finance
The most important stories about money, business and power. Hosted by Ryan Knutson and Jessica Mendoza. The Journal is a co-production of Spotify and The Wall Street Journal.
Anthropic has secured a record-breaking $63 billion loan package to purchase AI chips from Broadcom and Google. The complex financing arrangement involves a shell company and guarantees from Broadcom to mitigate lender risk amidst rising interest rates and reluctance from traditional banks.
Broadcom CEO Hawk Tan personally intervened over the weekend to finalize the massive $63 billion financing package for Anthropic. According to reporting by Alexander Saidi, Tan offered banks higher interest rates and stronger guarantees to prevent them from getting cold feet.
Ahead of its IPO, Anthropic released an S-1 filing revealing that Broadcom is not only supplying chips and guaranteeing loans, but is also lending money directly to Anthropic to help pay for them. Experts warn this interconnected setup constitutes circular financing.
Alphabet experienced its worst day ever on the stock market, losing $500 billion in value following a broad tech stock sell-off. Disappointing earnings from companies like Amazon and Intel also contributed to growing questions over massive AI spending.
Protests have broken out across France, with half a million people demonstrating in cities including Paris, Marseille, Lyon, and Limoges. What started as high school student protests over school resources and teacher shortages has escalated into widespread anger over proposed national budget cuts.
France is grappling with a ballooning debt and deficits running north of 5% of GDP. Over the next three years, the country must refinance roughly $1 trillion in debt at significantly higher interest rates, with annual debt service costs expected to reach hundreds of billions of dollars.
In an effort to reassure investors and address ballooning deficits, French leaders proposed a budget featuring 43 billion euros in spending cuts. However, these austerity measures have triggered violent street protests and political backlash across the country.
With national elections approaching in six months, leading political figures are offering starkly different approaches to France's financial crisis. Far-left figure Jean-Luc Mélenchon has suggested throwing a portion of the debt "in the fire," while far-right leader Marine Le Pen proposes spending cuts alongside lower retirement ages and blames immigration for the unrest.
Jay, known as 'The Profiler', dedicates his nights to hunting down fake recruiter profiles and job listings on LinkedIn. He meticulously examines profiles, cross-references photos with other online sources, and reports suspicious activity to the platform in an effort to protect job seekers.
The episode highlights how scammers on platforms like LinkedIn prey on individuals who have been unemployed for extended periods, leveraging their financial vulnerability and desperation. These scammers often pose as resume writers, charging upfront fees for services that don't exist.
Jay's journey into fighting job scams began in 2023 after he was laid off. The experience, which he described as 'layoff PTSD,' spurred him to take action when he noticed suspicious patterns in messages from purported resume writers on LinkedIn, realizing the widespread nature of these fraudulent schemes.
A representative from LinkedIn stated that the company's internal systems prevent the vast majority of scams, stopping close to 90 million fake accounts in the second half of 2025 alone. However, they acknowledge that scammers are adaptive, making it an 'endless game of whack-a-mole.'
Jay, operating as 'The Profiler,' has reported over 60,000 fake jobs and scam profiles, aiming to protect job seekers from financial loss and identity theft. His efforts highlight the significant scale of online job scamming, with an estimated $501 million lost between 2020 and 2024.
Jay, 'The Profiler,' advises job seekers to be wary of profiles with unusual naming conventions, such as a first name used as a last name, as these can indicate fake accounts. He also cautions that verification badges on platforms like LinkedIn do not guarantee a profile's legitimacy, citing an example of a verified profile of Ted Bundy.
Meta's new AI agent, Muse, aims to help users with tasks like booking flights and managing calendars. While it demonstrated capability in booking a bike rain cover, it also made significant errors, such as offering a CrossFit gym deal for a Pilates membership across the country.
During testing, Meta's AI agent Muse, nicknamed 'The Terminator,' requested increasingly sensitive data, including access to credit cards, calendars, and Gmail. While this access enabled useful task completion, it also raised concerns about privacy and the AI's potential for mistakes and unintended consequences.
