tv Bloomberg Daybreak Asia Bloomberg November 17, 2021 6:00pm-8:00pm EST
while investors await news on the release of a six-week reserve. plus, the u.s. seeks dialogue with beijing as concerns mount over china's growing nuclear arsenal. haidi: let's take a look at how we are setting up here on the start of market trading in sydney. sophie: we are seeing little change, though, but we could see downside pressure. we are watching evolution expending to copper. rio shares also worth watching, but potential commodities downturn has ing warning of downside risk for the aussie dollar pulling markets below that level thursday and we are keeping and i -- keeping an eye on briscoe steel as well. we are seeing it off by about 1.5%. the kiwi dollar holding steady
just ahead of a reit on inflation expectations. checking in on the offshore you on, holding below 6.38, closing in on 18-week highs against the greenback -- checking in on the offshore yuan. shery: we have a full lineup for day two. noel quinn sharing his plans for hsbc in asia and we discussed it covid will help government recognize the importance of pandemic readiness. bill gates shares his views on that. former u.s. treasury secretary hank paulson also addresses the forum. we also outline sino u.s. tensions. neil gruma from eurasia group and the asia development group vice president will be speaking.
here with me is haslinda amin. you have had a really busy night. you spoke with the prime minister who had some very interesting comments when it came to taiwan. haslinda: the prime minister weighed in on the issue of taiwan. he said we are not seeing a war overnight, but tensions remain. we are seeing the u.s. increasingly engaging taiwan. they are seeing how china is testing taiwan's capacity, so there is a risk that a war could happen if there is miscalculation, so he says be careful. of course, we have had so many great guests on day one of the new economy forum. we heard about talking to continue to open up china to foreign investments. we also had henry kissinger weighing in on u.s.-china tensions and now day two. we have so much more to go, if
it is drug development of medicine, pandemic readiness, and of course, climate as an issue as well. haslinda: we talked about taking a pulse check of the health of our planet following cop 26. we are increasingly tapping space to solve problems on earth, and we had one man trying to connect the 50% of the world not connected yet. we are talking about rural areas. how is he doing this? looking to send 300,000 satellites to space that we are able to connect all these people. satellites are getting smaller and smaller to reduce the cost of sending them to space. very, very ambitious plan for space. we also talked about ambitions
in the market from goldman sachs' ceo, and that really plays into what is happening within ration concerns as well, right? haidi: and there has been the crush when it comes to energy prices, right? it could be one area that washington and beijing could find agreement on. president biden did discuss a virtual summit earlier on. how likely is this coordinated release of change of reserves looking? >> i think what is significant is the u.s. has been asking private channels to get on board with coordinated relief. i think they discuss it. they have not decided if they will do it or not.
i think china is going to be a little skeptical. meanwhile, india and japan have already said that spr relief is not used for these kinds of situations. it is for things like natural disasters, hurricanes shutoffs of rise -- hurricanes shutoffs of supplies. shery: our commodities editor on a kid tanaka -- anna kitanaka there. president biden also raising the issue. what sort of cooperation could we see on the events front,
especially perhaps working level talks between the two sides? eric: absolutely. working level, kind of lower level talks in the past have not borne a lot of fruit with china in terms of the nuclear arsenal, so there's skepticism around how much could actually get done this time, but we know that this is an issue being explored along with the talks with russia, of course, and that there has been great worry about the room for mistakes on the securities side. president biden has alluded to the greatest worry being some misunderstanding that leads to an escalation of tensions, so this is something we are certainly seeing an initiative i both sides, but still some skepticism as to how it can actually get done through these kinds of interactions. shery: we've been gauging some
of the global reaction to these key talks. i'm wondering what the domestic reaction has been within the u.s. does president biden have the support to push ahead with his strategy on china? eric: certainly when we talk about china and washington, there is bipartisan concern about china and china's rising role. this is something a few years ago we had seen some people in president biden's own party who have been more open to seeing china as a part -- as a partner, particularly on economic issues. it is something we have seen growing concern, particularly about export controls and the access to cutting-edge technology that china has. some republican senators are always pushing to see more done by the administration, limiting that access to technology that can be weaponized and used for
