Trump's Greenland Push: A Timeline of a Crisis

President Donald Trump is still scheduled to address the World Economic Forum in Davos at his planned time, despite a mechanical issue delaying his flight to Switzerland. The US president is expected to speak to global business and policy leaders at 2:30 p.m. local time.

A WEF spokesperson confirmed the schedule remains unchanged even after Trump's initial aircraft was forced to return to Joint Base Andrews near Washington. The delay, which lasted over two hours, required the president and his delegation to board a replacement plane.

Mechanical Failure Delays Trump's Arrival

The incident began Tuesday when Trump's first flight departed around 9:45 p.m. local time but returned shortly after 11 p.m. White House Press Secretary Karoline Leavitt stated that the crew discovered "a minor electrical issue" after takeoff and decided to turn back out of an abundance of caution.

After landing, Trump's delegation switched to a new aircraft and took off again for Switzerland just after midnight. Instead of the planned 747, the president is traveling on a smaller Boeing 757, a plane typically used by the vice president and other Cabinet members. Upon arriving at Zurich airport, he will proceed to the mountain resort of Davos for his address and a series of meetings with foreign leaders.

Geopolitical Headwinds Await in Davos

Trump's visit, which included a virtual address to the forum in 2025, occurs amid significant international friction sparked by his recent policy moves. The scheduled speech, intended to focus on domestic affordability issues, has been overshadowed by major geopolitical crises.

Key points of contention include:

• Greenland: Threats to make Greenland a part of the U.S. have caused tumult among allies.

• Gaza: An effort to create a "Board of Peace" for Gaza is viewed by some partners as an attempt to undermine the United Nations.

• NATO Tensions: Trump has threatened tariffs against eight NATO partners, including Denmark and the UK, over their opposition to his Greenland ambitions, infuriating European leaders and sparking talk of retaliation.

These moves have rattled financial markets, with U.S. stock futures attempting a recovery after the S&P 500 experienced its largest drop in three months. While senior U.S. officials have urged allies to remain calm until hearing from the president directly, harsh words aimed at France and the UK have already strained key relationships, setting the stage for a tense gathering.

The proposed "Board of Peace" initiative has also faced hurdles. Despite plans for a signing ceremony on Thursday, the effort has been troubled by questions over its composition and purpose. An invitation extended to Russian President Vladimir Putin, even as his country is at war with Ukraine, has drawn criticism, and several allied leaders have already declined to participate.

Domestic Focus: Trump to Unveil Affordability Policies

Beyond the international disputes, Trump aims to use the Davos stage to promote his economic agenda to a domestic audience ahead of the November congressional elections. The setting provides a sharp contrast between the global elites and the populist platform that propelled him to office.

Administration officials have indicated that Trump will roll out policies designed to address voter concerns about affordability. The expected proposals include:

• Banning institutional investors from purchasing single-family homes.

• Implementing a one-year cap on credit card interest rates at 10%.

• Directing Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds to lower lending rates.

On Tuesday, Trump signed an executive order outlining a process to limit institutional homebuying, though it stops short of imposing immediate restrictions on companies with large housing portfolios.

A Symptom of a Larger Problem: The Aging Air Force One Fleet

The flight delay highlighted a persistent frustration for Trump: the aging fleet of presidential aircraft. The government planes used to transport U.S. presidents and senior officials have encountered several complications in recent years.

The U.S. Air Force and Boeing Co. have faced technical challenges with the new generation of Air Force One planes, pushing their estimated delivery back to mid-2028. In an unusual move last year, the Defense Department accepted a luxury Boeing 747-8 jet from Qatar as a temporary Air Force One for Trump, a decision that raised ethics, security, and cost concerns related to retrofitting the aircraft for presidential use.

Japan's electricity demand is set to climb 5.3% over the next decade, a surge fueled primarily by the immense power needs of new data centers and semiconductor factories.

According to the latest forecast from the Organisation for Cross-regional Coordination of Transmission Operators, Japan (OCCTO), the nation's grid monitor, power consumption will reach 846.13 billion kilowatt-hours (kWh) in fiscal year 2035. This marks a notable increase from the estimated 803.37 billion kWh for fiscal year 2025.

This growth projection is slightly more conservative than the 5.8% increase forecasted a year ago. OCCTO noted that the adjustment reflects construction delays, design changes, and other logistical issues at data centers, which have pushed back their operational start dates and the timeline for reaching full power consumption.

Industrial Growth Outpaces Household Decline

The rise in electricity use is not uniform across the economy. A clear divergence is emerging between the industrial and residential sectors.

• Industrial Demand: Expected to jump by 18.3% over the ten-year period, driven by high-tech manufacturing and digital infrastructure.

• Household Consumption: Forecast to fall by 5.7%, a trend attributed to Japan's shrinking population and gains in energy efficiency.

These figures represent minor revisions from last year's outlook, which had predicted a 19.2% increase in industrial demand and a 5.4% decline in household use.

The Tech Sector's Massive Power Appetite

The core driver of Japan's rising energy needs is the tech industry's expansion. Electricity demand specifically from new data centers and semiconductor plants is expected to grow by 56.8 billion kWh by fiscal 2035.

This updated figure highlights the accelerating power requirements of the digital economy, surpassing last year's forecast, which projected a 51.4 billion kWh increase by fiscal 2034.

OCCTO compiles its 10-year electricity demand outlook annually, based on comprehensive surveys conducted with Japan's 10 major electric utility companies.

U.S. and Russian officials, including special envoy Steve Witkoff and Jared Kushner, at a meeting in Moscow on December 2, 2025.