The development and use of AI agents like Meta's Muse are prompting discussions about the level of control users should cede and the importance of data vigilance. Experts suggest that as AI becomes more capable, a diverse range of perspectives will be crucial in its development to prevent mistakes and unintended consequences.
Mark Zuckerberg emphasized Meta's new AI agent, Muse, as a core component of the company's future. He described Muse as a personal agent already assisting millions, and envisioned it evolving into a 'personal super intelligence' used by billions worldwide.
Unlike other AI chatbots that present users with technical choices like model selection, Meta's Muse offers a simplified interface. Users interact with Muse similarly to texting a friend, avoiding the complexity that might alienate less tech-savvy individuals.
New York City is set to implement a rent freeze next month, making it illegal for many landlords to raise rent for approximately one year. This measure is a response to the ongoing housing crisis in the city, though rent freezes are a controversial topic among economists.
Housing experts Emily Issener and Kenny Bergos presented contrasting views on New York City's housing market at a live event. Issener highlighted the increasing rent burden on tenants, with over 50% paying more than 30% of their income on housing. Bergos, representing landlords, described a scenario of high distress within the rent-stabilized housing stock.
According to Kenny Bergos, CEO of the New York Apartment Association, New York City's housing market operates with two distinct systems: rent stabilization and the free market. This interplay, he suggests, contributes to the current market conditions and the perception of high rents.
Emily Issener explained that the 2019 rent law introduced 'vacancy control,' regulating rent even when an apartment becomes vacant. This change, she argued, significantly altered landlord economics by capping rent increases based on the previous tenant's rate, regardless of unit condition or repair costs.
Kenny Bergos stated that under current rent regulations, the baseline rent for some apartments is below the operating cost. He cited data suggesting it costs $13.50 per month on average just to operate an apartment, leading to increased vacancies and a reluctance from banks to lend on these properties.
Emily Issener asserted that New York City has been in a housing emergency since World War II, with no significant progress in solving it over the past 80 years. She believes recent policy changes, combined with inflation and the COVID-19 pandemic, have exacerbated existing problems.
Estonia is piloting a national experiment called 'AI Leap,' providing tens of thousands of high school students with access to AI chatbots like ChatGPT. This initiative stems from a survey indicating 90% of students were already using AI for learning, prompting the government to proactively engage with the technology rather than ignore it. The goal is to understand how to maintain learning in an age where AI can perform tasks previously requiring human intellect.
Estonia's 'AI Leap' initiative, aimed at integrating AI into high school education, has partnered with major technology companies OpenAI and Google. These partnerships provide students with access to free chatbots as part of a national experiment to understand AI's impact on learning. This follows Estonia's historical embrace of technology in education, reminiscent of its 'Tiger Leap' program in the 1990s.
In response to concerns about AI undermining learning, Estonian educators are developing a 'Socratic chatbot' as part of the 'AI Leap' program. This tool is designed to guide students through problem-solving by asking questions, mirroring the Socratic method, rather than simply providing answers. The goal is to promote a process-based approach to learning.
Despite the educational intentions behind Estonia's 'AI Leap' program, many students find the Socratic chatbots to be 'super annoying.' Complaints include the chatbot switching languages inappropriately and its questioning format being perceived as a waste of time. Some students also express concern about the environmental impact of AI data centers, citing water and energy consumption.
Estonian educators are grappling with how to integrate AI into classrooms while preserving essential learning skills. Principal Indrek Lillimägi likens AI's ability to do work for students to a personal trainer lifting weights for a gym-goer, arguing it bypasses the effort needed for development. Teachers like Agna Kosk are exploring new pedagogical approaches to ensure students are still engaging in critical thinking.
Ukrainian President Volodymyr Zelensky stated he is thankful for the opportunity to speak with President Trump about crucial matters including winter aid, peace, and defense. He also addressed the UN General Assembly, emphasizing Ukraine's choice to fight for survival and independence.
President Zelensky explained that Ukraine's attacks on Russian energy infrastructure are a response to Russia's actions, particularly on Ukrainian electricity and civil infrastructure. He stated that a ceasefire on energy attacks would signal de-escalation and a step towards ending the war.
