DAVOS, Switzerland, Jan 21, 2026, 12:03 CET
- Bessent said Deutsche Bank’s CEO reached out to disavow an analyst note related to Greenland tariffs
- Trump’s tariff threats on Greenland have shaken markets and sparked fresh talk of “sell America” moves
- Italy’s Treasury throws its weight behind Monte dei Paschi CEO Lovaglio; China Water, listed in Hong Kong, secures court postponement on winding-up petition
U.S. Treasury Secretary Scott Bessent said Wednesday that Deutsche Bank’s CEO called him to clarify the bank did not support an analyst’s note suggesting Europeans might sell off U.S. assets over a Greenland dispute. Speaking at the World Economic Forum in Davos, Bessent described the claim as coming from “a single analyst” and being blown out of proportion by “the fake news media.” Deutsche Bank responded that its research operates independently and individual reports don’t necessarily represent management’s stance. 1
The flare-up hits as investors wrestle with a tariff threat driven more by geopolitics than trade calculations. President Donald Trump has pledged to impose a 10% import tariff starting Feb. 1 on products from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain. That rate would jump to 25% on June 1 if no Greenland deal is reached, Reuters reports. Berenberg chief economist Holger Schmieding said any hopes that the tariff tensions had eased “have been dashed.” 2
Trump plans to press his bid for Greenland once he lands in Davos, challenging European resistance in what Reuters calls the sharpest strain on transatlantic relations in years. “We need it for national security,” Trump said at a Tuesday news conference. NATO Secretary General Mark Rutte added that leaders “have to protect the Arctic against Russian and Chinese influence.” 3
The bigger question is whether the political tensions will spill over into markets in a way that’s tough to undo. Scope Ratings flagged Europe’s medium-term sovereign credit outlook as being pressured by the U.S.-Europe Greenland dispute and fresh doubts over EU-U.S. trade ties. Executive director Eiko Sievert noted that while a large, coordinated European selloff of U.S. assets seems unlikely, if it happened, it could spark “fire-sale dynamics” and unsettle markets. 4
In Italy, the government is quietly pressing on bank leadership. Sources say Italy’s Treasury backs keeping Luigi Lovaglio as CEO of Monte dei Paschi di Siena. It won’t support any board slate that suggests a different CEO, despite holding a remaining 4.9% stake. 5
Lovaglio’s record isn’t spotless. On Jan. 16, Gruppo Caltagirone, a key Monte dei Paschi investor, dismissed claims of a showdown with Lovaglio as off base. They called any link between boardroom tensions and a shareholder’s influence “an opportunistic reading,” Reuters reported. Meanwhile, Milan prosecutors are probing the bank’s Mediobanca takeover. 6
UniCredit hasn’t backed off from the same targets. CEO Andrea Orcel has talked with Delfin chairman Francesco Milleri about possibly acquiring the Monte dei Paschi stake Delfin holds, according to three sources who spoke to Reuters earlier this month. The bank is also eyeing Delfin’s Generali shares and remains above its capital goals after snapping up 26% of Commerzbank and nearly 30% of Greece’s Alpha Bank. 7
In Hong Kong, China Water Industry Group announced that a court has postponed the hearing of a winding-up petition against the company to Wednesday, Feb. 11, following a joint application and the hearing on Jan. 21. The company described ongoing “amicable negotiations” with the petitioner to resolve the outstanding amount and said it plans to push forward with settlement efforts alongside supporting creditors. 8
A winding-up petition is a court move aimed at liquidating a company. China Water disclosed in a November filing that the International Finance Corporation filed the petition in Hong Kong over an unpaid principal of RMB216,602,900 plus interest under a loan agreement. The company also cautioned that, according to Hong Kong’s winding-up law, any share transfers after the petition date might be invalid without a court “validation order,” and the clearing system could halt certain services.
