the pandemic rebound and expansion plans. straight to our top story. this conversation is 90 minutes long between xi jinping and joe biden. they were both honest about their views. let's hope so. they are trying to get back on track. this is xi jinping saying these tires should be reset according to state media. this whole conversation was essentially all about lines of communication and indeed, commute occasion would be key. that is what we have. let's get straight to stephen engle. our northern asia correspondent. more and more news dripping out

of this one. >> they have to talk first to resolve their differences and i guess the white house had not been pleased with the lower level discussions that had taken place so far with john kerry. the climate change star of the white house. -- saar of the white house. difference is more than areas where they could cooperate like on climate change. state media picked up the mantelpiece. they talked about u.s. wrongdoings. china is open to dialogue and pragmatic cooperation with the u.s. but the united states and the white house has to meet china halfway. this was following those virtual talks. what is happening now with invited, they were frustrated by the level of progress on those kind of talk. he wanted to see personal

engagement with xi jinping work better. all the deliverables are about the pleasantries. they talked about discussing broad and strategic discussion in areas where their opinions converged and diverged. they discussed everything. this is what state media and television is saying. they had candid and in-depth conversations and they agreed to maintain regular commute occasion. there is a lot of issues. they last talked in february. there were debates on the origins of the core of the virus. there were more discussions about what is happening in hong kong, cybersecurity, you name it. have a long laundry list to go through. least they are talking now, that is good. >> exactly. this is the second conversation between two persons coming at a time where they have been

increasingly adversarial. they will help put relationships back on track. do you think this second conversation will make that big of a difference? >> it is better than having one conversation in your back pocket. at least they are talking. we are trying to get an indication of what the biden white house will be under antony blinken as the secretary of state. again, speaking of the back pocket, they still have those $300 billion worth of tariffs on chinese products from the trump administration as levers in a negotiation with the chinese. they have not removed them. it would not have expected them to remove them in the early days of the biden white house. why give up all your levers off the bat? there is room to negotiate but apparently, according to the chinese side and the u.s. side, xi jinping did not particularly have any asks or requests in the

second conversation on tariffs with the conversation with biden. >> stephen engle in hong kong. thank you for that. now, asian stocks are up as chinese tech rebounded and clarification of beijing's gaming approval came. with more is matthew. some relief there. matthew: some relief. a freeze on new approvals. not only that but it brings everybody back to 2018 when it was nuclear winter for the sector. the sector languished, growth slowed by about 30 percentage points. everyone has been worried about whether we will get another freeze on approvals. that is why the reaction was so sharp and acute when that headline came out. the fact that that has been brought back, it is just a slow

down on the process. that is more in line with what people were expecting already. that is why we are seeing the rebound. >> this present back up to where people are looking at various sectors within china now and whether or not they are invested. there are a few exceptions here. the valuations are very much at the core of things. it is interesting. we had this earlier. talking about the demographic challenges. part of the rig otori moves he said addressed demographics ahead. quite if you look at gaming, you look at what they are doing, they only get about 1% of their gaming revenue from people under 18. for that company and tencent as well, only five or 10% of the revenue from 2018. we have large international businesses.

tencent is close to between 5% of their gaming revenue overseas. high overseas share, they will be all right, it is the smaller developers that will get hit hard by the regulation. >> at the same time, we have the vice premier trying to calm things down, saying that we are committed to market reforms and an open economy as such but the next day you get the regulator coming in again. >> i think the opaqueness, lack of transparency is what is grading the volatility in the markets. we don't know where the end of this is or when the next news article drops or when the next person speaks and it is not like in other countries where there has been an open, formal process. that is why there is so much skittishness among investors. people are worried about the next shoe to drop that we don't know yet.

