Business
What Do the New Pentagon Press Reporting Rules Say?
Wednesday was a major moment for the coverage of the United States military. Scores of journalists with access to the Pentagon handed in their press passes rather than sign on to new rules laid out by Pete Hegseth, the secretary of defense.
The news organizations that have refused to agree to the rules include large organizations such as The New York Times, NBC News and Fox News, as well as many smaller publications that focus entirely on the military. At least one news organization, the conservative cable network One America News, has agreed to the new terms.
The new rules codify sharp limitations on access and raise the prospect of punishment — including revocation of credentials — for simply requesting information on matters of public interest. Lawyers representing national news organizations have been negotiating for weeks with Pentagon officials over the strictures.
The old rules fit on a page. The new ones fill out 21 pages.
The new rules are a stark departure — in length and scope — from the previous guidelines the Pentagon required journalists to sign to obtain a press pass. Here are some of the differences.
New York Times Analysis
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The Old Rules
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For many years before Pete Hegseth became defense secretary, journalists needed to sign a one-page list to obtain a press pass, as well as agree to a background check and other security measures. This copy of the one-page form was signed by Idrees Ali, a reporter for Reuters, in 2020.
New York Times Analysis
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The New Rules
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The Pentagon has framed the new restrictions, outlined in this memo, as an important step toward “preventing leaks that damage operational security and national security.” Media outlets see an attempt to curb First Amendment protections and question the policy’s premise. “Our members did nothing to create this disturbing situation,” reads a statement from an association representing Pentagon reporters.
Roving Reporters
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Mr. Hegseth has expressed concerns about reporters walking unescorted in Pentagon corridors, according to people with knowledge of internal discussions.
New York Times Analysis
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Access Privileges
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While journalists do not have a constitutional right of access to government buildings like the Pentagon and the White House, case law has clarified that once the access has been granted, it cannot be withdrawn arbitrarily or without due process.
New York Times Analysis
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Press Badges
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These red-and-white items (see p. 17 of this document) will make for easy identification of journalists in the building. The outgoing badges were run-of-the-mill affairs with a subdued “PRESS” on the bottom edge.
New York Times Analysis
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Escort Procedures
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Summoning an escort to accompany a journalist to an interview or other engagement requires significant effort, with one correspondent calling it a “big ask.”
New York Times Analysis
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A Clarification
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Language in a draft of the new rules was widely interpreted as saying the department was requiring news organizations to seek preapproval from defense officials for their stories. This section, among others, eliminates the ambiguity.
New York Times Analysis
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Asking Questions
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These lines present a particularly troubling set of problems for Pentagon correspondents and their news organizations, because they target the language of journalistic inquiry. Reporters ask for information all the time, and in many different ways. What is the difference, for example, between what the new policy calls “solicitation” and a journalist asking, “What’s going on in the secretary’s office?”
Tim Parlatore, a special adviser to Mr. Hegseth, said that the stricture applies only when the journalist “crosses the line” to asking defense officials “to violate these criminal statutes.”
New York Times Analysis
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Agree to Disagree
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This acknowledgement was a subject of negotiation between media lawyers and the Pentagon. A previous draft of the new rules would have required journalists to initial a dozen specific points, whereas the revised version, here, presents a global sign-off including a nod to industry misgivings about the restrictions.
Business
Supreme Court urged to block California laws requiring companies to disclose climate impacts
WASHINGTON — The U.S. Chamber of Commerce and other business groups urged the Supreme Court on Friday to block new California laws that will require thousands of companies to disclose their emissions and their impacts on climate change.
One of the laws is due to take effect on Jan. 1, and the emergency appeal asks the court to put it on hold temporarily.
Their lawyers argue the measures violate the 1st Amendment because the state would be forcing companies to speak on its preferred topic.
“In less than eight weeks, California will compel thousands of companies across the nation to speak on the deeply controversial topic of climate change,” they said in an appeal that also spoke for the California Chamber of Commerce and the Los Angeles County Business Federation.
They say the two new laws would require companies to disclose the “climate-related risks” they foresee and how their operations and emissions contribute to climate change.
“Both laws are part of California’s open campaign to force companies into the public debate on climate issues and pressure them to alter their behavior,” they said. Their aim, according to their sponsors, is to “make sure that the public actually knows who’s green and who isn’t.”
