Chocolate and cocoa giant Barry Callebaut announced Wednesday that it has named former Unilever CEO Hein Schumacher as its new chief executive officer, even as the company reported weaker-than-expected first-quarter results showing a decline in the sales volume of its cocoa products.

The chocolate maker announced that its CEO, Peter Feld, will be stepping down on January 26 to explore “other career opportunities,” concluding his tenure of less than three years, according to a Reuters report.

According to analysts at Zuercher Kantonalbank, the change in CEO suggests that the business’s progress continues to fall short of expectations.

The world’s leading cocoa processor, which supplies chocolate for popular products like Magnum ice creams and Nestlé’s KitKat bars, reported a significant drop in first-quarter sales volume. 

For the period running from September to November, the volume decreased by 9.9%, totaling 509,401 metric tons.

The company’s shares were trading 3.4% higher at 0957 GMT, a rise largely attributed to the CEO change, according to analysts. 

This happened as the company confirmed its financial year outlook. Analysts had anticipated an average of 512,000 tons, based on a company-provided poll.

“The appointment of Hein Schumacher lands like a small bombshell,” Vontobel analysts were quoted in the report.

Significant transformation

Chairman Patrick De Maeseneire informed analysts during a call that Barry Callebaut is undergoing the most significant transformation in its history. 

He attributed this necessity to the company’s inability to anticipate the volatile geopolitical climate and the record-high cocoa prices that have severely impacted the market.

People often forget the right leader is in the right position at the right time. And the right time is often forgotten. And doing a transformation requires a certain profile of leader.

Maeseneire, however, contradicted last month, rejecting the claim that the company was investigating splitting its worldwide cocoa division from the main group.

AlphaValue analyst Filippo Ercole Piva noted to Reuters that Schumacher has experience in spinning off businesses, including the separation of Unilever’s Magnum ice-cream unit. 

Piva believes this expertise is why they are hiring him, stating, “They are paying for that.”

Industry relationships

Barry Callebaut’s change in leadership is the most recent among several such transitions at major consumer companies in the last 18 months.

According to a note from Vontobel, Schumacher, a Dutch national who was removed from Unilever in February 2025, will leverage his existing deep industry relationships with Barry Callebaut’s key customers.

Since assuming the role of CEO in April 2023, Feld has navigated the company through a period of elevated cocoa prices, a challenge that Barry is more susceptible to than firms directly serving consumers, leading to a subsequent downturn in demand.

The latest quarterly data, which serves as a measure of chocolate demand via cocoa grind, revealed a decline in Asia. 

Furthermore, in Europe, which accounts for approximately two-fifths of Barry’s revenue, the grind decreased by 8.3% compared to the previous year.

Barry Callebaut processes purchased cocoa beans to create cocoa butter and powder.

These ingredients are then used by manufacturers to produce chocolate and candy, which are ultimately sold directly to consumers.

Following three reductions to the company’s volume guidance last year, the November projection anticipates a mid-single-digit percentage drop in cocoa product sales for 2025/26.

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German companies sharply reduced their investments in the United States during the first year of President Donald Trump’s second term, as uncertainty over trade policy and tariffs weighed on business confidence, according to a report by the German Economic Institute (IW) seen by Reuters.

Between February and November 2025, German firms invested about 10.2 billion euros ($11.1 billion) in the US, nearly 45% lower than the roughly 19 billion euros recorded in the same period a year earlier.

The study, based on Bundesbank data, was seen by Reuters on Monday.

To smooth out volatile investment flows, IW compared the figures with the average investment level for the same months between 2015 and 2024, which stood at around 13.4 billion euros.

Even against that benchmark, investment since Trump returned to office was down by more than 24%, the report found.

Investment sentiment turns cautious

Samina Sultan, an IW researcher, said the decline reflected growing unease among German companies about the stability of the US trade environment.

Firms typically plan investments over several years, she noted, and abrupt policy shifts make it difficult to commit capital.

“When the fundamental assumptions of the economic environment are called into question, sometimes practically overnight, very few companies dare to make such far-reaching decisions,” Sultan said.

