Here are four things you need to know this morning
Trump trouble: U.S. stock futures dropped more than one per cent this morning and European shares were down after U.S. President Donald Trump threatened tariffs on European countries for objecting to his plan to take over Greenland. Stock and bond markets in the U.S. are closed for Martin Luther King Jr. Day. Seema Shah of Principal Asset Management told the Wall St. Journal that investors had adjusted to the idea of trade levies but “now we see that tariffs can be used for pretty much any negotiation.”
Precious metals surge: Gold and silver jumped to new record highs amid fears of instability on the political and trade front as Trump intensifies his pursuit of Greenland. Spot gold rose almost two per cent to just US$4,670.
Carney weighs military gesture. Bloomberg reported that Prime Minister Mark Carney is considering sending Canadian soldiers to Greenland to take part in military exercises with NATO allies. Eight European nations have said they will undertake token NATO maneuvers in the autonomous territory of Denmark as a gesture of opposition to Trump’s threats. “A person familiar with the matter” said Mr. Carney had made no decision on such a move.
Faster pace: Canada inflation accelerated by more than expected in December, with the headline rate quickening to 2.4 per cent year-on-year. However, that faster-than-expected acceleration was driven in part by so-called base effects. In December 2024, the federal government temporarily eased taxes on products including restaurant food, toys and some alcoholic beverages. “This resulted in monthly declines for the exempt goods and services, which have now fallen out of the year-over-year movement,” Statistics Canada said.
