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The article discusses the attitudes of frustration and hopelessness among youth in Hong Kong, China amid demonstrations triggered by a government proposal that would allow China to extradite individuals accused of crimes, possibly including the right for universal suffrage. Topics include Hong Kong's status as the world's least affordable real estate market resulting from conglomerates of real estate developers who control many aspects of the economy, and the government's inability to address social issues.

The article reports on the Covid zero-tolerance policy in Hong Kong with tighter rules and border restrictions following an omicron outbreak despite implementation of quarantines and contract tracing. The restrictions include social distancing, 14-days quarantine for all visitors and ban of flights from high-risk destinations. The economic damage caused by Covid and the low probability to alter the Covid-zero strategy in Hong Kong given the surge in infection are discussed.

Small and medium businesses employ about 45% of the workforce in Hong Kong's private sector, making them crucial to the economy. (Bloomberg) -- Sparks cascade into the night sky as welders work on two office towers arising in Hong Kong's waterfront banking district. [Extracted from the article]

The rate moves in lockstep with the Fed's rate since the Hong Kong dollar is pegged to the U.S. currency. (Bloomberg) -- The Hong Kong Monetary Authority raised its benchmark interest rate by 25 basis points, after the U.S. Federal Reserve did the same, saying it wants to maintain stability in the financial system amid heightened market volatility. [Extracted from the article]

(Bloomberg) -- Hong Kong is doubling down on a Covid-Zero strategy that has failed almost everywhere else, battering its economy and threatening its status as an international financial center just as much of the world learns to live with the virus. Hong Kong must adhere to a Covid-Zero policy as any move toward living with the virus will severely damage the city's development and health of its residents, the People's Daily said in a commentary published on Monday. Hong Kong Risks Everything With "Impossible" Covid-Zero Goal. [Extracted from the article]

Hong Kong Risks Everything With "Impossible" Covid-Zero Policy (Bloomberg) -- Hong Kong is doubling down on a Covid-Zero strategy that has failed almost everywhere else, battering its economy and threatening its status as an international financial center just as much of the world learns to live with the virus. Hong Kong must adhere to a Covid-Zero policy as any move toward living with the virus will severely damage the city's development and health of its residents, the People's Daily said in a commentary published on Monday. [Extracted from the article]

(Bloomberg) -- Fitch Ratings Ltd. slashed its economic growth forecast for Hong Kong after the city imposed tough social distancing rules to curb the spread of Covid-19. The ratings company halved its estimate for gross domestic product growth for this year to 1.5% from 3.0%, making the Hong Kong economy one of the worst performers globally. [Extracted from the article]

"The deterioration of COVID-19 conditions led to an immediate contraction of Hong Kong SAR's private sector", Jingyi Pan, Economics Associate Director at IHS Markit, said in a release. (Bloomberg) -- A measure of economic activity in Hong Kong contracted in January for the first time in 11 months as the government imposed new restrictions amid a new wave of Covid-19 infections. [Extracted from the article]

The PBOC is widely expected to cut policy interest rates again in the coming months, including its one-year medium-term lending facility rate and the seven-day reverse repurchase rate, as well as reduce the reserve requirement ratio for lenders. Read More: Hong Kong's Growth Forecasts Cut as Omicron Spreads Money markets have almost fully priced in a 25-basis-point rate hike by the Fed in March and are wagering on a total of four such increases in 2022. [Extracted from the article]

Whether Hong Kong upholds its legal and regulatory standards will be critical, said Douglas Arner, a law professor at the University of Hong Kong and an expert on the city's financial system. (Bloomberg) -- China's overhaul of Hong Kong's political institutions has crushed the pro-democracy movement and fueled warnings of an end to the city's status as an international financial hub. [Extracted from the article]

"If Singapore denies us a re-entry, we'd be screwed", said Ahmed, an English-language teacher who moved to Singapore in December 2019, just as the pandemic was taking hold. (Bloomberg) -- Singapore and Hong Kong, among the world's most open economies, have practically shut their doors for more than a year to keep Covid-19 in check. [Extracted from the article]

(Bloomberg) -- Hong Kong, until recently an oasis of political stability in Asia, is now gripped with unprecedented regulatory and legal uncertainty that threatens its position as one of the world's top financial hubs. Year-to-date, mainland investors have net bought a combined HK$356 billion worth of Hong Kong stocks, a record high compared with the same period in previous years, according to data compiled by Bloomberg. [Extracted from the article]

