>> hello and welcome to "daybreak asia". sophie: i am sophie kamaruddin in hong kong. kathleen: good evening, i'm kathleen hays. now for our top stories. asian stocks are set for a make start as a way inflation risks. china's pandemic warning made dampen sentiment. a new covert outbreak will worsen in the coming days and

the turkish lira tumbles to a record low after president erdogan expels them from 10 western nations. haidi: let's get straight to the markets as we kick off a big trading week. lots going on. eco-data on top of it. sophie: very big week ahead. we are seeing aussie stocks open. a little change after tapping a three-game, which led the rba defendants yield target. now we are seeing the 310 curve after we have seen market pricing diverge from rba guidance ahead of this one day inflation data. checking in on oil after they fly caution over the oil demand. brent above 85 and wti above 84. pulling up the board with higher energy. factory inflation that we saw in china. over and goldman they do expect the high cpi seen at the third quarter. it will be temporary of

policymakers stem downside risks. long-term headwinds for property leveraging as well as decarbonization have led goldman to lower its growth fund for china to 5.2% from 5.6%. coming up, a bigger view when it comes to global inflation. if i could just have that chart i want to highlight when it comes to the inflation picture given what's going on with the picture we see for corporate's around the world and asia as well. jeffrey's global strategy team, all of their inflation indicators are flashing where -- flashing red. they expect cash rates will move higher very quickly. so they are recommending banks, energy and fertilizers to hedge against the outlook. haidi: real transitory there. treasury secretary did address that we are seeing higher inflation. she does say that she would expect to see it continue to

move higher through the middle of 2022, saying the energy situation, the tight u.s. labor market, as well as the normalization from pandemic lows. she said it's also a matter of perspective. but most adults in the u.s., most people globally haven't really seen high levels and inflation for quite some time. some of us, not really in their lifetime, so it is maybe a psychological adjustment. kathleen: the formers treasury secretary thinks it's preposterous not to think there is a tight labor market that is pushing up inflation. they are about the same age, so we will see how it works out. i was struck by a story that bloomberg had out over the weekend about asian stocks. the profit forecast have fallen to a 12 year low. at the beginning of the year earnings estimates were soaring because reopening's were happening as vaccines were

starting to roll out. by about mid-september, they start on a number of things. first of all, where asia led the west in terms of covid cases coming down last year, they led behind this year. the west is ahead, the vaccines have rolled out faster and slower and asia. you have the regulatory crackdown, you have supply chain bottleneck. you have fuel shortages. goldman sachs says they see an earnings revision downgrade emerging. they are looking at the overall forecast for the year for msci index asia-pacific extra pay and, 32% for this year. that's pretty good. only 9% next year. that's down to the forecast of 34% for 2021 and 11% earlier. things are looking kind of grim from goldman sachs. haidi: you talk about the covid zero approach in china. we are looking at restrictions in nearby hong kong. a lot of businesses and

corporations are unhappy. you still have to quarantine for a long time. tight restrictions on movement. not just for the growth forecast, but potentially weighing on a scroll at the global financial center. we have been hearing over the weekend and today that a number of financial firms are lobbying now for the government to loosen some of those restrictions. in the findings in their research is really pretty startling. we are seeing half of major international banks and asset managers contemplating a move of staffer functions out of the city. the majority of them having been impacted by these factors, including pandemic infrastructures. we will be speaking with the ceo a little bit later on who will join us at 7:30 a.m. hong kong time. kathleen: hong kong is prioritizing opening travel to the chinese mainland, officials are expecting a new covid outbreak to worsen. our global business managing

editor emma o'brien joins us now. how do you put all these latest developments together? >> in the global scheme of things, china's outlook is pretty minimal. we are talking 26 new cases in the world's most populous nation. burford china, a place with strategy when it comes to covid reliance as soon as they emerge to prevent any spread is pretty worrying. it has gone from a handful of places to 11 provinces in basically a week. we are talking in a month to the north to beijing, which is always very sensitive, then further south. there's even a case in the province, which is home to wuhan where covid-19 first emerged. the fact that you have health officials warning about an increase shows they know delta is the much tougher one. it's definitely proving that way

to china, with these resurgence is of local transmission outbreaks. they are coming much more frequently than they did with delta. haidi: our global business managing editor with the latest in china. let's get you to su keenan in new york with our first word headlines. >> we start with china, which will expand property tax reform trials to more areas and start taxing residential property owners. the areas have not been specified. property prices have skyrocketed since private homeownership was introduced back in 1998. authority started property textiles in shanghai by having annual charges on high-priced homes. to japan, with the prime minister's ruling party lost one of two upper house special elections, which is putting it ahead of sunday's general election. hk protected the liberal

democratic party. they have tried to win over voters in the upcoming national vote with a pledge to raise incomes and provide a massive stimulus package. in the u.s., house speaker nancy pelosi open the door to democrats using a federal budget tool to raise the u.s. debt ceiling without the support of senate republicans, whose votes would otherwise be needed to end the filibuster on the increase. democrats previously resisted using --, which requires 51 votes to pass the legislation, saying it could eat up weeks of senate floor time. finally, the digital coin she but you know has soared to record highs to become the 11th biggest cryptocurrency market value. and it has gained more than 40,000,000% in the past year. we should point out it still valued at well less than one penny. they estimate the market value is around 21 billion.

the cryptocurrency can be volatile. it was found at last year in 2020 by an anonymous person. global news, 24 hours a day, on air and on bloomberg quick day, powered by more than 2700 journalists and analysts and more than 120 countries. haidi: the turkish lira falling to a record after the ambassadors of 10 nations were no longer welcome. let's get the latest from our washington editor. we see how the fx market is watching the situation when it comes to political experts. how serious are these threats in the move being made? >> i think it's something being weighed closely in 10 capitals around the world right now. we have heard from the u.s. and the turkish government for clarification. the head of the european parliament said europe will not

be intimidated. this is all part of a larger pattern of off-and-on presentations that president erdogan has had with countries that really are nominally and practically allies of turkey, including in nato. so this is not an entirely unheard of scenario, but it is -- it would be a very striking move if turkey goes through with this. kathleen: this is kind of an awkward time for this. this is one week before the g20 meeting in rome where president erdogan is supposed to meet with president biden. >> that meeting is usually the case ahead of the big international summit. neither have been confirmed nor denied. but they are all going to be

