>> you are watching daybreak:

asia, coming to you live from hong kong. placer county got to the market opens in tokyo and seoul. australia has just come online. top stories this hour. >> this may come as soon as the december meeting in our progress in tightening policy. the timing of that moderation is far less significant. greg's asian stocks are set to follow wall street higher after jay powell signals slower rate hikes even as policy remains restrictive. the dollar is falling along with treasury yields. beijing may be amending the pandemic strategy. they are entering a new stage with the virus weakening. and sam bankman-fried speaks publicly about the collapse of his crypto empire saying he did not ever try to commit fraud. >> we have breaking news out of south korea. we are getting the third quarter preliminary gdp numbers. it is growth of 3.3%.

this is pretty much as expected. it is what the advanced estimate has shown. when it comes to the year on year growth number, it is also in line with estimates at 3.1%. of course, we were really watching these figures carefully because we had heard from local media that there could be a downgrade for south korean growth. we are not actually saying that although the manufacturing side of things has taken a hit. we are talking about -- talking about a contraction of 8% quarter on quarter. this is after manufacturing really grew rapidly after the coronavirus pandemic. growth of 2.3% quarter on quarter. what is really important is the numbers going forward. later on today, we will have the straight numbers. that global demand bill has been an issue for many of these asian economies where we have seen those straight numbers. >> that is right.

in terms of the set of today, we are at risk on at the start of trading. the asx 200 just coming online. it is already moving higher for a third straight session. the first is the fed given we have the jay powell speech signaling a slowdown in the pace and size of rate hikes in the months ahead. that is something that led to moves higher in the u.s. session. but in the bond space, we were saying that move lower. yields following. that also caused that pullback in the dollar and the aussie dollar. earlier it moved as much as 1.5% higher against the greenback. the other part of the story that we change our now is what is happening in china. given we did have perhaps the first on record comments from officials in beijing saying that with the newer variant of covid-19, it is not as severe. certainly a change in possession

-- perception and another signal that officials are various about giving away from covid zero. that is the other big positive. we are seeing futures looking higher and new zealand already trading in the green. >> we are seeing u.s. futures coming back higher in the new york -- the asian. those come is chair powell signaling a likely slow down in the pace of tightening as early as next month as we have been talking about how that really boosted sentiment. whether that justifies it or not, that is another question but so far we know that the s&p 500 had consecutive monthly gains for the first time since the summer of 2021. those tech names gaining ground. bond yields fell. the two year yield fell. we had crude prices also grounding in the new york session in that risk on sentiment. we did get u.s. government

showing crude stockpiles plummeted. the biggest decline since june of 2019. we are seeing crude holding of $88 per barrel. >> yes. let's get more on the nuances of that speech. kathleen hays is with us along with her equities reporter. kathleen, i will start off with you. before we get to whether that market reaction was warranted, what really stood out to you in terms of what jay powell said? christman people started by saying we knew what he was going to say but at the sapeople who listen to a carefully were vetted, the balance seems to be toward hawkish. as expected, we are ready to start calibrating, tapering the size of the rate hike. that is just about the size of the deal. instead of 75 on december 14.

but it is what he said when he said -- what he emphasized as more important than that. let's listen. >> the time for moderating the pace of rate increases may come as soon as the december meeting. even our progress in tightening policy. the timing of that moderation here. i will give you a list. our labor market is still too hot. the fed needs to see below trend growth and to believe they are on the right track to truly get inflation under control and inflation is going to stay stubbornly high. in other words, you can't justos and's to see what happens. you have to keep going. there was another thing he said about no convincing evidence

that inflation is coming down. look at this bloomberg terminal. it shows you how high the cpi is. year-over-year it is at the highest level but jay powell made the point that it has come down but for the two previous months, it made a jump higher. that is a very important perspective from his point of view and for us to know how he is looking at this. the blue line shows you that investors are embracing now. it will go to about 5% on that funds rate. maybe a little higher. these are two things you also have to focus on in this speech. it was not that he was super hawkish but he just stuck the hawkish message he and others have sent. >> ethic we are getting a reality check from kathleen right now. did the markets get ahead of themselves? we have been here 70 times before. >> we have. the big key thing that happened is more from a technical

perspective. the s&p 500 did break above its 200 day moving average. it had been below that since early april. it got almost close to breaking down in august but because that happened, that really just a lot of optimism going into year-end. that has been downward sloping as we have moved through the years. we have basically been rolling off of these highs we saw back in january. almost one year now. when it comes to tax loss harvesting and especially a lot of mutual funds, the deadline was in october to do that. but on the retail side that happens then. they think a lot of the beaten-down tax law sellers could potentially see a big boost at your end and that could bode well for the broader equity markets as we go into december now. >> in a lot of ways, it was the least expected with the midterms behind us going into christmas. what are we setting up for as we go into the new year?

>> the big thing is obviously in the middle of december we are going to have the next cpi report which is december 13 and then the next day's will be the federal reserve decision. we will actually get another meeting on inflation tomorrow. we will have the consumer spending report, but it also includes the pce indicator which is the referred gauge for inflation. typically that hasn't been quiet as high as when we are looking at what happens with cpi. it has a much smaller component when it is looking at shelter and housing but still we will get another rain tomorrow. we will see how investors and markets react when we see that ahead of the crucial jobs report on friday and saturday to see what happens when you look at those wage gains. jerome powell has been watching them very closely to see what that means for inflation. we have seen that continued more on the services side. >> the jobs report, 200,000 is the game there. we got the adp survey of private

jobs and how they are growing and they came down to 127. this is not the best indicator of what the jobs report will be. maybe there is some easing off there. the openings went from 10.7 million in september to 10.3 million in october. hinting at further wage disinflation. maybe if it does not stall out again. at that level, over 10 million, that is still a lot of unfilled jobs. it does not show a weak labor market. if anything, maybe a little less hot. as jay powell said, the labor market is still tight. the anecdotal survey from the district bank has put out a couple weeks before the meeting. this goes through late november. this shows the economy grew slightly. maybe that is not so strong but i have to keep going back to the event of the gdp tracker.