The German Chamber of Commerce and Industry, which regularly surveys around 6,000 German companies with production facilities in the US, had last year also recorded a notable shift in sentiment.

For years, respondents consistently reported an above-average outlook on the US economy, according to Volker Treier, the chamber’s head of foreign trade.

That changed after Trump announced an initial round of tariffs on April 2, Treier said in a report by NYT in May last year, adding that business confidence has since weakened.

“They have fallen against the trend,” he said. “Because tariffs are poison.”

Focus shifts back to domestic investment

Instead of expanding in North America, many German firms appear to be prioritising investments at home.

A separate survey by consultancy Deloitte of 216 German financial executives showed that only 19% were considering investments in North America, down from 25% previously.

The pullback comes despite Trump’s stated aim of using tariffs to encourage foreign companies to shift production to the US to avoid higher import costs.

According to IW, the resulting uncertainty has had the opposite effect, prompting companies to adopt a wait-and-see approach.

Exports also in decline

German exports to the US have also weakened. Shipments fell 8.6% between February and October 2025 compared with the same period a year earlier, marking the steepest decline since 2010 outside the COVID-19 pandemic.

IW said the drop was partly due to the depreciation of the dollar, but added that shifting trade policy and threats of additional tariffs played a major role.

Sector data showed auto and auto parts exports plunged nearly 19%, while machinery exports fell 10% and chemical shipments declined by more than 10%.

The institute argued the impact has been negative on both sides of the Atlantic, noting that tariffs have pushed up US input costs and contributed to inflation remaining above 2%.

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Investors are glued to Take-Two Interactive (NASDAQ: TTWO) on January 19 following reports of an explosion at Rockstar North’s headquarters in Edinburgh.

The explosion led to structural damage, pushing emergency services into temporarily sealing the building as well. However, no injuries have been reported so far.

Note that Rockstar North is the studio behind the most hotly-anticipated video game release on the calendar this year – Grand Theft Auto 6.

Naturally, therefore, investors are concerned that this tragic development in Edinburgh could result in a further delay in the release of that blockbuster title.

What caused the explosion at Rockstar North’s HQ?

Early reports from Edinburgh suggest the blast at Rockstar North’s headquarters originated in the building’s boiler room, though investigators have yet to confirm the precise cause.

Fire crews were dispatched just after 5 am local time and worked for several hours to secure the site, which sustained notable structural damage.

The incident forced emergency services to “seal off” the premises as well until safety checks were completed.

While no injuries were reported, the disruption has raised questions about the studio’s operations and whether development timelines could be affected.

Officials continue to probe the circumstances, with a full assessment expected in the coming days.

Should you expect a further delay in the release of GTA 6?

Grand Theft Auto 6 has already faced delays twice, fuelling frustration among fans and increased scrutiny from investors.

Originally slated for 2025, the flagship title is now expected to be released in November 2026 – making it the most closely watched release of the video game industry this year.

Naturally, the explosion at Rockstar North’s headquarters in Edinburgh sparked speculation of yet another delay.

However, such concerns appear “premature” – according to Gameranx. Why?

Mostly because no injuries were reported, and Rockstar has a global development footprint, which means work is not confined to a single office.

While structural damage is serious, there’s no “official” indication that the incident will alter GTA 6’s current November 2026 release window.

How to play Take-Two Interactive stock in 2026

Experts believe much of TTWO shares’ future performance hinges on the release and reception of GTA 6.

Therefore, provided that Take-Two Interactive Inc comes up with an “official statement” shortly, confirming the Edinburgh news is unlikely to result in any further delays, investors hardly have a reason to panic just yet.

The giant’s upcoming earnings in early February could prove a near-term catalyst, given it’s seen reporting 40 cents of profit on a per-share basis – up nearly 18% versus the same quarter last year.

Note that Wall Street firms are sticking to their “strong buy” consensus rating on Take-Two shares as well, with price targets going as high as about $300.

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Intuit stock price has nosedived this year, confirming a downward spiral that started in July last year when it peaked at $810 to a low of $545 today. It has plunged by 32% from its all-time high, erasing billions of dollars in value as the market capitalization fell from $226 billion to $150 billion. So, is this crash justified as it becomes a bargain?

