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- [00:02]
A
TikTok finally has a deal to let it stay in the U.S. from Marketplace, I'm Sabri Benishore in for David Brancaccio. TikTok says it has formed a joint venture for U.S. operations with majority American ownership. The deal is intended to address national security concerns that led to a law that would have banned the app. Marketplace's Nancy Marshall Genzer joins us with the details. Hi, Nancy.
- [00:26]
B
Good morning.
- [00:27]
A
So how will this new arrangement work and how does it address the alleged national security concerns that led President Trump to try and ban TikTok during his first term?
- [00:37]
B
Well, in his social media post last night, President Trump said TikTok will now be owned by, quote, a group of great American patriots and investors. Now, three managing investors will each hold a 15% stake in the joint venture, but only two of them are American and the Chinese company ByteDance, which created TikTok. TikTok will retain a nearly 20% stake. Sabri, you remember, of course, Congress passed a law in 2024 requiring ByteDance to sell its U.S. operations or be banned here.
- [01:11]
A
Yeah. There were concerns that TikTok could be forced to share user data with Beijing or use its algorithm to push Chinese propaganda. Do we know who has ownership of that algorithm under this agreement?
- [01:24]
B
Apparently, ByteDance. In a press release, it just says the new joint venture will retrain, test and update the algorithm on US User data. And the algorithm will be, quote, secured in Oracle's US Cloud environment.
- [01:42]
A
So will I see much of a difference when I open up TikTok next?
- [01:48]
B
No, Sabri, the new joint venture is not expected to change your experience immediately as the algorithm that serves up content is retrained, users might gradually see some changes in how content is presented to them. But TikTok's global arm will still manage things like e commerce, advertising, and marketing.
- [02:09]
A
All right, Marketplaces. Nancy Marshall Genser, thank you so much.
- [02:12]
B
You're welcome.
- [02:25]
C
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- [03:26]
A
Framework deal on Greenland. The temperature between the US And Europe has come back down. The relationship, however, still got burned. And one question is whether Europe and the world are going to still want to be as closely tied to the US Financially. Specifically, could the appetite for US Debt shrink? Christopher Lowe, chief economist at FHN Financial in New York, is here to talk about that and some of the week's other economic news. Hi, Chris.
- [03:53]
D
Good morning, Sabri.
- [03:54]
A
So for the first time since 1996, the world is holding more gold than US bonds. Is this a sign of changing times, of a world that is less desirous of US Debt?
- [04:15]
D
It is, and it traces back to the beginning of last year, is when this trend really began. It reflects government policy. There's been a shift at central banks, particularly emerging markets, central banks buying literally tens of metric tons of gold every month. But because that puts upward pressure on gold prices, private investors have also shifted to buying a lot of gold. And that trend is even stronger overseas than it is here in the US which is one of the reasons that gold exports from the US Were one of the bigger contributors to a shrinking trade deficit.
- [05:11]
A
Turning home for a second, the personal saving rate has been declining all 2025 long. How long can that keep going before something in the economy breaks?
- [05:28]
D
Yeah, well, savings was relatively elevated a year ago, and that's because we had really strong stimulus coming, Congress starting with pandemic relief and then the green energy bill and all that stuff. But that flow of cash has dried up. And at the same time, while we have strong economic growth, we just had an upward revision to third quarter GDP to almost four and a half percent. It's really narrow in distribution and therefore a relatively small number of individuals who are producing and earning that income. So people are borrowing more to make ends meet. And as a result, the savings rate is coming down. I think it all ties back to affordability, which is at the top of consumer surveys on the economy. And it's not just inflation. The other side of the affordability equation is jobs and income, and they're not keeping up with prices.
- [06:37]
A
Lastly, for many Americans now and definitely this weekend, it is freezing cold. Like the temperature in Minneapolis is minus 21 degrees, which is insane In a month's time, are we going to see that hit in the economic data, people.
- [06:52]
D
Tend to stock up. So there's a big increase in spending before a storm like this and then a decline in activity, particularly travel activity after the storm hits. On net. It's, it's a wash. But you know, it is going to be evident in things like energy prices. Natural gas prices almost doubled this week from where they closed on Friday last week.
- [07:21]
A
Christopher Lowe is chief economist at FHN Financial in New York. Thank you so much.
- [07:26]
D
Thank you, Sabri.
- [07:29]
A
Marketplace exists to help you stay informed about the economy and you can put that knowledge to the test. Every Friday, we publish an economic news quiz. You can find it on our website, marketplace.org in New York, I'm Sabree Benishore with the Marketplace morning Report from 8pm American Public Media.
- [07:54]
E
I'm Rima Reis. And this week on this is Uncomfortable, fellow podcaster and host of Scamfluencers, Sarah Haggie joins me to sort out your work drama. We answer your questions about scammy bosses, managing workplace friendships and co workers who push the boundaries a little too far. I'm going to stay at your place for a bit while I'm breaking up and obviously I'll need a key. And that is how you get a squatter. Listen to this Is Uncomfortable on your favorite podcast app.