tom: good morning, this is "bloomberg daybreak: europe," these are the stories that set your agenda. manus: covid zero concerns, stocks dropped, treasuries and of the dollar gain as china tightens the curbs amid a resurgence of the virus, including the first fatalities since may. seeking the old magic, bob iger returns as disney ceo, hoping to stem the worst performance some than -- since the 1970's. historic agreement, negotiators at cop 27 reach an 11th hour deal for the fund that compensates developing nations for climate devastation, but falls short on fossil fuels. we are live. tom, good to have you with me this morning. we are back to paranoia about what happens next in china, as we see covid cases rise in the capital. good morning. tom: good morning. absolutely.

a reminder of the complexities of moving away from covid zero, as we see fatalities take up an additional restrictions put in place across some cities. also as we look on the macro front when it comes to monetary policy, to the fed minutes later this week. manus: indeed. the dollar is behaving classically and beautifully as a risk off in markets, a bit of paranoia, so the dollar goes stronger. does that respondents fade? these equities are shaken this morning. tom: indeed. in the asian markets, msci asia-pacific, and what is happening in china is impacting. after the strength we saw last week, the msci asia-pacific currently down 8/10 of a percent. in hong kong, down 1.5%. uncertainty over just how far china can go in easing restrictions and given the covid

cases keep taking up. s&p futures down 3/10 of a percent. for context, you some modest gains last week for european equities, losses for u.s. equities, but for the month, gains of about 6% of u.s. equities and about 9% for european equities. but there are question marks about china and how aggressive the fed will be going. the minutes should give us more detail in terms of the clarity and direction of travel for fed officials. manus: and then we can do the -- debate all of the peaks in the world. one thing that is pervasive is the dollar is rising this morning. we see a risk off narrative in the markets, but how long does that last? up one third of 1% on the dollar index, piling in on short on the dollar. the most since 2001. exceptionalism, dollar exceptionalism, premium is receding.

iron ore down at the moment. as you see, a concern about i suppose the property pivot that infused the market last week dissipates somewhat this morning. brent down, off the lows of the day. demand may limp along into the fourth quarter. larry summers later in dubai debating the peak. let's get to the rest of the markets. annabelle is in the hong kong studio with the latest. annabelle: certainly you were just talking through some of the major themes we are watching in asia, the fed and what is happening in china. some other factors at play, as well as korea.

exports slumping in the month of november. korea a global bellwether and determines the major trade forces globally for us. that does indicate as the impact that rate rises are having on the global environment. malaysia also in focus as well today, given we were in a race form a coalition. we had an election at the weekend and resulted in the first ever hung parliament. in the last few minutes, the party has declared -- the party pn has declared a majority. they have to select a leader in the deadline has been extended a further 24 hours until 2:00 p.m. tomorrow, around 6:00 gmt. we have a selloff today in china, something we are watching, given we saw the first covid deaths at the weekend. certainly testing the resolve of

officials there to start of pivot away from covid zero policies. tom: thank you very much with a check on the asian markets. now, to one of the big corporate stories of the moment, disney says a former ceo bob iger will return to the position effective immediately. a company statement says he will take over from bob chapek and served for two years. for more, let's talk to alex. why has disney brought bob iger back? alex: disney made a massive pivot the past two years, under pressure from activist investors, to make themselves more like netflix and actually invest in disney+. netflix has not had a brilliant year. it has been stalling and its share price has come down significantly. disney has fallen almost in

lockstep with that. manus: and of course he is famed for doing those monster deals with pixar and marvel, isn't he? let's see what magic he could speckle across the kingdom. let's get to a bit of crypto. we know the contagion is around $3 billion in terms of unsecured creditors. that's not the end of the story in terms of fallout for ftx. it is pervasive. alex: yes, lots of different stakeholders here. there are the bigger funds, you have holdings who had investment in ftx, and then just your run-of-the-mill punter might have savings or investments, recto investments in the ftx exchange. all of these are likely to be affected and unfortunately it looks like those sort of retail investors are likely to be the last in the food chain to get their piece of the pie.

