The Fate of TikTok, CEOs Flock to Trump, Global Government Collapses, and more.

Good morning. Today, we’re covering TikTok’s fight to stay in the U.S., the wave of CEOs visiting Trump, a looming government shutdown, SKIMS’ expansion, and more.

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Rashad Drakeford

Co-Founder & Publisher, Good Diet

The Fate of TikTok

TikTok is facing mounting scrutiny as the EU launches a probe into its role in Romania’s presidential election, and the U.S. inches closer to banning the app unless its Chinese parent company, ByteDance, divests ownership. The controversy spans national security, free speech, and global tech competition.

• EU Investigation: The EU launched a probe into TikTok over allegations that it failed to prevent foreign powers and fake accounts from interfering in Romania’s presidential election. TikTok is accused of hosting content that spread disinformation and anti-Western messaging during the campaign, contributing to Romania’s Constitutional Court decision to annul the first round of the election.

• U.S. Supreme Court Involvement: TikTok has appealed to the Supreme Court to block a law that would force ByteDance to sell the app by January 19 or face a ban, citing First Amendment violations. The court has agreed to hear oral arguments on January 10.

• Broader Implications: A TikTok ban could significantly disrupt businesses, creators, and consumers who rely on the platform, while opening opportunities for rivals like Meta (Reels) and Google (YouTube Shorts) to dominate the short-form video market. However, it also risks setting a precedent for restricting global digital platforms, potentially stifling competition and innovation.

• Geopolitical Tensions: This case underscores the growing conflict between the U.S. and China over technology, data security, and trade, raising broader questions about the future of foreign-owned apps and their role in global digital ecosystems.

CEOs Make the Trump Pilgrimage

Donald Trump’s upcoming return to the White House is reshaping relationships between corporate America and his administration, with business and tech leaders vying for influence and favor. From high-profile meetings to multimillion-dollar donations, executives are positioning themselves to align with Trump’s policy agenda and secure access.

• Corporate Outreach Intensifies: Top executives from companies like Meta, Google, and OpenAI have pledged multimillion-dollar contributions to Trump’s inauguration fund, with many attending private meetings at Mar-a-Lago. These efforts reflect a shift in corporate strategy, emphasizing proximity to power.

• Tech Titans Step Forward: Leaders such as Mark Zuckerberg and Jeff Bezos, previously critical of Trump, are engaging directly with his team, highlighting the strategic necessity of maintaining influence under his administration.

• Policy Implications: Trump’s agenda—focused on deregulation, tax reforms, and innovation—is driving businesses to align early, with hopes of shaping outcomes that benefit their industries.

• Global Context: Trump’s rising favorability and assertive diplomacy are filling a perceived leadership gap, with both domestic and international players angling for access to his decision-making process.

Global Political Turmoil

As Donald Trump prepares to return to the White House, three G7 nations—France, Germany, and Canada—are grappling with leadership crises. These developments threaten the unity of key U.S. allies as they face critical economic and security challenges.

• Canada’s Crisis: Finance Minister Chrystia Freeland resigned after clashing with Prime Minister Justin Trudeau over fiscal policies she labeled as “costly political gimmicks.” Her exit has amplified calls for Trudeau to step down, even from within his Liberal Party. With Canada’s economy at risk from Trump’s proposed 25% tariffs on imports, Trudeau’s leadership is under scrutiny, especially as his government trails 20 points behind the Conservatives in polls.

• Germany’s Snap Elections: Chancellor Olaf Scholz lost a confidence vote, ending his unstable three-party coalition government. New federal elections in early 2025 will reshape Germany’s leadership, leaving Europe’s largest economy with a caretaker government during a pivotal moment in the Ukraine war and Trump’s incoming presidency, which could disrupt transatlantic alliances.

• France's Government Collapse: President Emmanuel Macron's administration is facing a severe crisis following the ousting of Prime Minister Michel Barnier through a no-confidence vote. This political instability has led to Moody's downgrading France's credit rating from Aa2 to Aa3, citing concerns over deteriorating public finances and the government's ability to implement necessary fiscal reforms.

• Broader Implications: These crises reflect broader voter dissatisfaction across Western democracies, fueled by rising costs, immigration concerns, and growing populism. The far-right Alternative for Germany (AfD) and Canada’s Conservative leader Pierre Poilievre are gaining momentum, signaling potential shifts in governance toward more nationalist policies.

• Trump’s Influence: Even before taking office, Trump’s proposed policies, like tariffs on Canadian imports, and his disdain for NATO, are disrupting U.S. allies. His return underscores the need for stable leadership in Europe and Canada to navigate economic and geopolitical challenges.

Government Spending Bill Fails

The House of Representatives overwhelmingly rejected President-elect Donald Trump’s proposed plan to fund the government and suspend the debt ceiling, a move that escalates the risk of a government shutdown just before the holidays. With bipartisan opposition to the bill, Congressional leaders are scrambling to find a solution before the midnight deadline.

