for the latest on the ever grand saga, chief north asia correspondent, stephen engle. one more day, one more headline, what is this about? stephen: a fire sale and what might describe as a dumpster fire for ever grand because they are having a severe crunch of setting off creditors, fending off investors in wealth management products, 70,000 of which were sold to the tune of $6.2 billion. that needs to be paid back and people are getting angry and they are going to beat -- they have offered three options. you can get cash but only 10% of every quarter so it will take 2.5 years to get back at all because the company might collapse. their preferred option according to sources of evergrande, not necessarily those jilted, is selling off unfinished properties at a severe discount. up to 28% for residential properties. 46% for office-based and 52% off for the retail space and parking lots. it is a fire sale but this is a developer with four space unsold -- floor space unsold and halted construction to cover three quarters of all of manhattan. it is a lot of property to sell a

joining us is stephen engle. why does the significance of separating the lending units from ant's other units. -- other units? stephen: ant began with alipay. it was a payment service platform for online shopping and the like. as they grew and became the super app, they started adding wealth management, insurance and lending. they have two lending platforms which actually became the biggest revenue generator for ant pre-ipo, before it was put into a separate entity. the chinese government wants to contain risk to the financial system. these platforms which will now be separated out into its own apps with its own oversight and under regulation that will be bank regulated because ant does not have to have those 30% capital bumpers. they were not regulated like a bank. they basically passed a lot of the loads to the consumers across china to the state banks which underwrote and securitized those loans. ant did not necessarily take on that risk. the chinese government wants to contain those risks. according to this ft

for the latest let's bring in stephen engle in hong kong. stephen: this is a classic case of market conditions were not right for secondary listing. it is listed here in hong kong. the stock is down 93% year to date. it has been obliterated by indebtedness and bloomberg news reported that the electric vehicle unit of evergrande has been having trouble paying staff and suppliers. they put out a statement saying due to careful consideration they have decided not to go forward with this proposed star board listing. they cited as well on the statement friday saying a serious shortage of funds at the parent as evidence by what we saw last week with the coupon payment. granted they have a 30 day grace period to pay $84 million u.s., but they missed it. the parent has another bond payment coming up wednesday for another $45 billion u.s. and no real-world coming from the company on whether they intend to pay. new energy vehicle units, just a year ago this was a health services company. they switched into eeev and have not even delivered a single mass

stephen engle's is there. time as we see these regulatory changes in the sector in china. stephen: absolutely. the next hour will show a lot of things. we will speak exclusively with the hong kong exchange ceo. he will be talking about a lot of different things. he wants to talk about biotech, no doubt. the hong kong exchange launched their pre-revenue chapter scheme to attract chinese biotech, global biotech to come here. there was a big rush of ipo's. of course, now the market has been down over the last month and a half. because of all these regulatory concerns. we will ask him how that might be affecting the pipeline of new listings, in particular in the biotech space. of course, the other geopolitical concerns that might affect the exchange include the anti-sections law which has been put on hold by lawmakers in china. it looms very large for this city here. of course, what is the overall pipeline given for this regulatory uncertainty in china? that's coming up in the next half hour or thereabouts. our exc

stephen engle is in hong kong. lots of details on what is being planned. ephen: we are listening to his speeches and what he is telegraphing a lot closer these days because just about everything that has transpired on the regulatory front over the last 10 months, he forecasted or hinted to in speeches. we have to look at the speech he gave last night and read between the lines and see what he is saying. the speech was long on somatic's in short on specifics. that is common with chinese leaders. what stood out were some of these pledges to gradually further open up services sector to foreign investment and also drive programs. the one that really stood out was this new board that they were going to launch in beijing. that will essentially drive innovation, particularly in services. let's hear from the president. >> we will continue to support the innovation driven development of small and medium-size enterprises by deepening the reform. and setting up the beijing stock exchange as the primary platform for renovation. stephen: don't they already have the star

let's bring our chief north asia correspondent stephen engle in hong kong. steve, is this an extension of the frustration we have seen from president biden when it comes to that not even a phone call on friday? reporter: it could be. as brian pointed out, the administration has a different tone when it comes to china but the frustration is still there. obviously as we heard that joe biden expressed some of the frustration on the phone call with xi jinping last friday. for his part, xi jinping also saying that the policies of the white house, whether trump or biden, have caused serious difficulties in the relationship between china and the u.s. it was the second phone call but there are lots of issues to get through -- to get back to what it was pre-trump administration, if that is even possible. one way is to of course go after china on the subsidies front and we are learning from sources that the bloomberg news scoop that the biden administration is weighing a new investigation. the investigation has not been formally launched according to white house offic