Intuit stock price has crashed amid AI disruption fears

Intuit is a top software company that runs four companies: TurboTax, CreditKarma, QuickBooks, and Mailchimp.

QuickBooks is the world’s biggest accounting software, while TurboTax is a major player in the tax filing industry, where it helps millions of customers a year.

Credit Karma, on the other hand, offers different services, including credit scores, credit monitoring, and insights. MailChimp offers email marketing services to thousands of companies globally, and has become its main laggard.

Intuit stock price has crashed in the past few months, mirroring the performance of other software companies like Adobe, ServiceNow, and Salesforce. 

These companies have plunged as investors predict that they will be disrupted by artificial intelligence tools, especially those made by Anthropic. Intuit’s biggest single-day crash happened earlier this year when Anthropic launched Claude Opus 4.5, which brought more tools for coding, agents, and computer use.

Analysts and investors believe that these tools will replace some of the work offered by Intuit. Also, there is a likelihood that the company’s revenue and profitability growth will slow in the coming quarters.

Data compiled by MarketBeat shows that the average estimate among analysts is that the Intuit stock price is $794, down from $796, where it was three months ago.

Still, most analysts are bullish on the company, with 24 of them having a buy rating and 6 of them having a hold rating. None of the analysts tracking the company have a sell rating.

Goldman Sachs has a neutral rating of $720, while Cowen, Wolfe Research, BMO, and RBC have a buy rating with targets ranging between $730 and $820.

Intuit’s business is doing well 

The most recent results showed Intuit’s business continued doing well in the last quarter, a sign that the AI boom is not disrupting it so far.

Its revenue rose by 18% in the first quarter to $3.9 billion. Most of this revenue came from its Global Business Solutions, which made $3 billion. Its consumer revenue rose to $894 million, while its earnings-per-share rose to $1.59, up by 127% YoY.

The company expects that the annual revenue this year will be between $20.9 billion and $21.18 billion, while its operating income will be between $5.7 billion and $5.8 billion.

Meanwhile, data compiled by Yahoo Finance shows that the average revenue estimate for the current financial year will be $21.2 billion, up by 12% YoY, followed by $23 billion in the next financial year.

Intuit had become bargain, with its forward price-to-earnings ratio of 23, lower than the sector median of 25 and its five-year average of 37. 

Intuit share price technical analysis 

The daily timeframe chart shows that the INTU stock price has crashed in the past few months, moving from a high of $810 in July last year to the current $545. It recently plunged below the key support level at $637, its lowest levels on September 25, October 9,  and in November.

The stock has remained below all moving averages, while the Relative Strength Index (RSI) and the Stochastic Oscillator have all moved below the oversold levels.

Therefore, the stock will likely remain under pressure in the near term and then rebound later this year.  It may drop to the key support at $500 and then rebound as investors buy the dip.

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European markets opened the week on the back foot after Donald Trump reignited transatlantic tension with fresh tariff threats tied to a renewed push for “control” of Greenland.

The shock move jolted London and major continental indices, while EU capitals rushed to draft retaliation plans.

Beyond the immediate volatility, the episode is amplifying longer-term economic stress, fueling German capital flight, reshaping defence sector momentum, and deepening political fragility in France as Macron’s government leans on constitutional force to pass its 2026 budget.

Greenland tariff drama hits London markets

Trump’s latest Greenland power play rattled London investors on Monday, sending both the FTSE 100 and FTSE 250 lower after he threatened fresh tariffs on eight European allies, including Britain, unless the US gets a shot at buying Greenland.

The shock move, announced over the weekend, promises a 10% levy from February 1, escalating to 25% by June 1, on goods from the UK, Denmark, France, Germany, the Netherlands, Sweden, Norway, and Finland.

European markets quickly priced in the uncertainty, with the CAC 40 down 1.4% and the DAX falling 1.2%.

London’s blue chips proved relatively resilient, dropping just 0.6%, cushioned by defensive sectors and precious metals miners riding gold’s record highs.

Meanwhile, EU capitals scrambled to organise retaliatory tariffs worth roughly €93 billion on American goods.