the fourth quarter is tracking now at 4.5%. it is not a predictor, it just sums all of the numbers that have come out and they said what it is of two if the gdp number came out today. the third quarter gdp was revised. you look at all of these things and so far it seems to say it has to happen. kathleen hays here with the top stories today. let's turn to china. the country is entering a new phase of fighting the virus with the omicron variant weakening and more people getting vaccinated. john joins us live from beijing. is this the first official acknowledgment that the virus is no longer as severe? >> it is a very public acknowledgment by the lady who has been in charge of the covid

response since day one. she is said to retire in march but until then, she is the vice premier in charge of the covid response and her saying this is significant, it does not mean the policy is changing right now but it does show significant change in the way the policymaking bureaucracy is thinking about the virus. she is saying as the virus becomes less pathogenic, as vaccination rates go up, we need to change the way we deal with it. >> it is a change in the nuance of what they are saying. in the meantime, we are seeing levels of lockdown and restrictions implied but in that more targeted way. >> there are some caveats. this is about as we get

vaccination rates up. implicit in this statement is vaccination rates need to go higher before we can do -- before we can have a real change in approach. i think what that comment does is it sets up and paves the way for a rollback and eventual exit from covid zero. it is now saying we need to change immediately. i think that is what we are seeing on the ground now. those are tools that official continues to use. >> we are now hearing on twitter from elon musk say he had a good conversation with apples tim cook.

tim cook showed him around apple headquarters there. the subscription sold through the app store. it was apparently disgusted that the twitter app was never going to be removed from the apple app store. let's get you to su keenan with the first word headlines. >> how the sources say the eu is discussing crude oil -- cap in crude oil at $60 per barrel. the eu talks on the level.

discussion ongoing. the nato secretary general says the alliance must avoid repeating mistakes it made in relation with russia. he has stress that nations cannot make a decision slowly on -- solely on commercial issues. >> we have seen that with gas from russia. this has to do with over dependency here. >> to indiana where the economy grew at a slower pace last quarter. that is a sharp decline from the 13.5% expansion in the preceding quarter and below analyst

expectations as inflation bid into production and perception. still the chief economic advisor says the third largest economy is on track to deliver gdp growth. and the former chinese president has died at age 96. he presided over a decade of economic growth following the 1989 crackdown on pro-democracy demonstrations in tiananmen square. china's economy more than tripled in size in the 13 years john was in power. global news and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan, this is bloomberg. >> we do have an alert on the bloomberg right now. we are hearing from the south korean finance minister, commenting in a meeting, saying

that they may have posted a trade deficit in the month of november. truckers and other strikes could pressure south korean exports. the finance chief urging truckers to return to work. the korean economy could see my difficulties in 2023. this is according to the south korean finance minister. they just had the creek -- we just had the third quarter gdp numbers come in line with previous estimates. still ahead, we dive into the brand-new global banking review and why the picture is far from pretty with half the world's lenders trading below book value. but next, the ceo and chief investment strategist tells us why peak inflation may be behind us. this is bloomberg. ♪

>> we anticipate that ongoing increases will be appropriate. it seems to me likely that the ultimate level will have to be somewhat higher than thought at the time of the september meeting.

given our progress in tighten policy, it is likely that restoring price stability will require holding policy. history cautions strongly against prematurely listening policy. despite promising developers, we have a long way to go. >> fed chair jay powell speaking there overnight. let's bring in the ceo of mainstay capital management. lots of different ways to look at what we heard from fed chair powell. at the end of the day, the market reaction was -- was going to rally anyway mark was it warranted? >> i think it was warranted. i like how kathleen hays rondeau says this could have been interpreted more hawkish lead.

he seemed to come out with a lot of hawkish comments to put the market on edge. this seemed to give the markets more comfort that there was a moderation fed policy and site as far as the december meeting. an 80% chance factored in that we are in an 80% probability of a 50 basis point rate hike instead of the 75 we had a series of. i think it is a recognition of looking at the data. pmi's are in contraction territory. we have used car prices plummeting in the u.s.. housing pending home sales down 35% year-over-year. there are areas of the economy that are certainly being impacted. we have not felt the full impact of these rate hikes we have had. it takes three months to 18 months to feel the full impact

of the system. there is concern. i think he is addressing it as the fed may be going too far. these were some welcome comments for the market. very welcome as we saw in the rise of the nasdaq and all the indexes today. >> some of the pillars of your strategy this year which was liquid alternatives. there was bond indices. does that come through to 2023 if we get a good fed pause? >> if the fed -- as the fed pauses, you will see that we start to moderate. we are already pivoting. pivoting in our own strategy to more traditional bond investment, more traditional stock investments, we never really fully left growth. so we would like a daily today. we were advised toward the fence -- defensive sectors.

we think in the coming year, depending on what we see, a lot of it will depend on how the fourth quarter earnings come in. her significant live for the third quarter. and those revised down estimates repeat. we need to see what fourth-quarter earnings look like and we are seeing encouraging signs from the fed and interpreting signs as we look forward. >> we saw a historic rally in chinese adrs as well. do you like that market? >> yes, we have international exposure in our portfolios. overseas exposure. it has been incredible. the u.s. listed chinese

companies are about 35% through today. 30% through yesterday just for the month of november. there are a couple of concerns we have about the foreign markets as it comes to china. it is what happens with covid policy and you spoke to that a little bit earlier on in the show. we are changing policy to maybe moderate the tough stance on zero covid policy. that is an imperative. that is important to the economy for china, the regional economies for emerging markets in general and global supply chains that are still suffering from the zero covid policy and implementation forms of shutdowns and almost all provinces in china right now. that is important. in europe, we know that whatever recession we see globally, if we see a recession here in the u.s. or europe, because of the energy crunch, that has been helped by some warm weather by the energy

crunch in europe, they will see a worse possession that even here in the u.s.. >> we will have to leave it here. thank you so much for your time. we have planned more to come. this is bloomberg. ♪

>> u.s. futures extending those gains we saw in the new york session. two consecutive months of gains for the first time since the summer of 2021. there is a lot of optimism given chairman powell likely signaling a slowdown in the pace of tightening. we have a lot more to millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line.