meeting, and there is a source of -- in this case, it's not even bilateral, but multilateral tension between members of the g20. and it's not the first time that erdogan has shown that he's willing to take a very unorthodox approach to policy, including economic policy where he intervened in personnel decisions at the central bank, and other issues that, in the end, as seen from the outside and seen from a markets perspective, actually tend to do harm to the turkish economy. kathleen: thanks so much, our washington editor. now you can read about that story more in today's edition of debris, bloomberg subscribers go to dayb on the terminal. this is in the bloomberg anywhere ad. still ahead on the show, we get the outlook on the fixed income

space with deep learning investments managing director. this is bloomberg. ♪

>> we are going through a time of inflation. it's higher than americans have seen a long time. is something that's obviously a concern in worrying them. but we haven't lost control. and as we make further progress on the pandemic, i expect these bottlenecks to subside, americans will return to the labor force as conditions improve. haidi: u.s. treasury secretary janet yellen sharing her views on price pressures. fed chair jay powell also fell to the note of caution in a

recent panel discussion. he said that the risks are longer and more persistent bottlenecks and higher inflation. let's discuss how all this affects the timing. david ingles joins us now with janet weighing in. partly saying that it's a matter of perspective that we are not used to seeing higher price pressures. david: it has been a while. the whole transient definition. it's nothing that's permanent. so if you take evolutionary time monday morning that everything is transient. two-year point, markets have really rapidly brought forward other expectations of rate hikes. a chart for you shows three things very quickly. closer to rate hikes by next year. closer to four within the next 24 months. although that white line december of 2023, that suggests we may see the fed go on a bit of a pause, or maybe stick

around a little bit from september. it's worth knowing that this is current thinking on current pricing, which changes day-to-day. kathleen: thank you. we will see what our next guest thinks. i would like to thank our bloomberg markets coanchor david ingles. you can catch him in the next couple of hours. photo managers are staring down the prospects in looking at trillions of dollars in losses per let's discuss the key risks. david summed up the change in the bond market. when the dots moved in september to show that half of the members of the fomc thought one rate hike next year in the bond market really didn't listen. what has changed their mind, and what does it mean for yields? will bc the 10 year break above 2% now? >> a lot has changed over the

last couple of weeks. i think what you pointed out in the program about treasury secretary janet yellen's comments on inflation, and it's higher than americans have seen in a long time. and the fact that even sharon powell is saying transitory is longer than what we thought, it's no more week or months. we are talking about quarters. so i do think this will have an impact on expectations for high inflation, which is a key input for the fed. the fed looked at expected invitation. expectations are going up. as we see that price to inflation raybon, that does create a situation where the fed is responding. we are becoming more hawkish. we can expect moderate hikes is the market is hiking.

kathleen: it's interesting. after the fed chair spoke on friday and said there is a greater risk now, he kind of admitted it, the greater risk is that we will see persistent inflation, higher inflation. definitely going to taper. rate hikes are a way off, but that's reassuring the bond markets. there was a rally. how will the bond market react when the taper starts down the road? will it help flatten the curve? >> there is the worry of faster tapering would create the risk of slowdown. early on the show you mentioned china, that is a risk to global growth. we also have the fiscal stimulus around the world, so they are all negative factors, which worry markets and investors about the sustainability of the growth trajectory.

i think that's how bond yields react some time when they see the higher risk, or the risk of the higher central bank. what that doesn't mean is that yields are not going to continue to go up. everybody talks about them rising gradually, but yields fall apart when they jump higher. answering your question on where one can reach 2%, i think it's highly likely in the next three months. we have been on a pause, which is showing yields can rise up. it will be up and down and people worry about growth. i think growth is a worry. but inflation is rising. the bond investments will want some kind more premium than what they are getting now. even though what we have now is higher. but we are still not out march levels. march, 2021 levels.

haidi: despite concerns over china, are there now opportunities? >> there are opportunities because valuations on the equity side are reasonable and much lower than other regions in the world. some are pricing in terms of chinese equity value. i think it does give rise opportunities in the chinese markets. we see users, in and out. i think the evergrande news was good. i am expecting policy easing from the chinese side and we have not seen that yet. haidi: what are you leaning towards now? >> asian effects is the underperformed markets price.

i still like the chinese currency, but i like the korean won as well. i think the korean won is cheap, it has followed what's going on in terms of chinese growth, and that is priced in. the bank of korea is also a very -- bang, and has signaled that it will hike and continue to worry about inflation and's financial stability. i think generally, issue currencies have underperformed and probably have room to stabilize or depreciate. this is bloomberg. ♪ -- haidi: what more to come on daybreak asia. this is bloomberg. ♪

kathleen: countdown to the start of trade in tokyo and seoul. in korea, the president is scheduled to deliver a budget speech at the national assembly area local media reports the government will unveil a draft plan for a gradual return to normal life. third-quarter earnings are in focus. now we look at japan. they are delaying expansion projects until march. the ruling secretary general, and on the semiconductors shortage. they want to shift supply chains away from risky places. plus, a big story. almost 30% of voters plan to use that ldp and the upcoming general election. haidi: ahead of that vote, the

party has lost one of its two special elections. bloomberg's politic reporter joins us now. what is that say about his chances in the general election next week? >> i think you have to be careful about how you look at this. all constituencies have their own particular circumstances. if we look at them, the opposition candidate does have the support of the local governor. and also he was a relatively low -- relatively young candidate. many politicians are quite elderly. nonetheless, it's not good news for the prime minister, who has only a week to go for the general elections. it's the one that really counts. the opinion polls show that his liberal democratic party is still way ahead of the opposition party, but the opposition parties have developed the strategy of working together to put forward a unified candidate in each

constituency, or more than 200 constituencies against the ldp. that could enable them to chip away at the seed. but even if the ldp remains in control, if it loses too many seeds, that can loosen the grip on control of the party, and he could be facing a movement towards replacing him fairly swiftly. highly -- cathing: it seems that the most likely result is that the coalition retains its majority. what would be the first task on their play after the election? >> what we have learned over the weekend from some media reports is that they are heading to the u.k. the day after the election for the climate summit. we already know that president joe biden will be there, so this could be his first time on to the global stage as premier and his first presidential meeting with biden as prime minister. that could be the first thing. but when he gets back to japan.

