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Legendary filmmaker Werner Herzog on the ‘phenomenal stupidities’ of his beloved LA, the dangers awaiting Gen Z and ‘The Future of Truth’

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What is “The Future of Truth” and why has Werner Herzog written a book on it? You ask the legendary director and you get back a soliloquy. It would be familiar to any fan of the filmmaker, who burst onto the arthouse cinema scene in the 1970s as a leading light of the New German Cinema, before much wider exposure in the 2000s as the director of Grizzly Man and a supporting actor in a Star Wars show and even a Jack Reacher movie.

In a wide-ranging conversation with Fortune, the Bavaria-born director refers back often to his history of probing documentaries and feature films on humankind’s unending quest for meaning. “Wrestling with this question” has “engaged my fascination” since very early on, he says: “I think it is something inherent in art or in poetry, or in cinema. What exactly it is, nobody knows.” Herzog is evasive on whether he’s come down anywhere definitive on the question, now that he’s in his 80s. He cites the example of Ghost Elephants, his recent documentary on whether a mysterious giant species of elephant is hiding, somewhere in Africa. “Sometimes to maintain a dream is better than seeing it fulfilled,” he explains.

He cites a survey of 2,000 philosophers seeking to define the concept of truth, and “nobody has a real answer.” Many of Herzog’s films capture that sense of a quixotic, even bizarre quest, an antihero searching for some kind of truth that may be obvious only to himself. At times, the boundaries between art and artist blurred, with Herzog and his creative partner Klaus Kinski taking their dangerous onscreen missions into violent offscreen clashes with each other, as captured in the 1999 documentary, My Best Friend.

But in “The Future of Truth,” Herzog tackles current events: artificial intelligence, fake news and technology. In 11 short chapters, he discusses the difference between facts, truth and trust in the 21st century and links them back to examples from throughout world history. He references, for instance, the fake news that ran rampant throughout ancient Rome, and the bizarre “family romance” business in Japan where firms supply actors who stand in for missing friends or family members on a temporary basis. (Herzog made a film about this, too.)

The director talked to Fortune about his own technophobia, what he sees as the dangers facing Gen Z from the explosion of technological advances, and about why he’s come to love his adopted hometown of Los Angeles so much.

The ‘phenomenal stupidities’ of Los Angeles

These are “incredible times,” he tells Fortune, “more incredible than anything we ever had in human history,” and then he touches upon his adopted home. Los Angeles is “a city with the most substance, most cultural substance, in the United States, maybe even in the world,” he claims. While outsiders may imagine Hollywood’s superficial glamour, Herzog sees a metropolis teeming with artists, writers and inventors.

He says “it all originates” in southern California: the greatest painters, the center of the entertainment business, even the bodybuilders at Gold’s Gym in Venice Beach, all side by side with “abominations like aerobic studios and yoga classes for five-year-olds.” He explains that this duality shapes his worldview. “The artistic richness of LA with the phenomenal stupidities of LA, it happens at the same time. You have to accept it.” He said he thinks this duality “has to do with human nature,” and it relates back to his argument that what you feel to be true and what you know to be literally true are often not the same thing.

The director’s affection for America extends beyond cosmopolitan centers, too. He laments the mistreatment of what he calls “the heartland,” made up of “good people, but undereducated, underpaid, disadvantaged, not ever mentioned in the media, pushed to the margins.” These people, he warned, “are the majority, and you have to acknowledge it and do something about it.” He added that he is “outraged” when he hears talk of “flyover states.” He says he keeps telling his friends who were raised in a place like Kansas: “When was the last time you spoke to your old buddies from high school, when was that? When did you show you are interested in them?” (Herzog’s interview with Fortune took place before the Charlie Kirk murder, and a representative declined to comment on those developments.)

Despite his reputation for being bohemian in his art, Herzog in espouses some values that could be called old-fashioned. He even defends mainstream Hollywood cinema: “the collective dreams of the world come from here,” he says, adding that “it’s not my thing, but you cannot ignore it. It’s given us wonderful, wonderful things.”

For Herzog, this simultaneous coexistence of high art and triviality is part of LA’s twisted genius. This duality “has to do with human nature,” he says—and that’s part of what concerns him so much about artificial intelligence.

