shares of evergrande group were halted in overnight trading.ll get more on evergrande group, why you care and how big it really is, coming up in your rbi in a few minutes for now, let's get more on some of your top stories, including the facebook whistle-blower coming forward in a 60 minutes interview overnight. it was an explosive one as well. a lot of claims, bertha coombs is back with that and more and other headlines. >> a lot of fireworks on sunday not just tom brady going back to new england. that whistle-blower is accusing the social media giant of misleading the public and the company's investors. in an interview with "60 minutes last night she said facebook places profit over safety when it comes to its products >> the thing i saw at facebook over and over again, there were conflict of interest between what was good for the public and what was good for facebook and facebook over and over again chose to optimize for its own interests, like making more money. >> she previously worked at google and pinterest, added when compared to other

evergrande is at the top of it. we are waiting on the next red hot headline from hong kong amid reports of a major transaction. what could that be? juliette saly, what do we reckon? what is the price of success? juliette: we did see evergrande shares and its property services arm halted, suspended from trade. we were unclear as to what that would be because there had not been an official announcement to the stock exchange. this redhead coming through that it is regarding a major transaction announcement, speculating it could be on the report we have already seen from the chinese financial news platform about hobson development planning to acquire a 51% stake in the unit. there has been a huge liquidity crunch. the market cap trading 15% of its liquidation value. it has been reading have it -- wreaking havoc through the hang seng. the trading suspension could be related to a massive asset disposal. if we continue to flip the boards, we know that evergrande shares have tumbled by about 80% this year, bonds going to le

china evergrande closer towards a massive restructuring. next guest says beijing is seeking to withstand discipline work. joining us is the senior professor and former head of the imf china division. always great to have you with us on bloomberg. let's start off with this jumbo enterprise in bonds. this was a new development and i wonder how much more concern to our, knowing that there is a possibility of more cross defaults and the opacity of how much debt obligation we don't know about. >> first of all, as you alluded to very clearly, beijing intends to make this episode a clear lesson to financial market participants and also to all the leveraged rowers. now, if you think about the broader ramifications about possible defaults by evergrande, there were two questions. what are the direct effects in terms of property for evergrande, and what are the connection effects on the rest of the property market and on developers? certainly, there are some developers who are highly leveraged. there are some banks, especially some of the medium-sized

during his prepared comments he did not mention evergrande by name, but did and mentioned evergrandend that they feel fairly confident that they can contain the risk. of course the risk of contagion or the fear in the market of potential contagion to other developers and to the banks as well are really heating up in the last couple of weeks as we had fantasia say they defaulted. we had cynics say that they are imminently going to default. these liquidity crunches at these property developers is very real. but to hear that he is saying that they feel fairly confident that they can contain those risks is important. he did say evergrande's trouble do cast a little bit of concern. but overall, beijing can contain the risk. he went on to explain about the risk of passing on to the banks. he said hundreds of entities have those liabilities. of course 300 billion plus in liabilities at evergrande. hundreds of those liabilities are spread out. i should say many of those liabilities are spread out among hundreds of different financial institutions in china. that you would say, oh no, contagio

we will have more analysis on evergrande ahead.e will hear from real estate advisory panel, welland associates. this is bloomberg. ♪ >> blackstone has joined other banks warning that inflation is becoming more persistent. president and coo told bloomberg the increasing money supply coming from the government aid is one of the big reasons. >> well, it is certainly trickier as values move up to deploy capital. we have some competitive advantages. we operate almost all of our businesses at a very large scale. the ups done -- we have done something like 13 public to private spirit that is a real competitive advantage. the breadth of our platform continues to expand which helps us a lot. any of our large investments were in our new areas. but we are trying to do is find interesting areas in some of these the maddock neighborhoods that we love where we can buy -- and some of these th ematic neighborhoods that we love. we saw a huge potential and we invested in that considerably. the company has gone public and is hugely successful. we ma

dollars for evergrande. still spare change when you consider evergrande has $300 billion in liabilities. it is moving in the right direction, as it were. francine: thank you so much. another top story this morning, energy. supply shortages. rising costs are threatening to derail europe's recovery as it reopens after the pandemic. it will take center stage today when finance ministers me in luxembourg. maria, how big a concern is this for europe, especially as energy demand is picking up? will we see further caps on prices? maria: when the finance ministers meet in russell, they have two competing narratives. this is an economy that was gaining momentum and picking up before the start of september but that of course, we have had energy prices kicking in and jumping from record to record. yesterday and especially last week. have seen every benchmark for european energy prices jump to a record highs so this is a concern in terms of what it could do to the european recovery and it is also a concern in terms of h

