country garden has been selling off assets to try and raise cash.gotiating with creditors to restructure its debt and delay payments. the problem is its apartments aren't selling one of the few ways it can raise funds. pre—sales on unfinished apartments, an important indicator for future revenue, are down 81% from the same time last year. evergrande is another giant property developer. it has even more debt than country garden. $300 billion worth of liabilities in china alone. authorities have launched a criminal investigation into its billionaire founder. it's been trying to restructure its debt for two years, but those discussions haven't gone well. and now investors say the company is so big and so indebted, it is at risk of what they call a messy collapse. the struggles of both these companies have put more pressure on china's economy, which is already facing a widespread property slump, a decline in exports and weak consumer spending after covid—i9. even though both country garden and evergrande were thought of as too big to fail, there is no s

now we were just told that country garden has not defaulted so far. operty sector in china has been one of the primary concerns as the country looks to try to boost its flagging economy. it is a story we have been tracking closely, and as you heard, country garden has not defaulted so far. i have been speaking to an economist from moody's analytics, who explained what a default could really mean for the greater economy. the concern also from your reporting is that notjust country garden but also evergrande and other current property developers, if they continue to default on their international obligations, and their offshore bonds payments, that leads to, essentially, a lack of liquidity, because the burden of financing will turn to the onshore lenders, such as domestic banks, and also the property buyers that have to continue to find ends and repay their loans at this time. so the longer the uncertainty goes, the debt burden could actually lead to a problem within the domestic market, and that is where we are really concerned, as i have mentioned, th

it see country garden missing the deadline. . ., see country garden missing the deadline. _, . ., see garden missing the deadline. . ., deadline. it could create some 'itters. deadline. it could create some jitters- we _ deadline. it could create some jitters. we see _ deadline. it could create some jitters. we see that _ deadline. it could create some jitters. we see that in - jitters. we see that in previous months when there are chinese property giants in the headlines for the wrong reasons. that creates some anxiety amongst investors because the property sector is a source of weakness in the chinese economy more broadly speaking. so investors will be watching that closely, but i guess if we get some better numbers on the macro front it could change the headlines coming out in the coming weeks. if i could pull out of china for a moment and look at the overall picture developing globally and a lot of attention on the conflict unfolding in the middle east. what kind of impact are you anticipating that to have?— impact are you anticipating that to have? . ~ , ., that to have? the mark

country garden.solution to address a debt risk, taking various measures to alleviate liquidity. they wish to address the debt risk with a holistic solution. they are ensuring deliveries and operations as financial advisors. they reiterated the importance to offshore liability management. they have taken various measures to alleviate the liquidity pressure to minimize the impact on project construction and operations but the long-term healthy development of the group requires extensive support and that best efforts are being made. we are also seeing some comments about the cash position being under significant pressure but remaining committed to debt repayment obligations. shery, we have been hearing that a group of creditors have been in discussions with these financial advisors, looking to form a group ahead of a debt restructuring by country garden. we continue to monitor that company for you. >> benjamin netanyahu said military the retaliation against hamas has only just started and the conflict i

shery: and it is not just country garden.ee an offshore default by country garden, what market implications are we looking at? >> the market has been the selling off the on debt expectation that country garden will eventually default and we see so much struggle and had with paying the $50 million coupon that was due last month and if you look at country gardens maturity schedule, it has two more coupons that are due on dollar bonds this month alone and it has more next month so even if it is able to pay this upcoming maturity, the question remains if it will pay others. so it is not sustainable. a default scenario is a reminder that the property prices for china's developers is far from over. shery: loretta chan joining us from hong kong. in the u.s., we are just getting started with earnings season. big bank results this week with goldman sachs and bank of america. at j.p. morgan and city and wells fargo posted strong results. they warn of pressures ahead for the industry. su keenan joins us with the latest. morgan stanley l

