US President Donald Trump's address at the World Economic Forum in Davos, Switzerland on Wednesday, covering topics from Greenland and energy policy to financial market performance and cryptocurrency regulation, has drawn significant attention from the international political sphere and markets. On the issue of Greenland, Trump explicitly ruled out the use of military force, stating, "I don't need to use force, and I don't want to use force." However, he simultaneously emphasized that without "complete ownership" of Greenland, it would be legally and psychologically difficult for the US to defend it, pointing out that Greenland is crucial to his "Golden Dome" missile defense plan. Trump asserted that mere lease arrangements are insufficient for defense needs and expressed a desire for "immediate negotiations" on the matter. Following these remarks, spot gold experienced a brief decline of approximately $40. Despite Trump dismissing the military option, his stance has raised concerns among European allies. Previously, several leaders at Davos had voiced apprehension over his Greenland comments, suggesting they could further strain transatlantic relations. In his speech, Trump stated that the US "strongly believes" in its alliance with Europe, highlighting energy, trade, immigration, and economic growth as core issues for maintaining Western unity.
Regarding the economy and markets, Trump reiterated the strong performance of US markets during his administration, claiming that since the November 2024 presidential election, US stocks have achieved "52 record highs." Since his inauguration on January 20, 2025, the three major indices have shown impressive overall gains: the S&P 500 has risen 13.3%, the Nasdaq Composite has climbed 16.9%, and the Dow Jones Industrial Average has increased by 11.5%. Trump views this performance as evidence of the effectiveness of his economic policies.
On energy policy, Trump once again voiced clear support for the oil and gas industry, stating that US natural gas production is "far above any point in history," with oil production also at high levels. He noted that increased energy supply helps reduce inflation and improve living standards. Trump also mentioned the approximately 50 million barrels of crude oil the US gained following the change in Venezuela's situation, along with the country's vast potential reserves, which could further depress energy prices. He indicated that gasoline prices in several states have already fallen below $2.50 per gallon. However, data from the American Automobile Association shows the national average for regular gasoline remains around $2.83 per gallon, albeit lower than the previous year. Concurrently, Trump stated his administration would "vigorously develop nuclear energy" but continued to criticize renewable energy projects like wind power, claiming they damage the environment and landscapes. Nuclear energy concept stocks collectively rose, with Oklo Inc (OKLO.US) gaining over 6%, NuScale Power (SMR.US) up over 9%, Centrus Energy (LEU.US) rising 0.68%, and Cameco (CCJ.US) increasing over 2.7%.
In financial regulation, Trump called on Congress to pass a cryptocurrency market regulation bill. Bipartisan senators had previously attempted to advance related legislation, but progress stalled due to a proposed ban on crypto platforms paying yields to deposit customers, which drew opposition from some crypto firms. The crypto industry argues that high yields are a key tool for attracting investors, while community banks worry such high-yield products could trigger deposit outflows. White House officials have expressed dissatisfaction, but it remains uncertain whether the bill can be revived. Following Trump's speech, Bitcoin saw a short-term increase, reclaiming a position above $90,000.
Trump explicitly stated that his nominee for Federal Reserve Chair will be a man. This aligns with reported shortlists including White House economic adviser Kevin Hassett, Fed Governor Christopher Waller, former Fed official Kevin Warsh, and BlackRock executive Rick Ried. Trump said, "I will be announcing a new Fed chairman in the near future. He will be a man. I think he'll do a fantastic job, he will be a highly respected person." Additionally, Trump commented, "Every candidate for Fed chairman interviewed wonderfully. But the problem is, once he takes the Fed chairmanship, his position changes, which is somewhat disloyal. It's amazing how much a person changes once they get the Fed chair position. Anyway, Fed Chairman Powell acted too slowly on interest rates. I hope the new Fed chairman does his job properly."
In his Davos address, Trump also made strong remarks concerning Europe and Canada, stating that parts of Europe have "become unrecognizable" and suggesting Europe is "not moving in the right direction." French President Emmanuel Macron had previously warned that power politics could lead to "a world without rules." Responding to Canadian Prime Minister Carney's comments that "the old order will not return," Trump publicly rebutted during his speech, stating that Canada is "highly dependent on the US" economically and for security. These statements have further heightened market focus on the direction of North American and transatlantic relations.
Comments