QCP Asia Colour – 15 January 25 We're less than a week away from the inauguration of the 47th US President, Donald J. Trump. In a manner reminiscent of 2017, Trump has found a way to shake global markets even before officially taking office on 20th January. Inflationary fears continue to spook the US market. The US job market remains robust as NFP surprised higher last week (+256k v +165k exp.). While CPI appears to be moderating above the 2% target and despite PPI coming cooler, market participants still expect December's CPI to come in higher than the previous reading. Trump has widely publicized plans to impose tariffs on trading partners, mainly China, driving inflationary fears higher. Contrary to expectations of blanket tariffs from the outset, it now appears the new administration will gradually introduce tariffs on selected imports. Plagued by the specter of inflation, bond yields have started to creep higher once again. Markets are now pricing only two cuts in 2025 and 2026 (the latest Fed Dot…