The Philip DeFranco Show - PDS 7.2 WE NEED TO TALK ABOUT GHISLAINE MAXWELL, Scary Truths About Unemployment, & Kylie Jenner

Starting point is 00:00:00 Sup you beautiful bastard, hope you had a fantastic Thursday. Welcome back to the Philip DeFranco show. Buckle up, hit that like button and let's just jump into it. And actually the first thing we're gonna talk about today is just very amusing to me. Earlier this week while I was having I guess one of those crises of self once again, I mentioned that I feel like a bringer of sadness. And in addition to many of you pushing back against that saying no, I need this, this is the one way that I can take in the news without it just kind of collapsing on top of me. There were also a lot of you requesting that I make it into merch,

Starting point is 00:00:28 which initially sounded ridiculous to me until someone mentioned that it sounds like a band name. And this morning, my lead designer, Brian, surprised me with this. And so, for the next seven days, if you wanna snag yourself a limited edition Bringer of Sadness World Tour shirt, they're oh so comfy, or a premium hoodie,

Starting point is 00:00:43 or it's super hot so you need a tank. You can snack it, of course it's first come first served at ShopDeFranco.com. A bunch of y'all willed this into reality, so snag one while you can. But actually, the first thing I wanna talk about today, let's start off today light. Let's start today off by talking about a little story

Starting point is 00:00:56 involving Kylie Jenner and Kim Kardashian and corporate espionage accusations. So if you don't know, and it would actually be odd if you did, the company behind Kylie Jenner and Kim Kardashian West's makeup lines is Seed Beauty. And they are taking legal action to protect their trade secrets now that both stars have massive deals with Kody Ink.

Starting point is 00:01:11 And Kody Ink, if you don't know, is this beauty conglomerate that owns brands like CoverGirl, Sally Hansen, Rimmel, and others. And Kody Ink have recently made headlines for striking these just massive multi-million dollar deals with the sisters, moves that a number of people see as an effort for the company to refresh their image and attract a younger audience. For some time now, it looks like they've been struggling to keep up with their deals with the sisters, moves that a number of people see as an effort for the company to refresh their image and attract a younger audience.

Starting point is 00:01:26 For some time now, it looks like they've been struggling to keep up with their competitors in the industry, so it seems like this new strategy is to link up with more social media driven brands like Kim and Kylie's. Earlier this year, Kody Ink bought 51% of Kylie cosmetics for $600 million, and just this week, news broke that Kim sold 20% of KKW Beauty to the company for $200 million.

Starting point is 00:01:43 But these deals were actually pretty concerning for C Beauty, which partnered with Kylie since her line started back in 2016, doing things like taking care of logistics, manufacturing, development, storage, distribution. When you say it like that, it sounds like they literally did everything. Seed also taking on the same responsibilities

Starting point is 00:01:56 for KKW Beauty when Kim launched the line back in 2017. But now Seed Beauty is worried that Kody has and will continue to get access to secrets that make Seed a strong force in the beauty industry. Which is why on June 30th, Seed Beauty is worried that Coty has and will continue to get access to secrets that make Seed a strong force in the beauty industry. Which is why on June 30th, Seed Beauty filed a civil lawsuit against Coty and King Kylie, which is the LLC behind Kylie Cosmetics, to prevent the misappropriation of trade secrets.

Starting point is 00:02:13 The lawsuit saying that because of Coty's inability to quote, successfully compete in the new digital cosmetics world through its own innovation, the company has engaged in a plan to steal the secret sauce behind Seed through its deals with the sisters. Sue claiming Coty made a $600 million investment in King Kylie, but it really was a subterfuge

Starting point is 00:02:28 to learn Seed's confidential business methodologies. With the suit also alleging that Kylie Cosmetics knowingly shared Seed Beauty's confidential intellectual property and Cody knowingly accepted that information. Now notably, the complaint is highly redacted so it doesn't actually specify the secrets that Seed wants to keep private,

Starting point is 00:02:41 but it could include things like information about product formulations, information about the business's core operations, and the structure of its partnerships wants to keep private. But it could include things like information about product formulations, information about the business's core operations, and the structure of its partnerships, according to Forbes. Seed also said that it asked Kylie Cosmetics and Coty to not share or use their trade secrets several times, but both refused to assure them that they wouldn't. So now, Seed Beauty is asking the court

