Morning Brew Daily — Episode Summary
Episode Title: US TikTok Off to Rocky Start & Americans Think the Economy Stinks
Date: January 28, 2026
Hosts: Neal Freyman & Toby Howell
Episode Overview
Today's Morning Brew Daily dives into shifting consumer sentiment about the US economy, the rocky relaunch of TikTok in the US, major international trade moves, and evolving challenges in legacy media and tech. Neal and Toby unpack why Americans think the economy is in worse shape than during the pandemic, highlight the botched US TikTok relaunch and resulting backlash, and discuss consequential news in higher ed, grocery, health care, and aviation. The hosts bring their usual wit and sharp commentary, focusing on what the headlines mean for businesses and people, cutting through the noise with practical analysis and memorable quotables.
Key Discussion Points
1. The Doomsday Clock Moves Closer to Midnight
[00:57]
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The Bulletin of the Atomic Scientists has set its symbolic Doomsday Clock to 85 seconds till midnight, indicating unprecedented global risk.
- Factors: Nuclear tensions, climate change, unchecked AI, and biotech misuse.
- Methodology shift from minutes to seconds to track rapid global changes.
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Quote (Neal):
“Inflation’s hitting everything from groceries to Doomsday clock counts.” [02:08]
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Toby notes skepticism: Why are we closer to "doom" now than in 1962? Partly due to methods, partly due to today’s complex intersecting risks.
2. US Consumer Confidence Falls to New Lows
[02:49]
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Consumer Confidence Index plunges to its lowest since 2014.
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Public is more pessimistic than during pandemic-era lockdowns/unemployment.
- 55%: Hard to get a job (highest since pandemic).
- Inflation, job stagnation, and politics cited as top worries.
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Rich consumers still drive airline and luxury spending, but “one-legged stools everywhere you look”:
- Health care is only reliably hiring sector.
- Spending remains robust but mostly among the well-off.
- K-shaped economy persists, deepening inequality.
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Quote (Toby):
“It’s a one-legged stool everywhere you look.” [04:26]
(Echoing economist Diane Swonk) -
Only 14% of survey respondents expect more job openings in six months.
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Companies freezing or cutting jobs, with Pinterest laying off nearly 15% tied directly to refocus on AI.
- “People certainly have AI and how that's going to impact their job in the back of their minds.” (Neal) [05:27]
3. AI is the Shaky Driver of Near-term Economic Growth
[06:12]
- Despite bleak sentiment, GDP projections are optimistic—due to heavy AI investment.
- Most new business spending is on tech/data centers, not broad-based.
- Leaves the broader economy feeling unsteady — again: “a one-legged stool.”
4. TikTok’s Rocky US Relaunch and Censorship Controversy
[07:34]
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US version of TikTok launched last week, immediately plagued by severe glitches.
- Company blames cascading systems failure from a data center outage.
- Users accuse TikTok of politically-motivated censorship (e.g., DMs about “Epstein” were blocked).
- Prominent figures call for investigations: CA Gov. Gavin Newsom launches review.
- In 5 days, US app deletions jumped 150% among users.
- Notable exodus: TikTok falls out of top 25 US app downloads; new competitors (like Upscrolled) begin surging.
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Quote (Neal):
“All you have to do is go to the app store to see this change…TikTok is not there, which is crazy…” [08:04]
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Data security and technical responsibility now lie with Oracle, not ByteDance.
- “If the reason...is that your systems couldn't handle it, that's still not a good thing.” (Toby) [09:02]
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News in the creator economy: Khaby Lame, TikTok’s biggest star, signs a near-billion dollar monetization deal, underscoring TikTok’s past influence—but its future is uncertain.
5. The “Mother of All Trade Deals”: EU–India Agreement
[10:15]
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After 20 years, EU and India finalize a major trade agreement:
- Covers 2 billion people, 25% of global economy.
- India to drop/reduce tariffs on 97% of goods; major savings for European businesses.
- EU to cut tariffs on Indian imports over seven years.
- Both sides seek reliable trading partners as US tariffs rise and unpredictability grows.
- India’s protectionism softens; luxury imports (e.g., European cars, wine) see massive tariff reductions.