• What Happened?: The bill, which proposed funding government operations for three months and increasing disaster assistance, failed 174-235. Dozens of Republicans joined Democrats in opposing the proposal, which stripped out previously negotiated provisions, including funding for pediatric cancer research and pay raises for lawmakers.

• Why Did It Fail?: Trump’s last-minute demands, including raising the debt ceiling and cutting bipartisan agreements, alienated lawmakers on both sides. Democrats labeled the plan “laughable,” while some Republicans balked at Trump’s threats to “primary” those who voted against it.

• What’s Next?: House Speaker Mike Johnson vowed to regroup, but with federal agencies preparing for shutdown at 12:01am on Saturday, time is running out. A bipartisan agreement reached earlier remains on the table, but GOP infighting and Trump’s influence make its path uncertain.

• Shutdown Impact: A shutdown would furlough millions of federal workers, delay services like passport processing and disaster aid, and require essential employees (e.g., TSA, air traffic control) to work without pay. Programs like food assistance and Medicaid could face interruptions, and the economy could suffer billions in losses from stalled government operations.

• Zoom Out: This vote previews the turbulence likely in Trump’s upcoming term, as his demands test Republican unity and complicate bipartisan governance. The political chaos underscores the high stakes of balancing fiscal responsibility, party loyalty, and effective governance.

SKIMS Expands into Retail as IPO Buzz Grows

SKIMS, co-founded by Kim Kardashian and Jens Grede, is making headlines with its highly anticipated Fifth Avenue flagship store and ongoing speculation about a potential IPO. The brand is positioning itself as more than just a shapewear company, blending retail innovation with global expansion strategies.

• Fifth Avenue Flagship: The new NYC store reflects SKIMS’ evolution into a lifestyle brand, offering a personalized shopping experience and showcasing its diverse product line in the heart of luxury retail.

• IPO Buzz: Co-founder Jens Grede addressed rumors of a SKIMS IPO, hinting at the company’s readiness for the public market but emphasizing that timing is key. With its valuation surpassing $4 billion, investors are keeping a close watch.

• Retail Strategy Shift: While many brands focus on e-commerce, SKIMS is betting big on brick-and-mortar. The flagship launch signals confidence in physical retail as a critical component of its long-term growth.

• Cultural and Business Influence: SKIMS continues to redefine the shapewear and apparel industry, leveraging celebrity influence, inclusive sizing, and innovative marketing to solidify its status as a global powerhouse.

Planet Money: How Sports Gambling Blew Up

“Sports gambling isn't exactly a financial market, but it rhymes with financial markets. What happens on Wall Street somehow eventually also happens in sports gambling. So in the 1980s, when computers and deep statistical analysis entered the markets, it also entered the sportsbooks and changed the world of sports gambling in ways we see every day now. On today's episode, we have a story from Michael Lewis' new season of his podcast Against The Rules. We hear from a bookie who was able to beat the odds using statistical analysis, and the other bookie who managed to beat those odds, using an even more subtle science: behavioral analysis. Plus, how it's harder than ever to win against the house, and why those offers of free bets in TV ads are maybe not such a good idea.” (Listen)

DealBook Summit: The A.I. Revolution

“A panel of leading voices in A.I., including experts on capabilities, safety and investing, and policy and governance, tease out some of the big debates over the future of A.I and try to find some common ground. The discussion is moderated by Kevin Roose, a technology columnist at The Times.” (Listen)

Impolitic with John Heilemann: Dan Pfeiffer on Mystery Drones, Corporate Lackeys and Resistance 2.0

“John is joined by Pod Save America cohost, Message Box author, and former top Obama adviser Dan Pfeiffer to discuss Donald Trump’s flood-the-zone transition strategy and the Democratic Party’s future. Pfeiffer argues that the Biden administration’s failure to address the mystery drone story is part of a larger abdication that has let Trump present himself as if he’s been president since Election Day; that Trump’s self-evident intent to turn his second term into a pay-for-play wet dream for plutocrats offers Democrats a chance to seize the mantle of reform and regain their populist mojo; and that Resistance 2.0 can only succeed to the extent it avoids focusing excessively on Trump. Pfeiffer also conducts a kind of autopsy on his own 2024 election post-mortem with the high command of Kamala Harris’s campaign.” (Listen)

Popcast: The Messy Modern Music Business

“An interview with the record label veteran and Gamma founder, Larry Jackson, who has worked closely with Whitney Houston, Drake, Chief Keef and Lana Del Rey.” (Listen)

The Future of Everything: Waymo and the Robotaxi Race

“Waymo, the self-driving car startup owned by Google parent Alphabet, may be the front-runner in the race to lead the driverless car industry, but it’s got competition. Elon Musk’s Tesla and Amazon’s Zoox are also building out robotaxi technology and services to get riders in self-driving cars. On the second episode of our special series on the growing driverless car industry, host Danny Lewis looks at these companies’ efforts to catch up and where Waymo’s success could take it and its tech into the future.” (Listen)