>> the pboc has -- i am quite nervous. overall, the leadership view that the economy continues to face is uncertainty and challenges. while the vexing development, the effectiveness remains unknown. the turn on the environment has been a certain with the new u.s. president to take office in the next few months. i think that is why the central economic conference is highlighted. stable continuity should help support the economic recovery. haslinda: still to come, surging shipping rates as logjams persist. we will look at the sectors next, this is bloomberg. ♪ >> a buildup in the supply chain -- a shortage in shipping containers has hit a wide range of industries. cheekily, the auto sector. what is driving the container shortage? >> you have a combination of strong global demand for work from home technology, the personal health care kit. it is a shortage of containers because of restrictions around the world that makes it more complicated to get these containers back. that is complicating the turnaround. that is part of the

my question was around the pboc, not the fed. like, the pboc's withdrawal of liquidity.is: i think there is a balancing act there as well. the market has been focused on the fed, but what is really important for me as a traitor is out dollars in asia trade. the big influence happening between chinese government debt relative to what we have been seeing in u.s. government debt. and therefore you have seen inflows into chinese assets. so i think you will see a situation where the chinese yuan would strengthen and dollar cny has been the most influential currency for the global influential trade. there has been a big downdraft we have seen into the 640. it's been so influential for copper, base metals, industrial metals. if we do get a situation where we get earlier liquidity, it will be net yield advantage on chinese debt increases. we see more inflows and it may break 640. that just means commodities will be incredibly well. yousef: chris, thank you for joining the program. chris weston, head of pepperstone group. more ahead. this is bloomberg. ♪ is bloomberg. ♪ are you f

ok, professor, with your hat as a former advisor of the pboc firmly on, what do you think the pboc'sary policy response this year, given the forecast of between 8% to 9% growth? >> well, last year pboc maintained the so-called noble monetary policy. they did not really go to the extreme like the ecb or fed. this year if growth recovers as expected and we all know there are a lot of uncertainties around it, if the growth recovers as expected, i think the pboc policy will probably be much much more prudent compared to monetary policies and the rest of the world. how quickly it might actually -- monetarylled easing, policy conditions in the past really pans -- really depends on data. i do not really have a fixed expectation of what pboc will do. two things i think are very clean. -- very clear. very conscious about maintaining strong growth in china, and the numbers, they are very reluctant of getting into a very excessive monetary policy conditions. my sense is we might start to see some tightening of monetary nd extent isa time a very difficult to predict at the moment. tom: ok. is th

the pboc has been signaling this for months. the economy is recovering.sure it stays recovering. what does that mean? we aren't sure yet. let's listen to what he said today. >> our monetary policy will continue, and we will keep a dedicated balance between supporting economic recovery, while at the same time preventing risk. we will ensure that policy is consistent and stable and will not exit from supporting policies prematurely. kathleen: preventing risk from debt? what would that be? too much liquidity, people taking too much leverage? here's why people are so focused on this. the people's bank of china yesterday came in and drained $12 billion worth of liquidity from the market. that is a regular operation, but it's unusual time for them to do it because it is so close to the lunar new year holiday, at a time when they would be adding liquidity. you can see the overnight repurchase rate. yesterday, it hit its highest level since 2019. the other thing that happened yesterday was that the pboc's advisor said he was looking at asset bubbles, the risk of

>> we expect the pboc to remain very loose over the long-term. they have a lot more tools at their disposal than some of the other central banks. that is what we expect. this short-term around important eights -- dates around the calendar, we think it is short of short-term. over the course of the long-term, we would expect the pboc -- yusef: i am looking at some of the asian stocks. the rally and south korean stocks that appears to be running out of steam as volumes begin to shrink, where would you tell investors to perhaps buy into weakness specifically given the strong rally that a lot of these indexes and individual companies had in a very short amount of time? >> the current weakness is an opportunity to buy into markets and sectors that will benefit from cyclical recovery. this will include some of the north asia markets like korea, taiwan and don't forget that japan is a great play on global cyclicality. those are areas that we would like to add. we would do that in anticipation of sharply improving in the second half. yusef: thanks for th

