FTSE 100 rebounds as Trump rules out taking Greenland by force
Global markets bounced back into the green on Wednesday after President Donald Trump confirmed the US would not use military action to seize Greenland.
In his address at the World Economic Forum in Davos, Trump said: “All the US is asking for is a place called 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.”
“But I won’t do that,” he said in his clearest indication yet of ruling out military intervention in Greenland.
He later doubled down on avoiding military action: “People thought I would use force. I don’t have to use force. I don’t want to use force. I won’t use force.”
The FTSE 100 edged up to 0.3 per cent gain at 10,153.24p on Trump’s remarks. 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.
Trump makes jab at ‘unfair’ Nato
Tensions have flared among a war of words between top names in the Trump administration and European leaders over the last week after the US announced sweeping 10 per cent tariff across Nato members for their stance on Greenland.
The President said the United States is “treated very unfairly by Nato” and “nobody can dispute it.”
“We give so much and get so little in return.”
He fires a major shot on economic and military support from the US, telling European nations: “Without us most of the countries don’t even work”.
The President warned Europe have a “choice” whether they “say yes and we would be very appreciative or you could say no and we will remember.”
He opened his speech at the World Economic Forum talking of his delight at returning to Davos for the third time and looked forward to addressing “so many friends, and a few enemies”.
Trump said he came with “phenomenal news from America” as he touted success in the stock market and added he had “defeated inflation”.
But the President quickly turned his attention to Europe, where he said countries were becoming no longer “recognisable”.
“We can argue about it but there’s no argument – I mean that in a bad way. It’s not heading in the right direction,” he said.
Trump takes Chagos swipe at Starmer
He made reference to efforts to secure a peace deal in Ukraine, stating a takeover of Greenland is a “very small ask” compared with how he has helped Nato.
Trump said he has “tremendous respect” for Denmark and Greenland but warned “no nation or group of nations is able to secure Greenland other than the United States”.
He added Greenland “sits undefended” in a strategic position that is in “North American” territory.
“It’s the United States alone that can protect this giant mass of land, this giant piece of ice, develop it and improve it… and make it so it is good for Europe and safe for Europe and good for us,” he said and renewed his demand for “immediate negotiations” over Greenland’s acquisition.
During Prime Minister’s Questions today Sir Keir Starmer said President Trump’s recent tirade against the Chagos Islands deal was to “pressure” him to change tune on Greenland, adding he would “engage constructively” with the US administration and other allies.
It follows a brutal Truth Social post scolding the Prime Minister over the Chagos deal, which includes a shared US military base at Diego Garcia that will be leased for 99 years at a multi-billion-pound cost, Trump called Starmer’s deal an “act of great stupidity”.
“You cant defend it on a lease, it’s not legally defensible in that way. Who the hell wants to defend a licence agreement?” Trump said in a major swipe ruling out leasing agreements.
This story is being live updated.