bill dudley says the fallout from china real estate will not stop the fed on his track to taper. it has just gone 6:00 a.m. in london, mark you are in singapore, where it is later. markets perhaps more optimistic, is the? worst of it over? -- is the worst of it over? mark: they are a lot calm her, that is a good sign. we have stabilized, and i would not say there is much optimism, sentiment is fragile. yes, hong kong stocks are little softer today, japan stocks weaker because they are playing catch-up after monday, and crypto is softer, but generally it feels like people are nibbling at the idea of buying the debt, just not enthusiastically. dani: we will talk about crypto later. i can't wait until you give the explanation for why crypto has crashed. i know you have the explanation. mark: absolutely. no, i do not. dani: we are an hour away from the start of cash equity training. let's -- equity trading. let's talk about the sense of calm you're talking about, ftse futures up 1/10 of 1%. the big large caps ended more than 2% yesterday. we have ftse 100 up more than 1%, and dax up,

and bill dudley says the fallout from china real estate will not stop the fed from signaling its own track to taper. shell sells its permian basin for $9.5 billion as it plans to distribute $7 billion to shareholders. good morning. my favorite line from reading, was yesterday a rational de-risking, were we already traveling at extreme altitude? that is a very lofty call. good morning. tom: and we talked in the past how this is been an unloved rally, and that was permeating what we saw in the price action yesterday, but it is also reflected in the positioning by stocks traders around some of these defensive derivatives. we can show you a chart that shows demands, the skew chart, it is the steepest since 2018. these stock investors have been hedging this rally. manus: hedge meet up before you go-go. channel my inner wham! here is the debate. ivanka of edge versus morgan stanley. this is what he had to say in terms of buy that bounce, you had the worst rout in 16 months, but here is what he said, the market selloff escalated overnight, i merely technical selling flows but the primary th

bill dudley, bloomberg opinion columnist and former new york fed president. this market is down 78.wn 1.8% on the s&p 500. priced shapes narrative. right now we have a single morning where we are down and down hard, -1.8% on the s&p 500. tom: we have the narrative and nuance of the bloomberg terminal. there are important nuances, including inflation-adjusted 10-year breaking -1%. you know i go to euro swissie, and i see swissie strength. i'm going to call it fractional. there rt leaves here showing consolidation and not contagion with the linkage of this verse is idiosyncratic moves. jonathan: if you are worried about china, where do you go in europe? the dax is down almost three percentage points. lisa: where do you go for safety and equities? i was looking at the nasdaq, down almost the same as s&p in premarket trading. even though you have bond yields down, the idea of the safety stop and equities not performing that way. tom: you go to bitcoin. jonathan: what is bitcoin doing? tom: it is on fire today. jonathan: amazon down in the premarket. i think that is the point lisa is try

shery: that was a senior advisor to bloomberg economics, bill dudley.ashing to price in the risk, this could derail economic growth, -- rushing to price in the risk. let's bring in the captrust ceo, mike. tell us about the last bit of exposure. mike: yes, i mean, we were nervous about what happened to jack ma, right? where in the world is jack ma? and we made the decision at that point that the regulatory environment appeared to be getting worse, and that is not generally a good recipe for investors. i think you are seeing that play out now, right? i am no china economist, but i do know when the government metals as much as the chinese government is meddling today and picking winners and, more importantly, punishing losers, you see what happens, so that is not a very complicated decision for us. if the large hand of government, particularly the super large hand of the chinese government, starts taking its revenge, it is time to move on. haidi: what is less clear and harder to price still is the contagion effect, right? you start to see this across the c

kathleen: bill dudley sees a risk of the federal reserve waiting too long to start addressing risingnd nation with policy steps. >> they are not going to react to small-market moves on that basis. i think at this point, it's premature to reach that conclusion. kathleen: he talked about rising inflation, the fed is trying to guard against that. bottom line, here is what they are going to look at and but we have to listen or. what do they say about transitory inflation? they raise their inflation forecast when they put out there new summary of economic ejections. taper timeline. are they going to start soon? we don't know. they are expected to open the door even if they don't give an exact date. how much is the delta variant expect -- affecting the economy? these are the key things we are listening for them to talk about. rishaad: tell me also, we had some talks of speculation, the reserve bank of new zealand, looking at a 50 basis point hike. that has been quashed by an official? kathleen: it was the head of the rbn who made it clear they were ready to take a rate hike step at the las

so we heard from the former new york fed president bill dudley say, you know what? the real estate sector, the market turmoil there, that may not change the cal laotian for fed policymakers. take a listen. >> they're not going to react to small market moves and then defer the tapering on that basis. they have to change their economic markets. i think at this point it's really premature to reach that conclusion. haidi: what could change is the path of covid. the virus, the vaccine rollout and these developments when it comes to the entry of foreigners in the u.s., the deposit in the u.s. will be essentially banning people that are unvaccinated to come in if you're a u.s. citizen you will be subject to extra tests. but opening up when it comes to fully vaccinated travelers coming to the u.s. sherfy, that good news when it comes to the data in terms of antibodies in younger children, right? age 5 to 11. that will be headed to the f.d.a. for approval as well. haidi: let's turn to sophie for what to watch as we head to the market open across asia. sophie: well, evergrand