quite thank you so much for that, matthew. let's look at where markets are right now. asia pre-much shrugging off that fourth day of declines. let's get more with mark. there are concerns about the possible easing of stimulus. >> that is a lively discussion along the market slide team. that is where all the economy stocks are. all the new economy stocks. sophia has a great post on markets this morning, saying there is an index for as a wee companies that has been outperforming for medically in the past few weeks. it does show that one sector in particular of china is doing very well thanks to the government directives. but also, if you look at all the major industries -- indices,

volumes have increased dramatically. we are live across the board whether it is old or new industry sectors. that is good news because volume's have been languishing since the peak of the first quarter. we are seeing a slightly higher move for stocks in the past few weeks, rising volumes, back to very substantial levels. whichever partner -- part of the economy you're representing, much high-volume's on the rising market is a positive all the way around. it looks as though they are trying -- stocks are starting to recapture some of their form on a relative value basis. they underperformed generally against the rest of the world. there could be a decent catcher play in china in the weeks ahead. >> thank you, mark. terminal subscribers can follow all the days trade on our markets live blog on the bloomberg terminal. a company that saw a 10% gain out of the gate, it has given up

most of those. it's find out which one it is with the first word news. >> a bit of relief for the world's largest glove maker. they announced they have been cleared to resume exports to the u.s.. they were slapped with a ban last july on evidence of forced labor practices. they remain committed to the health, safety and well-being of the workers. the stock dropped 48% since last july. oil backtracked as investors phoned in on china's decision to open up crude reserves, signaling it will not shy away from intervening in markets to lower domestic prices. beijing says in released oil from strategic reserves to try to alleviate pressure from rising raw material costs. a u.s. reporting production fell by the most on record due to hurricane ida. robert kaplan and -- they're

selling all of the stockholders by the end of the month amid ethical concerns about their trading activity. the boston fed president released near identical statements after their financial disclosures showed investments in a variety of stocks and other financial instruments. said they will invest the proceeds in diversified index funds or cash. european central banks slow the pacing of his bond buying program. this was insisted to be a recalibration that does not herald a wind down instruments. they are conducting this at a moderately lower pace. citing the economic rebound. officials left rates on hold and did raise the ecb forecast for 2021 growth of 5% and 2.2% speculate. >> what we are doing is recalibrating parts which is the

pandemic emergency purchase program. >> global news, 24 hours a day on air and on bloomberg quicktake. powered by 2700 journalists and analysts in over 120 countries. i am vonnie quinn, this is bloomberg. >> one of asia's biggest budget airlines, indigo joins the conversation about travel and the pandemic recovery a bit later this hour. >> next, speaking exclusively with christian. join us for a look at the chinese biotech space and the counter treatment advancement. keep it here with us, this is bloomberg. ♪

>> we are continuing our coverage of the asian form. the company focused on therapies for treatment of patients with cancer and immunological disorders. >> the ceo is with us in the studio now. give us a sense of what you're working on now and where you are with it in essence. >> thank you for having me. >> yes. we are working on a dozen drug candidates that are in clinical trials around the world. we have been doing that for 20 years. we are covering a broad range of cancers in two key categories. solid tumors and hematological malignancies like lymphoma, leukemia.

our first three drugs have been approved in china, they have been lost, helping patients today and the other seven are in various stages of clinical trials with the next approvals expected over the next couple of years. >> are you taking a different approach to how you deal with cancer? are we anywhere near curing cancer? probably not. are you taking a different approach in terms of how you attack those cancer cells and tumors themselves and others? >> very much. it is a really good question. the whole area of targeted therapies and oncology's have been lost in the last 20 years. it has been driven by the mapping of the human genome and the understanding of the biology of cancer. what are the drivers of the

disease, the genetic drivers of the disease. you can target them and shut down cancer cell proliferation. we are designing small molecule and large molecule therapies that hit these dramatic -- genetic drivers of the disease. historically, therapies that can hit these targets were relatively rudimentary. they would hit the target you were going after but many other targets. that would create a lot of toxicity and side effects. >> bombing the village. >> yes, the shotgun approach as opposed to the laser beam. we do the laser beam. we identify the genetic driver and design a drug that really only hits that driver. that makes the drug more tolerable, it means patients can use it longer. have less side effects and most important, it can be combined with other therapies because cancer is really complicated. you tend to find is in the more complex cancers, you don't just

have one genetic driver, you have multiple things going on that need to be hit by multiple therapies. when you combine dirty therapies , they are intolerable but if you combine clean therapies, they can be tolerable and shut off all the switches that need to be shut off. that is what we do, hit the cancer from multiple angles. >> christian, i want to talk about your angry at a cancer drug. where are you in terms of the approval process in the u.s.? are you looking for any type of partnership to market it in the u.s.? >> yes. this has been submitted for u.s. approval. the end was submitted in april of this year. our producer date which is the date that the u.s. fda has to make a decision by is the end of april year. we are going through all the processes of inspection.