i think what he has to do is fulfill his promises. for example, tens of trillions to the economy, there will need to be extra budget past to bring that about. so that is going to be the biggest item on his agenda when he gets back. kathleen: bloomberg's politics reporter in tokyo. up next, an open letter from hong kong's finance industry is asking the government to relax its quarantine rules as more and more folks consider moving staff and functions out of the city. we will discuss this with the ceo of the top lobby group. mark austin. we are also going to be taking a look at generation next, a very special interview coming up. and of course watching the latest in the markets as we get ready for markets to open in korea, japan and around the world to continue to keep an ion earnings were expectations have kind of fallen lately for

earnings out of asia. goldman sachs is emerging it's downgrade cycle about to begin. keep it right here. this is bloomberg. ♪

haidi: hong kong is under more pressure to ease its trick quarantine orals and abandon a zero covid policy. the asia securities industry and financial markets association what took a hard-line approach that put the city's status as a financial center and economic recovery in its competitiveness at risk. joining us from hong kong is the group ceo. having a look at some of the findings of the report, it looks pretty dire with their percentage that will be negatively affected.

they are moving staff or relocating headquarters. how crucial is this juncture in terms of decisions like that being made. >> thank you for having me on today. it is crucial, but before i talk about that, i think we should first command hong kong for the zero covid policy that they have maintained for so long and they have been able to keep the territories safe mill. we have lived a normal life in the bubble. so you could argue that hong kong, and the first part of the

pandemic, has won the day. the challenge really now is, today, that there are major competitors in major financial centers like new york, frankfurt, paris, and now singapore, tokyo, all moving to living with covid in hong kong maintaining this zero covid policy. and that's problematic because the financial center here is where 20% just north of 20% the gdp of this territory, and that's the direct amount. if you had -- adding the direct expenditure of housing, is far greater. so the challenges we are having right now is we need to protect that. and because of the tight quarantine requirements around this, we are finding that firms are having a huge problem in every firm that we surveyed said, they want to go home, they want to move elsewhere where they can have a more normal life. and when those people leave, they are having real problems attracting people into fill those empty positions. so even if they are really committed to hong kong and china, they are in a situation where 50% of them, 50% of firms are contemplating that they need to move positions out of hong kong. and that's really significant. so what we really want to see from hong kong is, we seen them

say china is a priority of opening up the priority party. that's where the clients are. however, we did a roadmap and individuals work for the companies. there was certainty that they would move on to a normal life within the foreseeable future. otherwise, they will be losing people. haidi: speaking to you, you yourself are in quarantine after you went to hong kong. the roadmap to living with covid, for example here australia and in sydney, getting vaccination rates really high, that's not even something that the corporate sector can do in hong kong because the lag is over 60. >> that's correct. i think getting the vaccination rates is important. coming back from canada, seeing my parents.

what you see there is the government saying, if you want to be employed, you need to be vaccinated. you are seeing vne passports coming in. if you want to go out to a restaurant, you need to be vaccinated. if you want to do anything in the community, you need to be vaccinated. there needs to be tools that gets the vaccination rates up that the government can use and will allow for the opening up. in the most vulnerable people are the ones who are not getting vaccinated. again, i was just in canada. to get into a home, you need to be vaccinated. the people in the home seemed to be vaccinated. they don't have a choice if they want to be there. there are things you can do to get the vaccination rates up faster so that we can open up and maintain that isd. i think what we really want to see in the hong kong is, they won the first part of covid, can they win the second part of covid by catching up and ultimately opening up and protecting things.

the future of hong kong, without the financial system, hong kong, economically, will suffer. haidi: -- kathleen: do for feel like the global banks in the asset managers have gotten more stood up about this? they did not seem so vocal previously. >> i think it comes back to the point i made earlier. even if they are committed to hong kong and committed to china, which they are and that's why they are here, the individuals are looking across the border and they are seeing back home that things are going back to normal. they are seeing the competing financial centers opening up, so they don't want to be stuck in this bubble and they don't want to have to be quarantined when they come back to the standards we are seeing, so they are being forced by their employees to take this seriously. so they are seeing a huge amount of people leaving and they can't replace them. that's why the employment market

in hong kong is so boring. the only way of replacing people is effectively poaching them from their competitors, which is increasing the cost of staff, which is pretty much the dominant cost for banks and financial markets. kathleen: carrie lam is accountable to the chinese government, not the big global institutions. how confident are you that they might actually consider ending the covid zero strategy with a clear exit strategy, maybe even more testing and offices, that kind of a thing, the way many companies in new york have done, or do you think that they are just going to put their foot down? >> at the moment, it seems like they are putting their foot down. but one of the reasons we have this engagement is we all want the same thing. carrie lam has made a very clear that she wants to maintain and protect them. she recognizes the benefits at the risk of hong kong.

we recognize that hong kong basically asked to have a discussion and agree what they do with china. that makes perfect sense. hong kong is an inalienable part of china. however, both hong kong and china need to understand that the current policies put the ifc under threat. and that's not really in hong kong's interest, but it's not in china's interest either. hong kong is china's only ifc. and that changes into just the chinese financial center. that's not in china's interest either. so in those discussions, our view is -- and we think there are people who will understand this, to advocate for a stronger opening for hong kong, and a clear roadmap to do it. and then you could do some small things initially, like the look back policy. i tested part of it when i came in from canada the other day and

they would look back 21 days. i was only in canada for a few days, so my family could be sent to penny bay. even though the chances of me picking up covid in hong kong would been pretty much nil. in those policies can change. they can make tweets around the sides. but it's more tough than you see in china. there's no reason they have to be so tough. kathleen: we hope your quarantine ends soon. we thank you for joining us today. mark austen, the asian security and financial markets ceo. let's get to su keenan. su: we start with the latest on the covid front. a chinese health official said new covid infections are expected to increase in the coming days. the wave of infections as spread to 11 provinces and most of the affected people have crossed regions. the national health commission says the current outbreak is caused by the delta variant.

meanwhile, china is targeting more than 80% non-thoughtful energy use by 2050. the letters are part of the plan to achieve peak carbon emissions and to reach net zero by the same year. that's according to guidelines published. beijing will accelerate the development of industries, including next-generation materials and clean energy materials, investment in cold power, steel and petrochemicals will be controlled. to the u.s., janet yellen says she expects price increases to remain high throughout the first half of 2022. criticism losing control of inflation. the treasury secretary said the current situation reflects what she calls temporary pain. she said inflation is expected to ease with issues ranging in a tight labor market. we are going through a time of inflation.