rishaad: stephen engle there, our chief north asia correspondent.e: indonesia reaching a covid-19 milestone, having administered 100 million doses are that will help it he is restrictions further to revive the economy there. malaysia, the government citing the necessity for booster shots to combat the spread of the delta variant, and thailand's are continues debate on censure of the prime minister. david: we were flat today coming off of i think eight straight days of gains here, so we are seeing caution. august has been good. in fact, have a look at this, this outperformance, at least for august in terms of the south index relative to the global equity index. that is the ratio. that means there is a little bit of an outperformance. i'm going to flip this chart around for you to show how far this market has to go to catch southeast asia's yellow. that is the global index, up 15% , still below zero. room to catch up. yvonne: even in the philippines, they broke this whole spell after two years, it seems almost. david: great place, the philippines. ris

let's get straight to stephen engle. our northern asia correspondent. more and more news dripping out of this one. >> they have to talk first to resolve their differences and i guess the white house had not been pleased with the lower level discussions that had taken place so far with john kerry. the climate change star of the white house. -- saar of the white house. difference is more than areas where they could cooperate like on climate change. state media picked up the mantelpiece. they talked about u.s. wrongdoings. china is open to dialogue and pragmatic cooperation with the u.s. but the united states and the white house has to meet china halfway. this was following those virtual talks. what is happening now with invited, they were frustrated by the level of progress on those kind of talk. he wanted to see personal engagement with xi jinping work better. all the deliverables are about the pleasantries. they talked about discussing broad and strategic discussion in areas where their opinions converged and diverged. they discussed everything. this is

let's bring in stephen engle. t is interesting, thinking about how much short-term pain policymakers might be able to take broadly to make these reforms. stephen: there will be short-term pain, but they are trying to avoid long-term pain. analysts are saying the combination of steps and the aftereffect, the domino effect to developers could have a spillover effect. the bank of america, in a note, said the rapid slowdown in the property sector activities could lead to a significant spillover effect. they are talking about the unnecessarily aggressive steps that have been taken. i have been to aging -- beijing for many years and i watched property market closely. there will always be the threat daily of new regulations to come out to curb excessive property price gains. then there would be relaxation. there was this more back and forth. this time it seems different. xi jinping pulling properties into the common prosperity theme, saying multiple times that property is for living and not for speculation. we have seen t

reporter: this is stephen engle and hong kong.re they are creating more billionaires than anywhere else in the world, they are probably watching with great interest. what do you think and what timeframe do we get down to the sweet spot? not everyone has $100 million or billions of dollars to pay for this. i think the next big civilian flight is going to be a $55 million ticket. what is the sweet spot to make this space tourism takeoff? guest: there is a lot of different opinions about where that elasticity is. is it $1000, $10,000, $1 million? where'd you get to the levels where you have a robust customer environment but also down to an affordable level. there is a lot of different theories about that. what i'm interested in is when it becomes affordable for your normal family. i think that's probably 10 or 15 years away, but definitely within our lifetime that we will see normal people so to speak vacationing in space. the axiom flight coming up next year, those tickets are $55 million. to ride on a richard branson flight is diff

stephen engle is at ever run. great to get your insight for this stage. what is the latest? ephen: the latest is bloomberg news has learned ever grand has received a broad-based set of instructions urging them to avoid a near-term dollar bond default on those interest payments that were really due yesterday, and according to bondholders that we have spoken to, they have not received as of this morning their coupon payments, so it really has lent more uncertainty around the future of china ever-growing group and how it can navigate its way through this debt crisis without government intervention. in the set of instructions given to ever grand, there was no indication if the state authorities would step in with support, so it is a game of wait and see right now, to see if ever grand is just going to be using this 30-day grace period that they have, but they have more payments coming up to the tune of 150 million u.s. dollars between now and october 11. they are far from out of the woods, despite some saying that this might be contained. it does not look very contained from my v

stephen engle joins us with more. we know this move is designed to ease inflation so tell us more about the reaction we are seeing in the markets. stephen: obviously, the oil markets went down overnight, and it is really an unprecedented move by china as they are tapping the strategic petroleum reserves which generally are there for times of shortages or times of warfare. but this is clearly a telegraph move by authorities in china that put out a statement that say they are trying to tamp down inflationary pressures and the prices they have been seeing. obviously, like many central banks, authorities in china are very concerned by inflation. what we saw with factory gate inflation, ppi in china, in august, up to a 13 year high of 9.5%, there is growing inflation in china. they are tapping these strategic petroleum reserves, which, you know, china has built up a lot of reserves over the past decade, 220 million barrels estimated. so they are obviously seeing this as a way, given the problems in the gulf with the u.s. oi

