic.
Jonathan says that flying is still statistically the safest way to travel. And he says he's been reassured by recent steps taken by the FAA. Last week, the FAA said that it's working to increase staffing levels at Newark. It's also adding temporary backup systems to prevent more outages and eventually new high-bandwidth connections between Philadelphia and New York.
Transportation Secretary Sean Duffy also announced plans to upgrade air traffic control infrastructure nationwide. He said the Philadelphia facility overseeing Newark would be a priority in those plans.
Laura Morris, Enrique Perez de la Rosa, Sarah Platt, Alan Rodriguez-Espinosa, Heather Rogers, Pierce Singey, Jivika Verma, Jessica Mendoza, Lisa Wang, Catherine Whalen, Tatiana Zamise, and me, Annie Minoff, with help from Trina Menino. Our engineers are Griffin Tanner, Nathan Singapak, and Peter Leonard. Our theme music is by So Wiley.
Additional music this week from Catherine Anderson, Peter Leonard, Billy Libby, Bobby Lord, Emma Munger, Griffin Tanner, Nathan Singapak, Audio Network, and Blue Dot Sessions. Fact Checking by Mary Mathis. Thanks for listening. See you Monday.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Friday, May 9th. Coming up on the show, Sam Altman's global project to tell man from machine. Have you seen one of these orbs or touched one?
My colleague Angus Barak has been following Sam Altman's eye scanning project. As the CEO of OpenAI, Altman's had a front-row seat to AI advances, including helping to create chatbots like ChatGPT that sound a whole lot like humans. And that's where Altman saw a potential problem.
How far away did he think that future was? Because it almost feels like it's here.
This man or machine problem has come up in all sorts of areas. On social media, in online dating, e-commerce, education, and gaming.
AI fakes are also becoming a problem in banking.
Altman says he wanted to help solve this problem. And to do it, he co-founded World.
So how does World plan to identify real humans on the internet? That is where the orbs come in. How does that process work? How does the scan happen?
Nothing's sold at this store. And what's actually going on inside sounds pretty sci-fi. People are getting their eyes, specifically their irises, scanned by a device called the orb.
World says it then deletes the pictures of your eye. The only thing it says it retains is that individualized code. That iris code can then link to something called a world ID, basically your online proof of humanness. I mean, isn't this just a fancy social security number? Like, why is it better than a passport or a password?
Not everybody in the world has a passport. Passports can be forged, and they're not standardized around the world. The world ID, on the other hand, could work for anyone, anywhere. Or at least that's the idea. And in Altman's kind of vision of the future, how are people using this code? Like, what's the scenario where I'm being asked to flash my world ID?
But World had a problem. How to get people to stand in front of an orb and get their eyeballs scanned.
But World had a solution for that, too. It would give people a little extra incentive to get scanned. The project developed its own cryptocurrency called WorldCoin.
If you agree to get your eye scanned, you become eligible to claim some free WorldCoin. WorldCoin's value fluctuates based on trading.
Worlds had a vision, a technology, and a hook to get people to sign up. Now, it just had to start scanning people's eyes. That's next.
Last week, a new storefront opened in San Francisco. Our producer Sophie Codner was there. And what brought you into the store today?
World officially launched in July of 2023. But they didn't start in the U.S., Instead, they went just about everywhere else. Kenya, Argentina, Germany, Spain, Hong Kong. Operators scanned people's eyes in shopping malls and galleries, offering WorldCoin to those who participated. And they found plenty of takers.
The orbs are metallic spheres about the size of volleyballs. Inside each one, there's a camera taking high-definition pictures of people's eyes. The goal is to create individualized online IDs for each person based on the unique patterns in their eyes. Did you get your eye scanned?
Governments in some of those countries, though, were less than thrilled.
World says that orbs currently delete photos of participants' eyes. But in some countries, World has allowed people to later opt in and share their eye photos with the project to help train its algorithms. That has raised some issues. Hong Kong, for example, banned World after finding it was retaining iris images for up to a decade.
Authorities in Argentina accused World of having abusive user terms and launched investigations into it. And in Spain, officials accused the project of scanning children's eyes. Let's talk about some of the main concerns. What issues have critics raised with this project?
Alex Blania is a co-founder of The World Project. I asked him about some of the pushback that it's received. What's your response to governments who have been uncomfortable with how you've rolled this out in the past?
What do you say to someone who might be in an Orb store right now trying to make this decision? Do I hand over to you, Alex Blania, and your company this very sensitive biometric data? What would you say to them?
It feels sci-fi. And it's your eye.
Okay, how'd it go?
Should governments be doing this? I mean, you're doing this as a company, but verifying people's identities, you know, ID documents, that's traditionally been the purview of government.
