Taiwan's opposition leader has arrived in mainland China for a six-day visit, describing the journey as a 'peace trip' amid ongoing cross-strait tensions.

The chairwoman of Taiwan’s main opposition Kuomintang (KMT) faces scrutiny in Taipei over her high-stakes planned visit to mainland China, where she is expected to meet Communist Party leader Xi Jinping to promote cross-strait peace.

Rising fuel surcharges and safety concerns, linked to the United States-Israel attack and broader Middle East conflict, are deterring Hong Kong tourists from international travel, leading them to choose trips to mainland China instead.

Hong Kong has committed to helping mainland China's medical and health standards "go global," with the local health minister highlighting the city's first time hosting a national medical conference as a significant event.

A tear-jerking box office hit film is scheduled for release in mainland China, anticipating strong audience reception.

Mainland China's Taiwan affairs office has accused Taiwan's Democratic Progressive Party (DPP) of manipulating the judiciary and suppressing opponents for political self-interest, citing the case of Ko Wen-je.

The chairperson of Taiwan's Kuomintang party has received an invitation to visit mainland China, potentially signaling diplomatic engagement.

Hong Kong customs, in a joint anti-smuggling operation with mainland China authorities, seized approximately 20 million illicit cigarettes with an estimated market value of HK$92 million (US$11.46 million) from a cargo vessel.

A mainland spokesperson has criticized Taiwan's Lai administration, accusing it of manipulating the judiciary to suppress political dissent following Ko Wen-je’s sentence.

Taipei is positioning itself as a drone manufacturing hub in the Asia-Pacific region, focusing on a supply chain independent of mainland China, despite facing challenges related to scale, politics, and timing.

Following a threat assessment, the US has stated that mainland China is not planning to attack Taiwan in 2027.

As conflict in the Middle East drives up global fuel prices, Hong Kong drivers are looking north for relief - but will the savings add up?

Cathay Pacific has initiated a significant recruitment drive in mainland China, seeking to expand its workforce and strengthen its operations in the region.

A 600-year-old brick bearing Hong Kong superstar Andy Lau Tak-wah’s name has gone viral on social media in mainland China. Three characters, identical to the actor and singer’s Chinese name, were…

The United States has sent a military patrol aircraft to the Taiwan Strait weeks before the Xi-Trump summit, triggering People’s Liberation Army jet manoeuvres near Taiwan after several days of pause. A US Navy P-8A Poseidon transited the Taiwan Strait in international airspace on Wednesday, the US Seventh Fleet said on Thursday. The passage through the waterway separating Taiwan and mainland China illustrated the US’ commitment to “a free and open Indo-Pacific”, Commander Matthew Comer, a...

China Daily reports on efforts to elevate exchanges to forge stronger cross-Strait ties, indicating a focus on improving relations between mainland China and Taiwan.

Adrian Cheng Chi-kong, former heir apparent to New World Development, plans to increase his tech investments and spend more time in mainland China, focusing on sectors like artificial intelligence, in line with China's 5-year plan.

Financial industry leaders at China's annual 'two sessions' urged Hong Kong to reinforce its role as an international financial centre by deepening integration with mainland capital markets and expanding cross-border investment channels.

Hong Kong police have arrested a 14-year-old boy on suspicion of animal cruelty in connection with graphic images and videos circulating online that depicted degrading acts, including sexual abuse, against cats, the South China Morning Post has learned. A source said police arrested the boy on Tuesday, after authorities in mainland China conducted an investigation into the online images. Mainland police launched the probe after a series of animal abuse videos and photos were posted online in...

What does Taiwanese leader William Lai’s rare ‘mainland China’ reference mean?  The Star

Analysts are examining Taiwanese leader William Lai Ching-te’s rare use of the term 'mainland China,' suggesting it signals caution ahead of a potential Xi-Trump summit.

Hong Kong will establish the first national manufacturing innovation centre outside mainland China and a high-level steering committee to spearhead AI development, the finance chief has said, as the city seeks to align with the country’s 15th five-year plan. Financial Secretary Paul Chan Mo-po also unveiled a citywide artificial intelligence (AI) literacy drive in Wednesday’s budget, earmarking funds for various organisations to set up courses on the technology. “We must embrace the 15th...

Visitor numbers in Hong Kong rose about 14 per cent during the Chinese New Year holiday but more residents left the city, while local retailers reported bumper sales of gold products. Some retailers reported single purchases worth millions of Hong Kong dollars within categories such as watches and jewellery, even as the broader retail recovery remained uneven. Immigration Department figures showed trips made by visitors – from mainland China and elsewhere – rose about 14 per cent year on year...

Asian markets show mixed performance, with mainland China rallying post-holiday while Hong Kong and India slump, as fears surrounding AI trigger a rout in the tech sector.