the real estate story with the evergrande evergrande, shares have -- the evergrande saga continues.vergrande said sales sank 97% during peak homebuying season. for more, we're joined by our china credit reporter in hong kong, who i cannot stress enough has been following this from day one. where do we stand now with evergrande? >> falling through of this deal is certainly a massive blow to evergrande and its investors. evergrande is really running out of time and it is facing this crucial test on a coupon, a dollar bond coupon originally due september 23. it has a 30 days grace period, which would mean that comes at the end of this weekend, to make that payment. for doesn't, bondholders could choose to accelerate payment and trigger what would be evergrande's first default annoy public bond. that concern is still rippling through markets, but it is really adding to this broader fear about potential domino effect of another default among weaker rated property firms, in particular, over the last couple of weeks. you have seen a lot of firms scrambling to meet their debt maturities bec

evergrande investors are selling. it was already down 80%. it raises lots of questions because this $2.6 billion, selling a 50.1% stake in evergrande property services and i am using a euphemism, the lasting crown jewel of the evergrande would have given short-term relief for evergrande to pay contractors, suppliers, payoff wealth management suppliers, paid dollar bondholders, creditors. the 30-day grace period of the $80 billion coupon that was doing month ago is expiring within 48 hours. therefore, if creditors say we need our payments, that is a default. it just further increases the spiral downward forevergrande. >> we have 305 billion dollars of debt here forevergrant -- for evergrande, and it is guaranteed by evergrande at $200 million plus -- at $200 billion plus. what is next? stephen: we are just reporting on the on balance liability sheets that we know of. we talked about the jumbo bond, that evergrande through its real estate unit. this is the problem. and our bloomberg opinion columnist was talking about this black box of liabilit

that could overwhelm evergrande and forced a default. some would like to see them reach forbearance agreement that would shield the company from slew of investor demands for immediate debt repayment and discuss restructuring options. evergrande gave the market a bit of encouragement maybe a sign that it might be willing to negotiate when it announced that it had reached a three month extension on the bond issued by the joint venture partnership. there might be hope that there could be a stall on the demands for payment and that could buy some time. keep in mind, evergrande announcing yesterday or the day before that they had not reached a deal to sell the property services arm for a needed cash infusion of $2.6 billion. it is crunch time over and over again for evergrande. that's what we will see in the next couple of days. shery: kathleen hays and susan engel joining us with the latest on evergrande. we will have more on the outlook for evergrande ahead with our guest joining us. plus, a real estate advisory firm is on later. we have br

when it comes to evergrande and evergrande property services awaiting any news out of the companies on any announcement. earlier today calling the trading halt ahead of what the companies are saying is a significant transaction, a possible general offer for shares of the company. it was then also reported by chinese state media, the global times in particular, that chinese property firm hobson has been looking at the property services unit and will be making an offer worth some 40 billion hong kong dollars or around 5.1 u.s. billion dollars this is for a 51% stake of the property services unit but no confirmation yet from those companies as we await the final details of this transaction. it comes as evergrande continues to face off against this big debt load it faces $300 billion in liabilities we know in the last week or so it's missed the two offshore payments to foreign investors. yes, there is a 30-day grace period it remains to be seen whether or not those payments will be made. but this month alone an additional payment is due on october 12th three offshore payments due, one on o

manus: china, the evergrande exposure is immaterial. has the worst past in china with evergrande? to common prosperity. so i think there are probably more policy changes coming through. this time it was around property market and it will be around health care and about social welfare in terms of unemployment benefits, building a pension system, etc., but i think more changes will be coming to the market. they will be incremental. they will have negative effects and very positive effects. so we have been committed to the mark for a long time and we see it strategically. manus: are you full bull on china? >> strategically, absolutely. who can't be? we know the country very well and are very successful in the business. we have a good combination of wealth, i.b., and assess management business, and we plan to invest more. kathleen: next, the world's biggest electric vehicle battery maker is set to report earnings later. we will get you a preview of the numbers. this is bloomberg. ♪ haidi: a quick check of the headlines. twitter reported third-quarter sales in line with estimates. a si

we've got the evergrande effect on high-yield, it is blowing out.e break you said this is for the active manager. how do you look at high-yield? how do i benchmark this relative to the rest of the world? scott: japan is about 650 wider on spread for the year. this is u.s. denominated bonds. u.s. corporate high-yield is about 20-30 tighter on the yield -- on the year. there's been a tremendous amount of underperformance. as we were talking before, i think stockpicking or in this case, bond picking, it will be an important part of the investment here because you want to invest in the company's you think, obviously outside regulatory clamp down, but also that look most attractive. i think chinese high-yield is for the active manager. dani: at the same time, the past few years we've seen more chinese bonds incorporated into global bond indexes. is it a fear because there is exposure to these type of markets? scott: the biggest exposure is the chinese government bond market, which will continue to increase in size and has grown substantially and will con

