'Stay calm' and 'this is the new normal': What banking CEOs are saying about the global market sell-off

• Major indices declined significantly: Stoxx Europe 600 fell 1.2%, S&P 500 dropped 1.5%, Nasdaq slid 1.6%, and European financial sectors lost 1.3%
• Goldman Sachs International co-CEO Anthony Gutman warned that current volatility represents a 'new normal' that creates complexity for business leaders making decisions
• Trump's tariff threats include a 200% levy on European products and plans for 10% tariffs from Feb. 1, rising to 25% by June 1 if Europe resists his policies

Market Summary: Banking CEOs Urge Calm Amid Global Sell-Off

Market Performance

Global markets tumbled Tuesday following President Trump's renewed tariff threats. The pan-European Stoxx 600 dropped 1.2%, while U.S. markets saw steeper losses with the S&P 500 down 1.5%, Nasdaq sliding 1.6%, and Dow Jones falling nearly 2%. European banking stocks were particularly hard hit, with the Stoxx 600 Banks Index declining 1.4% and financial services down 1.3%.

Key Executive Commentary

Banking CEOs at the World Economic Forum in Davos called for investor composure amid the volatility:

• Bettina Orlopp, Commerzbank CEO: Urged stakeholders to "stay calm" and wait to see actual developments, referencing lessons from last year's tariff events.

• Anthony Gutman, Goldman Sachs International Co-CEO: Described current volatility as "the new normal" for markets, though maintaining optimism on Europe while acknowledging tariffs will "create complexity" for business decision-making.

• Steven Van Rijswijk, ING CEO: Warned that trade policies as geopolitical weapons represent a "wake-up call" for Europe, expressing concern about indirect effects including altered trade patterns, relocated production, and delayed investments.

Tariff Context

Market anxiety stems from Trump's proposed 200% levy on certain European goods and existing plans for 10% tariffs on European countries from February 1, escalating to 25% from June 1. Investors fear a repeat of April's "Liberation Day" tariff turmoil.

Market Implications

The banking sector emphasized that long-term stability and predictable policies are essential for economic health, with uncertainty over tariffs potentially disrupting supply chains and investment decisions across global markets.