country garden on the verge of the first default.ond holders saying they have not received the interest payment. that it latest as we look at country garden. equity markets down. yvonne: more clarity from bond holders on where we stand right now. basically, it is $15.4 million, the coupon payment that has to be made or a default will be called. they are teetering on a default. it has become a symbol of this property debt crisis right now. the silence is certainly telling. rishaad: it is deafening you could argue. yvonne: it is interesting the stock is doing that. the stronger gdp numbers are lifting parts of this market. rishaad: this grace period is ending. yvonne: credit investors are looking at this like it has already defaulted. what comes next? subtle signs that they are going into a restructuring. rishaad: how do you raise the money to do that? that is a question people are asking as well. a man to make sense of it all is our china credit editor. you will probably not surprised. but give us the low down. >> we're still waiting

we talked about the issues with country garden we will dive into that later. the bond market still matters. 2-year yield is 5.18, down three basis points. the flight to safety is seeping back into the market as is some of the inflationary story and monetary policy in the u.s.. the currencies are interesting because we are going to get u.k. data in a little bit in the pound, cable rate is 1.21 on that currency. the euro is 1.06. we are still talking about eurodollar parity. when the things cool down and the focus shifts back to interest-rate differentials, the euro is where you want to keep an eye. brent crude, a fresh bid given geopolitical tensions, higher by 2% just shy of $92 a barrel. there is a lot on the investor docket. there will be cpi later today and we are watching the cable rate closely. are we starting to see deceleration and inflation faster or slower? that will impact the currency story as well. we will get a preview with our correspondence lizzy burden at the end of the show. we get the beige book later in today's session which will give us ins

the the, the further flow to china's aiming property sector, as one of the biggest developers country garden inches towards a default. we'll take you inside the empty sky scrapers that once in body to the engine of chinese economic growth. also coming up on uncomfortable truths, why the you is buying more russian. ellen g than ever before. this is, do you have any business on kate ferguson? thanks for joining me. the crisis within china is property market is deepening as the country's largest private developer country garden. inches towards a default, the real estate time missed a key interest repayment on wedding state. fueling fears about it's longer term ability to pay back from $17000000000.00 worth of international loans. and potentially leading to a faith similar to advert crohn's, which filed for bankruptcy in new york earlier this year. china is property sector tends for a quarter of its total economic output. but slowing population growth drop in spending of a government clocked on on risky lending. practices have loaners the sector into crisis. the result, individual home owners fi

country garden inches towards a default. the real estate side missed a key interest repayment on wedding state. fueling fears about it's longer term ability to pay back from $17000000000.00 worth of international loans. and potentially leading to a states similar to advert crohn's, which filed for bankruptcy in new york earlier this year. china is property sector tends for a quarter of its total economic output. but slowing population growth drop in spending of a government clocked on on risky landing practices, have loaners the sector into crisis. the result, individual home owners fixing on property is declining in value developers with more units, then they can sell it's a common site. don't shiny sidewalks, these days, realtors, advertising apartments and self made signs. the problem no one wants to buy that can show who an hours drive from. badging. massive apartment buildings stands like concrete skeletons, 20 floors high. these apartments are supposed to be sold in 2020. some customers bought them as an investment, bu

china's property crisis deepens, with developer country garden on the brink of defaulting on its debt obligations. welcome to world business report. i'm marc ashdown we begin with the ongoing crisis in israel and gaza, and the impact it's having on financial markets across the world. geo—political tensions over the past week have put investors on tenterhooks — and led to a flight to less risky assets. meanwhile the price of oil has been rising — it's hovering just below $90 a barrel — but some analysts believe a spike is on the cards. today, the focus has shifted temporarily as earnings season in the us gets underway. our north america business correspondent erin delmore joins us from new york. what's the mood? the concern has been that this conflict in israel, between israel and hamas would lead to a widening global crisis that would threaten the global oil supply and that's why we have seen these crude oil prices rise in the last week, rising up 7.5%, marking its biggest weekly rise since february. this morning we are seeing that we can to steady and there are a couple of reasons wh

