Trump Rattles Europe Defense Tech Stocks | Bloomberg Tech 1/21/2026

Global markets rallied and the technology sector faced a volatile trading session on January 21, 2026, following President Trump’s pivot toward diplomatic negotiations regarding Greenland and Netflix’s aggressive move to acquire Warner Bros. Discovery. While the broader S&P 500 and Nasdaq 100 posted gains of 1% and 1.4% respectively on eased geopolitical tensions, streaming giant Netflix saw shares slide amid concerns over mounting content costs and regulatory scrutiny.

Key Points

• Geopolitical Shift: President Trump ruled out the use of force in acquiring Greenland, aiming for diplomatic negotiations to secure the territory for the "Golden Dome" missile defense system.
• Media Consolidation: Netflix shares dropped approximately 4% after amending its offer for Warner Bros. Discovery to an all-cash deal and forecasting $20 billion in content spending for 2026.
• Robotics Valuation: Drone delivery startup Zipline closed a $600 million funding round, reaching a valuation of $7.6 billion as it expands operations to Houston and Phoenix.
• AI Debate: Nvidia CEO Jensen Huang touted a manufacturing and trade-craft job boom driven by AI infrastructure, while Salesforce CEO Marc Benioff called for urgent regulations regarding AI safety.

Davos De-escalation and Market Relief

The tone at the World Economic Forum in Davos shifted significantly following President Trump's address, where he publicly committed to pursuing the acquisition of Greenland through negotiation rather than force. The speech alleviated fears among European leaders who had viewed the administration’s previous rhetoric as an existential threat. The market responded positively, with defense and technology stocks rebounding as the "mood music" changed regarding transatlantic relations.

The strategic interest in Greenland is tied to the administration's "Golden Dome" initiative, a missile defense shield involving the United States and Canada. The administration argues that control over the Arctic territory is essential for detecting and intercepting hypersonic or cruise missiles from adversaries such as Russia and China.

Despite the diplomatic pivot, trade tensions remain high. Dutch Prime Minister Dick Schoof expressed cautious optimism regarding the security dialogue but pushed back firmly against the threat of continued tariffs.

"It makes no sense to use trade tariffs to achieve security goals. And we have to push back... We should try to prevent it from happening and find a solution for Arctic security." — Dick Schoof, Prime Minister of the Netherlands

Netflix’s Aggressive Expansion and Spending Concerns

While the broader market rallied, Netflix faced investor skepticism following its fourth-quarter earnings report. The company issued a disappointing profit forecast and revealed plans to increase content spending to $20 billion in 2026, surpassing 2025 levels. This spending surge coincides with the company’s pursuit of its largest acquisition to date: Warner Bros. Discovery.

Netflix has amended its bid for the media conglomerate to an all-cash offer, signaling a move toward total market dominance. However, the deal faces significant hurdles, including a parallel probe by European Union regulators into both the Netflix bid and a competing tender from Paramount. Analysts suggest the acquisition is a defensive "power move" to compete not just with other streamers, but with broader tech giants like YouTube, Instagram, and TikTok.

Bloomberg Intelligence analysts noted that while Netflix’s engagement grew in 2025, the growth was a modest 2% despite a slate of blockbuster content, driving the company to seek deeper libraries through M&A.

Tech Sector Dynamics: Robotics and AI

In the private markets, autonomous delivery company Zipline confirmed a valuation of $7.6 billion after closing a fresh funding round exceeding $600 million. Co-founder Keller Rinaudo Cliffton announced that regulatory progress in the U.S. has enabled rapid expansion, with new services launching in Houston and Phoenix. The company reports that in established markets, usage rates are ten times higher than traditional delivery services.

Meanwhile, the debate over Artificial Intelligence continues to polarize industry leaders. Nvidia CEO Jensen Huang, preparing for a delicate trip to China to navigate export controls, argued that the massive infrastructure build-out required for AI is creating high-paying jobs for skilled tradespeople, such as electricians and pipefitters. Conversely, Salesforce CEO Marc Benioff struck a cautionary tone, citing safety risks for young users.

"I think it needs to be a wake-up call that we are letting all of this AI technology out fully unregulated... There are controls, protections [for social media]. We need to get there with AI now. There does not need to be any more death." — Marc Benioff, CEO of Salesforce

Economic Outlook and Federal Reserve Tensions

White House economic advisor Kevin Hassett defended the administration's tariff policies, describing them as "positively disruptive" and projecting U.S. GDP growth could reach 4.5%. Hassett pushed back against traditional economic models that predict inflation from tariffs, arguing that foreign exporters are absorbing the costs to maintain access to the American market.

However, tensions between the White House and the Federal Reserve appear to be escalating. Hassett criticized Federal Reserve Chair Jerome Powell for attending a Supreme Court hearing and for officials commenting on non-monetary policy issues, suggesting the central bank is straying into political territory.

Moving forward, the administration is expected to unveil significant housing policies in the upcoming State of the Union address, aimed at addressing affordability issues where down payments have doubled in recent years. Investors will be watching closely for the resolution of the Netflix-Warner Bros. Discovery regulatory probe and the outcome of upcoming bilateral meetings regarding Arctic security.