it's not looking good for these companies. the fear is if they have huge losses at ftx, some of the big companies have to sell holdings elsewhere. manus: it is interesting, the liquidator has found pockets of the liquidity, nearly $50 million in cash. alex, we will see you through the day. that is alex webb on the tech stories of the day. china has reported its first covid deaths since may. cases are spiking nationwide, hiking the concern that cities like the capital could return to tougher restrictions. emma, this is about concern about the velocity and the kind of contagion risk we saw in omicron. how bad is the situation in terms of lockdown to remaining open? emma: i think you're at a make or break point when it comes to china's covid pivot.

they have pushed out this new set of parameters and now it is truly being tested by not only the uptick in cases but the onset of winter. you are at this point in the covid curve where you will start seeing deaths, in addition to the first death in six months on saturday, we've had a further two deaths in elderly people in beijing over the weekend. you are seeing the chickens come home to roost somewhat when it comes to this wave. it will provide the ultimate test in many ways of the resolve of officials of whether they will follow these rules or if they will ease back into the restrictions they know how to do. we are seeing some signs of that. a city close to beijing was rumored a week ago that will --

that it would be a pilot testing site for full reopening in china. they got rid of a lot of testing in line with the new parameters, but now they have gone back to covid zero. they have advised people to stay at home. there are a lot of high-risk areas where people cannot leave their homes. mass testing, something that was discouraged in the guidelines put out a week ago. we are seeing a reversion to the playbook as cases take higher. we are on a knife's edge as to whether we see officials going back to that in all but name, or if they start to tolerate higher case levels and deaths. tom: emma in sydney on the ultimate test, as she described it, for officials in china, as they face up to this surge in cases. which is of course butting heads the 20 point plan to ease

restrictions generally. negotiations at the cop 27 climate summit have reached a last-minute deal for payments on climate damages. what has finally been agreed? >> a number of people are calling this historic, especially when you think about the 30 years it took to get loss and damage on the formal agenda at cop 27. it is significant, this is a win for developing nations that have been calling for what some people called climate reparations for the effects of climate change. a lot of the concerns are what happens next? a lot of the text around how is it financed or structured, and our nations like china and other oil-producing states donors or recipients? that has not been addressed. when it comes to the deal itself, we saw a number of nations agree to reaffirm to keep temperatures below 1.5

degrees celsius, but the biggest criticism out of this summit was the cover decision not strengthening some of the language we saw from cop 26. namely when it comes to emissions reductions, a number of countries, including india, the u.s., the eu, wanted to see this text about phasing out all fossil fuels but instead it was a recycling of language we saw last year, phasing down. now headed into cop 28 in dubai, which is a large oil and gas producer, a lot of people are concerned that although we did see this significant win for developing nations, we still might not be on the path we want to be on going forward. manus: great work on the ground, and visceral criticism about the clear follow through on the phase down on coal not in the

text and that seems to be the disappointing point. well done to you and the team on the ground, two weeks of driving through. we will have a reset in terms of these markets. coming up, asset managers of turning ever more bearish on the dollar. is its exceptionalism fading? are the fed approaching peak rate hikes? we will discuss with our guest. tom: plus, kick off in qatar. we will cover the weekend's action at the world cup. disappointed for the host nation. this is bloomberg. ♪

>> the market thinks the number is going to be about five, i

look at things and my sense is there is more room for that to be too low then there is for that to be too high, but it is pretty clear we had the big moves on this cycle and now we are going to be finishing that process off. my view is there is more risk from stopping prematurely. tom: former u.s. treasury secretary larry summers talking to our colleagues. meanwhile, james bullard has signaled hikes will roll on, while the atlanta fed president favors slowing the pace of interest rate increases. joining us is a chief investment strategist at northern trust asset management. thank you for joining us. is the terminal rate more important for these markets or is it a pair down -- pare down?