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>> this is daybreak asia. i am su keenan with the first

word headlines. we start with fed chairman jerome powell who says the central bank may slow its rate hike based as soon as the december meeting. palo said the timing is less significant than how high rates need to go and how long policy needs to stay at a restrictor level. >> the time for moderating the pace of rate increases may come as soon as the december meeting. given our progress in tighten policy, the timing of that motivation is far less significant. >> china's top official in charge of the fight against covid says the country's efforts to combat the virus are entering a new phase. this with the omicron variant weakening and more people getting vaccinated. this appears to be the first official acknowledgment that the virus is no longer as severe and

it also flies the prospect of more changes for the nation possible strict covid zero policy. the bank of thailand has increased its key interest rate by 25 basis points to 1.25% while raising inflation estimates for next year. policymakers repeated that they are ready to adjust the size and timing of their tightening. the central banks as economic recovery is on track while slightly lowering its forecast for this year and the next. and finally, the south african president is close to becoming the country's first leader to face impeachment. his job is at risk after he found ways to investigate and violated the constitution. he is accused of a cover-up involving millions of dollars in cash after a theft at one of its properties. lawmakers are scheduled to debate the report findings next week. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

request the president of the world bank says many countries will fall into recession next year with developing nations to bear the brunt of contraction here. he appears a lengthy slow down here. >> in 2023, we are going to see many countries and recession. right now we have both the u.s. and china showing some signs of weakness in the numbers that are coming out and that is a big challenge for developing countries. i call it a crisis facing development because there are so many people in the world living in countries that are not getting resources right now. they are getting capital. they aren't getting fertilizer to make food for next year. that is a giant challenge. >> i know that it is affecting your credit bid. how big of a factor in the risk that you described is what is

going on in ukraine? >> that is big. some is coming out of the black sea. the bigger issue is there was such a dependency on russia for energy. to make fertilizer, you start with natural gas and go from there. the crop cycle is getting disrupted. there is a big realignment going on for energy toward europe for this winter and even next winter. the contracts are extending out. that just means i am afraid this is going to be a long slow down for the developing world. >> the economic uncertainties and pressures are not felt equally around the world and your job is to look at the world overall. where do you see the biggest crisis points coming up? >> there is not capital flowing into the developing world. some of it is their own situations. they can improve that with better policies. a big chunk of it is the advanced economies are taking so much capital from the world

store or pool of capital. they are doing that defunded -- funded -- to find the fiscal deficits. i think the solution is more production. especially the advanced economies. they have the capital and the means to really ramp up production and that is still the missing piece. that is not happening right now. >> we have central banks, federal reserve's, boe, all tightening now because of the risk of inflation. is that putting even more pressure on that capital? >> capital is created by profit, people creating new things. the central banks don't really start -- stop that. i think they could do more to produce more capital in the world and make it grow faster. what they are doing is changing the interest rate. i think interest rates have been kept at zero for too long. there is this long repricing of

assets right now to reflect a more normal interest rate. >> the bank president with our colleague david westin. take a look at asian markets as they are setting up. we had that big jump in wall street all across equity markets and slumping bond deals as well. we see sydney trading higher. they are following that sharp rally. jay powell was signaling to slow down. his come really moved the markets, whether they were warranted or not. kiwi stocks are up i just about .5% at the moment. we also saw that big move when it comes to the dollar index as well fall into the lowest since august. a14 basis point decline, 10-year treasury yield's as well playing out across the asian bond market session as well. also watching out for not just a positive up in japan but also mainland markets and hong kong.

a downside when it comes to the morning session. we have been hearing from sam bankman-fried giving one of his first interviews into what went wrong at ftx, speaking to the deal books, new york, he told attendees that there were mistakes that he would give anything to do all over again. >> whenever it happens, however it happened, i had a duty to all of our stakeholders, our customers. i had a duty to our employees and investors and the regulators of the world. to make sure that the right things happened at the company and clearly i did not do a good job of that. i was shocked by what happened this month.

>> a very wide-ranging conversation. >> i guess we could probably start with a tone of the address because he was definitely quiet consolatory but he was also trying to distance himself in some ways from exactly what went wrong. he said he was deeply sorry about what happened but also at the same time he says he made many mistakes as you just heard there and that he underestimated the scale of the crash. he says they put everything together. this is something he also acknowledged. he really focused on the international platform.

clients were going on and using something as collateral. alameda was using leverage on this. this is the collateral that they had with the fbi's international platform. this is the amount of levers they had. his view was that it had 10 times more leverage or 10 times the asset in its position. >> what about this? >> he spoke extensively about this. not so much about this. in terms of the co-of funds, he says he did not knowingly come

funds but he really did dance around this topic, not giving much restraint -- much of a straight answer here. he said what he was surprised about was the size of the physician and that someone in the company should have been appointed to oversee it. in terms of the accounting mistakes, he says there was a substantial discrepancy here between audited financials and the dashboard displayed for the account. it substantially under displayed the size of the position. he says that they were more closely tied together than he ever imagined it would be. he did not have a lot of access to the data. that does beg the question of what -- you had the access. >> arguably this raises more questions as you alluded to. they had a bit of an investment in ftx. what did he have to say about the future of crypto?

>> basically not a great outlook that was given by larry. he says that a lot of crypto firms out there will go bankrupt in the months ahead. we are just continuing to really monitor the amount of contagion that is happening in this. he also addressed other crypto plays in the industry including block five. we were reporting on the chapter 11 filing earlier this week. this certainly is n these firms and that is something we are just continuing to assess. what is interesting in terms of the price on bitcoin, you just mentioned that we are seeing bitcoin rising little bit and other tokens in tandem. maybe there is that sort of signal that we are starting to get more of a distance between what happened at ftx and the broader outlook for the rest of the crypto industry. blackrock had around $24 million position on ftx.

>> the risk on really helping to support cryptocurrencies at the moment. what is the outlook from here on out? >> it is difficult to say. i think the big question for people in the bitcoin industry is exactly what is the next narrative here. i think that bitcoin in general is still trying to justify its use case. there is a lot of applications of blockchain technology. that is still point in the infancy stages. in terms of price action, she said it is being driven by other more macro pictures today. that is the risk on tone coming from the fed. coming up next, a mckinsey study says banks around the world have rebounded from the pandemic, making 2022 the start of a new era in banking. the details are next. this is bloomberg. ♪ do so many businesses use stamps.com? they save time by printing discounted

