Morning News

# English Translation

Source: Wall Street News

## Market Overview

Technology stocks continued to propel U.S. equities higher, with the three major U.S. stock indexes closing higher for the second consecutive session. The Dow Jones Industrial Average set new all-time closing highs for two straight days. Among the "Magnificent Seven" tech giants, Microsoft rose more than 3%, NVIDIA gained 2.5%, while Apple fell over 1%. The semiconductor index climbed more than 1%, outperforming the broader market, with AMD and Broadcom surging over 3% each. In the AI - related stock sector, AppLovin jumped 13% after CapitalWatch, the institution that had questioned it of money laundering, issued an apology. Oracle rose nearly 9.7%. Hims & Hers, sued by Novo Nordisk for producing generic drugs, plummeted 16%, while Novo Nordisk's European shares advanced more than 5%. The pan - European stock index closed at a record high.

Markets focused on the resignation pressure facing UK Prime Minister Keir Starmer, and the 10 - year UK gilt yield once rose by more than 8 basis points. The U.S. Dollar Index fell for the second consecutive session, hitting an intraday low in a week. After Sanae Takaichi was elected, Japanese officials warned that they would closely monitor exchange rate trends. The Japanese Yen reversed its six - day losing streak; after touching a two - week low intraday, it once rose more than 1%. The offshore Renminbi broke through 6.92 intraday for the first time in nearly three years. Bitcoin dropped more than 6% from its daily high intraday, falling below $69,000, but later turned slightly higher.

Metals and crude oil rebounded for two consecutive days. Crude oil turned higher after falling 1.5% intraday. Gold rose more than 2% intraday, breaking through $5,000, with gold futures closing at a more than one - week high. Silver futures jumped nearly 9% intraday. LME Tin soared more than 5%, and LME Copper rose more than 1%.

During the Asian trading session, the ChiNext Index climbed 3%. AI application and CPO stocks skyrocketed, and the photovoltaic sector saw a wave of limit - up moves. The Hang Seng Tech Index rose 1%. Montage Technology soared over 60% on its IPO debut.

## Key News

### China

General Secretary of the Communist Party of China Central Committee: Self - reliance and self - improvement in science and technology are crucial for building a great modern socialist country.

### Overseas

Bethlehem stated that the Federal Reserve may not shrink its balance sheet rapidly. Reports indicated that after Kevin Warsh took office, the Federal Reserve is set to reach an agreement with the U.S. Treasury Department for the first time in 75 years. This agreement will clarify the balance sheet size to coordinate with bond issuance, shift bond holdings from short - term to long - term, and Bethlehem supports restricting the use of quantitative easing (QE).

Ahead of the critical non - farm payrolls report, the White House issued a precautionary note. Hassett implied that employment growth would be lower than expected.

Japanese Prime Minister Sanae Takaichi announced that no deficit - financing bonds will be issued to fund consumption tax cuts.

Key aides of the UK government have been deeply involved in the Jeffrey Epstein scandal, and cabinet ministers collectively turned against Keir Starmer, pressuring him to resign. UK stocks, bonds and the pound all fell intraday at one point.

Sam Altman said that ChatGPT's growth "has recovered to over 10%" and plans to launch a new model this week.

Alphabet raised $20 billion through U.S. dollar - denominated bonds, up from the originally planned $15 billion. It also issued 100 - year pound - denominated bonds, a first for a tech company in nearly 30 years.

The European Union filed an antitrust lawsuit against Meta, intending to force WhatsApp to open up and strictly prohibit it from blocking third - party AI competitors.

SpaceX made a major shift. Elon Musk changed his stance, stating that Mars is too far away and the Moon is more accessible. He plans to build a "Moon City" within ten years.

Novo Nordisk's weight - loss drug advertisement was deemed "false or misleading" by the FDA, and its stock price hit a daily low. Novo Nordisk sued Hims & Hers for producing a generic version of Wegovy. Under regulatory pressure, Hims & Hers revoked its plan for low - priced generic weight - loss drugs, and its stock price once plunged nearly 30%.

