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Trump’s ‘Queen of Hearts’ moment with the BLS echoes Putin’s purges and Orwell’s omens

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The ancient Greek play “Antigone” by Sophocles warns that “no one loves the messenger who brings bad news” and “no man delights in the bearer of bad news.”

About 1,900 years later, Lewis Carroll contributed another spin on the ill-tempered response to disappointment with the Queen of Hearts in his 1865 classic Alice in Wonderland. “Off with their heads!” she would exclaim, whenever a subject provided information that displeased her. 

In the 20th century, George Orwell delivered another version in his prescient masterwork 1984: “Every record has been destroyed or falsified, every book has been rewritten, every picture has been repainted, every statue and street and building has been renamed, every date has been altered. And that process is continuing day by day and minute by minute. History has stopped. Nothing exists except an endless present in which the Party is always right.”

And so we come to August 2025 and President Donald Trump’s disturbing dismissal of the Bureau of Labor Statistics Commissioner, Erika McEntarfer, immediately after the release of a negative jobs report. On social media, Trump claimed without evidence that the commissioner “faked the Jobs Numbers.” He went on to say, “I’ve had issues with the numbers for a long time. We’re doing so well. I believe the numbers were phony like they were before the election, and there were other times. So I fired her, and I did the right thing.” 

In short, is this Trump’s “Queen of Hearts” moment, or something more?

The Russian example

It’s difficult to look beyond Trump’s longstanding admiration of Russian President Vladimir Putin. As we’ve documented in the past, Putin has a history of rewriting inconvenient narratives. Rosstat, the nation’s official statistics agency, has a longstanding record of manipulating economic data to please Putin. It goes to great lengths to amend poor figures and hide unflattering statistics under pressure from the Kremlin, especially since Putin’s Ukraine invasion in 2022. The Russian agency has been “switching to new methodologies” and “recalculating data” with alarming frequency. Then there’s the overt political interference—Putin has fired the heads of Rosstat, transferred control of the agency to political appointees, and appointed a blatant political pick as deputy economic minister. 

It is no wonder outside observers ranging from international organizations to foreign investors regularly sound alarms over “concerns about the reliability and consistency of the Kremlin’s economic releases.” Putin now refuses to disclose major economic indicators ranging from foreign trade data, monthly output data on oil and gas, capital inflows and outflows, financial statements of major companies, central bank monetary base data, foreign direct investment data, domestic value added by industry, and lending and loan origination data. Even Rosaviatsiya, Russia’s federal air transport agency, has stopped publishing data on air passenger volumes. 

Yet these are the major high-frequency flow statistics that go into the construction of an economy-wide GDP forecast for any nation—from the U.S. to China. Since the outbreak of war, the IMF has apparently allowed Russia to violate its membership standards—which require member states to disclose transparent, verifiable, and comprehensive national income statistics. Free markets cannot function without trusted information. That’s why foreign direct investment into Russia has plummeted from over $100 billion to zero, and capital markets activity has been virtually frozen over, with barely any IPOs and little global interest in Russian securities.

Not just Russia

Of course, China is little better. Official Chinese statistics have become so widely recognized as manipulated and baseless that analysts rely on a wide range of unofficial or proxy indicators to gauge the true state of the Chinese economy. These shadow measures span everything from satellite imagery to nightlife activity to measuring pollution out of smokestacks.

Even China’s top economic official, Premier Le Keqiang, secretly confided that he didn’t believe the official GDP numbers, instead preferring to monitor rail freight volumes, electricity consumption, and bank loans disbursed. 

Similarly, in 2022, Turkish President Recep Tayyip Erdoğan proceeded to fire a series of senior economic officials who questioned his unconventional policy of cutting interest rates to fight inflation and spur an economic revival simultaneously. The most consequential action by Erdoğan was his eventual removal of Sait Dincer, head of the Turkish Statistical Institute, after the bureau reported a surge in inflation of 36% year-over-year. The Royal Statistical Society and the American Statistical Association jointly condemned the president’s “political interference in the production of official statistics,” urging him to allow the statistical institute “to produce objective statistical information,” an essential function “to ensure a healthy democracy in Turkey and to maintain international credibility in its statistics.” 

