MORNING BID EUROPE-US picks a fight with its biggest creditor
A U.S. president threatens tariffs on a European country to compel a territory sale, raising legal and trade deal concerns. Market reactions show a risk-off sentiment, with S&P futures down nearly 1% and EU stock futures down 1.1%. Gold and silver prices rise, while the dollar weakens against the Swiss franc and yen. Tensions may affect discussions at the World Economic Forum in Davos. Meanwhile, China benefits from a new trade deal with Canada, despite domestic demand issues. Japan's Prime Minister hints at a snap election and potential tax cuts amid strong GDP growth.