Trump Eases Trade War; US Stocks Surge; SpaceX IPO Push by Musk Before July

Trump Cancels Tariffs on Eight European Countries

Greenland Cooperation Agreement with NATO

U.S. President Donald Trump announced via social media that he has reached a "framework agreement" with NATO Secretary General Mark Rutte regarding future cooperation in Greenland and the Arctic region. If implemented, this agreement would benefit the U.S. and all NATO member countries. Trump stated that he will not proceed with the tariffs originally set to take effect on February 1 against eight European nations opposing U.S. interests in Greenland.

Stock Market Reaction

Following Trump's announcement to cancel the tariffs and the agreement on Greenland, U.S. stock markets saw a significant rebound, with all three major indices rising over 1%.

Federal Reserve Chair Candidate Update

Potential Candidates

Trump indicated that the list of candidates for the Federal Reserve Chair has narrowed down to "possibly just one," without revealing the name. He expressed a desire for the new chair to emulate former chair Alan Greenspan, mentioning Rick Rieder and Kevin Warsh as potential candidates. Trump also hinted at wanting to retain his current economic advisor, Kevin Hassett.

Davos Speech Highlights

Criticism of Allies and Support for Nuclear Energy

During his speech at the Davos Forum, Trump criticized traditional allies like Europe and Canada, reiterating his interest in acquiring Greenland and expressing support for nuclear energy as a power source for AI.

Supreme Court's Cautious Stance on Fed Board Dismissal

Legal Concerns

The U.S. Supreme Court justices expressed caution regarding Trump's attempt to dismiss Federal Reserve Board member Lisa Cook over unverified mortgage fraud allegations, suggesting it could undermine the Fed's independence and cause market turmoil.

EU Emergency Summit Scheduled

Ongoing Discussions

The European Commission confirmed that an emergency summit of EU leaders will proceed as planned, despite Trump's tariff cancellation. The EU continues to engage with the U.S. on various levels to protect its interests.

Elon Musk's SpaceX IPO Plans

Ambitious Timeline

Reports indicate that Elon Musk aims to take SpaceX public by July, amidst discussions of deploying data centers in space, a concept facing significant technical challenges.

OpenAI's Fundraising Efforts

Meeting with Investors

OpenAI CEO Sam Altman is reportedly meeting with top Middle Eastern investors to secure at least $50 billion in funding, with the company's valuation expected to reach between $750 billion and $830 billion.

Stock Market Performance

Major Indices and Tech Stocks

On the day of Trump's tariff cancellation, the Dow Jones rose 1.21%, the S&P 500 increased by 1.16%, and the Nasdaq climbed 1.18%. Notable tech stocks also saw gains, with Nvidia up 2.95% and Tesla rising 2.91%.

Intel's Major Defense Contract

Stock Surge

Intel shares surged nearly 12% after announcing a significant contract with the U.S. Department of Defense, marking a high point for the company in over three years.

Apple and Tesla Updates

Siri and Cybercab Developments

Apple plans to upgrade Siri into a chatbot by late 2026, while Musk indicated that initial production of Tesla's Cybercab and Optimus robot will be "extremely slow."

Kraft Heinz Stock Decline

Shareholder Concerns

Kraft Heinz shares fell nearly 6% following news that major shareholder Berkshire Hathaway may sell a significant portion of its stake, raising concerns about the company's future.

Hong Kong Market Movements

Capital Inflows

On January 21, net inflows into Hong Kong stocks reached HKD 13.93 billion, with notable purchases in major companies like Alibaba and Tencent.

Company Earnings Forecasts

Positive Projections

Several companies, including Kingdee International and Shanghai Electric, have issued optimistic earnings forecasts for 2025, indicating strong growth potential.