yes, country garden _ how far does this go? yes, country garden has - how far does this go?think it is very similar to what we observed two years ago the respect to ever grand. theyjust started. so i think the process as far as i can see will be very similar if we understand evergrande because they follow the same model. ~ . ., , , . because they follow the same model. . ., , , . ., model. what does this mean for china's property sector? - model. what does this mean for china's property sector? at - model. what does this mean for china's property sector? at the l china's property sector? at the bbc we have talked to families and people who have invested in flats that have not yet been built who are using huge amounts of money —— losing huge amounts of money —— losing huge amounts of money. amounts of money -- losing huge amounts of money.— amounts of money. yes, i think in terms of _ amounts of money. yes, i think in terms of the _ amounts of money. yes, i think in terms of the domestic- amounts of money. yes, i think in terms of the domestic loans, j in terms of the domesti

but now another developer country garden is in trouble. what's going on? yeah, so you said kate, a country got a, is now facing a huge problem. so yesterday, a trophy in hong kong time, a lot of fun holders. i told him media that they haven't received the interest payment of one of our country gardens, public salo bonds. so the clock is ticking. and we can say that contra garden has less than 12 hours to avoid a possible default, but exercising that is the, the fund really failed to pay. it will not be a surprise because it already was last week that it would not be able to me like, oh, the future. offshore payments applications is september. the companies so dropped by more than 80 percent, and people are saying it's not gonna look good for the real estate industry in china because most of the cells of country got in come from with margaret cold, 3rd and 4th, the cities. and if the price is brett, to be smallest, which is a means that china is pop, pop, putting market is in real trouble. this must be a huge source of concern for present teaching ping. he h

of fun holders are telling media that they haven't received the interest payment of one of our country gardens, public solid bonds. so the clock is ticking. and we can say that contra garden has less than 12 hours to avoid a possible default, but exercising that is the, the fund really failed to pay. it will not be a surprise because it's already one last week that you would not be able to me like oh, the future offshore payments obligations and set 10 for the companies. so dropped by more than 80 percent. and people are saying it's not gonna look good for the real estate industry in china because most of the cells of country got in that come from a, with margaret cold 3rd and 4th, the cities. and if the crisis, brett, to be smaller cities, it means that china is pop, pop, putting market is in real trouble. this must be a huge source of concern for presidents aging ping. he has been very busy hosting leaders from all over the world for the belt on the road for him invasion. i know you've been keeping an eye on that event. what has to that to you so far? so tonya leaders in pain today gave a op

the a further flow to china's aiming property sector as one of the biggest developers country garden inches towards a default. we'll take you inside the empty sky scrapers, that one's in body to the engine of chinese economic growth. also coming up on uncomfortable truth, why the you is buying a more russian l n g, than ever before a business. do you have any business on k, ferguson? the thanks for joining me. the crisis within china is property market is deepening as the country's largest private developer country garden inches towards a default. the real estate i missed a key interest repayment on wednesday. fueling fears about it's longer term ability to pay back from $17000000000.00 worth of international loans and potentially meeting to a fee similar to advert crohn's, which filed for bankruptcy in new york. earlier this year. china is property sector attends for a quarter of its total economic output, but slowing population growth drop in spending of a government clocked on on risky landing practices, have loaners to the sector into crisis. the result, individual home owners fi

of course, no word yet on what is next for country garden.seeing the hang seng down some 2% right now. there was talk about that tax duty, stamp duty cut. reduction not as big as expected. rishaad: absolutely. smaller than anticipated cut. i believe it is on the 25 of october that we are looking at the inevitable cut. not being finalized, though, the report saying. it does plan to maintain some of the cooling measures, but any steps taken are not likely to be enough to be able to lift up sentiment. we have high mortgage rates, and we also have many of these properties also suffering from the fallout of what we have been witnessing on the mainland as well. let's look at the macro movers. we do have, of course -- yvonne: not looking at dollar strength, but look at the rupee. it is blaring red. the highest we have seen since 2020. korean won continues to see weakness here. it has continued to be risk aversion across the board. we have plenty more ahead. this is bloomberg. this is bloomberg. before i started playing basketball, i was kind of quie

