this is of her time -- this is the first time that the pboc has responded.e pboc is watching this and he thinks that china will be able to control the evergrande risk. one key thing to note is that the pboc is looking to limit the risk from spilling over into the rest of the real estate sector. i would love to have asked him how he thinks that is going. we are seeing more companies saying they will struggle to pay coupons do on their dollar debt. a lot of deadlines looming this month. and evergrande with a 30 day grace period also coming up in october. we will see 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

we have been focusing on commentary from the pboc. wrecking your silence when it comes to the broader systemic risk from ever grand saying he sees that risk to the broader economy and the downside able to be contained. it is interesting because from the people we spoke to, the focus is shifting from just ever grand to beyond. the surprise from fantasia, these payments that have continued to be missed and what it means for the ongoing debt situation for the local governments that are now going to have to handle situation. it seems that pboc from a top-level view that can be contained. shery: we're seeing that weakness in the property sector already. but is lit into the sharp pullback when we saw in credit growth in china. it really is not surprising that goldman sachs is saying that china will not cut the rrr. they are saying that the pboc pledging to keep liquidity relatively stable means it will not be a cut from the rrr but open medium-term operations and we will continue to watch how the pboc carries out policy. the risk right now

the pboc governor says china can contain the

the pboc governor says the recovery of the chinese economy remains intact.rowth slowed this quarter, 4.9 compared to 7.9 the previous quarter. he forecast the economy would expand by 8% this year. scott is still with us. there is optimism that growth will fire through on the energy rises and let's say the controlled slow down in the building industry. do you share that enthusiasm, 8% growth, what would that do to your equity exposure in china? scott: listen, i think the chinese growth story is very interesting, way down from first quarter numbers, plus 17% in q1. 2022 is very important for china, we have the olympics, the party congress, and the growth target for the country is 6% and we believe they will do everything they can to get growth levels back to that for the year of 2022. which in our mind means they will use levers like physical policy -- fiscal policy and monetary policy and even regulatory policy to achieve those goals. we are positive on chinese equities on the view that despite the recent lamp down activity, with -- clamp down activity, with

rishaad: the pboc governor weighing in on the crisis of evergrande.et's get to the fallout from that property developer and get to stephen engle who is our chief north asia correspondent. you have confidence this could all be contained, but markets still aren't so sure. steven: that's right. and it's worth noting here that this was -- he gave a speech, he gave his speech at the g 30 financial virtual meeting. during his prepared comments he did not mention evergrande by name, but did and mentioned evergrande and 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

it was clear the pboc would show some kind of protests. when the rate was trading considerably low in the market. so we saw them set the fixing quite a bit higher. that is a clear sign they are not happy. but they don't appear to have instructed anybody to slow it down. the onshore rate just above 639. more than a big figure. it looks as fundamentals are winning out. they are quite positive. that is clearly winning the day. rishaad: joe biden seems to be working toward finalizing an economic package. give us a sense on how it plays out. >> in the bond markets, we see treasuries selling. the details are thin so far. but he sounds more confident to get a stimulus plan approved. it will most likely mean good for equities, not bonds. moves and ages. down from where they were yesterday. that is what you would expect. if it would be good for economic growth, if more government borrowing would come ahead. putting pressure on australian bonds, japanese bonds. slightly supporting equities today around the region. all in all, people would like to se

su not to the pboc governor.na will continue: steps to curve monopolistic behavior among tech companies and to strengthen consumer data protection. the central bank will tighten regulation of the payment sector and ask all financial services companies to be licensed. he also laid out steps to clean up the fintech sector. >> the winner takes all nature of platform companies could lead to a market monopoly and compromise innovation efficiency. some platform companies see market share through cross subsidies. adopted anti-competition policies. su: the imf managing director is preparing to fight claims of temporary with the world bank report. she has hired a white-collar defense attorney to represent her. she is accused of pressuring world bank staff to adjust data for ranking in china's favor. her attorney says there are substantive errors in the allocation. on the topic of covid related trouble, u.k. has eased entry rules from 47 countries and territories previously subject to the tightest controls. visitors from s