are they looking through a potential terminal rate with a handle about 5%? >> if i look at the markets right now, they are clearly very worried that the fed will push on beyond the terminal rate of 5% the market is pricing in, worried they will not be sensitive enough to the global growth slowdown and the fact that inflation has been rolling over quite significantly of late. if the fed does not account for that trend, clearly markets have to discount a higher terminal rate and discount on the back of that. that is something we think we are seeing at the long end of the curve right now where rates are rolling over. manus: good morning. good to have you with us. the debate will be later on with larry summers whether we will enter a 2 -- he is here in dubai. whether we enter a phase of financial repression, which is what was prat into

thousand eight. because the debt levels are so high. do you see a period of financial repression? in other words, gross around 8% and inflation around 5% and rates at 4.5%. inflate your way out of the debt? wouter: the sum extent we need some financial repression, think about italy. italy needs a nominal growth rate that is higher than its nominal interest rate to grow out of the debt situation. if i look at an anchor country like the u.s., it is much weaker. there is still a debate in the u.s. about what structural interest rate does the economy need to bring inflation back down to the 2% to 3% range in a way that doesn't spike unemployment to a level that would be higher for -- that would be hard for the economy. that's why there is a cautious view. there is an asymmetric risk that

summers highlights and you want to be cognizant that they have to maintain credibility. but strategists and economist, we look ahead and we see growth slowing down and the disinflationary cycle coming on in the next six months and we think the fed needs to be cautious not to overdo it out of respect for the labor market as well. tom: on the question of china, investors would blast the last few weeks. you see some positives in terms of geopolitics and some easing of restrictions at least in terms of the policy document they put out, and then of course you have what is happening in the last 24, 48 hours, tick up in deaths, tick up in caseloads and questions about whether officials can implement some easing on restrictions. are you seeing a case now forgetting greater exposure to china? what is the timing around the reopening of china. clearly there will be upside when that happens. wouter: you are right and this is an important question we are

trying to answer. on china, we are on the cautious side of the debate. we've been highlighting that monetary and fiscal policy has been easing and looking at property sector developments, and at the same time we've been stepping back and saying they haven't yet developed a domestic mrna vaccine, or a decisive health care policy for covid, which means zero covid is still no effect and risks are still to the downside. in that environment where we saw a strong market reaction, we said we are not participating in this. nor did we see international investors participating. we are staying on the cautious side until we get much firmer confirmation china has turned a corner on zero covid policies and on the back of that can turn a corner on the property sector developments as well. manus: that sounds like a man who has no fear of fomo. if you are not going to have china in your bucket, what in

asia do you want in your bucket? wouter: we like certain parts of asia. we like the parts a little exposed to what we call the regionalization trend to happening in asia where countries are taking some of their production capacity out of china and putting it in the philippines in vietnam or thailand. there are parts of asia looking structurally attractive, but for the region as a whole, given how dependent it is on the china macroeconomic story, there is still caution baked in. there is for us simply a timeline we have to monitor. when will china turn the corner on covid, when will it move forward on the property sector? we are not strong believers at this point we are there yet. tom: there's almost a consensus trade, investment grade u.s. credit seems to be something we hear from strategists and guests most daily. you like high-yield. you getting the premium? are you getting what is

necessary to reward you for the extra risk? wouter: we think we are. if we look at the quality and high-yield, the average quality has moved up. when you look at the spread relative to quality, we think there is still value. if it -- if you look at the tilt per leverage, we think there is also value there. for us, high-yield is also a substitute for equity risk at this juncture. we are taking it on as a low risk risk asset. it is important to contextualize that, but we still like high-yield as it stands. manus: thank you very much. coming up, it begins. the world cup kicked off yesterday. we discussed the action, the fireworks, the controversy and the football. ♪

manus: it is "daybreak: europe." it has begun, the 2022 world cup kicked off in qatar, there was a lavish opening ceremony following -- followed by the opening match. 12 years of buildup, marred by controversy over the initial bid. human rights concerns top of the agenda in the run-up to the opening game and the environmental impact. simone foxman has been covering it and had a seat in the stands last night. you did not send me the invitation! she left me behind! how cool was it? simone: very cool. particularly the opening ceremony. there were light displays, dancing, music. very exciting, and you certainly felt that in the stands.

