Wild ride

Good morning. Donald Trump’s latest musings catch the world’s attention. We have the latest developments on the Los Angeles fires. And now we know the perfect way to show off your wealth. Listen to the day’s top stories.

Donald Trump’s power grab for control of Greenland (the world’s biggest island, in case you weren’t sure) and musings about using “economic force” to absorb Canada as a US state are a fresh reminder of how rocky executing his trade agenda could prove. The unprecedented threats toward allies underscored Trump’s appetite for risk. But aides within the president-elect’s team have wildly divergent views on how best to accomplish his vision.
While this all plays out, a cohort of about 20 Republican House members from New York, New Jersey and California will meet with Trump on Saturday to discuss increasing the $10,000 cap on state and local tax deductions. Trump's economic advisers are considering doubling the deduction to $20,000, which would provide big savings to many residents.

Elon Musk is also busy, and setting his sights on Europe. The unelected South Africa-born multibillionaire is using his X platform to slam democratically chosen European leaders, including Germany's Olaf Scholz and the UK's Keir Starmer, accusing the latter of complicity in a decades-old child sexual abuse scandal. His actions have raised the hackles of several governments and left them unsure how to respond.
When you need a friend. Samsung shares rose after Nvidia founder Jensen Huang expressed confidence in the Korean company’s ability to resolve technical issues producing a new type of memory chip for AI systems. Staying social, Huang said he would be “delighted” to meet Trump. Click here to watch his interview at the CES show in Las Vegas.
Markets are catching their breath, with equity futures signaling a rebound for US stocks after yesterday’s sharp decline in Big Tech. If you’re a player in the bond market (or aspire to be one), 10-year Treasury yields may rise further to 5% as the economy hums along, according to Citigroup’s wealth division. That would be a buying opportunity. But beware. Last time bond yields surged like this, stocks sank.

Developing Story: California Wildfires

Here’s the latest as wildfires are burning out of control in the Los Angeles region, fueled by extreme winds, forcing thousands of residents to evacuate.

The Big Take

Opinion

Another edifice of the post-Volcker era of stability is cracking, John Authers writes. It might make sense to get used to the notion that bond yields will tend to trend up for the foreseeable future, not down.

Before You Go

Sign of real wealth. Mark Zuckerberg wore a rare Greubel Forsey 'Hand Made 1' watch worth about $900,000 in yesterday’s video explaining Meta's decision to end third-party fact checking. Only two or three models are produced each year.

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