enda: it has all been about the broader economy. has not been about the pboc criticizing stimulus in the western world. they are critical of qe and china has been trying to rein in the risk or leverage. that is why we are in the situation that we are in now. targeting those -- along the way , there will be some spillover. that is mostly coming -- it is about 20% of the overall economy. i should say, we also had some positive news. record shipping's once again from the rest of the world showing that the manufacturing story is going well. lisa: i do wonder when you talk about support for the housing market, how much of this hinges on evergrande's default? enda: there will be a big string. that has become clear now. they said they would engage with offshore creditors on a plan. there are a couple things going on. on one hand, it is clear that the government is not going to pay evergrande, and but neither are they going to allow them to fall over. we get something of a muddled middle. it will be complicated and it will take a long time.

enda: they are sticking to their path.overnment is talking about housing are for living in, not for speculation. they are deadly serious about tackling debt and leverage and financial risk. what they will do is make sure the whole economy does not tip over in the process of achieving that. we will see them push through pain on these big property developers, allow foreign developers to take some pain perhaps, they will ensure the real economy is captivated to your point about stimulus, there is export data from china, up gangbusters. the story remains one of a slowdown in chinese economy with a focus on it will estate sector, that's where the policy work needs to be done. manus: thank you very much. enda curran with the latest context on evergrande. let's bring in michael from peking university and senior fellow at carnegie. great to have you with us. a modeled middle is how our chief economist for the region describes the potential outcome for evergrande. if there is a restructuring, how important is that that they find a

manus: ok, enda, thank you very much, the proclivity for stimulus in 2022 from china.ing up on the show, u.k. airlines call for the this is elodia. she's a recording artist. 1 of 10 million people that comcast has connected to affordable internet in the last 10 years. and this is emmanuel, a future recording artist, and one of the millions of students we're connecting throughout the next 10. through projectup, comcast is committing $1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities. manus: this is "daybreak: europe ," i am manus cranny in dubai with the stories that set your agenda. the prime minister once u.k. faces a tidal wave of omicron cases as polls show the opposition party with the biggest lead in years. the fed is a highlight of a massive week for central banks, but powell is expected to kick off a faster taper to lay the groundwork for hikes. plus, asian stocks rise in economist predict china will add fiscal stimulus early next year, and that permeates across the glob

policymakers in beijing -- let's get more with bloomberg's chief asia correspondent enda curran.appy tuesday, what is behind the latest bumper trade data? enda: really not a strong reading, thinking the chinese trade boom would be cooling by now, but global demand for made in chinese goods continues to grow through the roof. we are talking about record numbers yet again. there is seasonality because of the end of the year shopping holiday season. and domestically, the power crunch easing off. there is really no problem on the supply side when it comes to china getting there good. that was self-evident. imports by bumper, that is not necessarily about a strong consumption story, that is reflecting higher commodity prices, which pushes up imports. i think the take away remains that china's exports are going gangbusters and they continue to be stronger much longer than most people expected. francine: what is the latest state of play for evergrande? enda: at the moment, everybody is kind of clock watching in terms of the repayment they have to make and whether or not they will make t

let's bring in enda curran.unique or special diversions that we are seeing between major central banks, and what is causing it? enda: i would not say it is unique. there has always been diversions through the cycles over the years. but that is a pretty stark one. all the central banks early in the pandemic were synchronized. thinking they had to do everything they could to support the economy. but the exit from that support is anything but synchronized. you are going to have the fed talking about tapering, maybe hinting at an interest rate hike. you have the european central bank, the bank of japan remaining doggedly dovish. the bank of england possibly tiptoeing away from expected rate hikes. the people's bank of china has already started to ease again. they have shifted policy in the other direction. so there is no doubt that while i would not describe it as unique, it is certainly underscoring how complicated the exit from these massive stimulus measures has proven to be because there is no clear path out. so

