still to come, chinese developer kaisa sliding in hong kong.developments, just ahead. keep it with us. this is bloomberg. ♪ haslinda: this is bloomberg markets: asia. get the latest business flash headlines. nio has unveiled a second electric sedan with the price time -- tag just over 56 -- they have already launched a more expensive sedan with delivery expected in march. the ceo says they are focused on expanding ev capacity. >> first we want to invest in technology for the long-term, setting a high bar. second is our service. we want to provide all the services surrounding the vehicle. we announced our plan in 2022 for a power source network and we've already built 732 charging stations. haslinda: alibaba will target growth abroad and in china as it tries to move on from a tough year. unveiling a recovery plan at its annual investor conference, alibaba said it sees overseas business as a key growth -- growth driver. alibaba was one of the first targets of china's tech crackdown. binance did meet -- did not meet demands regarding money launder

kaisa is china's third-largest issuer of dollar bonds.t is saying that that lifeline has been rejected with swap offer $400 million of bonds that were due december rejected by investors. we are also tracking the fallout when it comes to the global supply chain crunch. these are our top stories. kirkland shares tumbled after they missed estimates due to supply chain issues. on the other side of the coin, a company is giving each of its employees a $1000 bonus on the back of the shipping giants record-breaking performance after supply chain's ructions freight rates several times over. tesla said to be having trouble securing solar panels. the company is not expecting to get more solar panels until next month. shery: speaking of shortages, if it's any indication of supply chain worries, the fed's mention of the word shortages edged lower for a second report. the fed notes that distribution systems are strained and demand in the coming months will remain stronger than the supply chain strus ability to meet. bloomberg terminal users can read m

call it evergrande 2.5 w -- 2.0 >> this company is called kaisa.pended its shares today no reason given. kaisa said in the past, it was going to be able to work out some off shore debt payments they are the second largest borrower evergrande missed an $82.5 million interest payment that was supposed to be made in a 30-day grace period which expired on monday. the company has not said anything one tid bit saying it is hoping to push into ev's, the it health ministry has not yet a proved the ev models that further disbanded hopes for its future >> i know evs are hot and all. is the government taking any action with regards to evergrande because of all of this that is why investors are quite disheartened saying it is invited in local authorities and state enterprises to work out some finances and officials have indicated that problems we have seen have been isolated. even today, the state media has pointed out that these problems are going to be able to be managed. the china security's journal said the needs are being met and maintaining stability in

so there is more pressure on kaisa. there's more pressure on china evergrande, but little bit more calm in the dollar junk bond market yesterday. today is a different day, though. we'll see. haidi: our japan economy editor, paul, kara, and stephen engle. chinese fighters have been accused of using huawei in a secret telecom hack. we are hearing they breached key evidence in a push to block how white -- block huawei in stores in australia telecom back in 2012. a bloomberg news investigation has found a key piece of evidence really underpinning the u.s. efforts the past few years, warning that products from huawei technologies has posed a national security risk for any country that use them. this piece of evidence was a previously unreported breach that happened halfway around the world nearly a decade ago. in 2012, australian intelligence officials and formed their u.s. counterparts they detected a significant intrusion into australian telecommunication systems, beginning, they say, with a software update from huawei, th

kaisa is the third biggest issuer of bonds. to the tune of $11.2 billion outstanding.why we look at kaisa, one of the first ones if not the first one back in 2018 that defaulted. let move on to evergrande. another poster child of the stresses. i chinese court has been assigned to handle civil lawsuits tied to china evergrande and those who are trying to claim missed payments. since august, that group has accepted 367 cases with claims totaling 84 billion yuan, 13.2 billion u.s. dollars. that's the tip of the iceberg. yvonne: thank you. stephen engle there was an update. you are seeing geopolitics playing into some of these stocks here today. biotech as well. a bit of a relief rally hereafter this congress department blacklist came out. it's like biotech is not included in these entity lists as well. you are seeing the likes of wishy biologic up 2%. some of these pharma names also doing quite well today. rishaad: we are heading for the japanese lunch break as well. it's all about the boj, not expected to do anything with interest rates. what will they do about their etf