## Market Closing Quotes

### U.S. and European Stock Markets

- S&P 500: Rose 0.47% to close at 6,964.82 points.

- Dow Jones Industrial Average: Inched up 0.04% to close at 50,135.87 points.

- Nasdaq Composite Index: Advanced 0.90% to close at 23,238.67 points.

- STOXX 600 Index: Gained 0.70% to close at 621.41 points, a record high.

### A - Share Market

- Shanghai Composite Index: Rose 1.41% to close at 4,123.09 points.

- Shenzhen Component Index: Climbed 2.17% to close at 14,208.44 points.

- ChiNext Index: Jumped 2.98% to close at 3,332.77 points.

### Bond Market

By the end of the bond market session, the yield on the 10 - year U.S. Treasury note was around 4.20%, down about 1 basis point on the day. The yield on the 2 - year U.S. Treasury note was approximately 3.49%, also down about 1 basis point intraday.

### Commodities

- WTI Crude Oil Futures (March): Rose 1.27% to settle at $64.36 per barrel.

- Brent Crude Oil Futures (April): Gained 1.45% to close at $69.04 per barrel.

- COMEX Gold Futures (April): Advanced 2% to settle at $5,079.4 per ounce.

- COMEX Silver Futures (March): Surged 6.94% to close at $82.234 per ounce.

- LME Copper Futures: Rose 1.4% to close at $13,176 per ton.

- LME Tin Futures: Jumped about 5.1% to close at $49,098 per ton.

# Detailed Key News

## Global Highlights

### China

General Secretary of the Communist Party of China Central Committee emphasized that self - reliance and self - improvement in science and technology are crucial for building a great modern socialist country. He stated that to build such a country, self - reliance and self - improvement in science and technology hold the key. We must fully leverage the advantage of our country in pooling resources to accomplish major undertakings, integrate various high - quality factors to tackle key problems, accelerate the resolution of prominent weak links, and achieve our strategic goals.

### Overseas

Bethlehem: The Federal Reserve May Not Shrink Its Balance Sheet Rapidly. U.S. Treasury Secretary Bethlehem noted that even with Kevin Warsh as the Federal Reserve Chair, the balance sheet reduction will not advance rapidly. The decision - making process may require an assessment period of up to one year. She also stressed that if the Fed shifts to an "ample reserves" framework, it will instead need to maintain the existing size of its large - scale balance sheet. This indicates that under the Trump administration's goal of lowering mortgage rates, the Federal Reserve will exercise prudence, prioritizing the maintenance of financial stability over aggressive tightening.

Far - Reaching Implications as Warsh Endorses! Will the Federal Reserve Reach Another Agreement with the U.S. Treasury Department After 75 Years? It is reported that the core elements of the agreement include clarifying the size of the Federal Reserve's balance sheet to align with the Treasury's bond issuance plans, shifting holdings from long - term bonds to short - term Treasury bills, and Treasury Secretary Bethlehem supporting restrictions on the use of Quantitative Easing (QE). This move could impact the $30 trillion Treasury market, yet it has sparked market concerns regarding the loss of central bank independence, rising inflation expectations, and a decline in the U.S. dollar's appeal.

White House Issues Precautionary Note Ahead of Critical Non - Farm Payrolls Report: Hassett Hints at Lower - Than - Expected Job Growth. Hassett attributed this employment growth trend to slowing population growth and a "surge" in productivity. He pointed out that when enterprises achieve higher output through technological progress and efficiency improvements, the demand for new labor naturally decreases. Meanwhile, the slowing population growth in the United States has further limited the room for expanding the labor supply.

