What we’re reading (1/21)
“Trump’s Head-Spinning Greenland U-Turn” (Wall Street Journal). “The about-face started with an hourlong speech at the World Economic Forum, where the U.S. president said he wouldn’t deploy the military to take control of Greenland. Later, following a meeting with North Atlantic Treaty Organization Secretary-General Mark Rutte, Trump called off promised tariffs on European nations, contending that he had ‘formed the framework of a future deal’ with respect to the largest island in the world.”
“Stocks Rebound After Trump Backs Off European Tariffs” (New York Times). “Stocks stabilized on Wednesday, recouping much of Tuesday’s sell off after President Trump backed down from his previous threat of imposing more tariffs on any European ally that went against his plan to take over Greenland. Mr. Trump said that the tariffs, originally planned to start at the beginning of next month, were no longer necessary because he had reached ‘the framework of a deal’ related to Greenland with European counterparts.”
“Big Tech Earnings Put Spotlight On AI And Memory Shortage As Trump Tariff Threats Loom” (Yahoo! Finance). “AI will undoubtedly lead the conversation. As in prior quarters, questions remain about how companies are monetizing their vast investments in the red-hot technology and whether hyperscalers like Amazon (AMZN), Google (GOOG, GOOGL), and Microsoft (MSFT) and social media giant Meta (META) will continue to increase spending.”
“Trump Warns Powell Won’t Be ‘Very Happy’ If He Stays On At Fed” (Bloomberg). “‘We’ll see how it all works out,’ Trump said in an interview from Davos, Switzerland with CNBC that aired Wednesday. But when pressed on Powell potentially staying on as a Fed governor until 2028, Trump who has been searching for a replacement chair, cautioned that ‘if that happens, his life won’t be very, very happy, I don’t think.’”
“Howard Lutnick Heckled At World Economic Forum Dinner” (Financial Times). “The gathering on Tuesday night descended into uproar after combative remarks from Lutnick, the people said, with widespread jeering, some guests walking out and appeals for calm from Fink, head of the world’s largest asset manager and interim co-chair of WEF.”