Starting point is 00:02:58 to permanently bar Kylie Cosmetics from disclosing its trade secrets. Also asking the court to force Coty to promise not to use information that it already allegedly acquired. And it also wants Kody to be prevented from developing any color cosmetics with Kylie Cosmetics for a period of time that was redacted in the suit. Right, and it's not just Kylie. Seed filed a similar suit against KKW Beauty in anticipation of their deal with Kody. Notably, we've also seen KKW Beauty then filing an opposition to that lawsuit, claiming that Seed's legal action was an attempt to stifle the success of

Starting point is 00:03:22 the Kardashian-Jenner family. Also arguing they did not share any trade secrets with Kody and requested that the court compel arbitration. Saying the purported harm to Seed is entirely speculative, unfounded, and already complete. And adding, by contrast, KKW stands to suffer comparatively more significant harm. Ultimately, the court granted the temporary order, barring KKW Beauty from sharing information

Starting point is 00:03:39 until August 21st. But still, that court order didn't stop Kim and Kody from striking a deal, which was formally announced on June 29th. Now I will say, personally, when I look at this story, I end up wondering, what could these trade secrets really be? And to a certain degree, I'm probably being ignorant here,

Starting point is 00:03:52 but it feels very much like you took some of the most famous people in the world. You have a website, which I imagine might be a Shopify experience, and then you send out products, all while whenever possible, going directly to the consumer so it's not complicated. But also, looking around, seeing what people are saying,

Starting point is 00:04:05 it appears that Seed is well known for their speed and efficiency thanks to what they call a unique business model. The company is also known for their own massively successful line, ColourPop Cosmetics, as well as actually someone that we talked about this week, their partnership with YouTuber Tati Westbrook for her new cosmetics line.

Starting point is 00:04:18 But yeah, ultimately that's where we are. Neither Kody or Kylie Cosmetics have yet formally responded to the lawsuit or issued a public comment. So for now, we kind of just have to wait and see what happens because the first court hearing is not scheduled until October. And then let's talk about a pretty damn massive update to the Jeffrey Epstein case,

Starting point is 00:04:32 which is today's arrest of Ghislaine Maxwell. Now, given the nature of this story, this whole video unfortunately will likely be suppressed, but it is incredibly important for us to talk about. And so in case you need a surface level refresher here, Epstein was an incredibly wealthy financier who was part of many well-connected and powerful social circles.

Starting point is 00:04:47 And last year he was charged for allegedly sex trafficking minors in New York and Florida. Now before that, back in 2008, he had actually been convicted in Florida for procuring a minor for prostitution. He's also had a long history of this alleged behavior, with many women saying that he groomed them when they were as young as 14 years old.

Starting point is 00:05:02 Now he was facing charges last year, but in August he was found dead in his jail cell with authorities declaring it a suicide. Though his lawyers, along with many, many people, questioned that, with many believing that he may have been killed, given how many powerful people he was connected to that he might also implicate.

Starting point is 00:05:15 But all of that brings us to Maxwell, who was a British socialite and Epstein's friend and girlfriend for some time. She has also long been accused of aiding Epstein in sex trafficking minors, though she has consistently denied this. But also of note, after Epstein was charged back in 2019, she pretty much went MIA.

Starting point is 00:05:30 You know, you had all these reports speculating her whereabouts, but that there was nothing super concrete until this morning, because that is when we learned that the FBI had actually arrested her in New Hampshire. You know, this is a massive deal because it feels like it's a long time coming. The accusations against her are substantial.

Starting point is 00:05:44 With the indictment against her, which was just unsealed today, claiming, Maxwell assisted, facilitated, and contributed to Jeffrey Epstein's abuse of minor girls by, among other things, helping Epstein to recruit, groom, and ultimately abuse victims known to Maxwell and Epstein to be under the age of 18. The victims were as young as 14 years old

Starting point is 00:06:00 when they were groomed and abused by Maxwell and Epstein, both of whom knew that certain victims were in fact under the age of 18. With that continuing, moreover, in an effort to conceal her crimes, Maxwell repeatedly lied when questioned about her conduct, including in relation to some of the minor victims described herein when providing testimony under oath in 2016.