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The deal still pales in trade volume compared to US-EU commerce, but signals a shift: “middle powers” forging alliances to reduce dependence on the US and China.
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Quote (Neal):
“If we're not at the table, we're on the menu.” (Citing Mark Carney) [12:47]
6. CBS News’ Radical Revamp Under Bari Weiss
[16:04]
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Bari Weiss, new CBS News Editor-in-Chief, bluntly declares “the era of television news was dead” and insists on transitioning to digital-first news distribution (social, podcasts, newsletters).
- Americans spend twice as much time on news as 50 years ago, but now on digital channels.
- Reporters urged to “forget about which shows will pick up your stories and instead focus on reaching audiences on the Internet.” [16:40]
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CBS will bring in contributors with established digital audiences (e.g., podcasters Andrew Huberman, Peter Attia).
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Internal resistance and criticism: some staff object to message delivery style and concerns over recent editorial decisions undermining trust.
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Quote (Weiss, via Neal):
“If we stick to that strategy, we are toast.” [16:14]
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Social media overtakes TV as Americans’ main news source; confidence in mass media sets record lows.
7. Yale Makes Tuition-Free for Most; Aims to Burnish Relevance
[19:05]
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Yale expands financial aid:
- Families earning up to $200K/year get tuition-free college.
- Lower-income families ($100K or less) owe nothing (full ride).
- Move matches similar policies at Harvard, MIT, UPenn.
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Seeks to win over the “missing middle class,” not just low-income or wealthy legacy admits.
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Also a reputational play as ROI of college faces deeper scrutiny.
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Quote (Toby):
“They're trying to defend their legitimacy...trying to defend their relevance.” [21:18]
8. Rapid-fire Headlines
[22:01]
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Health insurance stocks crash: Medicare Advantage payment freeze shocks market, wipes out $100B+ in value. Lobbying expected to surge.
- “Prepare for an onslaught from the health insurance companies.” (Neal) [23:24]
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Amazon shakes up groceries: Scrapping Amazon Go and Amazon Fresh, folding all bets into Whole Foods as only successful brick-and-mortar concept; ends “Just Walk Out” technology at Amazon Go.
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Southwest Airlines to assigned seating:
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Ending 50-year open boarding/free for all.
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Sequential seat groups, checked bag fees; tries to shed its quirky differentiators in favor of higher revenue.
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Quote (Toby):
“Southwest used to be like the quirky airline…now it just feels the same as the rest of the industry.” [26:44]
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Notable Quotes & Memorable Moments
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On Consumer Confidence:
“It’s a one-legged stool everywhere you look.” (Toby, referencing economist Diane Swonk) [04:26]
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On TikTok Glitches:
“All you have to do is go to the app store to see this change…TikTok is not there, which is crazy…” (Neal) [08:04]
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On the future of broadcast news:
“If we stick to that strategy, we are toast.” (Bari Weiss via Neal) [16:14]
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On new media consumption:
“Walter Cronkite had competitors. We have 2 billion, give or take.” (Weiss, echoed by Neal) [16:40]
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On Southwest and Brand Identity:
“Southwest used to be like the quirky airline that it used to have a little idiosyncrasies…now it just feels the same…” (Toby) [26:44]
Important Timestamps
- 00:57 — Doomsday Clock & existential risk
- 02:49 — Consumer confidence hits decade lows, jobs/inflation worries
- 05:27 — AI and the freezing labor market
- 07:34 — TikTok US glitches, censorship allegations, user exodus
- 10:15 — EU–India “mother of all trade deals” analysis
- 16:04 — Bari Weiss’ digital pivot for CBS News
- 19:05 — Yale tuition expansion, middle class strategy, value debate
- 22:01 — Medicare Advantage rate freeze, Amazon pivots in grocery, Southwest ends open boarding
Final Thoughts
This invigorating episode unpacks how novel technology, public pessimism, and shifting economic fundamentals are shaking up everything from news media to air travel and higher education. The hosts mix sharp skepticism with accessible metaphors—“one-legged stools,” “vibe sessions”—and never let the gravity of the news overpower their signature levity. Even as TikTok stumbles and Americans grow gloomier about the economy, Neal and Toby find ways to keep things light—and always informative.
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