also, evergrande will pay a coupon which means they will not default.et's go back to the global supply chain affecting everything from chips to ships and also hitting digital services. these issues are threatening the holiday season and we spoke to a number of executives. >> it is really a matter of chips and ships. we have a shortage of components and you see the delays and the shipping industry and the congestion at the ports which probably intensified during the quarter. >> discussion has shifted from commodities alone to energy and labor. we feel it mostly in our trucking and shipping costs. >> the bottleneck is mostly shipping and logistics. and procuring truck drivers is becoming the most important element of the supply chain. >> you will always be looking for suppliers in the nearby factories. >> we see the same type of supply disturbances posing some threats to the fourth quarter but i would still not exaggerate. >> ultimate measures are our brands on the shelves where they were meant to be. >> it is not that we did not have supply chain issues

evergrande's debt crisis is escalating. other developers are scrambling for ways to avoid defaulting on their debt obligations. let's bring in our executive editor. another bond payment being missed according to some bondholders who say they have not received a payment on the u.s. dollar bonds. this is incrementally progressing the story rather than really moving the needle in any dramatic way. >> i think that's an accurate description. evergrande is missing the coupon payment at the end of september. there is a 30 day grace time on the payments. we are looking forward to later this month in october before we could say there was a default on any bond. there is always the risk that one default sugars cross defaults and that could ripple through the markets as a result. obviously mention the effects of other developers. we had modern land asking for a three-month delay on the payment of a bond due later this month. we had another company asking that it just pay 5% of the principal. the rest of the step two and 2023 with the s

and it shares are suspended in evergrande is the debtladen chinese property giant fails to meet interestyments. a warm welcome. let's get down to business and we begin in the uk where the chancellor will commit £500 million, in dollars that 677 million, to a newjob support programmes across the country. during his speech at the conservative party conference later today, rishi sunak will promise to double down on help for the jobs market after covid—19 as he extends devil schemes and set “p extends devil schemes and set up during the pandemic so those will include schemes to help the long—term unemployed, others to encourage employers to take on apprentices and the extension of the so—called kick—start programme which kick—sta rt programme which subsidises kick—start programme which subsidises eligible jobs for young people who are on universal credit. this will be extended by a further three months. let's talk this through now. good morning, duvets. what do you make of this new commitment from the chancellor —— jervais. of course it is a big day for him with the speech of the conservativ

so it is not just evergrande.e is the poster child because it is the world's most indebted, but there is a lot of trickle-down effect by the policy and drying up of this property market. -- drawing up of this property market. haidi: so it's still just uncomfortable silence when it comes to evergrande? do we have any word on bond immense due, a reported asset sale we caught wind of yesterday? stephen: there has been lots of silence. no word on that principal payment from jumbo fortune enterprises. of course that was a bond that was guaranteed by the domestic unit of evergrande. it matured on sunday. payment principal was due yesterday. we have had no word. we have speculation in the market with evergrande as well as evergrande pretty services. both of those shares were suspended yesterday. we thought it would be news on the bond statements are on large restructuring. then we got trickled out news from local media in china saying hobson development would be buying a 51% stake in china property services. that is ther

evergrande faces its next big test with payment due on the $260 million bond. the developer is said to have guaranteed it. facebook repairs for a whistleblower to go public with accusations about the social networks role in the capitol riot. haidi: let's get straight to the market open. sophie: the heading higher, seeing some pressure. no change expected from australia. the rbnz is seen by consensus to hike rates. bloomberg economics says they don't expect tightening this week given the ongoing lockdown with the kiwi dollar softer ahead of the new zealand cabinet decision later monday regarding those other levels in the country. the asx 200 gaining ground by .2% after capping a four-week drop. energy also higher this morning. yossi share market has exposure to sectors that are vulnerable to the slowdown but we have seen energy names gaining ground. whitehaven is one of the best performers this year. on that, flipping the board, oil rising for a third straight session ahead to monday's virtual opec-plus meeting. we have pressure coming through when it comes to b

it echoes evergrande. this is fantasia holdings saying it did not repay a $205 million bond that was due on monday. separately, we have property manager country garden, saying that a fantasia unit, didn't repay a $108 million loan, and that the default was probable. the builders' bonds tumbled earlier on speculation that it would struggle to meet its obligations. facebook says services are back up and running, after some 2.7 billion global users lost access for about six hours. it did prompt an apology from the chief executive since many could not access their apps including instagram and whatsapp. . facebook shares already under pressure following a whistleblower's 60 minutes interview, in which she said the social network put profit ahead of users' well-being. president biden, warning the u.s. is at risk of breaching its debt limit in two weeks, blaming senate republican leader mitch mcconnell for what he described as a meteor for the economy, while demanding republicans stop blocking efforts to suspend

and we have yet to hear from evergrande.ng to the upside by 0.6 percent, we are talking the vietnam --, as the country is facing an exodus of factory workers. this could worsen the supply-chain problems. let's get to bloomberg's vietnam bureau chief. john, what is happening. this is all we need at a time when supply chains are at the moment being squeezed and squeezed hard as we. john: exactly. vietnam last year contained the virus very well. but this year, the delta variant really struck hard and government started to put in place increasingly tough restrictions. ultimately, those included 10 cities in factories for workers, or shut down, and many of them shut down. now that the factories are starting to open up, there are a lot of these workers now who are heading home. very upset about being here. there is a very high death rate. in which you mean, there has been 15,000 that's. they worry whether they can get their orders in to make sure that the products are still done , in store shelves in the usa and europe. haslinda:

secondly, limiting property, so evergrande. . .- property, so evergrande...re trying to teach the sector a lesson, but we already have an energy crisis in china which is affecting production. what sort of ripple effect does this having across the country? this ripple effect does this having across the country?— across the country? this is a serious concern _ across the country? this is a serious concern because - across the country? this is a i serious concern because there across the country? this is a - serious concern because there are indications that some slightly smaller ones are beginning to come underfinancial smaller ones are beginning to come under financial pressure as well. this is time of slowing growth in china. if you try to limit growth in overall credit in the economy as well as try to put the space in the property spectre, there are concerns. but the chinese government seems to believe that it can control the financial effects, but also the economic effects. beijing suddenly seems to feel it has the policy to be able to revive... it seems to

evergrande avoids default with a last-minute payment. you a-shares hit another record but the you for yuri it -- u.s. shares hit another record but the euphoria is not long. checking facebook, twitter and alphabet. the fed curbs trading by top officials after an embarrassing scandal. will powell's damage control be enough to clear the way through nomination. happy friday. you made it to the end of the week, and the inflation bet is on. a monster auction yesterday yesterday in the u.s. session. $19 billion up for sale in a record low yield. there is demand in the market to hedge, and protect yourself against inflation. all of that translates into inflation expectations as measured by rake evens that are at -- breakevens that are at the highest since this was offered again. these are a substantial ramp up. this is a conversation we have been having for months, but it is notable how the market keeps putting these on. what does that mean for risk assets? so far, not a lot. u.s. stocks yesterday hit an all-time record, but why is it equity ma

china signals it's hesitation to boost evergrande.et's look at the board, you can see that the s&p futures are just barely unchanged, kind of hovering on that level, after a big run again. the dow, the s&p 500 both hitting fresh records. the day started before the tech earnings with very strong results from ubs, from ge, major bellwether signals for other companies. you can see the s&p closing up 0.2%. the 10-year note, not a big story in bonds. today. the curve flattening again. we had a rally. that two-year auction closed lower. maybe it had something to do with the unexpected jump in consumer confidence last month as well as another big jump in inflation expectations next year. oil is down after the close, but a strong day. in fact, oil futures were around their highest since 2014. one oklahoma storage hub has been down since 2018. so haidi, the tech story now, after the bell. he saw losers today -- microsoft, buster earnings -- blockbuster earnings, sales profits were very strong. 11th straight earnings beat because of cloud compu

just some news here as it pertains to evergrande.y property services unit which is suspended today at hopson development is requiring the majority state -- acquiring the journey stake there in the business. 51% at 40 billion hong kong dollars for that steak-- stake. rishaad: we got the philippine president announcing he will retire from politics leaving the public guessing on who he wants as his successor. ♪ david: welcome back. here are the movement across these benchmarks. jakarta and over in ho chi minh, vietnam. this is how we are looking. mainland markets are shut as well as south korea so you don't get the same volumes overall. quick glance at movers. we are looking at -- to at least two. a copper and energy story. there ago, 2.5% in singapore. yvonne: a government minister has administered that the administration can do a better job communicating its virus strategy to attempt the presidential frustration over confusing signals on the financial hub reopening plants. rishaad: let's get more on this. we heard about divisions with

we are talking about nevergrande -- evergrande now.onds have experienced a lot of pressure this year. negative news has been part and parcel of why we are seeing these bonds up a couple of cents right now, but we are coming up in the low 20's. yvonne: i guess there is some relief they were able to make two of these dollar bond payments, and they were able to actually do it before these grace periods ended. it raises questions about what the hierarchy is when it comes to paying back evergrande's creditors. looks like they are setting a little bit more of a priority these days. let's bring in our editor to talk us through what this latest payment really means and what is next for evergrande. they still have a lot of debt due. >> yes. they still have a lot -- a lot to repay, but after they made the payment, they expected they would meet this one. the next deadline to look at is mid-november when they have about 148 million worth of interest payments coming due, but the assumption is that the company at this point will continue to need tho

we have had several defaults outside of the evergrande space. they are calling on companies to optimize their foreign debt structures. you have mixed signals. prioritize creditors or dollar bondholders, or prioritize completing housing? i think it is all of the above. david: stephen engle on the latest on evergrande, we will put two stories together. we played around with it. 300 billion dollars, the total liabilities of evergrande. the only person who is close to that is elon musk. we will talk about him like iron man, did he see evergrande coming is a question when you look at this chart. just fyi. yvonne: they do have an ev unit. it was back then they mentioned their company was going to eclipse elon musk and had the most powerful new energy automobile company in the world. how things have changed. let's get the first word news. annabelle: thanks. three u.s. senators have released inflation that would require companies reporting more than $1 billion in profits to pay a minimum 15% tax rate. it's sponsored by senate finance committee chairman

