Tariffs weigh on markets, pound recovers ahead of data, Bitcoin takes a breather

Here is what you need to know on Wednesday, January 15:

Trade: The US will maintain most of the tariffs it has slapped on China at least until November – when the US elections are due. The market mood has worsened and the yen recovered on fears that Phase One of the trade deal – due to be signed today – will not be helpful enough to the global economy. Also, the administration is set to tighten pressure on Huawei, China’s telecom giant. 

US-EU trade: The European Commission’s Phil Hogan continues trade talks in Washington after the first day of negotiations ended without a breakthrough. 

GBP/USD has been recovering and recaptured at 1.30. The Bank of England’s Michael Saunders – a hawk turned dove – will speak early in the day and may join the calls for cutting rates. The UK then releases inflation figures for December, with the headline Consumer Price Index expected to remain unchanged at 1.5%. See UK inflation: Cementing the rate cut or…