it's higher than americans have seen in a long time. and it's something that's obviously a concern and worrying, but we haven't lost control. and as we make further progress on the pandemic, and you expect these bottlenecks to subside, americans will return to the labor force as conditions improve. kathleen: global news 24 hours a day on air, powered by bloomberg quicktake and more than 120 countries. >> sophie: taking a look at the aussie share markets. session higher by energy well textures are off by more than 1% in sydney. this as we have the reporting season in view. at ups, they see potential upsides for discretionary financials. although the bank has seen

pockets of discretionary at risk from global supply disruptions. checking in on aussie bonds, cashing a 10 year yield below 179. a report from australia on wednesday. they reckon that the cpi report from australia will matter less. as markets, on inflation, treasury futures extend gains that we saw on friday. we have a short benchmark treasury that's part of inflation expectations. over at jefferies, they would not be surprised to see a near-term move into the 180 to 2% range. kathleen: a lot of us will not be surprised. magazine releases the ceo and tells us out he has driven the company to become an online powerhouse in brazil.

this is bloomberg. ♪

kathleen: magazine louisa is one of the country's top e-commerce road -- retailers founded in 1957. the brick-and-mortar shop has grown into a household name was

more than 1000 stores across brazil. over the past two decades, a member of the families third-generation has led the drive to reinvent them as an online powerhouse with sales soaring during the pandemic. e-commerce comes with more than 65% of total revenue and has helped propel them into the billionaires club. he spoke exclusively on generation x to discuss the business outlook. >> the pandemic in brazil hit the country really hard. we actually did really well because we started early in brazil in 2000. and we managed to grow 60%, even with all of this past last year

we have really grown a lot. i have seen so many other businesses not doing well, it was really a tough time. even though we are doing well. some of my business colleagues are not with english. >> he mentioned that you started this business over two decades ago. you must have faced a lot of skepticism when he first launched this. how did you overcome this? >> we had skepticism, not only for starting early, but starting differently. i lunch the e-commerce on top of the platform. so i think it's standard for

these systems. the community as a whole was skeptical about our approach and putting everything together. nobody thought that a traditional retailer would be a part of e-commerce. but i think we stuck to our approach, with all the complexities. and currently, it paid off. currently we are a market leader in e-commerce. the only one doing commerce in brazil properly. it really pays off to keep this. >> was your family on board with the strategy from the get-go? what are some of the lessons you took a lot -- took away from your families empire? one thing i love about my family as they always put their business first.

we were led by women for 40 years. so it's very typical for a latin american company, and i think we have open-minded and the company. they think of outside the box. so we have very strong values. but in terms of changing business models and the way we operate, we say here that split never changes is that we are always changing. i never had any issue. they know that the e-commerce and revolution would have a major impact. click so your mother is a key figure.

in brazil's business community. so what's the dynamic there? do you agree, disagree? >> would all like to push the agreement. and she is very tough. she wants them to drive. he is currently the chairwoman of the company and the ceo of the company. she is very tough and wants results. not only initial results, but it comprises in terms of esg and several others. >> let's talk a little bit about some of the challenges that you

may be facing going forward. we have given out emergency payments with the pandemic. is that going to affect them? >> the dollar dependence depends on the growth. it's only 10% of everything. in brazil, we grow no matter what. >> are you happy with your logistics capacity? >> we want to increase our square footage to 2 million square meters in brazil. we have 800,000 square meters, so we are seeing that. so i don't want to wait for our partner to do this.

>> in this post-covid world, the environment is changing so fast. how are you systematically super proofing your business? >> we spent 20 years to make an improvement in retailer the e-commerce in brazil. and that's very hard because we don't see that in any other country. so was displayed in other countries, we haven't stopped. we are now using all the learning to help others as well. so i think we are bullet proofing our business by being bold and helping other businesses to grow. >> future proofing will also help succession. are you looking into setting up your children for having to do what you are doing right now? >> it took me 15 years working

very hard on the e-commerce part to get to this position. and i had to put myself in growing business. when i became coi became co because the company wanted to do this. i don't know if they had the same opportunity or view to be working at the company. i have a great bench year. we don't have that planning for succession here. it happened organically and naturally. training you are seeking this. it's a very athletic approach. haidi: this ceos speaking to

shery ahn. eco-watch live and catch up on past interviews with our interactive tv function, tv . you can dive into any of the securities the bloomberg functions. sign up for instant messages during our show. it is at tv . this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. the power struggle has escalated. the former chairman calling a board meeting after claiming he has regained control. they warned family members it will try to spend every penny to stop him. the company lawyers say a shareholder resolution by her brother to replace directors has no legal validity. the telegraph reports that elon musk's is considering a tie up with broadband services in the u.k.. they confirmed that it is in talks with multiple operators and is tracking a deal. they are competing with the u.k. to offer internet. the sk group is planning to spend technology with the

ultimate aim of achieving a net zero carbon footprint by 2035. the company said they will invest 85 billion dollars in the environmentally friendly businesses like electric cars and hydrogen and energy as a looks to cut carbon emissions by 200 million users by 2030. kathleen: squid game, it's amazing the number of people who talk about it. and when you hear about it you think, what in the world. big hit on netflix. korean story. but it is not just making waves in terms of the entertainment world. that's where people don't realize it so strong. you have kapok bands, you have movies that are getting more popular. but you can see how they have really been thriving since this got so big. i guess people are thinking the stage is set for k dramas and maybe even some vampire movies that are popular in korea, that

maybe this is something that will feed over into other things. that may be the entertainment stocks will continue to thrive. haidi: it's very interesting because we have seen the broader kospi underperform and drop 4% since mid-september of squid games release. if you look at the entertainment content providers stocks, they really just rally dozens of stocks in these sectors from kapok bands. cinema has gone into overdrive. this kind of intensity really could change the makeup of how investors perceive the korean markets. korea is best known to consume smartphones and chipmakers. now we are looking at content providers as being the big leaders when it comes to the equity markets. it really is just incredible, this squid game impact. i was reading about them saying they had a big spike when it came to purchases of their classic white shoes because they are worn by the characters in squid game.

kathleen: i will wait for a nice romantic comedy. the market outlook as analysts cut their forecast for the asian stocks. take a look at the close across the region. china is reaching 80% by 2016. keep it right here. this is bloomberg. ♪