thank you for bringing us all the latest there on kaisa.t ahead, grab failing to deliver -- good one there, huh? crashing more than 20% on its first day at school. more straight ahead. this is bloomberg. ♪ david: welcome back to the show. didi global, the beginning of the end and the beginning of a new beginning here in hong kong. the company has begun preparations to delist shares from new york and start looking at a hong kong listing perhaps early to mid next year. your initial reaction when you heard the news? >> not incredibly surprised, but it is big news. we are talking about a $37 billion market cap company. it is considered to be one of the darlings in terms of the home-grown tech startup in china. i think you have had some breadcrumbs. the cac is essentially the regulatory body that is pulling the strings here, and it goes back to earlier in the year when evidently the director held off on doing the ipo. it may be that they have run the gauntlet and what you see now is the regulators saying you are going to have to delist, but it i

kaisa creditors have yet to receive payment on a $400 million bond. canada will join the u.s., u.k.t australia in a boycott of the beijing olympics. justin trudeau says his government is concerned by china's repeated human rights violations. athletes from the boycotting countries will compete. china denies human rights violations and has threatened retaliation. president biden says the u.s. and four other allies planned a meeting with russia aimed at de-escalating tensions. discussions will focus on addressing putin's concerns about the alliance. biden held a two hour video call with putin the russian leader he -- [indiscernible] brazil's central bank delivers its second straight hike of over 50 basis points. another increase of the same magnitude for february as forces climb above target. the bank has raised rates by 725 basis points this year, the most among major economies. policymakers say the increase makes restrictive tightening appropriate. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 count

when it comes to kaisa, the key thing to watch as the debt restructuring plan.o specifics, but we can assume if the lagarde group representing bondholders that has presented this financial plan, and it does look like a difficult the to get across the line. several options are being proposed. they would need an acceptance of bondholders and there are nearly $12 billion worth of outstanding debt. it's a complicated situation to resolve. that is the key thing. of course, we want more clarity. it's one thing hiring advisors, but how you intend to deal with restructuring a large curve like this will be interesting for many offshore investors. partly because kaisa itself is interesting, as one of the only developers to have defaulted and successfully came back to market, it's historically watched as an example of success. haidi: we will continue to watch the fire sale. reporter: shimao, unlike evergrande or kaisa, they have taken many investors by surprise, a very popular name. it's very unexpected a name deemed for so long to be strong would run into trouble. we also

that could inject cash into kaisa and keep it afloat.uld allow the advisor to the group of bondholders more access to the financials and to do due diligence and understand how things stand. that means we are a ways off of any deal that could help save kaisa. we know creditors yet to receive a meant on the bond that -- yet to receive payment on the bond that was due tuesday. there are two things going on. on the one hand, the nda to inject finance that could help boost all of those obligations coming due. on the other hand, it does look like there is some if not official forbearance but there is some reluctance among the bondholders to declare any official default while these negotiations are going on. two parallel processes happening at the same time should juliette: we also heard the s&p saying a default at evergrande is inevitable. why are we seeing such a rally coming through in some of these dollar bonds the echo >> in that broader -- dollar bonds? >> we are seeing this bets out -- these bets on potential easing. things like the rrr

evergrande and kaisa both labeled default rating by fitch. fitch saying they did not respond to emails and therefore we assume, they did not pay those bonds. you are seeing a bit of a selloff when it comes to some of these real estate developers, but the big story seems to be -- i thought evergrande was going to be, but the renminbi seems to be taking the top spot. rishaad: absolutely. can you calm these you on -- you on -- yuan boats? this is the biggest diversions we have seen. we came in at 6.37, largest ms. since bloomberg began doing this survey of market participants. can it quell this momentum? that is the question ultimately. yvonne: let's start on this as well. yesterday, we thought it was quite a sticker shocker and now we see a day like today. >> we saw the foreign-exchange deposit reserve ratio also raised, and without that was quite a strong signal from the bank. what we see from analysts is actually that it is very possible the bank is starting to reintroduce these countercyclical factors that basically kind of influence the len

investors are waiting to hear if chinese developer kaisa paid bonds totaling $150 million due thursday. it failed to make other payments this month. here is a look at some market trading now. obviously, some sectors, japan and seoul and south korea rallying big, primarily on tech shares after some profit-taking in the u.s. alibaba up 8.8 percent, and as you can see, baidu up 9.4% right now. let's hop over to the mainland and see where the csi is trading. the shanghai composite index up about .5%. india futures just marginally pointing to a lower open. this is a picture of hong kong. this is bloomberg. ♪ david: this is my kitchen table and also my filing system. over much of the past three decades, i have been an investor. the highest calling of mankind, i have often thought, is private equity. [laughter] then i started interviewing. i learned from doing my interviews how leaders make it to the top. >> i asked him how much he wanted. he said, $250,000. i said, fine. i did not negotiate and did no due diligence. david: i have something i want to sell you. and how they stay there. you don