haslinda: you talked about how the pboc is likely to go on a policy normalization stance. how quickly do you expect that to happen? what do you expect to happen in the next 12 months? >> i would say near term we see they are taking a pause. what happened is as the rates increased, some of the week borrowers started -- weak borrowers started to have credit issues. there were concerns that the stress could spread. in our view, it was limited, but i think from a policymaker perspective, they wanted to make sure things were not compounding the crisis, the stress is not compounding. they are pausing for that reason and also i think in the near term, we see an increase in pandemic cases in northern china. that is probably giving policy makers another reason to pause. also soft consumption data we just bought today is another weakness. i think in the next couple of months, i think the policies are still neutral, they don't want to tighten too much. later in the year, given that overall the yearly objective is to stabilize the economy as a whole, i expect the pboc to tighten the p

the pboc unexpectedly withdrew some liquidity. this is the first time in six months it has happened. it was small. liquidity easing over the past two months is designed to contain the fallout from a string of onshore defaults. that maybe over. your expectation for their next move in light of the data and the macroeconomic backdrop? >> i think they will continue with the policy they have been following for the last year, which has been to keep policy on the titer and -- the tighter end of the spectrum. we had concerns about a spike that was driven by food. now it has gone completely the other way. in a way what is happening is the pboc is maintaining a tight policy regime in an environment where the economy is doing fairly well. we don't expect any dramatic changes. the loan prime rate decision is coming up this week as well. we think no change there. pretty much from the pboc perspective, it's going to be steady as she goes. yousef: what are the implications for the local currency and ultimately your view on chinese assets? in the

let's start with the pboc. worried especially given how high valuations are at the moment? reporter: that is something investors are definitely watching. we have had a lot of liquidity in the market. . there's been a lot of frenzy. here we keep hearing from investors about superlatives and the markets about things are great, and lots of money, and low interest rates. we saw that the pboc had started talking about the risk of a bubble and with bubbles, those a very chilly -- eventually because concerned so the pullback is i guess warranted for the draining of liquidity. david: ok. does that inform us of where some of these favorite stocks like tencent for example, as you has -- have reported, a big recipient of the stock, the people who have bought tencent recently, do they need to start looking at these risks? reporter: it is tricky. yesterday we saw an amazing rally intent for -- tencent. about 11%. today it's down 5.5% or so. some of it is profit-taking. is it the beginning of the end? probably too early to t

the pboc warning is worth paying attention to.his is a direct rebuke that the markets are looking frothy and they don't want this to continue. people are right to pay attention. the other thing is there has been worrying price action. in the u.s. sec., u.s. stocks finished higher, but that masks the fact they fell in the middle of the day and recovered. it was a different dynamic in individual names. tech was outperforming. we are no longer seeing the reflation trade that was all about the new biden administration. there is also the u.s. estimate, treasuries and the dollar were pricing this idea that, hey, we are going into a haven asset, stimulus is going to be delayed, but stocks do not seem to mind. the lower correlation within the stock market, the fact we are seeing such volatility in names like tencent, the fact we are seeing the pboc give warnings does make me feel we are in a slight turning point in the cycle short term. it does feel like we are struggling to contain the momentum. matt: -- anna: really interesting -- [laug

submitting plans to become a financial holding company overseen by the pboc.ng here. more stringent capital rules. let's bring in our greater china finance senior editor. take us through the latest. what do we know about these efforts to resurrect these massive ideas that we had? >> there are a lot of moving parts. it was reported back in december that and is considering forming some sort of financial holding company. -- aunt -- ant is considering forming some sort of financial holding company. it is unclear how far regulators want to go or what the timeline for this would be. they are working in artificial intelligence. the big question is whether the payments will be placed. haslinda: what happens with syntax in china? >> regulators are looking at the panels. the big question is how they calculate beyond payment markets. the proposed rules to limit market concentration there. that could hurt alipay, the dominant payment app in china. we could see caps on how much banks could partner with them. further funding capital requirements. we could see redistribution