chinese equities, pboc injections in the last hour. when it comes to this call, china says they don't have much to offer in terms of information. talking about in -- talking about economic cooperation. that was enough to lift u.s. futures. breakeven levels here. looking pretty elevated today. we are seeing risk on across the board. david: commodity markets, third prices are back in focus. you and i were talking about it. rarely do we look at apple futures. 8500 right now. also energy commodities, rent, -- brent, cold down 9%. the line was at the and drc they are studying mechanisms to stabilize prices. we are seeing those come in. the pboc coming in again. yvonne: crude is interesting. there have been talks the e.u. and i ran are going to start talking again. we are off some of the 2014 highs we saw a few days ago. this is how we are playing out. slightly lower on the csi 300. muted on shanghai composite. it's -- the hang seng lower. we are watching the pboc injections. about five sessions where we had seen that. we continue to see liq

it will involve the pboc who seem to say they want the private players involved to work this out?we would guess that right now, the decision-making is not entirely in the chairman's hand anyway. the payment of this coupon, i would assume doesn't involve the government in order for the pboc to maintain stability over the financial system. that much is clear to the market. it is up to anybody's guess at the moment. judging from some other situations this year, it is entirely possible that onshore and offshore negotiations may be handled differently. haidi: are there opportunities created with this idea of a localized or do you think there is a overestimation on how they will recover from this? guest: there has been an overreaction across the market that the locations are there for people to pick and choose through and see who the survivors are. that being said, tail risk has risen. default rate is now what we expect to rise as well. i think there have been dislocations that are quite interesting both across double v and select single names. overall, talent risk has risen in the prop

the pboc drains cash.o a 15% corporate tax deal removing another hurdle to an unprecedented report and we speak exclusively to ireland's finance minister. happy friday, happy friday to you, tom. i love how sebastian at nordion put it, there is a fog. tom: a fog of uncertainty. it has been a choppy week. you are seeing some divergence among the indexes. the ftse is holding on to some marginal gains. the new bank of england economist warning inflation will be sticking around for a little longer. in terms of what is happening broadly, losing 0.3%. the energy market, the market price is back firmly in focus. gas prices up again after falling yesterday on the back of the comments from the russian president. speaking in moscow. in terms of the dax, losing 0.2%. progress on the political talks with olaf scholz. we will see what materializes from that. the cac 40 down 0.2 percent. we are holding on for those nonfarm payrolls. the consensus opinion is about 500,000. many saying we would have to see well below 200,0

guy: one central bank may not big becoming more -- may not be becoming more hawkish, that is the pbocthere's a lot of talk of the pboc may be getting ready to slash rates. 50 basis point is talked about quite a lot. if we were to see china taking remedial action on the monetary front, how would that affect the european outlook? sebastian: it is a great question. the first and petition is a stronger dollar because if the fed is tightening, the pboc's cutting rates, and i think they will have to. they will have to cut the prime rate and cut the reserve requirement ratio. send leave got one central bank hiking, the other one easing. ember, the renminbi recently strengthened against the dollar, so we are position for a stronger dollar with some headwind for commodity prices. it is also a headwind for u.s. focused defensive sectors like pharma, and because we think the dollar will strengthen part because of the pboc police response, you basically have to be position for more dollar strength. alix: what happens with the u.k.? you talk about hawkish versus dovish central bank's. that brings

dani: is it slowing enough to expect some easier policy to come from the pboc?in my opinion they should do something. and they have to put some liquidity into the market. but that's far from enough to boost the economy and to boost activities in china so in this case, i think what i can expect is that some marginal support from pbco from china in the coming months. but worldwide, we'll continue to see a slowdown in the foreseeable future. so my opinion is that, you know, we're going see some kind of support next year if that can be done but in general just kind of support where this feels very, very limited because china continued to its financial leverage particularly in the debt and the property market. manus: can you build on that? what kind of marginal support? will it be a triple r card as significant as a rate cut? and i ask you that because the property sector sh rank by 1.6% in the last quarter. that's the first time since the pandemic. and we haven't seen this sector contract since 1992. but might just take a little bit more than a triple r cut. will it

