This week, a big meeting in Switzerland called the World Economic Forum is happening. Usually, this meeting is about countries working together. However, this year, there are big problems between the United States and Europe. These problems became worse because President Trump wanted to buy Greenland. This idea surprised many people and affected money markets. The fear of new taxes has made stocks go down.
President Trump wants to buy Greenland. Both Denmark and Greenland have said no to this idea. He has said he will put high taxes on European countries if he cannot buy Greenland. Because of this, Europe is thinking about its own taxes. They might tax about 93 billion euros of American goods. This fighting over trade is making global relations weaker.
Also, the European Parliament might stop a trade agreement with the United States. This was agreed on in July. This is a serious step and not just words. This is happening while world leaders are meeting in Davos. This shows how important the situation is.
The effect on money markets is clear. Stock markets have fallen a lot. The main stock markets in the United States had their worst days since October. European markets also fell. This shows that investors are worried.
On the other hand, the price of gold has gone up. People are buying gold because it is seen as a safe place for their money. This happens when there is global worry. The US dollar has also become weaker. This means people are not taking big risks with their money.
The CEO of deVere Group, Nigel Green, said that Davos is for cooperation. However, President Trump has made a dispute about land a big part of the trade talk. He also said Greenland is important. It connects politics, safety, and money power. World leaders cannot ignore it. President Trump says Greenland is important for US safety. He is worried about China and Russia in the Arctic.
These trade problems will have effects beyond just the money markets. The relationship between the US and Europe is getting more difficult. The idea of using diplomacy and money to get land could change international cooperation. As talks continue in Davos, a trade war might happen. This could affect the world's economy.