[Morning Briefing] 'Greenland dispute' sparks US-Europe trade war fears…eyes on the Davos forum

◆ Trump’s 'Greenland tariff' card rattles markets

Reuters reported on the 19th (local time) that concerns are emerging in financial markets about a possible “Sell America” wave (selling US assets) after US President Donald Trump signaled “Greenland tariffs” against eight European countries opposed to Greenland’s annexation. With New York markets closed for Martin Luther King Jr. Day, S&P 500 and Nasdaq index futures both fell about 1% in futures trading, and the US dollar also turned lower. The moves reflect worries that Trump’s tariff threats targeting European allies could revive a trade war. Still, some say it is unclear whether the Greenland tariffs will trigger a serious “Sell America” trend, given the US capital market’s solid growth momentum and the lack of clear alternatives.

◆ European stocks tumble on trade-war fears

European equities froze up as fears of a trade war with the US intensified. On the 19th (local time), the Euro Stoxx 50, which tracks blue-chip European stocks, closed at 5,925.62 points, down 1.72% from the previous session. Germany’s DAX fell 1.33%, France’s CAC40 slid 1.78%, and Denmark’s benchmark OMXC—of the country directly involved in the Greenland dispute—plunged 2.73%. European stocks had been hitting fresh records day after day this year, but the rally lost steam after Trump decided to impose an additional 10% tariff from the 1st of next month on eight European countries opposing Greenland’s annexation.

◆ Davos forum opens amid trade-war clouds

The Davos forum (the World Economic Forum Annual Meeting), where global political and business leaders gather to discuss major international issues, opened on the 19th (local time). About 3,000 people are attending, including 65 heads of state or government from around 130 countries, as well as politicians, business leaders and representatives of international organizations. However, attention is focused less on the official agenda than on off-stage maneuvering over the additional tariffs on eight European countries. With the US assembling its largest-ever delegation, President Trump is set to speak on the 21st, while European leaders are expected to meet him to discuss Greenland’s sovereignty and the additional tariffs. The EU plans to hold a leaders’ meeting of member states on the 22nd, the day after Trump’s speech, to discuss countermeasures.

◆ Police summon Rep. Kang Sun-woo over alleged receipt of 100 million won

Police will summon independent lawmaker Kang Sun-woo today (the 20th) for questioning as a suspected recipient of “100 million won in nomination money.” It comes about three weeks after an audio recording suggesting nomination payments was made public on the 29th of last month. Kang is accused of receiving 100 million won allegedly delivered by Seoul City Council member Kim Kyung via former secretary-general Nam Mo in exchange for a nomination ahead of the 2022 local elections (on charges including bribery under the Act on Aggravated Punishment, etc. of Specific Crimes). Kang previously left the Democratic Party of Korea as the controversy grew. Police have questioned the key figures—former secretary-general Nam and Council member Kim—three times each, and are expected to question Kang about disputed details, including how the alleged nomination money was received.

◆ Today is 'Daehan'…bitter cold even in daytime, below zero

Today marks Daehan (Major Cold) on the seasonal calendar, and the bitter cold is set to peak accordingly. Morning temperatures across most of the country are forecast to drop by about 10 degrees compared with yesterday, and daytime temperatures are expected to remain below zero for the time being. With strong winds, Seoul’s wind chill is expected to plunge to as low as –17 degrees. Daytime highs will range from –4 to 7 degrees, and fine dust levels are expected to be “good” across all regions.

Kim Bong-gu, Hankyung.com reporter kbk9@hankyung.com