The FTSE 100 is treading water today, as President Donald Trump, in his World Economic Forum address, dangled the carrot of tax cuts for U.S.-based manufacturers while brandishing the stick of tariffs for those who dare stray abroad. He also nudged global interest rates, suggesting they should take a downward turn, a subtle nudge to the U.S. Federal Reserve.

Across the Pacific, the Bank of Japan has decided to shake things up by raising interest rates by 25 basis points to 0.5%, a level not seen since 2008. This move comes as Japan grapples with inflation, with the core CPI climbing 3% year-on-year in December.

Back in the UK, the GfK Consumer Confidence Index took a nosedive, dropping five points to minus 22 in January, as economic jitters take hold. In corporate news, Rolls-Royce has landed a whopper of a deal with the UK Ministry of Defence, securing a £9 billion contract to keep Britain's nuclear submarines shipshape. Burberry, on the other hand, reported a 7% dip in retail revenue for the third quarter but remains upbeat about its strategy. AstraZeneca is betting big on Canada with a USD570 million investment, aiming to create over 700 jobs and boost its global revenue. Meanwhile, the UK government is bracing for the possibility of renationalizing Thames Water, given the company's financial woes.

In a bid to bolster trade ties with the EU without reopening the Brexit can of worms, the UK business secretary is considering joining the Pan-Euro-Mediterranean Convention for tariff-free trade.

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