we plan to launch it ourselves in the u.s.. we are building a commercial team. by the end of this year, we will have six to five or 70 people on the ground on the commercial side in the u.s. to launch it. we feel we don't want to just partner it away. we don't want to give it to somebody else to maximize its potential. it is our creation, we are most focused on and we will launch it ourselves. >> we know that chinese biotech companies are increasingly making inroads in the u.s. market. how successful do you think they have been? >> there are only very few chinese biotech's that have attempted to bring their products to the u.s. market.

there are some that are doing it through partnerships but there are very few that are doing it on their own. we are one of those. are they being successful? in general, yes. chinese innovations are making it to the u.s. market. it is early. but what we have to remember is the quality of these chinese innovations is very high. i think china would historically be given a mischaracterization of lower quality innovation. that is not the case in biotech. the quality of chinese scientific talent is world-class. we have really had a world-class team of scientists discovering these drugs that are genuinely designed to be differentiated globally. i think the quality of innovation will hit the u.s. market from chinese biotech and we will surprise everybody because it will be world-class.

>> we saw pfizer, moderna with their vaccines that are based on mrna technology. this came from oncology, did it not? >> it is about the mapping of the human genome. it is understanding the biology of disease and designing therapies that are able to address those diseases. it all comes from the same source which is dna. >> thank you. course still to come, a look at some of the top recommendations across markets, meantime, up for a second day, higher by 7%. we know that singapore is still struggling with those covid cases, the highest since the pandemic. the government has not blinked just yet. keep it here with us.

this is bloomberg. ♪

>> a quick check of the latest business flash headlines. microsoft is scrapping a plan to fully reopen its headquarters by october 4, saying it cannot longer provide a date because of the covid-19. the company will move to a 30 day transition, providing time to prepare for its offices to reopen. they are dropping social distancing rules in the london office and returning to full occupancy starting next week. an internal memo says about half of the london workers are already in the offices each day. it will retain mask wearing in common areas and a mandatory testing program.

they say that this will encourage support of local restaurants. the intense war on wall street will force some to raise junior bankers starting pay to north of six figures. speaking is closely to bloomberg, the founder and ceo says the need to boost salaries reflects just has well -- just how well some investment banks are doing at the moment. >> fitness is booming. i think last quarter we were up 100% year-over-year and our people are up 10%. you can just do the math. somebody is working very hard. i think they deserve to be paid more. >> we have sophie kamaruddin with us. the volatility was muted.

quite that is a guest you are quite familiar with. he says that the nonchalance is surprising given the growth data , especially in the property sector. he says they are advising risk premiums with mentor easing seen dragging on the currency as china's yield appeal is less attractive compared to the treasury. he is taking them at 655 by the end of this month and 650 by years and. >> look at base metals go, trading at multiyear highs. markets are telling us to look at the supply demand picture. quite some analysts are laying it cautious. saying there is peak demand in place. they see prices averaging $2300 next year, also due in part to the potential supply of scrap coming online.

shifting the port over to city. they have upgraded their already bullish forecast for aluminum. they see it averaging more than $300,000 for next year with the global deficit of the market calculated at 3 million tons from this year. >> let's look at what is going on with chinese markets as we go toward the end of the morning session, going into lunch there as well. we are seeing big gains for some of these tech companies, looking at the shanghai composite. it is approaching levels not seen since 2015. six year highs off that particular benchmark. we are seeing people just weighing what is going on with regards to the covid variants out there, the delta variant in particular and how that might hurt growthoinead and then we had a new one as well. it was joe biden calling xi jinping. it was a call about having future calls and it was not about outcomes or policy changes

or anything like that, it was frustration taking place with the dead and talks that had been taking place at lower levels. we have markets on the upswing. we have the hang seng in hong kong leading the charge. china so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's golo.

