Donald Trump Jr. Bets on the Anti-Woke Economy
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I'm Tim Higgins with The Wall Street Journal. We've got the spot to hear directly from the leaders behind the bold name companies we cover every day. Check out our new series, Bold Names, in the tech news briefing feed from The Wall Street Journal. Ukraine for the first time used U.S.-provided long-range missiles against the target in Russia.

And Donald Trump Jr. mixes business with politics in a new anti-woke endeavor. He was in business before his father was elected president in real estate. Now he wants to do something more aligned with his values and kind of the following he's built up among the MAGA coalition. Plus, profits are way down as venture capital firms await AI investments payday.

It's Tuesday, November 19th. I'm Tracy Hunt for The Wall Street Journal. This is the PM edition of What's News, the top headlines and business stories that move the world today.

Ukraine today fired long-range missiles provided by the U.S. into Russia for the first time, posing a test for Russian President Vladimir Putin after Moscow's threats to retaliate for such a move. A Ukrainian official said the country used the Army Tactical Missile System, known as ATAKOMS, to strike an ammunition storage facility in Russia's Bryansk region. The strike came just days after President Biden gave approval for their use.

At a news conference in Rio de Janeiro, where he's attending the G20 summit leaders meeting, Russian Foreign Minister Sergei Lavrov said the strike marks an expansion in the war. If long-range missiles are going to be applied from Ukraine into Russian territory, it will also mean that they are operated by American experts, military experts. And we will be taking this as a

qualitatively new phase of the Western war against Russia and will react accordingly. Russia has warned for months that use of such long-range missiles against its territory would amount to an attack by the North Atlantic Treaty Organization and lead to a clear response. Putin today signed amendments to Russia's nuclear doctrine, a move that appeared to be timed to send an additional warning to the West.

Meanwhile, Russia is suspected of orchestrating another major act of sabotage in Europe. According to government officials and telecom operators, a 135-mile internet link connecting Sweden's Gotland Island and Lithuania stopped working on Sunday morning. The following night, a 700-mile-long cable linking Finland and Germany also stopped working.

Western officials said there are indications that Russia was behind the incidents, which they said were similar to other operations resulting from Moscow's escalating hybrid warfare against NATO countries in Europe. The Russian government didn't immediately respond to requests for comment on the allegations. The United Nations Atomic Energy Agency today said that Iran sharply increased its stockpile of nearly weapons-grade uranium amid its confrontation with Israel.

Iran's decision to expand its stockpile of nuclear fuel and its failure to fully cooperate with the International Atomic Energy Agency, which monitors Tehran's work, is set to trigger fresh diplomatic pressure from Europe. Concerns are growing in Western capitals that Iran could decide to develop a nuclear weapon after comments by senior Iranian officials that Tehran has mastered most of the techniques for doing so.

Israel's hollowing out of Hezbollah, Iran's most powerful proxy in the Middle East, has also prompted a public debate in Iran about whether the country's best form of deterrence lies in having an atomic bomb.

Iran has always claimed its nuclear work is solely for peaceful civilian purposes. Both the incoming Trump administration and Tehran have sent mixed messages about whether they will seek confrontation or some kind of diplomatic engagement after President-elect Donald Trump takes office on January 20th. Silicon Valley's venture capital firms are having an easy time finding promising startups to back.

The hard part is cashing out. According to PitchBook, U.S. venture firms last year invested $60 billion more than they collected, the highest such deficit in PitchBook's 26 years of data.

and venture firms only returned $26 billion worth of shares back to their investors. That was the lowest amount since 2011. Joining us now is WSJ reporter Berber Jin. So Berber, why aren't these venture capital firms seeing any returns right now? The traditional exit routes for startups, which are IPOs and acquisitions, those two exit routes are essentially shut.

So in the US, a very harsh regulatory environment has discouraged a lot of startups from getting acquired by big tech companies. And a lot of startups still don't want to go public for a variety of reasons. And

What the result of that is, is you have thousands of so-called unicorns or private companies valued at a billion dollars or more that are essentially stuck. And some of their investors have been invested in those companies for over 10 years now.

and they're not able to turn those shares into profits. So you mentioned a harsh regulatory environment. What would a Trump presidency mean for those conditions? In general, venture capitalists are very hopeful that the Trump administration is going to loosen regulations, spur more dealmaking. They're very hopeful that the current FTC chair, Lena Kahn, will be replaced by a more business-friendly regulator.