rishaad: stephen engle, our chief religion correspondent, -- chief north asian correspondent is with stephen: this market will attract liquidity, which has been a nonexistent. the national equities exchange corporation, which is the current beijing market set up in 2013. very little liquidity and therefore very little volume and very little interest. so you have the big ones in shanghai and shenzhen, you have the star board and other avenues. but when xi jinping speaks, and we have been parsing his words in the last 10 months in particular because of the regulatory crackdown, things start moving very quickly. it will be interesting to see when we get the devil in the details of this new market. but xi jinping was not talking down the equity markets, he was not talking down capitalism, he was talking up the market. rishaad: the optimistic stature emphasized -- stephen: open up a channel for fundraising that the other markets don't have. and of course he wants to transform the economy to be less reliant on debt and on the banks, which oftentimes led to bigger companies. so he is opening

let's get the latest from stephen engle in hong kong. the clock is ticking. cremental development feels like a slow-motion car crash at the moment. is there a way to avert the disaster? stephen: yeah. the difference there, how do you quantify a disaster? ever grand is in discussions for extensions of these loans. it's not looking necessarily very good for the world's most indebted to lever -- deliver. we know that chinese a -- authorities have hired international financial advisors, laying the groundwork for china's largest ever debt restructuring. the bonds are pricing in a possible default. these interest payments that are coming due next week are the latest headache. sources are telling us that the chinese housing ministry authorities have told the major lenders not to expect those interest payments that are due on subject -- september 20. they will miss a principal payment on at least one of their loans due next week. again, a slow-motion car crash yes. things are coming to ahead pretty quickly and escalating this week as the cash crunch is really biting t

emily: that was gogoro ceo with my colleague stephen engle. for this edition of bloomberg technology. tune in tomorrow joining by jason kelly and andre lamarr eight from manhattan venture partners. much much more on the show tomorrow. emily chang from san francisco. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. >> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> the following is a paid presentation furnished by rare collectibles tv, llc. announcer: the morgan silver dollar is without a doubt the most iconic coin in american numi

emily: that was gogoro ceo with my colleague stephen engle. for this edition of bloomberg technology. tune in tomorrow joining by jason kelly and andre lamarr eight from manhattan venture partners. much much more on the show tomorrow. emily chang from san francisco. this is bloomberg. this is bloomberg. ♪ >> welcome to daybreak australia. i'm paul allen in sydney. counting down to the major market open. the top stories this hour. a volatile day on wall street as stocks swing away at friday's triple witching. ever grand looks to, the world's most

stephen engle, thank you.avid: let's continue our political conversation with former australian minister kevin rudd, who says behind beijing crackdown lies president xi jinping's hopes to retain power. he spoke with our editorial director, andrew brown. >> the tech sector has different reputations in china. it is obviously the epicenter of china's on gig economy. but also the epicenter of what is called in china, 996, where you work nine hours a day -- work 12 hours a day, from 9:00 to 9:00, six days a week. 996. frankly, that delivers me a lousy life. i don't have secure income. the guys at the top are making all the money. i work like a dog. i cannot have a decent life, get married, have kids. what xi jinping is doing to re- secure his appointment long-term is creating a whole new constituency, a populist constituency in the wider chinese community, saying, "i am on your side and i want to redistribute some of that wealth to you." can he deliver? open question. i think his vulnerability going into the 20 par

let's bring out stephen engle in hong kong. what is happening the process? we know so much of the decision and policymaking from beijing is dedicated to maintaining social calm. stephen: absolutely, the government in china puts a huge premium on social stability, and small-scale protests like what we have seen with evergrande are not unheard of in china, but when you're talking about the issue of social stability at a time when xi jinping isn't talking about common prosperity, kind of emboldening the retail, smaller retail investors. when these protests start snowballing, that is a huge concern of authorities. we have various protests breaking out the last few days over various issues of the evergrande empire, obviously in the quiddity crisis and faces a possible debt restructuring, default. could there be government intervention? that is the big question. you are seeing footage here of the shenzhen headquarters of evergrande late monday after dozens gathered to demand repayment on overdue wealth management products. the protests reportedly numbered in the hu

let's bring in stephen engle, in hong kong. dramatic morning, why are things coming to ahead so acutely? stephen: it really is a confluence of many different things. there is nothing new per se on the evergrande story. we knew they had their bank loan interest payment today and we knew they would not make the payment because the government told the state bank that would not happen. we don't know what is going to happen with the dollar bond and onshore bonds that have the coupon payments due more than $100 million worth of this thursday. that's where that is coming to ahead. monday and tuesday this week our holidays in china and we have not heard necessarily from the government, because there is hope in the market if you want to use that word, i don't like that word, there is some speculation the government of china does not want their lehman brothers moment, they will have those implicit guarantees to have a softened blow to what is happening in the credit markets with evergrande. now there is a lot of selling going on in hong