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>> mckenzie has just released its annual review of global banking and says the picture is far from pretty. as the economy slows, the company expects some bigger divergence between banks. joining us now is the senior partner at mckinsey and company. good to have you with us. tell us a little bit about the diversions that we are going to

see in the global economic growth and what it means for different banks in different regions around the world? request good morning and thank you very much for that question. i think this year has been quiet and extraordinary year for banking. a lot has changed. we looked at the entire area of the diversions between emerging-market banks and the developed market banks and we think that paradigm has changed completely. as we look forward, we think that while banks have benefited this from enormous tailwinds in terms of interest rates, there is -- that could be barely transitory. over the next year or two, banks could be facing significant challenges both given the economic headwinds as well as

the inflationary costs that come through. >> where will growth be concentrated in the banking sector marked who are the most vulnerable in 2023? >> what we are seeing is as we look at the next two to three years, there are 45 geographies. we see growth concentrated here. we have the rapidly growing bank markets. >> now we will talk about -- >> continue. >> i was just saying to your question of who will benefit from this, we see a bit of

dispersion. we looked at over 2000 banks. this is what we think will benefit from both growth and profitability. they do not have the adequate profitability or the growth potential. >> we have been quiet surprised by the degree of outperformance relative to the other markets. they are not only a global scale. i think that is what extraordinary we look at the

banking sector itself which is trading below book even at this point. one of the big things we have seen is that while banks have been profitable, the valuation simply has not moved. along with indonesia where the leading brands are significantly outpacing other institutions in terms of valuation multiples. >> the worst performer was china. covid zero is not helping a pre-existing property prices there. how do you see the prospects for recovery? what are the implications for the bank balance sheets? we know a nonperforming loan is often categorized in different ways in china. >> i think that is a great question. i think one of the things we spent quit a bit of time on is understanding the extent of the impact of the real estate crisis in china on the banking system. i think society -- i think

suffice to say that the real estate sector is the largest in the world. twice larger than that even of the united states. i think when we look at that sector which is in a crisis and almost 40% of that is financed by the debt, one of those questions we ask ourselves is if this poses a threat to the banking sector. we looked at their teen indicators and i think coming out of it we feel reasonably comfortable that the banking sector will be able to withstand the shock of the real estate crisis quiet well. at the same time, i think it will have an impact in terms of future growth. i think the growth challenge will continue as a consequence of this. the banking sector will be pretty stable. >> good to have you with us. the senior partner and mckinsey and company. this is bloomberg. ♪

>> we have japan capital spending coming through on the bloomberg. you're on your number coming and cried a bit higher and beating expectations. 9.8%. expectations with a 6.4%. certainly just about doubling from that 4.6% in the second quarter. stripping out software in that

headline number. it is still a jump of 8%. much better than the consensus of 6.2%. more than doubling from the 3.5%. also looking at company profits year on year. a jump of 18 point 3%, better than expectations, extending those gains from the previous quarter and we are still awaiting company sales numbers as well. those expectations are for 10.8%. some pretty heady numbers when it comes to capital spending as well as corporate profitability. this after we saw some of those other economic indicators including factory output dropping for a second consecutive month in october. we are seeing some parts of the economy suffering that global economic drag as japan cost recovery path remains somewhat patchy. some positive numbers when it comes to capital spending and perhaps the resilience for the confidence of japan inc. there.

china's easing locked as will help stabilize the global economy. mike henry told us exclusively how china's recovery property sector will offset wider economic pain. >> the 20 measures around relaxation of some of the covid constraints, we can see the combination of that along with the relaxation of some of the constraints that apply for the property sector. that combined with continued strong performance in infrastructure, autos and so on. we was a building demand for steel. keeping in mind that this is the fourth year of over a billion tons of steel demand already in china. we expect this will be a billion tons plus this year as well. >> we think that obviously china will be providing a bit of stability to global growth over the next year. as we see weakening growth in europe, we think that china will

be a stabilizing factor for global growth. will it add to a little bit of inflation? maybe. but we do see central banks stepping in and around the world to contain inflation in recent times. >> you raise a good point about recession risk in europe and the u.s.. what region are you most bullish on for 2023? what region are you most cautious on? >> keeping in mind that the majority of bhp's come out of china and china has such a big impact on global commodities. it is a market that we watch very closely. we are bullish or constructive in our outlook for china and long term but because of the factors i mentioned, china coming out of covid lockdowns, some momentum building in the property sector. we could see green shoots there. we expect to see a pickup in sales as well. we believe china will be a

positive for global growth in the times ahead. >> as we get the latest covid numbers from shanghai, reporting 197 new locals, beijing also reporting 5006 new local covid cases for wednesday. we continue to see covid cases across the country. as we are hearing a more conciliatory tone coming from health officials that will perhaps lead to more restrictions being lifted. so far, beijing recording more than 5000 new cases for wednesday. here is a quick check of the latest business flash headlines. the chinese ev carmaker sword in the u.s. as optimism grows. and listening covid restrictions in china. strong margins and production outlook are helping to soothe anxieties. morgan stanley says fourth-quarter delivery guidance implies a meaningful increase in december volumes. bloomberg has learned that the japanese subsidiary of the

failed crypto empire of ftx has put together a draft plan for clients to withdraw funds. this could be one of the rare cases of investors getting money back from the collapsed exchange. the proposal has yet to be finalized but centers are -- it does center here. this will start in january. cracking is laying off 30% of its workforce as a digital asset market meltdown worsens. the layoffs come just days after cracking agreed to pay some $300,000 in a settlement with the treasury department. the market opens in seoul and tokyo are next. ♪

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shery: this is daybreak: asia,

we are counting down to the major market opens and we could get support from the wall street close, the highest in two months. this is a chinese adrs sold a record rally this month. the chair powell signaling a slowdown in tightening pace helping market sentiment. we are getting the covid cases out of china they don't look great. haidi: they don't look great. at least we're hearing from the top health official, perhaps a new one -- a new softening to opening, which may lead to a path towards a reopening. we're seeing the optimism in asia, a lower dollar affect is playing out when it comes to currency, as well as risk currency, like the kiwi, the aussie, putting .5% apiece. shery: breaking news out of south korea. we're getting the november trade deficit, widening to 7.0 $1 billion. this is a wider deficit than the

previous month. perhaps not that surprising. he is coming out in the last hour saying we could see a trade deficit in november, south korean exports been hurt by truckers another strikes, pressure in the economy. november experts falling 14% year on year, which is much more than analysts had expected. imports rising 2.7% year on year, which is more than what was expected. this coming at a time when energy prices and imports continue to run. showing more demand domestically, but the export picture doesn't look great for an economy that relies heavily on these manufacturing goods being sent abroad. it shows what the global demand picture also is like at a time when we got korea's industrial production recording, as big, since the monthly pandemic. how are we setting up? anabelle: this is a

deteriorating environment in asia but in terms of the market reaction, we're seeing a risk on trading. we heard from the finance minister saying the korean economy may face more in 2020. what is driving optimism is what we heard from jay powell, cigna lie -- signaling, that they could be open to monitoring rate hikes in december and the month ahead. we're singh a big move for the korean won, higher today, a tone of risk optimism in the market or around risk. le't -- let's take a look at japan. we did see a move lower for treasury yields, even though they're just coming online. . the 10 year the pullback we saw in the dollar. the yen, coming in at this level. maybank saying their support is around 135.60.