The ‘meaningless twaddle’ of AI and the ancient origins of fake news

Herzog said he sees artificial intelligence and fake news blending together to create the post-truth age we live in, noting that he and a “Slovenian philosopher,” unnamed but presumably Slavoj Zizek, are carrying on an AI-generated conversation on the internet that has no parallel in real life. It’s entirely fake, their famous voices captured in a conversation that never took place—and yet it also exists. “Our voices are mocked up very accurately,” he writes, “but our conversation is meaningless twaddle … Our sentences are grammatically correct and have the right vocabulary, but our dialogue is soulless, is dead.”

Herzog tells Fortune that he doesn’t let AI into his life. “It hasn’t affected me, really, because I do not use it.” He says he doesn’t even own a cell phone. Instead, “I find new ideas and new thinking—on foot,” stressing the pains he takes to engage with the real world on a daily basis. He makes one big exception: “there’s one phenomenon visible for me, because I use email … unknown people write to me.” He said he has fans as young as 15 years old and they write to him, wanting to “know certain things: intelligent, unusual questions.” He said he’s happy to engage with a young fan “if it’s a serious request.”

Herzog reminds Fortune that fake news is as old as time, citing examples from ancient Egypt and ancient Rome. He mentions the example of the Roman Emperor Nero, who lived on after he committed suicide, with “fake Neros [appearing] in Asia Minor, into northern Greece,” and the imposters were “wined and dined” by gullible subjects.

Herzog’s book goes into more detail on the parade of fake Neros, as he conjures a time long before the internet, when a canny purveyor of fake news could impersonate a dead emperor, gain a substantial following and indulge in some excellent banquets along the way. The first two of these were found out and, unfortunately for them, beheaded, but fake news had a strong grip. “The popular belief that Nero would return, march on Rome, and become emperor again, endures into the fifth century,” Herzog writes—a full 400 years after the original’s death. It’s not unlike Elvis Presley, Herzog adds: “In Tokyo to this day, it is possible to admire the competing Elvises in costume and guitar in public parks, a hundred of them or more … We will always have Elvis, a sleeping king in the mountain.”

For Herzog, history’s parade of lies only further supports his need for continual vigilance, and his book’s final chapter is concise: “Truth has no future, but truth has no past either. But we will not, must not, cannot, give up the search for it.”

Herzog expresses concern for younger generations growing up in a world dominated by screens and apps. “There’s a generation that … will really struggle in their lives if they have depended too much on social media and on their cell phones,” he warns. Their experience of reality, Herzog argues, becomes “only on a secondary level, from applications on their cell phones.”

He recounts the story of an acquaintance from a recent job who was unable to navigate five blocks in LA without Google Maps, having never learned the actual streets. “That is a thing that really concerns me when I think about this generation. They will have a very hard time to adapt to the reality, to the real reality, to the basic reality, to the barefoot reality.”

He is worried, he adds, about just how much we want to delegate to technology. “Do you want to delegate your dreams to artificial intelligence?”



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On Netflix’s earnings call, co-CEOs can’t quell fears about the Warner Bros. bid

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When it comes to creating irresistible storylines, Netflix, the home of Stranger Things and The Crown, is second to none. And as the streaming video giant delivered its quarterly earnings report on Tuesday, executives were in top storytelling form, pitching what they promise will be a smash hit: the acquisition of Warner Brothers Discovery.

The company’s co-CEOs, Ted Sarandos and Greg Peters, said the deal, which values Warner Brothers Discovery at $83 billion, will accelerate its own core streaming business while helping it expand into TV and the theatrical film business. 

“This is an exciting time in the business. Lots of innovation, lots of competition,” Sarandos enthused on Tuesday’s earnings conference call. Netflix has a history of successful transformation and of pivoting opportunistically, he reminded the audience: Once upon a time, its main business entailed mailing DVDs in red envelopes to customers’ homes. 

Despite Sarandos’ confident delivery, however, the pitch didn’t land with investors. The company’s stock, which was already down 15% since Netflix announced the deal in early December, sank another 4.9% in after-hours trading on Tuesday. 

Netflix’s financial results for the final quarter of 2025 were fine. The company beat EPS expectations by a penny, and said it now has 325 million paid subscribers and a worldwide total audience nearing 1 billion. Its 2026 revenue outlook, of between $50.7 billion and $51.7 billion, was right on target.  

