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FTSE 100 Live: Trump to rock davos; Stocks dip after inflation

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Donald Trump has threatened to sue the BBC for $1bn
Trump has threatened to scale up strikes on Iran.

Good morning and welcome back to the Morning Wire liveblog.

Inflation spiked above expectations this morning, coming in at 3.4 per cent, according to fresh figures from the Office for National Statistics (ONS). This soared above a poll of economists by Bloomberg expecting 3.3 per cent.

“Inflation ticked up a little in December, driven partly by higher tobacco prices, following recently-introduced excise duty increases,” Grant Fitzner, chief economist at ONS.

He added airfares had also contributed to price hikes “likely because of the timing of return flights over the Christmas and New Year period”.

Global leaders at the World Economic Forum will be feeling the chill today and it’s not because of the crisp air in the Swiss Alps. The world’s elite are bracing for when Donald takes Davos.

President Trump took to the White House briefing room before departing for Davos to mark 12 months of his administration, where he claimed “365 wins in 365 days”.

He added he would soon be in a “beautiful place in Switzerland” where he was “sure [he is] very happily awaited for.”

European nations have been caught in a whirlwind after Trump threatened a 10 per cent tariff – from 1 February – on his Nato peers for their staunch defence of Greenland’s sovereignty.

Ursula Von der Leyen, the president of the European Commission, said the tariffs imposed on European nations due to their staunch defence of Greenland’s sovereignty were a “mistake”.

The tensions have placed global markets on edge with the FTSE 100 sinking as low as one per cent on Tuesday before clawing back some gains to finish 0.7 per cent lower.

Germany’s Dax tumbled over one per cent, France’s Cac 40 0.6 per cent and Amsterdam’s AEX 0.2 per cent.

With Trump set to take centre stage on the world’s grandest economic platform – could we see the uncertainty come to an end?

We’ll bring you the latest news and analysis of the morning.

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