In Venezuela, President Nicolas Maduro has reportedly detained over a dozen economists and consultants in recent months in an attempt to suppress any suggestions of a worsening financial crisis in his country.

Off with her head!

But this is America, it’s supposed to be different. Trump’s abrupt firing of McEntarfer surprised market analysts and economists of all political backgrounds.

Most recently, on CNBC, Elaine Chao, a longtime Republican and former Trump cabinet official (she served as Labor Secretary for eight years under George W. Bush and served as transportation secretary in Trump’s first administration) directly disputed the president’s accusations. Chao told the audience: “It is very, very difficult to tamper or to interfere with these numbers. BLS is very concerned about the security of these numbers … if anything were to be awry … one of these 40 people [conducting] the final analysis would have spoken up. So, it’s highly unlikely.” 

Former BLS Commissioner William Beach, another Trump appointee, posted on social media soon after McEntarfer’s firing on Friday, calling it a “totally groundless” decision that “sets a dangerous precedent and undermines the statistical mission of the Bureau.” Beach further criticized the president’s move on Sunday, saying his action “undermines credibility” of the agency.

Trump has a (small) point when he claims that BLS performance has been slipping. Concerns about the timeliness and accuracy of BLS data are longstanding, with major revisions occurring only months later. The BLS and other statistical agencies have acknowledged the need to modernize their methodology, but progress has been slow. After COVID-19 disruptions, the extent of job revisions has swung more widely than in the past, notwithstanding attempts to improve their methodologies. The recent downward revision on Friday, subtracting over 250,000 jobs, is the largest since the peak of the pandemic. 

However, Trump’s accusations that the BLS faked job numbers to weaken his credibility and that of his Republican supporters highlight his tendency to distort facts. His apparently impulsive decision to fire McEntarfer, on a baseless belief that BLS revisions were politically motivated, recalls so many literary depictions of authoritarianism.

Revisions are a standard part of the BLS process, essential for improving the accuracy of the U.S. economy’s picture as new data arrives. Since 2003, the average revision has been around 51,000 jobs, not an insignificant figure in its own right. Despite claims that may suggest otherwise, Trump’s tariff policies have introduced an unprecedented level of uncertainty into the U.S. economy—comparable only to 2020—with many economists anticipating a recession as a consequence. Bloomberg has convincingly suggested a possible link between the magnitude of negative job revisions and recessionary conditions.

Just as leading businesses worldwide have worked to navigate the uncertainties caused by the president’s economic policies, should we expect different outcomes from a government agency that has also faced hiring restrictions and resource cuts due to arbitrary DOGE-led initiatives? Additionally, the Trump administration’s decision to disband the Federal Statistics Advisory Committee in March removed a vital mechanism for improving agency performance, including the modernization of data collection, tabulation, and analysis. While concerns about BLS methods, such as the dependence on enumerators instead of scanner data, are valid and merit attention, this is not the proper way to address them.

This is far from the first time Trump has subordinated statistical integrity to political theater. Other infamous examples include how, after Trump mistakenly asserted there would be a “95% chance” that Hurricane Dorian would hit Alabama, he insisted on showing doctored hurricane maps with a Sharpie-drawn track over Alabama, in plain contradiction of NOAA forecasts. Or there was the time when Trump demanded Georgia Secretary of State Brad Raffensperger “find me 11,000 votes”, insisting he won the 2020 presidential election and firing his own deputies such as Bill Barr and Chris Krebs who refused to go along with his election denialism.