for the stories, let's bring in stephen engle. let's start with online gaming. what happened? one likes to be summoned by regulators, especially in this sensitive time of regulation crackdown. we saw in november, alibaba was summoned as well as those other 30 plus tax companies this year. summoned and -- we don't have the details, but probably a ton lashing and marching orders to rectify certain behaviors. they gaming companies have been under regulatory pressure to crack down or limit potential addiction and obsession by minors and they have limited gaming time to three hours a week on fridays, saturdays and sundays as part of a widespread crackdown. what we know from this news agency, gaming companies were summoned and regulators say there is a need to strictly regulate game promotion, celebrity endorsements and live broadcasts to avoid minors from gaming obsession. -- reporting tencent has put out a statement, or commented saying they will fully comply with these regulations. growth in gaming revenue at tencent was the lowest in a couple of years. they are doing self-monito

kathleen: thank you so much, stephen engle. you can get more context and analysis on china's crackdown, particularly tech giants, on red lines china and big tech online at the bloomberg technology channel on youtube. hsbc says it is committed to navigating the complexities of operating in china. in its first broadcast interview, the ceo told bloomberg the bank is expanding hiring in the region. he spoke exclusively with bloomberg. >> we have been around for 156 years. we have faced political tensions in that 156 year history. let's be honest, if you want to be an international bank serving the world, serving 60 markets, at times it can be difficult. i'm not going to deny that. but our clients tell us they still want two locally, whether consumers want them to invest elsewhere in the world their savings, or businesses wanting to trade with the world. the demand we have seen, even in a crisis like the one we have just faced, the demand from our customers to serve them globally still exists. >> asking to choose between -- >> no. w

for more, let's bring in stephen engle.re than just calling us a vulgar moment for china. >> ever grand is -- but you have seen the domino effect that goes back to xi jinping's common prosperity theme. he has attacked property prices as homes being for living and not speculation. we have seen prices and rent come down, regulatory action of recent days against mortgage approvals and land prices against home rent and there has been a resurgence of nationwide property tax. all of this causing a significant liquidity squeeze on these developers that hire -- are already having trouble with creditors. billions in liabilities, other developers facing the real possibility of default. defaults were rising to $6.2 billion of high-yield debt defaulted through august. that is about $1.3 billion more than the previous 12 years combined. yesterday's news added more pressure on the sector. when moody's downgraded ever grand to see-a, which implies it is on the verge of impending default. goldman also cut shares. this stock has lost 76%, r

for the latest on the saw that let's bring in stephen engle. what is the latest?d default looms or a potential restructuring involving local governments and the creditors, that also potentially looms. we have the political a potato, a flashpoint is these wealth management products sold to individual investors as well as employees, and a lot of that is coming to, and they are unable to pay, so what has happened is evergrande has come up with three different options. one of the most sensitive ones and probably the most preferred by evergrande is to in lieu of cash basically sell inc. completed flats and apartments and parking lots and retail space and office space at a huge discount. they're hoping these wealth management products holders will take them up on this offer. 20% discount for residential units, 46% for office space, 52% for stores and parking lots according to sources close to negotiations, or you could potentially take cash, 10% for each quarter for the next 2.5 years or so. i love this statistic, evergrande has uncompleted flats accounting for about 3/

paul: stephen engle with anker ceo steven yang. a quick check of the latest business flash headlines. saudi aramco -- the fuel becomes increasingly crucial to growing its chemicals business. sources say aramco will create two new divisions. state run energy firm has been developing its gas field and is said to consider opening up a $110 billion project to fund investors. ford is quitting and shutting factories taking a 2 billion-dollar restructuring charge as manufacturing of vehicles will stop immediately. 4000 employees will be affected. plants will shut next year. the ceo said he will no longer for capital into marginal markets that provide little or no return. bloomberg has been told apple has appointed one of its top executives to oversee the car project after the previous leader left for ford. and adobe veteran joined apple to run the software group for the company's smartwatch. sources say he will replace dunfield as a manager in charge -- dou field as the manager in charge. -- battling with roku and google. amazon will offe

stephen engle for us in hong kong.coming out, we also hear exclusively from the chief executive on the global energy crunch, coming up shortly. he says it could last actually well into the winter. this is bloomberg. ♪ francine: welcome back to the open, everyone. we are seeing a bit of a left off when it comes to equities across the board. this comes after yesterday, we saw a huge selloff in the u.s. and we worry about technology stocks. inflation expectations on treasuries. tom: a more than 2% selloff in terms of the nasdaq. not concern about valuations. on the back of the equities selloff, it spread into the asian session paid the pboc injected additional liquidity. red on the screen for mainland markets and continued concern about the property sector reflected in the stocks in hong kong. the msci asia pacific, as you can see, down more than 1%. it is worth pointing out the futures here in europe and the u.s. pointing to the upside. joining us now is barclays head of european equity strategy. thank you for joining us

