Will the West Break Up Over Greenland?
Well if anyone was short on things to discuss at Davos, now there’s Greenland.
Europe continues to struggle for a unified response to Trump’s move to take the big island from Denmark, either by force (which he’s not ruling out) or by using good old fashioned cash. While French leader Emmanuel Macron came out swinging against the tariff threat over the weekend, UK Prime Minister Keir Starmer was much more measured in his response and German leader Friedrich Merz walked back some of the more fiery rhetoric from his nation’s finance minister.
Trump unleashed fresh social media attacks against European allies and threatened crushing tariffs on French wine after publishing a text message from Macron.
If this is another example of Trump taking a radical opening position and then (don’t call it TACO), moving toward a middle ground, it’s certainly sending a message. The escalation in tensions hurt US equity futures, European stocks and the dollar on Monday.
What to do? Hit back with tariffs? A message to Norway’s Prime Minister seemed to indicate that the lack of a Nobel Peace Prize award was part of the problem.
One option for retaliation could hit investors: European countries hold trillions of dollars of US bonds and stocks, some of which sit with public sector funds. Speculation they could sell such assets in response to Trump’s renewed tariff. But that’s easier said than done.
Speaking of peace, Macron gave an early “no” to Trump’s Board of Peace, conceived last year as a Trump-headed body to oversee the redevelopment of post-war Gaza. Perhaps the price tag played a part: Trump is demanding that nations pay $1 billion for permanent membership, Bloomberg reported, a condition confirmed by the White House.
Also Read: Scammers Dupe Billionaires Seeking Access to Trump in Davos
Spending Deal Unveiled
Lawmakers clinched a deal on their last set of spending bills needed to avoid a government shutdown at the end of this month. The measures provide funding for Defense, Labor-HHS-Education, Transportation-HUD, and Homeland Security programs through the remainder of fiscal 2026.
House Republican leaders are aiming to vote on the bills this week before the chamber’s recess next week. Senators are out of town this week and back next week.
Though a full-year stopgap had been possible, negotiators reached a belated agreement on funding the Department of Homeland Security after the shooting by ICE of Renee Good, an observer in Minneapolis. A vote on that bill will be separate from the vote on the other three bills, Rep. Rosa DeLauro (D-Conn.) said in a statement. She had warned that a stopgap “will jettison the guardrails we have secured.”
Access the full text here and check back with Bloomberg Government throughout the day for a full breakdown of the package. Links to all partisan summaries of the package are in today’s BGOV Budget newsletter.
Also Read: Transportation, Housing Bill Includes Air Traffic Control Money
Eye on Tariffs (And Powell)
Today’s an opinion day at the US Supreme Court, and once again there’s a worldwide watch for a ruling on Trump ’s signature tariffs.
The justices never say ahead of time which decisions are ready for release, only that rulings are possible.
At issue are the April 2 “Liberation Day” tariffs, which placed levies of 10%-50% on most imports, along with duties imposed on Canada, Mexico and China in the name of addressing fentanyl trafficking. Arguments on Nov. 5 included some skeptical questions about whether a 1977 law that gives the president special powers during emergency situations extends to the tariffs.
A decision against Trump could open the way for more than $130 billion in refunds.
- Another wrinkle in the court’s red curtains is the leaked news that Federal Reserve Chair Jerome Powell will attend Wednesday’s arguments over whether Trump has the ability to fire Lisa Cook. Needless to say, it’s highly unusual for a Fed chair to attend a Supreme Court argument, and it’s never happened after the chair has publicly accused the president of using the justice system to pressure its rate decisions. Treasury Secretary Scott Bessent said that is a “real mistake.” Read our story about how Conservative lawyer Paul Clement is bucking Trump by defending Cook.
- Powell’s term as chair ends in May, and Bessent says Trump could name his replacement as soon as next week.
Also Read:
- Trump’s Tariffs Face Supreme Court Test. What to Know: QuickTake
- Americans Bear Almost All the Cost of Trump Tariffs, Study Shows
Crypto Boosts Trump Family’s Wealth
Crypto has become a key driver of the first family’s wealth in Trump’s second term, report Annie Massa and Tom Maloney.
Crypto holdings represent more than 20% of Trump’s wealth for the first time, according to a Bloomberg analysis. The Trumps have generated about $1.4 billion from crypto projects, as the president has signed crypto legislation and appointed regulators who tossed out lawsuits against the industry.
Even as crypto made the Trumps richer, the gains were offset by the plunging value of his social media company, Trump Media & Technology. Its shares were down 66% over the past 12 months, despite efforts to diversify into finance, crypto, and most recently, fusion power. The family’s overall net worth looks remarkably similar to last year, at $6.8 billion as of last week, according to the Bloomberg Billionaires Index. Read More
You’ll Be Hearing This Word a Lot
So far, the political word of the year seems to be affordability.
Mica Soellner takes an inventory of some of the ways that concept is being used by elected officials to justify what they want to do. Trump is leading the charge by suggesting the US running foreign countries—and tapping their oil reserves—is good for Americans’ pocketbooks. Read More
Before You Go
Judge Denies Lawmaker Bid to Block Revived ICE Visit Limits
A Washington federal judge refused to block, for now, a revived Trump administration policy that limits congressional access to immigration detention facilities, rejecting claims by House Democrats that the restrictions violated her earlier court order.
Grok’s Sexualized Images Test the Limits of AI Oversight
For the past several weeks, Elon Musk’s artificial intelligence chatbot, Grok, has been routinely and repeatedly used to digitally undress people on X. Despite a mounting outcry from global regulators, the tool has continued operating in the US with limited government intervention.
Trump’s Drug Pricing Proposals Draw Legal Questions From Pharma
The Trump administration’s plan to lower US drug costs through two new pricing models is prompting legal concerns from the pharmaceutical industry over the government’s authority to implement programs that favor foreign drug prices.
House Vote Puts Minnesota’s Boundary Waters, Mine Back on Radar
Republican lawmakers this week are reviving a years-long debate over a controversial mining project in Minnesota as the House plans to vote on a measure repealing Biden-era protections for a beloved wilderness area.
Second Partisan Tax Bill Faces Skepticism From Key Lawmakers
Leftover tax items on Republicans’ to-do lists before the midterms are running into challenging fiscal and political realities.
Trump 2024 Campaign Co-Manager Ends Suit Against The Daily Beast
President
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