this is the pboc tact.g to get other comments from the banking and regulators, from the antimonopoly watchdog. we are likely to get new developments out of the national people's congress in the first week of march. there will be new developments on this front that investors who have seen the rise of the internet space and the tech titans like jack ma and alibaba and tencent will be keen to watch. rishaad: stephen engle there. let's get to the first word news . japanese exports rose last month for the first time in more than two years. despite the coronavirus disrupting the value, overseas deliveries to percent year on year. that snaps a 24 month long losing streak. this is amid the pandemic and trade spats, but that is slightly below expectations of a gain of about 2.4%. australian unemployment down in december as a big spending government budget and a second round of stimulus spurred an economic recovery. 50,000 new jobs created in the month, dragging the jobless rate down by 2.6% or whatever it is. that b

the pboc sends ripples through chinese financial markets as officials warn about bubbles.rime minister will resign today in an effort to form his third government. ubs has announced a share buyback of up to 4 billion francs. 4.5 billion dollars, a big beat on net income and wealth management. here is a snippet of our interview with ceo ralph hamers. >> our business model has been successful getting through this pandemic. it gives us the confidence we can announce the share buyback program for the next three years, of which we will perform more than one billion in the first quarter of this year. 2020 has been specifically -- the fourth quarter has been quite good in terms of professions.

pushing the market to its highest since 2016 despite extra credit from the pboc.high stakes in india is the government prepares a budget to revive its battered economy. it is described as a spending plan like never before. haidi: having a look at the markets asia, tracking gains in the u.s., but still asian stocks on track for the worst weekly loss in 2021. u.s. futures up, pointing to -- up and down after gains overnight. there has been turmoil created by internet chat rooms, sparking fears of broader consequences for wall street. david: in india, to your point, also not immune to the declines we are seeing this week, the we are getting a little bit of bullishness as far as futures are concerned. when you look at india futures, we are sitting right on top of your 16-day moving average. in terms of gdp numbers, to give you a preview, we are getting out of hong kong and another up from taiwan later today, and we will have some pmi data from china sunday and looking quickly at the philippines, might just have your biggest ipo in that market. details on your screen.

the comment on an uptrend -- usually the pboc does not reverse its course.might see some fine-tuning here and there. they will be very data dependent, but we do not see the pboc shifting its policy normalization. haidi: we really appreciate your time. the chinese investment strategist there. more on china's economy ahead. plus, we will be hearing from others. let's take a look at how markets are faring in this early part of the trading week. set fiasco -- sophie? sophie: the kospi is fluctuating, heading lower. samsung is weighing on the benchmark. we are seeing an earlier drop while solar futures are extending the reddit rally. a quick check on some stock movers. in japan, some early report cards. gaining ground. the road to recovery looking more challenging. we are also manufacturing -- this after it left its view unchanged. we want to highlight the drive, citing differences when it comes to tech and production. seeing shares rally today. this after a price target of ¥7,000. this after saying it wanted sales approval from canada. saying that it is recruiti

this new regulations today from the pboc will still weigh heavily on transactions platforms, both alibabacent. rishaad: so, you mentioned, what are these new rules? there are a lot of questions over the scale of this clampdown by beijing. >> the regulatory reform process in china is just beginning. the last time they revamped the antitrust laws was 2008. a lot has happened since then. with alibaba and tencent creating this duopoly with into into services on their platform, and feeding that to their payment platform, regulators contend it is stifling new entrants and competition. alipay it is the big one with more than 55% of the market. these new rules say if one entity has more than 50% of the market in online transactions, or two entities have more than two thirds, and those two companies have more than two thirds, that can be designated a monopoly and regulators can break it up. you can get a grace. . time, and then you would have to remedy the situation. this is just the opening salvo. we have to hear from other regulators, including the antitrust watchdog in china, as far as these ne