let's bring in chief north asia correspondent stephen engle, at the evergrande center in hong kong. n is, will chinese central authorities in beijing allow evergrande to fail? it has 300 million dollars in liabilities. it is having financial troubles. but beijing thinks it can navigate a soft landing. if it can't navigate he stop lending, if there is a hard landing, the question is, how far-reaching will the contagion be? sources are telling bloomberg news that financial regulators in beijing evergrande have met with evergrande --in beijing have met with evergrande executives and given them a list of things that would like to see. on top of the list, no short-term order-term default on their dollar bond. the coupon was supposed to be due yesterday. there are more bond coupons that are due in coming months, to the tune of $194 million u.s. by october 11. the sources say there was no indication in that statement to evergrande that beijing at this time is willing to offer financial support to appease bondholders. a person familiar with regulators says the company is urged to communicate

let's bring in stephen engle. a key ally cashing in his chips. stephen: another sign of the deepening troubles at china evergreen. the bondholders do not pay their coupon last week, and tomorrow there will be another due. the woes are mounting for china evergrande. when you had your poker buddy, the china estate holdings billionaire founder, it has been backing ever grand -- evergrande. they played poker together, along with henry chung and others. they had the gentlemen's agreement that they would back them up. this stock has obviously tanked, and this is accompanied -- a company that is paring back stake. the latest filing saying the state has been reduced further to 4.7%, and the founder of chinese estates, the ceo, she apparently has also cashed in her entire personal holdings in evergrande. not a good sign. there was some good news, there were reports yesterday, part of the reason why the stock was up, reports that perhaps the life insurance unit could fetch upwards of $600 million if it was sold, but key assets have not been able to be sold.

let's bring in chief north asia correspondent stephen engle in hong kong. this is largely centered around these wealth management products that were sold as part of supply contracts and apartment purchase contracts, right? stephen: a small-scale protest for wealth management products like this, whether it was a ponzi scheme tied to peer lending, these are not uncommon in china. but because the government put such a high premium on social stability, and there is this added emphasis and attention to a common prosperity and protecting the rights of retail investors, the government is clearly taking notice of this at a time when, of course, bondholders are sweating it out right now over evergrande, the world's most indebted developer with more than 300 dollars in liabilities. now they are seeing protests -- with more than $300 billion in liabilities. now they are seeing protests. dozens gathered to demand repayment on overdue wealth management products. a media company is reporting that that number had swelled into the hundreds over the weekend on sunday in part

stephen engle is with us having a look at japan.ink japan wishes they had an inflation problem. rishaad: it was quite a shock. people are throwing their ads in the ring, and many people are really throwing their hats in the ring? >> and are they all simply continuity candidates, or is now the time to rip off the security blanket and it does do something radical? shinzo abe is proposing something radical. she has thrown his support for his former minister, a female, but very low support infections and general public. it is going to come down to a race of five. you see two women. they have never had a female prime minister. kono according to the latest service of public opinion -- ishiga has the most popularity among the public but not popular within the popularity of himself. komo is the shoo-in and also very popular in the general public. he has more twitter feed connections. rishaad: followers. >> more followers than all of the others combined. fukishida was the first one to raise his hand and say i want to be prime minister, but h

our correspondent, stephen engle, is here. stephen: rish talking about the stakeholder who sold 27.4 million shares at downright bargain prices, but again, it shows a lack of confidence. this second large block sale is not a good sign. rishaad: the ceo, founder, owns 70% of the company, so the onus is on him, isn't it? stephen: yes, we have this key bank loan interest due monday, and also the dollar bond interest due on thursday. the housing authority has already warned big state banks, don't expect that interest payment on monday. again, this is the bond possible default and possible debt restructuring that might be going on behind the scenes right now, but we also have this problem with the wealth management investors who want their money back. i mean, 70,000 different wealth management products were sold, and evergrande is offering different options, including a staggered cash repayment, but there preferred offering is property. 40 billion yuan is now due, so that's a lot of properties, but they do have a lot of unfinished p

chief north asian correspondent stephen engle takes a look at the praise and what it means for the chineseeaking chinese] >> we will make notable progress toward well-rounded prosperity for all. stephen: common prosperity is the new buzz phrase in beijing. many changes rolled up by the communist party of late could be lumped in under common prosperity, including regulatory crackdowns that have upended markets. the phrase has been around since mao zedong to reflect pursuit of inegalitarian society, but it fell out of use during the 1980's when the directive shifted to make it ok for some people to get rich first. common prosperity could come later. but as china grew rich, the wealth gap widened significantly. china's richest 20% now earned more than 10 times the poorest 20%. ahead of its 100th birthday in july, the communist party glared it had at last created a moderately prosperous society. that opened the door for xi to pursue common prosperity as a guiding principle using philosophy, markets and philanthropy to address income discrepancies. few sectors where the government sees inequali