Japanese Prime Minister Sanae Takaichi: No Deficit - Financing Bonds to Fund Consumption Tax Cuts. After the general election, Japanese Prime Minister Sanae Takaichi announced that she will promote a nationwide food tax reduction and made a clear commitment not to issue deficit - financing bonds. She emphasized that funding will be raised through non - tax revenues and subsidy reviews, aiming to extricate the country from austerity through a "responsible and proactive fiscal policy". This initiative seeks to balance economic stimulus and fiscal sustainability. Additionally, she plans to visit the United States next month for talks with Trump to consolidate the alliance and promote investment in cutting - edge technologies.

Takaichi Concedes, Markets Choose to Trust Temporarily—Japanese Stocks and Yen Both Rise! Despite Takaichi's commitment not to issue deficit bonds to fund tax cuts and her emphasis on fiscal discipline, against the backdrop of high debt, inflationary pressures, and exchange rate constraints, the fiscal and monetary policy space has narrowed. Any expansion of spending without clear funding sources is likely to quickly trigger negative reactions in the bond and exchange rate markets.

UK Stocks, Bonds, and Pound All Fall Intraday! Key Aides Entangled in Epstein Scandal, Cabinet Ministers Revolt to Oust Starmer. Due to the appointment of Peter Mandelson, who is implicated in the Epstein case, as the U.S. Ambassador, key members of Starmer's team resigned one after another within 24 hours. Cabinet ministers privately demanded his resignation or threatened to step down themselves, stating that Starmer's chances of surviving the week are "fifty - fifty". The pound against the euro hit its lowest level since January 22 at one point, and the 10 - year UK gilt yield approached its highest level since last November. Hedge funds are heavily betting on further weakness of the pound through the options market, with the trading volume of euro - sterling options reaching a new high since 2019.

Altman: ChatGPT Growth "Has Recovered to Over 10%", New Model Launch Planned This Week. Altman told employees on the internal Slack platform that ChatGPT has "regained monthly growth of over 10%". The number of users of the company's coding product Codex has increased by approximately 50% compared with a week ago, directly competing with Anthropic's Claude Code.

Alphabet Raises $20 Billion in Dollar - Denominated Bonds (Up from $15 Billion Initially), Issues 100 - Year Pound - Denominated Bonds—A First for a Tech Company in Nearly 30 Years. Alphabet plans to issue multi - tenor bonds to support the huge capital demands of its AI infrastructure. This financing comes at a time when tech giants are expected to invest over $650 billion in AI expansion this year, and the industry is intensively securing long - term capital. It marks Alphabet's first bond issuance in the Swiss and UK markets. The pound - denominated bonds cover tenors ranging from 3 to 100 years, making it the first tech company to issue 100 - year bonds since Motorola in 1997. The UK market has become the preferred destination for long - term financing due to strong demand from pension funds and insurers.

EU Files Antitrust Lawsuit Against Meta: Plans to Force WhatsApp to Open Up, Strictly Prohibit Blocking Third - Party AI Competitors. The European Union has accused Meta of using its dominant market position to block AI competition by restricting rivals' access to the WhatsApp API. Regulators intend to impose mandatory interim measures, requiring Meta to keep the platform open during the investigation to prevent permanent damage to the market structure. Meta countered that the intervention lacks a basis. This move shows that the EU is taking a tough antitrust stance to define regulatory boundaries in the AI sector and curb tech giants from stifling competition through their platform advantages.

SpaceX Makes a Major Shift! Musk Changes Stance: Mars Is Too Distant, Moon Is More Accessible, Plans to Build "Moon City" Within Ten Years. Musk has made a significant strategic U - turn, shifting from "heading straight for Mars" to landing on the Moon by 2027.

Novo Nordisk's Weight - Loss Drug Ad Deemed "False or Misleading" by FDA. Novo Nordisk's U.S. - listed shares, which had risen more than 7% intraday, saw their gains narrow to less than 3% at one point. The drug was positioned as a solution to broader life challenges rather than a treatment for specific diseases, with all such promotions lacking data support.