Starting point is 00:06:18 Today, during a press conference, you had acting US Attorney Audrey Strauss further adding, -"Maxwell lied because the truth, as alleged, was almost unspeakable. Maxwell enticed minor girls, got them to trust her, then delivered them into the trap that she and Epstein had set for them. And the details as to how she allegedly procured

Starting point is 00:06:42 these girls for Epstein, that they're incredibly upsetting, and in some cases, they also allege that she, to some degree, participated in the sexual abuse. With the indictment claiming that Maxwell would attempt to befriend these minor victims, ask them about their lives, and then she and Epstein would spend time with them by going to the movies or shopping with them. And some of these outings would involve both Maxwell and Epstein with the girls. In other situations, the girls were one-on-one with them. And then, having developed a rapport with a victim, Maxwell would try to normalize sexual abuse for a minor victim by, among other things,

Starting point is 00:07:07 discussing sexual topics, undressing in front of the victim, being present when a minor victim was undressed, and or being present for sex acts involving the minor victim and Epstein. And the indictment alleges that Maxwell's presence during these interactions helped put the victims at ease because an adult woman was present. And then providing examples,

Starting point is 00:07:22 like Maxwell massaging Epstein in front of victims, or even encouraging the victims to massage Epstein themselves. Many of those massages involved a minor being nude or partially nude and then led to Epstein sexually abusing them. With the indictment claiming that this happened at Epstein's residences in New York, Palm Beach,

Starting point is 00:07:36 New Mexico and London. So now Maxwell has been charged with six counts including enticement of a minor to travel to engage in illegal sex acts, transportation of a minor with intent to engage in criminal sexual activity, to conspiracy charges related to both of those, and to perjury charges, with the indictment claiming that these crimes were committed between 1994 and 1997,

Starting point is 00:07:53 but some reports also indicate that Maxwell partook in this alleged scheme for much longer. And as of recording this video, she is expected to appear in front of a federal court at some point today. And so now, this is a situation that we have our eyes on, and we have to wait to see what happens next here. I mean that both in what information comes out. Do we see other players that have been mentioned

Starting point is 00:08:09 in this scandal doing anything? You know, for example, we saw acting U.S. Attorney Strauss saying this. We would welcome Prince Andrew coming in to talk with us. We would like to have the benefit of his statement. Meanwhile, you have CNN breaking news saying Prince Andrew's legal team declines to comment on the arrest of Jeffrey Epstein confidant Elaine Maxwell Noting the Prince faces allegations stemming from his relationship with Epstein

Starting point is 00:08:29 You can also tell as far as the public is concerned There is not a lot of trust in the system any noting that there needs to be multiple cameras on Maxwell at all times in Case she just randomly pops up dead and also now with Maxwell arrested do other people end up getting implicated It's gonna be a very interesting one to watch in general But also, you know, it continues the bigger conversation of the women here, the victims in this situation. Will they finally get some sense of justice? And then, let's talk about jobs in America.

Starting point is 00:08:52 And in part, we're talking about this because it is Thursday, a day that has just been very bad for the past several months. It's the day that we get new unemployment numbers, but also because it is now July, that means the Bureau of Labor Statistics, otherwise known as the BLS, released updated unemployment numbers for the month of June.

Starting point is 00:09:06 But those numbers actually show that the United States gained 4.8 million jobs back in June with the unemployment rate falling to 11.1% from 13.3% back in May. So with this, we saw Trump touting these numbers during a press conference this morning. I'd like to just announce the spectacular news for American workers and American families and for our country as a whole. There's not been anything like this, a record setting. Today's announcement proves that our economy is roaring back. It's coming back extremely strong. This is not just luck what's happening. This is a lot of talent. All of this incredible news is the result of historic actions my administration has taken working with our partners in Congress to rescue the US economy from a horrible event that was formed, took place in China, and came here and they could have stopped it. They could have stopped it.

Starting point is 00:10:01 Okay, so there is a lot going on there. But for the sake of this story and keeping the focus on unemployment, I want to first talk about Trump's claim that the jobs gains that we are seeing are record setting. Right, that is something he said over and over again during the press briefing. But you also had a lot of people noting that the only reason that we're seeing record-breaking jobs gains is because we've been seeing

Starting point is 00:10:17 record-breaking job losses. And that also includes people in Trump's administration, like Treasury Secretary Steve Mnuchin, who at the same press conference acknowledged that the unemployment is still extremely high by historical standards. Right, I mean, through this pandemic, we've seen unemployment rates similar to that

Starting point is 00:10:29 of the Great Depression, and even now, unemployment is still the highest it's been since World War II. Right, there are still over 17 million Americans unemployed according to the BLS report, and while it of course is true that we gained 4.8 million jobs back last month, we have also seen more than a million people

Starting point is 00:10:44 filing for unemployment every single week in June, including this last week where we saw 1.4 million new claims. And when you in fact dig deeper into the BLS data, there are a number of factors that still show that Americans are really hurting right now. For example, while the number of people temporarily laid off decreased by 4.8 million,

Starting point is 00:10:59 the number of permanent job losses actually increased last month, rising by over half a million to 2.9 million total. And as the New York Times explains, that suggests that even as many laid off workers are finding work again following shutdown era furloughs, others are losing their positions altogether. And so this idea that we're adding new jobs to the economy

Starting point is 00:11:15 was also something we saw a lot of people talking about on Twitter. Saying that we aren't exactly adding or creating new jobs, some people just went back to the jobs they previously had before the shutdowns. We also saw a lot of people comparing the unemployment rates of black people and other people of color to that of white people.