let's bring in stephen engle. let's start with online gaming, it would there? sign when you were summoned by the regulators, and that is what happened with these gaming companies, including tencent and others. we have some of the details on state media what they were told to do. i am sure it was marching orders on how to rectify areas of the best is the government does not like. we are curing agencies, and i am talking about the publicity department of the central committee, i main body in the government and also the national press and publication administration, they have told these gaming companies they must enforce new regulations that came down in the less company the -- last couple of weeks which limited games to three hours a week and other areas of gaming they want cleaned up. they also must and their focus on profit -- end their focus on profit to prevent addiction by minors. let's also avoid obscene and unhealthy tendencies says -- such as money worshiping and effeminacy. haidi: i like to think about -- a lot to think about. the stock price, investors

shery: stephen engle with the latest. we are already seeing the clock ticking down as well on the congressional vote to raise the u.s. debt ceiling. janet yellen has renewed her calls for action. kathleen hays is here with the latest. janet yellen warning of dire consequences if the debt ceiling is not raised. kathleen: you cannot just stop paying your bills and not expect markets around the world to react. let's take a look at what janet yellen said today in an op-ed in the wall street journal. she notes u.s. government has always paid its bill but the consensus on both sides of the aisle is failing to raise the debt limit would produce widespread economic catastrophe. here is the doomsday scenario she paints. a default is what this would be if you stopped paying your bills on things like social security payments, all things people depend on. it could precipitate a historic finance crisis. the u.s. would get downgraded by moody's and all the credit ratings. rate might -- rates might spike. all kinds of turmoil. all of th

let's bring in stephen engle. the irony of course, it is not trading in the early part of this week, and we are looking at some of that angst, and what about the new slow that we are expecting from evergrande? >> there are so many questions, and it goes on holiday tomorrow. we have the bank loan and interest payments, and they have kind of gone quiet, and, of course, they are likely not to be paid. testing the market in a real storm, yesterday, across many sectors, banks and insurers and property developers on multiple fronts. the big question is, will this lead other policymakers in china to test it a bit, and to limit the market contagion? but, do you know what? china has shown it is willing to stomachs severe market losses, like what happened with the tech companies, and what happened to online tutors, to the video gaming immunity, to the macau casino, and over the last year, there has been the tightening of the property market. they have raised rates for first-time buyers, introduced rental controls in cities,

tom: stephen engle breaking down the implications of that political change coming in japan. let's get the first word news. angel: in the u.s. senator manchin potentially derailing the $3.5 trillion spending package. he is a key vote in an evenly divided senate, says rising inflation and national debt make a smaller approach necessary. the faa has grounded virgin galactic's space plane after a deviation threatened public safety. it went outside the area it was cleared for during its descent. the shares are down nearly 3% at the close in new york. three doses of a covid vaccine may become the standard according to the white house chief medical advisor, anthony found cheap. he -- anthony fauci. he said more data will be presented to the fda. 40 people are confirmed dead in the united states after the remnants of hurricane ida. record rainfall caused catastrophic flooding. it left transport services paralyzed. in new jersey and maryland, the storm triggered tornadoes. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analys

stephen engle. the nasdaq having its worst selloff since march of this year. the topix down 2.75%.urging energy prices boosting inflation, slowing recovery from the pandemic induced recession. meanwhile, adding to the dilemma of the world's central banks. david, how are you? dani and i have been chatting about a global stagflation issue. are we in a period of global stagflation? good morning. >> good morning. as a matter of fact, talking about the world economy, demand is not the problem. it is the supply-side. this is typically what we have seen in the late stage of the business cycle, ergo a phase where we like to talk about stagflation and stagflation is usually the result -- there is enough demand or too much demand and not enough supply. we are in this space. what you can call it is -- the big question is how long will it last? how will the supply-side adjust the higher demand? >> in terms of trying to cope with it, manus pointed something out to me i cannot stop thinking about. that was coming from andrew bailey saying the shocks we are seeing are restricted to the supply-sid