Defence stocks surged on heightened geopolitical tension, while traders braced for further volatility ahead of Trump’s scheduled Davos appearance this week.

Trump’s Nobel grudge match

Trump’s personal beef with the Nobel Peace Prize committee just went geopolitical.

In a letter to Norwegian PM Jonas Gahr Støre, exposed by PBS on Monday, Trump claimed he no longer feels obligated “to think purely of Peace” because Norway’s Nobel Committee snubbed him, despite allegedly stopping “eight wars plus.”

The timing is seething: Støre and Finnish President Alexander Stubb had just appealed for de-escalation and a phone call to discuss the Greenland tariff threats.

Trump’s response weaponised his Nobel frustration, pivoting instantly to reasserting his demands for “complete and total control of Greenland,” arguing Denmark can’t defend it against Russia or China.

Støre calmly reminded Trump (again) that the Nobel Committee operates independently from his government.

The message reads less like diplomacy and more like a wounded ego unleashed on NATO allies, mixing personal grievance with territorial ambitions in a way that deepens transatlantic tension.

German capital flight: A 45% plunge in US investments

Germany’s investment exodus from the US just hit a new low.

Between February and November 2025, German firms sank just €10.2 billion ($11.1 billion) into the US, a staggering 45% collapse from nearly €19 billion the year prior, according to data from the German Economic Institute.

Even against the decade-long average of €13.4 billion, current flows are down 24%, researcher Samina Sultan noted.

The damage extends beyond greenfield projects: German exports to America fell 8.6% year-over-year (February–October 2025), marking the steepest decline since 2010 outside the pandemic.

Tariff threats and unpredictable trade policy are the culprits, leaving German multinationals, from automotive to machinery, in a holding pattern.

At Davos, German business chambers openly described Trump’s tariff regime as one of their “greatest burdens.”

Germany ranks third globally in US foreign direct investment, employing nearly 1 million Americans.

Yet Trump’s erratic negotiation tactics and escalating threats are forcing capital reallocation toward Europe and Asia.

France bribes socialists to avoid government collapse

France’s budget gridlock just became clearer: Macron’s government will ram through the 2026 budget using Article 49.3, a constitutional power-play that bypasses parliament, after Socialist support made a no-confidence vote less likely.

PM Sebastien Lecornu capitulated on Friday, announcing €8 billion in corporate surtaxes, a 50-euro monthly raise for low-income workers, and scrapped pension tax cuts to secure the left’s abstention.

The Socialists initially extracted their pound of flesh: €8 billion in extended corporate taxes (not the halved €4 billion he proposed), retained at full strength instead of being eliminated.

Lecornu also abandoned his “pro-business” agenda, refusing cuts to production taxes, a cornerstone of Macron’s second-term economic strategy.

Boris Vallaud, Socialist leader, signalled cautious approval, saying “the Minister’s announcements allow us to imagine that we will not need to vote no-confidence.”

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UnitedHealth Group (NYSE: UNH) remains in focus ahead of the health insurance company’s Q4 earnings scheduled for next week on January 27th.

But for long-term investors, its upcoming earnings – even if they beat expectations – may not mean much given the macro environment is turning against UNH under the Trump administration.

UnitedHealth stock is currently trading at a historical discount and has secured Warren Buffett as a major investor as well.

However, recent developments, including new Medicare accusations and President Trump’s “Great Healthcare Plan,” suggest UNH shares may be risky to own in 2026.  

New Medicare accusations could hurt UnitedHealth stock

UNH stock is less appealing now that the company is facing fresh scrutiny after a US Senate probe alleged that the insurer uses “aggressive tactics to maximize Medicare Advantage payments.”

Recent reports claim the giant deployed advanced artificial intelligence (AI) tools and specialized staff to identify discretionary diagnoses (often minor conditions) that lifted federal reimbursements regardless of medical necessity.

US lawmakers, including Sen. Chuck Grassley, accused UnitedHealth of “gaming” the system by inflating risk scores to secure higher subsidies.

These accusations raise the risk of “tighter” government oversight, potential fines, and reputational damage. For investors, these could mean pressure on margins and deteriorating confidence in the company’s long-term growth story.