Hong Kong's Correctional Services Department has initiated exchange tours to mainland China for former young offenders convicted of crimes related to the 2019 social unrest, aiming to enhance their understanding of national development and culture.

Hong Kong welcomed 10 per cent more visitors on the first day of Lunar New Year on Tuesday, with crowds continuing to flock to hiking trails and tourists packing border crossing checkpoints. The latest Immigration Department data showed that 153,383 visitors arrived in the city on Tuesday, representing about a 10.4 per cent increase compared with the same day last year. Of these, more than 120,000 came from mainland China. Inbound trips over the first two days of Lunar New Year totalled 265,140,...

A Hong Kong court has issued a parental order for two boys born via a verbal surrogacy agreement in mainland China, granting rights to a local married couple.

A Kuomintang (KMT) delegation, led by Cheng, has arrived in Shanghai, marking the beginning of their visit to mainland China.

A growing number of international car brands are likely to exit or significantly scale down operations in mainland China as they face mounting losses from falling sales and shrinking market share, driven by Chinese buyers shunning petrol cars.

Hong Kong’s first five-year plan, designed in the style of mainland China, is set to guide the city’s future development and signals a major shift in its long-term growth strategy.

Hong Kong’s No 2 official, Eric Chan, has pledged to fast-track the development of a new university town following a visit to similar projects in mainland China. Authorities plan to devise a strategy to attract top institutions from across the border and overseas.

Taiwan’s Premier Cho Jung-tai has warned the chairwoman of the main opposition party Kuomintang (KMT) against engaging in talks or agreements involving government authority during her upcoming visit to mainland China.

Hong Kong's MTR Corporation is deploying mainland China-made rail equipment and technologies from manufacturing giant CRRC, which a top representative believes can serve as a "showcase" for global applications.

Škoda Auto will cease selling its vehicles in mainland China by mid-2026 due to significant changes in the local market and a drastic decline in sales. The Volkswagen brand will instead focus on strengthening its presence in India and Southeast Asia.

Chinese self-driving technology company WeRide is looking to launch robotaxi services in Hong Kong and Singapore this year, expanding its operations outside mainland China.

Hong Kong's finance chief has called for efforts to bolster the city's global standing and strengthen its role as a "superconnector" between mainland China and the West amidst complex geopolitical changes.

Hong Kong’s labour chief has said geopolitical tensions in the Middle East have made the city, with its relative security and stability, “a more attractive place” for global talent, including those from Gulf countries. Secretary for Labour and Welfare Chris Sun Yuk-han highlighted the government’s efforts in recent years to attract talent, dismissing concerns that most successful applicants under its schemes were from mainland China. He said that about one fourth of imported workers from vari...

Japan saw a 45.2% year-on-year drop in Chinese tourists last month, with only 396,400 visitors from mainland China, despite the Lunar New Year falling in February, reflecting ongoing tensions between Tokyo and Beijing.

US fashion brand Guess has announced it will close all its stores in mainland China by the end of March as part of a business model rethink, joining a growing number of international retailers retreating from the market.

Hong Kong flag carrier Cathay Pacific Airways plans to hire 3,000 employees globally this year, including pilots and flight attendants, to support its growth plan, with the airline expressing strong confidence in its future expansion potential. The carrier launched its global recruitment drive in Beijing on Saturday as part of efforts to attract more talent from mainland China to support its future development plans, including promoting inbound tourism. Currently, the company has more than...

Hong Kong drivers are increasingly crossing the border to mainland China to replenish their tanks, as authorities crack down on a case of an illegal filling operation amid the surge in global oil…

A CPPCC member projects nearly 4.9 million visits from Taiwan to mainland China in 2025, with one-third made by young people, indicating growing cross-strait exchanges.

Hong Kong's legislature is exploring the establishment of a mechanism to scrutinize the implementation of approved bills and funding, drawing inspiration from mainland China's law enforcement inspection system.

Hong Kong and Singapore are vying to become the world's leading gold trading hub, with experts suggesting Hong Kong has an advantage due to its access to mainland China's market.

Venture capitalist Nisa Leung suggests that Mainland China and Hong Kong should ease listing rules for biotechnology companies and lower takeover thresholds to attract foreign investment in the healthcare sector.

Hong Kong and Shanghai have signed an accord deepening their collaboration in promoting digitised cargo trade finance and strengthening mainland China’s connection to the global data ecosystem. The Hong Kong Monetary Authority (HKMA) on Monday signed a memorandum of understanding (MOU) with the Shanghai Data Bureau and the National Technology Innovation Centre for Blockchain, according to a statement from Hong Kong’s de facto central bank. “This marks an important milestone in the collaborati...

Mainland China has called out the hypocrisy of 'Taiwan independence' separatists, reiterating its stance on the self-governed island.

