🚀 Europe fights back against Trump

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Market Overview
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Year To Date Performances:

1. The transatlantic alliance is currently facing its most severe fracture in decades as European leaders consider unleashing an economic “trade bazooka” to retaliate against President Trump’s intensifying push to acquire Greenland. By threatening eight key allies, including Denmark, France, and the United Kingdom, with a tiered tariff regime that could hit 25% by June, the White House has forced the European Union to weigh the activation of its never-before-used Anti-Coercion Instrument, a formidable policy suite designed to block U.S. firms from public tenders and potentially impose €93 billion in retaliatory levies. While France advocates for this "nuclear option" to defend territorial sovereignty, a more cautious Germany remains wary of a total market meltdown, yet the looming showdown at this week’s World Economic Forum in Davos suggests that last year’s hard-won trade agreement is effectively suspended. This volatile weaponization of trade for territorial gain has shifted the geopolitical landscape of the Arctic from a zone of cooperation to a flashpoint for potential global recession, marking a dangerous new era in international relations where economic leverage is used as a primary tool for territorial expansion.

2. Stellantis marked its fifth anniversary since the $52 billion merger of Fiat Chrysler and Groupe PSA yesterday, with a sober reality check, as U.S. shares sit 43% below their debut price following a volatile half-decade. While the automaker initially saw a surge in valuation that peaked in early 2024, a gruelling period of hyper-aggressive cost-cutting under former CEO Carlos Tavares decimated dealer relations and stunted product momentum, leading to a leadership vacuum filled by Antonio Filosa last summer. Filosa is now spearheading a high-stakes turnaround that abandons the rigid "Dare Forward 2030" electrification targets in favour of a pragmatic focus on revitalizing the Jeep and Ram brands while repairing fractured ties with suppliers and retailers. As the company enters 2026, which Filosa has deemed a pivotal "year of execution," the industry is watching closely to see if this transatlantic giant can finally prove that its massive portfolio of fourteen brands is a competitive advantage rather than a sprawling liability.

3. President Trump has introduced a transactional new era of diplomacy with the unveiling of a draft charter for his Board of Peace, which offers nations a permanent seat in exchange for a $1 billion cash contribution within the first year. Initially established with a United Nations mandate to oversee the reconstruction and stabilization of Gaza through 2027, the board’s charter suggests a far more expansive global remit that critics fear is designed as a direct rival to the UN Security Council. Under the proposed structure, Trump serves as the inaugural chairman with sweeping executive powers, including unilateral final approval over all majority votes, the authority to control meeting agendas, and the personal management of the multibillion-dollar reconstruction fund. While the White House characterizes the ten-figure fee as a voluntary demonstration of "deep commitment to peace," the high cost and centralized control have drawn intense scrutiny from allies, even as the administration rapidly fills an executive board with figures like Jared Kushner, Tony Blair, and Marc Rowan. Despite a lack of coordination with the Israeli government, which has publicly pushed back against the initiative, over sixty world leaders have been invited to join this "prestigious" assembly as it moves toward its first high-profile summit on the sidelines of the 2026 World Economic Forum in Davos.

   Headlines

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   2. Fed Chair Jerome Powell will attent the Supreme Court arguments over Lisa Cook’s firing by President Trump as the battle between the bank and government continues to intensify.