♪ paul: default is all but official for country garden after a statement that it does not expect to meetligations on time. china's former top builder has become a symbol of the country's property debt woes which have intensified pain for struggling homebuyers, workers and investors. let's bring in charlie. charlie, how are authorities doing with the situation? what will it mean for country garden and developers? charlie: that's a good question. everyone who has read the story can probably feel the anger and the frustration. so a lot of them have put their life savings down for apartments billed by country garden. after a year of waiting what they get is not key to their dream home. telling them that their projects, their houses are still under construction. the project where the house is remains a giant mud pit. that is the worst nightmare but for the chinese government, you know, the priority is to avoid, prevented from morphing into something like a big protest over home delivery or a new wave of mortgage boycott, something we saw in china in the summer of last year because the risk, f

the giant developer country garden is believed to have become the latest to default on its overseas debtld mark one of the country's biggest corporate debt restructurings. now this matters not just for the company but as a more broader gauge for the economy as a whole. earlier i spoke to duncan wrigley, chief china economist at pantheon macroeconomics and started by asking him if they had defaulted. well, we have not heard an official confirmation either way. i think there have been some reports in the media coming from creditors saying that they haven't made their deadline, which does suggest that they have defaulted. and rather unusual announcements being made on social media, what is going on there? well, there were some rumours flying around which the company had denied that its founder and daughter left the country. so, the company has refuted it so i guess we go with what the company is saying officially. why would that be significant? well, if they have fled the country that would certainly indicate a lack of confidence in the company's future and ability to steer past these debt

the giant developer country garden is believed to have become the latest to default on its overseas debtat would mark one of the countries biggest corporate debt restructurings. this matters notjust corporate debt restructurings. this matters not just for the corporate debt restructurings. this matters notjust for the company but as a broader gauge for the economy as a broader gauge for the economy as a broader gauge for the economy as a whole, the property sector generates more than a quarter of china cosmic economic activity and is an important part of household wealth. all adding to concerns over their post—pandemic recovery. lots of questions, and to answer those i am joined by the chief china economist at a microeconomics company. lovely to have you with us. first question, did they make the deadline? have they defaulted? weill. deadline? have they defaulted? well, we have not heard _ deadline? have they defaulted? well, we have not heard an _ deadline? have they defaulted? -ii we have not heard an official confirmation either way. i think there have been some reports in the media c

let's take a look at what is happening with country garden. warned that it does not expect to be able to meet its offshore payments and confirming it is hiring cicc as financial advisors as it seeks a holistic solution. what has happened today? what has the morning been in terms of the news? >> country garden has been foreshadowing the news in the past few months. it has warned previously several times that it may not meet its offshore debt obligations. there is really no surprise. country garden is seeking restructuring advice. they are looking for a holistic solution. we would hope so. the example of evergrande, the real risk is the regulatory risk with what the local government will do. or are they going to end up the same with what has happened with evergrande such as a potential liquidation scenario. rishaad: what about the creditors looking to form a group? what do we know about that? that could mean more unified action to get better results is the premise i suppose. >> offshore creditors have ad hoc meetings and discussions. the goal is

how do you see country garden missing the deadline? it could create some jitters.ve seen that in previous months when there are chinese property giants in the headlines for the wrong reasons, that creates some anxiety amongst investors because the property sector is a source of weakness in the chinese economy more broadly speaking. so investors will be watching that closely, but i guess if we get some better numbers on the macro front it could change the headlines coming out in the coming weeks. if i could pull out of china for a moment and look at the overall picture developing globally and a lot of attention on the conflict unfolding in the middle east. what kind of impact are you anticipating that to have? the markets are definitely watching it closely. in terms of geopolitical conflicts, that's been going on in other parts of the world for the last 18 months, so markets are getting used to it to an extent but we will definitely be watching for any signs of escalation or spreading of the conflict, so in terms of assets to watch, we know oil was very reactive las