after that we could move to a level of 131.60 instead. it's down to what happened in the fed, the address we have from jay powell. that is driving what we are seeing in the nikkei, up 1%. we're one hour into the trading session for australia. let's take a look at the asx 200, third day straight of gains, a seven month high for stocks. we do have oil coming online. it's fairly flat at the start of trade. but it is holding onto gains. two factors. yes, there is the optimism from the fed. he also have falling inventory. you can add what is happening at the china given we have the optimism around reopening still. shery: not to mention we have the opec-plus meeting this weekend. there's a lot for oil investors to be watching out for. let's ring in been powell -- bring in been powell from -- ben powell, from blackrock

investment. is warranted in the market, we're singh signals that the global economic picture may not be looking as healthy as before? >> good morning. we at the blackrock investment institute are a bit cautious. we think the rise in equities we are seeing is something the fed actively doesn't want to see, equity markets going up, translates as a loosening of financial market conditions. the fed's home messages they want to tighten the financial market conditions -- whole message, they want to tighten the financial market conditions. weirdly, i think equity is going up. we could see powell and the fed move even more hawkish lee. -- hawkishly. i thought the chair's comment were in line with that, that there is potential for them to go higher than what the market implied. at the moment, 5%, they may go

higher. it's possible, as equities rally. they might stay there. powell's message was quite hawkish. not so much in terms of the tapering or slowing pace. they might go higher for longer, because bringing inflation down is very important. shery: where are we going to see the bigger impact across asian assets, if that is where we are headed in 2023, what will be the transmission mechanism? >> we are already seeing it. the markets in a western slowdown are starting to see this. korea, small open economy. hugely related to global trade, is seeing dramatic slowdown in its exports right now. we're starting to see the slowdown come through in some of the more interest rates, australia housing may be is a clear sign, korean exports another. there's a critical point.

there is a lag. we are at a strange moment. i think about it, where between the lightning and thunder, between monetary policy tightening and we haven't had the thunder yet of the clear economic slowdown. we think this is inevitable. this is not theoretical. it's something guaranteed. this is what powell's messaging. do not get confused. we've had the tightening and maybe the economic pain hasn't come through, but it is coming. we should be clear, the fed are not just ok which is paying, the actively want to see a slower jobs market in order to solve the critical problem of inflation. we should not get confused. pain is coming. that's going to be a slight headwind at the moment for risk markets. haidi: does not confused strange time means it's harder to hold convictions next year? or are you more ready to move

quickly? >> we, at blackrock, we launched our 2023 outlook. it's exactly this question, it's time to invest in new investment playbook. we need to be more granular. more specific and where you investing -- are investing and make decisions often. it's a complicated world. the era of the everything bull markets was relatively straightforward. one needed to be broadly leveled long and so forth. that was the right playbook. we should be snooty. we are in a different situation, more complicated, nuanced. there should be differentiations. we think the role in particular, longer term developed market government bonds should play in the portfolio, is less obvious

moving forward, given we think yields are going to go up, which is to say government bond prices should move down. that's an example of what we think is a structural shift in market economic dynamics. as investors we need to recognize that, and moved to a new approach, which we appreciate is not trivial. it's hard. that is what we're talking about today at blackrock and the launch of our 2023 investment outlook. haidi: the conversation around the stickiness of inflationary basket has unaddressed the longer-term themes. you are looking at production constraints are result of demographics and aging geopolitics. these are big picture, longer-lasting risks. how do you invest around that? >> i think, firstly it is to recognize those are the drivers of inflation. we think it is a world shaped by

supply, over the last 30 or 40 years. the central banks have had a simple job, not easy but simple, of focusing on demand. now, the economy is much more driven by some of those supply constraints you mentioned. and critically, covid clearly has been an acute supply challenge as supply chains have shut down. but you're right to identify. there are other structural supply shifts that are ongoing. and are likely to lead to a more sustained, prolonged period of inflation. two clear consequences. one the fed is going to have to try hard. not just the fed, but the fed will have to try harder to bring inflation down. taht is what they are doing -- that is what they are doing. we're seeing this ongoing, hawkish movement. 475 basis point hikes -- 475 basis point hikes. they are going to have to try harder. ultimately they may not fully succeed in getting inflation

down to 2%. that last 150 basis points, that could be a judgment that the pain it will cause, the social disharmony of squeezing out that last 100 basis whines may not be worth it in terms of -- points a not be worth it. for us now, the messaging from powell is extremely clear. they will keep going until they see pain. haidi: you look at the opportunities in the outlier economies? australia looks set as a high probability to be able to make that soft landing. china, if it reopens, it accounts for cyclical growth next year, potentially? >> in terms of the two pivots everyone has been thinking about for ages, 12 months. we are not a believer in a fed pivot. china covid adjustment seems to be happening.

clearly that is a huge deal. hsci up 30% in november. something is going on that we as investors need to be cognizant of. that has implications not just for china assets but for the region and maybe for the global economy. i personally find it confusing. i want to be upfront. it does seem that china has moved to a more opening stance. it's going to be bumpy for sure. step forward and back. it seems like the case that china's moving to a slightly quicker pace of opening. . that is a significant change in perhaps -- at blackrock institute we have -- underweight in the u.s. and europe. an asia preference of that is associated with the potential for what we are seeing now over

in china. it's going to be confusing and bumpy. but if it's a move to an opening stance that the huge deal. haidi: ben great to chat,. ben powell. let's get to su keenan. su: ftx co-founder sam bankman-fried has denied committing fraud, while admitting to errors at the home of the bank crypto empire. speaking from the bahamas, he told the new york times beals -- deal summit he did not knowingly culminate funds. among the questions was how it ended up with an $8 billion hole in its balance sheet and whether it mishandled customer funds. >> whatever happened live, i had a duty. i had a duty to our stakeholders, customers. i had a duty to our employees. to regulators of the world.