i think the excitement tailed off a little bit when it was clear that qatar was outmatched by ecuador, ultimately losing 2-0. also important, the geopolitical players in the stands. the emir of qatar sitting next to his father, who really wanted the world cup, as well as the fifa president, and to his left, the saudi crown prince. i wonder if they were talking about the possibility of a saudi world cup. also, looking around the country, a little bit of a subdued atmosphere here. it's unclear if that is because of the rescheduled match, it was pushed a day earlier in order to garner the full global attention. i will be watching closely if we see more excitement on the ground. tom: a saudi world cup, can you imagine the controversy? there's already controversy

about qatar. how are the brands managing all of this? simone: this is a question i was interested in because we've seen brands embrace social impact and est the last few years, but i got in touch with 76 brands that were either team spencers -- sponsors in the u.s., canada, europe, or fifa sponsors based in those same countries, and very few of them told me they were changing their marketing plans in order to reflect the human rights criticism that qatar has received. it wasn't as much about qatar as how brands respond. there were 13 brands in northern europe, specifically denmark, the netherlands, as well as belgium, who said they were changing their strategy. but only three had any even tenuous ties to qatar. tom: simone foxman, who has the

arduous task of following the world cup live from doha. thank you for the update. coming up, rishi sunak's government is forced to deny that the u.k. is seeking a closer relationship with the eu after reports it is looking into a swiss style a deal with brussels. we will get the details next. this is bloomberg. ♪

manus: it is "bloomberg

daybreak: europe," i am manus cranny in dubai and tom mackenzie is in london hq. tom: covid zero concerns, stocks drop, treasuries and the dollar gains amid a resurgence of the virus including the first fatalities since may in china. papers show that sam bankman-fried's bankrupt ftx owes its 50 biggest unsecured creditors more than $3 billion. and a historic agreement, negotiators at cop 27 reach an 11th hour deal for a fund that compensates developing nations for climate devastation but falls short on fossil fuels. we are live in egypt. manus: we are indeed. that agreement on reparation, loss and damage, but of course the world may remain a warmer place. no doubt, we are watching minute by minute on china.

will there be further lockdowns and closed signs? it's were affected in the market risk, from the dollar, oil, the dollar slightly better bid. and of course the debate from bostick, the fed should slow the pace. iron ore dropped more heavily in singapore, down one third of 1% on the back of potential further lockdowns in china. brent is down. you've got goldman sachs cutting the oil price for the fourth quarter by $10 to $100. hedge funds flagging the dollar. and of course we have rates rolling down 4.5%. the world is concerned about global growth. tom: yeah, and there was the cautious optimism last week that china would be back in terms of a global catalyst for growth to maybe offset session fears. that is back in question, as you say. you will see that reflected

across the benchmark in asia, a drop of 9/10 of a percent on the msci asia-pacific. in hong kong, losses 1.8%. in europe, losses of 2/10 of a percent, after a week with modest gains on european stocks. u.s. stocks, off for the week, futures lower by 3/10 of a percent. a 6% rise in the month for u.s. stocks. we look ahead to the fomc minutes and terms of the guide, given the flurry of commentary from fed officials last week pushing back on the idea of a pause. let's check in on the first word headlines from around the world. a city near beijing rumored to be a test case for removing virus restrictions across china has asked residents to stay-at-home for five days, a potential sign officials are reverting to tighter covid zero curbs. in well, the country's first covid related death and almost six months has sparked concerns asian could see a return of