evergrande escapes — for now. chinese property giant avoids default with a last—minute interest payment. wework, re—worked! two years on from near collapse, the office—sharing company finally makes its stock market debut, netting its ousted founder almost a billion dollars. plus the craic returns, but the masks stay. ireland backtracks on easing covid restrictions for hospitality amid rising cases. hello there. we start with the row over taxing big tech. britain — along with france, austria, italy and spain — have agreed to roll back their multibillion—dollar digital services tax on the likes of facebook and amazon. it's part of a transition to a global minimum tax on all big companies due to come in from 2023. in return, the us is removing the threat of punishing tariffs that could have seen 25% import taxes slapped on european goods, from anything from clothing to shoes to cosmetics. from new york, michelle fleury has more. it's spelt out easily enough, how do you the digital world, but it turned into an ugly fi

it will happen with evergrande. i think we move past any real hopes that we will pay the coupons that they owe. it's almost one month that some bondholders have been waiting, having written to evergrande asking what's going on with their money. we have group has that. the question is, how does it go ahead? just how badly our foreign investors going to be hit? there is a concern that evergrande will be ring fenced in foreign bondholders will be bogged down when it comes to giving their money back. the chinese central bank told china's banks to make sure that homeowners were -- china's worry about homeowners not bond owners. haidi: our mliv editor garfield with kathleen hays in our washington editor with our top stories that you need to be watching today. in other top story when it comes to trading in sydney. entertainment responding to the report over the weekend with 60 minutes saying they are concerned with a number of assertions made within the report. it was a dramatic report organized crime, and foreign interfer

at one point, evergrande's ceo rejected a $100 million yacht as to plane. >> evergrande is the posterhat beijing is looking to do. >> michael is theractice head for the eurasia group and the former u.s. treasury chief representative in beijing. he says the $300 billion of debt amassed by evergrande, whose headquarters towers over shenzhen, was considered too risky. >> china is basically five years into what they are calling a financial d risking campaign. it is a reflection of the fact that xi jinping and the chinese leadership realized if they did not get serious about desk -- about debt risks, they could bring the whole system down. >> not only her risk of more protests outside of the headquarters police try to hide but also contagion. last week, evergrande's troubles led to the dow jones worst day in months. experts say evergrande is not a repeat of lehman brothers in 2008. bankers left their jobs and left the global financial system on the verge of collapse. when it comes to real estate, what happens in china does not stay in ina. >> in a worst-case scenario, what we would see is

start us off with that evergrande backer trying to go private. it looks like chinese estates is trying to contain fallout from exposure to evergrande. one of the bigger shareholders of china evergrande group, although it started paring some exposure back in august. it has cost them. haidi: in terms of this latest development fitting into the broader story, what level of concern are we seeing in the market? not a systemic lori, but certainly cross-contamination within the property sector. reporter: it feels like there has been a fundamental change for chinese developers this week. the brutal selloff we have seen in credit, shares dropping all over the place on the back of evergrande stress and broader fallout. as you mention, the surprise default has shaken people's confidence, not least because them themselves promised it had enough liquidity and just made the private bond placement over the weekend before it defaulted. the other danger is this becomes a self-fulfilling prophecy, where because borrowing costs are so high, ultimately weaker financ

and what about evergrande, the indebted real estate developer? expectations for china and the global economy? certainly for china, the property market has been very frothy. we have seen continued efforts to try and defrost that sector of the economy. overreliance on the sector, so notjust property developers but land sales, local government started to really mmp government started to really ramp up land sales in order to use land as collateral for further lending. all of that suggested this sector, in time, will need to be restricted and controlled, particularly when property developers are taking advantage of higher property prices to invest into other sectors. fundamentally, ithink property developers will start to rain and their investments, particularly their debt overseas in order to serve the domestic market. of course, housing property affordability perhaps will start to improve from now on. jinny yan, great to see you, thank you for your thoughts. another issue that's weighing on chinese growth is of course the crisis over at property dev

you could say that with evergrande as well. how long do you think this optimism in the markets can last in china if we are still not getting resolution when it comes to the evergrande story? >> i agree with you. i think we have to see a really clear plan, so i'm still a little pessimistic about china. having said that, the next big piece of positive news we could get would be a reserve climate cut. that could happen today. yvonne: coming back from a holiday, might as well come back with a bang. david: coming up, the jobs report out of the u.s. expected to easily meet the target set at the fed's november meeting. yvonne: i think we are looking for a good number, but how good? kathleen: the median forecast would be doubled the 235,000 jobs we saw in august. the range goes from zero actually up to 750,000. our bloomberg economics team is proudly presenting that number as their forecast. we are expecting delta variant cases to peek and to come down, the end of the federal employment benefits fully now in the month of september two