. >> stephen engle with the latest. breaking news from sydney airport.e saw the sweetened bid from the consortium. investors are now offering a dollar five cents per share with due diligence. --eight dollars 75 -- $8.75 per share with due diligence. it is very interesting. although sydney airport has been clinging to the optimism of mobile travel reopening, since his those initial offers were made, the outlook for australia has darkened with almost half of the population nationally still under lockdown. the lifting of borders is clearly playing into that sweetened bid. we will get the latest on that if there is a reaction. more to come on daybreak australia. this is bloomberg. ♪ >> here is a joke of the latest business flash headlines. -- a latest check of the business flash headlines. a strategic investment while hma infrastructure gets one from development holdings. both units plan to issue new shares for the repayment of debt. the plan is subject to approval from a chinese board. wage deals at 2 billion mines. they agreed to end the strike. union memb

let's get straight to stephen engle. our northern asia correspondent. more and more

let's get across to stephen engle on that story. juliette saly there in hong kong. juliette: let's talk about what is happening with evergrande, falling to the lowest level since 2014. you have evergrande nav falling by as much as 24%, but it's all about the question about the contagion of and how it will flow through. maybank saying they are not seeing systemic risk and chinese regulators will likely allow -- not allow it to evolve into such a risk. they still remain overweight on china. our opinion columnist says this could be the hunger games for evergrande, they have now hired financial advisors for the cash crisis. manus: sorry about the confusion. they have decisions, the social and financial. a pitch over to the oil market for the third straight day, global inventories have shrunk to the lowest level in 20 months, and goldman sachs's jeff curry thinks there could be more upside. >> market in a deficit, you've already exhausted the pandemic inventory glut, so you are slowly getting to a point where you get any type of disruption into the autumn, the potential

haidi: stephen engle with the latest on ever grand, next, an exclusive interview with panama's commercend industries minister on the global impact of the supply chain disruption. this is bloomberg. ♪ shery: inflation et al. concern for investors as the global supply chain disruptions continue. the panama canal is one of the key transit routes for global trade. perspective from our next guest, ramon e. martinez de la guardia. thank you for joining us, i know you are busy with the u.n. general assembly. i want to ask about shipping cost disruptions, how does that impact the canal? ramon: this year at the canal is going to break the mark of $2 billion to the panamanian state. it is doing well because of the extension of the canal that allows for chiefs and that makes up for the other firms we can see around the world. shery: that extension have been a few years ago but now we have huge shipping costs rising. shippers making record profits. is there any plan to raise tolls? ramon: not for now, but at that point, it comes to one of the plans that we have also for the recovery of panama. tryi

david: stephen engle is here with us. is this part of the broader campaign from the capital? they are not against education, i can guarantee you that. they are cracking down on the rapid expanding fee structures and the aggressive advertising to parents to get them into the schools to basically allow them to rise up the ladder, at a time when xi jinping is trying to push this common prosperity theme. what essentially the authorities are saying is that if you are an afterschool tutoring company or any of these education services that are in the crosshairs, you have to register as a nonprofit with the government, and until you do so, by the end of the year is the deadline, you cannot sign up new students and you cannot collect fees. this is in addition to the most recent measures that said local governments are going to basically set the fee structure. is this a nationalization? that is a pretty strong word, but again it is more control over what they see as disorderly capital -- rishaad: state-controlled capitalism, you could argue, couldn't you? that engenders debate, dissent

we will discuss all of these wells at ever grant with stephen engle. steve, i'll kick off with you. ere are we with all this. stephen: feels like the endgame, doesn't it? we don't know what the end result will be but it feels like we are in the throes of sub kind of death if you will? we will have to see. the bonds are trading at $.30 to the dollar. we have protests corrupting in at least three cities we know of across china, wanted to get their returns on wealth management products. at the headquarters yesterday were police were called and came in up in shenyang. there were employees who were protesting about their wealth management problems. there were protests from homeowners who were not necessarily getting the downpayments they got. ever-growinsaying we hard to sit financial advisors who most noticeably handled the lehman brothers issues. they are a massive company. they will explore all feasible solutions to ease the cash crunch. what can you do? your prospects for property sales, they have acknowledged our pretty much dwindling. they haven't been able to sell their hong kong p

yvonne: stephen engle joining us.ems like at this point we are seeing some verbal support. >> vague support. coming from the central bank, the pboc's thing they want to have a healthy property market and they went to safeguard healthy development of the real estate market and protect homebuyers lawful rights. this is been a big problem the last couple weeks as people are not getting their delivered home. they paid down payments. 1.5 million a conservative estimate of people who paid their down payment and central authorities want to maintain social stability and make sure minority shareholders throughout whether that is a wealth management shareholder or a property buyer or whatever are protected. analysts are weighing in on why we are seeing a sharp run-up in the stocks in hong kong and the a share market. an analyst says there may be some fine tuning to the host of different property curves that have come down. that has included tightening a mortgage approval, reduced -- raised rates for first-time homebuyers. there

