Annie Minoff
Appearances
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
And now, after a fresh round of allegations, a major leadership shakeup is underway.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
At the time, Klaus Schwab was a German engineer and economist, broad-shouldered with glasses and a dour expression.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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 Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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 Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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 Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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 Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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?
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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?
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
And then, just this month, a bombshell.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
What was in that letter? That's after the break.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic 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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic 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 Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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 Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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 Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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 Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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?
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Behind the Scenes at Davos, Claims of a Toxic Boss
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.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
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.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
Who's ready? Last night, Mark Carney celebrated his victory in Canada's election at a hockey arena in Ottawa.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
The two countries' economic ties also run deep. Eighty percent of Canada's exports go to the U.S.,
The Journal.
Canada’s New Leader Is Ready To Take on Trump
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.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
Who's ready to stand up for Canada with me?
The Journal.
Canada’s New Leader Is Ready To Take on Trump
But it wasn't just economic. Trump also threatened Canada in a way that was much more existential.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
And so how have Canadians been feeling about their southern neighbor, the U.S.?
The Journal.
Canada’s New Leader Is Ready To Take on Trump
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.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
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.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
We are facing the most significant crisis of our lifetimes because of President Trump's unjustified trade actions and his threats to our sovereignty.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
And so let's talk a bit about Carney. What's his background?
The Journal.
Canada’s New Leader Is Ready To Take on Trump
Carney would go on to run Canada's central bank. This was at a crucial moment during the 2008 global financial crisis.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
America wants our land, our resources, our water, our country.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
Carney would run that bank during another crisis, Brexit.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
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.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
In only five weeks, Carney gained enough support to win. Was Carney's rise surprising to you?
The Journal.
Canada’s New Leader Is Ready To Take on Trump
So how is Carney planning to take on Trump? That's next.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
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.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
And tariffs, I would imagine, have made that worse.
The Journal.
Canada’s New Leader Is Ready To Take on 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.
The Journal.
Canada’s New Leader Is Ready To Take on 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.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
But could any of these potential deals with other countries or blocs like Europe actually replace the U.S.?
The Journal.
Canada’s New Leader Is Ready To Take on Trump
So he's looking to diversify the trade relationships, but that only goes so far.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
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?
The Journal.
Canada’s New Leader Is Ready To Take on Trump
President Trump is trying to break us so that America can own us. That will never, that will never, ever happen.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
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?
The Journal.
Canada’s New Leader Is Ready To Take on Trump
We are over the shock of the American betrayal, but we should never forget the lessons.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
What could this moment and Carney's election mean for U.S.-Canada relations?
The Journal.
Canada’s New Leader Is Ready To Take on Trump
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.
The Journal.
Canada’s New Leader Is Ready To Take on Trump
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.
The Journal.
Eggs Are Still Expensive. Is This Company to Blame?
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%.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
What do you hope that people will take away from this interview and from hearing Jonathan?
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
Jonathan has been in air traffic control for 25 years. He started his career in the Air Force in the late 90s.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
This video game is especially intense at Newark, which is some of the busiest airspace in the world.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
Staffing shortages at Newark aren't just a problem for controllers like Jonathan. Our colleague Andrew says they're also a problem for travelers.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
But this move to Philly also created some unforeseen consequences.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
Over the last few weeks, a crisis has unfolded just outside New York City at Newark Liberty International Airport.
The Journal.
An Air Traffic Controller Speaks Out About Newark 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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
For the controllers involved, the ongoing glitches around Newark Airport have been harrowing.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
That comment rubbed Jonathan the wrong way.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
But before he knew it, the aircraft were at the same altitude and at risk of colliding.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
An Air Traffic Controller Speaks Out About Newark Airport
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.
The Journal.
Made in America? Shoe Companies Already Tried That.
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.
The Journal.
Made in America? Shoe Companies Already Tried That.
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.
The Journal.
Made in America? Shoe Companies Already Tried That.
That's because shoes are complicated. A single shoe can incorporate a range of materials, from squishy foams to flexible plastics.
The Journal.
Made in America? Shoe Companies Already Tried That.
Most of those shoes are made in Asia, in three countries, Vietnam, Indonesia, and China.
The Journal.
Made in America? Shoe Companies Already Tried That.
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.
The Journal.
Made in America? Shoe Companies Already Tried That.
One reason to try something different, wages were rising in Asia.
The Journal.
Made in America? Shoe Companies Already Tried That.
