London Daily

Focus on the big picture.
Wednesday, Jan 14, 2026

Investors revel in trade and Brexit optimism

Investors revel in trade and Brexit optimism

Happy Friday. A version of this story first appeared in CNN Business' Before the Bell newsletter. Not a subscriber? You can sign up right here.

Happy Friday. A version of this story first appeared in CNN Business' Before the Bell newsletter. Not a subscriber? You can sign up right here.

President Donald Trump said Thursday that the first day of high-level trade talks with China was going "very well." Officials later said the discussions made more progress than expected.


Momentum could build Friday when Trump meets Chinese Vice Premier Liu He, the country's chief trade negotiator.


The deal on offer: Officials familiar with the talks say possible outcomes will likely fall short of the sweeping, comprehensive trade deal that Trump has called for. But a smaller deal could include new currency agreements, Chinese commitments on farm purchases and the US scrapping a planned increase in tariffs next week.


"We are in the first steps of a first pass agreement likely covering agriculture and some manufacturing, with more to be negotiated in the next quarters," Sebastien Galy, a senior macro strategist at Nordea Asset Management, said in a research note.


The optimistic tone sent markets higher in Asia. The Shanghai Composite index added 0.3% while the Nikkei 225 rose 0.9%. The Hang Seng index climbed 1.5%.


Brexit chatter


US-China talks aren't the only set of high-stakes negotiations that have investors excited. UK and Irish leaders Boris Johnson and Leo Varadkar on Thursday raised hopes of a breakthrough on Brexit, saying they saw a "pathway" to a deal before October 31.


"I think it is possible for us to come to an agreement, to have a treaty agreed, to allow the UK to leave the EU in an orderly fashion, and have that done by the end of October," Varadkar said after meeting his UK counterpart.


The news sent the British pound sharply higher against the dollar, with the currency approaching $1.25 early Friday in London. UK stocks posted early gains too.


The big picture: There are still a hundred ways for Brexit talks to go wrong. Much depends on the question of the Irish border - and the proposed "backstop" - which has become the most intractable issue in negotiations.


Even if Johnson secures an agreement, he still has to get the deal through the UK parliament. His predecessor, Theresa May, repeatedly tried and failed to do just that.


Next steps: The EU's chief Brexit negotiator, Michel Barnier, is meeting his British counterpart Steve Barclay in Brussels on Friday.


The world is still awash with oil


US crude oil prices shot up 1.75% on Friday after Iranian state media said a tanker belonging to its national oil company was hit and damaged by two missiles in the Red Sea.


The missiles were "possibly" fired from Saudi soil, Saheb Sadeghi, head of the public relations of the National Iranian Tanker Company, told state-run Press TV.


The report sparked worries of an escalation in the conflict between Iran and Saudi Arabia, and their proxies in the region.
Risk reaction: US crude is trading about $8 below last month's high caused by an attack on Saudi oil facilities that wiped out half of the country's production capacity.


Among the factors helping to keep prices lower: A rapid recovery in Saudi output, weaker demand for crude, and a buildup in stocks.


The International Energy Agency on Friday downgraded its forecast for demand growth for this year and next. It also said that OECD commercial stocks in August increased for the fifth consecutive month and are now close to the record 3+ billion barrels level maintained for most of 2016 just after prices crashed.



The electric future


Dyson has abandoned its plan to build electric cars, saying the project aimed at taking on the biggest names in the automotive industry is not commercially viable.


The maker of vacuums and hand dryers said that while its engineers had produced a "fantastic" vehicle, the $3 billion effort would be wound down after Dyson tried but failed to find a buyer.


The project had been a source of curiosity among industry veterans, some of whom questioned whether a company with substantial engineering experience - but none with cars -could compete with established carmakers.


Hubris or hope? The project may have been a long shot, but it's notable that Dyson tried in the first place. Traditional automakers have huge resources at their disposal - Volkswagen for example has 665,000 employees and annual revenue of $265 billion.


Yet the success of Elon Musk's Tesla shows that determined engineers with the right ideas and timing can disrupt the big boys.

Newsletter

Related Articles

0:00
0:00
Close
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
×