haidi: said to have submitted plans to become a financial holding company overseen by the pboc.ow jones reporting they will be subject to more stringent rules amid pressure from beijing. our chief north asia correspondent david engel is here with that. we heard from the pboc governor just a couple of days ago may be giving a little bit of cautious optimism with the possibility of the ips resume -- with the possibility of the ipo resuming. what do we know about this now? david: at the world economic panel on tuesday, they said the matters are complicated and need lve.ear legal framework to giving a sliver of hope. the problems, more and more reports on the scope of this regulatory crackdown, and the focus and emphasis is on maintaining -- on preventing financial risk as well as breaking up monopolies. it will be an arduous, lengthy task indeed. do not rank your savings on it happening because, again, this dow jones story is basically extrapolating on other reports we have had this month, essentially saying that aunt plans to turn itself into a financial holding company. dow jones

no matter how careful the pboc in terms of providing liquidity, it does -- it is not a full plan.-- fool there are challenges to access capital markets at this point. rishaad: but things could all change if we do see more defaults coming through, this drip feed approach that has kept investors calm, may not be enough. >> indeed, it may not be enough. we have already seen that some, a lot of bond issuance is that have been and the pipeline have been canceled. so, a lot of these bond issuances were from companies that were quite profitable. so, we are seeing some tracks and -- dips in the market confidence and it could pull down good credit with the bad. because right now the onshore risk has clearly been capped. and we've also seen that the bond yields in china has also started to go down. quickd: very, very question, and that is, which is eel prediction for 2021? dollar-peso that the will continue to go down considering that the philippines is likely to be the last to region,in thg-- in the even if we have a lot of vaccines available. rishaad: thank you so much for joining us. from seb,

. >> the thing we are watching out for is whether the pboc will be maintaining a tight policy in theof an economy which is potentially on the brink of deflation. francine: china was the only global nation to avoid a contraction this year. joining us now is the global head of em research. thank you for joining us. when you look at china, the fact that it is growing, does it help the rest of the world? >> that is a good question. i think it does. we have seen in the past the chinese cycle recovering actually helping. december has been a great month. obviously we are still in this environment impacted by covid. china is producing the goods the world needs. over time, the growth has impacted the rest of the world and china has continued to recover. we make it into a better global environment so i think the short answer is yes, that it does help level trade in commodities, etc. francine: if you look at when china will start spending and helping the world grow that way, how far is that way? >> i think we are in an environment where china exports are performing in other parts of the economy

. >> the thing we are watching out for is whether the pboc is actually going to continue maintaining very tight policy in the face of an economy which is essentially on the brink of deflation. francine: still with us, paul donovan from ubs wealth management. how much does this economic growth in china help the rest of the world? paul: basically not at all. the data in my view is actually little -- a little troubling. if you look at domestic demand, the retail sales as a proxy for domestic consumption, that is underperforming, so what the chinese data is telling us is two things. it is telling us china has pulled the levers on the traditional but perhaps not productive areas of the economy so you get a huge boost in real estate investment, for example, infrastructure investment. these are areas under government control or a lot of government control but not necessarily productivity enhancing, and then you get exports. that is telling us the european consumer and u.s. consumer is doing a lot better, but the consumer is not able to go out and spend on services so they are spending on go

the pboc has a lot more rules to cut interest rates, inject monetary stimulus.ing a good job in terms of containing the covid-19 infection. are still reasons to be optimistic on china. the chinese stock market has done well. you can focus more on the domestic place in china. there is still opportunity in that area. kathleen: it has been a great opportunity to have you on tonight. let's get to karina mitchell with the first word headlines. karina: two weeks after brexit finally kicked in, regulators are winning that some u.k. financial firms are already resorting to what they call questionable practice to preserve their single market status quo. the european securities and markets authority say some companies are skirting rules on solicitation, which allow them to work for an e.u. client only if that customer has approached them. the italian government is a step closer to collapse after a jr. coalition member pulled out. the party had just 3% popular support. he is attacking the prime minister for failing to resolve the coronavirus fallout and the wider weakness

one of the big questions is when the pboc will get involved in trying to suppress that valuation. it's an interesting factor. tom: we are halfway through 2021. or at least it feels that way. we are going to continue, thank you for the emails saying thank you for not doing washington 24/7. but we still focus on the nation's capital. news overnight as well. a briefing coming up. and coming up later, michael schumacher from wells fargo security head of strategy is reassessing $2.2 trillion waves. this is bloomberg. ♪ ritika: it's up to the senate, the house put president trump in the history books, impeaching him on a single charge of insurrection. this is the first time any president has been impeached twice. the resolution was supported by democrats and 10 republican. it now goes to the senate which has refused a request to bring senators back and start the trial before next week's inauguration. meanwhile president trump called on americans to unite and avoid further biden -- violence. the video was released one week after capital. the president condemned the violence and it says t