Here's the latest news and analysis from Bloomberg Economics to help you start the day: U.K. Chancellor of the Exchequer Rishi Sunak is set to unveil a 2 billion-pound ($2.5 billion) program to pay the wages of more than 200,000 young workers as he tries to pull the economy out of a deep slump The threat of U.S. action to undermine Hong Kong's U.S. dollar peg is highly unlikely to become reality given the practical difficulties of pursing such a path, economists say. David Qu writes why the peg is as solid as ever Boris Johnson warned Germany's Angela Merkel that the U.K. is ready to do without a trade deal if the European Union wasn't prepared to compromise Accustomed to crunch time and performing in a crisis, the world's supply chain managers are having something of an extended moment in pandemic recovery mode Christine Lagarde signaled the European Central Bank will keep policy unchanged at its next meeting after its massive emergency stimulus helped calmed markets Fed Vice Chairman Richard Clarida said officials would likely turn to additional forward guidance and asset purchases if the economy needs more aid, as another official warned of the risk from rising Covid infections Bank of England Chief Economist Andy Haldane says the U.K. economy is facing the greatest uncertainty he has seen in his three-decade career "Superstar" cities aren't all they're cracked up to be, especially for Black male college graduates, says a new study from Massachusetts Institute of Technology India's government is running out of options to fund its budget and may soon have to knock on the central bank's door once again for support ©2020 Bloomberg L.P. [Extracted from the article]

(Bloomberg) -- If the markets are any judge, U.S. President Donald Trump's vow of "meaningful" action to strip some of Hong Kong's trade privileges has so far proved underwhelming. China Halts Some U.S. Farm Imports, Threatening Trade Deal Under the U.S.-Hong Kong Policy Act of 1992, the president is empowered to suspend the territory's special trading privileges at any time through an executive order. [Extracted from the article]

The fresh political turmoil engulfing Hong Kong in recent days is reviving worries over capital outflows from one of the world's biggest financial hubs. Capital Controls Unlike mainland China -- where the capital account is tightly controlled -- Hong Kong allows money to flow unrestricted. [Extracted from the article]

(Bloomberg) -- On the ninth floor of a building near Hong Kong's old Kai Tak airport, Kung Fu master Lam Shu-shing teaches the Wing Chun technique to students, something he's been doing since 1978. Tourism to Hong Kong has dried up amid virus-related travel restrictions, and for months before that mainland visitors stayed away because of the political unrest. [Extracted from the article]

Hong Kong was ahead of the world when in February it announced a handout of almost $1,300 to residents suffering from an recession worsened by the coronavirus. But amid a broader economic support plan worth HK$120 billion, the Hong Kong government says the direct payment needs technical and legal work, and that is moving more slowly than the epidemic. [Extracted from the article]

(Bloomberg) -- Hong Kong's government unveiled a budget packed with giveaways including a one-time cash handout that economists said isn't likely to spur growth, as the city struggles to stabilize an economy battered by political unrest and the coronavirus. Kevin Lai, chief economist for Asia excluding Japan at Daiwa Capital Markets, is skeptical as to whether Hong Kong residents will rush to spend a cash windfall. [Extracted from the article]

(Bloomberg) -- Hong Kong's government unveiled a HK$120 billion ($15.4 billion) giveaway budget aimed at jump starting the finance hub's recession-wracked economy. The treasury: Hong Kong expects a record deficit of HK$139.1 billion for the 2020-2021 fiscal year. To contact the reporters on this story: Enda Curran in hong kong at ecurran8@bloomberg.net;Eric Lam in Hong Kong at elam87@bloomberg.net. [Extracted from the article]

(Bloomberg) -- Hong Kong Financial Secretary Paul Chan announced a HK$120 billion ($15.4 billion) relief package, in an effort to shore up economic confidence in a city battered by political unrest and the coronavirus. To contact the reporters on this story: Eric Lam in Hong Kong at elam87@bloomberg.net;Enda Curran in hong kong at ecurran8@bloomberg.net. [Extracted from the article]

While the data were probably affected by the annual Lunar New Year holidays, they also show that whatever dividend was likely from the U.S. and China trade deal has already evaporated. U.K.-EU scenarios | Services, rules would be only slightly better in an FTA than no deal. [Extracted from the article]

(Bloomberg) -- Hong Kong Financial Secretary Paul Chan is set to present the annual budget Wednesday with the city stuck in recession after months of unrest amid more fiscal pressures caused by the coronavirus outbreak. Chan is scheduled to present the budget for the upcoming 2020-2021 fiscal year in the Legislative Council chamber at 11 a.m. in Hong Kong, according to a government release. [Extracted from the article]