yvonne: we are learning details on why kaisa may have suspended their trading today.le we have been talking to, two holders of kasias bond do yesterday said they have not received payments as of 9:00 p.m. new york on tuesday. so according to our sources. they have yet to receive the $400 million payment that was supposed to be due on tuesday. so once again, we see more signs of possibly the dword emerging when it comes to the property sector. rishaad: to win approval for the dead, couldn't have extended the debt payment deadline. coming up, one of the biggest property developers planning to go global. we talk expansion plans. and the outlook for the indian property market with manoj mend a. this is bloomberg. yvonne: looking ahead to key stories investors are watching out of india. reserve bank of india very much in focus. the rate decision due in less than an hour's time. most expect the central bank to hold on this key rate at 4%. reliance industries has agreed to build a 2 billion-dollar dollar petrochemical plant in the uae, the first of its kind for reliance in t

kaisa heading in that direction as well.ulators, has no negative impact. rishaad: next we will look at asian benchmarks. a lot more on the way. lot more on the way. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. >> this is "bloomberg daybreak: asia middle east." stock futures stabilize as investors weigh the latest on the omicron variant. the recent information from south africa is not showing a rise in hospitalizations. chinese stocks and drop on growing expectations of a rrr cut. saudi arabia is said to raise $3 bi

obviously, it has been a calm few weeks of late for evergrande and for other developers be it kaisa, or another it yesterday that announced it was defaulting on $9 million of debt and interest payments. so there is that contagion risk. the hind all of this is what we have dabbed the evergrande effect. the developer with $300 billion plus in liabilities and this announcement they made to the stock exchange on friday, perhaps is the clearest indication yet that while they have been able to meet their short-term obligations up until now, going forward, because of that debt pile, they might struggle to make further payments. one of the biggest payments that will be focusing is a 30 day grace period on two bond coupons. it is due today. normally do on december 6. now december 6. time to pay up. they made a statement on friday saying that they will actively engage with offshore creditors on a restructuring plan. immediately after that announcement, the stock exchange, we got a flurry of different announcements and statements from various authorities in china whether the pboc or the guangdo

let's look at the holdings between kaisa and evergrande.rties think they are so more liquid than evergrande. their valuations are probably a lot less liquid and certainly a lot lower, so -- and by the way, we will also see the keep well position. there's a gentleman's handshake between the operating company and the holding company as to whether or not they will pay back those creditors. that has yet to be tested in the china legal system. we will see some evidence of that as well. kailey: the market seems to be pretty sanguine about evergrande being declared in default because we got a triple are cut from the pboc, but today you get the excess reserve requirements listed. is that the pboc getting really uncomfortable with a stronger you want -- stronger yuan? damian: we mentioned this the other day, that we deftly don't want to see that. you're right, we are still at 0.25% year-to-date versus the dollar. that means china relative to all of its trading partners were up 8.5% year-to-date, so it has been a very big move. they certainly want to

. >>> and kaisa is reportedly restructuring debt after missing a bond payment this week it is the largest offshore of dead after evergrande. it did not pay a bond that matured on tuesday triggering cross desituation. >>> back to the markets. looking like they may take their foot off the gas pedal following three straight days of gains the s&p 500 is now 1% below its all time intraday high he hit late last month. the index has been unable to break through the 4,700 mark the last month but any close above that threshold would validate a record high breakout craig johnson is the chief market technician for piper sandler. people watch these levels so closely but the all-time highs we've hit, are they then going to be the benchmark by which you have to gauge whether or not the selloff is now over and done with >> absolutely, dom that's perfect perspective from a technical vantage point. when you start breaking out the new highs, it's going to start to create a new leg higher if you go back and look at the upward trending channel you've been seeing for the s&p 500, moving to the upper end of th

but we are in the early stages of that in lieu of the defaults by evergrande and kaisa . i think that is an interesting point because it is your kind of global macro covid backdrop, which is all about capital flows, all about current account dynamics. one of the things that is interesting is china has not been able to recycle all of the ethics flows coming into its country. you have the trade surplus building up because manufacturing is booming, because of the reopening and one country versus the lack of demand or lack of supply and another. on the others out of it, there's all of this equity and flow coming in. there's an element that the current account has risen, there's a broad balance of payments in surplus, and europe cannot stop money from leaking out. there was a story where equity flows were coming back into the euro zone in early 2021, but that has partly reversed. a big part of this trade is the supply chain reconnect. if we see energy prices stabilize, if we see some of the reopening around mobility in the next three to six months, euro-china is trading on our