For a long time, setting up factories in North America was cost prohibitive.
The Journal.
Made in America? Shoe Companies Already Tried That.
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?
The Journal.
Made in America? Shoe Companies Already Tried That.
Like, how much manufacturing did they want to shift back to North America?
The Journal.
Made in America? Shoe Companies Already Tried That.
According to John's reporting, some within Nike hoped that the Mexican factory would serve as a stepping stone.
The Journal.
Made in America? Shoe Companies Already Tried That.
To help them set up that Guadalajara factory, Nike partnered with a company called Flex.
The Journal.
Made in America? Shoe Companies Already Tried That.
One of the people who worked on that Apple project was Tom Fletcher.
The Journal.
Made in America? Shoe Companies Already Tried That.
Tom would go on to work on the Nike factory. So you'd built complicated stuff in North America before?
The Journal.
Made in America? Shoe Companies Already Tried That.
And so going into this project of trying to build shoes in North America, how are you feeling? Did it seem doable?
The Journal.
Made in America? Shoe Companies Already Tried 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.
The Journal.
Made in America? Shoe Companies Already Tried 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.
The Journal.
Made in America? Shoe Companies Already Tried That.
But getting rid of all those toothbrushes and all those workers wasn't as simple as Tom imagined.
The Journal.
Made in America? Shoe Companies Already Tried That.
Americans love their sneakers. These are blue Adidas Campus O's. I'm literally obsessed with these.
The Journal.
Made in America? Shoe Companies Already Tried That.
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.
The Journal.
Made in America? Shoe Companies Already Tried That.
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 Journal.
Made in America? Shoe Companies Already Tried That.
It took Tom and his team eight months to figure out an automated way to add the Nike swoosh to one specific shoe model.
The Journal.
Made in America? Shoe Companies Already Tried That.
Now the swoosh is slightly to the right. Fine.
The Journal.
Made in America? Shoe Companies Already Tried That.
Another problem was fashion. At Nike, design was king. And the company didn't want to be limited by what robots could handle.
The Journal.
Made in America? Shoe Companies Already Tried That.
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.
The Journal.
Made in America? Shoe Companies Already Tried That.
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?
The Journal.
Made in America? Shoe Companies Already Tried That.
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?
The Journal.
Made in America? Shoe Companies Already Tried That.
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.
The Journal.
Made in America? Shoe Companies Already Tried That.
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.
The Journal.
Made in America? Shoe Companies Already Tried That.
Tom from Flex said that when he first heard about the tariffs, including on Vietnam, Indonesia, and China, he had to laugh.
The Journal.
Made in America? Shoe Companies Already Tried That.
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?
The Journal.
Made in America? Shoe Companies Already Tried That.
— 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.
The Journal.
Made in America? Shoe Companies Already Tried That.
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.
The Journal.
In Crypto’s Darkest Corner, A Suicide Became a Meme Coin
If I die, I hope you guys turn this into a meme coin.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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?
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
How far away did he think that future was? Because it almost feels like it's here.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
This man or machine problem has come up in all sorts of areas. On social media, in online dating, e-commerce, education, and gaming.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
AI fakes are also becoming a problem in banking.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
Altman says he wanted to help solve this problem. And to do it, he co-founded World.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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?
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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?
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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?
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
But World had a problem. How to get people to stand in front of an orb and get their eyeballs scanned.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
If you agree to get your eye scanned, you become eligible to claim some free WorldCoin. WorldCoin's value fluctuates based on trading.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
Last week, a new storefront opened in San Francisco. Our producer Sophie Codner was there. And what brought you into the store today?
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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 Journal.
Why Sam Altman Wants to Scan Your Eyeball
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 Journal.
Why Sam Altman Wants to Scan Your Eyeball
Governments in some of those countries, though, were less than thrilled.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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.
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Why Sam Altman Wants to Scan Your Eyeball
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?
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Why Sam Altman Wants to Scan Your Eyeball
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?
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Why Sam Altman Wants to Scan Your Eyeball
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?
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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.
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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.
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Why Sam Altman Wants to Scan Your Eyeball
So you really do see this as kind of a global infrastructure project?
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Why Sam Altman Wants to Scan Your Eyeball
How do you imagine world is going to make money?
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
So Angus, World has just launched in the U.S. finally. Why now?
The Journal.
Why Sam Altman Wants to Scan Your Eyeball
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?
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Why Sam Altman Wants to Scan Your Eyeball
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,