Novo Nordisk also announced on Monday that it is suing telemedicine company Hims & Hers for producing a generic version of Wegovy, filing its first patent infringement lawsuit over generic semaglutide. Hims' stock price once plummeted nearly 29%. Under regulatory pressure, Hims & Hers has withdrawn its plan for low - priced generic weight - loss drugs, alleviating market concerns about GLP - 1 drugs being replaced by low - cost alternatives.

## Selected Insights

What Does Seedance 2.0 Mean for AI Applications? Bank of China Securities believes that focusing on key capabilities such as multimodal reference, shot consistency, audio - video synchronization, and automatic storyboarding, Seedance 2.0 has significantly enhanced the controllability and stability of AI video generation, driving video generation from a "gacha - style attempt" to large - scale production. The usable generation rate has increased to over 90%, the cost and cycle of video production have been greatly reduced, accelerating the application of short dramas, comic dramas, e - commerce, and other fields. Against the backdrop of low market sentiment, Seedance 2.0 is expected to serve as a crucial catalyst for the sentiment recovery of AI multimodal applications and the industrial chain.

Wide Awake at 3 AM: Seedance 2.0 Shows AI's Acceleration in "Compressing" Real - World Workflows. For the first time in a year, I was so shocked by AI advancements in the middle of the night that I couldn't sleep. I firmly believe that AI's transformation of the world is accelerating.

The Biggest Misconception About "Quantum Computing": It's Still "Too Early". The market mistakenly assumes that quantum computing is "a matter for the next decade". However, Barclays has warned that the industry will witness a decisive moment of "quantum advantage" in 2026/2027. A more critical logic is that quantum computing will not replace CPUs and GPUs of classical computing power. Instead, due to its extremely high "error correction" requirements, each quantum computer will need a massive number of GPUs for support. Quantum technology is expected to create an additional market of over $100 billion for chip giants like NVIDIA.

Software Stock Premiums Drop to Post - Financial Crisis Lows, Goldman Sachs: Don't Rush, They Haven't Bottomed Out Yet! Goldman Sachs stated that the real market concern is not a collapse in short - term profits, but whether the medium - and long - term profit structure will face systemic compression. The current correction in software stocks is more like the first half of a revaluation process. Profit margins remain at a cyclical high, consensus EPS has not yet reflected potential competitive impacts, and the market mainly absorbs uncertainties through valuation compression. Sustainable stock price rebounds often occur after profit expectations hit bottom and start to recover.

Citi: U.S. Software Stock Crisis Persists, AI Impact May Erase One - Third of Terminal Value. Citi pointed out that the sharp decline in the software sector stems from the market's revaluation of terminal value due to "AI disruption". Stock prices have already reflected a 10% - 20% compression in terminal price - to - earnings ratios. If the compression reaches 30%, stock prices may fall back to the 2023 lows. There may be short - term rebounds, but the overall sector rally has ended, and the industry will enter a phase of severe individual stock differentiation, requiring the identification of AI integration capabilities.

Is the Memory Shortage Still Underestimated? Goldman Sachs: Significantly Raises Supply - Demand Gap Expectations, Price Increases Have Limited Impact on Demand! The Most Severe Memory Chip Shortage in History Is Approaching! Goldman Sachs has raised its expectations for tight supply and demand, warning that DRAM will see the largest gap in 15 years in 2026, and NAND shortages will hit a record high. The surge in demand for AI servers accounts for over half of DRAM supply. Analysts have warned that even in an extreme scenario where demand for smartphones and PCs drops sharply, strong server demand can still absorb the impact and maintain a tight market pattern. Surprisingly, while releasing this bullish report on the memory industry, Goldman Sachs downgraded Micron's rating to Neutral with a target price of $235, citing that "most of the positive factors have been priced in".