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>> they would not want to go for

the bailout. they also agreed. sri lanka has another $500 million of foreign-exchange bonds coming up in january. it seems the country has enough money but pressure will rise amid 2022. some indications may come from the briefing. that is now the information we have with the central bank. indications are also that they should treat interest rate more aggressively.

jeanette rodriguez there. let's do a check on the markets. asia is shrugging off the losses. japanese techs are trading higher. the hang seng trading with the kospi. we are looking at chinese tech as well. extending gains. china imposing a temporary slowdown in gaming approvals. not a suspension. they have been shedding more than $60 billion on value today. they are reversing some of those losses. we are tracking oil.

there are offering millions of reserves. new york crude is up by .5%. futures are up 2.4%. they are at a 13 year high. for now, let's get the first word news with vonnie quinn in new york. >> the white house says president biden had a broad as to -- strategic telephone conversation with china's xi jinping. the second call between the leaders was initiated by biden. underscore u.s. frustration with what they called beijing's lack of seriousness. they say the u.s. president wanted to see whether personal engagement with president xi could help advance cooperation. hong kong authorities have formally prosecuted seven organizers to commemorate the

1989 tema square massacre. according to a post on the group facebook page, three members are facing charges of inciting subversion of state power. for were charged with failing to provide information. hong kong police say the first 200 $80,000 of the organization assets -- assets. the united nation -- united nations was the subject of an attack in april. the hackers of appear to have gotten by adjusting a stolen username and password on the dark web. the attackers were successful in reaching parts of the infrastructure and that further attacks had been detected. about 200 foreigners flew out of afghanistan thursday on a commercial flight from kabul's airport. it was the first large-scale departure since born sources ended their withdrawal at the end of last month. the flight marks a significant

breakthrough in the rocky coronation between the u.s. and the new taliban leadership. global news 20 for hours a day on air and on uber quick take, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn, this is bloomberg. >> let's look at these recent delays in global shipping. there are increases in transportation costs. there are two new reports that say that they could be better they -- better by $4.5 million annually. >> always the senior competition expert. >> you talk about how the government can do more. what should they be doing, what policies are needed to unlock the potential?

>> thank you very much. a pleasure to be here. there is a lot that could be done. we are bringing an opportunity for them to continue to make smarter regulation and except that we know that competition is important for growth, jobs and for better economy. we bring a lot of recommendations. can they help governments if they implement them? $4.5 billion per year. if we unpacked at a little bit, that is just about prices to the consumer. that is lower prices for manufacturers, lower prices for consumers, those freight rates. we can imagine that sits very much at the pyramid of the logistics sector. it has an effect on the whole economy. it can bring a lot more benefits than that. they are not so measurable,

increased trade, increased economic growth and more jobs. quite that is what can be done but with a pandemic, permanent changes to production logistics have taken place. take us through some of those changes expected. >> a lot of changes. we know that they hit the region pretty hard. these particular logistics have gone down significantly. there is a lot to be done here. we make a lot of proposals that can help. we can make proposals regarding streamlining the licensing processes as a possibility of two mystic roots being opened and the ports and the shipping lines, maritime. yes, that is what we are proposing. the number of smarter

regulations, low cost, that is what we are proposing. no need for massive investments to make those changes happen. let's use the assets they have. quite a bit of breaking news at the moment. they will be delaying the launch of the google geo phone. this is bringing down the door of chip shortages. they have been a big bug particularly in the automotive side of things. there is a logistical problem here as well. that has played out on this end. how is this coming to pass. >> i think it is a very complex, timely and a good question. let me try to tackle that from the perspective of our reports. there are reports but you have

quite a few lines waiting outside. we have seen ships lining up at ports. lots of ships coming in late. there are confinement measures. also a reduction in the capacity of the lack of containers. we see that competition can play a role in three ways and our reports talk about them. firstly by carefully scrutinizing the major global shipping agreements to ensure that those are not anti-competitive. we know that several countries are looking at this. the u.s., china, korea, vietnam, etc.. they can ensure that those agreements are benefiting them and not hampering capacity unnecessarily. secondly, smarter regulation will increase competition and

that will allow countries and ports to adapt faster to changes in demand. that can play a role in the handling of the fallout of these cues and getting airtime commerce to play faster in the region. the last time is on road transport. we have surveys show that during covid, quite a significant price increase and delays have come in to fight -- to hire freight costs. let's get rid of some of the more restrictions in the trade on the road. let's move away from protest and toward the open licensing system. that is more adaptable to demand. that is one of the recommendations we made. quite the thing is that we have to look at the post-pandemic world as it were from the

mid-pandemic perspective and move forward. people talked about industries being transformed by what has come to pass in late. has a logistics industry changed? has it got the vision to change? that is part of the whole competitive game. markets have to function well to promote the growth. it is really about that. it is about competition. new players coming in. innovating, fighting amongst each other to get to the customer. the best possible deal, lower prices, lower delivery rates. that is what competition can bring. if you need an adaptable industry, you need competition.

