Highlights for the morning: billionaires break records, EU prepares measures against US over Greenland

The US is threatening European countries with duties because of Greenland, the EU is preparing countermeasures worth tens of billions of euros and discussing the launch of an "anti-coercive mechanism", while the markets are reacting with a rise in gold and silver. These and other topics - in our review of key events for the morning of January 19.

The wealth of billionaires has reached a record $18.3 trillion, up 16% year-over-year and 81% since 2020, according to a new report by international association Oxfam. The number of billionaires has surpassed 3,000, while progress on poverty reduction has effectively stalled and remains around 2019 levels. According to the organization, the super-rich are increasingly using their fortunes to influence politics and media, which increases social and economic inequality.

Oxfam warns that authorities in many countries are making decisions in favor of elites - from tax breaks for the wealthy to cuts in international aid - that are fueling public discontent and protests. The organization calls for taxing the super-rich, creating barriers between money and power and proactive policies to reduce inequality, noting that further aid cuts could lead to millions of additional deaths by 2030.

Gold and silver broke records amid a sharp escalation of tensions between the U.S. and Europe over Donald Trump's plans to take over Greenland, Bloomberg reports. Gold climbed to $4660 an ounce, silver added more than 4%. The U.S. previously announced plans to impose duties against eight European countries, including Germany, France and Britain, which have opposed his attempts to gain control of Greenland and backed Denmark.

The rally of precious metals is supported by the growth of geopolitical risks, pressure on the Fed's independence and investors' departure from currencies and government bonds, the agency notes. Investors from China and inflow of funds into ETFs gave additional impetus to demand. Analysts expect continued growth: Citi forecasts gold at $5000 per ounce in the coming months, and silver - up to $100, the agency points out.

European capitals are considering retaliatory measures against the US for up to €93 billion, including duties and restrictions on US companies in the EU market, in response to Donald Trump's threats to NATO allies opposed to his plans for Greenland, the Financial Times reports. Such steps should strengthen the negotiating positions of European leaders.

The measures are being prepared ahead of key meetings with Trump at the World Economic Forum in Davos, where the EU expects to use potential sanctions as a pressure tool in negotiations, the newspaper said.

Donald Trump's trade threats against Europe over Greenland have raised the risk that European countries will start reducing investments in U.S. assets, which could support the euro, according to a strategist at Deutsche Bank, Bloomberg reports. Europe is the largest creditor of the U.S., owning U.S. stocks and bonds for about $8 trillion, and amid the undermining of geo-economic stability within the Western alliance, the motivation to hold such positions may weaken, the agency explains.

According to analysts, new U.S. duties can strengthen political consolidation within the EU, and the pressure on the euro may be short-term. The key factor for the markets remains the question whether the EU will decide to use its anti-coercive mechanism. At the same time, the greatest instability may be caused not by trade confrontation, but by possible pressure through finance - if countries start using investments and capital flows as an instrument of political influence.

- Japan's broad Topix index was falling 0.1 percent, while the Nikkei 225 was down 0.72 percent in Jan. 19 trading.

- Hong Kong's Hang Seng index was falling by 1.06%. CSI 300 index of mainland China - by 0.34%.

- In South Korea, the Kospi index added 1.52% and the Kosdaq added 1.36%.

- Australia's S&P/ASX 200 was down 0.33%.

- S&P 500 futures were down 0.84 percent, Nasdaq Composite futures were down 1.12 percent and Dow Jones Industrial Average exchange-traded contracts were down 0.72 percent.

This article was AI-translated and verified by a human editor