pboc pulls back support, draining cash from the banking system.the fog of uncertainty be lifted in this market? that is a question -- the jobs number could help the equity rally, but what we need for it is stronger footing, and the sense inflation is getting under control. and indication supply chain pressures are easing. we need more time. does not seem like it will be fixed anytime soon, hence the volatility in these markets. let's get a quick check. msci asia-pacific open in terms of china's market being open after a weeklong holiday. that is supporting the sentiment. the asia pacific index up 0.4%. in the past 30 minutes, s&p futures into the red, but a sickly flat. -- but basically flat. crude nearing $80 a barrel in new york trading. that is contributing to the inflation worry. investors will be closely watching that jobs report to assess whether an abrupt decline in hiring in august was a blip or something with staying power. joining us is sarah hewin, managing director, standard chartered bank, the september report seems to be a lot of hyp

you have had the pboc governors saying they can contain this.o we stand on all things evergrande? >> i have held that i don't see a wider contagion to all macro markets. it has never been a question of whether china can step in. it is whether they want to. recently they have said we will step in. they have encouraged banks to help the property sector recently. previously they stopped evergrande from their construction. they stopped them from their bond payments so they can meet other constructions. realistically you see a scenario where the pboc and china are in charge of the property market. they have said now is the time to face this and that is what we are seeing. a lot of my colleagues would argue otherwise. evergrande is a big story, i just don't see a scenario where the pboc stands by unless the financial status of their country crumble. >> i also feel like we can't let you go without asking about bitcoin's hotly anticipated futures etf launching today, the first of a few to come. it might attract more inflows to the triple qs, of course a

>> we have not seen any communication from the pboc expressing discomfort.a strong trade surplus is playing an important role. the central bank want a two way market and do not want to see expectations only go in one direction. if we saw expectation shift in just one direction and it appreciates much faster, i think the pboc would communicate with the market and corrects the expectation. on the trade front, there is some expectation or assumption of being a given, which would be positive. so near term, the trade flow picture has not changed. haidi: let's get over to rosalind chin in hong kong for the headlines. >> china has released their official road mark four their net zero emissions goal. new plans for sectors including oil refining. bidens pledge to provide southeast asia with funding to fight the pandemic and tackle the climate crisis. he made the announcement and spoke with both sides of the region. it is the first time since 2017 that a united states has taken talks for that meeting. >> these are seven very influential people that should not be spend

garfield: one might be the pboc. in the china press, there was speculation going into the break that we would see a cut. we might get one tomorrow. we might get further moves on that, especially as we are getting close to these crucial credit numbers, which have been disappointing for china recently. you want to see either china signaling that the economy is not as bad as people had feared, or that, if the economy is sagging, that the authorities are going to act to help the economy and help assets, both by providing some monetary support. from the political side of things, providing a bit of peace and quiet. the best thing we could get tomorrow would be asian stocks, little changed as china has a calm return before payrolls in the u.s. david: that is right, there is that jobs report. i forgot about that. [laughter] adp was yesterday. garfield reynolds. let's talk about energy. the energy crisis in europe. when you look at prices, brent, natural gas is front and center. is that easing? what is the latest? andrew: as

at least as far as today is concerned, things like copper up 8%, and we are talking about the pboc reopening, as i just mentioned. yvonne: you mentioned copper. palm oil futures, those are just glaring at the moment, given the energy crunch we are seeing, but also when it comes to the weather, bad weather is harming cotton. you take a look at the benchmarks, and it looks like pretty good reopening. we are of more than 1%. it is energy, it is tech leading the gains. also when it comes to the energy index, jumping from 3% at the get go. you take a look at some of these names, these are some of the big winners for the day today. david: frankly, it is a simple question. if you cannot borrow money -- borrowing costs, we have been waiting for this because the mainland market has been closed. there is still no sons despite a miss, still no consistent sign of funding stress on the mainland, other you look at the seven-day average, you look at funding costs within the banking system and china here. yvonne: you've got to wonder. i'm just wondering, next week, we have about a trillion renminbi as well

earlier, the central bank governor said the pboc will continue taking steps to curb monopolistic paper among platform companies. essentially what they are saying , it's not surprising where he was saying it, he is essentially backing up what the big bosses in beijing have been saying all along that the regulatory crackdown on monopolistic behavior is not necessarily over. you would think that could cast a shadow over the rally. we saw in new york, the golden dragon index surged by more than 5%. alibaba was up 8%. a big rally on top of what we saw here in hong kong yesterday. a big rally in tech stocks and hang seng. hong kong did have a big rally yesterday. we will have to see. shery: that was a preview of what we can expect at an exciting open and china. let's get to first word headlines. >> the u.s. central intelligence agency is creating a dedicated china mission center. it is aimed at tackling what was called the most important geopolitical fight of the 21st century. an adversarial chinese government. centers are standalone entities utilizing resources from across the agency. work

