Global Market Financial Weekly Report：
(February 2025, Week 1)
Escalating geopolitical tensions, market volatility, and shifting monetary policy directions marked the first week of February 2025. Key events included the US-China tariff war, China’s DeepSeek AI challenging US tech dominance, and the Bank of England cutting interest rates.
Citation: BBC News、NASDAQ News
Escalation of US Tariff Policies
Tariff Imposition
The US imposed a 10% tariff on all Chinese imports and threatened a 25% tariff on Canadian goods, leading to retaliatory measures.
Supply Chain Disruptions
Concerns have heightened over supply chain disruptions and inflationary pressures across multiple industries, including technology, automotive, and agriculture.
Economic Consequences
Economists warn that these tariffs will likely lead to higher consumer prices and reduced corporate profits.
Bank of England Cuts Interest Rates
Rate Cut
The UK central bank lowered interest rates to 4.5% amid economic stagnation, signaling concerns over slow growth and inflationary pressures.
Economic Outlook
The decision may provide short-term relief for borrowers but raises questions about the broader economic outlook, particularly with inflation expected to rise.
Projected Growth
The UK economy is projected to grow by only 0.75% in 2025, significantly lower than initial forecasts.
DeepSeek AI Challenges US Dominance
1
AI Innovation
Chinese AI startup DeepSeek showcased an advanced AI model at a fraction of OpenAI’s cost.
2
Market Impact
This caused volatility in US tech stocks, particularly impacting Nvidia, highlighting growing AI competition.
3
Strategic Objectives
China’s push for AI dominance aligns with reducing reliance on Western technologies and enhancing its digital infrastructure.
USAID Shutdown Sparks Backlash

1

Abrupt Closure
The Trump administration’s decision to shut down USAID raised global concerns over the future of US foreign aid and humanitarian programs.

2

Humanitarian Impact
The closure affects aid programs in Africa, Ukraine, and conflict zones worldwide, potentially exacerbating humanitarian crises.

3

Global Standing
Lawmakers and humanitarian organizations argue that the move undermines America’s global standing and weakens its ability to project soft power.
Global AI Power Struggle at Paris Summit

1

1

AI Leadership
The AI summit in Paris saw China and the US competing for AI leadership.

2

2

Ethical Governance
Discussions centered around ethical AI governance and data privacy.

3

3

Strategic Alliances
The geopolitical competition involves regulatory frameworks and strategic alliances.
US-China Trade War Intensifies: Long-Term Consequences
The US government imposed new tariffs on Chinese imports, citing national security and economic concerns. Beijing responded with tariffs on US coal, crude oil, and agricultural equipment, escalating trade tensions further. The new measures could have long-term consequences for global trade, with businesses forced to adjust supply chains and explore alternative markets.
Some multinational companies, particularly those in the tech and manufacturing sectors, may be compelled to shift production outside of China to mitigate the impact of tariffs. Additionally, the prospect of further retaliatory measures from Beijing could destabilize investor confidence, potentially leading to stock market volatility in the coming months.
Bank of England’s Interest Rate Cut: Economic Implications
In response to sluggish growth, the UK central bank lowered interest rates from 4.75% to 4.5%. While this move may alleviate borrowing costs for consumers, it signals deeper concerns over inflation, which is expected to rise due to higher energy and commodity prices. The UK economy is projected to grow by only 0.75% in 2025, significantly lower than initial forecasts.
Despite the rate cut, economic uncertainty persists. Business investment remains subdued, and wage growth continues to lag behind inflation, limiting consumer purchasing power. Moreover, Brexit-related trade disruptions continue to affect exports, further complicating the UK’s recovery efforts. Analysts are closely watching fiscal policy developments to gauge whether additional stimulus measures will be necessary.
China’s DeepSeek AI Disrupts US Tech Markets: Regulatory Concerns
DeepSeek, a Chinese AI firm, demonstrated a powerful AI model that rivals OpenAI’s offerings at a fraction of the cost. This innovation triggered a sell-off in US tech stocks, with Nvidia losing 17% of its market value. The development highlights growing AI competition between China and the US, prompting regulatory concerns over Chinese AI expansion in global markets.
China’s push for AI dominance aligns with its broader strategic objectives, including reducing reliance on Western technologies and enhancing its digital infrastructure. The rapid advancements in Chinese AI capabilities raise questions about global governance frameworks, intellectual property protection, and cybersecurity. As AI continues to reshape industries, the geopolitical landscape surrounding its development and deployment is expected to become increasingly complex.
Trump Administration’s USAID Shutdown: Loss of Influence
The Trump administration’s decision to shut down USAID led to widespread criticism, with concerns over the loss of US influence in global humanitarian efforts. The closure affects aid programs in Africa, Ukraine, and conflict zones worldwide, potentially exacerbating humanitarian crises.
Lawmakers and humanitarian organizations argue that the move undermines America’s global standing and weakens its ability to project soft power. The restructuring of USAID is seen as part of Trump’s broader “America First” agenda, prioritizing domestic spending over international commitments. However, the long-term impact of this decision remains uncertain, particularly as other global powers, including China and the European Union, seek to fill the void left by the US withdrawal from foreign aid initiatives.
AI Leadership Battle at the Paris Summit: Ethical AI Governance
The global AI summit in Paris became a focal point for discussions on technological leadership. With China’s DeepSeek challenging US dominance, the summit saw key figures like OpenAI CEO Sam Altman and Google’s Sundar Pichai defending the US's position. The EU and India also signaled their ambitions to shape AI regulations and security policies.
Discussions at the summit centered around ethical AI governance, data privacy, and the potential risks associated with the rapid deployment of AI-driven systems. The geopolitical competition in AI is no longer just about technological superiority; it also involves regulatory frameworks, strategic alliances, and national security considerations.
Stock Market Performance: Mixed Signals
0.36%
S&P 500
Rose 0.36%
-0.28%
Dow Jones
Declined 0.28%
0.54%
Nasdaq 100
Gained 0.54%
Bond Market Trends: Investor Uncertainty
Foreign Exchange & Commodities: Key Movements
US Dollar
Strengthened
Euro
Weakened
Brent Crude
Traded near $80 per barrel
Gold
Held steady at $2,030 per ounce
Conclusion: Navigating the Evolving Financial Landscape
The first week of February 2025 was marked by escalating geopolitical tensions, market volatility, and shifting monetary policy directions. The US-China tariff war remains a dominant theme, influencing corporate earnings, supply chain decisions, and global economic stability. The AI sector is also at a critical juncture, with China’s DeepSeek emerging as a formidable competitor to US firms, reshaping market dynamics in the tech industry.
European markets showed resilience, particularly as expectations of an ECB rate cut bolstered investor sentiment. Meanwhile, the Bank of England’s decision to lower interest rates highlights the fragile state of the UK economy. Investors will continue monitoring central bank policies, trade negotiations, and corporate earnings to navigate the evolving financial landscape in the weeks ahead.