One law, Senate Bill 261, will require several thousand companies that do business in California to assess their “climate-related financial risk” and how they may reduce that risk. A second measure, SB 253, which applies to larger companies, requires them to assess and disclose their emissions and how their operations could affect the climate.
The appeal argues these laws amount to unconstitutional compelled speech.
“No state may violate 1st Amendment rights to set climate policy for the Nation. Compelled-speech laws are presumptively unconstitutional — especially where, as here, they dictate a value-laden script on a controversial subject such as climate change,” they argue.
Officials with the California Air Resources Board, whose chair Lauren Sanchez was named as defendant, said the agency does not comment on pending litigation.
The first-in-the-nation carbon disclosure laws were widely celebrated by environmental advocates at the time of their passage, with the nonprofit California Environmental Voters describing them as a “game-changer not just for our state but for the entire world.”
Sen. Scott Wiener (D-San Francisco), who authored SB 253, said at the time that the laws were “a simple but powerful tool in the fight to tackle climate change.”
“When corporations are transparent about the full scope of their emissions, they have the tools and incentives to tackle them,” Wiener said.
Michael Gerrard, a climate-change legal expert at Columbia University, described Friday’s motion as “the latest example of businesses and conservatives weaponizing the 1st Amendment.” He pointed to the Citizens United case, which said businesses have a free speech right to unlimited campaign contributions, as another example.
“Exxon tried and failed to use this argument in 2022 when it attempted to block an investigation by the Massachusetts Attorney General into whether it misled consumers and investors about the risks of climate change,” he said in an email. “Exxon claimed this investigation violated its First Amendment rights; the Massachusetts courts rejected this attempt.”
Under the Biden administration, the Securities and Exchange Commission adopted similar climate-change disclosure rules. Companies would have been required to disclose the impact of climate change on their business and what they intended to do to mitigate the risk.
But the Chamber of Commerce sued and won a lower court ruling that blocked those rules.
And in March, Trump appointees said the SEC would retreat and not defend the “costly and unnecessarily intrusive climate-change disclosure rules.”
The emergency appeal challenging California’s disclosure laws was filed by Washington attorney Eugene Scalia, a son of the late Justice Antonin Scalia.
The companies have tried and failed to persuade judges in California to block the measures. Exxon Mobil filed a suit in Sacramento, while the Chamber of Commerce sued in Los Angeles.
In August, U.S. District Judge Otis Wright II in Los Angeles refused to block the laws on the grounds they “regulate commercial speech,” which gets less protection under the 1st Amendment. He said businesses are routinely required to disclose financial data and factual information on their operations.
The business lawyers said they had appealed to the U.S. 9th Circuit Court of Appeals asking for an injunction, but no action has been taken.
Shortly after the chamber’s appeal was filed, state attorneys for Iowa and 24 other Republican-leaning states joined in support. They said they “strongly oppose this radical green speech mandate that California seeks to impose on companies.”
The justices are likely to ask for a response next week from California’s state attorneys before acting on the appeal.
Savage reported from Washington, D.C., Smith from Los Angeles.
Business
Warner Bros. Discovery modifies David Zaslav’s employment contract — again
Warner Bros. Discovery has modified Chief Executive David Zaslav’s contract for a second time this year to prepare for the company’s proposed breakup.
This month’s alterations were outlined in an SEC filing on Thursday — a week before initial bids are due in the Warner Bros. Discovery auction. Industry sources expect Paramount, Comcast and Netflix to make offers for the embattled entertainment company that owns HBO, CNN, Food Network and the storied Warner Bros. movie and television studios.
Warner Bros. Discovery declined to comment.
The sale kicked off in September when David Ellison-led Paramount made an unsolicited offer for Warner Bros. Discovery — a month after Ellison and RedBird Capital Partners had acquired Paramount from the Redstone family in an $8-billion deal. The company since has made at least three bids — but all were unanimously rejected by the Warner Bros. Discovery board, which viewed them as too low.
Paramount’s most recent solicitation for Warner Bros. Discovery was for $23.50 per share, which would value the company at about $58 billion.
The external jockeying for Warner Bros. Discovery set the stage for Zaslav and the Warner board to amend his employment agreement. The contract was revised Nov. 7 to clarify that various spin-off configurations would result in the same incentives for Zaslav.