i don't see any contagion, even if there may be a pboc cut, for example, to help. do you think that is? should there be a bigger reaction of contagion? freya: there was a lot of reaction initially, and it all seems to have died down to the stagflation story. i think that is natural anyway because i think rockets are still putting a lot of faith in the china policy put, but i think that faith is misplaced because the chinese policy put was actually before covid, but the evidence of that had been completely knocked out by the severity of the covid cycle. now we have a situation where china has actually been tightening since may of last year. credit growth has slowed very dramatically over the course of this year. that is an indicator that the chinese economy is slowing very rapidly at the moment. it is an indicator that global growth is probably already slowing. the point now is that markets are probably relying on this put coming through, and about halfway through next year, we are going to realize that money from credit growth aggregates are not picking up, and fur

>> the pboc has its eye on the macroeconomic picture, inflation., cpi inflation. i do not think that is the time for macroeconomic policy measures. that does not mean other policies aren't helpful. we would have to look into detail. kathleen: another big risk is supply chain disruptions. they are being made worse it seems by the power cringe and china. factory shutdowns reduce supply, the costs rise for transporting goods, ports, docs, ships. when will this end? do you think we will see it by the end of this year or will it last longer? >> we think this is a transitional issue. there is the question of imports. also the question of long-standing policies to limit energy consumption growth and intensity. it came together in a perfect storm, not sure they find a way to ease the pressure points. kathleen: a chinese policymaker is easing curbs on property, on power that helped contribute to some disruptive forces. do you think they will continue to ease up on more restrictive policies to make sure they can sustain momentum? >> we have different questio

i think a lot of pressure on the pboc right now to start taking action. will be interesting to see how we see the chinese government may be suppressing some of their recent shifts and regulatory onslaught we have seen for a number of different industries. thank you very much. let's talk about d.c., democrats in washington continue debating president biden's multitrillion dollar economic plan. the senate majority leader, chuck schumer, getting an end of the month deadline to get this done. the question around what is happening with u.s. sustainability and environmental policy with the president going to glasgow. our washington correspondent joins us with the latest. >> the start of a new week, and the house and senate are coming back this week, so there will be a lot of debate regarding this reconciliation package. one of those key themes is the climate aspect of the reconciliation package, north of $100 billion supposed to be used to set up this clean electricity grid. the idea was to give money for utilities to switch from oil, gas, and cold to things li

>> we have the pboc governor talking about it being containable. in the last couple of days, the vice premier said it is containable. we have had the deputy governor of the pboc say it is containable and now we have a senior official of the banking and insurance regulator say or dismiss the the fact that the crisis will have any impact and he said every evergrande is an individual case. and he has reiterated that the property curves in place since 2021, will stay. >> stephen engle there. asian stocks are looking for a mixed starch. traders waiting for the looming payment for evergrande as well as the latest earnings. let's break in -- let's bring in garfield reynolds. is this going to lift asian equities? >> unfortunately, for asian equities, the aftermarket earnings that came out, snap chat in particular, were not great. and you can see this morning that nasdaq futures in particular dropped as much as 0.7%, now down 0.5%. what goes along with that especially for the asian session is the concerns driving that. i was surprised when i came in to look

senior pbo fist -- pboc official said workers are engaged in illegal financial activity. we are seeing the downside pressure right there. double digit losses for those two companies. the bond markets are stealing the show because we are talking about the treasury yield curve inverting for the first time at the long and the 20 year yield topping the 30 year yield. we are seeing broad moves and -- and government bonds locally. now, this move in the treasury market for the first time since the government reintroduced the two decade maturity last year. haidi: the bond market revolve in this part of the world continues. backed into a corner by what traders are betting on as a more aggressive regime of tightening. this is what we are seeing when it comes to the 10-year this morning. this after we saw u.s. treasuries sold overnight. we are getting this situation where the lack of intervention over the last two days has seen the april 2024 note doubling the rate target. shery: investors are watching closely what's happening on the fiscal side around the world. in the u.s., we are