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♪ shery: hello, welcome to daybreak: asia. i'm kathleen hays in new york. karina: i'm sophie -- sophie: i'm sophie kamaruddin in hong kong. haidi: and i'm haidi stroud-watts. china's pandemic warning made -- may dampen investor sentiment. the new covert outbreak will worsen in the coming days.

analysts are washing -- watching for reassurance on evergrande and china's property sector. kathleen: for a look at how the asia trading day is progressing, back to sophie. sophie: after japanese stocks cap a fourth weekly drop, pressure continues this morning. politics also a key theme after they lost selections on sunday. ahead of the boj's meeting, the yen softened a touch after again. at citigroup, the team is bustling a recent trend and going bullish on slowing growth expectations for china. over goldman, the economics team lowered the growth forecast for china to 5.2% from 5.6%. checking on the open in south korea, we have a speech later this morning from president moon, downside a third,

extending a decline for a fourth straight session. we're going to keep an eye out for earnings today, and also watch reaction to the ipo fundraising. we have the one on the back foot, trading around around against the greenback. we're seeing stocks in australia gain ground, higher by oil and energy prices continuing to gain, brent above $85, wti above $84 a barrel. we do have bonds gaining ground in australia. you got aussie 10 year yields back below 1.79, this is markets consider the pricing for rba pricing. haidi? haidi: sophie kamaruddin in hong kong. analyst investments have fallen to a decade low relative to global peers. further downgrades are on the horizon as china's economic growth slows global supply constraints remain.

let's discuss this with tim. so, is the diversions that you see when it comes to expectations in this part of the world and where we see elsewhere fair? and where do you find opportunities in those gaps? tim: we do think it's fair. we have a number of indicators that suggest the building cycle is turning down. to be clear, we can get the visions to estimates, which we have a variety of leading indicators for, in which the recent macro data suggests will result in further downgrades over the next few months. so, as a result of that, as well as an updated economic forecast and inquests regarding supply chain constructions and so forth, we've reduced our estimates for this year to 32% growth, and for next year and 2023, to 9% each year. we're about five percentage points below consensus for 2023. so we're not majorly more bearish than consensus, but

somewhat more conservative, and we think numbers will continue to come down, cost pressures and other activity pressures continue to take effect. haidi: and a big part of the regional worries, it's not an implosion in the property sector, but it's a grand lower, particularly return on investment in that sector in china. goldman also cutting its growth forecast expectations for china for 2022. does that mean there's more to go when it comes to chinese equities? tim: we do think from an earnings standpoint, the numbers have to come down for next year. we produced a report specifically looking at the impact of the challenges of the china property sector. as you said, we're not looking for a wholesale downturn, but there are clearly pressures and the risks are to the downside. that resulted in us cutting our numbers for next year, 2022, from 13%, with the current

consensus is, down to 7%. i think the risk still lies to the softer side with those numbers. that is a concern for chinese equities from a fundamental perspective. but your question, that being said, the mortgage is priced a fair amount of that, and so we think there are opportunities in china and we need to take a continued approach. we put out a piece around prosperity themes this morning, which identified the china market. karina: you also mentioned you --sophie: we also mentioned you're looking for low regulation risk. does that dovetail, in terms of which pick you have with advice you're giving your clients? tim: absolutely. that's one of the key axes within the china market today. clearly, the increase in regulation and the tightening

surrounding that has resulted in some pretty severe price pressure on a number of companies that are exposed to, particularly the more socially oriented parts of the markets. in contrast, we have a number of areas where there are policy tailwinds. and this would largely revolve around areas in the heart technology space, manufacturing upgrading, as well as the green economy and energy self-sufficiency, in defense, and a number of other areas. so we think this is one of the key dynamics to focused on from an underlying trend perspective. we listed 50 stock names we think can be beneficiaries of this on a longer-term basis. kathleen: so, would you disagree hardly with people who say, all this government meddling, all this government trying to control the system is a reason not to invest because it's going to spread broader than that? would you say they're wrong and

you just have to know where to put your money in china? tim: i would say yes-ish to that question. clearly, the greater tightening of regulatory policy is a challenge for investors. there is no gain saying that. what we are pushing back against is the unilateral branding of china as completely on investable. we think that's way too overarching and homogenous. and the investment perspective for china really is one where we need to take a more partial ice and distinctive view on how to invest. and as we've learned time and time again over many years of investing in china, if you invest in harmony with policymakers one, and they're generally pretty clear about expressing that, that tends to be a favorable place. the outcome tends to be favorable. if you invest in opposition to that, it tends to be painful. we just seeing recent examples of that in terms of how the

market has performed at this year. we'd prefer to be on the right side of that ledger if at all possible. haidi: the decarbonization theme and the drive is one of the expection for short-term in china. in terms of the role it plays in a portfolio, are they just too expensive at this point? or is a long-term enough theme you continue to add to this position? tim: it's a great question. and the answer is the stocks have done well. this is the added layer that investors need to use to look at the china market. first of all, fundamentally need to separate things into areas which have better policy tailwinds versus those who have policy headwinds. the second question is how much of that is priced? our view is you do need to have valuation discipline when looking at the better parts of the market, the ones favored by current regulations, and not overpay. but to answer your question, we do think the green economy is one that structurally has enormous potential.

just be careful about not overpaying. make your appropriate stock selections. in contrast, the areas that are more challenged from a regulatory standpoint, to the extent it's fully embedded in the price, there could be a chance for recovery. haidi: a quick final question. you're staying overweight on a shares, but monitoring your view on offshore china. the middle of next year, where are both of these indices going to be? tim: we made those changes a while ago. as a preference for asia and sometime, and we downgraded the offshore stocks back in july. so, clearly a lot of price action's happened from there. from here looking to next year, we would generally still be moderately constructive. we think that valuations will basically reflect current fundamentals. we think the derating that the market was worried about has already taken place. therefore, they are largely

going to be in line with online earnings growth. and then the opportunities will be selecting within that. if you're able to both combine moderately positive data with positive outflow, we think there are going to be some favorable opportunities for both a-shares and offshore. kathleen: we'll be watching that and waiting to hear from you soon. tim moe. now to su keenan with the first word headlines. su:. thank you, kathleen we start with turkey. the country's labor a drop after president erdogan sent ambassadors from 10 nations, including the u.s., germany, and france were no longer welcome. the envoys have been demanding the release of a prominent businessman and philanthropist. investors are watching for any official foreign ministry announcement about the expulsion. two the u.s. now, house speaker nancy pelosi opened the door to democrats using a special budget tool to raise the u.s. ceiling without the support of senate