restrictions. this comes on mud -- amid an outbreak in the capital. malaysian officials face a deadline to inform the king of their choice of prime minister, after saturday's vote produced the country's first-ever hung parliament. the opposition leader says he has the numbers to form a government despite falling short of a simple majority. new court papers show sam bankman-fried's crypto empire owes its 50 biggest unsecured creditors a total of $3.1 billion. entities linked to ftx oh their single biggest creditor more than $220 million. investors continue to pull funds from digital asset exchanges despite efforts to reassure markets about their stability. manus? manus: coming up, more on cop 27. over and out. they wrapped up the final

communiqué from the conference. the winners, losers, and the opinions on success or failure. we will wrap it up. this is bloomberg. ♪

manus: it is your monday addition of "daybreak: europe." cop has wound up, but the u.k. government is also in focus as they have denied they are seeking a swiss style relationship with the european union. this after the sunday times reported rishi sunak's administration is exploring options that would likely and are -- anger many in the party. lizzy is live in birmingham with a special guest.

lizzy: thank you. i am at the confederation of british industries annual conference and i'm joined by the director general of the cbi. thank you for joining me. thinking back to the fiscal statement from the chancellor last week, has he done enough to boost growth in the u.k. economy? tony: not really, let's be honest. this is probably a two-part play. part one, the statement last thursday was focused on calming the markets after a difficult many budget. and also on combating inflation, which was the prime minister's stated aim. what it did not do was really give any new momentum to britain's growth story. that is really important because we've got a government now not spending money on growth, a bank of england not trying to spend money on growth. it will be even harder than ever to get growth going, but if we don't, the worry is we will have

another decade of flatlining productivity and low growth. lizzy: do you have the sense that labor would have a more allen's view on growth and inflation? tony: so far they have an investment strategy that is good but it is very expensive. i think the question they have to answer, can they still really afford it? we are in stagflation territory and that hasn't happened in britain for decades. you can't make a choice, we will fight inflation and not worry about growth, or we will go for growth and not worry about inflation. you have to do both. we need fresh thinking to do that. lizzy: with the measures of the chancellor announced to close the gap in the labor market, is that sufficient? tony: we saw intent but no plans. you are right to focus on the labor market. the have hundreds of thousands of people economically inactive after the pandemic, and immigration system to nervous about bringing in the skills we need.

and it is very important. with the labor market is as it is, two things happen -- inflation those up because of wage pressure, and firms don't have the people to grow. i think you are right to raise the importance of the labor market. lizzy: you mentioned immigration, and manus mentioned the reports over the weekend denying the government is looking at a swiss style deal with the eu. would that help the labor market problem? tony: i don't think they will, and the truth is brexit meant we get to make our own choices on immigration. it doesn't mean we go back to the immigration system of the past. it means we choose to bring in the workers we need for the jobs we are missing. in the long run, we want british people to fill the jobs we are missing. until then, we have to rely on immigration, short-term visas, otherwise wage inflation will keep getting worse and worse, and so will inflation and we

won't get growing. lizzy: what style of brexit does business want? tony: in the first instance, we just want the boris johnson brexit deal implemented and that is not happening because of the northern ireland protocol. it is a complicated situation but if we don't get it solved, we will not have the signed partnership with europe, we will not have the recognition of professional qualifications for british professionals. there were so much more economic growth that could be within that brexit deal. forget about the swiss thing. let's implement the boris deal. lizzy: what do your members thing about investment zones being announced and then completely scrapped? tony: i think it is fair to say that in the last six months, as nurses have been pulling their hair out about however thing is changing. one thing jeremy hunt said last thursday i think is interesting, he wants to get behind the idea of business clusters. the idea that across the u.k., there is some real specialism

and strengths, whether it is the northeast of england, hydrogen and carbon capture, in the southeast it might be cybersecurity. if we have a system that really grows these u.k. wide success stories, that would do a lot to get the economy growing. lizzy: what could convince business to start investing in the u.k. again? tony: we have the prime minister here this morning. i'm hoping we will hear something from him, not again about stability, we heard that on thursday, but about growth. what he and the government can do to drive momentum. a lot of firms out there right now are making budget decisions for 2023, and the ones i speak to say on the one hand, i think we will grow, on the other hand everyone is telling me there will be a very deep recession. i think we do need to give signals about confidence to invest. we do need the prime minister to say government will back you if you invest. we probably need people like me and the thousand businesses here to come away with a message -- that's go for growth.