we are talking a little bit more about the pboc in the last hour. second day of drainage when it comes to liquidity. this time 190 billion. this week is going to be pretty busy to watch for any kinds of backdrop on evergrande story of the property sector. i think it was up to one trillion that is due that are maturing this week. in goldman sachs just spoke and said we need policy support. david: let's put everything together because inflation is still in focus. you heard from the bank of england over the weekend. let's take a closer look at what's coming up this week, you have the economy and see the u.s. and china coming out with various measures of price rises. let's bring in kathleen hays, our global economic and policy editor with the week to come. let's start with the u.s. and the fed and inflation coming through. kathleen: we know everyone is asking what inflation is doing, will they announced the taper after the jobs report? the chart is still rising. year-over-year expected september, 5.3%. look how quickly that has surged on the bottom line

haidi: there is one central bank that is probably more cautious now, and that is the pboc, as they grappleith the risks of the property sector. to that end, we are getting some movement when it comes to negotiations between key bondholders and evergrande. they are to get together and have what has been called to us low stakes dialogues. it is quite interesting that we are seeing bondholders starting to take the first step in negotiations potentially. shery: let's get more of the top issues with investors as asia trading gets under way with markets editor kriti gupta, bloomberg economic -- global economics editor kathleen hays. kathleen: inflation concerns are right. it starts about how much these companies can absorb. it seems like they are responding to something you see in the properties market. earnings are strong, earnings are coming in hot, absorbing the costs, so it is not just a tech coming out on top. nasdaq hitting an intraday record all-time high and then retreating. once again, it will come down to inflation, and those other concepts you are hearing from the likes of mcdonald's,

you are getting news earlier, pre-much in our back, the pboc will match that mlf to half a trillion.haad: let's check in on japan. we have a story and half of this is being held by a weak yen them. we will turn attention to tourism hot this halloween, xfinity rewards is offering up some spooky-good perks. like the chance to win a universal parks & resorts trip to hollywood or orlando to attend halloween horror nights. or xfinity rewards members, get the inside scoop on halloween kills. just say "watch with" into your voice remote for an exclusive live stream with jamie lee curtis. a q&a with me! join for free on the xfinity app. our thanks your rewards. 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? >> it is 10: 29 a.m. in hong kong and shanghai, 10:29 p.m.

ben: the main focus has been that the pboc is good by injecting liquidity at the right moment.t was true liquidity on friday but pushed more on saturday. they are doing more of the tactical liquidity operations. so that seems to be looking at the markets that would be priced in from the situation. he cannot ignore because with the property sector being 36 percent, china gdp has people downgrading china gdp. so i think that's the key from here. if the macro outlook does vary, then it becomes a big issue. haidi: right. always great to have you with us. the managing director of global macro strategy. a quick reminder, don't miss our exclusive interview with hong kong's chief executive. we do have much more ahead. this is bloomberg. ♪ shery: you're watching daybreak australia as sydney reopens after more than 100 days under covid lockdown. hong kong's covid zero policy will be a big focus in our conversation with the chief executive, carrie lam, and a couple of hours time. plenty more ahead, this is bloomberg. ♪ it's moving day. and while her friends are doing the heavy lifting, je

bloomberg economics saying that the pboc has room to maneuver.et's look at how it has flowed through. there's a beautiful chart on the gtv. let's have a look at how it flowed through the markets. we have seen weakness coming through in china's equity market. elsewhere, growth straw -- stocks pushing higher. the nikkei doing very well in supporting asian equities. it's just about this reopening theme as well. monetary authority in singapore tightening. they are worried about inflation. have a look at the indonesian yeah. bali is reopening to tourists including the uae. dani: thanks so much. juliette with all the charts, whether she wants them or not. let's stick with that u.s. picture. u.s. inflation coming in harder than expected, underscoring the perspective of price pressures. a tapering of bond purchases from mid-november. let's bring in our bloomberg opinion columnist. i know you m&s might have a difference of opinion but i won't wait into that water. is transitory still the best way to describe inflation, given what we saw in the cpi data ye

