enda: we are coming up pretty high levels in market valuations as well. don't think we are there yet. there is a degree of confusion among the global community trying to figure out what is going on here but as you say, the state media, these are the main signaling portals for the government. they are out today saying that you are reading this policy wrong, not looking at the fundamentals of the economy. there is no systemic risk here. they are trying to send a soothing message. concern is where does the crackdown go from here? we already had tech and education and property to some extent. there is concern with the health care sector and others. again, even if that is part of china's longer-term economic strategy and ambition, it is getting lost in translation with the rest of the world so no doubt risk of further volatility ahead, prices going up, and investors selling. it will be important to see whether or not this stuff goes down, whether or not china tells a message that this is about longer-term economic growth or people interpret it as policy shock.

enda: it is not a broad-based easing, haidi.t is not a signal from china that they are opening up this bigot again. we know that. we have to say it is a signal that they are worried about certain parts of the economy. it seems to be small and medium-sized businesses getting a hit from the commodities side of things given the prices they are paying. it shows that there are parts of the economy that need support. china's economy is cooling now. it had a very robust recovery. things are starting to slow or plateau. on the consumer side of things, it is not back to where was pre-virus so it is something of a shock to people to see the signal coming from the fed council. it does not signal a state of emergency or anything like that but it shows that there are vulnerabilities in china's economy and underscores how long the road to recovery will be forever economy around the world, dealing with this pandemic. shery: enda curran with the latest and of course, we get more analysis on china's in nation data. the china economist will be jo

enda: this is the big debates, shery. there is one view that this was a preemptive move to get ahead of whatever slowdown was coming and others saying this is quite technical. the pboc saying they are sticking with prudent policy. what we don't know -- we do know is that li keqiang said small and medium-sized businesses do need support. we know that local governments plan to borrow and spend more, and we know now of course that the pboc is not sidelined with this rrr move. there are deliberate policy measures to make sure that the recovery does stay on track and as i say, the broadview at the moment is that there are headwinds out there. the recovery is slowing, but there is some support as well, not least coming from the export side of things. haidi: how much longer is the big picture question of how china can grow the way it has over the past, you know, years, given that we know demographics are really at play here? enda: an interesting point to that will be the retail sales data today. as you know well, the whole story

shery: good to have you on, enda curran.ur next guest says larger asian markets have done well on the reflation trade as the same inflation trends are not a concern. we are joined by belita ong, chairman at an investment company. great to have you with us. how long can we expect this goldilocks scenario to last? belita: the goldilocks scenario could last for quite a while. we are at a point where the central banks all over the world very much have a desire to keep interest rates low. unfortunately, we have not seen any significant, long-lasting signs of inflation. short-term, there are clear inflationary pressures because we are coming off a low base from last year. the thing to watch for, especially in the u.s., is that, whether or not inflation will be persistent. right now, there are lots of signs right down the road of companies offering bonuses because there are not enough people working when september rolls around and the extra payment from the government ceases and kids go back to school, we will see if people do come

haidi: enda curran in hong kong.hinese sovereign bonds rallied on monday. 10 year yields at an 11 month low. they lowered the reserve requirement ratio for banks. our next guest says he wishes he added more when it comes to china banks. and brad gibson, a lot of this is making me scratch my head. when it comes to china bonds, is there further to go? brad: there is. we are not overly bullish. we can see the chinese 10 year bonds are at the low end of their range. a little bit lower. it's at these low levels. the rrr cut has a massive injection of liquidity. the permanency of that move and potential for more does signal that they have adopted a more cautious stance for the economy. there is room for rates to rally further. at the very least, it has reduced the tightening. many investors were positioned for inflation to be higher, for bond yields to rise. they will have to reassess their positions. it has removed that risk for the china bond market. haidi: when you take a look at the opportunities based on policy diverg

enda: no sooner do you make these points and people turn around and say the pboc will only go so far. in their own statement friday night, they said they are sticking to monetary policy. they are not signifying broad-based easing. there are technical aspects in that there are some funds that need to be rolled over. the bigger picture has to be there is still a shift, an unexpected one. the council spoke out about the need for smaller and medium-sized enterprises. there was a 50 basis point push to banks in all sectors of the economy. it is not a broad-based easing, but it is a shift number and a notable one. haidi: always great to have the context. let's get you over to vonnie quinn for the first word headlines. vonnie: a governor says monetary policy could be tightening next year, including interest rates moves. the central bank kept it at a record low since february. the strategy is to gradually reduce liquidity in the financial system, where he says a rate move could happen if policymakers -- inflation and ongoing recovery. >> the next year, there might be some -- but this is reall

haidi: bloomberg's chief asia economics correspondent, enda curran. a look at the markets with sophie. sophie: early in the session, the nikkei 225 losing .10%. jgb's losing ground. overnight in treasuries. the surprise jump we saw in u.s. inflation that had market abating of the fed may respond. checking out the open in seoul on the back of the latest jobs data. 3.7%. kospi losing ground. the korean won trading now. climbing above the handle against the greenback. start of cash trading in sydney. we have stocks on the back ever so slightly after a big laggard. probably the most since may 11. apple and goldman working on a pay later service. and we see vons and focus of the back to back inflation report. the aussie 310 year yield moving higher, steepening. the kiwi dollar trading near ahead of the policy decision. we will see if there are any clues around a path for a rate hike from new zealand. brent staying above the six dollars. softening, retreating from a 33 month high. we could see even tighter supplies for the physical market. when it comes to