that was country garden.ese property giant country garden missed the international debt payment. the developer was unable to pay the $60 million loan this morning. the firm does not expect to meter offshore debt obligations when they come due or within the grace periods. country garden is down 10% overnight. back to the current action. european markets remain firmly higher. very strong rally to start out the session today. largely on the back of the dovish comments from a number of fed officials yesterday and a retreat in bond yields driven by the safe haven demand with the conflict in the middle east. 1.6% higher for the dax. ftse 100 and spanish market up this morning. >>> back here in the uk, shadow chancellor ree reeves is pledgi growth ahead of the general election likely next year. reeves received endorsement from mark carney. he described her as a serious economist who with understands the economics of workplace and family. reeves said the party cannot tax and spend it'ss way to growth. >> it does not

sources say country garden creditors are in discussions with financial advisors ahead of a potentialructuring. bloomberg has learned that pj t partners are part of the talks. no decision has been made yet. bloomberg has learned one of china's largest trading houses for copper has lost contact with their founder. they believe he has been detained by police for questioning. the company was once china's biggest importer of refined copper fell into a liquidity crisis last year during an extended -- during extended covid lockdowns. haidi: the biden administration ruled out shipping key making gear into china. it was warned last year that escalating u.s. restrictions might force a company to close or sell a major plant in china. looking at stocks as trade opens in australia and the next couple of minutes. the competition watchdog conditionally approving brookfield's a $12 billion takeover of origin energy. that would be the third biggest takeover this year in australia. also watching other energy producers as the israel/hamas warheads markets. energy stocks in the u.s. getting the most in

yvonne: the cds panel ruling yesterday the country garden using that payment was a credit event.hat does that mean overall? >> the failure to pay credit event occurred on october 18. the company has not offered first clement october 18 instead it will meet its offshore debt payments. one thing the investment community is interested in is to understand the size and amount of how many and how much credit credit default swap product are out there so they can judge the impact on the broader market. looking ahead, some are getting with their own advisor ahead of a potential competitive restructuring. a massive restructuring would mean that this could undermine china's stability, because, as we know, more than 3000 of country garden's department products are in the so-called second and third cities, which are smaller cities in china. david: we have covered almost everything. china vanke the, country garden, we can't go without talking about evergrande. there is a hearing. what are we watching out for? >> people are working without the judge will issue an order on -- it's an order issue

they are still looking at other issues like country garden. if it signals a default event, credit default could kick in and i could have consequences across asia markets, not just for country garden and china as well. so there is still a lot of uncertainty sitting around the areas. it's no wonder that it's very hard for people to be convinced one way or the other here they know that yields will stay high for a long time in the united states that will be a big hurdle for them making decisions on the other asset classes, especially equities until they get some clear signals either that china will step in or you will get something positive coming from central banks may be another rate cut from china or somewhere else in the region but in the meantime, if this constant battle between bond and equity investors the highball volumes are going to will not -- are going to win out. it will be tough for people to think they can do better than just keeping money in cash and earning 5% of the u.s. yield. rishaad: and the risk-reward going up, the 10-year a

country garden defaulting on the dollar bond declared for the first time.ustee notice said this was an event default on the bond, the official wording. there was risk which is why country garden stock has plummeted into a penny stock. a lot of investors would say it was just a matter of time but now it has officially happened. country garden defaulting on their dollar bond declared for the first time. we will bring more headlines and comments as we get them. coming up, santander's net income these -- beat estimates. can the bank carry positive momentum into next year? we will discuss that with the santander cfo, jose garcia cantera. that exclusive interview next. this is bloomberg. ♪ kriti: welcome back to daybreak era. i'm kriti gupta in london. spain's biggest bank had better than expected third-quarter income. with us now is the cfo of banco santander, josÉ garcÍa cantera. let's get right into it scared these numbers are pretty strong. where is the biggest growth? josÉ: thank you for having us on the program. again, we have delivered another very strong