Trump’s Great Healthcare Plan is a bane for UNH shares

UnitedHealth shares are unattractive to own in 2026 also because President Donald Trump recently said his Great Healthcare Plan will “get rid of insurance brokers and corporate middlemen.”

While this could lower healthcare premiums for Americans under his tenure, this policy change – if enforced – could mean a significant hit to UNH’s margins.

Eliminating or even trimming middlemen role may hurt its profitability and weaken its competitive advantage.

In short, investors believe this regulatory change will reduce the firm’s pricing power and expose it to heightened scrutiny, which is why its share price has inched down in January.

How to play UnitedHealth ahead of earnings on Jan. 27

Investors are recommended to exercise caution in playing UNH ahead of its Q4 print, also because the elevated medical care ratio remains an overhang on its stock.

The management’s guidance withdrawals have rattled investors, and these news headwinds (Senate findings and Trump’s healthcare plan) won’t make things any better in the near-term.

That’s partly why options traders forecast a continued downside in UnitedHealth to roughly “$291” or about 12% from here over the next three months.  

Even from a technical perspective, the health insurance firm is just as unattractive – having recently slipped below its key moving averages (100-day and 200-day), indicating bears will likely remain in control over the next few weeks.

These insights more than offset the charm of a 2.67% dividend yield on UnitedHealth stock.

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Barclays raised its 12-month price target on Micron stock (NASDAQ: MU) to $450 from $275 on January 15, 2026, while Wells Fargo simultaneously lifted its target to $410.

The aggressive dual upgrades have reignited optimism around the memory chip maker, but the real question is whether a forward P/E of 12 times already prices in the upside.​

Micron stock: What triggered the analyst surge

The upgrades came after Micron reported blowout Q1 results: $13.64 billion in revenue (up 57% year-over-year) and non-GAAP earnings per share of $4.78, beating consensus by 27%.

More importantly, management’s Q2 guidance was stunning.

The company projected revenue around $18.7 billion with gross margins expanding to roughly 68%, an 11-percentage-point sequential jump.

That acceleration signals peak scarcity. Micron explicitly stated its high-bandwidth memory production is completely sold out through 2026 with locked multi-year pricing agreements.

On news of the Barclays upgrade, Micron stock jumped over 7% to $362.75 on heavy volume, signaling institutional conviction.

Director Teyin Liu’s insider purchase of 23,200 shares at roughly $337 per share further validated the bullish thesis.​

Barclays’ Thomas O’Malley and Wells Fargo’s Aaron Rakers weren’t alone.

KeyBanc, Cantor Fitzgerald, and RBC Capital all raised targets to $425–$450 within 24 hours, creating consensus around structural supply tightness rather than cyclical optimism.​

The valuation math: What $450 really implies

Micron stock currently trades at a forward P/E of 12 times, above its five-year average of 20 times.

Wall Street consensus averages $360–$379, well below Barclays’ $450 call.

That disconnect reveals the real debate, not about earnings growth (consensus expects 100% EPS growth for fiscal 2026), but about whether the market should expand valuation multiples while Micron approaches peak profitability.​

The bull case is straightforward. High-bandwidth memory capacity is genuinely sold out.

SK Hynix, which controls 60% of global HBM shipments, has warned that DRAM shortages could extend through 2028.

Even with Micron’s aggressive capex expansion to $20 billion in fiscal 2026, new fab capacity won’t meaningfully arrive before 2027–2028.

Until then, Micron can harvest premium pricing as AI demand absorbs all incremental capacity.​

The risks most analysts minimize

The memory cycle has a brutal history. Peak-margin periods typically precede 30–50% earnings contractions within 12 months as supply catches up.

Samsung and SK Hynix are building capacity. If either accelerates ramps faster than Micron, pricing power erodes quickly.

Additionally, execution risk is real, fab buildouts face lengthening lead times, and clean-room expansions can slip.​

Valuation also leaves no cushion for disappointment. At 12 times forward earnings, Micron is priced for perfection.

