Ramble to break the 'ice' on the ski slopes

The real estate developer-president appeared at Davos with a rambling account fit for reality TV of his intention to make America great again. The point about his trip to the Swiss ski resort was about a 'piece of ice' that sits bang in the middle of US strategic interests. And Trump came bearing gifts. He said there wouldn't be any violence over Greenland, and the island would come in handy in building a missile shield for the western hemisphere.

The promise of rapid US defence buildup is the bargaining chip after threatened tariffs on European allies. The man told his European audience - with comments including about 'Somali IQ levels' that, at least, should have made the audience cringe - that the US will give them better security, at a higher cost. With Greenland thrown in. He just might get away with it.

Trump has upped the ante in negotiations with the EU. The US is offering the bloc greater security and more oil. That's a tough combo to turn down for EU member states. The prospect of US oil companies pumping out Venezuelan reserves and the US arms industry cranking up production can dull the 'rule of law' argument in European capitals. Will this tighter embrace make sticking Europe's neck out for Greenland worth it? Especially after agreeing to step up investments in the US for a trade truce?


Markets were expecting Trump would dial down things with allies. That seems to be the way 'Greenland' is headed. Reduction in tariff threats and likely EU retaliatory moves will help investors regain their nerve. This serves Trump in a midterm election year when bond vigilantes could stall his economic agenda. He has negotiated good terms for the US in trade and investment. Some additional real estate should not, he reckons, be a big ask.