to do right by them, to make sure the right things have beenat company. i didn't do a good job by that. i was shocked by what happened this month. su: sources say the eu is discussing capping the price of russian crude oil at $60 a barrel to secure an agreement between the blocks wider membership. eu talks on the level to cap russian oil. it's not clear whether all nations are open to the price level but most are if commands are met. discussions are ongoing. to indian -- india, the economy grew at a slower pace, accelerating at 613% in -- 6.3%. it's a sharp decline from the 13.5% the prior quarter and below analyst expectations as inflation bits into production and consumption. the chief economic advisers says asia's third-largest economy is on track in delivering gdp growth of up to 7% this year.

finally, former chinese president -- the former chinese president has died at the age of 96. he presided of more than a decade of economic growth following the 1989 crackdown on pro-democracy demonstrators in tenement score. china's -- tienaman's square. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries around the world. i'm su keenan, this is bloomberg. shery: bitcoin trading above the $17,000 level. what is moving across asia when it comes to crypto stocks? anabelle: taking a look at some of the crypto link players in korea. we had bitcoin trading above the $17,000 level. risk aversion we have been monitoring, given the expectation, of what powell will say. he has given a signal that they

are open to moderating rate hikes. bitcoin trading higher. we are seeing optimism coming into these players. there is the decoupling we are seeing between bitcoin prices and what is happening at ftx. that is a big story we are monitoring. if you take a look at the japanese exchanges, sam bankman-fried taking to the summit in new york to apologize for his actions and say he was unaware of any co-mingling of funds between ftx and alameda. we had a report out of bloomberg saying there could be a rare case of customers and japan getting some of their money back from the collapsed exchange. what we understand is a subsidiary of the ftx empire in japan could be putting a plan to use a platform called liquid to facilitate the return of assets that was start in january. it's not official as of yet. shery: still ahead, we will discuss asian fx strategies with ken cheung.

he things the dollar will remain soft a while traders watch the fed. china says it is entering a new phase in its quest to stamp out the covid-19. new signs beijing -- of beijing's policy change. this is bloomberg. ♪

>> we think that china will be a

stabilizing factor for global growth. china coming out of covid lockdowns, some momentum building of the property sector. we can see green shoots there already. covid restrictions are removed, we expect to see a pickup in sales as well. haidi: the hbcu ceo says there so much hinging on the china reopening. the top official in china says the country is entering a new phase with the omicron variant weakening and more people getting vaccinating -- vaccinated. for more, our chief china economist joins us. i will start off with you. what did we hear from health officials in beijing? >> meeting took place last night. of course, every time she utters a word, the whole country listens because in the past she has been very closely associated with very strict lockdowns this time she met with a panel of

experts to discuss the policy and identifying a need for a shift that policy going forward. stressing it is not as bad as it was in the past and talking about the potential of a fourth booster. these are signs that are very hopeful to many. i would caution we have been here before. we had our expectations raised. the details will be super important. the action is what we need to look for. shery: the fact that dynamic a covid zero has not been addressed. is that an interpretation of why we think they are softening their stance? could this be a response to the recent protests? >> right. you are correct. she did not mention that. i believe this was the second time in recent days that there was -- that term was omitted from serious statements. as to whether this is in

response to the protesters, people are going to jump to that in say ok -- and say ok, they are responding, but we cannot be sure that there is correlation. of course, xi jinping would want to make sure that people don't see that or take encouragement from the fact that if you go to the streets, policies might change. they have to walk a fine line between stating that they are responding to changes in the overall covid environment, rather than directly responding to the requests or protests on the streets. shery: we take a look at a potential exit for covid zero for china? what does that look like? >> baseline assumption is that china is going to ease measures gradually on covid zero policy's. perhaps by the middle of next week -- year.

the country will fully open up and the government will have to calibrate the pace of easing very carefully. if it opens up to slowly, the economic cost will pile up. you see the rising discontent towards the covid policy. yet if you move too quickly they could be quite heavy, public health costs, given growth being lifted. the government have to be careful -- will have to be careful. the government appears to be taking a more proactive stance towards easing. we expect, over the coming months, the government will take many easing steps including relaxing quarantine, the risk locations and rules for movements within china.

we do see the possibility, the likelihood, of increasing easing in the coming months and fully open by the end of -- by the middle of next year. shery: what are the risks of china's pivot living with covid? are there any lessons china can take from other countries reopening? >> in terms of the steps china is going to take, or the roadmap china will take, it's going to look very different from any other countries, many other countries take -- took exit tour you -- executive approach. gradually opening up to the non-essential sectors. in china because its current approaches very much focused on contracted cases and location

risk, it's not going to be able to take a sectorial opening approach. it's going to more than likely, relaxed different type of rules on quarantine and cross regional movements, and so on. shery: bloomberg's chang shu and collum murphy. you can get around above the stories that you need to know to get your day going in today's addition of blame -- daybreak, bloomberg subscribers go to dayb . you can customize your settings seeking get the news on the assets and industries that you care about. this is bloomberg. ♪

haidi: a quick check of the

latest business flash headlines. the japanese subsidiary of failed crypto empire ftx has put together a draft plan for clients to withdraw funds. this could be one of the rare cases of investors getting money back from the collapsed exchange. the proposal has yet to be finalized but centers on using liquid to facilitate the return of assets starting in january. crypto experience -- exchange crack in is laying off 30% of its workforce as the digital market worsens. 1100 people cut, the layoffs come they after kraken agreed to pay $362,000 in a settlement with the treasury department for violating sanctions on it. doordash shares jumps, it is cutting 1000 to 52 jobs to rain and expenses, after a rapid expansion during the pandemic room that led to mounting losses. operating costs top the $2

billion in the third quarter. sources say the cuts will affect 6% of the companies global workforce. chinese ev carmaker sword in the u.s. -- xpeng soared in the u.s. xpeng strong market -- margin production will help soothe anxieties. coming up, china mourns the leader at the helm of, during a period of massive economic reform, we examine the lessons from china. this is bloomberg. ♪