More recently, in April 2025, Trump announced “reciprocal” tariffs on Liberation Day based not on actual reciprocal trade barriers but rather from a misleading formula based on trade deficits, leading economists to declare Trump’s numbers were “made-up” and “erroneous.” Finally, there has been Trump’s routine inflation of the crowd size at his rallies, and demands that his subordinates claim his first inauguration was the most attended in history, contradicting factual data across Nielsen ratings, livestream numbers, and Metro ridership showing far fewer attended his inauguration than Barack Obama’s inauguration, with Kellyanne Conway citing “alternative facts.” Look to literature. Strongmen out of George Orwell or Lewis Carroll don’t fire back with facts; they fire the truth-tellers.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.



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Netflix–Warner Bros. deal sets up $72 billion antitrust test

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Netflix Inc. has won the heated takeover battle for Warner Bros. Discovery Inc. Now it must convince global antitrust regulators that the deal won’t give it an illegal advantage in the streaming market. 

The $72 billion tie-up joins the world’s dominant paid streaming service with one of Hollywood’s most iconic movie studios. It would reshape the market for online video content by combining the No. 1 streaming player with the No. 4 service HBO Max and its blockbuster hits such as Game Of ThronesFriends, and the DC Universe comics characters franchise.  

That could raise red flags for global antitrust regulators over concerns that Netflix would have too much control over the streaming market. The company faces a lengthy Justice Department review and a possible US lawsuit seeking to block the deal if it doesn’t adopt some remedies to get it cleared, analysts said.

“Netflix will have an uphill climb unless it agrees to divest HBO Max as well as additional behavioral commitments — particularly on licensing content,” said Bloomberg Intelligence analyst Jennifer Rie. “The streaming overlap is significant,” she added, saying the argument that “the market should be viewed more broadly is a tough one to win.”

By choosing Netflix, Warner Bros. has jilted another bidder, Paramount Skydance Corp., a move that risks touching off a political battle in Washington. Paramount is backed by the world’s second-richest man, Larry Ellison, and his son, David Ellison, and the company has touted their longstanding close ties to President Donald Trump. Their acquisition of Paramount, which closed in August, has won public praise from Trump. 

Comcast Corp. also made a bid for Warner Bros., looking to merge it with its NBCUniversal division.

The Justice Department’s antitrust division, which would review the transaction in the US, could argue that the deal is illegal on its face because the combined market share would put Netflix well over a 30% threshold.

The White House, the Justice Department and Comcast didn’t immediately respond to requests for comment. 

US lawmakers from both parties, including Republican Representative Darrell Issa and Democratic Senator Elizabeth Warren have already faulted the transaction — which would create a global streaming giant with 450 million users — as harmful to consumers.

“This deal looks like an anti-monopoly nightmare,” Warren said after the Netflix announcement. Utah Senator Mike Lee, a Republican, said in a social media post earlier this week that a Warner Bros.-Netflix tie-up would raise more serious competition questions “than any transaction I’ve seen in about a decade.”

European Union regulators are also likely to subject the Netflix proposal to an intensive review amid pressure from legislators. In the UK, the deal has already drawn scrutiny before the announcement, with House of Lords member Baroness Luciana Berger pressing the government on how the transaction would impact competition and consumer prices.

The combined company could raise prices and broadly impact “culture, film, cinemas and theater releases,”said Andreas Schwab, a leading member of the European Parliament on competition issues, after the announcement.

Paramount has sought to frame the Netflix deal as a non-starter. “The simple truth is that a deal with Netflix as the buyer likely will never close, due to antitrust and regulatory challenges in the United States and in most jurisdictions abroad,” Paramount’s antitrust lawyers wrote to their counterparts at Warner Bros. on Dec. 1.

Appealing directly to Trump could help Netflix avoid intense antitrust scrutiny, New Street Research’s Blair Levin wrote in a note on Friday. Levin said it’s possible that Trump could come to see the benefit of switching from a pro-Paramount position to a pro-Netflix position. “And if he does so, we believe the DOJ will follow suit,” Levin wrote.

