Washington’s threat of tariffs on eight European nations to secure Greenland has heightened transatlantic tensions, with France pushing for the EU’s anti-coercion measures.

China achieved its 5% growth target in 2025, with Q4 growth largely in line with market expectations. Resilient exports and robust production were key supports, while services remained a stabilising factor.

Renewed US tariff threats over Greenland are unwelcome news for European industry, coming just as sentiment was beginning to recover from last year’s volatility.

The Chinese economy grew by 5% last year – but this should come as no surprise to anyone. After all, this was the goal of the Chinese Communist Party, and Xi Jinping had already mentioned a few weeks ago that the growth target had been achieved.

November jobs and December CPI data could provide a modest boost to sterling, potentially extending a short squeeze that has been building since late November.

CBT’s latest survey shows market participants holding a 23.2% inflation forecast for end-2026; this compares with 23.4% a month ago.

UK Prime Minister Keir Starmer said tariffs should not be used against allies and warned that a trade war would be in no one’s interest, as he emphasized partnership, dialogue and respect for international law in comments addressing rising geopolitical and economic tensions, according to Reuters.

The Oil market is under pressure in early-morning trading today, amid a broader risk-off move. President Trump threatened a 10% tariff on several European countries that oppose his Greenland plans.

Japanese Prime Minister Sanae Takaichi announced plans to dissolve Parliament on January 23 and call a snap general election for February 8, according to Reuters.

China’s real GDP growth moderated to 4.5% y/y in 4Q25 from 4.8% y/y in 3Q25, in line with Bloomberg’s poll, UOB Group's economist Ho Woei Chen reports.

GBP/JPY halts its three-day losing streak, trading around 211.70 during the European hours on Monday.

EUR/CAD extends its gains for the second successive session, trading around 1.6150 during the European hours on Monday.

Austria HICP (YoY): 3.8% (December) vs previous 4%

Austria HICP (MoM) increased to 0.5% in December from previous 0.2%

EUR/JPY appreciates after three days of losses, trading around 183.60 during the Asian hours on Monday.

Japan Tertiary Industry Index (MoM) registered at -0.2%, below expectations (0%) in November

Japan Industrial Production (YoY): -2.2% (November) vs previous -2.1%

Japan Capacity Utilization fell from previous 3.3% to -5.3% in November

Japan Industrial Production (MoM) came in at -2.7% below forecasts (-2.6%) in November

China Gross Domestic Product (YoY) came in at 4.5%, above expectations (4.4%) in 4Q

China Industrial Production (YoY) above expectations (5%) in December: Actual (5.2%)

China Gross Domestic Product (QoQ) above expectations (1%) in 4Q: Actual (1.2%)

China Fixed Asset Investment (YTD) (YoY) came in at -3.8% below forecasts (-3%) in December

China Retail Sales (YoY) came in at 0.9% below forecasts (1.2%) in December

China House Price Index fell from previous -2.4% to -2.7% in December

Australia TD-MI Inflation Gauge (YoY): 3.5% (December) vs 3.2%

United Kingdom Rightmove House Price Index (YoY): 0.5% (January) vs -0.6%

United Kingdom Rightmove House Price Index (MoM) up to 2.8% in January from previous -1.8%

Gold price (XAU/USD) rises to a fresh record high near $4,675 during the early Asian session on Monday. The precious metal gains momentum after US President Donald Trump said he would slap tariffs on eight European nations that have opposed his plan to take Greenland.

Australia TD-MI Inflation Gauge (MoM) up to 1% in December from previous 0.3%