Foreign Investors' Actions Contradict Their Words! "Complain During the Day, Buy Fiercely at Night" in the U.S.—How Long Can This "Hot Money" Boom Last? From tariff policies to ambitions regarding Greenland, and obvious disregard for the existing global order, polls show that global favorability toward the United States is plummeting. Nevertheless, despite deteriorating opinions, capital is pouring in at an unprecedented rate. Last year, foreign investors injected approximately $1.6 trillion into U.S. financial assets, with nearly $700 billion flowing into the stock market, both setting historical records. From Singapore to Seoul, it has become common for investors to stay up late to use U.S. stock after - hours trading platforms. The proportion of U.S. stocks held by foreign institutions has risen to a record 15%, half of which has increased compared with ten years ago.

Will Tariff Transmission and the "January Effect" Push Up U.S. January CPI? Wall Street expects that due to the "January Effect" and tariff transmission, the month - on - month U.S. core CPI may rebound to around 0.3% in January, with commodity prices rising driven by price adjustments and tariffs. The key lies in whether service - sector inflation eases. If it is weaker than seasonal levels, it may ease the Federal Reserve's concerns about inflation stickiness. Although short - term data is subject to interference and upside risks, many institutions believe that if inflation remains below expectations at the beginning of the year, it will strengthen the case for interest rate cuts. In the long run, inflation is expected to peak in spring and then gradually decline.

# Domestic Macro

The Ministry of Commerce held a symposium with automakers: optimize the implementation of the auto trade‑in program, launch pilot reforms for auto circulation and consumption, and improve industry governance.

Sheng Qiuping noted that in 2026, the Ministry of Commerce, together with relevant departments, will continue to combine policy support with reform and innovation, integrate existing and new policies, refine the auto trade‑in scheme, launch pilot reforms for auto distribution and consumption, improve regulatory systems, and take multiple measures to expand and upgrade auto consumption.

Seven ministries: issued administrative guidance on labor employment for 16 platforms including Meituan, Taobao Flash Purchase, JD Shisong, Shansong, SF Citywide, Hema, and Didi.

The meeting required relevant companies to fully fulfill their primary responsibilities as employers, continuously improve labor management, and effectively protect the rights and interests of workers in new forms of employment.

# Domestic Companies

Zijin Mining raises gold output target: aims for 130–140 tons by 2028, an increase of nearly 30%.

Zijin Mining has raised its 2028 mined gold production target by nearly 30%, targeting the top three globally. It also significantly lifted its lithium capacity plan: 120,000 tons of lithium carbonate equivalent in 2026, and 270,000–320,000 tons by 2028.

Preliminary financial estimates show the company expects 2025 revenue of about 345 billion yuan (up ~28% from 2022) and net profit attributable to owners of 51–52 billion yuan (up ~155%–160%).

# Overseas Companies

Microsoft downgraded twice in less than a week over AI‑related risks.

Melius Research cut its rating on Microsoft, citing concerns over capital expenditure and its Copilot‑branded products.

Stifel made a similar downgrade late last week, with analysts flagging worries about growth momentum in Microsoft’s Azure cloud business.

# Industries & Concepts

## 1. Robotics

China’s first national standard for electric vehicle charging robots — *Robots — Performance criteria and test methods — Part 8: Electric vehicle charging robots* — has officially begun development, according to CNR.

Led by State Grid Tianjin Electric Power Research Institute, the standard will fill a testing gap in China. It marks major progress in the standardization of intelligent EV charging and will provide a “Chinese solution” for the smart upgrade of global EV charging infrastructure.

**Comment**:

As the first national standard for EV charging robots, it covers two strategic emerging industries: EVs and robotics.

With the growing fleet of new energy vehicles, insufficient charging infrastructure has become a bottleneck. Charging robots solve the inflexibility and complexity of traditional charging piles.

The industry is moving from technical verification to large‑scale commercialization. With the spread of autonomous driving and higher NEV penetration, the charging robot sector is poised for explosive growth.

## 2. Theater & Drama Industry

Five departments including the Publicity Department of the CPC Central Committee jointly issued the **Three‑Year Action Plan for Revitalizing Theater (2026–2028)**.

