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Tag: Economy

  • California back as world’s 4th largest economy

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    California has regained its bragging-rights ranking as the world’s fourth-largest economy.

    Using gross domestic product as the scorecard, my trusty spreadsheet compared fresh state-level data for the third quarter of 2025 from the Bureau of Economic Analysis with 2025 business output estimates for countries compiled by the International Monetary Fund, released in October.

    In the third quarter, California’s economy produced goods and services at a nation-leading annual rate of $4.296 trillion – a 4.5% increase from the previous year, according to the BEA. That was up from the second quarter’s $4.215 trillion rate.

    Only the U.S. ($31 trillion), China ($19 trillion), and Germany ($5 trillion) had larger business output last year, according to the latest tallies.

    California’s revised GDP pace pushed it ahead of Japan’s $4.28 trillion economy – but by just $16 billion. Japan had previously reclaimed the world’s No. 4 spot, surpassing California, according to the IMF’s October update of GDP results.

    GDP is a broad measure of the production of goods and services, often treated as a sign of economic health and a yardstick for comparing economies.

    This somewhat complicated economic number has become political buzz in the state. California’s business stature appears lofty when its output is compared to other nations through the lens of GDP, measured in U.S. dollars.

    But currency is a wildcard in the ranking math. The American dollar has been weak for the past year, which may help California’s global β€œrivals” on this scorecard when the IMF’s next update comes out in April.

    It’s a tight race for the world’s No. 4 economy. According to IMF data, just behind Japan and California is India, with an economy worth $4.125 trillion in 2025. Then there’s the United Kingdom at $3.96 trillion.

    So, roughly $300 billion – a 7% gap – separates these three countries from California on this vanity scoreboard. It’s likely that India’s fast-growing economy, powered by the world’s No. 1 population, will soon take over the No. 4 ranking.

    California reached the No. 5 global ranking in 2017 and moved up to No. 4 in 2024 after a long downturn in the Japanese economy.

    Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

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    Jonathan Lansner

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  • State, utilities seek faster grid hookups for new homes

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    BOSTON β€” The Healey administration is launching an initiative with the state’s two largest utilities to speed up the process of connecting new residential units to the regional electric grid as part of broader efforts to expand housing options.

    Under the Power Forward program launched Tuesday, the state will partner with National Grid and Eversource to conduct advanced grid studies for municipalities, which officials say will help communities evaluate where new energy-efficient housing can be built quickly and cost-effectively.

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    By Christian M. Wade | Statehouse Reporter

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  • Research Reports & Trade Ideas – Yahoo Finance

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    Analyst Report: General Motors Company

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    The Argus Min Vol Model Portfolio

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    Market Update: ABT, BRO, HBAN, BKR

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  • Healey seeks to delay federal tax cuts

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    BOSTON β€” Democratic Gov. Maura Healey is seeking to blunt the impact to state coffers from changes to the federal tax code under President Donald Trump’s new tax cuts and policy law, but business groups say the move would hurt Massachusetts’ competitiveness.

    Healey has filed legislation that would delay implementation of what she described as the five β€œmost costliest” changes in federal tax code created by Trump’s One Big Beautiful Bill Act until next year.

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    By Christian M. Wade | Statehouse Reporter

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  • U.S. Banks Need To Cut Their Credit Card Rates | RealClearPolitics

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    Otherwise, an improbable, but politically potent, Trump-Warren team could do it for them.

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    Sheila Bair, Financial Times

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  • What to know heading into tax season

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    What to know heading into tax season – CBS News









































    Watch CBS News



    Tax season officially begins Monday. “CBS Saturday Morning” breaks down what to know to make the most of your returns.

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  • 2028 Olympics could bring big wins for Los Angeles labor unions

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    LOS ANGELES β€” As Los Angeles ramps up for the 2028 Olympics, local unions are drawing inspiration from the Paris Games when hotel workers went on strike a day before opening ceremonies.

