talking trade — donald trump is set to address world leaders at davos today with the threat of further tariffs looming for america's economic rivals. fighting for the farmers — tesco, aldi, and lidl warn the uk government's inheritance tax could put the country's food security at risk. also a ray of light in the battle against climate change — as solar energy overtakes coal for the first time, in the eu's power sector. and it's national pie day — we'll tell you why the industry is fighting back against falling sales and is determined pie and mash stays on the menu.

live from london this is business today, i'm sally bundock. so let's get down to business and once again the headlines are dominated by president donald trump. later this afternoon he'll be addressing global leaders at davos — virtually — and many are unsure what to expect. the world economic forum pushes for collaboration, a place where leaders and company bosses come together and try to find middle ground. but president trump is clear his policy is america first and has already threatened to raise tariffs for his country's major trading rivals and partners. here's the latest from our economics editor faisal islam, who is in davos. so much of the talk here has been trying to divine exactly what the us administration of donald trump will do on trade, because the consequences of a tit—for—tat trade war are obviously very severe. but, he

suggested originally that maybe the trade tariffs he planned would be certainly slower in coming, and less than expected. that has led to less apprehension than you may expect, but there's generally uncertainty. on the other hand, there's big optimism about what there's big optimism about what the us economy could do in and particular the big tech giants, and their massive investments in artificial intelligence, and thatis in artificial intelligence, and that is spreading out across the economy. some despondency about europe and how it's behind in terms of those big tech investments. i've been speaking to the european trade commissioner, maros sefcovic, about all of this. and he was trying to be very diplomatic about donald trump. despite such provocations as the us president saying that he had eyes on greenland, which is obviously part of denmark, which in turn is part of the eu. so, some diplomacy required there. as donald trump focuses on canada, mexico, and china first. but also in terms of mr

sefcovic, some discussion about the brexit reset sefcovic, some discussion about the brexit reset that's sefcovic, some discussion about the brexit reset that's planned by the uk government. he says the ball is in britain's court, but expressed some interest in a closer relationship than has widely been assumed. on the uk side too, there's moves in that direction, in terms of a veterinary agreement on food and farm exports, and a pan—european customs arrangement to help advanced manufacturers. some moves there as the world economic forum anticipates live from the white house a video address by president trump himself. we'll have more on that interview with the european commissioner for trade later in the programme but let's continue with trump's davos speech first, i'm joined by martin baccardax, senior editor and chief markets correspondent at the street. what do you anticipate he'll say in this address? he's got a

world audience.— world audience. this is exactly the staue world audience. this is exactly the stage i _ world audience. this is exactly the stage i think _ world audience. this is exactly the stage i think he's - world audience. this is exactly the stage i think he's been - the stage i think he's been looking forward to, since the election. because he's emboldened in a way that's very different to his last appearance at davos in 2020, when he talked about the need for optimism. it was only a few weeks after that the world was in lockdown as a result of the covid pandemic. today he's astride in —— the strongest economy in the world, he has a mandate from the american people, both houses of congress and the biggest ceos lining up behind him. he will project a confidence that will probably be a bit unsettled and reiterate his america first agenda. reiterate his america first aaenda. ,, reiterate his america first aaenda. , . ., agenda. do you expect him to say more _ agenda. do you expect him to say more about _ agenda. do you expect him to say more about tariffs, - agenda. do you expect him to say more about tariffs, what l say more about tariffs, what his plans are? we heard already since he took the oath of office he's looking at february 1 office he's looking at february i as a possible date to put tariffs on mexican, canadian and chinese goods coming in the

united states. will he elaborate on that? ., , ., , elaborate on that? europe has been conspicuous _ elaborate on that? europe has been conspicuous out - elaborate on that? europe has been conspicuous out of- elaborate on that? europe has been conspicuous out of that l been conspicuous out of that conversation, at least in recent times. it's been his focus prior to the election, of course. i expect it to be a bit more detail, but it's a moving situation. and fluid in the sense that february i situation. and fluid in the sense that februaryi could very much come and go in the same way his inauguration came and went without the tariffs that he had promised on day one. to that degree, we see the threat of tariffs as the starting point for negotiations. and of course we know the president likes one v one negotiation rather than those with collective groups. he's been pulling out of the paris climate accord, the who, he's already exited other sort of pan—regional collaborations as well. so i suspect he'll emphasis the use of tariffs but more as a point of negotiation rather than something we should

expect to happen on the day he says they will, and at the level he indicates. {iii says they will, and at the level he indicates. of course, for the world _ level he indicates. of course, for the world economic - level he indicates. of course, i for the world economic forum, for the world economic forum, for them, for the world economic forum, forthem, having him for the world economic forum, for them, having him live speaking to leaders at their event is huge. i was there in 2018 when president trump came in person. and it was such a weird atmosphere there. i was with the press, following him around, gauging the mood, catching comments from european leaders, etc. ijust wonder what reception he'll get today. i think to some degree we have seen world leaders attempting to placate him, at least in the early days. they understand the strength of his hand at the moment with respect to the mandate from the american people and the fact the us economy is just so much people and the fact the us economy isjust so much more powerful than all the others. i think your correspondent also recognised the fact the tech sector plays a significant role in economic growth going forward, and it's interesting to me to see the difference in emphasis. back in 2016, when trump was elected, his inner