U.S. special envoy Steve Witkoff has confirmed that peace negotiations over the war in Ukraine have advanced to the critical stage of discussing "land deals," with a meeting scheduled this week with Russian President Vladimir Putin.

Speaking to CNBC at the World Economic Forum in Davos, Switzerland, Witkoff stated that significant progress has been made over the past six to eight weeks. He expressed optimism that a resolution to the nearly four-year conflict could be approaching.

High-Stakes Meeting Requested by the Kremlin

According to Witkoff, he and President Donald Trump's son-in-law, Jared Kushner, will meet with Ukrainian officials on Wednesday evening before holding talks with top Russian officials.

"And then we'll be seeing the Russians, Jared and I, sometime on Thursday evening," Witkoff said, confirming that President Putin would be present at the meeting. He noted that the Kremlin had initiated the request for the high-level discussions.

These talks are centered on a U.S.-led 20-point peace plan, which Witkoff says is bringing both sides closer to an agreement. "We're bringing everyone closer... hopefully we'll have something good to announce soon," he added.

The '800 lb Elephant': Negotiating Territory

The central focus of the negotiations is now on territorial arrangements, which Witkoff described as the most challenging part of any potential deal.

"[It's based on] our 20-point peace plan, and we're massaging it and harmonizing it, and I think we're down to land deals now — that's been the 800 lb elephant in the room," he explained. "I think we have some very, very good ideas around that, and hopefully we'll be able to make some progress there."

When asked directly if he believed Putin would agree to a deal, Witkoff's response was a confident "I do."

Overcoming Obstacles to a Final Agreement

The current diplomatic push follows multiple failed attempts to secure a lasting ceasefire. The ongoing conflict has resulted in hundreds of thousands of military and civilian casualties. Analysts suggest that pressure from the United States and President Trump's impatience with the war have been key factors in bringing both Russia and Ukraine back to the negotiating table.

Historically, major obstacles to a peace agreement have included:

• Russia's demand that Ukraine cede its eastern Donbas region.

• Ukraine's insistence on receiving security guarantees from Western partners to prevent future invasions.

Source: Euronews

French far-right leader Marine Le Pen softened her tone while answering judges' questions during her appeal trial in Paris on Tuesday and Wednesday, but denied wrongdoing, after being barred from public office over a conviction for misusing EU funds.

Le Pen, the longtime leader of the far-right National Rally (RN), is facing a crucial appeal trial that will determine whether she can run in the 2027 presidential election, after she was given last year a five-year ban from running for public office, effective immediately.

Le Pen and others were found guilty of misappropriating more than 4 million euros ($4.7 million) of EU funds. Judges said that between 2004 and 2016, they had used funds earmarked for work at the European Parliament to pay staff who were actually working for the party.

Answering judge Michele Agi's questions, Le Pen stuck to addressing legal arguments, in contrast with her previous approach of challenging the legitimacy of the charges. But in substance, her defence appeared to remain the same, as she denied the existence of a system within the RN to misuse EU funds.

"I formally contest the idea that there was a kind of system," Le Pen told the court on Tuesday.

She also partly put the blame on her father, the late Jean-Marie Le Pen, saying that until 2014 he was the one really in charge. Known for his xenophobic, antisemitic and racist stance, the founder of the RN, formerly the Front National, died last year at 96.

"The way things were functioning wasn't ideal -- I'm aware of that," she said. "But all those people were working."

The trial is expected to last until February 12.

A ruling is expected before the summer, meaning Le Pen's hopes of running in 2027 remain alive if her five-year ban is revoked or drastically curtailed.

If she cannot run, her protege, 30-year-old RN party president Jordan Bardella, is expected to step in.

Source: Reuters

On Wednesday, GBP/USD remained stable at 1.3436. The British pound was supported by a sell-off in the US dollar following increased trade tensions between the US and Europe over Greenland.

US President Donald Trump has threatened to impose tariffs on imports from the UK, Denmark, Norway, Finland, France, Germany, and the Netherlands if these countries do not agree to transfer control of Greenland to the US. In response, investors began pulling back from American assets, including the dollar, and reallocating funds into European currencies and gold.

While recent UK labour market data showed weakness, with unemployment rates near five-year highs and the largest drop in payrolls since November 2020, there are some positive developments. These include a reduction in layoffs, stabilisation in job vacancies and unemployment, and a slowdown in wage growth that aligns with the Bank of England's inflation target.

This backdrop sets the stage for further interest rate cuts by the Bank of England. The central bank's baseline scenario suggests a final reduction to 3.50% in April, with market expectations for one more cut by mid-year and a 60% probability of a second cut by December.

Technical Analysis

On the H4 GBP/USD chart, the market is forming a broad consolidation range around the 1.3455 level. Today, we expect the range to extend to 1.3395. A correction to 1.3450 is likely, followed by a continuation of the downward trend toward 1.3326, with a potential drop to 1.3220. This scenario is supported by the MACD indicator, with its signal line above zero and pointing downward.

On the H1 chart, the market is consolidating around 1.3450, with a potential decline towards 1.3400. If this level breaks, the downward trend could extend to 1.3326. The Stochastic oscillator confirms this bearish outlook, as its signal line remains below the 50 level and continues pointing downward.

Conclusion

GBP/USD growth is closely linked to the weakening US dollar, primarily driven by geopolitical tensions and shifting market sentiment. The UK's labour market data and the BoE's expected rate cuts further support the pound's position. Technically, GBPUSD may continue its downward correction in the near term, with key support levels at 1.3395 and 1.3326.

Source: ACTIONFOREX