From Greenland to copper, power politics hit markets - Jan 20, 2026

As of January 20, today’s news features geopolitical developments and market reactions, particularly surrounding energy and technology sectors. US President Donald Trump has reiterated his aggressive stance regarding Greenland, emphasizing that there is “no going back” on his ambition to control the territory. This raises concerns over NATO unity and could potentially reignite tensions in US-European trade relations, as Trump utilizes AI mock-ups to bolster his claims. Treasury Secretary Scott Bessent attempted to mitigate fears regarding the reactions of European allies, insisting that the concerns around Greenland are exaggerated. Meanwhile, Ukraine's Chornobyl Nuclear Power Plant has been connected to the country's power grid following an overnight Russian air attack on Ukrainian energy facilities, and radiation levels are normal, Kyiv's energy ministry said on Monday. Turning to the markets, copper prices are experiencing a downturn as industrial consumers resist paying high prices amidst record inventory levels. Copper on the London Metal Exchange fell by 0.8% to 12,868 dollars per metric ton, driven by a recent wave of speculative buying. Analysts note that buyers are beginning to hesitate at elevated costs when supplies are peaking. Furthermore, Leonardo's chairman today rowed back on comments he made about a possible merger with Italian shipbuilder Fincantieri, dismissing them as a light-hearted quip. Stefano Pontecorvo floated the idea of a future combination between the two state-controlled groups at a business conference in Milan on Monday. Meanwhile, Japan’s Inpex plans to resubmit its environmental proposal for a significant carbon capture and storage project off Australia's coast after temporarily withdrawing it. The company awaits clarity on new environmental laws, reflecting a broader trend of tightening regulations in Australia that aim to streamline approvals while enhancing compliance measures. From the international front, the European Union is set to phase out high-risk technology components, particularly targeting suppliers like Huawei and other Chinese firms. This initiative, part of revisions to the EU's Cybersecurity Act, stems from escalating cybersecurity threats and a desire to reduce technology dependence on potentially problematic sources. Meanwhile, the UK government has approved China’s plan to establish its largest embassy in Europe, despite concerns regarding espionage, indicating a complex balancing act as it seeks to improve bilateral relations. The energy landscape continues to shift as Trump's support for the oil industry clashes with market realities. US oil and gas production is projected to rise significantly, with potential implications for global supply dynamics.