is there a risk that central banks are a more hawkish than we think, whether it is the pboc, dialingk some as the economic recovery in china takes hold? loretta mester today was talking about how maybe you could raise rates in the back half of next year if things work out -- sorry, you should taper asset purchases, not raise rates. if that something we need to consider for 2021? chris: i think that is probably a theme for the second half of the year. if economies really get going and all of this cash on balance sheets gets spent, they are going to look very punchy, and the lenders will start changing. i am surprised that loretta mester has done it quite early, but clearly jerome powell is not in that mindset. if you get more than changing the language, we get into the phase two, and phase two is really the bond yield curve anticipating some sort of tightening some way out there, and that leads to the consolidation in equity markets. to me, that is the big focus. i think wall street is far too bullish across the board. it is going to be much bumpier this year than people think, but ha

yesterday, when we saw the pboc setting a midpoint for the did not-dollar, it necessarily suggested thatket had become too bullish on the run and be. that was in it -- bullish on the renminbi. that was encouraging for the market. the market feels like renminbi can go further. a big factor is this trade deal signed between europe and china. it wants to look more at the euro-renminbi exchange rate, too. that has not seen the same movement as the dollar one. tom: jane foley, thank you so much, rabobank head of foreign-exchange strategy. i am watching that negative -1.1014. ritika gupta. ritika: it is election day in georgia. both donald trump and joe biden held last-minute campaign rallies on the eve of a vote that will determine which party controls the senate. the republicans need to win just one of the two seats up for grabs to maintain their majority. win.emocrats need to both seats boris johnson is counting on 2 million coronavirus vaccinations in a week to help the u.k. recovered. the country went back into lockdown and attempt to keep hospitals from being locked -- overwhelmed. has o

the pboc may ease the liquidity support that has been in place. i had of that, it had been hovering at 6.48. there could be a slight discount suggesting a bullish tendency. the dollar is seeing some stability. the greenback did cap its first back-to-back gain since september. and fund managers -- 36% of them are still favoring the weaker dollar trade. and about one third of the respondents say it is still too early to call where -- when the dollar decline may occur. we are going to wait to see as the biden administration can deliver on that front. >> we will get more details on that this week. we are counting down to the inauguration this week. he will be sworn in on wednesday and is due to call for unity in the wake of the capital attack. he has indicated a 10 day blitz of executive actions to reverse some of his predecessor's most contentious policies. how likely is it that joe biden will get the kind of unity he has been repeatedly calling for? especially as we get to some visuals of what is happening in washington where you are right now. >> i

where do you see that trade going, and the pboc's position in particular around that?n: that's a very good question. our view basically is that the remember the has further -- remember the -- renminbi has further upside. it's stable to slightly appreciating currency would arguably also help the domestic policy objective, which is to promote so-called domestic circulation, and thereby -- secular -- circulation. there are two sides to the coin. but further upside for renminbi against the dollar makes sense. yousef: the natural segue for that is the hong kong index at 30,000, the fast road it's taken to that level. does that mean a cooling-off period is likely in the pipeline now? stefan: could be, but actually, as a first part of call -- port of call for domestic china investors, hong kong is a very attractive market to turn to. i think that dynamic is not going to change, especially if we have further issues in the united states. invariably, that's where chinese investors are going to turn next, which is the hong kong market. yousef: a good backdrop for equities. genera

you are hearing that from the pboc there was a selloff in a number of chinese stocks.: president xi at davos agenda. he was there yesterday. "balance of power." new jersey governor phil murphy. dow futures up 78. stay with us on bloomberg radio and on bloomberg television. ♪ ♪ jonathan: from new york city for our audience worldwide, good morning, good morning. 30 minutes until the opening bell, futures positive. we begin with the big issue. investors increasingly concerned about one thing. >> the bubble. >> bubble. >> we really are looking at a bubble. >> there is a bit of froth. >> it is the function of the rotation. >> we have recovered and we are moving on to new highs. >> massive liquidity. >> reminds me of 1999-2000. >> i guess the bubble becomes a dome. jonathan: how long will it last is the big question? the diplomatic way of talking about this is pockets of froth. how many times have you heard that the last couple of months or the last 10 years? let's bring in kailey leinz. kailey: froth, bubble,