Analysts predict that Hong Kong's increased stamp duty on ultra-luxury homes will not deter mainland Chinese buyers, as underlying demand factors are expected to outweigh the tax impact.

Hong Kong's finance chief is set to announce substantial funds for a new innovation hub near mainland China and incentives for the aerospace sector in the upcoming budget.

Beijing is encouraging equity investors to pursue representative action against unscrupulous listed or delisted firms in an apparent effort to bolster confidence in the country’s stock markets, as trading resumed on Tuesday following a 10-day break. The Supreme People’s Court, mainland China’s highest judicial organ, also announced at a press conference that it would issue more edicts on civil compensation for insider trading and market manipulation to better safeguard retail investors’...

A firm with links to mainland China has secured a three-year tenancy to operate a new harbourfront event space in Hung Hom, Hong Kong, which is set to open next month.

Hong Kong recorded a 13 per cent surge in visitors from mainland China during the Lunar New Year holiday, with the influx boosting jewellery sales by 10 per cent during the period despite a sharp rise in gold prices. Industry representatives said on Sunday that festive business had outperformed last year’s, though the recovery remained uneven across sectors and not always directly tied to the surge in mainland visitors. Immigration figures showed 1.02 million mainlanders visited the city betw...

Taiwanese singer Kenji Wu has been officially recognized for his extensive grassroots charitable efforts in mainland China, where he has visited over 100 cities to assist farmers in selling their produce.

Vietnam's busiest airports anticipate record passenger volumes during the Lunar New Year, with Vietnam, mainland China, and other Asian countries emerging as popular destinations for Hongkongers.

Changes to home rental laws in England and Wales, including a proposed cap on ground rents, are expected to affect foreign property investors, particularly those from Hong Kong and mainland China.

The former chairwoman of Taiwan's main opposition party, the Kuomintang (KMT), has called for cross-strait dialogue to break the state of 'cold peace,' rebuild trust, and avoid conflict with mainland China.

More Hongkongers opted for tours to mainland China during the Easter holiday, as the ongoing conflict in the Middle East disrupted air travel, according to an industry leader.

Apple's accidental rollout of its anticipated Apple Intelligence feature in mainland China, which lacks regulatory approval, before swiftly pulling it, could provoke the ire of regulators and expose the US tech giant to significant backlash.

A call has been made for increased cooperation between mainland China and Hong Kong to capitalize on emerging opportunities in artificial intelligence.

Experts warn that Hong Kong's heavy reliance on talent from mainland China could downgrade its status as an international hub, advocating for a broader global talent acquisition strategy.

Mainland China has criticized Taiwan's President-elect Lai Ching-te, accusing him of distorting history and betraying the nation.

A former leader of a now-dissolved Tiananmen vigil group has testified in court that their published writings were intended to expose Hongkongers to democratic movements in mainland China, not to incite subversion. This testimony comes as a Hong Kong barrister and activist, Chow Hang-tung, is also on trial for allegedly inciting subversion, criticizing Beijing for undermining the nation's constitutional order.

A former Hong Kong lawmaker on trial for allegedly inciting subversion has denied abetting criminal activity by supporting mainland Chinese dissidents, accusing Beijing of levelling false charges…

We have put together stories from our coverage on electric and new energy vehicles from the past two weeks to help you stay informed. If you would like to see more of our reporting, please consider subscribing. 1. Geely beats BYD sales in first 2 months of 2026 to become China’s top carmaker Geely Auto has gained the upper hand in mainland China’s intensifying automotive sector, as its diverse product line-up pays off after electric vehicle (EV) king BYD suffered a setback following partial...

Demand for some regional holiday destinations among Hong Kong travellers has jumped by as much as 30 per cent ahead of Easter, as locals seek to avoid long-haul trips amid rising airfares and disrupted routes caused by the ongoing war in Iran, according to industry players. Travel agencies said the number of inquiries for trips to Japan, South Korea, mainland China and Australia had risen by between 10 and 30 per cent since the war escalated, while demand for destinations linked to the Middle...

We have selected seven stories from this week’s news across Hong Kong, mainland China, the wider Asia region and beyond that resonated with our readers and shed light on topical issues.

Hong Kong rail giant MTR Corporation’s net profit dropped 6.9 per cent to HK$14.68 billion (US$1.88 billion) last year, from HK$15.77 billion in 2024, as higher depreciation costs and weaker revenue from its mainland China operations weighed on earnings. The corporation recorded a property development profit of HK$11.08 billion last year, up from HK$10.27 billion in 2024, with income generated from projects including The Southside, Lohas Park and Ho Man Tin Station. However, the corporation...

Geely Auto has gained the upper hand in mainland China’s intensifying automotive sector, as its diverse product line-up pays off after electric vehicle (EV) king BYD suffered a setback following…

A mainland Chinese spokesperson has slammed a Taiwan official's trip to Japan as 'despicable,' with the Foreign Ministry warning Japan against emboldening provocations.

