damian sassower on emerging markets.king around the world and looking to the fed, may be the hardest job in central bank and, except we don't know who is going to have that next year. tom: i do want to say, at least the medical people tell us the pandemic overlay of economics -- overlay on economics. jonathan: it was a tight decision. not much encouragement from this fx market right now. lisa: i do wonder what traders are looking for. do they want the central bankers of south africa, certainly of turkey, to tighten to cigna signal -- to send a signal? or are they going back to the dollar because it seems like the fed will hold for longer? jonathan: the dollar lira is on a different planet, through 11 at this point. we have seen it again and again. how many days is this now on the turkish lira? tom: i don't know. it reminds me of damian's powerboat he's got in the hamptons. who names their boat log convexity? jonathan: thank you, tom. futures up 10 on the s&p, advancing 0.2%. from new york, this is bloomberg. ♪ ♪ this is

damian sassower our with us with his wonderful knowledge of em. paint the picture of it is temple of another time and place where there was the saint regis hotel in the burgeoning international excitement and at the top was a rooftop deck and wolfgang puck's restaurant and all of the other excitement. it is gone. what does a cratering currency due to an economy? what does it do to your financial city? damian: you're asking two questions. harkening back to a prior lifetime, turkey was a vibrant economy. they had electronic shareholder and voting and convocations. that is a different story. in terms of what is the weaker lira made to the economy, the central bank is useless in its attempt to stimulate growth. confidence had been lost for a long time but at least people were still transacting, they are no longer doing that. locals are off the market. 11 straight days of negative returns, down 43% year to date. the good news is it is only down 30% if you do not count some of the kerry. -- some of the carry. tom: to prepare for damian sassower i looked

what did you ash damian sassower -- damian sassower of bloomberg intelligence has more. what did you see? damian: a pragmatic approach, but really, it is all about the economy. this is about getting the removal of tariffs so president biden can get his domestic house in order. in the case of xi, he needs to get growth moving in the right direction. we are calling for 5% year-over-year growth ahead of the party congress, where he hopes to secure a term as leader for life. if you look at the price action today, you see dollar we getting off of the news ever so slightly, and you would have thought you would see the five-year credit default swaps for china come in, but it has actually risen and widened a bit. so the markets are still trying to digest all of this, but the feel-good vibe is there for sure. guy: which is going to be interesting to see how we work our way forward on this because there's a good feel to the discussion, but i don't feel there was a lot of concrete stuff coming out of it. when we get to the concrete stuff, the feel-good factor starts to ebb away a li

joining us, myself and kailey leinz, damian sassower, chief credit strategist at bloomberg intelligence you make of this souring of the chinese data that showed the price increases are getting to the end consumer. damian: you are right. china is passing through the price increases. we knew ppi was the highest and 26 years but now it is passing through to other sectors that mean cpi will rise and that is not good news for an economy that desperately needs liquidity and policy easing. our inflation needs limited scope of the pboc to cut rates. what is interesting is china's pmi fell while most of the pmi's across asia rose and were stronger over the month of october. australia, india, indonesia, all of stronger pmi. an outlier that china had weakness. lisa: we will get into the idiosyncratic factors of china and how they might be affecting other countries in the region. the idea that if inflationary pressures are so prevalent, that will tie the hands of the people's bank of china, how much they can ease and try to unite the economy. this is the dilemma seen across the emerging markets com

damian sassower joins us now. 100 basis point cut. surprised or in-line? in-line, but what i am surprised about is the move in the lira. we talked about this before. erdogan tries to pursue his dovish policy. he then basically starts cutting rates. they have to dip into their ethics reserves because the currency is -- their fx reserves because the currency is depreciating too quickly. the moves we are seeing here, these digital binary moves qamar beco -- moves, because they cannot step in. many have been out here talking about it for a long time, so if you look at where the lira is come of the one thing i want to correct is down 3% overnight, they are looking at the spot fx. if they have the risk tolerance to invest in turkey, if they are investing in a way where they can extract the interest-rate return, that -32% year to date turn in spot is only -16% when you take into account the fact that there's an interest-rate return at the front end of the curve. guy: are we about to come to the end of the cutting cycle? there was a hint about that within the state

here with more is damian sassower.his comes as we are looking at the layout of what the government is going to look like. damian: and amid a troubled property sector. another day, another default avoided in china, so that is good. we saw a lot of rhetoric in the local chinese periodicals overnight talking about the relaxation of lending to the mortgage sector. what china did last night is they released monthly mortgage lending data for the month of october just to placate the market, but you're right, the summit is going to be obsolete critical. we are going to focus on tech and trade. congress sent a delegation there yesterday which was not received very warmly, and there will be a range of other factors like human rights. lots to discuss there, for sure. in the wake of the climate accord that we seem to have reached last night, renumber, it was a bilateral agreement between china and the u.s. which preceded the paris accord in 2015, so this is a step in the right direction following cop-26. guy: great stuff. thank yo

annmarie hordern, damian sassower. what was the process like to get here? do we know what happened behind closed doors? annmarie: we knew the president spent at least an hour with each individual, and his allotted time went over with governor brainard. it was clear that these were the two top individuals for that spot. he also spoke to a number of senators, including senator warren who was at the white house recently, senator sherrod brown, who will be the first line of organized net panel for a hearing for these individuals as early as december. we have been waiting for this decision. prior administrations have made the decision earlier, so this is coming a little late in the schedule. perhaps they were waiting to see if they had the votes for these two. sherrod brown has said he but either of these candidates would be able to get through. i would just look at their past numbers. it was 84-13 when governor powell became chair powell, and in 2014 -- and things have really changed since 2014. governor brainard, hers was in the 60's, so potential he she did n