Starting point is 00:11:26 And likely we saw people doing this because we saw Trump saying during the press conference. Truck month is on at Chevrolet. Get 0% financing for up to 72 months on a 2025 Silverado 1500 Custom Blackout or Custom Trail Boss. With Custom Trail Bosses available, class exclusive Duramax 3-liter diesel engine

Starting point is 00:11:44 and Z71 off-road package with a 2-inch factory suspension lift, you get both on-road confidence and off-road capability. Dirt road ahead? Let's go! Truck month is awesome! Ask your Chevrolet dealer for details. African-American workers really happily, for me me made historic gains with 404,000 jobs added last month alone and that's a record. Likewise, Hispanic employment is up by 1.5 million jobs, a record by a lot. But when you actually look at the BLS data, minority unemployment has

Starting point is 00:12:22 consistently remained higher than white unemployment, especially for black people. In fact, according to Reuters, the gap in US black and white unemployment rates is the widest that it's been in five years, with that report explaining, "'Jobless rates for both groups fell in June, "'but the rate for whites came down at a much faster rate. "'The white unemployment rate fell 2.3 percentage points,

Starting point is 00:12:39 "'to 10.1% from 12.4%, while the rate for blacks "'dropped 1.4 points to 15.4% from 16.8%. And while unemployment fell for both groups in general, unemployment rates specifically among black men over 20 actually rose from May to June, growing from 15.5% to 16.3%. And while the discrepancy between black and white unemployment was the most significant,

Starting point is 00:12:58 looking at the numbers, white unemployment is still quite a bit lower than Hispanic unemployment, which was 14.5% last month, as well as Asian unemployment, which was 13.8%. And as Gary Burtless, a labor economist at the Brookings Institution explained, "'Disproportionately, the layoffs have been "'in lower wage occupations and lower wage positions.

Starting point is 00:13:13 "'This has disproportionately affected "'African Americans and Hispanics.'" Right, but also, a thing I wanna hit on, the data from the BLS is only part of the picture. And that's because, as the government has said, it is impossible for them to 100% accurately measure all of the job losses that we're seeing because this is so unprecedented.

Starting point is 00:13:27 This for a number of reasons, but even when you try to make comparisons, it's not like any other downturn we've ever seen because it happened so fast. Usually for a recession, a depression, it happens over a long period of time, but we're seeing just wild numbers because of what happened. And even regarding the numbers,

Starting point is 00:13:41 the BLS has said that they also believe that the official unemployment rate is actually 12.1%, which is a whole percentage point higher. And this is because of a problem with their data collection methods, but it's also not the only problem with this data. Arguably, the biggest issues, especially given Trump using this data to claim how good the economy is doing,

Starting point is 00:13:55 is that the data in this report was taken the week ending June 12th. Right, and what we've seen since then is a number of states shutting down businesses once again in response to the massive spike that we've been seeing in coronavirus cases. Right, just last week, Florida and Texas have closed bars. California has stopped indoor restaurant dining

Starting point is 00:14:09 and closed movie theaters and bars in most major cities. And Arizona has shut down water parks and gyms. And remember, these are just some of the closures. In addition to some states renewing their restrictions, there are numerous other states that have postponed their planned reopenings. And according to the Washington Post, some workers are now getting laid off for the second time,

Starting point is 00:14:24 with millions of workers being sent home amid the spikes. I mean, just today we saw the US reporting a new record of 50,000 coronavirus cases on a single day. Which means, according to public data, new cases have risen a whopping 50% in the last month. And so with those numbers rising, states with huge economies like Texas and California reimposing restrictions, many economists are worried

Starting point is 00:14:43 that we're going to see more layoffs. At the same time, with states like New York delaying their reopenings, there are also now concerns about the people who were originally set to go back to work in the next phases. Right, so not only will the economy be hurt by people being laid off, it'll also be hurt by the fact that there is a whole wave of people

Starting point is 00:14:56 who are supposed to go back to work and now can't. Right, and that was something that was put really well by Betsy Stevenson, who was a member of Obama's Council of Economic Advisers, who said, the virus drives the economics.'" And adding that, "'If cases continue to rise as expected, "'we're not going to have people going back to work.