>> ruben getting up early for us in paris, we really appreciate that. still to come on this show. we speak to the ceo of india's biggest airline about the pandemic rebound and the expansion plans. this is bloomberg. ♪

>> let's take a look at the aviation side of things, indigo is trying to put behind it the unprecedented hit caused by one of the worst bricks in the world. they are now planning to add more capacity and pay vendors on time. joining us now is indigo's boss and ceo. thank you for joining us. you're getting ready to get back to normal and it is going to be a marathon, not a sprint. >> yes. it is a gradual opening up process. right now, domestically, we are flying at 72% of our pre-covered capacity. things are improving slowly. thankfully, the covid numbers are down. as those come down, we can see a

fairly significant rebound in domestic and international. >> how will the whole experience of flying change as a consequence of what has been going on in the world? >> number one, more digitization. contactless travel has become the buzzword of the day. therefore, every point of contact from the booking to the check-in, even the boarding process, we are trying to make it as contactless as possible, social distancing. i think that is the biggest change. i think airlines have become far more nimble and agile than they ever were. they are relying on long-term planning. now we are short-term planning, we are already standing by to make it happen.

>> i do want to fly. i just want to follow-up on the kind of capacity you are anticipating with this recovery. put that in context for us, give us more clarity. >> i think in the last two or three weeks, we have turned a significant call. the covid numbers are down. things are getting better. our forecast is by december of this year, we would be back at 100 -- 100% capacity. as things open up, i expect that by july of next year, there would be 300 percent of covered capacity. -- covid capacity. we can see the light at the end of the tunnel at this point. >> back in may, you talked about

doing fundraising. what is the status of that? >> the fundraising, we are looking at covid one that came and went. is looking great and then covid 2 came. this is a long process. let's see how things pan out. >> give us a sense of the kind of timing, what you are raising the money for.

we don't -- >> we don't need it for re-capital purposes. what if we have to shut down again? >> where do you anticipate yields to be in six months time? we can get up to normal load factors there as well. as you work this journey, how good is your relationship with airbus given that you're the biggest buyer of jets from them?

>> we have a very close partnership over the years and the relationship could remain as solid as ever. there are always a few airplanes. they are not meaningful. a relationship with airbus, fantastic. it is one of the strengths this airline has. having the great supplier relationship. load factors are hovering around 70%. pre-covid, 86 or 87%. we have a ways to go. we want to add capacity and improve our loan factors.

covid to -- covid to -- covid 2 hit really hard. we have improved a lot. international is stronger at this point and domestic. all in all, it is hard not to be bullish on the future. load factors are inching up. capacity is going up. i feel like we see light at the end of the tunnel. >> what will the landscape be like? we have them looking to start a new airline. we have jet airways as well. getting approval to fly.

air india as well, would you ever be interested in that? >> what will they do with all of these? will they pull it together? that is a major force in the market. at the same time, the new airline has been launched. i am sure they will be a serious competitor. we look at all of this and say let's get back to the basics. this way we can run a world-class airline. our customer complaints are

1/10. number one, costs, number two, the quality of service. and our net worth. we are really focused domestically. if we look at our net worth, it has gone through very small turns. >> i am just wondering whether your intended to fly any new national roots. might you consider beyond the a320 question mark >> we are very patient to expand explosively. just waiting for the government

to come up with some sort of procedure where it is easy to travel again. then we have lots of things coming, lots of destinations. this will take us into europe. we are planning to go in all directions. >> we are expecting it's for air india. what outcome do you expect after it being close to a sale? >> at think that air india will be a formal -- formidable

competitor -- >> i think that air india will be a formal competitor. >> he is the chief executive officer. a quick look at what we have coming up. this is marking some 20 years since the 9/11 attacks. we will be talking with howard lutnick. have a great weekend. this is bloomberg. ♪

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