We have selected seven stories from this week’s news across Hong Kong, mainland China, the wider Asia region and beyond that resonated with our readers and shed light on topical issues.

Beijing is encouraging Taiwanese youth to visit mainland China by covering travel and accommodation costs, using these trips as a 'soft influence' tool to sway young Taiwanese residents.

We have selected seven stories from this week’s news across Hong Kong, mainland China, the wider Asia region and beyond that resonated with our readers and shed light on topical issues.

Taiwan's first colonists in the 17th century were Europeans (Dutch and Spanish), not Chinese, with the Dutch eventually expelling rivals before the Qing dynasty's influence grew from mainland China.

Mainland China’s 2026 Lunar New Year box office reached RMB5.75 billion ($835.5 million) during the Feb. 15-23 holiday period, down 39.5% year-on-year, with total admissions of 120 million, a 35.8% decline, according to Maoyan Research Institute’s “Insight Report on 2026 Spring Festival Holiday Box Office Film Data.” The sharp drop follows last year’s phenomenon “Ne […]

The Hong Kong government is organizing exchange tours to mainland China as part of a rehabilitation program for jailed protesters and activists, as announced by the Commissioner of the Correctional Services Department.

People-to-people exchanges between mainland China, Hong Kong, and Macao have significantly increased during the Spring Festival holidays.

We have selected seven stories from this week’s news across Hong Kong, mainland China, the wider Asia region and beyond that resonated with our readers and shed light on topical issues. If you would like to see more of our reporting, please consider subscribing. 1. Why the growing network of American MQ-9 drones is a challenge for China America’s increasing use of MQ-9 drones near China poses a challenge to Beijing and makes it more urgent for the People’s Liberation Army to improve...