All this eye scanning is part of a project called World. It's the brainchild of Sam Altman, the tech visionary and CEO of OpenAI. In Altman's view, what's happening in this San Francisco storefront could be part of the solution to a pressing problem, how to tell humans and AI apart.
So you really do see this as kind of a global infrastructure project?
How do you imagine world is going to make money?
So Angus, World has just launched in the U.S. finally. Why now?
World is initially launching in Atlanta, Austin, Los Angeles, Miami, Nashville, and of course, in San Francisco, where the orbs have already been booted up. The QR code is invalid. And that means that more people will soon be pondering a choice, to scan or not to scan. Did you have any reservations? Were you debating it at all?
Any reservations or fears?
That's all for today, Friday, May 9th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting in this episode from Sophie Codner. The show is made by Katherine Brewer, Pia Gadkari, Carlos Garcia, Rachel Humphries, Sophie Codner, Brian Knudson, Matt Kwong, Kate Leinbaugh, Colin McNulty,
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Thursday, May 8th. Coming up on the show, what happened when Nike tried to make shoes closer to home? My colleague John is not what you would call a sneakerhead.
You're a my wife found a sale guy. Nice. But ever since John moved to Singapore, he's been learning more about the business side of the sneaker game.
Why is that?
That's because shoes are complicated. A single shoe can incorporate a range of materials, from squishy foams to flexible plastics.
Most of those shoes are made in Asia, in three countries, Vietnam, Indonesia, and China.
For years, shoemakers thrived in Asia. But about a decade ago, several sneaker companies, Adidas, Under Armour, and Nike, all tried to make shoes in a new place and in a new way. all three shoe companies decided to bring some production to North America.
One reason to try something different, wages were rising in Asia.
For a long time, setting up factories in North America was cost prohibitive.
Of all the shoe companies, Nike's automation effort was the biggest. In 2015, the company set up a factory, not in the United States, but close by, in Guadalajara, Mexico. Wages in Mexico are higher than in most of Southeast Asia, but they're lower than in the U.S. Plus, it would be faster to ship shoes from Mexico to Nike's American customers. And what was Nike's goal?
That's my colleague, John Emont.
Like, how much manufacturing did they want to shift back to North America?
That's ambitious.
According to John's reporting, some within Nike hoped that the Mexican factory would serve as a stepping stone.
To help them set up that Guadalajara factory, Nike partnered with a company called Flex.
One of the people who worked on that Apple project was Tom Fletcher.
Tom would go on to work on the Nike factory. So you'd built complicated stuff in North America before?
And so going into this project of trying to build shoes in North America, how are you feeling? Did it seem doable?
Tough but possible?
That's the way most modern shoemaking is done. Shoes are crafted in factories in Asia by tens of thousands of laborers making relatively low wages. And those shoes are then shipped and sold all over the world. But President Trump would like to change that.
Tom's main challenge was to figure out how to replace humans with robots. His goal was to have fewer than 3,000 workers. To start, he flew to China, Indonesia, and Vietnam to tour Nike's factories there. And he saw firsthand the scale of the human labor that Nike was used to.
But getting rid of all those toothbrushes and all those workers wasn't as simple as Tom imagined.
Americans love their sneakers. These are blue Adidas Campus O's. I'm literally obsessed with these.
By 2016, Nike and Flex had set up a sneaker factory in Guadalajara, Mexico. But it didn't take long for the project to run into problems.
That's our colleague John again.
The project's success hinged on Nike's ability to cut costs, including by replacing humans with machines. But that was turning out to be easier said than done. For example, an early challenge was getting robots to attach the Nike swoosh to the side of the shoe. Here's Tom from Flex.
It took Tom and his team eight months to figure out an automated way to add the Nike swoosh to one specific shoe model.
Now the swoosh is slightly to the right. Fine.
Another problem was fashion. At Nike, design was king. And the company didn't want to be limited by what robots could handle.
Robots are a lot less accommodating. All of these challenges added up. So in 2019, Nike packed up from the Mexico facility and went back to focusing on making shoes in Asia. According to Tom, the factory never hit its targets. The company produced fewer than 200,000 pairs of shoes in its Mexico factory and never reduced the workforce there below 3,000 people.
They also never achieved Tom's goal of automating all those toothbrushes out of the production line. Was it a surprise that robots weren't better at shoemaking?
Nike wasn't the only shoe company to throw in the towel. Adidas and Under Armour had set up similar projects around the same time. And they actually did set them up in the U.S. Adidas in Atlanta and Under Armour in Baltimore. Under Armour called their effort Project Glory. Did they have better luck?
Though some of Trump's tariffs have been paused, shoe companies are still facing pressure to move production back home. but actually making shoes in North America would be incredibly tough to pull off. And shoemakers know that from experience.
