Core Insights - The report by Thomas Hempel from Allianz Investment indicates that U.S. concerns over tariffs impacting the domestic economy may assist the EU in avoiding high import duties [1] - President Trump has pledged to impose a 30% tariff on EU goods starting August 1, creating a limited timeframe for both parties to negotiate an agreement [1] - Hempel notes that the potential rise in prices due to tariffs could enhance the EU's negotiating position [1] Economic Implications - The implementation of tariffs is expected to quickly reflect in U.S. prices, raising inflation concerns [1] - Charles Evans, President of the Chicago Federal Reserve, warned that tariffs are disrupting inflation forecasts and delaying potential interest rate cuts in the U.S. [1]

Group 1 - Japan is experiencing unprecedented pain due to rising rice prices, which have doubled compared to the same period last year, with a 5-kilogram bag averaging 212 RMB [1][2] - The Japanese government is urged to implement effective relief measures and fundamental reforms to correct decades of erroneous policies to stabilize public sentiment [1] - The current inflation rate has exceeded the Bank of Japan's target of 2% for 36 consecutive months, with real wages declining in the first three months of 2025 [1] Group 2 - The average rice price in Japan has increased by 100% since last year, leading to temporary rice shortages despite the activation of national strategic rice reserves [2] - Japan's long-standing policy of encouraging farmers to reduce rice cultivation to support prices is still being upheld by the current Prime Minister, rather than promoting Japan as a global rice export powerhouse [2] - Approximately 25% of Japan's population is engaged in agriculture, which is closely tied to the automotive industry, currently facing significant challenges [2]

Core Viewpoint - The Bank of England is expected to continue lowering interest rates as inflation and wage growth remain high, with a potential drop to 3.5% or lower by 2026 [1] Group 1: Economic Conditions - The Bank of England's Monetary Policy Committee faces a challenging balance due to persistent inflation and high wage levels [1] - Global trade issues may exert downward pressure on economic growth and inflation [1] Group 2: Interest Rate Projections - It is anticipated that as price and wage inflation further ease, the Bank of England will continue to lower interest rates [1] - The forecast suggests a reduction in interest rates to 3.5% or lower by the year 2026 [1]

Production Sector - The coke oven operating rate increased to 73.01%, up 0.39% from the previous week[7] - The high furnace operating rate rose to 83.3%, a slight increase of 0.15%[7] - The PTA operating rate decreased to 77.57%, down 2.91% from the previous week[7] Consumption Sector - Weekly box office revenue reached 46,200,000 CNY, a significant increase of 125.1% compared to the previous week[7] - Daily average retail sales of passenger cars decreased to 67,404.15 units, down 3.0% from the previous week[7] - Daily average wholesale sales of passenger cars fell to 81,192.05 units, a decline of 3.1%[7] Real Estate and Infrastructure - The transaction area of commercial housing in 30 major cities dropped to 146.05 million square meters, down 12.65% from the previous week[7] - The land premium rate in 100 major cities decreased to 4.24%, down 8.34% from the previous week[7] - Excavator sales increased to 19,517 units, a rise of 67.7% compared to the previous month[7] Trade and Inflation - The Shanghai Export Container Freight Index (SCFI) rose to 1,394.68, an increase of 0.14%[8] - The average wholesale price of pork was 20.79 CNY/kg, down 0.19% from the previous week[8] - The Consumer Price Index (CPI) for agricultural products showed a decline, indicating weak price performance[8] Transportation - The Beijing subway passenger volume decreased to 878.62 million trips, down 12.5% from the previous week[8] - The number of domestic flights increased to 12,526.57, up 0.45% from the previous week[8] - The China Road Logistics Price Index remained stable at 1,048.96, a slight increase of 0.36%[8]

Investment Rating - The report does not explicitly provide an investment rating for the industry [1]. Core Insights - The production sector shows an overall improvement compared to the same period last year, with various operational rates indicating a positive trend [11]. - The consumption sector is experiencing a seasonal decline in box office revenues post-Spring Festival, while passenger car sales remain at a high level [17]. - The real estate and infrastructure sector is witnessing a high level of second-hand housing sales, indicating strong market activity [20]. - Recent data shows a significant recovery in infrastructure-related high-frequency data following the resumption of work after the holiday [22]. - The import and export sector indicates a divergence between domestic and international freight rates [26]. - Consumer Price Index (CPI) shows a weakening trend in agricultural and pork prices, while Producer Price Index (PPI) reflects a rebound in domestic and international commodity prices [30][32]. - The transportation sector is experiencing a seasonal increase in subway ridership in major cities post-holiday, while flight operations show a seasonal decline [36][38]. Summary by Sections Production - The operational rates for various sectors, including steel and tire production, are showing positive trends compared to previous periods [11][13]. Consumption - The box office revenue has decreased significantly, with a drop of 33.5 million yuan, while passenger car sales remain robust [17]. Real Estate and Infrastructure - The transaction area for new homes in 30 major cities increased to 167.74 million square meters, up from 149.91 million square meters, reflecting a 17.83% increase [20]. - The land premium rate in 100 major cities rose to 22.59%, up from 8.75%, indicating increased competition for land [22]. Import and Export - The Shanghai export container freight index decreased to 1,319.34, down from 1,436.30, while the Baltic Dry Index increased to 1,669.00, up from 1,400.00 [26]. Price Inflation - The average wholesale price of pork is 20.79 yuan per kilogram, slightly down from 20.81 yuan, while the agricultural product wholesale price index shows minimal change [30]. Transportation - Subway ridership in Beijing decreased to 755.48 million trips, while Guangzhou saw an increase to 941.91 million trips, indicating varied recovery rates across cities [36][38].