Futures, Global Markets Rise With US Markets Closed For President's Day Stocks gained, bitcoin tumbled and bonds steadied after Friday's cool CPI data reinforced expectations that the Fed will cut interest rates on multiple occasions this year. With US markets closed for the Presidents’ Day holiday and mainland China’s markets closed for Lunar New Year holidays, trading was muted on Monday. As of 9:00am ET, futures on the S&P 500 added 0.4% and Europe’s Stoxx 600 index rose 0.4% as banking shares rebounded from a sharp decline last week. German bunds and Treasury futures were steady after US yields touched the lowest since December on Friday. The path of US interest rates remains in focus following Friday’s slower-than-expected US inflation print as traders fully price a Fed cut in July and the strong chance of a move in June.   “The backdrop for equities is positive post CPI,” said Andrea Gabellone, head of global equities at KBC Securities. At the same time, there could be “more dispersion ahead as sentiment around key AI-exposed sectors is still very critical,” he added.  That sentiment was echoed by other strategists seeking to distinguish between AI losers and winners. A JPMorgan Chase & Co. team led by Mislav Matejka urged caution on stocks at risk of AI-driven “cannibalization,” including software, business services and media companies. Meanwhile, banks are developing baskets to capitalize on the divergence: as we first reported last Thursday, Goldman launched a new basket of software stocks that goes long firms that will benefit from AI adoption, while shorting the companies whose workflows could be replaced. With AI disruption rippling through markets, a lot will come down to earnings resilience, in particular in the US.  “When you look at the current earnings season, the companies are showing 13% of growth,” Nataliia Lipikhina, head of EMEA equity strategy at JPMorgan, told Bloomberg TV. “Overall, this is the reason why we continue to be positive on the S&P.” Later this week, traders will be watching for ADP private payrolls numbers on Tuesday and the minutes from the Fed’s January meeting on Wednesday for a fresh read on the economy. European stocks gained with bank shares rebounding, after posting their biggest weekly decline since April on worries about disruption from artificial intelligence. The basic resources sector lags, with Norsk Hydro among Europe’s worst performers as both Goldman Sachs and RBC downgrade the stock. Stoxx 600 rises 0.4% to 620.26 with 253 members down, 336 up, and 11 unchanged. Here are some of the biggest movers on Monday:  NatWest shares rise as much as 4%, the most since October, as Citi analyst Andrew Coombs raises his price target on the UK bank to a Street-high. Seraphim Space shares rise as much as 9.2%, briefly hitting a new all-time high, after the space tech investment firm said the valuations of its four largest holdings increased over the final months of 2025. AECI shares rally as much as 6.1%, the most since July, after the South African commercial-explosives maker shared improved 2025 headline earnings per share guidance. Orsted shares rise as much as 3.8% after analysts at Kepler raise the recommendation to buy from hold over the Danish renewable energy firm’s outlook, despite ongoing uncertainty for the industry in the US. Norsk Hydro shares fall as much as 4.4%, extending Friday’s 5.9% earnings-triggered drop, after being downgraded at Goldman Sachs and RBC over disappointments and pricing pressures in the Norwegian aluminum company’s downstream business. Galderma shares slip as much as 2.2% after naming Luigi La Corte as its new chief financial officer following the news back in July that Thomas Dittrich was departing. Pinewood Technologies shares tumble as much as 32%, the most since April 2024, after Apax Partners said on Friday it will not proceed with a possible cash offer for the car dealership software provider. FlatexDEGIRO shares drop as much as 7.2% after BNP Paribas downgraded the online brokerage firm to neutral from outperform, saying the price reflects too much optimism about its market position in Germany. Maurel & Prom shares slump as much as 12%, pulling back after ending last week at a 2015-high, after announcing it is not currently authorized to resume oil and gas operations in Venezuela. Barratt Redrow shares fall as much as 3.7%, leading a drop in British homebuilders after Rightmove said house prices are stalling. Asian stocks slipped for a second day, led by declines in Japan as traders booked profits after last week’s post-election rally. Several markets were closed or held shortened trading sessions for the Lunar New Year holiday. The MSCI Asia Pacific Index was down 0.1%. Japan’s Topix Index fell 0.8%, with Mizuho Financial Group Inc. and Toyota Motor Corp. among the companies contributing to the index’s losses.In Hong Kong, AI model developer Minimax Group Inc. surged as much as 30% to more than four times its original listing price, while competitor Knowledge Atlas JSC Ltd. ended 4.7% higher. The market will be closed until Thursday. As investors across the region begin to reevaluate their bets on its artificial-intelligence-driven rally, traders in Japan cashed in gains driven by expectations of Prime Minister Sanae Takaichi’s proactive spending policies last week.Trading in Singapore ended early Monday and will be shut until Wednesday. Equity markets in mainland China, South Korea, Indonesia and Vietnam were closed.  In FX, the yen is the notable mover in currencies, weakening 0.5% against the dollar and pushing USD/JPY back above 153. The offshore yuan is one of the better performers against the greenback. The Bloomberg Dollar Spot Index rises 0.1%. There is no cash trading in Treasuries due to the Presidents’ Day holiday. European government bonds are little changed In commdities, gold dipped below $5,000 an ounce, as traders booked profits from a gain in the previous session. Bitcoin tried anf ailed to stage a modest rebound; it last traded around $68,275 after posting its fourth consecutive weekly loss, with the cryptocurrency struggling to find clear direction as a weekend rally fizzled once the momentum ignition algos emerged.  WTI crude futures tread water near $62.90 a barrel.  