Adidas, Under Armour, and Nike declined to comment on their past reshoring efforts. All three companies refocused on Asia. And that might have been the end of the story. Except... Tariff.
Tom from Flex said that when he first heard about the tariffs, including on Vietnam, Indonesia, and China, he had to laugh.
So a big goal of these tariffs, according to Trump, is to bring manufacturing back to America. How hard is that going to be? Like, what's that going to take to happen?
— Representatives from Nike and Under Armour said that the companies are working out responses to tariffs. John says we shouldn't expect North American-made sneakers to become the norm anytime soon.
That's all for today, Thursday, May 8th. The Journal is a co-production of Spotify and The Wall Street Journal. If you like our show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.
Oh, my God.
If I die, I hope you guys turn this into a meme coin.
Hey, it's Jess. Annie Minoff, one of our senior producers, is going to be stepping in to do some hosting this summer while Ryan is out on leave. Enjoy. Every year, a ski resort nestled in the Swiss Alps hosts the world's biggest party for the rich and powerful. Some people call it the Magic Mountain. Most people know it better as Davos.
But as Shalini discovered, there was a lot more happening behind the scenes. She and our colleagues have been investigating allegations of sexism, racism, and harassment at the organization that runs Davos, an organization called the World Economic Forum.
And now, after a fresh round of allegations, a major leadership shakeup is underway.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Wednesday, April 30th. Coming up on the show, the boardroom drama and leadership crisis, rocking Davos. The World Economic Forum, the nonprofit that runs the Davos Conference, has been around for more than half a century.
Today, it has over 800 employees and takes in hundreds of millions of dollars, much of it from partner companies that pay big bucks to attend Davos. But the organization started small.
At the time, Klaus Schwab was a German engineer and economist, broad-shouldered with glasses and a dour expression.
Schwab's time growing up in Europe after the war shaped his views on the power of global cooperation to rebuild economies. And that experience gave him a big idea.
And so the Davos meeting was born. These days, it hosts 3,000 leaders from over 130 countries. And as Davos' importance increased, so too has Schwab's. Schwab is 87 now, and not exactly a household name. But his role at the top of the World Economic Forum has made him one of the best-connected people in the world, with a Rolodex that includes everyone from royals to rock stars.
But as Schwab and his organization worked to shine a light on the world's problems, Shalini started hearing about problems within the forum itself.
One former employee, a Black woman, described an incident in which a boss, brandishing matches, asked if he could set her wig on fire.
The Forum told the Journal last year that they weren't aware of the allegations. The employee eventually chose to leave the organization. And then there was a story an employee told about a strange encounter in 2010 during a flu vaccination drive.
According to a complaint sent to Schwab and forum leaders, the woman only realized she'd been duped when the real doctor walked in. According to the complaint, the manager later brushed it off as a joke.
The Forum told the journal last year that the incident was a misunderstanding. Documents show that the executive was reprimanded and had his bonus reduced. Some current and former employees told Shalini about alleged incidents involving Schwab himself. One woman described a meeting in which Schwab propped his leg up on her desk with his crotch in front of her face.
According to her account, Schwab told her he'd like to see her wearing what he called a Hawaiian costume. The woman said Schwab had told her more than once, quote, Two other employees also confirmed they saw Schwab strike the crotch pose in front of the staffer and other women. For their investigation, Shalini and her colleagues interviewed more than 80 current and former employees.
They also reviewed documents such as HR complaints, internal emails, and text messages. So you publish your article outlining what these ex and current employees have told you they experienced. What happened next?
At the time, the Forum disputed the journal's reporting. A spokesperson told the journal that the article mischaracterized the organization, as well as Schwab. It called the claims vague and false and said Schwab never made sexual advances. Last year, the Forum's board created a special committee and hired a law firm to investigate its workplace culture.
Recently, it said that review had concluded, and it shook up its senior leadership. The final report was never publicly released. Earlier this month, Schwab announced that he would transition out of his role at the forum. But it wouldn't be immediate. He planned to step down by 2027. At this point, after this investigation by the forum, how are things looking for Schwab?
And then, just this month, a bombshell.
What was in that letter? That's after the break.
A few weeks ago, the World Economic Forum's board received a letter In it, current and former employees repeated some of the allegations the journal had reported. But the letter also contained fresh accusations, this time leveled directly at the boss.
We feel compelled, the letter said, to share a comprehensive account of systemic governance failures and abuses of power that have taken place over many years under the unchecked authority of Klaus Schwab. The letter alleged that Schwab and his wife, Hilda Schwab, mixed their personal affairs with World Economic Forum resources without proper oversight.
The whistleblower letter also mentioned a sprawling estate overlooking Lake Geneva called Villa Mundi. The forum bought the modernist building for $30 million and spent another $20 million on renovations.