vonnie: derivatives that protect against a default by country garden were triggered after he not payter a in all of investment managers ruled that a failure to pay event occurred last week. their trustee deemed country garden on default for the first time after it missed a payment by the end of a time of grace. fidelity is seeking clearance that would allow mutual funds to operate as exchange traded funds. they challenging vanguard's monopoly after their patent expired. a gives mutual funds access to tax advantages of etf's, boosting after-tax returns. haidi: this is the picture when it comes to the fx session, a pullback in dollar gains that is benefiting key asian currencies. outperformer is within that space in the aussie and kiwi. that gauge curved earlier gains on the back of the drop of treasury yields. did not get the big surprise needed for a big move, traded lower and the ecb's decision is expected to keep rates unchanged for more than a year. dollar-yen is passed 150 which raises intervention risks. finance is watching the market with a sense of urgency but the weakness in

we've seen the demise of evergreens and the country garden is in trouble as well. how is the government planning on tackling this issue? well, they're not basically i, i think the attitude a cheated paying and the others is that they can't keep the property bubble going on. forever, so a lot of developers are going to have to go out of business. we know anecdotally that a lot of the smaller companies have gone under. now we're seeing some of the big ones go under. i don't think she can pin cares that much about these developers of the property sector. he's desperate to move the country into a new growth path. hopefully would something sexy like somebody, conductors or artificial intelligence or robots or electric vehicles, that kind of thing. but meanwhile, he's figures, if he's got to take the hit on the property sector, now he's going to do that. let's talk about another economic problem. china has use unemployment. one is 5 young people doesn't have. it's all we know trying that has a demographics problem. it desperately needs young workers to support its aging

we've seen the demise of evergreens and the country garden is in trouble as well. how is the government planning on tackling this issue? well, they're not basically i, i think the attitude a cheated, paying in others is that they can't keep the property bubble going on forever. so a lot of developers are going to have to go out of business. we know anecdotally that a lot of the smaller companies have gone under. now we're seeing some of the big ones go under. i don't think she can pin cares that much about these developers of the property sector. he's desperate to move the country into a new growth path. hopefully would something sexy like somebody, conductors or artificial intelligence or robots or electric vehicles, that kind of thing. but meanwhile, he's figures, if he's got to take the hit on the property sector, now he's going to do that. let's talk about another economic problem. china has us unemployment one is 5 young people doesn't have it's all we know china has a demographics problem. it desperately needs young workers to support its aging population. wh

country garden warned it could default on its debts if its financial performance continued to deteriorateg with china, a us delegation are both republicans and democrats lawmakers have met with chinese president xi jinping. with tensions between the two countries, both sides are paving the way for a possible meeting between presidentjoe biden and president xi in november at the apec summit in california. the meetings come as beijing officials have been trying to get the world's second—biggest economy back on track and have hopes the recent bank holiday, golden week, have pointed the recovery in the right direction. over the eight—day holiday, those who could made nearly 12 million trips, and that's for domestic and international travel. it's not got back to pre—pandemic days but an 85% recovery rate has prompted several economists to be hopeful of an improved outlook for the world's second—largest economy. i spoke to china—watcherjulian evans—pritchard and asked him what the latest figures mean. not super strong. but you have to remember where we were a few months ago earlier in the summe

that is the case with country garden and the clock is ticking for china's largest property developerfshore debt deemed in default if it fails to make a $15 million coupon payment. i have been speaking to the chance of starters north asia cheap investment officer on the implications. cheap investment officer on the implications-— implications. should there be another default _ implications. should there be another default this - implications. should there be another default this will - implications. should there be another default this will be i implications. should there be another default this will be of concern about the housing market in china. 0ver concern about the housing market in china. over the last three months, we have already seen quite a bit of mergers to try to support boosting housing demand here, including relaxing downpayment ratios as well as mortgage rates. but when we track the property sells numbers for the month of september, it did go up 28% month on month, but on a year—on—year basis it still came down 29%. so i think to back major trends of note — first, we h