Top Headlines President Trump said there will be voter ID rules in the mid-term elections this year, whether Congress approves it or not, and they will present a legal argument in an Executive Order. Furthermore, Trump said he has searched the depths of legal arguments not yet articulated nor vetted on this subject, and they will be presenting an irrefutable one in the very near future. Iran says potential energy, mining and aircraft deals on table in talks with US: RTRS Pentagon threatened to cut its ties with Anthropic over the company’s insistence that some limitations are kept on how the military uses its AI models: RTRS UK eyes rapid ban on social media for under 16s, curbs to AI chatbots: RTRS Rampant AI Demand for Memory Is Fueling a Growing Chip Crisis: BBG Warner Bros. Weighs Reopening Sale Negotiations With Paramount: BBG Companies Are Replacing CEOs in Record Numbers—and They’re Getting Younger: WSJ Europe aims to rely less on US defence after Trump's Greenland push: RTRS DOJ Tells Lawmakers Epstein File Redactions Complied With LawL BBG For College Applicants, Pressure to Make Summers Count Has Gotten Even Worse: WSJ Fed's Goolsbee (2027 voter) said on Friday that they are still seeing pretty high services inflation, and he hopes they have seen the peak impact of tariffs, while he added that the job market has been steady, with only modest cooling.  The Break Is Over. Companies Are Jacking Up Prices Again: WSJ Trade/Tariffs USTR Greer said the US and Ecuador expect to sign a trade agreement in the coming weeks. China will waive import value-added taxes on selected seeds, genetic resources, and police dogs through to 2030 to increase agricultural competitiveness and breeding capacity. It was also reported that China will grant zero-tariff access to 53 African nations from May 1st, according to Bloomberg. Chinese Foreign Minister Wang Yi told his French and German counterparts that China and the EU are partners, not rivals, while he added that China and the EU should manage differences, deepen practical cooperation and work together on global challenges. A more detailed look at global markets courtesy of Newsquawk APAC stocks began the week in the green but with gains limited following a lack of major fresh catalysts from over the weekend and amid thinned conditions owing to holiday closures in the region and North America. ASX 200 traded marginally higher with upside led by tech, although gains are capped by underperformance in the utilities, mining, materials and resources sectors, while participants also digested a slew of earnings releases. Nikkei 225 traded indecisively with the index constrained by disappointing Japanese preliminary Q4 GDP data, which showed the economy returned to growth but failed to meet expectations with GDP Q/Q at 0.1% (exp. 0.4%), and annualised GDP at 0.2% (exp. 1.6%). Hang Seng finished higher in a shortened trading session on Chinese New Year's Eve but with upside limited by tech weakness amid some confusion after the Pentagon added several companies including Baidu, Cosco, BYD, Huawei, Nio, SMIC, Tencent, and more to a list of Chinese firms aiding the military on Friday, but then withdrew the updated list shortly after it was posted. Furthermore, price action was also restricted by the closure of mainland markets and the absence of stock connect flows, which will remain shut for more than a week. US equity futures kept afloat in quiet trade amid the absence of drivers and participants. European equity futures indicate a mildly positive cash market open with Euro Stoxx 50 futures up 0.1% after the cash market closed with losses of 0.4% on Friday. Asian Headlines Chinese President Xi called for the anchoring of economic growth around domestic demand as its main driver, in a speech during a key policy meeting late last year that was released on Sunday. China is to establish a permanent financial support framework to promote rural revitalisation and prevent a slide back into poverty, which represents a shift from transitional aid to long-term support. China’s market regulator summoned major online platform companies on Friday, including Alibaba, Douyin and Meituan, while it directed them to comply with laws and regulations, and rein in promotional practices, according to Bloomberg. US Secretary of State Rubio and Japanese Foreign Minister Motegi reaffirmed their commitment to deepen bilateral ties. Disney (DIS) sent a ‘cease and desist’ letter to ByteDance over Seedance 2.0 and alleged that ByteDance has been infringing on its IP to train and develop an AI video generation model without compensation, according to Axios. It was later reported that ByteDance said it would curb its AI video app following Disney's legal threats, according to the BBC. RBI tightened rules for loans provided to brokers and proprietary firms in an effort to reduce market speculation FX DXY eked slight gains in rangebound trade after a lack of major catalysts and with US participants away on Monday. EUR/USD was little changed amid the absence of any major macro catalysts and with light newsflow from the bloc, while comments from ECB President Lagarde and news that the ECB is to make its repo backstop available to other central banks across the world, did little to spur price action. GBP/USD held on to most of Friday's spoils but with price action contained by resistance around 1.3650 and following comments from BoE's Mann that the UK economy is sluggish and tepid, with consumers spending less due to being scarred by high inflation. USD/JPY edged higher and returned to above the 153.00 level in the aftermath of the weaker-than-expected preliminary Q4 GDP data for Japan. Antipodeans were mixed with little fresh macro drivers and a lack of tier-1 data from either side of the Tasman. Fixed Income 10yr UST futures traded little changed and held on to last week's spoils after returning above the 113.00 level in the aftermath of the softer US inflation data, while price action was contained to start the week by the closure of US cash markets for Washington's Birthday. Bund futures lacked demand in the absence of any major catalysts and with light newsflow from the bloc. 10yr JGB futures were marginally higher following disappointing preliminary GDP data for Q4, but with gains limited after failing to sustain a brief reclaim of the 132.00 level. Commodities Crude futures were rangebound amid light energy-specific newsflow from over the weekend and after last Friday's indecisive performance, where attention was on a source report that noted OPEC+ is leaning towards resuming oil output hikes from April, but with no decision