The Schwabs deny all these allegations. A spokesman for the family said that Klaus Schwab intends to sue whoever is behind the anonymous letter. The spokesman also said that when Schwab charged massages to the forum, he always paid them back. As far as the Villa Mundi property, he said the Schwabs live nearby and have only used the estate for forum-related events.
The whistleblower letter ignited a new crisis at the forum, one that's pitting Klaus Schwab against many members of the organization's board.
At an emergency board meeting on Easter Sunday, the board decided to open an investigation into Schwab. Schwab then resigned. The board has appointed a former Nestle CEO as the forum's interim leader. What could all of this mean for the World Economic Forum long term? Like, will people still go to Davos?
Over the years, the Davos Conference has taken on big topics. Peace in the Middle East, climate change, gender equality, And they've touted big wins. Organizers have taken credit for major diplomatic breakthroughs, including averting conflict between Greece and Turkey and bringing together the leaders of East and West Germany after the fall of the Berlin Wall.
And this is all happening at a time when there's been a lot of criticism of events like Davos. Like they've kind of been slammed as these meetings of out-of-touch elites.
That's all for today, Wednesday, April 30th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting in this episode from Khadija Softar, Jenny Strasberg, Suzanne Vranica, and Anna Maria Andriotis. Special thanks to George Downs. Thanks for listening. See you tomorrow.
I have a question. Who's ready?
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Tuesday, April 29th. Coming up on the show, how Canada's Prime Minister won by standing up to President Trump. Historically, the relationship between Canada and the U.S. has been pretty cozy.
Who's ready? Last night, Mark Carney celebrated his victory in Canada's election at a hockey arena in Ottawa.
The two countries' economic ties also run deep. Eighty percent of Canada's exports go to the U.S.,
That's how it used to be. But recently, the US-Canada relationship has taken a big hit. Soon after coming into office, President Trump started imposing tariffs on America's trading partners, including Canada.
Who's ready to stand up for Canada with me?
But it wasn't just economic. Trump also threatened Canada in a way that was much more existential.
And so how have Canadians been feeling about their southern neighbor, the U.S.?
Some Canadians have started wearing blue Canada is not for sale hats. Others are boycotting American whiskey. And instead of selling Americanos, some coffee shops are selling Canadianos. That was the backdrop to Canada's election. And as a candidate, Mark Carney was able to tap into Canadians' anger.
Carney, who had already been leading the Liberal Party, will continue to serve as prime minister. But a surprising portion of his acceptance speech wasn't focused on Canada.
We are facing the most significant crisis of our lifetimes because of President Trump's unjustified trade actions and his threats to our sovereignty.
And so let's talk a bit about Carney. What's his background?
Carney would go on to run Canada's central bank. This was at a crucial moment during the 2008 global financial crisis.
Imagine such a thing.
America wants our land, our resources, our water, our country.
Carney would run that bank during another crisis, Brexit.
Then, Carney got a chance to lead on his home turf. Justin Trudeau has announced he's stepping down as the prime minister of Canada and as the leader of his party. After Trudeau's resignation earlier this year, Carney stepped in to replace him, and he soon called for an election.
In only five weeks, Carney gained enough support to win. Was Carney's rise surprising to you?
So how is Carney planning to take on Trump? That's next.
And what was Carney's speech like?
Carney went on the message that he would stand up for Canada and its economy. But that economy was shaky even before Trump took office.
Our colleague Vipal Manga was there.
And tariffs, I would imagine, have made that worse.
Carney has already taken some action against Trump's tariffs. He imposed counter-tariffs against the U.S. earlier this month. And he's looking to strike a new trade deal with Trump.
So as the trade relationship with the U.S. becomes shakier and something that Canada can't rely on, Carney's looking to deepen that relationship with other countries.
But could any of these potential deals with other countries or blocs like Europe actually replace the U.S.?
So he's looking to diversify the trade relationships, but that only goes so far.
What about this idea that Trump has floated repeatedly of making Canada the 51st state? What can you expect to see from Carney about that?
President Trump is trying to break us so that America can own us. That will never, that will never, ever happen.
Carney's liberal party fell short of a majority in the parliament. That means that Carney will have to work with rival politicians to get things done. How much can Carney really do when it comes to standing up to Trump? How much leverage does he have? How much power does he have?
We are over the shock of the American betrayal, but we should never forget the lessons.
What could this moment and Carney's election mean for U.S.-Canada relations?
Before we go, our series Trump 2.0 is wrapping this week. If you have any questions about the Trump administration and how its first 100 days in power went, email us and let us know. Please send a voice note to thejournal at wsj.com. That's thejournal at wsj.com. That's all for today, Tuesday, April 29th. The Journal is a co-production of Spotify and The Wall Street Journal.
If you like our show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.