If macro conditions deteriorate or AI spending softens, HBM demand could normalize faster than consensus expects, compressing multiples while earnings decelerate.

The $450 target assumes sustained supply tightness, continued AI acceleration, and 55–60% gross margins through 2027. If that materializes, $450 is reasonable.

The $360–$380 consensus assumes more conservative margin normalization and multiple compression.

For momentum traders, the analyst upgrades cleared technical resistance. For value investors, elevated valuation and memory-cycle risk suggest waiting for a pullback.

Micron’s fundamentals are improving, but the stock prices in much of the story already.

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Gold stocks are inching “meaningfully” higher this week as the underlying commodity (gold) itself climbed to a fresh all-time high of nearly $4,700.

Spot gold prices have staged a dramatic rebound from their recent low of “$4,200” as geopolitical tensions continue to cross borders.

The recent rally underscores gold’s enduring role as the ultimate “safe-haven” – the asset investors instinctively turn to when geopolitical uncertainty rattles financial markets.

With political tensions escalating and global risks multiplying, the price action is a reminder that gold remains the anchor of stability in turbulent times – and gold stocks are riding the wave higher.  

What’s driving gold stocks higher this week?

The primary catalyst for gold’s ongoing surge has been the “Greenland” dispute, which erupted after President Donald Trump threatened tariffs on EU nations unless the US was allowed to pursue its strategic ambitions in the Arctic territory.

The remarks unsettled global markets, sparking fears of a transatlantic trade clash. Investors, wary of unpredictable policy moves, rushed into safe-haven assets, sending gold to record highs.

As the metal soared, gold miners and related stocks followed suit, magnifying the gains thanks to their leveraged exposure.

In recent weeks, the Greenland situation has become a symbol of escalating geopolitical instability, and gold stocks are benefiting from investors’ flight to safety.

What if the Greenland situation deteriorates in coming weeks?

Gold and the related equities appear strongly positioned to retain their recent gains, even if the Greenland situation cools off in the weeks ahead.

Why? Primarily because Trump’s push for the Arctic territory has made one thing abundantly clear to investors: the current US government is highly unpredictable, capable of dramatic policy shifts at any moment.

That uncertainty alone can sustain gold demand.

Moreover, geopolitical risks extend far beyond the rising transatlantic clash.

The Russia-Ukraine conflict continues to grind on, the Palestine-Israel crisis remains unresolved, and Iran’s escalating rhetoric adds another layer of instability.

With multiple flashpoints simmering globally, investors have ample reason to maintain exposure to gold. The Greenland issue may fade, but the broader climate of uncertainty ensures gold’s safe-haven appeal endures.

Why gold stocks are a better investment than gold itself

While physical gold offers stability, gold stocks often deliver “amplified returns” when the metal rallies.

Miners benefit from fixed extraction costs, meaning every uptick in gold prices expands margins disproportionately. This leverage makes equities more “volatile”, but also more rewarding in bull markets.

Additionally, many gold companies pay dividends, providing income streams that bullion cannot.

Investors also gain exposure to exploration success and operational efficiency – factors that often drive performance beyond gold price.

In short, gold stocks combine the defensive qualities of the commodity with the growth potential of equities, making them a compelling choice for those seeking both safety and upside.

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Federal Reserve Chair Jerome Powell will attend Supreme Court oral arguments on Wednesday, a rare public show of institutional support as justices decide whether President Trump can fire Fed Governor Lisa Cook.

The case tests whether the president’s removal power overrides decades of Fed independence protections or whether Cook’s “for cause” defense holds water.

Powell’s appearance underscores the stakes for Fed independence

Powell’s attendance marks a symbolic escalation.

The Fed chair almost never appears at Supreme Court hearings, making his decision to sit in the courtroom a deliberate message: the institution views this case as existential.

His presence comes days after Powell disclosed that the Trump administration issued subpoenas to the Fed, threatening an unprecedented criminal investigation into Powell himself on allegations tied to a controversial headquarters renovation.​

That timing amplifies the institutional tension.

Experts warn that if the Court permits Cook’s removal, Powell’s own vulnerability increases substantially.​

Cook was appointed to her 14-year Fed term by President Biden in 2023.