>> this is daybreak asia. i'm su keenan with the first word headlines. fed chair jerome powell says the

central bank may slow its rate hike pace as soon is its december meeting -- as soon as its december meeting. house said the timing is less significant, than how high rates need to go and how long policy needs to state a restrictive level. the comment summits expectations for a 50 basis point hike at the december meeting. >> we are moderating the pace of rate increases, as soon as the december meeting. given our progress in tiny policy, the timing is far less -- in the policy, the time is far less important than the raising of rates of inflation. su: country's efforts to combat the virus is entering a new phase with the omicron virus weakening and more people getting vaccinated in china. it's the first acknowledgment that the virus is not a severe. it flags the prospect of a change to the nation strict covid zero policy. the bank of thailand has

increased its interest rate to 1.1 he 5%, this will raise -- 1.25%. policymakers say they are ready to adjust the size and timing of their tightening. the central bank says economic recoveries on track, while slightly lowering its growth forecast for this year and the next. south african president, is becoming the first leader to face impeachment, after's parliament appointed panel found grounds to investigate him for violating the constitution. he is accused of a cover-up involving millions of dollars of cash, after a on his properties. law makers will report the findings next week. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries around the world. i am su keenan. this is bloomberg. haidi: let's take a look at some of the asian manufacturing pmi's

crossing bloomberg, giving us a broader picture as to how the factory activity side of things are looking, across the region. we heard some downside sentiment from south korea, early today, talking about the possibility of downside pressure when it comes to exports. it's a mixed bag. japan continuing to be in contractionary territory. still, we are seeing that slight deterioration, from the previous reading. a bit more resilience coming from thailand, still above the level that marks expansion. indonesia, you can see the moderate rating from the levels we saw on october. south korea as well as myanmar, contractionary. the philippines showing strength, just modestly accelerating at 52.7. let's look at broader markets. the focus has been the nuance

around jay powell statement about when we might see that pause. >> that's right. that is the major seen that we're talking about, what happened with the fed and what is happening in china. what you can see in the pmi readings is there is the diversions we are seeing around countries that are more exposed to china and can really gain from china's reopening trade. these are more of the north asian countries that have more of the tech heavy exports, compared to others like the commodity trades in southeast asia. we're seeing the change of fortunes in the stock markets, given over the month of november, we saw north asia, a rotation back into this region, with the likes of taiwan, korea's index outperforming southeast asia, beaten by what is happening in china. we had the big run-up in the msci china index. south korea and taiwan, both of

these countries do have china as their largest trading partner. they're also very much in line to benefit from any sort of rotation back into the cyclical sectors. other terminal charts, that bullish case around south korea and taiwan, it does rest on if china can sustain its reopening path. we have seen some earnings downgrade coming through for this region. the question is when they are exposed to what is happening globally in the risk to recession. we are risk on in the trading session. there is the china reopening trade. and what happened with jay powell. shery: sticking with china. haidi: the country is more during -- morning the leader who presided over a decade of economic growth following the 1989 crackdown on

proto-democracy -- pro-democracy protesters. we will discuss his legacy after this look back at his time in office. >> china went through a key period of growth and modernization marked by the opening economy to the outside business world. pick for the top job, he led the country from international condemnation to economic a claim. during his time as head of the communist party from 1989 to 2002, china's economy more than tripled in size. millions of rural workers were finally able to live and get jobs in cities, as the iron rice ball system tying them to work unit was dismantled in the 1990's. by the end of the decade, beijing and washington signed a landmark deal, opening china's market to the west, paving the way for a long awaited entry to the wto in 2001.

that achievement was matched in the same year when beijing won the bid to host the 2008 olympics. in the years to follow, foreign investment surged. real estate construction boomed. but, while jiang was liberalizing the economy things were not the same in politics and society. tentative moves towards greater democratization stalled. and he crawled -- called the crackdown on the movement. as economy grew so did the wealth gap. jiang spoke english and made big efforts to build relationships with the u.s. >> i asked him if he were to questions. >> he visited bush's ranch in texas and rang the opening bell at then united -- new york stock exchange in 1997. he brought a liberal streak to china's reforms with the assistance of zhu rongzhi, they

implemented a lot of things that move china the direction of markets and openness. he was in power when hong kong returned to chinese rule. he was succeeded, as general secretary of the communist party and china's president. shery: let's bring in our correspondent, rebecca. we've just heard the accomplishments of the late leader jiang zemin. tell us about the implications of his death in this broader economic picture for china and their president xi jinping. >> absolutely. in the normal sway of things, although jiang, is a venerated figure in the commonest party history -- communist party history, this would have been a traditional period of national mourning. but the timing of this complicates the issue, because of the very widespread and deeper frustration around covid zero that we have seen, along with the protests breaking out in many of china's major cities.

historically, in china, the death of a leader has been a reason for chinese people together. and there is a concern that potentially, over the two week period of morning we typically see, this may give an opportunity for protesters to rally together. we've seen a heavy police presence. this will be something that authorities are looking at very closely. the timing also highlights this really significant difference between the era that jiang presided over, characterized by openness, economic prosperity, with the period that xi jinping has presided over the last three years. haidi: from 89 to this year, the book ending years of a period of extraordinary introductory. chinese exceptionalism when it comes to the economy. huge amounts of challenges for

policymakers going forward from this year. >> yes, indeed. there's a tension between the hope and the optimism that was felt by the chinese people, during jiang's rule and even after, versus the feeling and low morale across china today. that tension continues to preside this nostalgia for an era of the past when it is seemingly very little to hope for. we had some of the signs that covid may be lifting. but in general the mood and sentiment is quite dampened in china. haidi: our asia government and politics correspondent, taking a look at the years of what we sa w, the governing rule of jiang zemin. nato secretary-general stoltenberg, says the alliance to not repeat the mistakes and made with -- it should not

repeat the mistakes and made with moscow. ukraine has made great strides against russia but more help is needed to sustain the progress. >> this is about ammunition to the existing systems because there is in a norma's -- enormous consumption of ammunition. it's about maintenance and spare parts. it's not all about throwing in newer complicated systems. it's about ensuring that older weapons are delivered in operational, function and have ammunition to play the role that they're playing. >> i know you don't -- the times he of spoken some of your -- the times we have spoken some of your predictions are accurate. he said they are ready to invade. a few month later you told me this is a sticky war. my next question is, not just length, it's impossible to predict, but in terms of what you see, how long can russia sustain this war? when you look at combat ready troops they are already there and ukraine, the army has been badly hit, the ability to