enda curran joining us out of hong kong.going to bring you pictures of president xi jinping having a virtual some with his russian counterpart, vladimir putin. the two sides at a point where geopolitics front and center in terms of the u.s. approach to both countries. the u.s. looking to line up additional sanctions on chinese companies, where vladimir putin has lined up troops along the border with ukraine. he's under pressure to avoid a further escalation of tensions on the ukrainian border. both of those countries' presidents meeting. we will keep you across any lines that come across from that. emmanuel cau let's bring back inemmanuel cau, head of european equity strategy at barclays, remains in studio. the slowing economy in china, but what are many are saying is a pivot in terms of the policy response. we saw the triple-r cut. the likes of j.p. morgan, goldman sachs saying now is the time to get more exposure to chinese equities. where do you stand? emmanuel: indeed. growth is slowing for sure in china. we have a mix o

enda: interesting thing is that the world, the emerging economy world, is expecting the tapering sidef the story. the fed is expecting to double the pace of its tapering. that's understood. what message will they send on interest rate hikes? we are seeing ppi going through the roof. will powell send a hawkish signal? that would send jitters through emerging-market -- markets. the potential to suck money away from developing economies. hang on, we don't know where were going with omicron. we have to keep an eye on the recovery story. tapering doesn't feel like the story. a lot of unknowns when it comes to what the fed will signal on interest rate hikes, how hawkish they will be. that will be critical not just for the fed story but for the spill over to the emerging economy world. manus: absolutely. we are ready for two hikes to be penciled in, three on the dot. an additional six over the subsequent two years. that could be the dislocate or. -- this locater -- dislocator. smic in an effort to limit the country's access to advanced technology. how's it playing out in the asian session? j

f gen a carne, stt.mark strassm cann,b aww,enda sthou carolina.>> tt hais the overnightew ns for thissd of, you the news continues. for otrshe,as plee check back telar for cbsor mnings and llow us oenlin at cbsncoews.m. reporting from the natn'ios cal,pita i m'major garrett. >>hi> ts cisbsew ns flh.as i liam ace gainer in new york. cdc announces shorterua qrantine restrictions. you testos piteiv for covid-19 arend a asymptomatic, u can leave isolationft aer five dayows dn from ten. cd offiaicls say this following grgowin evidencehe t virus is most infecoutisth in e two days be aforend three dafays ter tosympm onset. omicron stand or cmsontinue to disrupt flitsgh. strsaffe calling out sick due to covid-19e hav ltef aneirlis short.ai rline tracker flight aware shows more than 1,000 nceltilaons mdaony.>> resu.rechedfobuday t reer hi w e been postponueed d to c-1ovid9 conc.erns inging the t totalo 70 postponemed gasmos,nl toadhe cb anewspp on yourel cl onphe or cotennecdv. t mli ace ergain, cbs newsne, w york. >>> thiiss the "ovcbs erghnit ne."ws >> good evening, erevyone t,hank u forni joi

on china, enda curran joins us now. i do not know where to begin this discussion.t is a single thing mr. xi jinping is worried about domestically? >> the effectiveness of china vaccines. the report out of hong kong university saying basically their effectiveness against the omicron variant is pretty low. if that's the case that will certainly pressure china's strategy. it will surely suggest more disruption. consumers consumption is weak because of that. i think the variant holds up against vaccine will probably the biggest concern. we have more data pointing at the property sector. the depth and leverage story. lisa: we focus on china as is the world's second-biggest economy. some of the disruptions we've seen, it's a huge generator of economic wealth over the past couple of decades. how concerned is the people's bank of china over the retail sales way below expectations with the idea people are not going out and spending even though they have perhaps the cash but there isn't the confidence being expressed in the economic data? >> it's a very interesting case and

endausalternate supply, the estimate river alternate supply project, and there was a record decision signed on endas. given the extreme drought in our state, would you support the reclimation's work to bring the water supply project and in particular, endos to bring the water supply online? work with us to do that? >> thank you, senator, absolutely, yes. that is an important project, and we're working to bring it forward as quick as possible. it's a connection between surface water and ground water and the need for backup supplies and the need to be innovative, that's what we need to do right now. >> fantastic. thank you for that, and please, come out, we'll give you the tour and would love to host you. >> thank you. that would be nice. >> thank you, senator. ms. pitt i want to back up and talk about the infrastructure bill, the $8.3 billion to repair western water infrastructure. what does this do to help ecosystem health? >> thank you for the question. you know, there are all kinds of infrastructure that agricultural producers rely on, and particularly in the higher elevation. we chose the river b