In August 2025, Trump cited alleged mortgage fraud, in which Cook designated two homes as her primary residence on loan documents to secure better terms.

She has denied wrongdoing and faces no criminal charges.

Trump fired her on August 25, but Judge Jia Cobb blocked the removal on September 9, ruling Cook had a “substantial likelihood” of winning on the merits.

Justices face a fundamental question

The legal question is deceptively simple: can a president remove a Fed governor for alleged conduct before taking office, or only for actions during service?

Trump’s lawyers argue pre-office conduct is fair game, claiming mortgage fraud demonstrates unfitness for a financial regulator role.

Cook’s team counters that accepting pre-office conduct as grounds for removal guts the entire “for cause” protection, transforming Fed governors into at-will employees.​

Cook hasn’t been charged with any crime. Her lawyers describe the allegations as “manufactured” pretexts for policy disagreements, pointing out that Trump has repeatedly clashed with Fed decisions on interest rates.

The Supreme Court blocked lower-court rulings temporarily, but permitted Cook to remain in office while litigation proceeds.

That decision itself signals skepticism toward Trump’s removal effort. Yet the Court has shown sympathy for presidential removal authority in recent cases, leaving the outcome uncertain.​

112 years of unbroken independence

No president has ever removed a sitting Fed governor in the institution’s 112-year history.

A ruling for Trump would set a precedent that could reshape the Fed’s relationship with the White House permanently.

Former Fed and Treasury officials have warned the Court that permitting removal could trigger economic instability and erode public trust in central banking.​

For Powell, attending sends a clear signal: the Federal Reserve intends to defend its independence. Wednesday’s arguments will determine whether that defense holds.

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European capitals are weighing their response to President Donald Trump’s latest tariff threat, this time tied to his controversial push to acquire Greenland.

While the White House has signaled duties of about 10% on eight NATO allies beginning February 1st, analysts warn the real battle may not be fought at the ports but in the financial markets.

According to Deutsche Bank, the EU collectively holds an estimated $8 trillion in US assets, making it Washington’s largest foreign creditor.

That immense exposure gives the bloc a “powerful lever” should tensions escalate into a full-blown trade confrontation, raising the prospect of capital flight and dollar rebalancing.

EU’s financial firepower in the Greenland dispute

In his latest report, Deutsche Bank’s senior strategist George Saravelos highlighted that the EU’s role as America’s biggest lender is often overlooked in trade debates.

With holdings in US bonds and equities nearly double those of the rest of the world combined, the continent has the ability to inflict real pain if it chooses to unwind positions.

“For all its military and economic strength, the US has one key weakness: it relies on others to pay its bills via large external deficits,” he told clients.

That reliance makes Washington vulnerable to shifts in European capital allocation. A Greenland-driven tariff war could accelerate withdrawals – echoing moves already seen from Danish pension funds last year.

Weaponizing capital markets, not trade flows

What makes this confrontation especially dangerous is the possibility that Europe could “shift” the battlefield from tariffs to finance.

Experts warn the bloc has the capacity to weaponize capital markets by restricting US companies’ access to EU liquidity or by rebalancing away from dollar-denominated assets.

Such moves would strike at the heart of America’s funding needs – disrupting treasury yields and undermining investor confidence.

Saravelos argued that “it is a weaponization of capital rather than trade flows that would by far be the most disruptive to markets.”

If Europe chooses this path, the fallout could extend well beyond Greenland, shaking Wall Street and global capital alike.

Capital markets brace for transatlantic turbulence

The wider concern isn’t simply tariffs on steel or autos but the ripple effects across global finance.

With the US net international investment position at record negative levels, the interdependence between European and American markets has never been greater.

Any significant rebalancing of dollar exposure could trigger volatility in currencies, equities, and bonds worldwide.

Saravelos cautioned that while the euro may not suffer as much as feared, investors should prepare for heightened uncertainty.

If the EU starts to weaponize its financial clout, the consequences may reverberate far beyond Greenland.

For Wall Street, the risk is clear: it would be capital, not trade, that becomes the frontline in this geopolitical standoff – should there be one.

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