. >>> and evergrande in china. it's thursday, october 21, 2021 and you're watching "worldwide exchange" here on cnbc >>> good morning i'm kortney regan in for brian sullivan let's get you a check on the u.s. stock futures and we are looking red here across the board, the s&p 500 indicated down by 10 points, the dow jones off by 100 and the nasdaq indicated lower by 27 points this comes after the dow jumps 150 points yesterday to hit an all-time intraday high. the s&p 500 closing higher for its six straight session crude up nearly 8% this week oil prices this morning wti just a hair under $83 a barrel here at $82.96. and brent crude is at $85.12 take a look at crypto. we're watching the space as bitcoin surges to another all-time high. this morning you can see here above $66,000 here look at that soar. ether is higher by 2%. bitcoin higher lite coin higher by .75% we're going to talk later in the show about the reasons behind the moves so you have to stay tuned for that let's get to your stock of the day, tesla post

>> he said that evergrande's risk is obtainable.ference, they said evergrande is controllable in china. these are codewords for no bailouts. investors who had hopes for bailout of were disappointed. interestingly, pboc sent a second message saying the main shareholders need to fulfill their obligations. that is basically telling them to pay up. if you look at the october selloff, that high-yield dollar bond market the biggest selloff in over a decade, at some point, the balance was yielding as much as 20%. xixi what happened was not because of evergrande, this already quite well understood, but the small developer called fantasia. it is rate 64 in china. nobody cared about them and taught tober. fantasia had the money to pay, or was given the impression to pay, but first they said i am not going to pay that $600 million bond. that freak to the markets out because there were like oh, i guess some people are not willing to pay. fantasia's founder might be a little spoiled because she is the niece of a former vice-chairman of china, bu

we have heard consistently that evergrande might not be a systemic risk toward china, but what about the risk to the broader economy and the broader property sector and what we are seeing right now with other developers? john: that is what is intriguing about what has happened the last few days, you've got this issue with fantasia, a smaller play and different magnitude from evergrande but it has chosen not to make it a due payment. the response has been in many ways more dramatic in terms of the values of high-yield bonds across the property space. and when evergrande first got into difficulty, there comes a clear risk that you could have broader economic contagion across real estate. i think that -- i said this myself a couple of weeks ago, it is natural enough because it is a large player up to the gills with real estate prices that are higher than they should be. you would draw comparisons with lehman. it is not a lehman issue, more of an economic issue of what happens if this big impulse from real estate is taken away from the chinese economy. at this point, it is difficult to c

evergrande shares may resume

stephen engle, on the latest from evergrande. let's see how this is affecting the general investment and the risk profile of chinese assets. let's bring in asia's quants analyst. what are you telling your clients? >> on china, we are still taking a significant stance. the whole idea is that one needs to be positioned in areas where there is support and not really speculating where the next area would be that we would see rest. we are positioning more into companies which are doing quite well on their environmental aspect, who are more esg aligned. instead of staying away from high stocks because -- [indiscernible] we like a sustainable stocks that are companies generating high yields and who can generate sustainable dividends. that is the kind of positioning we are recommending. david: what would make you reverse that? rupal: a few things. if we see some division in terms of valuation, as well as some crowding, that would make us change positioning. in china over the long-term, it is basically a growth market. and some wrote stoc

and evergrande with a 30 day grace period also coming up in october.ee whether evergrande itself can make good on debt obligations. is that working? what is china doing to contain evergrande's risks from spilling over into the rest of the property market? and when will it no to -- know to step in? francine: the gazillion impossible question to ask is what kind of timeline are we looking for? could it take longer than a few months? >> a resolution forever grand could take months -- a resolution for evergrande could take months or years. but january is what we should be looking at which is when a significant portion of the china real estate sector has to pay, not just coupons, but principal amounts on their debt. that is a big deadline for the sector. citi credit analysts saying the pboc has to do something before that otherwise we could see a lot more pain and significant slowdown in china's economy. it is unnecessary. taking it a bit too far in citigroup's opinion. there is still a lot of time. we could still see a lot more defaults. most economists an

those evergrande worries ever -- evergrande as we count down to the start of trading in china.hery: much to discuss. everyone needs to stay put on bloomberg tv. we will be discussing all of those concerns with riverfront investment rebecca felton next. the australian open is coming up. this is bloomberg. baaam. internet that doesn't miss a beat. that's cute, but my internet streams to my ride. adorable, but does yours block malware? nope. -it crushes it. pshh, mine's so fast, no one can catch me. big whoop! mine gives me a 4k streaming box. -for free! that's because you all have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that? >> welcome to "daybreak asia". >> i'm sophie kamaruddin in hong kong. >> good evening from bloomberg's headquarters in new york. our top stories is our. asian stocks sets us up on concerns about elevated inflation and