Previously, his contract was amended to outline his compensation and incentives should the Warner Bros. studios and HBO Max spin off from the parent company, as envisioned when Warner announced its breakup plans in June. At the time, Zaslav planned to stay on to run the studios and streaming company, which would be called Warner Bros. in a nod to its historic roots and the pioneering days of the movie industry.
The plan was for the company’s two dozen cable networks, including CNN, TNT, Animal Planet and TLC, to remain behind and the company renamed Discovery Global.
The company is forging ahead with its breakup plans. However, it now plans to spin off the cable channels (Discovery Global) and keep the studios, HBO and the HBO Max streaming service as the surviving corporate entity (Warner Bros.).
“The amendment clarifies that if the separation is achieved by retaining Warner Bros. and spinning off Discovery Global (a ‘Reverse Spinoff’) rather than spinning off Warner Bros. … the Reverse Spinoff will be treated in the same manner … for all purposes of the Zaslav arrangements,” the filing said.
Previously, the company had envisioned that the split would be complete by Dec. 31, 2026. But a full-blown auction could upset those plans — and the transaction could close at a later date.
Zaslav’s contract was modified to extend his employment through December 2030. Previously, his contract was set to expire in December 2027.
“This extension is intended to secure Mr. Zaslav’s leadership of WBD for the same period that we had contracted to have him serve as the chief executive officer of Warner Bros. following a separation,” the filing said.
The Wall Street Journal was the first to report that nonbinding preliminary bids for the company are due Nov. 20.
Business
Economic angst forces L.A. shoppers to find ways to spend less for the holidays
Shoppers in Los Angeles are turning to more affordable brands, seeking deals and making their own presents to save money this holiday season, as many tighten their purse strings in anticipation of a weak economy.
The average projected holiday spend by Los Angeles shoppers was $1,627, according to Deloitte’s 2025 holiday retail survey. That’s above the national average but a 14% dip from 2024.
“What we’re hearing is that shoppers here in the L.A. metro area — and nationwide — are feeling uncertain about where the economy is headed,” said Rebecca Lohrey, Deloitte audit and assurance partner.
Californians have struggled more than residents of most other states with the stubbornly high price of housing. At the same time, the often-changing tariff regime coming out of Washington has consumers concerned that prices will continue to rise.
Widespread and high-profile job cuts in the tech industry, which has for decades been one of the state’s most reliable employers, have also helped shake consumer confidence. Some consumers surveyed by KPMG earlier in the year had planned to spend more this holiday season, in part, to get ahead of inflation.
Three-quarters of the shoppers surveyed expect higher prices on holiday goods, and 62% of Los Angeles shoppers expect the economy to weaken in the year ahead, nearly twice as many as a year earlier.
“L.A. shoppers are more likely to hunt for deals, give homemade gifts, reuse wrapping and use tools like social media and AI to plan their purchases,” Lohrey said. “Even with tighter budgets, they’re finding smart, creative ways to make the season joyful without overspending.”
Tariffs, inflation and geopolitical shifts are causing severe economic uncertainty for consumers.
Nationally, 57% of those surveyed expected the U.S. economy to weaken in the next six months, the most negative outlook since Deloitte started tracking economic sentiment in 1997.
This echoes what big box retailers and consumer goods giants have been saying. In August, Walmart said that as it replenishes inventory at tariff prices, it has continued to see costs increase each week, which it expects to continue through the end of the year. PepsiCo said it was introducing products at a cheaper price as consumer budgets remain constrained.
“Not surprisingly, we see more adjustments in middle- and lower-income households than we do with higher-income households,” Douglas McMillon, Walmart’s chief executive, said in an earnings call.
With consumers becoming more value-conscious, the Deloitte survey found that 88% of L.A. shoppers are seeking deals, and 78% are opting for affordable brands and retailers.
This has also meant that about 35% of L.A. shoppers plan on turning to generative AI tools to compare and find the best deals and generate shopping lists.
Consumer price inflation in Los Angeles stood at 3.5% in September compared with the previous year, higher than the national average of 3%, according to the Bureau of Labor Statistics.
With price increases, 6 in 10 local shoppers are turning to gift cards instead of gifts this holiday season, willing to spend an average of $268 on the cards.
Clothing and accessories are the top categories for those L.A. shoppers who say they’ll self-gift this year.
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