Still, investors are worried that the Warner Bros. deal will force Netflix to compete outside its lane, causing management to lose focus. The fact that Netflix will temporarily halt its share buybacks in order to accumulate cash to help finance the deal, as it disclosed towards the bottom of Tuesday’s shareholder letter, probably didn’t help matters. 

And given that there’s a rival offer for Warner Bros from Paramount Skydance, it’s not unreasonable for investors to worry that Netflix may be forced into an expensive bidding war. (Even though Warner Brothers Discovery has accepted the Netflix offer over Paramount’s, no one believes the story is over—not even Netflix, which updated its $27.75 per share offer to all-cash, instead of stock and cash, hours earlier on Tuesday in order to provide WBD shareholders with “greater value certainty.”) 

Investors are wary; will regulators balk?

Warner Brothers investors are not the only audience that Netflix needs to win over. The deal must be blessed by antitrust regulators—a prospect whose outcome is harder to predict than ever in the Trump administration.

Sarandos and Peters laid out the case Tuesday for why they believe the deal will get through the regulatory process, framing the deal as a boon for American jobs.

“This is going to allow us to significantly expand our production capacity in the U.S. and to keep investing in original content in the long term, which means more opportunities for creative talent and more jobs,” Sarandos said.

Referring to Warner Brothers’ television and film businesses, he added that “these folks have extensive experience and expertise. We want them to stay on and run those businesses. We’re expanding content creation not collapsing it.”

It’s a compelling story. But the co-CEOs may have neglected to study the most important script of all when it comes to getting government approval in the current administration; they forgot to recite the Trump lines. 

The example has been set over the past 12 months by peers such as Nvidia’s Jensen Huang and Meta’s Mark Zuckerberg. The latter, with his company facing various federal regulatory threats, began publicly praising the Trump administration on an earnings call last January. 

And Nvidia’s Huang has already seen real dividends from a similar strategy. The chip company CEO has praised Trump repeatedly on earnings calls, in media interviews, and in conference keynote speeches, calling him “America’s unique advantage” in AI. Since then, the U.S. ban on selling Nvidia’s H200 AI chips to China has been rescinded. The praise may have been coincidental to the outcome, but it certainly didn’t hurt.

In contrast, the president went unmentioned on Tuesday’s call. How significant Netflix’s omission of a Trump call-out turns out to be remains to be seen; maybe it won’t matter at all. But it’s worth noting that its competitor for Warner Bros., Paramount Skydance, is helmed by David Ellison, an outspoken Trump supporter. 

It’s a storyline that Netflix should have seen coming, and itmay still send the company back to rewrite.



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Americans are paying nearly all of the tariff burden as international exports die down, study finds

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After nearly a year of promises tariffs would boost the U.S. economy while other countries footed the bill, a new study shows almost all of the tariff burden is falling on American consumers. 

Americans are paying 96% of the costs of tariffs as prices for goods rise, according to research published Monday by the Kiel Institute for the World Economy, a German think tank. 

In April 2025 when President Donald Trump announced his “Liberation Day” tariffs, he claimed: “For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike.” But the report suggests tariffs have actually cost Americans more money.

Trump has long used tariffs as leverage in non-trade political disputes. Over the weekend, Trump renewed his trade war in Europe after Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland sent troops for training exercises in Greenland. The countries will be hit with a 10% tariff starting on Feb. 1 that is set to rise to 25% on June 1, if a deal for the U.S. to buy Greenland is not reached. 

On Monday, Trump threatened a 200% tariff on French wine, after French President Emmanuel Macron refused to join Trump’s “Board of Peace” for Gaza, which has a $1 billion buy-in for permanent membership. 

“The claim that foreign countries pay these tariffs is a myth,” wrote Julian Hinz, research director at the Kiel Institute and an author of the study. “The data show the opposite: Americans are footing the bill.” 

The research shows export prices stayed the same, but the volume has collapsed. After imposing a 50% tariff on India in August, exports to the U.S. dropped 18% to 24%, compared to the European Union, Canada, and Australia. Exporters are redirecting sales to other markets, so they don’t need to cut sales or prices, according to the study.