    The French workers waved signs at the five-star hotel where members of the International Olympic Committee were staying, threatening β€œNo Olympics!” if their demands were not met. A slew of labor union strikes surrounding those Games netted gains from higher salaries to better retirement benefits.

    Los Angeles labor leaders representing tens of thousands of workers across Southern California hope to employ similar strategies as the city prepares to host the Summer Games in 2028.

    Unite Here Local 11 co-President Kurt Petersen said his union has aligned more than 100 contracts that cover roughly 25,000 workers at hotels, airports, sports arenas and convention centers to expire in January 2028, mere months before the opening ceremony. The idea is to maximize bargaining power.

    United Food and Commercial Workers Local 770, which represents workers in the health care, grocery and packing industries; and Service Employees International Union Local 721, which represents more than 100,000 county employees, also plan to leverage contracts that expire in the first half of 2028.

    β€œWe are going to have a force … of working people to do whatever it takes, including striking if we have to during the Olympics in 2028,” Petersen said. β€œThe Olympics can’t happen without the workers.”

    A coalition of labor groups, community organizations and religious institutions are pushing for the Los Angeles Olympics organizing committee β€” known as LA28 β€” and the city to pay for building 50,000 housing units, pass a moratorium on short-term rentals like Airbnb, and protect immigrant workers.

    Jules Boykoff, a professor at Pacific University who has studied worker gains from past Olympics, called the Games a β€œonce-in-a-generation opportunity” for organized labor.

    β€œThese sports mega events are yet another social moment that helps us see with greater clarity, people who’ve been there working all along, who actually are essential workers,” Boykoff said.

    He pointed to wins by transportation workers and garbage collectors ahead of the Paris Games as examples.

    Who benefits from the Olympics

    Most of the economic benefits tied to the Olympics are short-lived, according to Robert Baumann, a professor at College of the Holy Cross who has examined data from several Games.

    Tourism and hospitality industries see a boost during the time period, while all other industries tend to suffer due to the general disruption to the host cities, Baumann said.

    But the Olympics still represent a powerful bargaining chip for workers.

    Axel Persson, general secretary of the CGT Rail Workers Union in France, said on the Real News Network podcast that his organization won several concessions ahead of the 2024 Paris Olympics, such as an earlier retirement with full pension and doubled pay for transportation workers during the Games.

    In Rio de Janeiro, more than 2,000 workers went on strike at venue construction sites two years ahead of 2016 Summer Olympics over benefits and working conditions. They parlayed the walkout into higher pay and an increase in workers’ lunch vouchers.

    City approves $30 per hour minimum wage for hospitality workers

    In Los Angeles, labor groups have been vocal about the Olympics benefitting workers critical to the Games’ success.

    The city recently approved a minimum wage of $30 per hour by July 2028 for workers at hotels with 60 or more rooms, an increase that’s set to be phased in over the next few years. The employees’ current minimum wage is $22.50.

    Business groups have said the increase will be a blow to the city’s tourism industry, which never quite recovered from the COVID-19 pandemic. Opponents are still trying to delay the wage hike until after the Summer Games.

    On the other side, local unions are collecting signatures for several proposed ballot measures, including one that would penalize corporations with CEOs who earn more than 100 times the company’s median employee. Another proposal would require the public to vote on developing major event and hotel projects, and a third would expand the $30 minimum wage to all workers.

    β€œWe need to make the Olympics and the CEOs who are gonna make money off the Olympics pay for things that our city and citizens need,” Petersen said.

    Business groups push back

    Los Angeles-area chambers of commerce are also using the fight over the Olympics to target a source of long-standing frustration in the business community β€” the gross receipts tax. Business leaders proposed a ballot measure to repeal the tax shortly after city council passed the hospitality worker minimum wage.

    The tax is levied on businesses’ total revenue before operating costs and accounts for more than $700 million in annual tax revenue, according to the city clerk’s office.

    The money makes up a key part of LA’s general fund, which pays for police, firefighters, homeless assistance and other core services.

    β€œBusinesses continue to get hammered in this city,” said Stuart Waldman, president of the Valley Industry and Commerce Association, one of the groups gathering signatures to repeal the tax.

