Trump speaks at Davos; Powell attends Supreme Court hearing; markets decline, gold and silver rise.

Trump Discusses Greenland and Tariffs

Tariff Strategies and Greenland Acquisition

On January 20, U.S. President Donald Trump addressed reporters, discussing potential strategies if the Supreme Court limits tariff tools. He mentioned alternative methods, such as a "licensing system," emphasizing that the current approach is the "best, strongest, fastest, simplest," but not the only option. Trump reiterated his goal of acquiring Greenland, stating he would not rule out the possibility of using force.

EU's Response to U.S. Tariff Threats

The European Parliament announced on the same day that it would freeze the approval process for a trade agreement with the U.S., seen as a response to Trump's recent tariff threats. Trump plans to impose a 10% tariff on goods from Denmark and other European countries starting February 1, increasing to 25% by June 1 unless an agreement on Greenland is reached.

Market Reactions

Concerns over a potential trade war led to declines in both U.S. and European stock markets. Gold and silver prices hit new highs, with gold rising over 2% to approximately $4,766 per ounce. The S&P 500 index fell by 2.06%, marking its largest single-day drop since October.

Davos Forum and Economic Predictions

Trump's Participation in Davos

Trump is attending the World Economic Forum in Davos, Switzerland, with a large delegation. The forum, running from January 19 to 23, focuses on the theme of "the spirit of dialogue." Trump is expected to deliver a speech during the event.

Economic Growth Forecasts

U.S. Commerce Secretary Howard Lutnick projected that the U.S. GDP growth could exceed 5% in the first quarter of 2026, potentially reaching 6% if interest rates are lowered. He warned Europe against retaliatory tariffs, which could escalate trade tensions.

Stock Market Updates

Major Indexes Decline

U.S. stock indexes fell sharply, with the Nasdaq down over 2%. Major tech stocks, including Nvidia and Tesla, saw significant losses. The Nasdaq China Golden Dragon Index also dropped by 1.44%.

Notable Company Performances

• Netflix: Reported Q4 revenue of $12.05 billion, slightly above expectations, but its Q1 outlook fell short, leading to a post-market drop of over 5%.
• Amazon: CEO Andy Jassy noted that Trump's tariffs are beginning to raise prices on some goods.

Conclusion

The ongoing tensions between the U.S. and Europe regarding tariffs and trade agreements are impacting global markets. Trump's statements on Greenland and tariffs have raised concerns about a potential trade war, while economic forecasts suggest a cautious outlook for growth in the coming quarters.