The Latest: US treasury secretary says US-Europe relations ‘never been closer’

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DAVOS, Switzerland (AP) — The annual meeting of The World Economic Forum attracts corporate executives, academics, philanthropists and media to the Swiss Alps town of Davos for dialogue, debate and deal-making.

The Geneva-based think tank first hosted the event in 1971 with the goal to improve European management. Beginning Tuesday, 850 CEOs and chairs of the world’s top companies are expected to be among 3,000 participants from 130 countries in the Alpine resort through Friday.

U.S. President Donald Trump’s third visit to Davos as president comes as U.S. allies worry about his ambition to take over Greenland, Latin America grapples with his efforts to reap Venezuela’s oil and business leaders and lawmakers at home express concerns about his hardball tactics toward Federal Reserve Chair Jerome Powell.

Here is the latest:

European markets opened sharply lower on Tuesday and U.S. futures fell further as tensions rose over Greenland.

Benchmarks in Germany, France and Britain fell about 1%. The future for the S&P 500 lost 1.5% and the Dow future was down 1.4%.

With U.S. trading closed Monday for a holiday, financial markets had a relatively muted response to Trump’s threat to put a 10% extra tariff on exports from eight European countries that have opposed his push to exert control over Greenland.

Jonas Golterman of Capital Economics described the situation as a lose-lose for the U.S. and the targets of Trump’s anger.

“It certainly fells like the kind of situation that could get worse before it gets better,” Golterman said.

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Elaine Kurtenbach contributed from Bangkok.

The British government on Tuesday defended its decision to hand sovereignty the Chagos Islands to Mauritius after Trump attacked the plan, which his administration had previously supported.

Trump said relinquishing the remote Indian Ocean archipelago, home to a strategically important U.S. naval and bomber base, was an act of stupidity that shows why he needs to take over Greenland.

Trump’s speech Wednesday at Davos is highly anticipated and likely to include mentions of Greenland. Discussion of the Chagos Islands may now rise up the agenda at the Swiss Alps forum.

Read more here about the Chagos Islands.

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Jill Lawless contributed from London.

President Abdel-Fattah el-Sissi of Egypt is traveling Tuesday to attend the World Economic Forum, his office said in a statement.

The Egyptian leader will meet with U.S. President Donald Trump to discuss “regional and international developments of common interest,” el-Sissi’s office said.

Trump has invited el-Sissi to join a proposed “Peace Board” to oversee the future of Gaza, but the Egyptian leader has yet to comment on the invitation. Egypt is a mediator in the Israel-Hamas ceasefire deal in Gaza, along with the U.S. Qatar and Turkey.

Read more here about the “Peace Board.”

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Samy Magdy contributed from Cairo.

U.S. Treasury Secretary Scott Bessent on Tuesday said America’s relations with Europe remain strong and urged trading partners to “take a deep breath” and let tensions over new Trump administration tariff threats over Greenland “play out.”

“I think our relations have never been closer,” he said, speaking on the sidelines of the World Economic Forum meeting.

On Saturday, Trump announced a 10% import tax starting in February on goods from eight European nations that have rallied around Denmark in the wake of his stepped up calls for the United States to take over the semi-autonomous territory of Greenland.

Trump has insisted the U.S. needs the territory for security reasons against possible threats from China and Russia.

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Jamey Keaten reported from Davos.

U.S. Treasury Secretary Scott Bessent said the worst thing another country can do is escalate against the United States.

“What President Trump is threatening on Greenland is very different than the other trade deals,” he said. “So I would urge all countries to stick with their trade deals.”

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Jamey Keaten reported from Davos.

This year’s edition of the World Economic Forum will be the first not headed by forum founder Klaus Schwab. The board gave its unanimous support in 2025 for an independent investigation of Schwab following a report by The Wall Street Journal.

The report cited a whistleblower letter alleging financial and ethical misconduct by Schwab and his wife, Hilde. The allegations emerged two days after the WEF announced Schwab had retired as chairman “with immediate effect.”

He was succeeded by interim co-chairs Larry Fink, chairman and CEO of New York-based investment management company BlackRock, and Andre Hoffmann, the vice chairman of Swiss pharmaceuticals company Roche Holdings.

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AP World Economic Forum: https://apnews.com/hub/world-economic-forum