    On the workers’ side of the ledger, employees like Thelma Cortez, a cook for the airline catering company Flying Food Group, say they are getting hammered by the cost of living. All of Cortez’s primary paycheck now goes toward rent for her and her three daughters. She works overtime or side jobs to make ends meet.

    She was excited when she heard LA would be hosting the 2028 Olympics.

    β€œI thought that, β€˜Well there will be more work, and maybe all airport and hotel workers can earn a little more,’” she said.

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    Jaimie Ding

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  • Research Reports & Trade Ideas – Yahoo Finance

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    Technical Assessment: Bullish in the Intermediate-Term

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  • City Council approves $447.4 million bond order to pay for construction of new high school

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    SALEM β€” The City Council voted unanimously Thursday night to borrow up to $447 million to pay for the construction of a new high school.

    The Massachusetts School Building Authority (MSBA) is expected to reimburse the city around 44% of the total project cost, but that percentage won’t be finalized until after the MSBA’s meeting in February. The MSBA requires communities to commit to paying up to the full amount of a new school project in order to move forward.

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    Michael McHugh can be contacted at mmchugh@northofboston.com or at 781-799-5202

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  • Healey touts record, highlights upcoming agenda

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    BOSTON β€” Democratic Gov. Maura Healey vows to reduce energy costs, improve health care, build more housing, fix the state’s transportation system, and push back against the Trump administration’s divisive policies.

    Settling into her fourth year in office and seeking another term in the November elections, Healey used her State of the Commonwealth address on Thursday to tout her accomplishments and outline her priorities for 2026 and beyond.

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    By Christian M. Wade | Statehouse Reporter

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  • Healey touts record, highlights upcoming agenda

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    BOSTON β€” Democratic Gov. Maura Healey vows to reduce energy costs, improve health care, build more housing, fix the state’s transportation system, and push back against the Trump administration’s divisive policies.Β 

    Settling into her fourth year in office and seeking another term in the November elections, Healey used her State of the Commonwealth address on Thursday to tout her accomplishments and outline her priorities for 2026 and beyond.

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    By Christian M. Wade | Statehouse Reporter

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  • UK inflation rises to 3.4% in December, above forecasts

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    A shopper browses fruit and vegetables for sale at an indoor market in Sheffield, UK. The OECD recently predicted that the UK will experience the highest inflation among all advanced economies this year.

    Bloomberg | Bloomberg | Getty Images

    The U.K. inflation rate rose to 3.4% in December, above forecasts of 3.3% from economists polled by Reuters.

    The inflation rate had cooled sharply to 3.2% in the twelve months of November, with the data encouraging the Bank of England to cut interest rates at its final meeting of the year last month.

    Core inflation, excluding energy, food, alcohol, and tobacco, stood at 3.2% in December, unchanged from November, according to the latest figures from the Office for National Statistics.

    “Inflation ticked up a little in December, driven partly by higher tobacco prices, following recently-introduced excise duty increases,” the ONS’ Chief Economist Grant Fitzner commented on X Wednesday.

    “Airfares also contributed to the increase with prices rising more than a year ago, likely because of the timing of return flights over the Christmas and New Year period. Rising food costs, particularly for bread and cereals, were also an upward driver,” he added.

    These increases were partially offset by a fall in rents inflation and lower prices for a range of recreational and cultural purchases, the ONS noted.

    Pound sterling was largely flat against the dollar following the data, at $1.3231.

    Chancellor Rachel Reeves told CNBC Wednesday that the Bank of England had expected inflation to rise slightly before it’s expected to cool into spring and summer, toward the central bank’s 2% target.

    “That continues to be their expectation and that continues to be my expectation, and that’s going to happen because of the measures I took in my budget last year,” she told CNBC at the World Economic Forum in Davos, Switzerland.

    The figures, coming after employment data on Monday which showed further cooling in the labor market, still raise doubts over whether the BOE will proceed with its expected February rate cut, or could hold off a little longer, however.