Netflix co-Chief Executive Officer Ted Sarandos had dinner with Trump at the president’s Mar-a-Lago resort in Florida last December, a move other CEOs made after the election in order to win over the administration. In a call with investors Friday morning, Sarandos said that he’s “highly confident in the regulatory process,” contending the deal favors consumers, workers and innovation. 

“Our plans here are to work really closely with all the appropriate governments and regulators, but really confident that we’re going to get all the necessary approvals that we need,” he said.

Netflix will likely argue to regulators that other video services such as Google’s YouTube and ByteDance Ltd.’s TikTok should be included in any analysis of the market, which would dramatically shrink the company’s perceived dominance.

The US Federal Communications Commission, which regulates the transfer of broadcast-TV licenses, isn’t expected to play a role in the deal, as neither hold such licenses. Warner Bros. plans to spin off its cable TV division, which includes channels such as CNN, TBS and TNT, before the sale.

Even if antitrust reviews just focus on streaming, Netflix believes it will ultimately prevail, pointing to Amazon.com Inc.’s Prime and Walt Disney Co. as other major competitors, according to people familiar with the company’s thinking. 

Netflix is expected to argue that more than 75% of HBO Max subscribers already subscribe to Netflix, making them complementary offerings rather than competitors, said the people, who asked not to be named discussing confidential deliberations. The company is expected to make the case that reducing its content costs through owning Warner Bros., eliminating redundant back-end technology and bundling Netflix with Max will yield lower prices.



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The rise of AI reasoning models comes with a big energy tradeoff

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Nearly all leading artificial intelligence developers are focused on building AI models that mimic the way humans reason, but new research shows these cutting-edge systems can be far more energy intensive, adding to concerns about AI’s strain on power grids.

AI reasoning models used 30 times more power on average to respond to 1,000 written prompts than alternatives without this reasoning capability or which had it disabled, according to a study released Thursday. The work was carried out by the AI Energy Score project, led by Hugging Face research scientist Sasha Luccioni and Salesforce Inc. head of AI sustainability Boris Gamazaychikov.

The researchers evaluated 40 open, freely available AI models, including software from OpenAI, Alphabet Inc.’s Google and Microsoft Corp. Some models were found to have a much wider disparity in energy consumption, including one from Chinese upstart DeepSeek. A slimmed-down version of DeepSeek’s R1 model used just 50 watt hours to respond to the prompts when reasoning was turned off, or about as much power as is needed to run a 50 watt lightbulb for an hour. With the reasoning feature enabled, the same model required 7,626 watt hours to complete the tasks.

The soaring energy needs of AI have increasingly come under scrutiny. As tech companies race to build more and bigger data centers to support AI, industry watchers have raised concerns about straining power grids and raising energy costs for consumers. A Bloomberg investigation in September found that wholesale electricity prices rose as much as 267% over the past five years in areas near data centers. There are also environmental drawbacks, as Microsoft, Google and Amazon.com Inc. have previously acknowledged the data center buildout could complicate their long-term climate objectives

More than a year ago, OpenAI released its first reasoning model, called o1. Where its prior software replied almost instantly to queries, o1 spent more time computing an answer before responding. Many other AI companies have since released similar systems, with the goal of solving more complex multistep problems for fields like science, math and coding.

Though reasoning systems have quickly become the industry norm for carrying out more complicated tasks, there has been little research into their energy demands. Much of the increase in power consumption is due to reasoning models generating much more text when responding, the researchers said. 

The new report aims to better understand how AI energy needs are evolving, Luccioni said. She also hopes it helps people better understand that there are different types of AI models suited to different actions. Not every query requires tapping the most computationally intensive AI reasoning systems.

“We should be smarter about the way that we use AI,” Luccioni said. “Choosing the right model for the right task is important.”

To test the difference in power use, the researchers ran all the models on the same computer hardware. They used the same prompts for each, ranging from simple questions — such as asking which team won the Super Bowl in a particular year — to more complex math problems. They also used a software tool called CodeCarbon to track how much energy was being consumed in real time.