is that still the case if we don't get a triple are cut from the pboc?lex: that is still the case. i think half of it in half of that call rests on a positive view of the renminbi. the fact that we see it stable because of strong trade fundamentals, as well as given the outlook on roads. we largely see more liquidity, potentially rate cuts and rates trending down. it's still possible. rishaad: head of asia investment strategy. he also said it's not the first time that china has been to the financial rodeo. if you are in canada you could go to the rodeo in the u.s. if you are vaccinated. yvonne: opening the canadian and mexican borders were vaccinated travelers. that is starting as early as next month. some more reopening news they're out of the u.s.. -- u.s. this is bloomberg. ♪ rishaad: welcome back to bloomberg markets. we are still waiting for the status on chinese trade to come through. looking for a trade balance number, imports/exports. but at the moment we just have -- there we go, china's exports at 20%. that's one thing we are getting. that's ou

all big decisions do and we will hear from the governors of the pboc and pierre j.loomberg intelligence predicts no change until november. the rbis will hoping inflation is more than temporary. that is the week ahead. shery: our next guest says the current levels of high prices should not be a big surprise to most investors. let's discuss more with the director of research at epf far. great to have you with us. how have markets hedged for what we may see as stickier prices and for longer? cameron: our view is shaped by following mutual fund flows. what we have seen his since the second quarter of last year, relentless inflows into inflation protected bond funds, which is where my assertion the current inflation situation, while highly unwelcome, is not a huge surprise to a large segment of the investment public. the knock on effect or issue at the moment is the investing universe seems no more ready to accept the medicine than they were in 2013, 2014. shery: those inflation pressures being exacerbated by higher energy prices as well. this function on the bloomberg s

the pboc does not seem ready to ease monetary policy, and there is a healthy trade surplus.rities appear comfortable allowing the index to drift higher, which would provide room for short-term bond appreciation. haidi: and a call from goldman sachs on south korea, saying that services are expected to benefit the most from next year, however, it is largely contingent on how far social distancing measures will be. while private consumption recovered 4.5% in the third quarter, those levels are still 3% below pre-levels. private consumption will become the main driver of growth next year. let's get a check of the latest business flash headlines. shares in draftkings jumped after it decided not to pursue a 22 billion dollar purchase of another company. sources say the company was unwilling to meet part of npeng's demands. this company is considering selling its 80% stake in a china business. the alibaba act retailer has reached out to gauge prospective buyers' interests. suning needed a bailout in july after its holding company run into financial troubles and struggled with debt

the pboc says everything will be ok. lisa: they have been trying to tell everybody they have the situation under control and encourage banks to lend more when it comes to housing debt. this time they say they are urging developers and shareholders to fulfill that obligation. please play your debt -- please pay your debt. also saying ever grande risk -- the fact they are saying says they are concerned. jonathan: we are headed for a second week of gains. your equity market is positive. tom keene, you've seen it all week. the bloom -- the gloom crew taking one on the chin. tom: the week started on wednesday with the banks earnings. the banks are in business and there minting money. jonathan: we will wrap up bank earnings and about two hours. yields were lower through the week. the back end of the week, a lift. 10 to 1.5458. lisa: the biggest change in the narrative is companies can deal with the supply chain disruptions with the higher input costs because the revenues are turbocharged and the consumer keep spending. we will

does it really matter that alibaba, the pboc, no one can really outplay the chinese government.g said that, on spac, what is the latest going on with spac -- one of my popular companies, they are going on a spac on nasdaq. very very soon. that is going to happen. emily: would you -- have you changed your strategy at all given the china crackdown? are you putting in just as much money as you would have more are you changing where that money goes? edith: i really want to go back to china. because of covid, i've been here for two years. not able to go back makes it really tough for me to invest in china, mostly from from a raise capital strategy is , to focus on early-stage input early support on infrastructure software. right now, the world is so big and everybody is more distributed remotely, so it doesn't matter if they are in china or not. but most of the investment lately has been in silicon valley, we invested in data bricks and ftx. emily: it is interesting you mentioned ftx because they moved their headquarters from hong kong to the bahamas in part because of this crackdown