circle of business leaders was surrounded by those in the old economy, in sort of manufacturing, in the auto industry, in steel. today it's all about tech. it's all about artificial intelligence. and again, america holds a significant amount of cards in that respect. i think there will be some trepidation from the leaders at davos with respect to the things the president has to say. but i very much doubt they'll be vocal, because they need to negotiate with him, whether they like it or not. it's best to do that in a situation where he seems flattered rather than confronted.— confronted. thank you for your time. interesting _ confronted. thank you for your time. interesting to _ confronted. thank you for your time. interesting to get - confronted. thank you for your time. interesting to get your i time. interesting to get your take on that. staying with donald trump, he's ramped up pressure on russia to negotiate an end to the war in ukraine. he threatened financial penalties on the country if it didn't reach an agreement to end the fighting. let's get to new york and north america business correspondent, ritika gupta, who has more.

donald trump's warning made in a social media post on his third day as president called out russian president vladimir putin by name. he said that putin by name. he said that putin should make a deal soon, or "he'll have no other choice but to impose additional taxes, tariffs, and sanctions on russian imports the us, along with other participating countries." it's not clear what goods would be subject to the penalties that trump threatened, or what other nations may be included. the trump administration could potentially target russia's major oil producers, a move that incoming treasury secretary endorsed last week. the us has already imposed extensive sanctions on russia. if you look at how much russia sells to the us, it's very little. in the first 11 months of last year, the us imported a little less than $3 billion worth of russian goods, that's one tenth of i% of total us

imports and it's a reduction of 90% from what the us imported from russia in 2021, the year before the invasion of ukraine. trump campaigned on promises to end the conflict with ukraine, that killed tens of thousands and reduced cities to rubble. here in the uk, the government is facing a backlash from three of the country's biggest supermarkets over its new inheritance tax on farmers. tesco, aldi, and lidl have warned the uk's future food security is at stake, unless the government pauses the introduction of inheritance tax on farms worth over one million pounds. this comes as the government's budget watchdog, the office for budget responsibility, warns farmers are likely to slash investment because of the tax. james hughes is co—founder of financial content firm prezco. good morning to you. so this is a big boost forfarmers. these three supermarket chains all of

which are very influential, are on board. which are very influential, are on board-— on board. morning. yeah, absolutely. _ on board. morning. yeah, absolutely. and _ on board. morning. yeah, absolutely. and this - on board. morning. yeah, absolutely. and this is - on board. morning. yeah, | absolutely. and this is the on board. morning. yeah, - absolutely. and this is the key thing — this was always going to be the point the government would have to start listening. was if there was some sort of financial clout behind it. and what we can't underestimate is the financial clout these big supermarkets have in the uk. now they're being a little bit more vocal about this, it will have to make the government look at this and respond in some way. and i think what is important about this policy is that, obviously this has been touted ever since the budget, but the nfu, that's the national farmers but the nfu, that's the nationalfarmers union, they national farmers union, they have nationalfarmers union, they have come out a number of times to say there are ways this policy can be made less bad, as they say, with tweaks here and there. ratherthan they say, with tweaks here and there. rather than seeing it completely pulled away, it's making those changes. but it's

the power that these supermarkets have. we know if they start to hit the government in the pocket, that's when the government will have to look at this. find that's when the government will have to look at this.— have to look at this. and it's interesting _ have to look at this. and it's interesting to _ have to look at this. and it's interesting to see _ have to look at this. and it's interesting to see them - have to look at this. and it's interesting to see them all | interesting to see them all collaborate and come together on this issue. because the relationship between farmers and the big supermarkets, in particular tesco, and the big supermarkets, in particulartesco, has and the big supermarkets, in particular tesco, has been fractious for years, where farmers feel any have been squeezed and forced to reduce their prices by the likes of tesco, which is a giant. 10096. i think what — tesco, which is a giant. 10096. i think what we _ tesco, which is a giant. 10096. i think what we have _ tesco, which is a giant. 10096. i think what we have to - tesco, which is a giant. 10096. i think what we have to look i i think what we have to look into this, if the government do go ahead with this, and there's no changes. the supermarkets will continue doing business as normal. they will get their produce from somewhere else if that means british supply chains are affected as they say they are. however, what we need to look at from this perspective, is what a great pr story this is, for the big supermarkets. because as you say, forever, farmers have been of the opinion the supermarkets are not supporting them. you

know, they're making it difficult, they're make — all of the ways they distribute those goods, the cost they get, the fact the prices are often very much set incredibly low areas, farmers have the problems with supermarkets for a long time. now, what this does, if you look at