Good morning readers. In case you missed it last Friday, a federal investigation is underway after a door plug blew off an Alaska Airlines Boeing 737 MAX 9, creating a midair emergency. The NTSB, examining the relatively new jet, is scrutinizing pressurization systems and other components. The FAA's urgent grounding order has impacted 171 MAX 9 jets worldwide, including those operated by Alaska Air and United Airlines, causing significant flight disruptions. Investigators are seeking public aid in finding the missing part. This incident raises further safety concerns for Boeing, already scrutinized following two fatal MAX 8 crashes.

Let’s jump into today’s storylines.

In today’s digest:

• Everyone’s worried Elon Musk has a drug problem

• Headline Hustle: Leaders in Congress reach agreement on $1.6 trillion government spending level, Canada offers cities $3 billion to build homes, China doesn’t want you to use ‘Tibet’ anymore

• Will a Bitcoin spot ETF get approved this week?

• The Week Ahead: What to Expect

• Pulse Points: What’s Trending

BUSINESS

Rocket Man or Rolling Stone? The dual dynamics of Elon Musk

If Elon Musk's life were a movie, it'd be a heady mix of The Social Network and Fear and Loathing in Las Vegas. Musk, known for his innovative prowess and unpredictable behavior, is now the center of a whirlwind of allegations suggesting his unorthodox decisions might be fueled by more than just caffeine and ambition.

Musk's conduct has often been attributed to his creative genius or the immense pressure of running companies like Tesla and SpaceX. However, a darker narrative is emerging. Some executives, board members, and acquaintances whisper about Musk's alleged use of LSD, cocaine, ecstasy, and mushrooms – a cocktail of creativity and controversy.

These allegations aren't just idle gossip

At various exclusive gatherings, where phones are as welcome as a flat Earth theorist at a NASA conference, Musk's behavior has raised some concerns. These incidents, wrapped in layers of secrecy, add to the enigma while Musk's public dalliances with marijuana and a prescription for ketamine have only added fuel to the fire. But the ripple effects of these allegations stretch far beyond Musk's immediate social circle. Board members at Tesla and SpaceX are reportedly biting their nails, not over launch dates, but over Musk's personal escapades that could torpedo government contracts and investor confidence.

Professional and legal implications. Musk's alleged drug use isn't just tabloid fodder; it's a potential legal minefield. His actions could clash with federal policies, particularly concerning SpaceX's government contracts. Tesla's board, too, is in a tough spot, as Musk's personal choices could have seismic effects on the company's market standing and the U.S. space program. Elon’s legal shield, attorney Alex Spiro, maintains that he’s never flunked a drug test at SpaceX. However, the defense against the swirling rumors remains as thin as the Martian atmosphere.

Zoom out: In Musk's world, where personal and professional lives are as entwined as the wires in a Tesla battery pack, his mental health and work habits are under the microscope. Despite his acknowledgment of bipolar disorder symptoms and Asperger's syndrome, the investor community remains largely unfazed, buoyed by the financial success of his ventures.

Headline Hustle

🇺🇸 Congressional negotiators reach agreement on $1.6 trillion government spending level. In a crucial move to avert a government shutdown, Congressional leaders have struck a $1.59 trillion spending agreement for the 2024 fiscal year. The bipartisan deal, announced Sunday, allocates $886 billion to military and $704 billion to non-defense spending. The agreement, led by Republican House Speaker Mike Johnson and Senate Majority Leader Chuck Schumer, signals cooperation but doesn't eliminate the risk of a shutdown amid policy clashes. This development is a pivotal test for the narrowly divided Congress, particularly for Speaker Johnson, as President Biden urges prompt action to secure funding for national and domestic priorities.

🇨🇦 Canada offers $3 billion to cities to build more homes. Canada is tackling its severe housing shortage by incentivizing cities with a $3 billion fund to relax zoning laws that hinder residential construction. The government aims to boost urban density and address skyrocketing rents and homeownership difficulties, especially among younger citizens. This move, part of a broader strategy to ease housing pressures exacerbated by high interest rates and immigration surges, faces challenges from existing homeowners and local politics. While the federal target is an additional 100,000 housing units, experts argue this falls short of the need, with Canada requiring millions more by 2030 to meet demand and maintain affordability.