half the amount of dollar bonds as evergrande..50 on the dollar rate, the lowest we have seen ever since their return. it would be quite an extraordinary fall from grace. there is a technical factor as well because it has so much debt that the whole of its yield cart is very vulnerable when investors start to develop concerns. elsewhere we have seen agile, sooner, also under pressure. >> let's turn to outperforming sovereign debt. analysts see the inclusion generating $130 billion over three years. that bolsters the case for the world's best performing government debt. our fx and rate reporter has more. clearly this inclusion matters when it comes to sentiment. >> so for fixed income investors, this is a great opportunity to get more exposure to china. at this point china is one of the best-performing bonds this year compared to most of its major peers at a time when all of the global yields are under pressure, china has acted as a haven asset. it did not have to stimulate as much during the pandemic. now it is -- with signs of a

fallout from evergrande's financial troubles.ut it is facing a tough trade-off. they discussed the banks exposure to chinese real estate. >> as a bank, we are relatively underway in commercial property and as a bank we have focused on top-tier developers. i am not concerned about the first developers. if there was a contagion effect it would be concern for everybody. but this idea that this was a lehman mode for china, i don't think china is that dumb. yvonne: still with us is alex wolf. alex, it seems like that contagion risk is here and has happened. you are seeing it from evergrande. even some of the other outsider properties as well. what do you hide in that kind of environment? alex: i think you have to focus on the areas because it's in the crosshair of the sectors. they tried to share the overall economy and force deleveraging on the property developers. you really have to focus on the sectors or the office, the ones that are perceiving continued policy support. the ones that are targeted as strategic industries, whether r

the -- do you want to help evergrande and give up the perception that you're really backing off from that deleveraging effort? but then what happens is if you put off helping them out, that could help actually produce more stress in the property sector and the broader economy. so investors haidi will have to wait all of -- weigh all of those issues and we have more ahead of the key u.s. inflation print as well. let's bring in our global economics and policy editor kathleen hays for -- and economy editor molly smith and tech reporter mark gurrielen. kathy, the i.m.f. forecast we saw another warning of divergence across the global economy. kathleen: we certainly did. and of course that's something that's a theme at the i.m.f., at the world bank. but basically in terms of how they changed their forecasts for 2021, they're looking at supply chain disruptions. the advanced economies look like they were going to surge ahead. but oh, boy, if you can't get the inputs to production, chips to produce new cars, etc., you're in trouble. and then the delta variant impact. that's in many countries

the whole sector now is under stress, not just evergrande. people are having to reprice the whole market. it is at least positive in the sense that it is making people wake up to the reality that there are problems in the market, but in the short term, it brings problems for investors as they assess which places are the place to make payments and which are not. david: you can follow more on this story and everything we talked about their from the arbery i all the way to flatter curves on our blog. we might get a sense of what is happening in the credit markets with evergrande. quick commentary and analysis from his team. vonnie quinn is in new york. she has your first word news. vonnie: u.s. house democrats have dropped the plan to tax billionaires. the ways and means committee chair said the billionaire taxa did not have the support to get through congress. he says the house is instead proposing a 3% surtax on top of the interest rate for those earning more than $10 million. brazil's bank listed its benchmark selling off. it also says anothe

emerging in the credit market over the evergrande effect.ntervention to tackle shortages and soaring prices. shery: breaking news at the moment. the house committee investigating the january 6th riot at the u.s. capitol is recommending the full household former trump administration advisor steve bannon in criminal contempt. -- and testimony. they voted unanimously to send the recommendation. it would escalate the brewing legal showdown that would mark the first test of the committee's power to counter former president trump's attempts to thwart its inquiry into the circumstances surrounding the attack on the capitol on january 6th. the house committee investigating the riots now recommending the full house hold steve bannon in criminal contempt. japan and south korea getting underway. turning to sophie for all of the market action. sophie: from japan, trade data we are digesting. we saw the deficit widened more than anticipated. expert growth slowed on a monthly -- monthly basis. tokyo stocks adding on the nikkei 225 and yen trading. keeping

where evergrande was down 80%. hobson, as i said, much better financial situation. those shares have been up so far your today. shery: stephen engle there. let's get to su keenan with the first word headlines. su: thank you. we start with president biden, his pick for ambassador to china has taken a hard line with beijing over its actions in the indo pacific but says american strength and alliances give the u.s. key advantages. at his confirmation hearing, longtime diplomat nicholas burns also said he was skeptical about chinese intentions on issues such as 5g technology. he also warned that the world should be worried about beijing's nuclear buildup. the u.s. fda has cleared the way for millions of americans to receive covid-19 vaccine booster shots. the agency approved moderna boosters for those over 65 and younger people at high risk and it has authorized a single booster dose of johnson & johnson vaccine for those older than 18 at high risk. the fda also approved a mix and match approach, allowing any brand to

