FTSE 100 Live: Defence and miners miss Trump ‘TACO’ tariff rally

Good morning and welcome back to the City PM liveblog.

Yesterday Donald descended on Davos. In a wide-ranging address to the economic elite, President Trump scolded Europe, touted his own successes and doubled down on the “need” to acquire Greenland.

Beyond his scathing remarks about Nato peers, the central takeaway from Trump’s over-hour long speech was the US would not use “force” to secure Greenland.

“We never ask for anything and we never got anything we probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly impossible,” he told the World Economic Forum.

“But I won’t do that,” he added.

Markets took the news in a buoyant stride. The FTSE 100 edged up to a 0.3 per cent gain shortly after the remarks, reaching 10,153.24p. This followed it trading in the red near 10,100p ahead of Trump taking the stage.

US markets also jumped into the green after the news. The S&P 500 notched a 0.8 per cent gain, the tech-heavy Nasdaq 0.7 per cent and Dow Jones 0.8 per cent.

But the best may yet to become.

In a Truth Social post on yesterday evening Trump said the the “framework of a future deal with the respect to Greenland, in fact, the entire arctic region” had been agreed.

He also confirmed based on this understanding the tariffs on Nato nations would not be imposed.

“Further information will be made available as discussions progress,” the President wrote.

We’ll be bringing you the latest on this and more.

Here’s a few of our top stories from yesterday:

• Only pubs set to benefit from business rates U-turn as hoteliers barred
• FTSE 100 rebounds as Trump rules out taking Greenland by force
• Nato and Europe must be ‘stronger,’ JP Morgan’s Dimon tells Davos
• Wealthy London boroughs see house prices plummet amid Budget speculation
• Michael O’Leary could land £1.7bn payout if Elon Musk buys Ryanair