Focus on

The EU has threatened to retaliate quickly if the United States imposes tariffs on imported cars. The chief economist of the European Central Bank hinted that the central bank may adjust its interest rate outlook if the economic outlook deteriorates. Seven MPs from Britain's opposition Labour Party may withdraw from the party, which may cause the Labour Party to change its Brexit position. China has announced Guangdong-Hong Kong-Macau Greater Bay Area's development plan to compete with Silicon Valley in the United States. The spread of "invisible relaxation" in China's property market is expected to give a boost to house prices.

International news

• The European Union has vowed that if the United States imposes tariffs on cars imported from the European Union, the European Union will immediately retaliate.

• Praet, chief economist of the European Central Bank, hinted that policy makers could adjust their interest rate outlook if the economy slows more than expected. According to the Bundesbank, Germany's economic growth will continue to be under pressure.

• Seven members of the British opposition Labour Party left the party because of Brexit, anti-Semitism and other issues, which may cause the Labour Party to change its Brexit position. According to the EU statement, the EU will strengthen contacts with companies on the risk of Brexit without an agreement.
  

• According to people familiar with the matter, Trump is considering the next permanent representative to the United Nations, including Goldman Sachs Group partner Dina Powell, current ambassadors to Canada and Germany Kelly Craft and Richard Grenell, and Republican John James from Michigan

• Trump seeks a peaceful transition in Venezuela, but is open to all options

• Singapore Finance Minister Wang Ruijie said in a budget speech that Singapore still maintains an expansionary budget for the 2019 fiscal year, and the overall budget deficit is expected to reach S $3.5 billion, equivalent to 0.7% of GDP.

Greater China News

• China has announced Guangdong-Hong Kong-Macau Greater Bay Area's development plan to link Hong Kong and Macao with a number of southern cities in the mainland to create a high-tech city cluster that can compete with California's Silicon Valley.

• 21st Century Business report: Hong Kong is discussing with the mainland the cross-border "LiCaiTong" project in the Greater Bay area.

• At least 11 Chinese cities have relaxed their settlement policies so far this year, which is seen as part of an "invisible relaxation" of restrictions on the property market, which could give a boost to house prices

• China's investigation into illegal financing has escalated, and the police have frozen more than 380 P2P loan platforms worth about 10 billion yuan worth of assets.

• UBS expects 2019 to be a leveraged year for China. Wang Tao, head of its China Economic Research Department, believes that China's debt-to-GDP ratio will rise again this year, contrary to the same level in 2017 and a decline in 2018.

• According to people familiar with the matter, the UK cyber security regulator believes that there is no need to completely ban Huawei from participating in 5G. According to a British government spokesman, the 5G assessment is still in progress and no decision has been made on Huawei.

• Hainan Airlines, a unit of HNA Group, may sell its stake in Atlantic Gateway, according to Jornal de Negocios.

• China plans to adjust its subsidy policy for photovoltaic projects in order to support the industry while limiting production capacity

• So-young International Inc, a Chinese plastic surgery website in which Tencent is a shareholder, has secretly applied for a US IPO, which is expected to raise about $300m and can be listed as soon as the middle of this year, according to people familiar with the matter.

• According to people familiar with the matter, the new development bank plans to issue 2 billion yuan of 3-year panda bonds and 1 billion yuan of 5-year panda bonds this week

A Survey of European and American Markets

• Us stock and bond markets are closed for the President's Day holiday

• Foreign exchange market: the dollar stabilized and the euro rose for the third day in a row; the pound rose, unaffected by the split within the opposition Labour Party

• The Bloomberg dollar spot exchange rate index is basically flat.

• The euro rose 0.13% against the dollar to $1.1311

• The dollar / yen rose 0.14% to 110.62 yen

• Sterling / dollar rose 0.27% to $1.2924

• The Australian dollar fell 0.15% to US $0.713.

• The euro / pound fell 0.12% to 0.8752 pounds

• The US dollar / offshore RMB was last traded at 6.7738 yuan in New York, which was basically the same as the last day in New York.

• The dollar / onshore RMB closed at 6.7675 yuan at the end of night trading, down 0.11% from the end of day and night trading.

• According to Taipei Foreign Exchange, the US dollar / Taiwan dollar is basically unchanged at NT $30.843.

• European equity bonds: Italian bonds rise with the stock market, German bunds fall, yield curve steepens

• The Stoxx Europe 600 index rose 0.2% to 369.78.

• The FTSE 100th index fell 0.2% to 7219.47.

• France's CAC 40 index rose 0.3% to 5168.54.

• Germany's DAX index was basically flat at 11299.2.

• The yield on 10-year UK government bonds rose 0.6 basis points to 1.166 per cent.

• The yield on German 10-year bonds rose 0.8 basis points to 0.11%.

• The yield on French 10-year bonds rose 0.9 basis points to 0.545%.

• The yield on Italian 10-year bonds fell 3.3 basis points to 2.766%.

• Energy: oil prices rise to their highest level in nearly three months, and Saudi Arabia promises to cut production further

• Brent crude futures rose 0.4% to $66.50 a barrel.

• Metals: London copper futures rose for the fourth day in a row, risk appetite picked up

• Copper for LME delivery rose 1.4 percent to $6275 a tonne.

• Aluminum for LME delivery fell 0.2% to US $1856 / tonne

• Nickel for LME delivery rose 0.4% to US $12455 / tonne.

• Zinc for LME delivery fell 0.6% to US $2638 / ton.

Economic data schedule (Beijing time)

• 17:00: Italian industrial orders in December from the previous value of-0.2 per cent

• 17:30: increase or decrease in the number of people applying for unemployment benefits in the UK in January (previous value increased by 20800)

• 17:30: UK ILO unemployment rate in December (estimated at 4 per cent, previous 4 per cent)

• 18:00: German ZEW Investor expectations Index for February (forecast of-13.6, previous value of-15)

• 18:00: euro area February ZEW investor expectations index (previous value is-20.9)

Central Bank and Government Trends (Beijing time)

• 08:30: minutes of the RBA's February policy meeting

• 18:15: speech by De Guindos, Vice President of the European Central Bank

• 21:50: Cleveland Fed President Mester talks about economic outlook and monetary policy

• 23:00: speech by Praet, Executive member of the European Central Bank

• 19: Hong Kong January Composite interest rate (present value is 0.89%)