. >>> evergrande, avoiding default for now, as the chinese developer reportedly makes a key bond payment> a deal amongst the democrats as president biden said he's made an agreement within his party. it is friday, october 22nd and you are watching "worldwide exchange" right here on cnbc >>> good friday morning i'm dominic chu in for brian sullivan today here's how your money and the global markets are setting up. stock futures are indicating a more stable open, dow higher by about 29 points, nasdaq lower by 1 point and the nasdaq down roughly 49 points. all of this is happening with the nasdaq being hit especially hard by disappointing earnings from a number of tech companies. we'll have more on that story coming up. checking on treasuries on the back of yesterday's better than expected job's data. the ten year currently 1.69%, moving to the highest level since may, the two year .47% turning to the energy sector west texas intermediate, currently $82.79 up about .3%. ice brent up to $84.92 or up.37%. >>> looking at cryptocurrencies, bitcoin you can seen right now just about 63,600 the la

is the wording of evergrande over? -- worry of evergrande over? >> no, it is going to drag on for some time. i think the panic has shifted to resignation for a lot of them, now the question is, how much will be get back if there is a restructuring and a restructuring looks likely. the biggest concern is going to be with us until probably at least january, february of next year because what happens now with evergrande, how that resolves, that says a lot about how open the funding markets are going to remain for evergrande and for other chinese companies. there is a huge wave of refinancing they need to carry out early next year and if the funding markets are shuttered, that could actually be when the meltdown comes. shery: it seems to be the consensus that evergrande is not have a systemic risk but could dampen economic growth in china more. is coming at a time when we are getting these growth forecasts downgraded for the u.s. as well by goldman sachs. we have central banks raising interest rates already. how does this bode for the earnings season

manus: thank you very much, stephen engle with the latest on evergrande. haven't downgrades growth. is it -- we have downgrades of growth. is it weighing on the market or is attack -- is it tech? juliette: i want to start with natural gas. we've seen it going back above five dollars after three sessions of declines, down about 20% from its seven-year peak we saw earlier in the month. it is a mild start to the u.s. winter. you mentioned the tech players, certainly leading the region, the hang seng tech index passing the 50 day moving average. and the oil rally, a little more flat in the energy space. we had rba minutes from october suggesting they will continue with very accommodative monetary policy, and you've seen the yield on the three year dip by as much as six basis points and now down one. downgrades are coming thick and fast after china's third-quarter gdp miss. you have barclays, ubs, all adding to downgrades to china's growth, around 8%. but a stronger offshore you on -- yuan. dani: juliette saly, thank you so much. let's get over to bitcoin, whic

-- comes to evergrande. it is up 29% for china estates. the energy crisis is quite interesting as well, we are seeing risk appetite return. it was also with the u.s. the energy secretary saying they would release some strategic reserves when it comes to petroleum. that could alleviate the crunch, but russia also mentioned they could boost exports. is it a way -- are they using it as a weapon to get approval of that pipeline? a lot of questions there too. david: that is to some extent taking the sting off some of these prices, which frankly moved insanely high this week. at one point, we were up 20% on monday and up as much as 40% before closing down. only up 380%. also the debt ceiling story coming on the offer of mitch mcconnell. the democrats we understand are still waiting for that offer to be given on paper. as we can see, it is falling as we speak. this is the yields on the u.s. bill that matures on the back of the october deadline. credit default swaps are also on the way up. that is getting priced out. this is basically getting move

elsewhere we are looking very closely at evergrande of course.here would you say are we in this whole cycle? the property developer clamp down, then evergrande starts melting down, now you're watching all these other companies. are we halfway through? does not seem like we are getting close to the end. are we getting closer to falling off a cliff or can we see there is some kind of bottom being formed? rebecca: i think particularly when it comes to evergrande it looks like they are essentially trying to delay an official default while they potentially manage what could be a restructuring with evergrande and chinese authorities. more broadly the idea the evergrande crisis will be contained has been largely disproved. we are seeing a lot ripple through. as much as the china offshore bond market means closed too many developers, that can continue. chinese property developers are used to tapping a market very regularly and being able to access key funding. so long as we see yields well above the 50% level, it is going -- 15% level, it is going to be

shery: another exciting day when it comes to evergrande. the big story of the day, amazon and apple reporting after hours plus facebook revealing a new name. let's bring in tom and ed. give us the headlight -- highlights that companies are hit by supply chain concerns. >> apple is having a hard time getting the product needs -- the parts that it needs for its products. the sense we get from the executives is that there is demand for the iphones and other products, remember they just refreshed those core products. there is demand, but they are having trouble on the supply. supply chain problems cost them $6 billion of revenue in the last quarter and they expect more costs in the current quarter. this is the crucial holiday quarter which is not good for apple to have supply chain constraints. amazon is even more nuanced. there are supply chain concerns for amazon, but also a demand issue. demand not as robust as it was during the pandemic when everybody wanted everything from amazon right away. haidi: are these companies taken the right appro