(Bloomberg) -- Follow Bloomberg on Telegram for all the investment news and analysis you need. To contact the reporters on this story: Eric Lam in Hong Kong at elam87@bloomberg.net;Cynthia Li in Hong Kong at cli205@bloomberg.net;Enda Curran in hong kong at ecurran8@bloomberg.net. [Extracted from the article]

A port executive we spoke to explained the new uncertainty that is swirling around global trade even with a U.S. and China phase-one agreement. Escape clause | China's promises in its phase-one trade deal to increase purchases from the U.S. will be even tougher to fulfill now that a new virus is hammering demand. [Extracted from the article]

(Bloomberg) -- Hong Kong's government is usually eager to play up the city's resilience in the face of economic calamity, like the bounce-back after the Asian financial crisis and its recovery following the 2003 SARS epidemic. "There are a lot of global investors that want to invest in Chinese stocks and other financial products, and they do it through Hong Kong", said Tommy Wu, senior economist with Oxford Economics in Hong Kong. [Extracted from the article]

In an interview on Thursday, Financial Secretary Paul Chan promised bold spending measures when he unveils the government's budget on Feb. 26. To contact the reporters on this story: Enda Curran in Hong Kong at ecurran8@bloomberg.net;Eric Lam in Hong Kong at elam87@bloomberg.net;Yvonne Man in Hong Kong at yman9@bloomberg.net. [Extracted from the article]

(Bloomberg) -- The International Monetary Fund urged Hong Kong's government to boost spending to support the territory's convulsing economy, citing a range of risks from trade tensions to political unrest. The IMF projects Hong Kong's economy will contract by 1.2% this year before gradually recovering to 1% growth in 2020. [Extracted from the article]

(Bloomberg) -- Is Hong Kong's run as one of the world's most important financial hubs coming to an end? Pauline Loong, a veteran China watcher and managing director at Asia-analytica in Hong Kong. [Extracted from the article]

(Bloomberg) -- After months of political protests and the onset of a recession, Hong Kong's resilient labor market is starting to crack. "Some of these workers may choose not to participate in the labor force after being laid off, given that some of them might have been attracted to work because of the relatively higher wages in recent years in the first place", said Tommy Wu, senior economist with Oxford Economics Ltd. in Hong Kong. [Extracted from the article]

Hong Kong Leaders Accused of Spending "Peanuts" to Save Economy The fiscal stimulus announced by Financial Secretary Paul Chan since the start of protests in June -- HK$19 billion ($2.4 billion) in August followed by about HK$2 billion in October -- amounts to less than 1% of Hong Kong's economy, according to Alicia Garcia Herrero, chief economist for Asia Pacific region with Natixis SA. "Hong Kong is not known for its stimulus spending, in fact the government has often prided itself in maintaining low spending and less intervention", said Mathew Wong, assistant professor at the Education University of Hong Kong. [Extracted from the article]

Hong Kong's economy contracted sharply in the third quarter as it entered a recession, exceeding economists' worst estimates of the damage from nearly five months of protests. The Hong Kong government has announced relief packages this year, but for most struggling businesses the best cure would be an end to the protests -- especially as Hong Kong has little to no influence over the trade war. [Extracted from the article]

Hong Kong's economy contracted sharply in the third quarter as it entered a recession, exceeding economists' worst estimates of the damage from nearly five months of protests. The Hong Kong government has announced relief packages this year, but for most struggling businesses the best cure would be an end to the protests -- especially as Hong Kong has little to no influence over the trade war. [Extracted from the article]

Ming Sing, associate professor in the division of social science at the Hong Kong University of Science and Technology, maintains that the government should shelve the HK$624 billion Lantau Island reclamation project. The disruption of Lam's policy address Wednesday by pro-democracy lawmakers -- which required her to give it via video -- highlights the difficulty in achieving policy consensus in Hong Kong, especially amid a political crisis. To contact the reporters on this story: Eric Lam in Hong Kong at elam87@bloomberg.net;Enda Curran in hong kong at ecurran8@bloomberg.net;Hannah Dormido in Hong Kong at hdormido@bloomberg.net. [Extracted from the article]

H.K. Economy Is Failing. Ming Sing, associate professor in the division of social science at the Hong Kong University of Science and Technology, maintains that the government should shelve the HK$624 billion Lantau Island reclamation project. To contact the reporters on this story: Eric Lam in Hong Kong at elam87@bloomberg.net;Enda Curran in hong kong at ecurran8@bloomberg.net;Hannah Dormido in Hong Kong at hdormido@bloomberg.net. [Extracted from the article]

(Bloomberg) -- There are few people as synonymous with risk analysis in Hong Kong as Steve Vickers. A lot of people love Hong Kong, including myself, but I have to honestly say that these demonstrations have spawned fundamental changes to PRC government attitude to long-established Hong Kong firms such as Cathay Pacific and others. [Extracted from the article]