Starting point is 00:15:10 "'In fact, we're going to see more people staying home.'" Right, and I think that's an important thing to remember because I think there are a number of people out there that think that it's a choice between the economy or health. The situation and the numbers we're seeing is also the reason that I will always be incredibly annoying about just asking people,

Starting point is 00:15:23 "'If you are gonna go out, please wear a mask.' It's not a political issue, you're not being oppressed. It's the thing that allows us to get closer to true freedom faster than the alternative. But ultimately, we're gonna have to keep our eyes on this situation because once again, it doesn't show us what we're actually experiencing right now.

Starting point is 00:15:37 Meanwhile, it is also important to note with more people expected to lose jobs as states reimpose restrictions, the additional $600 a week in unemployment benefits that was passed during the CARES Act is set to expire at the end of this month. And while the House stimulus bill would renew those benefits until January, Senate Republicans, and specifically,

Starting point is 00:15:51 Mitch McConnell, has said that they will not extend them. Though we have also heard from Trump that he supports another round of direct payments to Americans. But really what I would say in this situation is everyone can say whatever they want. It ultimately comes down to actually making legislation and actually voting on things. Earlier this week week McConnell did say

Starting point is 00:16:05 that the Senate will consider another stimulus package at the end of the month. And while right now it is unclear what that would include or how it would compare to the House bill, which McConnell notably has said will be dead on arrival, expanding the unemployment benefits is already expected to be a major hang-up. So we'll see, and if there is a place that it can end this.

Starting point is 00:16:20 You know, the other day, I don't know if you saw the clip, you had Rand Paul seemingly criticizing Dr. Fauci for a number of things, but saying, we just need more optimism. Which I would say, you can put all the other day, I don't know if you saw the clip, you had Rand Paul seemingly criticizing Dr. Fauci for a number of things, but saying, we just need more optimism. Which I would say, you can put all the whipped cream, the cherries, the sprinkles you want on a piece of shit, but it's still not gonna be a sundae. There's a very real and serious issue here,

Starting point is 00:16:35 and just because we want things to be better doesn't mean it automatically becomes that way. It seems like more and more people are angry about the results that we are not getting from the work that's not being put in. And at the end of the day, who suffers? The American people, some of which are hurting themselves and their family inadvertently because the people that we are not getting from the work that's not being put in. And at the end of the day, who suffers? The American people, some of which are hurting themselves and their family inadvertently

Starting point is 00:16:48 because the people that they look to have, among other things, made the mask situation into a political situation, some feeling like it's unmanly. And it brings me no joy when I see situations like today, Herman Cain, less than a month after Herman Cain tweeted out don't believe the scare stories, a serious look at the numbers tells you there's no second wave starting. You also had Herman Cain tweeting out yesterday,Don't believe the scare stories? "'A serious look at the numbers tells you "'there's no second wave starting.'"

Starting point is 00:17:05 You also had Herman Cain tweeting out yesterday, "'Masks will not be mandatory for the event, "'which will be attended by President Trump. "'People are fed up.'" And then you have his Twitter account today announcing, "'We are sorry to announce that Herman Cain "'has tested positive for COVID-19 "'and is currently receiving treatment

Starting point is 00:17:17 "'in an Atlanta area hospital.'" How many times do we need to see a version of this story happen before we take it serious? But for now, that is where I'm gonna end this story. And of course, pass the question off to you. What are your thoughts on what we're seeing? And also, how have you been impacted right now? Have you lost your job?

Starting point is 00:17:29 Have you been hired back? Are you one of the people that lost your job, got it back, have lost it again? I'd love to hear from you. I know that a lot of people are experiencing a lot of different things and we don't learn about that unless we talk about it. And that is where I'm going to end today's show.

Starting point is 00:17:40 Once again, thank you for being a part of these daily dives into the news. Whether you're just, you're watching, you're liking the video, you're sharing it, you're taking part in that conversation down below, I appreciate you. Also, if you're new here, you wanna join the family. Hit that subscribe button, tap that bell

Starting point is 00:17:52 to turn on notifications, make it sure it looks like this. Otherwise, you might miss some, but with that said, of course, as always, my name's Philip DeFranco, you've just been filled in, I love yo faces, and I'll see you next time. I hope you liked this video. Subscribe if you like it.

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The Philip DeFranco Show - PDS 7.2 WE NEED TO TALK ABOUT GHISLAINE MAXWELL, Scary Truths About Unemployment, & Kylie Jenner

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