    “A small monthly rise in prices is unlikely to concern policymakers at the Bank of England in the short-term, especially as pay growth continues on a downwards trajectory,” Scott Gardner, investment strategist at J.P. Morgan Personal Investing, said in emailed comments Wednesday.

    “If pay growth continues to fall and this is reflected in inflation data, it could place pressure on the Bank of England to cut interest rates faster than expected. Markets are currently pricing in one to two cuts this year but this could change as inflation data for 2026 starts coming through,” he said.

    Matthew Ryan, head of Market Strategy at Ebury, said he expects the BOE to remain on hold for at least the next couple of meetings.

    “The hawks on the committee have long emphasised upside risks to U.K.Β inflation, but these arguments are losing steam amid the deteriorating employment picture and the moderation in wage pressures,” he noted Tuesday.

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  • Trump administration officials expect the strongest economy in years in 2026. Here’s why.

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    Senior Trump administration officials are forecasting a boom for the U.S. economy in 2026, driven by Federal Reserve interest rate cuts and historically large tax refunds.Β 

    “This quarter β€” the first quarter of 2026 β€” the United States of America’s $30 trillion economy will exceed 5% growth,” Commerce Secretary Howard Lutnick said on Fox Business on Wednesday, speaking from the World Economic Forum in Davos, Switzerland. By the end of 2026, he added, “You’re going to see 6% growth from the United States of America.”

    That would mark the fastest economic growth since late 2021, when the economy grew at a blistering 7% annual pace after many businesses started reopening during the pandemic. Outside of a few post-pandemic statistical outliers, economic activity in the U.S. has historically moved at a far more measured pace, typically averaging between 2% and 3% per quarter on an annualized basis.

    As outlined by Lutnick, the U.S. economy could get a lift this year if President Trump appoints a new Federal Reserve chair more inclined to lower the central bank’s benchmark interest rate, a move that could spur growth. Consumers could also have more money in their pockets from larger tax refunds under the Republicans’ tax and spending law, dubbed the “big, beautiful bill.”

    “It’s possible β€” I would say it’s even likely on a one-off basis,” Mike Skordeles, head of U.S. economics at financial services company Truist, told CBS News of Mr. Lutnick’s forecast. But he added that maintaining that growth for a full year is “a really tough hill to climb.”

    That’s because a number of economic headwinds are likely to persist into 2026 and could blunt any lift from lower borrowing costs and larger tax refunds, Skordeles said. Those include trade tensions stemming from Mr. Trump’s tariffs, as well as business uncertainty driven by the administration’s shifting economic policies.

    “Those are not positives for the economy,” Skordeles told CBS News. “One of those reasons why we’re not growing faster is uncertainty.”

    Truist forecasts 2.3% economic growth for all of 2026, while projections by other Wall Street economists range from 2% to 2.5%.

    A White House official pointed out that Lutnick’s forecast is in line with the Atlanta Fed’s forecast for fourth-quarter GDP growth of 5.4%.

    Risk of overheating

    The latest readings on the U.S. economy show a jump in growth, with third-quarter GDP expanding at a 4.3% annualized rate, according to recent government data.Β 

    On Tuesday, Treasury Secretary Scott Bessent said the economy is “likely accelerating,” citing anΒ analysisΒ from the Federal Reserve Bank of Atlanta’s GDPNow tool that pegs fourth-quarter GDP growth at 5.4%. The Commerce Department will announce fourth-quarter growth data on Feb. 20.Β 

    Yet there are risks to boosting the economy through interest-rate cuts and bigger tax refunds. Those same catalysts contributed to the searing inflation that drove the Consumer Price Index to a 40-year high in 2022.

    “What the secretary was intimating earlier today, to me, that doesn’t unlock a bunch of growth β€” it unlocks a bunch of inflation,” Liz Pancotti, managing director of policy and advocacy at Groundworks, a liberal-leaning think tank. Β 

    Inflation still isn’t down to the Federal Reserve’s goal of a 2% annual rate, with the December CPI showing that prices rose at a 2.7% annualized rate. Food prices remain elevated, rising at an annual pace of 3.1% last month due to sharply higher costs of staples like beef and coffee.