republicans, whose votes would otherwise be needed to end a filibuster on the increased. democrats previously resisted using the budget process, which requires just 51 votes to pass legislation, saying it can eat up weeks of senate floor time. >> we're still hoping to have bipartisanship. it seems that the american people should understand that what we're talking about is largely the trump debt. now, we participated in some of that with covid and the rest. but we didn't participate in giving a tax scam, 82% of the benefits to the top 1%, that added to trillion dollars to the debt. su: japan's prime minister's ruling party lost upper party house elections, serving as barometers. they projected the liberal

democratic party's candidate to have been beaten. he has tried to win over voters with a pledge to raise incomes and to provide a massive stimulus package. china is targeting more than 80% energies by 2060. the measures are part of its larger plan to achieve chief -- peak carbon emissions and reach net zero by the same year. beijing will accelerate the development of industries, including next-generation materials and clean energy vehicles. investment in coal power and steel will be strictly controlled. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. ♪ haidi: still had, we discuss -- ahead, we discussed how the energy crunch is affecting the market.

coming up next, chinese officials worn of a worsening covert outbreak. we take a look at that and how the economy could see a deep or slow down markets realize now. this is bloomberg. ♪

♪ kathleen: officials in china expecting the new covert outbreak to worsen. the wave of infections have extended. our executive editor, jean-luc, joins us. we seen some pretty intense help rates the virus. how does this look in comparison to what we saw earlier this year? john: so, this specific outbreak has spread to 11 provinces. it's not as widespread as we had earlier this year in august, when we had sort of the first broad infections of the delta variant in mainland china.

authorities, nonetheless, a very concerned. they've already started shutting down highways, taxi services, bus services in some parts of the country, specifically the northwest, where many of these infections are being traced back to. we had 26 local infections being reported on sunday. we should be getting that number four today pretty quickly. already, we've had a marathon in beijing canceled. the city of beijing also saying anyone who has been to another city with an infection is not going to be allowed to come back to the capital. kathleen: how much further economic downside do expect from some of these virus related measures, given already the fragility of the recovery we're talking about here? john: so i think it's not going to help the a lot of these infections resulted from this october period, where there is traditionally a peak in tourism. obviously, people were not going out as much. we're spending less, hotels,

tourism services in general have been suffering as a result. i think this is another thing that's going to weigh on that in terms of contribution to gdp. people are going to be less willing to visit a nearby town or go to a resort or whatever. back to mind with the headwind in terms of investment, in terms of the energy crunch and the limits that's placed on factories, all these argue very poorly for the economy going forward. haidi: have a greater china executive jean-luc with the latest -- john liu with the latest there. that's the latest when it comes to the myriad of issues facing the chinese economy. think of america, citigroup among those warning growth will fall short of the 8.2% estimate this year for china. we bring in enda curran. goldman sachs also cutting their

2022 forecasts to china gdp, as well. enda: good morning. indeed. the economists are now concerned that growth will now miss 8.2%, haidi, but also saying growth next year might slip to the 5% level. that would be the slowest growth in three decades. you strip out the 2020 year last year. the reasons, you've got some structural issues going on, this big tackle, the big push to reign in debt a systemicnd -- and systemic risk. and then equality, which is triggered education and technology and the like. and then, more cyclically, we have this energy crunch and the virus outbreak we heard john talking about. when you add it all up, it certainly does mean there's pressure on the chinese economy. growth for this year is still

expected to come in or around or above the 6.6% growth target, and there are economists who say that's the healthy growth rate for an economy of that size. kathleen: and gives them some room to power forward with this while they have these other problems. we have the very important gdp report, third quarter from about 8% down to 5% year-over-year. what are the big numbers this week we're watching? enda: well, i think the concern is still front and center on the real estate sector. everyone is looking to see what happens with evergrande, how that debt workout plays out, and how that spills over to other property developers and the rest of the sector. we're seeing new home prices fall now. we're seeing the fact that sales are coming off the board, and there are clear signs of stopping the property sector. that's 25% of the economy right there. front and center is how the debt story pays out. second is what happens with the energy crunch.

again, that's critical for the manufacturing sector. there is a view that manufacturers can keep ticking over, but there's no doubt that's going to cause another crunch in the global supply chain story. and thirdly, most immediately, is the ongoing covid outbreak. not just the scale of cases, but the disruptions that causes. we heard john talking about people will be taking trips or shopping. that's what it comes down to when you're looking at the retail side. so, i think in the near term, there are certainly plenty of major headwinds to keep an eye on. and any developments in the coming days will be critical. kathleen: it doesn't look too bad. thanks so much, enda curran. chinese companies are scheduled to report results this week. let's get a sense of how analysts have adjusted their expectations with david ingles. dave? david: enda was just talking about various iterations of crunch. and when you look at the gdp

numbers we were talking about, the revisions moving forward, you're looking at the change in ep estimates. china measured from the start despite the third quarter when the economy slowed substantially in china. the biggest revisions were in places where the activity really took a hit. consumption, consumer staples, consumer discretionary, 16% down in terms of just normalized percentage revision down in etf's. let me end in a bright spot here, materials and energy, commodity prices. those two areas really saw the biggest increase in earnings revisions. haidi: coming up next, we're previewing hsbc's third-quarter innings do a little bit --

earnings due a little bit later. china's market and evergrande. this is bloomberg. ♪