President Zelensky addressed the issue of diesel prices in relation to Ukrainian attacks on Russian refineries, stating that while the topic has been raised, Ukraine's lives are more important than energy prices. He emphasized that Ukraine will respond to Russian attacks on civil infrastructure.
Ukraine has been conducting offensive operations, with advanced drones striking deep inside Russia and causing significant damage to the country's oil refineries. This has been part of a broader strategy in the ongoing conflict.
Canadian Prime Minister Mark Carney is reportedly leading efforts to pivot Canada away from the United States by aligning with the European Union. This move, described as a "massive rewiring of the economic cabling of what we call the West," suggests Canada's desire to reduce its dependence on America and explore new geopolitical and economic partnerships.
The transcript suggests that Donald Trump's past comments, including questioning Canada's territorial integrity and suggesting it become the '51st state,' have significantly impacted Canada's geopolitical outlook. This perceived threat to Canadian sovereignty has seemingly spurred a desire to strengthen ties with Europe and reduce reliance on the U.S.
The discussion highlights a historical context where Canada once considered itself more aligned with Europe than North America, a sentiment that has resurfaced due to current tensions with the United States. This historical perspective is presented as a foundation for understanding Canada's current move towards stronger ties with the European Union.
The transcript notes the ambiguity surrounding the concept of an 'associate member' of the European Union, indicating that its precise definition and implications are currently unclear. This uncertainty highlights the novel nature of Canada's pursuit and the potential complexities involved in such a unique arrangement.
The move towards closer ties with the European Union is characterized as a significant 'generational bet' for Canada, especially given Europe's slower economic growth compared to the United States. This strategy implies a long-term vision that prioritizes a shift away from American economic dominance.
Prenuptial agreements are becoming more common and accessible, extending beyond the ultra-wealthy to the middle class. A 2023 survey indicated that one in five engaged or married adults have a prenup, with younger generations like Gen Z and millennials showing a higher likelihood of using them. This shift is transforming prenups from stigmatized contracts into empowerment and financial planning tools.
A significant trend in recent prenuptial agreements involves clauses designed to protect a partner who leaves the workforce to care for children. These clauses aim to shift the balance of power by proactively addressing potential future scenarios, ensuring that the economic disadvantage of a career break is considered. This contrasts with traditional prenups that might only offer half of the marital assets, without accounting for lost career seniority or retirement savings.
Anna and Zach's decision to get a prenup was influenced by Zach's past negative experience with prenuptial negotiations, which he felt contributed to the end of a previous engagement. Anna, initially unfamiliar with prenups due to societal stereotypes, was persuaded by Zach's history and their shared desire to protect themselves and their future. They ultimately viewed the prenup conversation as a positive step, despite initial pain.
Even without a formal prenuptial agreement, state laws dictate how assets are divided in case of divorce. This legal framework can be considered an 'unofficial prenup,' as judges or couples will typically aim for an equitable distribution of assets based on the specific circumstances. Some states lean towards a strict 50/50 split, while others allow judges more discretion to determine fairness.
Younger generations, particularly millennials and Gen Z, are increasingly opting for prenuptial agreements. This trend is partly attributed to their exposure to parents' difficult divorces, which has led them to seek more proactive financial planning in their own marriages. Additionally, individuals in these generations are often marrying later with established careers or student debt, making prenups a tool to manage these financial complexities.
Iconic model Twiggy discusses her new biographical documentary, which chronicles her rapid ascent in the fashion world and her subsequent shift to acting and singing. She shares the mixed emotions she experienced watching her life unfold on screen, particularly seeing footage of her late parents and her daughter as a child.
Twiggy reflects on being labeled the 'face of the '60s,' noting that she didn't realize the significance of the era while living through it, as she was only 16. She describes how her unconventional appearance—too small and thin for the industry standards of the time—made her discovery a shock to both herself and the public.
Twiggy shares a harrowing experience at age 17 when she was mobbed by a crowd, requiring a bodyguard to rescue her. She also discusses a now-famous interview with Woody Allen where she couldn't name a philosopher, a moment that has since gone viral. Twiggy explains her panic during the interview, as she was unprepared for such a question in front of an audience.