But a lot remains to be seen because at the same time, Vice President-elect J.D. Vance has praised Lena Kahn. And there are Republicans who have a lot of influence within the party and a voice to Trump who actually have applauded over the years the sort of

more harsh antitrust approach that Lina Khan has taken and criticized the power that big tech companies have. That was our reporter, Berber Jin. Thank you so much. Thank you. It's a pleasure to be on. President-elect Donald Trump today said that he will nominate veteran Wall Street financier Howard Lutnick to lead the Commerce Department, elevating one of the financial world's most vocal supporters of Trump to a crucial position overseeing the incoming administration's economic agenda.

Lutnick has fiercely defended Trump's economic proposals in the midst of opposition from some on Wall Street who worry the president-elect's pledge to impose sweeping tariffs will trigger trade wars and ultimately lead to higher prices for American consumers. In a statement, Trump called Lutnick, quote, a dynamic force on Wall Street. Coming up, Donald Trump Jr.'s going all in on the so-called anti-woke economy. That's after the break.

I'm Christopher Mims of The Wall Street Journal. Every day we talk to the leaders behind bold name companies, and you can hear from them in our new series, Bold Names, in the tech news briefing feed from The Wall Street Journal.

The president-elect's son, Donald Trump Jr., has joined 1789 Capital, a venture capital firm aiming to invest in companies espousing conservative values. 1789 Capital is founder and former Bank of America executive Omid Malik's latest attempt to pursue profits in the so-called anti-woke or Republican parallel economy.

Trump Jr.'s involvement, made public last week, will have him mixing politics with business, even as he has said he plans to stay out of the future Trump administration. Joining us now is WSJ reporter Peter Rudiger.

Peter, what are these anti-vote companies Malik and Trump Jr. want to work with? The first investment that Malik's firm, 1789 Capital, made was in Tucker Carlson's new media company that's producing his web show. Prior to 1789 Capital, Donald Trump Jr. and Omid separately invested and advised in a company called Public Square.

Think of that as kind of an anti-woke online marketplace akin to Amazon or maybe an Etsy that's really catering to conservative brands, brands targeting consumers that might be disaffected by Bud Light or PayPal or Target or some of these companies that have gotten flack in the media for their stances on social issues.

So 1789 has some pretty big names from Republican donor and policy circles involved very much in this tight circle of people close to the Trump family and Trump administration. Wouldn't that bring rise to potential conflicts of interest for Trump Jr.?

For the most part, investing in startups might offer fewer conflicts than if you're investing in big companies that do lots of business with the government. But there are still potential for conflicts here. To give one example, there is a rocket company in 1789's portfolio called Firehawk Aerospace. They have done partnerships with NASA, with the Air Force. Anytime you have folks working in the defense industry where people at the Pentagon or the Department of Defense kind of have a say in who's going to get a contract and who isn't,

And if a relative of an investor might have a influence over who gets that contract, you're going to have at least the appearance of conflicts in those questions. Now, what our reporting did show for this story is that Trump Jr. is planning to recuse himself from business with any companies that might have business with the government. And this investment in Firehawk was made before Trump Jr. was a part of 1789. But it's just going to be something that they have to manage on an ongoing basis.

All right. Peter Rudiger is a reporter covering hedge funds and investing for The Wall Street Journal. Thank you so much, Peter. Thanks for having me. U.S. markets ended mixed today. The Nasdaq rose 1 percent, trailed by the S&P 500, which added 0.4 percent. The Dow fell 0.3 percent.

Walmart today said U.S. sales rose during the most recent quarter, propelled by shoppers buying groceries, home goods and toys, a sign that spending is off to a steady start this holiday season. Walmart executives said they are watching potential policy moves by the incoming Trump administration, particularly on import taxes, and are importing some products early in case of new tariffs or potential port strikes in January.

And if you're wondering what to make of this earnings season as it draws to a close, heads up. We're going to be releasing a special bonus episode tomorrow where we take a look at some of the big themes that are standing out in corporate earnings reports. That'll be this Wednesday afternoon in between our usual a.m. and p.m. editions. Check it out and let us know what you think.

And that's what's news for this Tuesday afternoon. Today's show was produced by Anthony Bansi with supervising producer Michael Cosmetis. I'm Tracy Hunt for The Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

Every day, Wall Street Journal reporters talk with the most powerful, influential, and interesting people. And now we're bringing some of those conversations directly to you. I'm Tim Higgins. And I'm Christopher Mims. We're teaming up to ask tough questions of the leaders behind the bold name companies found in the pages of the journal every day. Are you going to build that $20,000 vehicle? No, because that market sucks. Check out Bold Names in the tech news briefing feed from the Wall Street Journal.