everything transpiring with these property names, most notably evergrande and the comments from the pbocay saying the spillover effects from the evergrande debt woes are manageable but one question we've been asking on the back of the trading is it what kind policy response we'll see out of beijing as we move into the back half of the year, final few months of the year into 2022 to see how the authorities are going to try to stabilize and stem the weakening growth we've been seeing. >> i want to ask you to go further in terms of what markets or analysts are expecting in terms of a policy response it's interesting the market reaction was pretty resilient, we didn't see a selloff on the back of the weaker chinese growth numbers explain how consensus expects them respond >> we didn't see a big move to the upside with investors pinning their hopes on some kind of sizable stimulus which would have caused -- affect the markets and you would see a strong move to the upside. we didn't see that a really flat performance. but things like triple r cuttings to inject more liquidity into the system,

about evergrande and the real estate market saying that china can contain evergrande's risks also the pboc said that china, the economy is still going to grow at about an 8% clip for the year frank? >>u >> ask you, which is a bigger impact, the energy shortage or regulatory crack down from beijing? >> reporter: it's very difficult to say all of it is creating an uncertain environment. some folks i talked to in the factory sector said they're concerned about the power rationing but it is, from their perspective, going to continue but then again they are worried about the supply chain issues. >> we appreciate the very latest. >>> turning our attention on the heels of that news out of china, all the futures down about a third of a percent joining me now to tie this all together is jenny harrington jenny, thanks for being here >> thanks for having me. i'm a little afraid about needing to tie it all together. >> i have a lot of faith in you. we'll kick it off with something you put out in your quarterly letter you're telling people to adjust their lends when it comes to returns this year. i'm a

, how all of this is weighing through into slowdown in the economy and what we can expect from the pbochart, another calling for 50 basis points. dani? dani: thanks so much. now let's turn to another market move, a bloomberg scoop. the sec is allowed the first bitcoin etf's to trade. it would be a watershed moment for the cryptocurrency. let's bring and mark ran field. mrk -- mark cranfield. this is something bitcoin bulls want. what does this mean for the market? mark: well, we already have a large bitcoin etf, as well, but this completes the sweep by having fts on the futures market. you're offering a wide range of contracts, a wide range of bitcoin trading you can do, futures contract which are pretty liquid. there's already one large etf, but now you will have another one based on an increasingly larger futures market, not just bitcoin. we also have futures, as well. so, all of this is going to generate more volume, more interest, also a recognition that institution ore cryptocurrencies have made their place in the wider market space, really a recognition that they're not going to g

shery: let me draw from your experience as a member of the pboc.n concerns about chinese property sector and slowing economy. in your views, what are the biggest risks in the chinese economy that could impact the global economy? >> chinese economic rebound has been very impressive and the central bank policies to deal with the challenges is timely. but compared to some other countries, i would not say china would be faced with more serious issue in terms of inflation and disruptions in certain sectors. china's economic growth slowing down is because of a couple of factors. first, it is due to the enhanced awareness of the climate and environment. so don't look at the number of gdp, look at the quality. solid, high quality growth is more important than looking at the numbers. i think that is very important. secondly, chinese economic base is much longer than what it was 30 years ago. so one percentage point of growth is not the same thing as what it was previously. but chinese growth is also very linked to the rest of the global economy. so i think

that gives the pboc a bit of room.aints of coal price records in china are challenging, but they think china will meet its targets for the rest of the year. the stoxx 600 gaining 0.5% after modest gains yesterday. the s&p 500 snapping three days of losses. technology coming back strongly on the back of yields. currently around 1.55 for u.s. 10 year. the dax gaining 0.5%. olaf scholz says he will be chancellor by the end of the year. cac quarante, up 0.4%. in the u.k., the ftse 100 is getting 0.5%. brexit is back in terms of a dispute between brussels and the u.k. house prices edging up slightly. they have been on a strong run in the u.k. and in the u.s. let's look at the sectors. a sick resources getting a boost on the back of higher prices in terms of oil, brent, wti above $80. brent closing in on $84 a barrel. technology had a strong day yesterday. slightly softer yields in terms of u.s. treasuries. at the bottom of the list, health care and utilities, which is flat. anna: let's get back to the u.s. bank earnings sea

realistically, any move or signal from the pboc to cut rates is a good thing for equities.uch. across europe we see gains, 0.3%. stay with us. "surveillance: early edition" is next. this is bloomberg. ♪ >> that is the only mandate, price stability and employment. right now we do not have price stability. >> above all else we must defend to the hilt our economic interest. >> we do not want to be dependent on the supplies, that is the key point. >> this is "bloomberg surveillance: early edition" with francine lacqua. francine: good morning. welcome to "bloomberg surveillance: early edition."