. >>> former pboc monetary committee member has told cnbc he is optimistic the biden administration canair damage done to the chinese relationship during the trump years speaking to our colleagues in singapore it, as part of the davos agenda, he said the new president's advisers will be key. >> overall i'm very optimistic about the relationship the single most important reason is the team of president biden is very experienced dealing with china. and china is most comfortable dealing with such a team many top cabinet members are old friends and negotiators of china. this is single 340es important reason reversely, the problem of president trump with dealing with china he was dealing with new teams and they were using a call, a barking strategy even with china, which backfired. i do think that the relationship will de-escalate more important, the overall temperature will come down allowing both sides to really negotiate and cooperate on many issues >> i have to say, though, that politically the temperature is not coming down, it seems, between u.s. and china is that going to complicate t

you see the pboc draining some money out of china, yet the metal still holding on relatively well. guy: let's talk about gamestop and alone more detail. shares trading again. they were halted around the market open. let's get some details as to what is happening today with abigail doolittle. ritika: it is really ash abigail -- abigail: it is really pretty extraordinary. this is the poster boy of messageboard trading, this stock heavily shorted by wall street on the idea that brick-and-mortar gaming store would have a demise, but on these message boards, you were mentioning reddit, saying by the stock -- saying buy the stock over the last four days. up 131%, something incredible, especially since the wall street pros are saying you want to sell this stock. the other parts of this has to do with the options market. if you go to the bloomberg terminal and take a look at call volume, recently at a record high as investors, these retail traders want in. calls the cheap way to go along in the market, so calls exploding. we were talking about a peculiar feedback loop that has had, specifi

tom: how much is that a reaction to the expectation that the pboc will be less easy and its monetaryesponse this year? sides,it's driven by two mostly due to less reserve so 2020, aokings -- lot of the profit decline was driven by mbl reverse. this year, we think they will normalize back to the pre-covid-19 levels. policy,ndly, the probably will be not as loose. interest rates will stay relatively high and that is good for the interest margin. so from both angles we see positives. tom: so as a result of those higher rates, to have a forecast for the banking sector? guest: we think they were largely stable. versus 2019, the interest margins come down somewhere around 10 to 20 basis points average. 2020, and will probably be steady. let's decline. some of the banks, if they do more regional lending could even see margin expansion. the bankings of sector, there is sometimes a bias to focus on the big state banks. but there are all these smaller players impacted by the npl's, the rising defaults, we have seen some very high-profile defaults. how fragile are the outer fringes of this bank

they could be taken profit more they could be acting on behalf of the pboc.hening. it is one factor weighing on the dollar-yen. rishaad: they are trying to get u.s. vaccinated as quickly as possible. at the challenges facing small business and help to survive the pandemic. >> businesses are a vital part of our economy in a way that they employ families, contribute to communities that we operate a -- in. they need help. some help has come, but more is needed. we are trying to let congress know that there are things that they need help on to get to the other side. they need help to get through the tunnel. >> a lot of this is about this. solomon plan?vid what is needed in terms of the amount needed? >> one of the things that we have done, given that we have over 10,000 small businesses that have been to our program, we have surveyed them, talked to 10,000 voices,d a platform. we ask, what do you need help with? they raise a number of issues. i highlight three of them that are important. they need capital to bridge them through. [no audio] around health care. oft