lizzy: tony, thank you so much for joining me here in firming him at the annual cbi conference. tony will make a speech later, we expect him to focus on growth, and we will also be hearing from prime minister rishi sunak, who we are expecting to focus on innovation. back to you. tom: an important place to gauge a sense of british business, but particularly important on the back of the autumn statement. lizzy in birmingham, thank you. let's head to egypt. negotiators at the cop 27 climate summit have reached a historic last-minute deal on payments for climate damages. let's get out to jennifer, who has been across all of this. tell us about the details of this deal, how it will work in terms of the funding and commitments. jennifer: i think the biggest thing with this deal is a got

onto the formal agenda, but when you think about the details behind the deal, the hard work might start for a lot of negotiators at this point. yes, a fund was agreed upon but the terms of the fund are still unknown. we don't know who will be part of this fund, who will be the nations actually benefiting from this compensation, and also who are going to be those can tripping to this fund. a lot of the tension last week we saw was what should be considered -- who should be considered developing or developed nations? right now the u.n. is basing it on the 1992 framework, but it includes countries like china, saudi arabia, and another of other countries that as we know today are some of the biggest emitters. that will be key for negotiators to hammer out moving forward. when it comes to this fund specifically, we heard from the cop 27 president saying there

will be a committee set up to hammer out some of these details and it will include two chairs, one from a developed nation and one from a developing nation, to start to hammer out details. what this new funding will look like and also what, if anything more is agreed at cop 28 next year, how that will be implemented. we know this committee is starting to meet for the first time in march of 2023. it's significant this deal was reached but now the hard work begins. manus: there's also disappointment. it depends on which minister you talk to. if you look at the previous cop chair, he is visceral -- this was the debate, india on coal, other nations. it is clear the follow-through on the facedown of coal is not in this text. is that just bashing the agreement or a deep disappointment in terms of coal

and in terms of a commitment to phase out fossil fuels? not facedown but phase out. jennifer: that was the tension you could see last week. the language is so key for a lot of ministers when you think about this, and the fact it wasn't included in the final decision upset of number of people. you mentioned the cop 26 president. we also heard from franz timmerman, who said he did not think this was taking us a step forward in the direction we want to bnp a lot of criticism, -- we want to be in. a lot of the criticism, it was reported a number of fossil fuel lobbyists were at the summit, making their own case for not phasing out all fossil fuels, but just some. a lot of disappointment in not taking this another step forward from glasgow. yes, there is a loss of damage fund and that is significant,

that if we are not getting closer to keeping global warming blow the 1.5 degrees, if major emitters are still able to do so, are we still taking this a step forward? like you mentioned, it depends on which minister you speak with. tom: before the cop 27 summit started, you had the warning from the united nations, the 1.5 degree commitment was almost dead in the water essentially, and that would have significant consequences across the climate. what has been agreed to close the gap on that? what are the details that have been confirmed during this meeting in terms of the climate action? jennifer: the one most significant part a lot of negotiators and a lot of climate activists here we have spoken to come it was the fact that a lot of countries signed on to this global pledge, which is significant.

if we have 150 nations signing up, that is taking us a step in the right direction. there's also this idea that the u.s. and china are now working together again. we heard from john kerry on sunday talking about how significant and crucial it is for the u.s. and china, two major emitters, to be working together in dialogue to bring down emissions. those were some of the biggest takeaways from the summit. of course, there's a lot more work to be done. manus: there is indeed. the baton passes to the uae, let's see what they deliver next year. maybe now you can do a little scuba diving, you and the team. well done on the ground, staying until the bitter end. jennifer on the ground in egypt. coming up, after a fairytale farewell to years ago, long time disney ceo returns to spindle

