WSJ What’s News – PM Edition

Episode: Trump’s Threats Over Greenland Send Stock Markets Diving
Date: January 20, 2026
Host: Alex Osola (with contributors Hannah Aaron Lange, Bradley Olson, Ryan Knudson, Teo Francis)

Episode Overview

This episode covers a rollercoaster day in global markets and politics, as President Trump’s threats and persistent pursuit to acquire Greenland unsettle European leaders and send shockwaves through financial markets. The episode also spotlights cutting-edge developments in AI coding with Anthropic’s new Claude Code tool and scrutinizes whether massive CEO pay packages translate into superior company performance. Highlights from Netflix’s latest quarter and an evolving media acquisition round out the business headlines.

Key Discussion Points & Insights

1. Trump’s Greenland Gambit Shakes Markets and Allies

[00:22–04:00]

• President Trump threatens tariffs on European allies, tying them to his efforts to acquire Greenland.

  • European Commission President Ursula von der Leyen firmly rejects any negotiation over Greenland’s sovereignty and warns of a “dangerous downward spiral” in US-European relations.
  • Quote [00:48] – Ursula von der Leyen:

    “The sovereignty and integrity of that territory is non negotiable... [this is a] dangerous downward spiral in the transatlantic partnership.”

• Greenland’s Prime Minister says the island must brace for US military pressure.

• German military officials voice concern over NATO’s stability, warning Russia could exploit these rifts.

• Retaliatory tariffs could hit $100 billion in US exports (e.g., Boeing planes, bourbon).

• President Trump remains unyielding publicly, suggesting a deal on Greenland is possible:

  • Quote [01:58] – President Trump:

    “I think things are going to work out pretty well.”

  • Memorable moment
    [02:29] – Press Q&A highlight
    Ryan Knudson: “How far are you willing to go to acquire Greenland?”
    Trump: “You’ll find out.”

• Markets react sharply:

  • Nasdaq tumbles 2.4%, S&P down 2.1%, and the Dow plunges 1.8%.
  • S&P now negative for the year ([02:47]).
  • Safe-haven assets (gold, silver) hit new records.

• Analyst context:

  • Quote [03:05] – Hannah Aaron Lange (WSJ):

    “It almost feels like tariffs is kind of a trigger word on Wall Street... This has just sparked some renewed trade war fears on Wall Street and unsettled folks about what could lie ahead in 2026.”

2. Trump’s Board of Peace – Global Reactions

[03:54–04:50]

• President Trump invites foreign leaders to join a new “Board of Peace” aimed at mediating global conflict, positioning it as an alternative to the UN.
  • Permanent membership requires a $1 billion fee.
  • Mixed international response: Belarus, Hungary, and Morocco accept; UK, Russia considering; France declines ([04:30]).

3. Claude Code: Silicon Valley’s Latest AI Buzz

[05:38–08:10]

• New AI coding tool from Anthropic, “Claude Code,” excites developers and non-programmers alike.
  • With recent update (Opus 4.5), coders report startling productivity gains.
  • Quote [05:58] – Bradley Olson (WSJ Tech Editor):

    “I can’t believe that I just told it what to do, and then it produced the kind of workload that I might have done myself in a fairly limited period of time.”

  • The “awakening of capability” compared to the debut of ChatGPT.
  • Some experienced professionals express anxiety:
    • Quote [07:00] – Bradley Olson:

      “This person went to Brown … and has an expertise that he’s built up over his entire life; to see a software program kind of fully automate that … was just deeply shocking to him.”

  • Debate on hiring: will AI replace coders or make them more productive?
  • Anthropic heads toward IPO, targeting enterprise growth ([07:52]).

4. Media Mergers: Netflix’s Warner Brothers Discovery Bid

[08:20–09:25]

• Netflix makes an all-cash, $72 billion offer for Warner Studios and HBO Max, possibly besting a rival Paramount bid.

  • Shareholder vote expected by April.

• Netflix’s strong Q4 results:

  • Revenue/profit up; subscriptions surpass 325 million.
  • “Stranger Things” finale bolsters viewership.

5. CEO Moonshot Pay Packages: Do They Deliver?

[09:25–12:26]

• Analysis of recent $100M+ CEO compensation deals post-Elon Musk’s precedent-setting Tesla package.
  • Structured with high targets and long terms (5–10 years).
  • Quote [09:48] – Ryan Knudson (WSJ):

    “What really distinguishes these is that they’re valued really highly to begin with, but they have the potential to really balloon. And that’s because they’re tied to performance targets.”

  • Not just mega-caps—startups and disruptors like KKR, Rivian, Roblox, Robinhood joined the trend.
  • Equilar analysis (2020–2021): Of ~20 companies with these packages, only a handful delivered on ambitious goals.
  • Only about a quarter outperformed the S&P 500.
  • Quote [12:01] – Ryan Knudson:

    “If these moonshot pay packages are supposed to spur CEOs to drive their companies to greater heights, it’s not clear that worked in most of these cases.”

Notable Quotes & Memorable Moments

• Ursula von der Leyen at Davos [00:48]:

  “The sovereignty and integrity of that territory is non negotiable.”

• President Trump resisting pressure [01:58]:

  “I think things are going to work out pretty well.”

• Trump on Greenland’s fate, coy at press conference [02:32]:

  “You’ll find out.”

• Hannah Aaron Lange on tariffs and Wall Street panic [03:05]:

  “Tariffs is kind of a trigger word on Wall Street … just sparked some renewed trade war fears … unsettled folks about what could lie ahead in 2026.”

• Bradley Olson on AI shock factor [07:00]:

  “This person … has an expertise that he’s built up over his entire life; to see a software program … fully automate that … was just deeply shocking.”

• Ryan Knudson on CEO pay [09:48 and 12:01]:

  “What really distinguishes these is … they’re tied to performance targets…”
  “…it’s not clear that worked in most of these cases.”

Timestamps for Important Segments

• Trump/Greenland, markets, Europe’s reaction: [00:22]–[04:00]
• Board of Peace, international response: [03:54]–[04:50]
• Anthropic Claude Code and AI industry impact: [05:38]–[08:10]
• Media mega-merger (Netflix & Warner): [08:20]–[09:25]
• Moonshot CEO pay explained and evaluated: [09:25]–[12:26]

Takeaway

This episode traces how political brinkmanship and global economics are on a collision course, with President Trump’s bid for Greenland exemplifying both foreign policy turbulence and market fragility. Meanwhile, tech and corporate America continue their own revolutions—from AI reshaping code to boardrooms betting big on CEO talent, for better or worse.

The reporting is brisk, direct, and at times laced with skepticism—mirroring the urgent, analytical tone that defines WSJ’s business coverage.