. >> the question is how tolerant the pboc is when it comes to you on gains. >> not very aggressivelysaging is there. i think that is something that has resonated with us, not to get too optimistic on the currency. it is about trying to reform the exchange rate, naked more flexible but not get stuck in the old behavior of the currency back in 2010 up until 2015 when the currency became very overvalued and that one-way appreciation was too entrenched. i think that china wants to avoid those problems. they are doing a very prudent set of policies at this point. >> what does it mean for imagine market currencies in 2021? >> the way we would categorize the broad dollar outlet is a benign dollar. yes, i made the point that a lot of the weakness is already played out. that does not mean we are on the cusp of meaningful change? i think it is a benign dollar. if the dollar is not going to be weakening too much for strengthening too much for that matter. that is going to be help before emerging markets and probably attract portfolio inflows. that is a better state for them to have been in for

karina: staying on china, the pboc says it will balance growth with potential risks, signaling no immediate existing policy. a governor told a virtual conference that strategy will adjust to economic development and maintain stability to avoid what he calls policy -- a policy cliff. china was the only major economy to avoid flatlining or a contraction. in italy, the prime minister is expected to resign later tuesday to avoid defeat in the senate and plan his return to frontline politics. he will host the cabinet before handing in his resignation. sources in rome say he hopes that by quitting before being defeated he will be offered the chance of forming a new government. indian farmers are converging on new delhi again as they step up their campaign against new laws. they plan to march through the capital later tuesday as india marks its republic day. rural leaders say the government 's proposed laws favor corporate agriculture and make family-owned farms unviable. global news, 24 hours a day, on air and on bloombergquint cake, powered by more than 2700 journalists -- bloombergquint take --

and this week, we saw the pboc come out with more regulations on credit. on the so-called financial holding structure that they have to receive a license for that the idea is that they are planning to cut all the assets that need a financial -- to put all the assets that need a financial license into that entity. haidi: how is jack ma doing? lulu: the million-dollar question. our sources say he has not been detained. he is in the country. he has not been seen in public ever since the november ipo halt. his ownan that, fortunes have tumbled almost $11 billion since the end of october. broad gains across asia. let's turn to sophie kamaruddin with a check on what stocks she is watching. , weie: here in hong kong are keeping an eye on mgm china shares. there are no plans to restructure. morgan stanley -- on mgm china shares to underweight. hong kong brokerages on the watch. they're looking for a rebound in the space. h shares are attractive. radar on as on the report that beijing regulators may suspend it from conducting business if it cannot finalize plans to

we have the central bank, the pboc, training cash from the financial system, interbank borrowing costst withdrawals since july, also new numbers, 3.7 percent increase from a year ago in december, and xiaomi and cnooc under pressure, as the pentagon blacklist those entities. a lot more on the way. this is bloomberg. ♪ haslinda: we are counting down to the india open. higher and higher they go. another record for the sensex. not yet at 50,000. investor sentiment boosted by hope of the economy. earnings turning around. questioning of gains have gone too far, too fast. many more corrections around -- along the way. we are keeping tabs on hcl technology. four rupees per share. revenues of two to 3%. crossing the 10 billion milestone. the virus front and center. india will start one of the largest vaccinations. people from -- it is planning to offer 20 million doses of the vaccine to its neighbors. nepal, bangladesh, afghanistan and mauritius. the india open coming up in about 14 minutes. rishaad: governments administrations across the asia-pacific from japan to hong kong. the caution coming

the pboc made it clear they did not -- the pace of appreciation.the daily fixing's to lift the dollar yuan rate to some extent. they are relatively happy if it does go for a priod of -- a period of fluctuation from -- -- a period of fluctuation with the dollar was dominating at setting the pace for the dollar-yuan. they set the policy based on where the on shore yuan should be, not for anybody else. they will be much happier if they see the dollar against the offshore trading slightly weaker than the on shore. it is beginning to do that. we are seeing at the past couple of days, that the offshore, mostly traded in hong kong and other cities like that, is starting to lose a little bit of traction. that will be something which would reflect what we are seeing for most of the past seven-years -- 7-8 years. it's not to say that you want -- the yuan is going to change sharply. the numbers are very strong in the chinese economy, it is in a good place and will remain that way for some time. the yuan is a strong currency and will probably get even stronger