his -- sprinkle his magic on the company. ♪

tom: welcome back to "bloomberg daybreak: europe." disney says former ceo bob iger will return to the position effective immediately. he stepped down in 2020 after leading the company through a period of enormous growth over 15 years. for more, let's talk to alex webb. i remember speaking to bob iger in shanghai when they opened shanghai disney, and the question always was, once you got past the questions about the resort, what is happening, how long are you sticking around? the board kept extending his leadership, they could not find

a replacement. now bob chapek was found, but he wasn't in place for long. a remarkable turnaround. alex: a lot of the big studio decisions were taken by bob iger and then handed over to chapek to execute. disney was trying to be more like netflix, doubling down on streaming. we've seen that netflix has not had a brilliant time of it and there is a knock on effect for disney that investors have started asking if it was the right choice. disney shares are not down as much as netflix. disney has a huge theme parks business, as things have opened up, that has improved. but the share price has been down and you tie that with internal morale. chapek has made decisions that have not affected morale positively and that is a factor as well. manus: let's talk a little bit

about twitter. more reports that elon musk is considering more layoffs. i am sitting with a tweet in front of me, there was a poll over the weekend of whether donald trump should be let back on twitter. alex: elon musk has been cutting a lot of jobs already. he gave an ultimatum last week to employees, saying whether they are willing to be part of a new hard-core twitter. far more employs left than he anticipated. crucially, those employees were likely in engineering. he wants now to cut jobs and sales. on the trump side of things, he is playing coy. there's no guarantee he will come back to twitter. i expect as we get closer to the 2024 election, he will get back on the platform. he's got his own competitor, not

very big, true social. largely aimed at his supporters. for now he says he will stick to that. tom: this is how nimble alex webb is, we will now switch to crypto. ftx and its creditors. what do we know at this point? alex: the creditors have $3.1 billion in holdings in ftx. they are the third-party we are hearing about now because we've got -- these are the big institutional, crypto institutions that have holdings in the company. then you have the actual investors in ftx, looking as though they will probably lose all of their capital. thirdly, you have the retail investors, smaller players with investments, and for some, savings and ftx. unfortunately, they look like they will be coming after the big institutions in terms of getting capital back. it is not looking rosy. it comes to the $3.1 billion, the risks in crypto more broadly

are considerable because if they have to find ways to covering those losses, they might have to sell down, for example, that coin holdings elsewhere. manus: alex, thank you. the contagion far from done and yet the liquidator has found pockets of healthy balance sheets, nearly $50 million in cash as well. alex webb from the quicktake team. a redline from china, last week was a six point plan on refigure rating the housing market. the pboc urging stabilization in property financing. it is yet to materially impact on the markets, per se. we will keep an eye on the building sector. the pboc, the bank regulator will hold a seminar today on bank loans. this is one of the big levers in china in terms of stability to the economy and indeed, reassuring the world they are on some kind of a regrowth trajectory. tom: this is a sector, to your

point, accounts for about toy percent of -- about 20% of china's gdp. they're trying to ease the burden on the property sector. the csi 300 still down by about 8/10 of 1%. we will continue to watch this unfolding story as they try to put a floor under what has been a collapsing real estate market in china. next, bloomberg markets: europe. we will bring you more market analysis as we look ahead to getting further clarity on the direction of travel from the federal reserve. we continue with the china story when it comes to covid as well, a number of cases surging. to your point about the property plan, the plan for covid as well being challenged. manus: that's what we see here, on the global market map. you are seeing a risk off across the markets this morning on rising cases within beijing and within china.

what are the next steps in terms of taming the resurgence of covid? that has caused the dollar to rally and the renminbi to roll down, by some 6/10 of 1%. iron ore and copper, fundamental building blocks of a reopening narrative, both down. of course, they had rallied considerably on the back of that 16 point plan we will leave it to anna and mark in singapore and london. the first reaction to the breaking news that the pboc bank regulator is urging stabilization in property financier -- finance. ♪

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anna: