"The only thing stronger and more intimidating than Trump is the US bond market. The interesting element to this is that market volatility may be just what's required to talk Trump down - the bond market getting a bit 'yippy', as Trump put it, last year helped to persuade the president to backtrack on some of the more aggressive elements of his tariff programme."
"The bond market is perhaps that only thing that will stop Trump going all the way on Greenland. And, on that front, we see some serious threats emerging from the Japanese bond market meltdown spilling over into a broader 'sell America' trade. Meanwhile, a Danish pension fund yesterday said it would offload £100mn in Treasury holdings, citing "poor government finances", but clearly Greenland made this decision somewhat easier."
"Canadian PM Mark Carney referenced Thucydides yesterday - the strong do what they can, the weak suffer what they must. In many ways he's right to invoke the Melian Dialogue ahead of talks over Greenland's future taking place in Davos - it details talks where Athens demanded neutral Melos join its empire. Increasingly it feels we are in a world where great power rivalry means the strong grab resources and territory and economic might while the rest have to make do."
Canadian PM Mark Carney invoked Thucydides' dictum and the Melian Dialogue in the context of upcoming Greenland talks in Davos, framing the issue as great power rivalry over territory and resources. President Trump flew to Davos with Greenland dominating World Economic Forum attention, and his address was delayed by about three hours. The US bond market is described as Europe's main lever against US unilateral action; bond-market volatility may persuade policy backtracking. Japanese bond-market stress and a Danish pension fund's offload of £100mn of Treasuries indicate emerging pressure and talk of rotating out of US assets, though US assets have previously rallied after shocks.
Read at London Business News | Londonlovesbusiness.com
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