1.Orders for Huawei smartphone components will drop by more than 60-percent this year
Initiated by the Trump administration, Huawei’s inclusion on the trade block register meant it was prevented from doing businesses with US companies. President Biden’s administration has shown no sign of pulling back on the trade embargo. While protesting the sanctions, and its innocence amid accusations of close involvement with Chinese government security services. The company is said to have informed its suppliers that orders for smartphone components will drop by more than 60-percent this year, insiders have leaked. Compared to the 189 million smartphones shipped in 2020, it now expects to produce 70-80 million handsets this year.
2.China seen keeping lending benchmark LPR steady for 10th straight month
China’s benchmark lending rate is set to stay unchanged for the 10th straight month at its February fixing on Saturday. The one-year LPR was last at 3.85%, and the five-year rate stood at 4.65%.The LPR is a lending reference rate set monthly by 18 banks. Economists at Morgan Stanley said they continued to expect a gradual and flexible pace of countercyclical tightening this year. “However, a hike in policy rates appears unlikely in 2021,” they said in a note published earlier this month, adding the central bank still aimed to keep funding costs for companies stable while inflation dynamics would remain healthy.
3.National Health Commission’s reply to liberalizing population birth restrictions
On February 18, the official website of the National Health Commission released the “Reply to Recommendation No. 9839 of the Third Session of the Thirteenth National People’s Congress.” saying liberalizing population birth restrictions in Northeast China’ is of great reference value for the committee’s work. There were 10.035 million newborns who were born in 2020 and registered with the public safety agency, of which 5.29 million boys, accounting for 52.7%, and 4.745 million girls, accounting for 47.3%, a decrease of approximately 14.9% compared with 2019.
4.Supervision makes it clear that credit card installment income belongs to “interest“, and the bank’s income may “shrink”
Recently, the Ministry of Finance, the State-owned Assets Supervision and Administration Commission, the China Banking Regulatory Commission, and the China Securities Regulatory Commission jointly issued a “Notice”, which requires bank credit card payment in installments business shall be recorded in the subject of “interest income” and shall not be recorded in the subject of “handling fee and commission income”. At present, the 12-phase bill installment fees of the five major banks are mostly between 7% and 9%.
5.In January, the actual and nominal effective exchange rates of the RMB hit new highs in the past five and two and a half years, respectively
The Bank for International Settlements (BIS) recently announced that the real effective exchange rate index for the renminbi rose 1.18% to 127.84 in January, a new high since March 2016. It was 0.09% last month. The real effective exchange rate has shown positive growth for seven consecutive months, which is also the longest continuous positive growth since March 2015. The RMB nominal effective exchange rate index rose 0.97% to 120.19 in January, a record high since June 2018. It was -0.58% last month.
6.REFILE-US STOCKS-Wall Street closes flat as cyclicals shine, big tech falls
NEW YORK, Feb 19 (Reuters) – Stocks on Wall Street closed near break-even on Friday as investors sold technology shares that have rallied through the pandemic and rotated into cyclical stocks set to benefit from pent-up demand once the coronavirus pandemic is subdued. Industrials led rising sectors in the S&P 500, and the S&P 1500 airlines index jumped 3.5%, with post-pandemic travel in focus. The stay-at-home winners, including Microsoft Corp,Facebook Inc, Alphabet’s Google and Netflix Inc, fell in a trend seen for most of the week.
7.Biden Signs Executive Order Ending Trump Industry Apprenticeship Program
In 2017, Trump signed Executive Order 13801, Industry-Recognized Apprenticeship Programs (IRAPs). The policy allowed “trade and industry groups, companies, non-profit organizations, unions, and joint labor-management organizations” to create their own apprenticeship programs that would help workers obtain the skills that the economy needed but that universities are not providing, or are providing at a cost that is unaffordable for many Americans. The Trump order allowed industries (and unions) to develop their own programs, within regulations but independent of government control.
By 【Financial Team – 小海星Starfish】
News Collection: 文罡、Totoro、Sharon G