as we get closer towards defaulting country gardens owes nearly $200000000000.00 collapsing, whatever would have significant consequences for china's economy. which is already suffering from record high use unemployment and flagging consumption. the writers guild of america, which is the union working on behalf of the film and tv riders across the u. s. has approved a new contract with major hollywood studios, the agreement, the ends of 5 months strikes the plunge, the industry into turmoil. it includes pay raises and protections against the use of a i and to poland, which is gearing up for general elections for the l. g. b t q community much is at stake. the government has faced international condemnation for it stands on the rights, same sex relations are not legally recognized in the country even so some businesses are trying to show support. the pink economy is thriving, dw, as jack parents went to meet an outspoken polish flip flop brand, in the warehouse of could be to in the western part of the city of large compared to it has been selling flip flops in poland since the mid nin

meanwhile country garden is facing a big test on tuesday with a payment due on an offshore loan. company had warned investors last week that it could not meet all of its foreign currency debt obligations. then in midweek we are likely to get china's latest growth figures for the three months into september, and analysts will be looking for signs that the world's second largest economy is turning the corner after a covid related slump. we will be keeping an eye on all of those developments later this week but also keeping an eye on earnings season for corporate america. financial giants goldman sachs and bank of america will reporting numbers on tuesday and all eyes will be on how the banking sector is performing when interest rates are at their highest level in more than 20 years. midweek, we will get the quarterly report cards from two of the biggest names in tech today, netflix, as well as tesla. investors will be looking out for the streaming giant's subscription figures and as the tesla, deliveries will be what the market is going to pay attention to. indian is top it service

that's the case with country garden.rgest private property developer, which could see its entire offshore debt deemed in default if it fails to make a $15 million coupon payment. earlier, i discussed the implications of this with standard chartered's north asia chief investment 0fficer, raymond cheng. this will reignite concerns about the housing market in china. 0verthe about the housing market in china. over the last few months, we have already seen quite a bit of support for boosting housing demand, including relaxing down payment ratios as well as mortgage rates. but when we track the property sales numbers for the month of september, it did go up month of september, it did go up 28% a month, but on a year on year basis, it still came down 29%. so i think two major points of note — first, recovery has been very uneven across our cities. we saw a better attraction in tier i better attraction in tier 1 cities than the lower tiers. second, we think that divergence in terms of sales performance would be very evident in t

how concerned are you about contagion from country garden? >> so actually the news about country garden, we already started to learn about it a couple of months ago, and i think going forward, i won't be surprised if we continue to see more by the developers. what i'm concerned is whether the sentiment of household, buying the property -- buying the property. if you look at the data of the housing sales in advance, we are really seeing a divergence between the two indicators. it seems they're pretty concerned about a glitch to complete the project and, therefore, we're seeing better momentum in the housing sales already. so i think going forward we see this more probably developing that are contained, and i think this will feel great under the buying sentiment of the household. >> michelle, let me go back to the data that we had. are there signs that the fiscal support measures and some of the other stabilization measures that were introduced by the authorities are having a potential impact on the economy, or are we yet to feel the full force

it said it's looking to deepen cooperation with the state-owned firm and on wednesday country gardent is set to default on the dollar bond after warning it would not be able to meet all of its offshore payments on time. shery: the apple ceo tim cook has won backing from china's economic minister for sharing dividends with the chinese market and he said china welcomes the tech firm and other multinational companies to engage in win-win development and china. this is tim cook second visit to the country this year, coming as apple faces sluggish iphone 15 sales. china could limit the use of its products by government employees are also a concern. we have breaking news the moment. we are getting lines that the u.s. is suspending some sanctions on venezuelan oil, gas, and gold sectors. this of course as negotiations continue between the two sides haidi: take a look at two of the big tech stocks we are watching after hours, a tale of two directions when it comes how to investors are feeling about to netflix and tesla. numbers missed estimates and gross margin roughly in line with expectati