Twiggy shares her approach to maintaining her well-being, emphasizing pilates as a transformative exercise. She started practicing pilates about 15 years ago to address a lower back muscular problem and has found it to be 'magical' for her age and how she feels. Twiggy recommends pilates to everyone, wishing she had started earlier.
Twiggy expresses a strong preference for tailoring and classic silhouettes, particularly the tuxedo suit for women. She has consistently owned and worn black tuxedo suits throughout her career, considering them classy and timeless. Twiggy prefers to be slightly overdressed for evening events, finding comfort in a well-tailored suit.
Delcea Bear, a resident of Maysville, Kentucky, and her mother Ida have rejected a $26 million offer for their land from a company planning to build a large data center campus. Bear and her neighbors are in a contentious battle with the tech giant over the development.
A tech company is in the process of acquiring land in Maysville, Kentucky, to construct a data center campus that is described as being larger than two Central Parks. The development has led to a conflict with some local residents.
Several AI companies are allegedly purchasing large quantities of used books. The purpose of these acquisitions is reportedly to destroy the books, potentially to eliminate competition or control over data.
Sources indicate that AI companies are buying used books not for their market value, but for the data contained within them. These books are subsequently destroyed.
The practice of AI companies destroying used books after acquiring them is drawing criticism. Concerns are being raised about the ethical implications, potential copyright infringement, and the destruction of valuable knowledge.
The legal rights of authors are being tested as AI companies acquire and destroy books, potentially using their content for training. Lawyers are considering whether this practice constitutes fair use.
Actor Lee Pace shared his experience of getting his first credited role on 'Law & Order: SVU'. He recalled how he worked for only half a day and was overwhelmed by the experience, particularly by the directing of Mariska Hargitay.
When asked about the best part of playing a bad guy or a villain, actor Lee Pace stated that it's fun. He also believes that audiences enjoy watching villains.
Actor Lee Pace described his Monday morning routine, which starts between 6:30 and 7:00 AM. He spends about 30 minutes worrying before getting up to make coffee, specifically a mocha.
Yields on long-term US Treasuries have climbed near a 20-year high, sparking alarm across markets. This rise is primarily attributed to escalating inflation expectations, influenced by factors like higher oil prices and tariffs, which are making it difficult for the Federal Reserve to achieve its 2% inflation target.
Federal Reserve Chair Kevin Warsh has indicated that the central bank may need to raise interest rates further to bring inflation under control. This stance, emphasized at the Jackson Hole meeting, suggests that the Fed views inflation as an entrenched problem that will not resolve on its own.
Renewed hostilities in the Middle East, including US strikes on Iran and Iran's missile attacks on US allies, have contributed to rising oil prices. The average price of diesel hit an all-time high of $5.85 a gallon, which is a significant factor driving current inflation and raising concerns about its persistence.
Traders are currently divided, with a 50/50 probability assigned to the Federal Reserve hiking rates or staying steady at its upcoming meeting. This uncertainty, stemming from Fed Chair Warsh's shift away from forward guidance, is causing volatility in the treasury market.
Many market participants are beginning to adopt the view that interest rates will remain structurally higher for a considerable period, a concept often referred to as 'higher for longer.' This outlook suggests rates could even exceed previous expectations from a year or two ago.
Amazon is reportedly facing lawsuits and government investigations related to the working conditions in its warehouses. Concerns have been raised about worker safety and the pressure to meet demanding productivity quotas.
A recent environmental study highlights the significant contribution of the booming e-commerce sector to packaging waste. The study points to single-use plastics and excessive cardboard in online retail shipments.
The retail industry is still grappling with ongoing supply chain disruptions, leading to stock shortages and increased prices for consumers. Experts predict these issues could persist for several more months.
Economists are cautiously optimistic that inflation may begin to moderate in the next quarter, citing easing supply chain issues and a potential slowdown in consumer demand. However, significant uncertainty remains.
A leading technology company has announced significant workforce reductions, citing a challenging economic climate and a need to streamline operations. The layoffs are expected to impact thousands of employees globally.
Showing the latest 15 of 38 covered episodes.