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Home » Talk of “TACO” trade amid confusion over President Trump’s Greenland Agreement
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Talk of “TACO” trade amid confusion over President Trump’s Greenland Agreement

Editor-In-ChiefBy Editor-In-ChiefJanuary 23, 2026No Comments4 Mins Read
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Traders work during BitGo’s initial public offering (IPO) on the floor of the New York Stock Exchange (NYSE) on Thursday, January 22, 2026, in New York, USA.

Michael Nagle | Bloomberg | Getty Images

When something is expressed as a trading “framework” or “concept” and described as “slightly complex” without additional details, it stands to reason that content can get lost in translation.

Denmark signaled on Thursday that it was open to talks with the United States over its Golden Dome missile defense program, part of the Greenland “deal” announced the day before by US President Donald Trump, but Greenland’s Prime Minister Jens-Frederik Nielsen said he did not know the contents of the deal.

The widespread reaction from analysts and political watchers was a mix of relief and confusion.

Ed Price, a senior adjunct fellow at New York University, told CNBC on Thursday that striking a deal “requires two people to tango,” and described President Trump’s speech at the World Economic Forum in Davos, Switzerland, as “a monologue, not a dialogue.”

But President Trump withdrew his tariff threats against EU countries and toned down his rhetoric on Greenland, lifting markets globally and reviving talk about TACO (‘Trump Always Chickens Out’) trade.

The US president also signed the establishment of a “peace commission” for Gaza, while Ukrainian President Volodymyr Zelenskiy accused Europe of having “lost its way” and trying to woo President Trump instead of coming together to defend itself.

In Asia, Japan is attracting attention. Prime Minister Sanae Takaichi announced a snap general election on February 8th and plans to dissolve the House of Representatives. The country will release inflation data for December, while the Bank of Japan is scheduled to announce interest rate decisions and release forecasts for inflation and economic growth in 2026.

—CNBC’s Kevin Breuninger, Anniek Bao, Lucy Handley and Hugh Leask contributed to this report.

What you need to know today

Inflation in Japan is rapidly cooling down. The headline inflation rate in December was 2.1%, down from 2.9% in November and the lowest level since March 2022. However, rice inflation has reached 34.4% and could become a pressing issue in the next election on February 8th.

The US inflation rate remains above 2%. According to the Personal Consumption Expenditure Price Index, inflation in November was in line with the Dow Jones Consensus at 2.8% in both headline and core values.

Intel is offering soft guidance for the first quarter. Finance Director David Zinsner said part of the reason is a lack of supply to meet seasonal demand. However, Intel’s fourth quarter profit exceeded expectations. The stock price fell more than 11% in extended trading.

US stocks widen their rise. Major U.S. indexes rose for the second day in a row after President Trump suspended tariffs on Europe. pan-european Stocks 600 increased by 1.03%; Ubisoft Shares fell by up to 35% after the reorganization was announced.

(PRO) A stock price that is likely to skyrocket. CNBC Pro screened stocks that were upgraded to Buy or Overweight by at least three additional analysts since the end of last year. Major trading platforms and Wall Street banks were named to the list.

And finally…

Amid US tensions, India and EU focus on ‘mother of all agreements’. But New Delhi needs a deal with Washington.

Europe is standing up to Trump and is seeking new trade alliances. European Commission President Ursula von der Leyen said Tuesday at the World Economic Forum in Davos that the European Union is “on the brink of a historic trade deal” with India.

This could be a much-needed blow to New Delhi, which has been bearing the brunt of punitive U.S. tariffs. Since President Trump imposed 50% tariffs on Asian economies last August, he has sought alternative markets for exports and has struck trade deals with several countries.

— Priyanka Salve



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