trade after a senior pboc official questioned the legitimacy of online brokers amid beijing's continuingwn on private enterprise. online brokers have no licenses to operate in china. the brokers were not named. facebook has changed its name to meta as it pivots toward virtual reality. mark zuckerberg says the company wants to be meta-verse first not facebook first calling the virtual environment the next frontier. the rebrand also diverts attention away from the social network which has been tarnished by whistleblower allegations. it will begin trading under a new ticker from december 1. >> we are tracking japanese stocks after we had caterpillar earnings. the equipment maker while seeing strong third-quarter response, also saw supply chain snags. we did see machinery stocks climbing in the u.s. session thursday on the back of that print. also watching apple suppliers in asia. tim cook saying supply chains are expected to worsen this quarter. coming up in the next hour of "daybreak asia, the outlook for chinese banks. we hear from the head of china research, plus mizuho bank seeing a bon

the cpi, i think the pboc says there is not much we can do.her question is what this means for the health of the economy. for growth, the jobs. these are the things that can crimp output and make it harder for producers to get what they need, afford to produce it, and keep the price low enough to sell it. haidi: china is aimed to still drive exports inflation around the world. kathleen: certainly for the u.s., still so dependent on exports from china. as you mentioned, christmas time is coming, holiday shopping. people go to the store to buy things that come from china, they're probably going to see prices moving higher. uscp i and china. guide is the -- u.s. i and china ppi is the relationship. many countries depend on imports from china. when it comes to the cpi in most advanced, economies,, the inputs are not the biggest part. at the same time, when there are so many shortages, the supply constraints, i think it probably has a bigger impact on the pass-through to retail prices. that is going to be watched very closely area. haidi: kathleen

a very thin interface between, for example, the domestic trade ministry and international wto, the pboc and the imf and so on and so forth. that doesn't mean that we shouldn't protect our own interests in the united states. so i think that it is not realistic to expect china to move farther toward a rule of law. i think that the united states made a lot of players in the united states made the mistake of thinking that xi jinping when he took over his party role in 2012 was going to continue the reforms of the past. and that's turned out to be very much not the case. it doesn't mean that we shouldn't protect our own interests. and i think that the way we do that is through a lot of the financial measures that the congressman mentioned. i think that the pcop bill, the sherman bill law there is very important. i think it needs to be tightened. and i think ultimately auditors need to be paid by some central fund rather than by the companies, so that they stop seeing their interest with the companies. i think that the fdr bill is a good idea. many measures particularly the congressman mentio

i so reports that the pboc has told banks it will increase their lending to the property sector.fficial announcement and we don't exactly know how much cash they are talking about. basically, instead of doing a front door bailout, they can do a backdoor sort of mitigation of the pain of the property sector. that is what they are looking at. they can step in if things get really bad. shery: always great having your insights. thank you. coming up. do not miss our exclusive interview with carrie lam. we will discuss how property is important part of the common asperity and what that means for the city. this is bloomberg. ♪ shery: vietnam is facing an exodus of factory workers that could worsen global supply chain concerns as they grapple with the covid outbreak. joining us now for the latest is our vietnam chief. what is happening on the ground and how could this impact global brands and the holiday shopping season? reporter: good morning from vietnam. last year, they could handle the pandemic fairly well. this year with the delta variant , it is hit hard. the government in the sout

we have started to see those efforts being stepped up, including injection by the pboc.k the contagion fears from evergrande are probably overblown. how this affects foreign investors, foreign bondholders, specific to the companies, we will see how that resolves. and the rest of the market, we continue to see investors being reasonably ok with bonds. if you look at the largest amount of foreign investment in chinese fixed income markets, it is mostly in government bonds. that part i don't think has been affected. haidi: great to have you with us. mixo das, equity strategist at j.p. morgan. incoming japanese prime minister is ricci revamping key positions as he looks ahead to a general election in a months time. let's get the latest from our policy reporter. based on his reported cabinet pick, what do we expect in terms of fresh faces, some change in the incoming administration? >> right. what is being announced today is the party positions were announced last week. from what we see on the cabinet so far, there are a lot of new faces. we are seeing 13 out of the 20 people