. >> stephen engle here. we have done interviews before in tokyo. good to see you. wanted to ask you whether kishida-san really was -- not the copper mice, but if you look at kono -- compromise, but if you look at kono, he was the maverick. he had questions about nuclear power. on the others, the lead female candidate was more of the hawk and the conservative. really got a lot more boats than anticipated. was kishida-san the safe choice? >> you can put it that way. most lawmakers and many people, you know, the boat comes from ldp -- though vote comes from ldp lawmakers, rank-and-file members. kishida-san gained the votes most from lincoln -- rank-and-file members. people chose not necessarily extreme change. they want change, but in a comfortable manner. >> you have been a proponents of more females in government. will this -- what is this going to do? participation is still extremely low. >> right. president kishida is very positive about giving a chance to women. i'm expecting change in that regard. this election is showing that -- you know, two of four candidates

let's get to stephen engle. we wait for the dollar bond. >> the liquidity of injection, the end of quarter, also what happens at the end of the quarter, the weeklong holiday. giving a boost to sentiment. weakened by the evergrande situation. waiting for news on the dollar bond payment due today. some clarity from the company saying that they have negotiated a resolution. they don't know if it is the entirety. so it created some questions. the market obviously liking the jolt of liquidity and clarity on the bond. yvonne: tracking companies with exposure to evergrande? >> a major evergrande backer is china estate holdings. this has been a major backer. the ceo, the wife of the billionaire founder, tracking that they have been selling the shares. announcing to the market they could be selling almost all, or potentially all of their shares at a significant loss, the tune of 1.2 billion u.s. dollars. if indeed that action is realized. that is not a great voice of support. we are also hearing banks are up , a number o

shery: stephen engle, our chief asian correspondent to real have -- asian correspondent. we will have plenty more analysis on the shuffle in japan. >> chinese officials pledged to tighten supervision in the financial services industry. the central bank will close loopholes in its for an tank -- fintech regulations. they also told that authorities would -- australia's treasurer is expected to teleconference later monday and say that the nation's economy will stay resilient in the face of china. their top trading partner band imports including seafood, wind, and coal after diplomatic tensions flared last year. while exports of targeted products have dropped by almost $4 billion, sales to other markets have grown. the white house says it is confident joe manchin will back to president biden's $3.5 billion -- $3.5 trillion spending package. they claim the plan as note debt. his vote could be key in an evenly divided center last week he said rising inflation and soaring national debt should mean a significantly smaller land. -- smaller plan. the top white house medical advisor

let's cross over to stephen engle. we heard from ever grand on debt repayment and now we are watching for the dollar bond. >> global investors want to find more details about if the $84 million in coupon payments on the dollar bond will be paid today. indications are maybe it won't because they did not pay the bank loan interest on monday and put out a statement to the market yesterday essentially saying they have resolved through negotiations payment interest on the yuan note. it says the payment has been resolved via negotiation off the clearinghouse. usually chinese companies pay through a clearing house and when they pay directly to the noteholders it is often a sign the companies cannot pay the cash on time or in full. that is why investors scratch their heads when they saw the statement. is this a resolution or a delay because they cannot pay? that would indicate that into factor they are defaulting but not actually being named -- in de facto they are defaulting but not actually being named in a default. there is

let's turn to stephen engle in the studio to talk us through. his him? >> it is his to lose. are three weeks until the leadership votes. a lot could happen but it is lining up in his favor. we just need to hear from him. are you going to run? he has not announced. clearly, everything is stacking up in his favor. he has the backing of the public, overwhelmingly, he has the most twitter followers, he is social media savvy, he has the backing of the biggest factions in the lgbt, he has the backing of the business community. now he has the backing of his chief rival according to the most recent public opinion poll. if sheba -- has run and lost every time to shinzo labbe. -- shinzo eight. we are hearing he is dropping out and likely his endorsement. as i said, he is sitting there with a -- four aces in his hand. is he going to play it? david: i think you should play. [laughter] haidi: he also has support from the business community, which is why we are seeing this market friendly reaction. which areas in particular might see a boost? we have already seen on the market being up. he

let's get over to see -- to stephen engle.e a shaping up given that we know there is a lot of factional politics at play here? reporter: we can bring up the kyoto poll which shows the front runners. that is the popular support. but this election on september 29 for the ldp leadership is not going to be a popularity vote for the general populace. it will be those factional infighting. and what we are seeing here is of the three main candidates, between kishida, kono, and ishida, he is trading. the foreign former minister -- the foreign -- the former foreign minister who just heard in the interview on friday, he is dovish on the geopolitical front. however, we just heard his comments. he is saying the taiwan issue is probably asia's next big problem. of course, any of these leaders will have to deal with the china question. the leader by far in the polls is k -- in the polls is kono. he has a lot of experience with china. he is considered in asia centrist and a proponent of working with south korea as an ally against china. it w