kaisa defaulted. i can add them to the list.di: let's turn to vonnie quinn with first word headlines. vonnie: the first reported experiments on the effectiveness of pfizer's vaccine against the omicron variant found it provided some protection. south african researchers said crohn's bama ability to evade immunity is robust but not complete. the booster shots could provide additional protection. republicans and democrats agreed on a plan to raise the debt ceiling, pulling the u.s. from default. the deal enables a procedural maneuver to increase borrowing authority with only democratic votes. the news quickly reverberated in the treasury market. new zealand's finance minister says the ardennes government will not resort to austerity terrain in debt. he says increased borrowing would not be responsible during the pandemic and he expects a strong rebound in 2022. police have arrested a saudi national for suspected involvement in the murder of jamal khashoggi. the man was reportedly detained in paris, about to board a plane for riyad

that extends beyond evergrande and kaisa. this is money that bonds are investment grade.his is considered one of the more financially healthy -- it is a euphemism i guess. a lot of these property developers are under pressure. the balance sheet was more healthy. it is the 13th of largest property developer by contracted sales based mostly in shanghai and the large metropolises rather than those we have seen suffering the biggest problems. a second day of selloffs. rishaad: james, give us a sense of how this plays out on the housing market itself. we see these bond price drops continue. >> looking at the data we are going to get tomorrow, it always -- it already seems to be that people are expecting fixed asset investment to continue to slow down. investment in real estate is going to be one of those things tracking it down. construction across the board is seeing a slowdown. the central bank has come out with statements about more easing, more support. some local governments could start selling bonds quicker. we saw the central bank come out last night and say the mortgag

kisa down 14% -- kaisa down 14%.rande could not go any lower was down 10% and shimao was down 9%. the route means that the richest bosses of all of these developers have lost 46 billion u.s. dollars combined this year. david: oh, no. stephen: yeah. haidi: genuine heartbreak and david ingram's voice. what do we know about the regulatory support for these quality developers, when you take a look at what we are seeing a state media the moment? stephen: it is adjusted because a decade or so ago, chinese developer told me, he says this is the game. when developers get into stress, and often times are highly overleveraged because of the nature of the industry, the more viable once buy up -- ones buy up the project and a cherry pic best projects. a note from the pboc, regulators is encouraging banks to provide property project m&a loans in an appropriate and orderly manner and supports quality developers to fund project acquisitions. and the pboc and the state asset regulator matt risley with large private and state own dev

the contagion as well coming from the defaults we saw last week from evergrande and kaiser -- and kaisa. what is particularly worrying about shimao is, it was considered one of the more cash rich or more reliable bond issuers. a lot of these bonds have investment grade ratings unlike many of its weaker positions -- weaker position peers. when this, the contagion, the liquidity problems exacerbated by these regulatory clampdown's on the property market, and it spreads to a company like shimao , the market, particularly in this case, react sharply. we will have to watch how the bonds fare today. six of the local bonds yesterday did halt trading. its share price come up about 12% area jp morgan, cutting the equity rating to underweight from overweight with a price target of just $5.50 hong kong dollars. the average price dollar -- price is over $22 but it is now seven dolightts. jp morgan saying it has further downside. shery: how much does it put -- help that regulators seem to be making it easier for regulators to convert yuan to dollars? >> it is critical. the state of the -- the state

. -- kaisa. it has also launched a fire sale of various assets to meet liabilities.t $3 billion of dollar donated -- dollar bonds that come to you. they will be set to meet these offshore bondholders over any repayment option. shery: another company we are watching in hong kong, sun city shares set to resume trade in hong kong after the chairman of the board resigned. joining us is our bloomberg reporter. what can we expect? >> we will obviously be closely monitoring the share moves off of sun city. sun city earlier put out a statement saying the chairman and executive director resigned, and the group actually doesn't operate junket businesses in macau. sun city said the company that operates the junket businesses in macau is a company wholly owned by alvin chow. we will see if this statement can ease investor concerns. when sun city resumed trading on tuesday, the stock plunged 48%. today, i think it is likely the share could fall further. haidi: do we see a broad impact on the december gaming revenue numbers from macau? >> yes, it is likely the december gaming reve