. >> we are watching out for whether the pboc is going to continue maintaining its very tight policyan economy which is potentially on the brink of deflation. matt: guests reacting to familiar number -- 6.5%. chinese growth picked up where it left off before the pandemic making it the only major nation that group during 2020 as president trump dealt a last-minute attempted blow to beijing by revoking the licenses of several huawei suppliers to sell to the firm. even during that trade war, donald trump's trade war, china seems to have been doing ok economically. carsten brzeski is still with us. what is your take on the china growth story? they are certainly doing it. the details are more murky than they would be with a more transparent economy. but, is this something that investors in the west will have to take advantage of now? carsten: what we see in china and even in greater asia is that there was no state -- no second lockdown or wave of iris. china is the only country and region that experienced recovery. this is extremely positive. and the economic power is moving away from the

an already are starting because the pboc, the central bank in china has released draft rules within hoursng out of jack ma yesterday. the new rule stipulate that any non-bank payment company with 50% of the market in online transactions or two entities with a combined two thirds share could be subject to antitrust investigations. then they could be broken up, or they could also be subject to one year grace period to fix their problem. if you bring up the pie chart, you can see that duopoly in effect, definitely with alipay and wechat pay having absolutely the lion's share of the online payment platform. alipay used to do have 80%, now down to 55%. wechat pay, 38.8%. others like union pay, we pay from xiaomi and others make up a small fraction. there will be changes coming because of the antitrust regulations coming down the pike from china. shery: we will be watching. stephen engle, are chief moore's aphasia correspondent. coming up next, hong kong stocks are off to their best annual start in decades with the key 30,000 level, a few points away. the outlook next. this is bloomberg. ♪erg.

when you look at the survey data from the pboc, like intentions to post -- purchase a car or durablerelatively powerful and that suggests that it is a complicated situation because you take consumption away from the economy last year when you are forecasting what to expect. you will obviously see consumption coming back online and be strong in 2021, but the basis is because of structural transformation? my expectation is this is not necessarily a structural thing, it is basic. even if you get anywhere close to normal consumption this year, you will be seeing rapid headline growth rates in consumption and more growth driven by the consumer side rather than the investment side. haidi: i'm curious as to what you observe when it comes to consumer willingness to take risk. when you take a look at some of the things happening, like the lockdown recently, do you anticipate it will impact the amount of risk people take into the spring festival and how much travel we see? you take a look at the u.s. where the virus deaths are nearing 400 thousand, but people are still getting on planes and tr

the pboc indicates the mega ipo may return when current issues are resolved. haidi: let's look at the markets amid heavy earnings overnight and more expected in the asian trading day. this is how we are setting up when it came to stock trading in sydney. seeing downside about .1%. looking ahead to australia inflation today. that has moderated in the fourth quarter and potentially that impacts what we can expect from the rba. you're seeing modest upside when it comes to trading in new zealand after the country said it was likely to keep borders closed to most of the rest of the world throughout the course of 2021 amid global concerns about the effective rollout of the coronavirus vaccine. chicago nikkei futures trading pretty flat at the moment after a mixed session on wall street. s&p futures up by about .2%. it's a big earnings day. lg out, kia, samsung, bnp, among many, many others. really on the agenda for investors in asia. shery: let's get more insight on the markets. stocks seeing their biggest downturn in two months. investors weighing vaccine distribut

watch the pboc update on loan rates for china. we also have malaysia's policy decision. haidi: right. joe biden's pick for one position, janet yellen prepared to take on china's abuses. let's get the full picture from our reporter. let's start with janet yellen stimulus push. one calling this a laundry list of liberal economic reforms. what is the outlook for this package? >> the bottom line is they will have difficulty pushing this package through congress, given republican objections to the $1.9 trillion price tag. they went through the trump administration without raising that objection to spending, but now that a democrat is in the white house, they are raising objections, but it spells trouble forgetting that stimulus passed quickly. haidi: janet yellen said the u.s. is prepared to take on china's abusive practices. we have been watching for the direction the administration takes to beijing. let's bring in tom mackenzie in beijing. tom: echoes of the language we heard over the last four years when it comes to china, trade practices as abusive the fact china had stol