The results varied considerably. The researchers found one of Microsoft’s Phi 4 reasoning models used 9,462 watt hours with reasoning turned on, compared with about 18 watt hours with it off. OpenAI’s largest gpt-oss model, meanwhile, had a less stark difference. It used 8,504 watt hours with reasoning on the most computationally intensive “high” setting and 5,313 watt hours with the setting turned down to “low.” 

OpenAI, Microsoft, Google and DeepSeek did not immediately respond to a request for comment.

Google released internal research in August that estimated the median text prompt for its Gemini AI service used 0.24 watt-hours of energy, roughly equal to watching TV for less than nine seconds. Google said that figure was “substantially lower than many public estimates.” 

Much of the discussion about AI power consumption has focused on large-scale facilities set up to train artificial intelligence systems. Increasingly, however, tech firms are shifting more resources to inference, or the process of running AI systems after they’ve been trained. The push toward reasoning models is a big piece of that as these systems are more reliant on inference.

Recently, some tech leaders have acknowledged that AI’s power draw needs to be reckoned with. Microsoft CEO Satya Nadella said the industry must earn the “social permission to consume energy” for AI data centers in a November interview. To do that, he argued tech must use AI to do good and foster broad economic growth.



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SpaceX to offer insider shares at record-setting valuation

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SpaceX is preparing to sell insider shares in a transaction that would value Elon Musk’s rocket and satellite maker at a valuation higher than OpenAI’s record-setting $500 billion, people familiar with the matter said.

One of the people briefed on the deal said that the share price under discussion is higher than $400 apiece, which would value SpaceX at between $750 billion and $800 billion, though the details could change. 

The company’s latest tender offer was discussed by its board of directors on Thursday at SpaceX’s Starbase hub in Texas. If confirmed, it would make SpaceX once again the world’s most valuable closely held company, vaulting past the previous record of $500 billion that ChatGPT owner OpenAI set in October. Play Video

Preliminary scenarios included per-share prices that would have pushed SpaceX’s value at roughly $560 billion or higher, the people said. The details of the deal could change before it closes, a third person said. 

A representative for SpaceX didn’t immediately respond to a request for comment. 

The latest figure would be a substantial increase from the $212 a share set in July, when the company raised money and sold shares at a valuation of $400 billion.

The Wall Street Journal and Financial Times, citing unnamed people familiar with the matter, earlier reported that a deal would value SpaceX at $800 billion.

News of SpaceX’s valuation sent shares of EchoStar Corp., a satellite TV and wireless company, up as much as 18%. Last month, Echostar had agreed to sell spectrum licenses to SpaceX for $2.6 billion, adding to an earlier agreement to sell about $17 billion in wireless spectrum to Musk’s company.

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The world’s most prolific rocket launcher, SpaceX dominates the space industry with its Falcon 9 rocket that launches satellites and people to orbit.

SpaceX is also the industry leader in providing internet services from low-Earth orbit through Starlink, a system of more than 9,000 satellites that is far ahead of competitors including Amazon.com Inc.’s Amazon Leo.

SpaceX executives have repeatedly floated the idea of spinning off SpaceX’s Starlink business into a separate, publicly traded company — a concept President Gwynne Shotwell first suggested in 2020. 

However, Musk cast doubt on the prospect publicly over the years and Chief Financial Officer Bret Johnsen said in 2024 that a Starlink IPO would be something that would take place more likely “in the years to come.”

The Information, citing people familiar with the discussions, separately reported on Friday that SpaceX has told investors and financial institution representatives that it is aiming for an initial public offering for the entire company in the second half of next year.

A so-called tender or secondary offering, through which employees and some early shareholders can sell shares, provides investors in closely held companies such as SpaceX a way to generate liquidity.

SpaceX is working to develop its new Starship vehicle, advertised as the most powerful rocket ever developed to loft huge numbers of Starlink satellites as well as carry cargo and people to moon and, eventually, Mars.



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