The plan aims to boost innovation and creation, significantly improve production quality, launch outstanding plays, and expand communication channels.

It supports integrating technology into drama creation and communication, encouraging troupes to use the internet, AI and other new tools, and standardizing online performances and live streams.

**Comment**:

The drama industry is shifting from a “box office economy” to an “ecological economy”.

Supported by policies, technology and cultural tourism integration, the market is growing steadily. China’s drama industry is projected to exceed 80 billion yuan in 2025, with annual growth above 10%.

Young white‑collar workers, cultural enthusiasts, students and tourists have become major consumers.

Technology is reshaping the industry. Online‑offline integration will deepen, forming a new “Internet + drama” ecosystem. VR, AR and other technologies will enrich stage performance and audience experience.

## 3. Energy Storage

The world’s first and most powerful single‑unit compressed air energy storage compressor, developed by the Institute of Engineering Thermophysics of the Chinese Academy of Sciences and Zhongchu Guoneng (Beijing) Technology Co., Ltd., passed third‑party testing accredited by CNAS.

The compressor meets international leading standards, marking a major breakthrough in China’s compressed air energy storage technology.

With full independent intellectual property rights, its single‑unit power has increased by more than 100%, unit costs have dropped significantly, and it features high efficiency, high pressure and a wide operating range.

**Comment**:

As a key support for new power systems, compressed air energy storage is rapidly moving from demonstration to large‑scale application.

With technological progress and falling costs, it will play an increasingly important role in renewable energy consumption, grid flexibility and the “dual carbon” goals. It is expected to become a mainstream long‑duration storage route alongside pumped hydro storage.

## 4. Commercial Aerospace

According to the China Maritime Safety Administration, Hainan Notice to Mariners 18/26: rocket sea recovery operations will be conducted in a designated area of the South China Sea from 00:00 on February 10 to 24:00 on February 12, 2026.

**Comment**:

Soochow Securities noted that the successful maiden flight of Zhuque‑3 in late 2025 marked that China’s commercial rockets have officially gained reliable launch capacity.

Intensive maiden flights and recovery tests of new high‑capacity rockets will rapidly boost production capacity and launch numbers in 2026, supporting satellite internet, cislunar economy, space tourism and more.

Policies strongly support the sector: the China National Space Administration (CNSA) released a high‑quality development action plan, established a Commercial Space Administration Department, and the STAR Market introduced tailored listing rules for commercial rocket firms.

Six companies including LandSpace and Spacety are advancing IPOs. Global satellite deployment is accelerating, bringing opportunities to the entire commercial aerospace chain.

## 5. Rare Earths

Data from Baichuan Yingfu shows rare earth prices are rising at an accelerated pace.

On February 9, praseodymium‑neodymium oxide and praseodymium‑neodymium metal surged 7.59% and 6.27% respectively.

Praseodymium‑neodymium oxide has risen a cumulative 34% so far this year.

**Comment**:

On the supply side, praseodymium‑neodymium metal output fell month‑on‑month in January; tight raw material supply led to production cuts in some regions, and output may decline further in February, supporting higher prices.

The strategic importance of global rare earth resources continues to rise. Supply is constrained by quotas and regulations.

Demand is driven by new energy vehicles, humanoid robots, the low‑altitude economy and other emerging sectors.

Institutions expect the global rare earth supply‑demand gap to keep widening from 2026, improving profitability across the industrial chain.

# Upcoming Key News Today

- Livestream by Lei Jun, Chairman of Xiaomi Group.

- Hong Kong IPO of Axera Semiconductor, expected to list on February 10.

- EIA Monthly Short‑Term Energy Outlook.

- U.S. December retail sales data.

- Speeches by Cleveland Fed President Harker and Dallas Fed President Logan.

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# Risk Warning & Disclaimer

The market is subject to risks, and investment requires caution.

This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation or needs of individual users.

Users should consider whether any opinions, views or conclusions in this article suit their particular circumstances.

Any investment based on this article is at your own risk.