Ata mārie and welcome to your Tuesday summary of global business and political news from overnight.
First up, safe-haven gold and silver prices hit record highs after US President Donald Trump threatened additional tariffs on eight European countries in an aggressive attempt to claim Greenland.
Over the weekend, Trump threatened to impose a 25% tariff on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland until the US was allowed to buy Greenland.
Investors clung to the safe-haven assets amid the choppy geopolitical and economic outlook. US gold futures rose 1.7% to US$4674 per ounce, while spot gold was 1.6% higher at US$4668 per ounce, CNBC reported.
Silver also followed gold’s upward swing, with silver futures up to a record US$93.03 per ounce.
In developing news, Trump has written a letter to Norway saying he no longer feels obligated to think purely of peace.
"Considering your Country decided not to give me the Nobel Peace Prize for having stopped 8 Wars PLUS, I no longer feel an obligation to think purely of Peace," Trump said.
US President Donald Trump.
Meanwhile, French President Emmanuel Macron does not plan to accept Trump’s invitation to join a proposed Board of Peace, according to sources, Bloomberg reported.
Trump has invited a number of world leaders to join the board, including Argentina’s Javier Milei and Canada’s Mark Carney.
Russian President Vladimir Putin has also received an invitation to join the board. Kremlin spokesperson Dmitry Peskov said Moscow would study the details of the proposal, CNBC reported.
“We hope to contact the US side to clarify all the details,” he said.
Staying with politics, Japanese Prime Minister Sanae Takaichi called a snap general election, with a promise to suspend an 8% food levy for two years, CNN reported.
Takaichi said that a two-year exemption of the 8% food levy would help households with rising living costs. The government will not issue debt to fund the suspension, she said, adding that other measures could include a review of existing subsidies.
The early election on February 8 was an "extremely weighty decision" that would "determine Japan's course together with the people," Takaichi told a news conference.
Her party lags behind in polls and it was described as a risky move to progress plans to boost public spending when households were under pressure, the BBC reported.
Trade tensions and a reversal in the artificial intelligence boom were key risks to global economic growth, the International Monetary Fund (IMF) warned, the BBC reported.
Its latest outlook described the global economy as "steady", with growth expected to remain "resilient" this year. The IMF also said the independence of central banks was "paramount" for global economic stability and growth.
It projected global growth to reach 3.3% this year, an increase from its previous forecast of 3.1%, before slowing slightly to 3.2% in 2027.
Chief economist Pierre Olivier Gourinchas said the global economy had been shaking off the trade tariff disruptions from last year. “It's coming out ahead of what we were expecting," he said.
Meanwhile, China’s economy expanded 5% last year, as a record trade surplus supported growth. The world's second-largest economy reached its growth goals despite growth slowing to 4.5% in the December quarter.
Economists said the data pointed to a "two-speed economy", with manufacturing and exports propping up expansion, while consumers were still cautious and the real estate market stayed sluggish.
Elsewhere, Spanish emergency crews continue to search the wreckage of two trains after a high-speed crash killed 39 people and left 12 in intensive care. The Sunday incident unfolded when one train derailed and was hit by another high-speed train, Reuters and AFP reported.
Prime Minister Pedro Sánchez said the disaster was “a night of deep pain for our country” and declared a three-day mourning period. There were about 400 passengers on board the two trains, according to official statements.
Al Jazeera reported on a grim outlook for Yemen, one of the world’s most impoverished nations, as it entered a new phase of food shortages this year.
The International Rescue Committee (IRC) forecasts pockets of famine affecting more than 40,000 people across four districts within the next two months, the worst outlook for the country since 2022.
By the end of 2025, Yemen’s required humanitarian response was less than 25%, while life-saving nutrition programmes received under 10% of funding required.
“This rapid deterioration – driven by catastrophic humanitarian funding cuts, climate shocks, economic collapse, and compounded by recent insecurity – calls for urgent action to reverse the unfolding catastrophe,” the IRC said.
Finally, Italian fashion designer Valentino Garavani has died aged 93, bringing to an end another legacy of European fashion.
Usually known by his first name, Valentino retired in 2008 after creating a vast business empire and introducing a new colour to the fashion world, known as Valentino Red, CNBC reported.
Valentino was ranked alongside Giorgio Armani and Karl Lagerfeld as the last of the great designers from an era before fashion became a global mass-produced industry. Lagerfeld passed away in 2019, while Armani died in September last year.