made. Slovak PM Fico said he has information that the Druzhba pipeline has been fixed after damage in Ukraine, although he believes that supplies to Hungary and Slovakia have become a part of political blackmail. Spot gold took a breather after edging higher in the aftermath of the recent softer-than-expected US inflation data, with price action also contained by the holiday closures across Asia and North America. Copper futures were subdued, with their largest buyer away for more than a week due to the Chinese New Year/Spring Festival holiday. Texas venture-backed startup Hertha Metal vowed mass production of steel with 25% cost savings, which could reduce US reliance on imports. Geopolitics: Middle East US military is preparing for potential operations against Iran that could last for weeks if US President Trump orders an attack and the US fully expects Iran to retaliate, according to sources cited by Reuters. US President Trump told Israeli PM Netanyahu during a meeting in December that he would support Israel striking Iran’s ballistic missile program if the US and Iran are not able to reach a deal, according to CBS. Iran confirmed that indirect talks between the US and Iran will resume in Geneva on Tuesday under the mediation of Oman, while Iranian Foreign Minister Araghchi left for Geneva on Sunday. Iranian diplomat said Iran is open to nuclear deal compromises if the US discusses lifting sanctions, while it was also reported that Iran said potential energy, mining and aircraft deals are on the table in talks with the US. Israel’s cabinet approved the proposal to register West Bank lands as ‘state property’, while Palestinians condemned the ‘de facto annexation’ which Peace Now said likely amounts to a ‘mega land grab’. Geopolitics: Ukraine US President Trump said on Friday that Ukrainian President Zelensky is going to have to get moving and that Russia wants to get a deal. US Secretary of State Rubio said they don’t know if Russia is serious about finding an end to the war in Ukraine and will continue to test it, while it was reported that he met with Ukrainian President Zelensky on security and deepening defence and economic partnerships. Ukrainian drones targeted Russia’s Taman seaport and fuel tanks in the Black Sea region. UK and European allies were reported on Friday to be weighing seizing Russian shadow fleet ships and tightening curbs on Russia's economy. French Foreign Minister Barrot said some G7 nations have expressed a willingness to proceed with a maritime services ban on Russian oil, which they hope to include in the 20th sanctions package that they are actively preparing. Geopolitics: Other European Commission President von der Leyen said that they face the very distinct threat of outside forces trying to weaken their union, while she added that mutual defence is not an optional task for the European Union; it is an obligation within their own treaty, and it is their collective commitment to stand by each other in case of aggression. Pentagon said the US military struck an alleged drug cartel boat in the Caribbean, which killed three people. DB's Jim Reid concludes the overnigt wrap I hope you all had a good weekend. To stay in Winter Olympics mood the family watched "Cool Runnings" last night. I haven't seen it for 32 years. Please don't tell anyone but I had a few tears in my eyes at the end. I blamed it on the hay fever that has now started. There will be a lot of tears out there in markets for other reasons at the moment. Just two weeks ago, the idea of AI-driven disruption still felt like an abstract, almost academic thought experiment—something we could safely revisit once we had clearer evidence of how AI would be deployed and integrated across the economy. Fast forward 14 days, and markets have wiped out well over a trillion dollars of global equity value on the fear that AI could fundamentally reshape business models and compress profitability across a wide range of industries, including software, legal services, IT consulting, wealth management, logistics, insurance, real estate brokerage and commercial real estate. Some of the sell off in “old economy” sectors feels overdone to me. But as I argued in our 2026 World Outlook back in November, the real challenge is that even by the end of this year we still won’t have enough evidence to identify the structural winners and losers with confidence. That leaves plenty of room for investors’ imaginations—both optimistic and pessimistic—to run wild. As such big sentiment swings will continue to be the order of the day. My instinct is that the reaction in things like commercial real estate, for example, has been particularly exaggerated. Markets seem to be extrapolating a scenario in which vast numbers of white collar workers are made redundant almost overnight, leading to a dramatic collapse in office demand. If that view turns out to be correct, we’ll be facing societal challenges far larger than anything currently being priced into equities. While trying to catch a falling knife may be too risky for many, beginning to cushion the descent could be sensible in many old economy sectors. Markets can’t sustain a disruption narrative across multiple sectors for months or quarters without concrete evidence — and that evidence is likely to take much longer to emerge. Fascinating times. As for this week, today is a US holiday but inflation will remain in the spotlight at a global level after Friday's slightly softer US CPI which helped contribute to a decent rates rally to end the week. Prints are due in the US (PCE - Friday), the UK (Wednesday), Canada (Tuesday) and Japan (Friday). Other economic highlights will include the FOMC minutes (Wednesday), Q4 GDP in the US (Friday), as well as the global flash PMIs (Friday). Earnings reports will feature Walmart (Thursday), Nestlé (Thursday) and BHP (today). It's the earnings calm before next week's Nvidia storm. In the US, this holiday shortened week (President's Day today) features a data calendar dominated by releases that were pushed back by last year’s government shutdown. The most consequential updates will land on Friday, when the advance estimate of Q4 GDP arrives alongside December’s personal income and consumption figures—key inputs for shaping expectations for the early part of this year. For markets assessing the underlying pulse of demand heading into 2026, private final sales to domestic purchasers (PFDP) will carry more weight than