How Gen Z Protests Overturned a Government, and a Crackdown on TV Drug Ads

0:00This podcast is supported by On Investing, an original podcast from Charles Schwab. Each week, hosts Liz Ann Saunders, Schwab's Chief Investment Strategist, and Colin Martin, Head of Fixed Income Research and Strategy for the Schwab Center for Financial Research. Along with our guests, analyze economic developments and bring context to conversations around stocks, fixed income, the economy, and more. Download the latest episode and subscribe at schwab.com slash oninvesting or wherever you get your podcasts. From the New York Times, it's the headlines. I'm Tracy Mumford. Today's Wednesday, September 10th.

0:37Here's what we're covering.

0:44At noon today, I convened the heads of Israel's security organizations and authorized a surgical precision strike on the terrorist chiefs of Hamas. In a sharp escalation of its war in the Middle East, Israel launched an airstrike yesterday in Qatar, the country that's played a key role in trying to mediate an end to the conflict. The strike hit a building in the capital city of Doha, where a number of Hamas politicians lived. Hamas said it happened while they were meeting to discuss a ceasefire proposal. Several members of the group were killed, though none were senior Hamas officials. The attack came as somewhat of a shock, as Qatar was considered to be neutral ground.

1:27Hamas officials have worked out of the country for years. The Qatari prime minister condemned the strike, calling it barbaric. But Israel defended the operation, with Prime Minister Benjamin Netanyahu saying he was following through on his promise to eliminate Hamas completely. His office also said the strike was spurred in part by a Hamas attack at a bus station near Jerusalem earlier this week that killed at least six people. Meanwhile. I was very unhappy about it. Very unhappy about every aspect. And we got to get the hostages back. But I was very unhappy about the way that went down. Israel seems to have left its strongest ally, President Trump, in the dark about its plans.

2:09That put Trump in a fraught position. Not only is Qatar a close U.S. partner in the Middle East, but the U.S. has also been actively trying to mediate the ceasefire talks happening there between Israel and Hamas. It's the second time in recent months that Israel has apparently taken the U.S. by surprise. When it launched its 12-day war with Iran back in June, it gave the White House only minimal notice.

2:37Now, a few other updates on the Trump administration. Last night, a federal judge temporarily blocked President Trump's efforts to oust Lisa Cook, one of the governors of the Federal Reserve. Lawyers for Cook have argued that Trump moved to fire her for political reasons, as he's pressured the Fed to lower interest rates. Trump has claimed that she falsified documents related to her mortgages and needs to go. The judge rejected that argument, saying in part that because the alleged fraud happened before Cook was appointed to the Fed and didn't involve her professional conduct, she's able to stay in her role for now while she continues to fight her dismissal.

3:20Also, the Times has learned that the administration has been quietly dismantling efforts at the IRS to crack down on some of the methods that the wealthiest Americans and biggest companies use to pay less in taxes. Under the Biden administration, the IRS had begun an effort to root out and push for more transparency around some specific tax shelters. The effort was projected to bring in more than$100 billion for the federal government. But the Trump administration has been rolling that back under pressure from Republican lawmakers, industry groups and right wing activists. In response to questions from The Times, a Treasury official said the department was reversing Biden era guidance because it would have imposed enormous burdens on many, quote, honest taxpayers.

4:08And on Tuesday. A lot of these 128 recommendations are things that I've been dreaming about my whole life. Secretary Robert F. Kennedy Jr. rolled out a new report from his Make America Healthy Again Commission to tackle what he has framed as a health crisis among American children. In it, Kennedy doubled down on some of his most controversial views, like questioning fluoride in water and the safety of vaccines. But he also took on some topics that have gotten broader support, including warning about the dangers of pesticides and ultra-processed foods. My colleague Alice Callahan covers nutrition and health for The Times.

4:48Yesterday, I called up food policy experts and asked what they thought of the report. They said there are some good ideas here, like greater oversight of food additives, healthier foods in schools and hospitals, more nutrition research. But they said the report really lacked regulatory muscle. One expert called the report all promises and no teeth. And they said they'll be watching to see if the administration actually funds and implements many of the ideas in the report and ultimately if they take bigger steps to regulate food companies. Meanwhile, the White House did take action yesterday on one of the Maha report's recommendations.

