FRANKFURT (Reuters) - Global economic policymakers had been braced for an economic firestorm from the new U.S. administration but instead got a surprisingly restrained start from Donald Trump, who remains big on rhetoric but more cautious on action - for now.

The Bank of England (BoE) is open to discussions with Britain's government about new ways to help boost economic growth by paring back regulatory requirements for the financial services industry, Deputy Governor Sam Woods said on Monday.

Trump stated that he wants “bigger tariffs” than “2.5% universal tariffs on US imports,” proposed by Treasury Secretary Scott Bessent.

Several countries will announce their monetary policies in the coming weeks, including the US, the UK and India. Meanwhile, China’s AI start-up DeepSeek shook global stock markets, and the 2025 Oscar nominations were finally announced.

As you will notice scrolling through this newsletter, U.S. tariffs are top of mind for just about every sector in Canada – as well as for our climate goals. But U.S. President Donald Trump has made clear that environmental, social and corporate governance (ESG) is not a priority, and the world has thoughts.

The pound fell against a rebounding dollar on Tuesday even as U.S. President Donald Trump stopped short of implementing tariffs as signs of a softening British labour market reinforced expectations for a February rate cut from the Bank of England.

Despite recent pro-crypto moves by the Trump administration, short-term enthusiasm for the digital asset remains uncertain.

The Pound Sterling (GBP) recovers its entire intraday losses and climbs above 1.2500 against the US Dollar (USD) in Monday’s North American session. The GBP/USD pair bounces back as the US Dollar retreats after investors digest fears of United States (US) President Donald Trump imposing 25% tariffs on Colombia overnight.

Sterling was down 0.94% to 192.82 versus the yen, after hitting 192.51. It rose 1.03% on Friday. Inflation figures will be released from Japan, Germany and France on Friday, while the Fed's favourite inflation gauge is due in the U.S.

Donald Trump returned to the White House as US President last Monday, 20 January, in a highly-choreographed and glitzy ceremony. In what was seen as a display of power he signed a number of executive orders on a broad range of topics on his first day.

Now that the Liberal Party of Canada leadership race has taken shape, Thunder Bay-Rainy River MP Marcus Powlowski is lending his support to party outsider, Mark Carney, saying his experience

In an interview with Fox News, Trump said that he ‘would rather not’ impose tariffs on China and that he thinks they can agree a trade deal. Meanwhile, the increasingly risk-sensitive Pound (GBP) benefitted from the relief that swept markets.