♪ haidi: a look ahead to hsbc's third-quarter earnings, comments about their exposure to the chinese property market amid the worries over evergrande. let's go to our finance reporter in sydney with a preview. so taking a look at this blooart that really does show just how much hsbc has been trailing for about the past 10 years behind its global peers when it comes to names. given the low rate pressure we've seen in the market, is that really expected to see much improvement? >> haidi, look, expectations for 2022 net income at hsbc have

been slashed by $5 billion since march 2020, and that remains a big concern for investors. analysts are expecting profit of $4.87 billion, 10% higher than this time last year. and what's driving that is a recovery in the hong kong economy. we've seen that stage a strong recovery in this quarter. but rates were again lower in the quarter in hong kong. and people are worried about what that will mean. other things people are looking out for include a dividend boost. i note we're -- know we're talking to a cfo later and he said to expect more substantial plans later in the year, and that's something investors are looking forward to. kathleen: a recent bloomberg story says hsbc's ceo has his eye on china beyond the

crackdown, and is looking to china's middle-class. what does the strategy mean and is that going to show up in this earnings report? >> this is their wealth management strategy, basically, boosting their wealth management business. they restructured earlier this year and they're really pivoting away from their markets in europe and north america towards china. we know there is a rising middle class in china. they've got a lot of money to spend. and hsbc wants to be the one to help spend that money and help them invest that money. they're hiring thousands of people in wealth management in the next little while. so, investors are expecting a little bit of an update on how that's going. but of course, the regulatory pressures that we're seeing in china, people are worried about what that will mean for the new strategy, as well. kathleen: thank you so much. we'll maybe get some answers to these questions when we speak to hsbc's cfo soon after those

earnings are released. join us for that at 12:30 p.m. in hong kong, 3:30 p.m. in sydney. now a quick check of the latest business flash headlines. sources say the two sides were unable to come to an agreement. the italian government needs to find a solution by the end of the year. an sei bank cell income rise 30% in the second quarter two a record $30 million. the bank's bottom line was boosted by strong loan growth. ace gse also beat profit estimates because of credit growth. reliance industries reported a better than expected rise in quarterly profit. a consumption boon across india helped offset and 86% rise in raw materials cost. 50% in the quarter, way beyond estimates. up next, intel warns profits might suffer as it spends big to

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♪ >> we're doubling down on everything in technology right now. >> i would say that if you're thinking of buying tech, if you're thinking of buying some of these frothy growth names, first ask your strategy. >> growth stocks have had an incredible run. those are the drivers of the bull market. i think we're starting to see some cracks emerge that there's probably better places to put your money going forward. >> absolutely tech. i keep talking about the silicon valley tax that we all have to pay.

you have to pay a tax. >> you want to own quality growth. these are companies that can navigate this environment. they can grow earnings even as the economy starts to slow. kathleen: comments from earlier guests there on investing in tech ahead of a big earnings week. of course, the chip shortage a major theme for the tech giants. intel shares dropped to its lowest since last december after the chipmaker said profitability the next few years. emily chang spoke with the ceo about the company's path forward. >> what we said is 51% to 53% is the range for the next one to three years, and that large in depression is largely driven by this capital cycle that we're on. we're building out capital. we been under invested in capital for a while. we have a growing market to catch up with. and we're committed to stay in leadership, five process loads in four years. all that requires investment. we're also building out these

new business areas. until these new business areas start producing revenue, there are dragged in the margin. when they start producing it, we start seeing the benefits roll through the p&l. so overall, couple three years, nice recovery path to the future. also, the free cash flow. we continue to have great operational cash flow. we're making big capital investments, and in a couple three years, we're going to see a nice recovery cycle. they know exactly what they're getting into when they participate in the story. the pivot has happened. we are underway. emily: i spoke to a formal apple executive, creator of the ipod, behind the iphone, and he said by apple making its own chip, so much more is possible when it comes to innovation. and they are never coming back to intel. can intel recover from losing apple, and how specifically? >> well, whether apple ever comes back or not, to me, the

answer is do i have better products or better process technology to do a better job than they do themselves? maybe they become a foundry customer, and my process be -- technology becomes the best. they may or may not be interested in that, but i can promise we will have the best process and best packaging technologies in the countries. apple is very pragmatic. they make good decisions to produce the best products. will they move back to intel-based products rather than designing their own? if i deliver better products, they make pragmatic decisions. but we're also very realist that these decisions are many years in the making. and our objective is, build great products, have a vibrant pc ecosystem, a tremendous process technology leadership and the capacity and packaging to do it. and i believe they and everybody else will make pragmatic decisions, that as the story builds, our business will be

well rewarded for those investments, and our customers will be able to produce the best stuff on earth. emily: the supply chain pain only seems to be getting worse. apple might have to cut production of 10 million iphones. and employees are saying this is the bleakest backlog it's seen. do you have an updated projection on when prices get better? >> yeah, my projections haven't changed one syllable. we've always said the second half of this year is the worst. q3, q4 is the bottom. q1, every quarter next year will get incrementally better. but we are going to see shortages that persist into 20 33. but -- 2023. but this is the bottom and it will start to get a little bit better every quarter next year. but we're not going to see reasonable supply demand balance until 2023. it just takes that long to build new factories, to expand capabilities in manufacturing

and a sea of rebalancing the supply chain across the industry. overall, they clearly impacted our q3, and we expect our q4 results, we'll have better revenue results. haidi: intel ceo pat gelsinger there. let's get you to su keenan with the first word headlines. su: thank you, haidi. we start with janet yellen, rejecting criticism that the u.s. risks losing whole of inflation. speaking of cnn's state of the union program, the treasury secretary says the current situation reflects "temporary pain." she says it's expected to ease in the second half and tightly were market ease. >> we are going through a period of inflation that higher than americans have seen ina lon -- in a long time. and it's something that's

obviously a concern and worrying them. but we haven't lost control. and as we make further progress on the pandemic, i expect these bottlenecks to subside. americans will return to the labor force as conditions improve. su: a chinese health official says new covid infections are expected to release in the coming days. the wave of infections has spread to 11 provinces, and most of the infections in cross region travel industries. the current outbreak is caused by the delta variant. and switching to cryptocurrencies, the digital coin shiba inu has soared to record highs to become the 11th biggest cryptocurrency by market value. and it's gained more than 40,000,000,000% in the past year, although we should point out it's still well below one cent in value. claimg -- coingekko.com says it

can be quite volatile. it was founded in 2020 by an anonymous person going by the name ryoshi. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. kathleen:, we'll get some insight in commodity -- up next, we'll get some insight in commodities. this is bloomberg. ♪

