Key Takeaways
- German Chancellor Friedrich Merz, speaking from Davos, underscored Germany's unwavering support for NATO and stressed the imperative for "massive" investments in defense. He also issued a warning of a firm European response should the U.S. implement new tariffs.
- NATO Secretary General Mark Rutte clarified that the alliance did not discuss Greenland's sovereignty in recent talks, though he noted Denmark and Greenland are amenable to an increased U.S. presence and are united in preventing Russian or Chinese access to the territory.
- The Kremlin has expressed appreciation for Donald Trump's peacemaking efforts and confirmed that President Putin is scheduled to meet with Trump's team, including Witkoff and Kushner, later today in Moscow.
- Fitch Ratings projects China's GDP growth will be constrained to 4.1% in 2026, primarily due to persistent weakness in domestic demand, despite robust export performance.
- Alibaba (BABA) is reportedly planning an Initial Public Offering (IPO) for its AI chipmaking unit, T-Head, while shares of Ubisoft (UBI.PA) plummeted 30%, marking the deepest decline in the stock's history.
German Chancellor Friedrich Merz delivered a special address at the World Economic Forum in Davos, advocating strongly against abandoning NATO and emphasizing the critical need for "massive" investments in defense. Merz also stated that Europe would respond firmly if the United States were to impose new tariffs. He conveyed Germany's solidarity with Denmark and the people of Greenland, supporting talks between Denmark, Greenland, and the U.S. on principles of sovereignty and territorial integrity.
NATO Secretary General Mark Rutte clarified that the issue of Greenland's sovereignty was not discussed by the alliance. However, Rutte noted that both Danes and Greenlanders are entirely open to a greater U.S. presence and are in agreement that Russia and China will never gain access to Greenland. Separately, Rutte affirmed that the decision regarding territory is ultimately up to Ukraine.
In Moscow, the Kremlin welcomed and appreciated the peacemaking efforts of Donald Trump and his team, specifically mentioning Witkoff and Kushner. A meeting between President Putin and Witkoff and Kushner is scheduled for after 7-8 PM Moscow time, with Ushakov slated to give a briefing afterward. Meanwhile, Ukraine's President Zelenskiy has arrived in Switzerland, with a meeting planned with Trump for 13 local time (12 GMT).
Fitch Ratings released a report forecasting that China's domestic demand will remain constrained by sluggish consumer confidence, deflationary pressures, and investment headwinds, limiting the country's GDP growth to 4.1% in 2026. Despite these domestic challenges, Fitch noted that China's exports have remained robust despite U.S. tariffs and are expected to continue supporting economic activity, providing some upside to the 2026 GDP forecast.
In corporate news, Alibaba (BABA) is reportedly planning an Initial Public Offering (IPO) for its AI chipmaking unit, T-Head. Concurrently, gaming giant Ubisoft (UBI.PA) saw its stock extend its decline to 30%, marking the deepest drop in the company's history. Financial expert Ray Dalio of Bridgewater suggested that central banks are purchasing gold to diversify away from fiat currencies and indicated a general diversification trend away from the U.S.. The Bank of Japan's Yen-Index for January 22nd registered 73.72, a slight decrease from the previous 73.79.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.