🇨🇳 China doesn’t want you to call Tibet, Tibet anymore. China is increasingly replacing the term "Tibet" with "Xizang," reflecting a broader assimilation drive under leader Xi Jinping. This shift aims to foster a unified national identity centered on the Han majority and loyalty to the Communist Party. The change accompanies Beijing's heightened control over the succession of the Dalai Lama, Tibet's spiritual leader, and fits into the Communist Party’s efforts to reshape global narratives in favor of its preferred terminology. The term "Xizang," rooted in China's Qing dynasty, represents a political stance, underscoring China's claim over Tibet. Beijing's policy intensifies efforts to assimilate ethnic Tibetans, imposing restrictions on Tibetan religion, education, and language, while rejecting claims of cultural dilution.

CRYPTO

ETF excitement marks cryptocurrency's game-changing moment

Wall Street is buzzing with the kind of anticipation usually reserved for the next iPhone launch or a Federal Reserve rate decision. This time, it's all about Bitcoin, and specifically, the U.S. Securities and Exchange Commission's (SEC) impending decision on spot Bitcoin exchange-traded funds (ETFs). It's a potential game-changer for cryptocurrency enthusiasts and traditional investors alike.

We shouldn’t get to excited

For years, the SEC has been the stern parent saying 'no' to Bitcoin ETFs, citing concerns over fraud and market manipulation. However, with Bitcoin's price shooting past $45,000, largely thanks to heavyweight asset managers like BlackRock and Fidelity showing keen interest, the mood is shifting.

Yet, for every Bitcoin bull, there's a bear lurking. Analysts warn of the SEC's historical reluctance to green-light such funds. There's chatter about a potential sell-off post-approval, as early birds might cash in their chips, leading to a substantial price correction. Meanwhile, asset managers are sharpening their knives, readying for a fee war. Grayscale Bitcoin Trust, a big fish with $27 billion swimming in its fund, plans to morph into a spot Bitcoin ETF and slash its management fee to stay ahead in the race.

But it's not all champagne and confetti. The operational nitty-gritty of setting up these ETFs is a headache, involving custodian accounts and ensuring liquidity. The SEC, in a rare display of cooperation, is working closely with asset managers to iron out these kinks.

Looking ahead…this entire saga is more than just about a cryptocurrency—it's a tale of market dynamics, regulatory hurdles, and investor psychology. As the world of finance watches with bated breath, the question remains: will the SEC finally swipe right on Bitcoin ETFs, or is this just another chapter in the cryptocurrency rollercoaster?

WEEK AHEAD

What to expect

• Presidential and parliamentary elections take place in Taiwan: The primary focus in the coming week is Taiwan's presidential and parliamentary elections, with China's President Xi Jinping emphasizing the "historical inevitability" of Taiwan's reunification with China.

• Earnings season kicks off this week: This week's earnings season begins with Wall Street banks and other financial giants, including BlackRock, Citigroup, JPMorgan Chase, Wells Fargo, BNY Mellon, and Bank of America, reporting their fourth-quarter figures on Friday.

What else is happening…

• The 2024 Australian Open, starting on a Sunday, will extend to a 15-day tournament for the first time, addressing the strain of lengthening game times on the traditional two-week schedule and aiming to reduce late-night matches.

• This Wednesday marks the 60^th anniversary of the Beatles' first US album, "Introducing the Beatles," featuring tracks from their debut album "Please Please Me".

SNIPPETS

Pulse Points

• New York Attorney General Letitia James is seeking over $370 million in penalties from Donald Trump in a civil-fraud trial for allegedly inflating his net worth to secure better bank loan and insurance terms.

• The Pentagon's second-in-command was unaware of Defense Secretary Lloyd Austin's hospitalization on January 1 until four days into assuming some of his duties, raising questions about the secrecy surrounding his health and why senior officials and President Biden were not informed sooner.

• Radio and podcast company Audacy has filed for Chapter 11 bankruptcy protection in Texas to decrease its debt.

• ESPN faces a growing issue with host Pat McAfee, who recently accused executive Norby Williamson of trying to sabotage him by leaking information to the media.

• Kim Yo Jong, sister of North Korean leader Kim Jong Un, warned of an immediate military strike in response to provocations, as North Korea fired artillery near the South Korean border for the third consecutive day.

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