“There is no such thing as foreigners transferring wealth to the U.S. in the form of tariffs,” Hinz told The Wall Street Journal

For the study, Hinz and his team analyzed more than 25 million shipment records between January 2024 through November 2025 that were worth nearly $4 trillion.They found exporters absorbed just 4% of the tariff burden and American importers are largely passing on the costs to consumers. 

Tariffs have increased customs revenue by $200 billion, but nearly all of that comes from American consumers. The study’s authors likened this to a consumption tax as wealth transfers from consumers and businesses to the U.S. Treasury.   

Trump has also repeatedly claimed tariffs would boost American manufacturing, butthe economy has shown declines in manufacturing jobs every month since April 2025, losing 60,000 manufacturing jobs between Liberation Day and November. 

The Supreme Court was expected to rule as soon as today on whether Trump’s use of emergency powers to levy tariffs under the International Emergency Economic Powers Act was legal. The court initially announced they planned to rule last week and gave no explanation for the delay. 

Although justices appeared skeptical of the administration’s authority during oral arguments in November, economists predict the Trump administration will find alternative ways to keep the tariffs.



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Selling America is a ‘dangerous bet,’ UBS CEO warns as markets panic

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Investors are “selling America” in spades Tuesday: The 10-year Treasury yield is at its highest point since August; the U.S. dollar slid; and the traditional safe-haven metal investments—gold and silver—surged once again to record highs.

The CEO of UBS Group, the world’s largest private bank, thinks this market is making a “dangerous bet.”

“Diversifying away from America is impossible,” UBS Group CEO Sergio Ermotti told Bloomberg in a television interview at the World Economic Forum in Davos, Switzerland, on Tuesday. “Things can change rapidly, and the U.S. is the strongest economy in the world, the one who has the highest level of innovation right now.” 

The catalyst for the selloff was fresh escalation from U.S. President Donald Trump, who has threatened a 10% tariff on eight European allies—including Germany, France, and the U.K.—unless they cede to his demands to acquire Greenland.

Trump also threatened a 200% tariff on French wine and Champagne to pressure French President Emmanuel Macron to join his Board of Peace. Trump’s favorite “Mr. Tariff” is back, and bond investors are unhappy with the volatility.

But if investors keep getting caught up in the volatility of day-to-day politics and shun the U.S., they’ll miss the forest for the trees, Ermotti argued. While admitting the current environment is “bumpy,” he pointed to a statistic: Last year alone, the U.S. created 25 million new millionaires. For a wealth manager like UBS, that is 1,000 new millionaires a day. To shun that level of innovation in U.S. equities for gold would be a reactionary move that ignores the long-term innovation of the U.S. economy. 

“We see two big levers: First of all, wealth creation, GDP growth, innovation, and also more idiosyncratic to UBS is that we see potential for us to become more present, increase our market share,” Ermotti said. 

But if something doesn’t give in the standoff between the European Union and Trump, there could be potential further de-dollarization, this time, from Europe selling its U.S. bonds, George Saravelos, head of FX research at Deutsche Bank, wrote in a note Sunday. Indeed, on Tuesday, Danish pension funds sold $100 million in U.S. Treasuries, allegedly owing to “poor” U.S. finances, though the pension fund’s chief said of the debacle over Greenland: “Of course, that didn’t make it more difficult to take the decision.” 

Europe owns twice as many U.S. bonds and equities as the rest of the world combined. If the rest of Europe follows Denmark’s lead, that could be an $8 trillion market at risk, Saravelos argued. 

“In an environment where the geo-economic stability of the Western alliance is being disrupted existentially, it is not clear why Europeans would be as willing to play this part,” he wrote. 

Back in the U.S., the markets also sold off as the Nasdaq and S&P both fell 2% Tuesday, already shedding the entirety of Greenland’s value on Trump’s threats, University of Michigan economist Justin Wolfers noted. Analysts and investors are uneasy, given the history of Trump declaring a stark tariff before negotiating with the country to take it down, also known as the “TACO”—Trump always chickens out—effect. Investors have been “burnt before by overreacting to tariff threats,” Jim Reid of Deutsche Bank noted. That’s a similar stance to the UBS bank chief: If you react too much to headlines, you’ll miss the great innovation that’s pushed the stock market to record highs for the past three years.

“I wouldn’t really bet against the U.S.,” he said.



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