the headline GDP print. This indicator—closely monitored by Fed Chair Powell—is expected by our economists to slow to 2.0% from 2.9% in Q3, though risks appear tilted upward. One swing factor: Wednesday’s durable goods report, where modest gains outside of transportation could soften the deceleration. On the consumer front, real PCE growth is expected to cool to 2.5% after two quarters of outsized strength but should still signal ample momentum heading into the new year. Friday’s income and spending report will also offer the latest reading on core PCE, the Fed’s preferred inflation gauge. Our economists expect another 0.4% monthly increase for December, lifting the year over year rate to 2.9%. Updated seasonal factors from last week’s CPI release suggest some mild downward pressure on inflation trends in the second half of 2025. Still, January’s CPI data, although softer than we anticipated, do not translate into equivalent relief for core PCE—in fact, our team currently sees another 0.4% gain for January's release (delayed until March 13th). Depending on the strength of medical services, airfare, and portfolio management components in the upcoming PPI report, a 0.5% monthly rise cannot be ruled out, which would push the year over year rate toward 3.1%. So don't get too excited about the softer CPI last week and the huge rates rally. Additional releases this week will help clarify whether recent severe winter weather has disrupted factory sector activity. January industrial production, due Wednesday, should benefit from a jump in utility output, while weather effects may weigh on the Empire State Survey tomorrow and the Philadelphia Fed survey on Thursday. Labor market data will also be in focus, particularly Thursday’s jobless claims, which line up with the survey week for the February employment report. As our economists have pointed out, private nonfarm job gains have averaged 103k over the past three months, slightly above the pace at this point in 2025 and matching the start of 2024. See their latest US employment chartbook here. This week will also feature a dense lineup of Federal Reserve speakers which you can see alongside all the key global data in the day-by-day week ahead calendar at the end as usual. Moving away from the US, inflation will also be in focus in Japan (Friday) and Canada (tomorrow). For the former, our Chief Japan Economist sees the January nationwide CPI showing a slowdown in both core CPI inflation ex. fresh food to 2.1% YoY (+2.4% in December) and core-core CPI inflation ex. fresh food and energy to 2.7% (+2.9%). Also important will be the global flash PMIs due on Friday as a health check on global growth. In Europe, the spotlight will be on UK inflation (Wednesday), with labour market data due tomorrow and retail sales on Friday. Our UK economist expects headline CPI inflation to drop to 3.0% YoY (3.4% in December) and core CPI also landing at 3.0% YoY (3.2% YoY). See more in his full preview here. In terms of key rate decisions, the RBNZ are expected to remain on hold on Wednesday. Finally, the Munich Security Conference wrapped up over the weekend, where key topics included Ukraine, Russia, and the fate of Greenland. And while US Secretary of State Marco Rubio’s speech was nothing like Vice President JD Vance’s at last year’s conference, which triggered a “wake-up” call for European leaders, Rubio reiterated the administration’s view that Europe needed to leave behind its focus on energy policies, trade and mass migration. Recapping last week now, the tech volatility that has dogged markets since the start of the month broadened into a far more indiscriminate sell-off. The trough came on Thursday, marked by a sharp drop in software stocks, but the weakness extended well beyond tech. Companies across wealth management, real estate and financials suffered double digit declines, underscoring how widespread the pullback has become. Market breadth confirmed this shift as the equal weighted S&P 500 fell -1.37% on Thursday, though it managed to finish the week up +0.29% (+1.04% on Friday). Ultimately, the sell-off left the major US indices on the back foot: the S&P 500 slipped -1.39% (+0.05% on Friday), the Nasdaq lost -2.10% (-0.22% on Friday), and the Magnificent 7 slid -3.24% (-1.11% on Friday). Although the AI scare dominated sentiment, a heavy slate of US data also shaped the market narrative. Early in the week, softer prints—including flat December retail sales, a dovish Q4 Employment Cost Index, and slower Q4 growth expectations from the Atlanta Fed—pushed Treasury yields lower across the curve. That picture shifted midweek after a stronger than expected January jobs report, which delivered the largest gain in nonfarm payrolls (+130k vs. +65k expected) since December 2024 and reinforced confidence that the US economy carried solid momentum into 2026. Then on Friday, January CPI came in below expectations, adding another dovish note. Although the data offered mixed signals at times, the overall takeaway was sufficiently dovish for traders to increase the number of expected rate cuts by December 2026 to 63.4bps (+7.7bps on the week). This helped drive the largest weekly drop in the 10 year Treasury yield since August 2025, down -15.8bps (-5.0bps on Friday) to 4.05%. The 2 year yield also moved sharply lower, falling -8.9bps to 3.41% (-4.8bps on Friday), its lowest level since 2022. European markets, meanwhile, delivered a comparatively resilient performance. The STOXX 600 (+0.09%, -0.13% Friday), DAX (+0.78%, +0.25% Friday) and FTSE 100 (+0.74%, +0.42% Friday) all posted modest gains for the week. European sovereign bonds rallied as well, with the 10 year bund yield dropping -8.7bps—its steepest weekly decline since April 2025. That move was outpaced by gilts, which fell -9.8bps (-3.6bps on Friday) despite a sharp early week sell-off triggered by renewed questions surrounding Prime Minister Keir Starmer’s position. Elsewhere, performance was mixed. Brent crude edged down -0.44% (+0.34% on Friday), while gold extended its upward run, rising +1.56% (+2.43% on Friday). Will London’s half term week finally give us a quiet week in 2026? You’d probably have to guess at ‘unlikely’. Tyler Durden Mon, 02/16/2026 - 09:40

Hong Kong is considering changes to its education policy, aligning its development goals with mainland China, and facing challenges with rising public housing wait times and increased illicit cigarette seizures.