5:30President Trump directed the administration to sharply crack down on TV ads for prescription drugs. Right now, the U.S. is nearly the only wealthy country in the world where commercial breaks are flooded with them. That started happening in the 90s, after the FDA relaxed rules that required drug makers to list out a huge amount of information about possible side effects. The change made it easy for drug makers to start running quick ads because they could cut down any warnings to just that lightning fast, this product may cause dizziness, nausea, constipation, bloating, sudden death, etc. Now, Trump wants to put those restrictions back in place, though any policy change is expected to face an aggressive First Amendment challenge from the drug industry, which spends billions of dollars each year advertising its products.

6:27So over the last few days, this eruption of public anger, the protests that spread like wildfire across Kathmandu, was the fastest and fiercest civilian uprising that I've seen anywhere in recent years. It's astonishing how big it got and how fierce. My colleague Alex Trevely is covering the protests and the violent crackdown in Nepal, which have plunged the country into chaos. The uproar, called the Gen Z protests, began after the government tried to block social media platforms, including Facebook, Instagram and WhatsApp. Those apps had become a key platform for people to voice their anger about inequality in Nepal.

7:09The hashtags Nepo Babies and Nepo Kids had become flashpoints there, as people shared photos claiming to show the luxury lifestyles of the children of Nepal's political elite. During the first day of the protests, when police or security forces opened fire into a crowd, taking the lives of, we think, at least 19 of the protesters, it became clear that this wasn't going to stop simply when the government reversed its ban. Indeed, the next day, things escalated. By then, there were probably hundreds of thousands of protesters on the streets, setting fire to the parliament, the Supreme Court. The sitting prime minister resigned and flew off in a helicopter.

7:51Other former prime ministers were rounded up and beaten, some of them on camera. And by the end of yesterday, pretty much the whole Capitol was in flames. And it was only about 10 p.m. last night that the army stepped in. And on Wednesday now, we're expecting some kind of high-level meetings between the activist leaders and the army. The sort of issues they're talking about have nothing to do with social media. It's about corruption, lack of opportunities for young people in the country. And the protesters, best I've been able to understand, are calling for a whole new government. What we've just seen is quite a lot like these other youth-led protest movements that have toppled governments in South Asia in recent years.

8:35It was three years ago that Sri Lanka's entrenched ruling family fled the country in a jet after a mostly youth-led movement. And just last year, the same thing happened in Bangladesh. These sort of medium-sized countries of South Asia, they are quite unlike one another in a lot of ways. But one thing they all have in common is enormous youth populations. People who are extremely frustrated with the status quo, In particular, it seems to offer them no opportunities. So there are a lot of disempowered-feeling teenagers and 20-something-year-olds who, in a way, have everything at stake and also feel they have nothing to lose.

9:14It creates a very powerful combination politically.

9:23And finally. I flew 14 hours all the way to Japan just to try 7-Eleven. In Japan, 7-Eleven convenience stores have a diehard, loyal foodie following. They have everything, like milk teas, fish cakes, pastas, even a clam pasta. This is what I dream about. There is nothing like the 7-Eleven egg salad sanzo in Tokyo. It might come as something of a surprise when you think about American 7-Elevens and what they offer. Sometimes you need a 9 a.m. chili cheese dog just to shock your body back into routine. Japanese convenience stores are actually known for high-quality fresh food. And now 7-Eleven's parent company is betting billions of dollars that it can expand its business in the U.S.

10:05using that same model, turning the stores into food meccas. 7-Eleven is the biggest convenience store chain in the U.S., but its parent company has had a rough go recently in terms of stiff competition and a falling stock price. It's hoping to revitalize and grow its U.S. market by adding 1 ,000 in-store restaurants and providing more of its own branded, prepared food. One speed bump to the whole plan could be location. In Japan, many of the stores get deliveries of fresh food multiple times a day. In the U.S., 7-Eleven's scattered locations at sometimes far-flung gas stations could make that a bit harder.

10:52Those are the headlines. Today on The Daily, a look at how Jeffrey Epstein leveraged his relationships with the rich and powerful to fund a years-long criminal operation. You can listen to that in the New York Times app or wherever you get your podcasts. I'm Tracy Mumford. We'll be back tomorrow.

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