produce new weapons takes time. i has been a mess -- it has been a mess. how long can russia fall -- fight this war? >> russia has suffered heavy losses. they have seen the weakness in the russian armed forces. we should not underestimate russia. they have mobilized hundreds of thousands of additional troops. they are trying to get more ammunition weapons from other countries including from iran. and russia has proven that it can take high casualties. we're not underestimating the capabilities of russia, the number of troops, and what they can inflict on ukraine on the population. that's why we need to step up and continue our support. >> do you by the narrative that we win, russia wins, or world war iii? >> this war will end up at the

negotiating table. what we do know is what will be the outcome of the negotiations is absolutely the link to the strength of the battlefield. if you want to negotiate a peace solution we need to support ukraine, so they can achieve an outcome of negotiation which ensures ukraine prevails as a sovereign nation. >> final question. i was struck with the amount of times you mentioned china. is this because you are worried the lessons and trade security and russia have not been learned or are you afraid of a similar situation happening in taiwan? >> i believe in free trade. i believe nato should continue to trade with china. the problem is we cannot only make these decisions based on commercial considerations. we have seen with gas from russia, it's not a commercial decision. it has dire consequences for our

security. over dependency of commodities from russia makes us vulnerable. we should not repeat that mistake, when it comes to china. shery: begin stoltenberg -- stoltenberg with a reporter. chief asia affect strategist, ken cheung, joins us, next. this is bloomberg. ♪

>> for starters, we need to raise interest rates to a level that will return inflation to 2%. we anticipate the ongoing increases will be appropriate. it seems to me likely the ultimate level of rates will have to be higher than thought at the time of the september meeting, the time for moderating rate increases may come as soon as the december meeting. given our progress in tiny policy, it's likely restoring price stability with holding policy at a level for some time. history cautions against prematurely loosening policy. despite promising developments, we have a long wait to go to restoring price stability. shery: the chair, jerome powell. he expect the dollar to remain soft as investors fixate on the feds a slowing rate hike while downplaying the higher terminal

rate. joining us now is ken cheung the chief asia affect strategist at mizuho bank. how much weakness do expect in the dollar about a potential pathway to pause? >> yesterday, he was still stressing the medium-term rate hike path may be higher than he expected. i think markets are more interested in the slowing pace in the soft term. he has confirmed 50 basis point hikes in december. the market -- they were being wrongfooted by the fed. over this year. even though powell is warning of higher interest rate paths next

year, markets are still focusing on the slowing rate hike pacing. that's why u.s. remain soft. until the year ends, there was some repositioning for the u.s. dollar. it has an uptrend so far this year. the downward momentum will continue in the near term. there will still be some down sides for the u.s. dollar. until the fomc meeting reviews the rates are projected. haidi: i want to throw up this chart. as we go into the end of the year, but also looking at the next year, asia fx is falling into favor again. analysts are favoring this region, setting the stage for the for the rebound. so much of it is continued weakness in the greenback. do you have any preferences out of asia fx?

>> i think in asia, we saw that all of the dollars has been weakening against the u.s. dollar because of the aggressive rate hikes. if the u.s. dollar has been -- there will be soft term rebounds on the u.s. dollar in improving sentiments from google equity selloffs and as well as a neighboring path between the monetary diversion see. we saw strong momentum in the korean won in the near term, because of the close correlations with global sentiment, as well as exposure on the china reopening. in the near term, it will be quite good to look at the korean won rebounding. so, until next year, i think china reopening, and u.s. dollar picking up, will be the major

themes of the asia currency. if you look at the tourist -- tourism reopening, it will benefit the currency. shery: the korean won you mentioned the exposure to china and the broad risk on sentiment, how long can this last one the actual trade figures, an economy that is dependent on exports do not look great and they seem to be deteriorating? >> i think in the near term, to the year end, i will see outperformance in the korean won. next year, if the recession hits the market, and the weakening of export momentum, could affect the korean won. korea signal they would finish their rate hike cycle. the u.s. dollar, korean won, the diversion see may continue for a while. this could limit upside for the

korean won. i think recently, the won -- the performance may not be as a strong in the near term next time. shery: is that the same narrative for the japanese yen? we are coming off the best monthly gain since 2016 against the u.s. dollar. at the same time you continue to see the fed boj going in opposite directions. >>. yeah. . his term ends next april. i'm wondering if there will be notification for the loosening of policy. but it looks like, even though it exceeds -- i would try the loosening policy, there defense will continue between the u.s.

and japan. they will -- [indiscernible] shery: ken cheung from mizuho bank. we will look at the -- china, hong kong market and the mainland markets open in a few minutes. chinese stocks continue their historic lime. this is bloomberg. ♪

shery: we are getting more on covid cases across china. reporting 6084 new local cases for wednesday. guang joe reporting -- guangzho, reporting over 6000. we saw beijing with over 5000 cases. the optimism for a potential reopening, leading chinese stocks in the u.s. -- let's bring in our chief china market correspondent. there is a lot of market optimism, especially given chair powell signaling a slowdown in tightening. yet you get these a covid numbers and they don't look great. >> yes. it's all about signaling, here in hong kong and china. the signaling we're getting from

china's top leaders as they are talking about covid in a different way. they are softening their stance. that is what is creating this optimism of the market. it's fast money driving this. you talked about the moves in november. they were fast. jsut the number -- just the number of superlatives in hong kong the chinese stocks listed in the u.s., it was a record month in so many levels. wwe're -- we're watching a stronger open in hong kong and the mainland. take a look at whether the won breaks past seven. that is a key number. it always has been. it's very, very close to strengthening path that, especially after powell's comments. haidi: talk to amia -- talk to me about this fast money rally. the cycle starting to build. >> yes, exactly. in november, because the market was so bearish, in october, let's not forget it was a record

selloff in many ways. you have the mean reversion, the short covering came first and then you had the speculative strategies come in. the asia based hedge funds chasing that rally up. now you're starting to get the more sticky long-term money being forced to chase this. when you see moves, chinese property shares rose 61% in november. you have your clients asking you, wire we not into this and that is what is what will drive the next leg up? haidi: still leap of faith thought. -- though. investors tell us about the split between beijing and local authorities on managing covid. this is bloomberg. ♪

david: good