    “It’s not a single silver bullet that if we just lowered the [Fed’s interest] rate, it would make everything magically better,” Skordeles said. “You start giving these tax incentives, and you put more money in people’s pockets β€” it’s the classic ‘too many dollars chasing too few goods’.”

    Would workers benefit?

    Consumers remain generally dour about the U.S. economy, with recent CBS News polling finding that Americans want Mr. Trump to focus more on lowering prices.Β 

    While a stronger economy can translate into higher wages in many industries, workers are taking home a smaller slice of the economic pie. The labor share of the nation’s GDP slid to its lowest point since 1947, dropping to 53.8% in the third quarter of 2025, according to Bloomberg News.

    Even sharply higher economic growth might not do much to assuage public frustration with the cost of food, rent and other affordability issues, Pancotti said, pointing to the example of the strong post-pandemic growth under President Joe Biden. While GDP grew at a 7% pace for two quarters in 2021, Americans were more focused on pocketbook issues such as higher grocery and housing costs, she added.Β 

    “Joe Biden had [strong GDP growth], and yet his marks on the economy were low, given that people want lower prices,” she added. “They want to be able to afford their grocery bills and send their kids to summer camp.”

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  • Research Reports & Trade Ideas – Yahoo Finance

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    Analyst Report: Cintas Corporation

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  • ‘This will be an interesting trip’: President Trump to speak in Switzerland amid Greenland uproar

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    President Donald Trump will deliver a speech today at the World Economic Forum in Davos, Switzerland, focusing on a plan to make housing more affordable, while his comments about acquiring Greenland continue to stir tensions with European allies.”This will be an interesting trip. I have no idea what’s going to happen, but you are well represented,” Trump told reporters before departing the White House for Switzerland.The speech comes shortly after he threatened to impose tariffs on Denmark and seven other allies due to their opposition to his interest in acquiring Greenland. Trump announced that the tariffs would start at 10% next month and increase to 25% by June. The tensions over the U.S. interest in the Danish territory have already affected Wall Street, with stocks rattled on Tuesday.In Davos, Canada’s Prime Minister Mark Carney warned global leaders that the world is “facing a rupture,” emphasizing the risks of countries trying to avoid conflict by compliance. “There is a strong tendency for countries to go along to get along, to accommodate to avoid trouble, to hope that compliance will buy safety. Well, it won’t,” Carney said.Carney also added that Canada opposes tariffs over Greenland. Trump’s speech is expected to focus largely on housing, and following his address, he will meet with leaders at the forum, according to the White House.Home sales in the U.S. are at a 30-year low with rising prices. Reports show elevated mortgage rates are keeping prospective home buyers out of the market. Rent, for several years, has been the largest contributor to inflation.This comes as Trump announced his plan to buy $200 billion in mortgage securities to help lower interest rates on home loans. He’s also called for a ban on large financial companies buying houses. Keep watching for the latest from the Washington News Bureau:s

    President Donald Trump will deliver a speech today at the World Economic Forum in Davos, Switzerland, focusing on a plan to make housing more affordable, while his comments about acquiring Greenland continue to stir tensions with European allies.

    “This will be an interesting trip. I have no idea what’s going to happen, but you are well represented,” Trump told reporters before departing the White House for Switzerland.

    The speech comes shortly after he threatened to impose tariffs on Denmark and seven other allies due to their opposition to his interest in acquiring Greenland.

    Trump announced that the tariffs would start at 10% next month and increase to 25% by June.

    The tensions over the U.S. interest in the Danish territory have already affected Wall Street, with stocks rattled on Tuesday.

    In Davos, Canada’s Prime Minister Mark Carney warned global leaders that the world is “facing a rupture,” emphasizing the risks of countries trying to avoid conflict by compliance.

    “There is a strong tendency for countries to go along to get along, to accommodate to avoid trouble, to hope that compliance will buy safety. Well, it won’t,” Carney said.

