US, Denmark to form ‘working group’ on Greenland

Good morning. Here's what happened overnight and what you need to know today.

---

1.

Working group: The US, Denmark and Greenland will form a high‑level working group to discuss Greenland’s security after what Denmark’s foreign minister described as a “frank, but also constructive” White House meeting prompted by Donald Trump’s threats to take control of the island. US Vice President JD Vance and Secretary of State Marco Rubio met Danish and Greenlandic officials hours after Trump said “anything less than” US control of Greenland was “unacceptable,” arguing the US “needs Greenland” for national security and to strengthen NATO. Denmark announced it would increase its military presence in and around Greenland with aircraft, ships and soldiers, in coordination with NATO allies including Sweden. A day earlier, Greenland’s Prime Minister Jens‑Frederik Nielsen said the territory would choose Denmark over the United States. The European Parliament condemned Trump’s statements as a “blatant challenge” to international law and the sovereignty of a NATO ally, while France said it would act in “full solidarity” with Denmark. Rubio said Trump plans to buy Greenland, though Trump has not ruled out military force and Danish and Greenlandic leaders say the territory is not for sale. During the talks, the White House posted a cartoon presenting Greenland with two paths: toward the US or toward Russia and China, without an option shown for Denmark. (NYT) (Danish Ministry of Defence)(Truth Social)(BBC)(NBC)(CNN)(FT)(Capital Brief)

2.

Hockey’s high-roller: Joe Hockey has built one of the most successful careers of any former Australian politician. He parlayed his time as federal Treasurer into a stint as the US ambassador, where he became known as Australia's ‘Trump Whisperer’. Few would have guessed his next career move would be to help the little-known 25-year-old son of a controversial billionaire Chinese property developer and high roller, who has variously fought with the Australian Tax Office (ATO), Star Entertainment Group and even Port Stephens Council, to invest his family's wealth. And yet, Capital Brief can reveal that’s exactly what Hockey has done, quietly accepting the chair role at the Lee Family Office, which is managed by Felix Lee, the son of billionaire Phillip Dong Fang Lee and his wife Xiaobei Shi. Hockey described Felix to Capital Brief as “very hands on” and said he was working with him on “strategy, governance and the disciplined development of the investment platform”, with the office not yet ready to go public. (Capital Brief)

3.

Rotation accelerates: A weeklong investor shift out of high-priced tech stocks into more economically sensitive sectors gained momentum on Wall Street, sending the Nasdaq 100 to its worst drop in a month and marking the first back-to-back losses for the S&P 500 in 2026. The Nasdaq 100 was trading 1.5% lower in the afternoon, the S&P 500 was down 0.9% and the Dow down 0.3%. The Russell 2000, however, was up 0.2%, outperforming the S&P 500 for a ninth straight session, its longest such streak since 1990, according to Bloomberg. Despite losses in all Magnificent Seven stocks, nearly 300 S&P 500 companies advanced. Bank shares retreated after mixed quarterly results from Wells Fargo, Citigroup and Bank of America, all of which were trading lower on the day. Tech stocks were weighed down by valuation concerns and regulatory developments, including new US chip restrictions on Nvidia and a reported Chinese ban on US and Israeli cybersecurity software. Bitcoin rose 2.8%. Gold and silver futures hit record highs, with silver posting its best-ever start to a year. (WSJ)(Reuters)(Bloomberg)

4.

Evacuations ordered: The United States is evacuating nonessential personnel from Al Udeid Air Base in Qatar, with US officials calling the move a precaution amid rising tensions with Iran. The Qatari government said it was “in response to current regional tensions”. The move followed US President Donald Trump’s warning earlier this week of “very strong action” if Iran executes protesters, writing on Truth Social that “HELP IS ON ITS WAY”. Iran has threatened retaliation for any US strike, including targeting American bases in neighbouring countries. Tehran previously fired missiles at Al Udeid in June last year after US strikes on its nuclear facilities during Israel’s 12-day war with the Islamic republic. A US official told Reuters personnel were being withdrawn from Middle East bases, and AP and Reuters reported some had been told to leave Al Udeid. The base hosts around 10,000 US troops. (Capital Brief)(Reuters)(FT)(AP)(Qatar MO)

5.