♪ kathleen: first day of the asia trading week, let's see how things are shaping up with sophie. sophie: looks like they are shaping down with asia stocks ready by north asia, the kospi seeing 3000 points yet again, set for a fourth day of losses with samsung among the biggest drags ahead of its third-quarter results do this monday. over in tokyo, retail and softbank, weighing on the nikkei as well as the topics. we're seeing energy names lift this morning. switching on the board to focus on australian bonds, do from

australia this weekend, we do have the aussie 10 year yield with a 3/10 curve. flattening early in the asia session, we are seeing treasury yield resume gains with march high pricing, two rate hikes, nearly two rate hikes, and yields back above 1.54 this morning. and don't be surprised if we see 1.8%, 2%. inflation shows no signal of abating just yet, given pulling up the chart on the terminal, commodities showing little signs of abating. you have the bloomberg gauge, stock prices rally in 5% lows, pandemic lows with oil, gas, and coal leading the advance. brent above $85 a barrel, could be set for a 10th weekly rise. i oil prices have been a boon for copper. haidi: speaking with energy, the

top world exporter has pledged to reach net zero carbon emissions within 2060. it marks a sizable shift from saudi arabia, coming just days ahead of cop 26. the saudi energy minister told bloomberg that the kingdom won't have to reduce oil output to reach that, goal i should say. it will rely heavily on carbon capture instead. >> i wouldn't reflect on that. it's above my pay grade. but i am a technician. and i deal with technical issues. gasoline prices are high because oil went tenfold. gasoline prices are high because there is low stocks in the u.s. gasoline prices are high because they're still 2 million to two by 5 million barrels -- 2.5 million barrels because of the hurricane.

crude oil it imports are not helping. what would help it is making gasoline more available or, as a technician, i don't know how valid it is, limiting export of gasoline. but i'm not here reflecting on anybody. guy: i'll follow up on the technical point because --yousef: i'll follow up on the technical point because i look at quotas and they have been over complaint with the quota. so there's an opportunity to step in. could saudi arabia lead the way and bring that down from 115% to say, 100%? >> we still have a lot of competition to do. but even if i say, we don't call them quarter. if you look at the trajectory of 2022, and even if you look at

what we would be doing all the way to september, we would continue to do in september, without enclosure of any other countries, like, for example, iran coming back or venezuela coming back. if you look at that, if you talk to your experts at bloomberg, they will tell you that you will have huge uplift in stocks by end of year 2022. this is reality, not our numbers. one of them is the iea. they all are saying there will be huge stock prices in 2022. if you do more now, you're actually activating the problem to a worser level. show me any utility that will take crude oil today. show me any utility that will take crude. it's about substituting. and unfortunately, this is

limited. and with regard to gasoline, as i said, i think it's indigenous. it has to do with doing something about ethanol. and it has to do with limiting exports. yousef: some closing thoughts maybe on this conversation that's emerging that we're in a new era where oil is going to be higher for a lot longer. does that mean demand is going to hold up in 2022 as far as you can tell, and supply is going to remain quite constricted? >> well, we don't take things for granted. we still have covid. one of which is moscow just two days ago. we still have jet fuel, limited in terms of growth because airplanes are not flying as regular as they were before. so, we're not yet out-of-the-box

and we're not yet out of covid. one needs to be careful also of taking things for granted when you are, yes, the crisis is somewhat being contained, but it's not necessarily over. haidi: that was --kathleen: that was the saudi energy minister. moving onto china, also outlining plans for carbon neutrality in-state back to media. officials want nonfossil energy consumption to achieve 80% of the total by 2060. less than 40 years from now. joining us from shanghai is a commodities strategist. it's interesting that -- first of all, great to have you. the interesting that china is really upping the ante, the world's biggest polluter, sure. but they're doing this at a time where they have to increase coal output, very contradictory at the moment.

how is this going to play out? >> well, i think this new policy is really a high term in terms of how china is going to reach carbon neutrality long-term goal. i think it's a compilation of short-term goals and long-term goals. there is risk in the energy crunch. the chinese government remains very determined to reduce polluting in the long term. they plan to be carbon neutral by 2060. by next year, we should be able to see more clearer map from each of the industries. kathleen: so does china, does the world have to get through all the various forces are creating, for example, this energy crunch? and we're seeing this in europe, too, where this move to reduce output are looking kind of a dim

outlook for the winter, right? people are going to be cold, potentially. in the near term, how is this going to play out for china? lynn: yeah, i think authorities have done all they can do, including approving extra money capacities, relaxing income tax, giving guidance. all the measures they have taken is trying to encourage suppliers -- coal theaters have fallen 25% the last few days, indicating it is quite instructive. i think authorities will just keep monitoring market develop its. that said -- developments. that said, price is not going to help supplies. i think a change in supplies

should be the ultimate goal in the very short-term to help china pass through the winter period. haidi: is this just the beginning of the supply disruptions and the dislocations as we see this path, this road to decarbonization? lynn: yep. so, all this very high energy cost happens not just in china, but globally. and that has caused supply distractions. so i think for china, what they are trying to do is to stabilize the coal market and ensure that we have enough coal supply until winter. and i think reducing carbon emission has not changed. we're still on to reducing emissions, achieved very heavy polluting in china.

haidi: this is one of the big sort of challenges, isn't it, right? there's also these hidden polluters in addition to supply chain issues in the market pricing that we've seen. does that change their commitment going into cop 26? lynn: no, i don't think it will change their long-term goal. in the very short-term, energy market seems to be very tight. for example, in china, we have this type co -- tight coal supply. china has closed too much coal capacities since 2016. and the purpose of closing all the coal capacities, actually chinese government trying to reduce pollution, reduce independence on coal, fire energy producing.

the goal is to reduce carbon emission, trying to achieve carbon neutrality. haidi: lynn zhao there. ahead of cop 26, brazil is also -- let's bring in aaron clark with more. so why the softening of that stance? aaron: yeah, it's really interesting. we're seeing the softening of the stans of brazil on article six to create a global carbon market. and a lot of that seems to be because of greater corporate pressure, about 100 global ceo's recently sent a letter to the brazilian president bolsonaro, asking him to clarify brazil's stance on a lot of these issues. brazil was a major player in any global carbon market because

they have the amazon rain forest, which is one of the major global sinks. so their participation and their support will be key to any sort of agreement on global carbon market that will be overseen by the u.n. and it's one of the goals coming up in cop 26 in the global climate talks. kathleen: so what else are delegates attempting to do at cop 26 and glascow? aaron: yeah, i mean the larger goal here is to have initiatives that limit the global temperature rise 1.5 degrees celsius from preindustrial levels. to do that, there's a few things on the table. one is the phaseout of coal. there is less optimism that a deal is going to get done to stave out coal. there's been some resistance from developing countries to of course argue that developed countries of richer nations have been including for a long time.

so there is a big debate about how much richer countries should pa