“I’m not better than the next trader, just quicker at admitting my mistakes and moving on to the next opportunity.” — George Soros

1. US Core CPI Rises 0.2%, Bucking Estimates for Bigger Rebound — The core consumer price index, excluding the often volatile food and energy categories, increased 0.2% from November, according to Bureau of Labor Statistics data out Tuesday. On an annual basis, it advanced 2.6%, matching a four-year low. Economists said that data was artificially depressed by the record-long government shutdown because the BLS couldn’t collect prices in October and assumed no increases in key housing metrics. November data were also collected later than usual and could have been affected by holiday discounts. Several categories showed price declines, including appliances and used cars and trucks. Vehicle repair costs fell by the most on record. Core goods prices, which exclude food and energy, stagnated last month — also defying expectations for a rebound.
2. Germany Leads Military Mission in Greenland in Response to Trump — Germany will take the lead of European nations sending military personnel to Greenland after Denmark said its meeting with top US officials intent on controlling the world’s biggest island revealed that a “fundamental disagreement” remains. France will participate in the joint drills in Greenland this week, according to the defense ministry’s press office, which provided no details. In addition, Sweden is sending “several officers,” Norway two persons and the UK one officer. The reconnaissance group is visiting the island ahead of the planned “Arctic Endurance” training exercise, UK Defense Minister John Healey told reporters in Sweden. Denmark on Wednesday said the drill with North Atlantic Treaty Organization allies would become a permanent fixture.
3. Trump Threatens Insurrection Act as Minnesota Protests Grow — The 1807 law allows the president to use regular military troops on US soil for domestic law enforcement. It was last invoked during the 1992 riots in Los Angeles. Trump’s ultimatum could further fray tensions in Minneapolis, where on Wednesday a federal officer shot a man in the leg. The incident occurred one week after the fatal shooting of a local woman who was a US citizen by an ICE agent, which touched off the demonstrations.
4. Trump to Hit European Nations With 10% Tariffs as He Presses for Sale of Greenland — The president, in a social-media post on Saturday, said the 10% tariffs would go into effect on Feb. 1 and would apply to all goods sent to the U.S. from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland. The tariffs will increase to 25% on June 1 and remain in place until a deal is reached for what he called the “complete and total purchase” of Greenland, Trump said. The president has said it is necessary for the U.S. to take control of Greenland to counter China and Russia. In his social-media post, he said the U.S. is “immediately open to negotiation” with Denmark and the other European countries, casting the tariff threat as leverage to secure the Arctic territory. Greenland Prime Minister Jens-Frederik Nielsen said recently that his constituents don’t want the island to be owned or controlled by the U.S.

The week ahead — Economic data from Econoday.com: