Crypto News: Here's an idea

Good morning. Elon Musk may be about to get an even more powerful platform—TikTok. Donald Trump's team is looking at gradual tariff hikes. And cannabis cocktails are everywhere, but are they actually legal? Listen to the day's top stories.

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Elon Musk's social media empire may be about to expand. Chinese officials are evaluating a potential option that involves Musk acquiring the US operations of TikTok if the app is banned, people familiar said. It's unclear whether the multibillionaire, TikTok and ByteDance have held any talks. Meanwhile, two Chinese social apps, Xiaohongshu and Lemon8, took the top two positions on Apple's iPhone download charts in the US as users seek an alternative.

Could Elon Musk Buy TikTok US?

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Trump's economic team is said to be discussing a gradual approach to tariffs—increasing them by 2%-5% per month—to boost negotiating leverage and avoid inflation. The possibility of gradual US levies is stirring a note of optimism in the markets, but it's still anyone's guess how Trump's trade wars will influence the economy.

A plane drops fire retardant during the Eaton Fire near Altadena, California. Photographer: Benjamin Fanjoy/Bloomberg

Southern California faces another round of dangerous fire weather, with winds forecast to approach 70 miles per hour across Los Angeles, leaving millions on edge. Governor Gavin Newsom proposed a $2.5 billion "Marshall Plan" to assist emergency response and recovery efforts, as wildfires may result in insurance industry losses of up to $30 billion. Donald Trump is to visit to the area as soon as next week, according to the Wall Street Journal.

A Special Counsel report to the Department of Justice concluded that Trump would have been convicted for trying to overturn the 2020 presidential election. The president-elect countered that he's "totally innocent" and slammed Special Counsel Jack Smith as a "lamebrain prosecutor." On a more positive note with just a week until Inauguration Day, Ukraine's European allies are cautiously optimistic that Trump won't force Kyiv into premature negotiations with Russia, and Greenland said it's open to a closer relationship with the US. Stay tuned.

Crypto speedbump. Bitcoin's value has dropped almost 5% since the start of 2025. The cryptocurrency market is being hurt by speculation that the Federal Reserve's window for further interest-rate cuts is closing, leading to higher Treasury yields and a stronger dollar. Still, many remain optimistic about an enduring boom under Trump.

Deep Dive: Cannabis Cocktails

THC-infused hemp drinks are all the rage, but the law might stop that soon.

There are now hundreds of brands selling weed drinks as changes to drug regulation at the federal level, combined with the American public's intense interest in accessible marijuana products, have created a land rush.
This adds up to an industry that could be worth $8.7 billion by 2032, according to market-research firm Fact.MR.
But the industry's forward march is not assured as states try to create a path for legal businesses, and legislators deal with the confusion around acceptable THC levels.
Check out this video on how stronger marijuana is sparking a backlash.

The Big Take

When Online Gambling Unleashed Transnational Crime

A casino raid in a sleepy town in the Philippines revealed the mayor's business connections to Singapore's $2 billion money-laundering scandal, and sparked allegations of Chinese espionage.

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Opinion

Inauguration preparations in Washington. Photographer: Al Drago/Bloomberg

Rising inflation now may ruin the Trump 2.0 agenda even before it starts, increasing the risks of conflict with the Federal Reserve, John Authers writes. If prices were to climb 4% over the next 12 months, it would mean rate hikes and the derailing of much of Trump's growth plan.

More Opinions

Shuli Ren

I Was a Wall Street Analyst. They Are Irrelevant

Andrea Felsted

Versace Is the Wrong Fit for Prada's Ambitions

Before You Go

Photographer: Gabby Jones/Bloomberg

Got coffee? Starbucks reversed its open-door policy for bathroom breaks and restricted use of restrooms to paying customers only. The chain will also prohibit panhandling and disruptive behavior as it seeks to make stores more welcoming.

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