(Bloomberg) -- It's one of the biggest questions hanging over Hong Kong as anti-government protests head into a 13th week: Will investors pull their money out? To contact the reporters on this story: Alfred Liu in Hong Kong at aliu226@bloomberg.net;Enda Curran in hong kong at ecurran8@bloomberg.net;Tian Chen in Hong Kong at tchen259@bloomberg.net. [Extracted from the article]

(Bloomberg) -- Hong Kong's rolling political turmoil could prove a tipping point for the world economy, Harvard University economist Carmen Reinhart said. Noting an incidence of shocks that have rattled global growth, including the intensifying U.S.-China trade war, Reinhart cited Hong Kong as among her main concerns. [Extracted from the article]

(Bloomberg) -- Protests that began in Hong Kong in June over a bill that would allow extraditions to China have spawned near-daily events that have focused global attention on the city and its relationship with Beijing. The civil disobedience could affect U.S.-China trade-war negotiations, and many people - including White House officials - have wondered if China will mobilize its forces to gain control. [Extracted from the article]

A hit to Hong Kong's status as a financial and trade hub would reverberate around a region already showing increased signs of damage from the tariffs that the U.S. and China are lobbing at each other. Ready to deal | National Security Adviser John Bolton said the U.S. is ready to offer Britain sector-by-sector trade deals to help the country after a no-deal Brexit from the European Union. [Extracted from the article]

The article reports on the impact of anti-government demonstrations and the U.S.-China trade war on the economy of Hong Kong in 2019. The unrest and the trade war have resulted in lower retail sales, reduced real estate prices and a decline in the value of the stock market. According to Rory Green, an economist at TS Lombard, the unrest and the trade war pose fundamental challenges to the status of the city as an international financial center.

The article reports that tensions between China's Hong Kong and the government in Beijing is becoming a global problem. Topics discussed include information on protests in Hong Kong over extradition bill; information on trade negotiation talks between the U.S. and China; and the statement of Secretary of State Michael Pompeo on the abuses against the Uighur community in Xinjiang.

Stock market volatility also expected to impact sentiment Knight Frank LLP said last week that trade tensions and stock market volatility will keep a lid on home prices and values could even dip 5% in the second half. [Extracted from the article]

Carrie Lam speaks at Bloomberg Invest Asia forum in Hong Kong "Last night, he was shouting to the media that things were good", Carrie Lam said of Trump during an interview at the Bloomberg Invest Asia forum in Hong Kong. [Extracted from the article]

Housing market showing signs of broad-based price declines The Federal Reserve's signal that the pace of interest rate hikes this year will be cautious is respite for Hong Kong's economy. That means borrowing costs are expected to push higher in tandem with Fed rate hikes, pressuring a housing market that's already showing signs of strain. [Extracted from the article]

BOE Governor to answer questions from U.K. lawmakers Tuesday The Bank of England governor will take questions about Brexit from lawmakers. AttributionKarl Lester M. Yap: editor primaryEnda Curran: by reporterNasreen Seria: editor responsible. [Extracted from the article]

U.S. tariffs on Chinese goods seen as a threat to Hong Kong Hong Kong economic growth slowed in the second quarter, amid a deepening U.S.-China trade conflict and rising interest rates that are weighing on the outlook. [Extracted from the article]

Hong Kong is the world's most expensive city for expatriates, according to an annual cost of living report produced by consultancy Mercer. AttributionJames Mayger: editor primaryFion Li: editor secondaryEnda Curran: by reporterMalcolm Scott: editor responsible. [Extracted from the article]

"Strong global demand should keep exports growing at a healthy pace over the months ahead, but rising interest rates in Hong Kong are likely to weigh on the domestic economy". To contact the reporters on this story:Enda Curran in Hong Kong at ecurran8@bloomberg.net;Eric Lam in Hong Kong at elam87@bloomberg.net;Alfred Liu in Hong Kong at aliu226@bloomberg.net. [Extracted from the article]

Because Hong Kong's currency is pegged to the dollar, the Asian financial hub effectively imports U.S. monetary policy and adjusts borrowing costs in line with the Fed. "Although interbank rates haven't caught up with the U.S., rate normalization will definitely happen in Hong Kong". [Extracted from the article]

But three Federal Reserve rate increases forecast for this year won't stop prices from climbing, according to analysts at firms including JPMorgan Chase & Co. and Union Bancaire Privee. Even as the Fed raises borrowing costs, an abundance of liquidity flowing into Hong Kong has enabled banks to keep a lid on local rates. [Extracted from the article]