    Carney also added that Canada opposes tariffs over Greenland.

    Trump’s speech is expected to focus largely on housing, and following his address, he will meet with leaders at the forum, according to the White House.

    Home sales in the U.S. are at a 30-year low with rising prices. Reports show elevated mortgage rates are keeping prospective home buyers out of the market. Rent, for several years, has been the largest contributor to inflation.

    This comes as Trump announced his plan to buy $200 billion in mortgage securities to help lower interest rates on home loans. He’s also called for a ban on large financial companies buying houses.

    Keep watching for the latest from the Washington News Bureau:

    s

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  • What Americans think of Trump, the economy one year into second term

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    It’s been one year since President Trump took the oath of office and became the United States’ 47th president. CBS News executive director of elections and surveys Anthony Salvanto has new polling on how Americans feel a year into Trump’s second term.

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  • Dow drops 870 points after Trump threatens European allies with tariffs over Greenland

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    The U.S. stock market plunged on Tuesday after President Trump threatened to impose fresh tariffs on European trading partners over the weekend, one of the latest developments in his bid to acquire the island of Greenland.

    The Dow Jones Industrial Average dropped 870 points, or 1.8%, to close at 48,489, while the S&P 500 fell 143 points, or 2.1%, to close at 6,797.Β 

    Major tech stocks took a hit, with the Nasdaq Composite sinking 2.4%. Nvidia and Amazon shares dropped 3.6% and 3.7%, respectively.Β 

    The rocky day on Wall Street came after President Trump said on Saturday on Truth Social that he would impose aΒ 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland beginning in February. Trump said the tariffs would rise to 25% on June 1 and apply to imports from NATO countries until a deal is reached for the purchase of Greenland.

    European markets and markets in Asia also fell on Tuesday.

    The European Union accounts for a large share of U.S. imports, with annual shipments from its member nations exceeding those from Mexico and China combined.

    Mr. Trump linked his aggressive stance on Greenland to last year’s decision not to award him the Nobel Peace Prize, telling Norway’s prime minister that he no longer felt “an obligation to think purely of Peace,” in a text message released Monday.

    Mr. Trump’s message to Jonas Gahr StΓΈre appeared to ratchet up a standoff between Washington and its closest allies over his threats to take over Greenland, a self-governing territory of NATO member Denmark.

    Mr. Trump’s threats have sparked outrage and a flurry of diplomatic activity across Europe, as leaders consider possible countermeasures, including retaliatory tariffs and the first-ever use of the European Union’s anti-coercion instrument.

    Davos meeting

    U.S. Treasury Secretary Scott Bessent, speaking on the sidelines of the World Economic Forum annual meeting in Davos, Switzerland, asserted that America’s relations with Europe remain strong. He urged trading partners to “take a deep breath” and let tensions driven by the tariff threats over Greenland “play out.”

    “Geopolitical events will remain in focus today, particularly any talks that may take place in Davos,” said Michael Brown, a senior research strategist at Pepperstone, referring to the World Economic Forum.

    Wedbush Securities analyst Dan Ives said the new tariff threat “is clearly an overhang on the conference,” but that it would likely simmer over time.

    “Our view is just like over the last year the bark will be worse than the bite on this issue and tariff threats as negotiations take place and tensions ultimately calm down between Trump and EU leaders,” Ives wrote in a note to clients.

    This week will bring more U.S. corporate earnings and the latest inflation measurement that’s preferred by the Federal Reserve for making policy decisions.

    The U.S. Federal Reserve’s next policy meeting is in two weeks. Interest rate traders currently place a 95% likelihood that the benchmark interest rate unchanged, according to CME Group’s FedWatch tool. The Bank of Japan has a monetary policy board meeting ending later this week.

    Silver and gold both rose to records again as investors sought safety amid heightened geopolitical tensions. Gold prices surged 3.7% and silver prices soared 6.9%.

    The price of U.S. crude oil rose 1.5% to $60.34 per barrel. The price of Brent crude, the international standard, rose 1.3% to $64.76.

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