Bank earnings: US banking giants posted mixed fourth-quarter results as rising loan demand and record dealmaking lifted some profits, while cost pressures and political risks cast a shadow over 2026. Citigroup beat expectations with adjusted earnings of USD1.81 (AUD2.7) per share, driven by a record year for M&A, an 84% jump in advisory fees and a 35% rise in investment banking fees to USD1.29 billion. Revenue in its banking unit surged 78% to USD2.2 billion, and markets revenue grew 11% for the year. Citi shares were over 4% lower in afternoon trading, after executives revised efficiency targets and said the timing of regulatory relief depends on the regulators. CEO Jane Fraser also confirmed 1,000 job cuts this week and flagged further reductions in 2026. Meanwhile, Wells Fargo missed estimates with Q4 earnings of USD1.62 per share after booking USD612 million in severance expenses. Both banks warned Trump’s proposed 10% cap on credit card rates would reduce credit access and potentially slow the economy. (Capital Brief)(Bloomberg)(Reuters)

6.

Saks under: US consumers delivered a strong lift to retail spending in November, with sales rising 0.6% as motor vehicle purchases rebounded and holiday‑season shopping proved resilient. The increase followed a downwardly revised 0.1% fall in October, Commerce Department data showed. Sales excluding autos rose 0.5%, while control‑group sales (used in calculating gross domestic product) increased 0.4%. Ten of 13 retail categories recorded gains, with spending at restaurants and bars rising 0.6% after declining a month earlier. Adobe Inc said consumers spent a record amount online between 1 November and 31 December, using promotions and buy now, pay later options. The strength in spending was supported by higher‑income households, while lower‑income consumers faced pressure from affordability concerns, higher food prices and labour‑market sluggishness. Separately, Saks Global Enterprises filed for Chapter 11 bankruptcy protection in Texas, saying it owed at least USD3.4 billion ($5 billion) following its debt‑funded acquisition of Neiman Marcus. It secured about USD1.75 billion in bankruptcy financing, said its stores would remain open and appointed former Neiman Marcus chief executive Geoffroy van Raemdonck to lead the restructuring. Saks owes USD136 million to Chanel and about USD60 million to Kering, Bloomberg reported citing court documents. (Capital Brief)(Reuters)(Bloomberg)

7.

Dividend defence: Fresh from its emphatic tear-down of SGH and Steel Dynamics’ joint takeover bid last week, BlueScope delivered another show of strength on Wednesday by announcing a $438 million special dividend for its shareholders. But a source close to the bidders, who spoke to Capital Brief on the condition of anonymity, has called the move a “defend-at-all-costs tactic” and a “highly inefficient use of capital”. The unfranked special dividend option for returning capital was taken as an on-market buy-back is currently not available, as the company fields the approach by Stokes family-controlled SGH and Nasdaq-listed Steel Dynamics. Milford analyst Greg Cassidy told Capital Brief the bumper payout is all part of BlueScope’s defence negotiations to try and eke out a higher price from its suitors and that the consortium’s $30-per-share bid would need to rise to the “mid-to-low thirties” to tempt most fellow investors. (Capital Brief)

8.

School hack: The Victorian Department of Education confirmed on Wednesday that hackers accessed the information of current and past students of Victorian government schools. The data breach saw an “external third party” access all students' names, email addresses, school names, year level and encrypted passwords, the department said. It explained that hackers accessed the information through a school’s network and that the third party had not accessed any other personal data, such as date of birth, phone number or home address. A department spokesperson said it has identified the point of the breach and has put safeguards in place to ensure no further data is able to be accessed. “Now we’re working with cyber experts, other government agencies and communicating with our schools to ensure this does not disrupt students when they start the 2026 school year.” The Age reported that schools in Melbourne’s north, west and south-east were impacted, including primary and high schools. (ABC)(The Age)(AFR)(SMH)(Capital Brief)