A major Danish pension fund has announced plans to divest from U.S. government debt, citing growing concerns over political risk and economic stability following President Donald Trump’s escalating threats toward Greenland.
AkademikerPension, which manages roughly $25 billion in retirement savings for Danish academics and teachers, said it will sell about $100 million worth of U.S. Treasury bonds by the end of the month. The decision comes as tensions rise between Washington and European allies over Trump’s stated ambition to bring Greenland under U.S. control.
Concerns Over U.S. Stability
The fund’s chief investment officer, Anders Schelde, questioned the long-term sustainability of U.S. public finances, arguing that current political and trade policies have weakened America’s credit outlook.
The announcement coincided with sharp global market declines. Stock indexes across Europe, the UK, and the United States fell as investors reacted to heightened geopolitical uncertainty and the risk of a broader trade conflict.
Trade War Fears Intensify
Trump has threatened to impose new tariffs—starting at 10% and rising to 25%—on several European countries unless progress is made on Greenland. Denmark’s prime minister, Mette Frederiksen, reiterated that Greenland is not for sale and said her government would not abandon the territory.
Speaking at the World Economic Forum in Davos, U.S. Treasury Secretary Scott Bessent urged European leaders not to retaliate, warning that escalation could worsen economic fallout. He dismissed market fears as overblown and called for patience while negotiations continue.
Global Ripple Effects
Market volatility has intensified worldwide. European stocks extended losses, U.S. equities dropped sharply, and investors moved into traditional safe havens. Gold prices hit record highs, while bond yields rose amid global uncertainty.
Political leaders in Europe and the United States offered sharply different responses. California Governor Gavin Newsom urged European nations to stand firm against U.S. pressure, while UK Chancellor Rachel Reeves called for restraint and “cool heads” as trade risks mount.
Investor Confidence Tested
The move by AkademikerPension underscores how geopolitical tensions are beginning to influence institutional investment decisions. Analysts warn that if uncertainty persists, more funds could reassess exposure to U.S. assets, potentially increasing borrowing costs and deepening market instability.
As world leaders continue discussions in Davos, investors remain focused on whether diplomacy can cool tensions—or whether the dispute over Greenland will push global markets further into turbulence.