military reasons as well as seeing concern from the national security council, talking about wall street and the u.s. investors funding chinese militarization, so a lot of concern whenever we talk about china and washington. haidi: a number of u.s.-listed chinese technology companies have seen their share price rally this month, including alibaba, but there is a potential reality check this week, reporting third-quarter results amid what is an ongoing regulatory assault. let's bring in our chief asia correspondent, stephen engle. alibaba first in the firing line. what are the expectations here? stephen: i think a lot of investors who invested in these chinese companies, especially back into this recent rally since those lows we saw in early
october, they are watching these results for any indication that this regulatory crackdown is going to extend further than expected, perhaps into full-year guidance from alibaba next year. this is a big week. more than 30 of the big chinese tech companies that make up the golden dragon index from the nasdaq are reporting from now until the end of the month. biden was just out overnight. they had a net loss. they had 13% increase in revenue, but advertising is down again across the board as spending is down. ai was a big boost. that is -- then by do, the less important one, if you want to call them -- then baidu. tencent was out last week, and it had the slowest pace of revenue growth since it listed in 2004. alibaba, of course, the poster child for the regulatory
crackdown when jack ma a year ago made that infamous speech that they kicked off all this regulatory action, and the consensus estimate is for a 17% fall in net income, and anything less than that, and investors are going to go, maybe we need to get out of this -- that is what analysts are saying. there is concerned they could lower their full-year outlook profit and revenues next year if positions are as bad as some expect. haidi: our stephen engle in hong kong with a preview of alibaba. let's not get to su keenan. su: we start with the eu, which will impose tariffs of as much as 44% on fiber cable from china to counter dumping. it is expected to support -- to affect the supply of nexgen telecom equipment. regulators say the low cost
pricing could drive local producers out of the market. this follows a complaint by europa cable, a group representing eu manufacturing. meanwhile, many european governments are adding new coronavirus restrictions as they battle a new wave of infections. germany reported 50,000 cases in a day and is now proposing workplace action for people who are vaccinated, who are recovered, or who have provided a negative test. austria is restricting movement of unvaccinated people. beijing is further tightening virus restrictions, even after china's outbreak receded. authorities have asked residents living in affected districts to avoid leaving the city.
singapore's prime minister has raised doubts in an interview at the bloomberg news economy for them. long said it would be a tough balancing act -- lee says it would be a tough balancing act. singapore's low taxes have helped it become a regional financial center. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. haidi: the former u.s. ambassador to the asian development bank calls for deeper engagement between the u.s. and china. coming up next, pimco's analyst
>> if china is considered un-investable, then chances are whatever risk you are thinking about bearing in china, you would be ok to take it. china has not had a recession since the mouth -- the mouth -- the mao era, which ended in 1978. these things have not been tested, but we are optimistic. >> speaking there on the opportunities in china.
let's bring in the coo of global credit at pimco. it feels like investors are starting to see the pockets of opportunity as being worth the risk. how do you feel about credit in china at the moment? >> we definitely have exposure in china, and it is more of a long-term view that china's economy is going to grow relatively fast over the next 10 years, particularly relative to developed markets. if you look at the consumer, the percent of the overall economy, it still has a lot of upside. those consumers will want to take more vacations, consume more. we definitely like the sector. the property sector has been under significant pressure. the government looks like it may come in and ease liquidity to the sector, mortgage
availability, etc., so some of the higher quality developed properties make sense. we mainly like the travel and tourism sector. that is where we have mainly been focused. haidi: you talk about the consumer, and i think a lot of people were surprised by the perceived strength of the u.s. consumer. is that a trend you could see more globally, that despite rising pressures, we are still seeing that consumer demand strength coming through? >> yes, definitely. if you look at the u.s. economy, we will grow this year real gdp five point 4%. we think next year, the economy will grow 5.4%. we think a lot of that is the consumer. the consumer is sitting on trillions of savings. the labor market is actually very tight when you look at job openings, looking at quit rates.
companies are also passing on higher prices, so the consumer looks very durable here. if you look at what has happened, we have been spending a lot on goods. that's going to transition to services. the real upside we think in 2022 is really these covid-impacted sectors like airlines, lodging, gaming. all those sectors should recover, so look for the consumer to spend a lot on services, not just in the u.s. but globally next year. shery: will we continue to see banks benefit from the reopening? >> banks definitely will benefit because they are a pure play on asset quality and very cyclical. really, what you saw in the united states in particular was unprecedented fiscal and monetary policy support coming out of the crisis. we have run essentially two years of double-digit deficits in the united states.
that all went to support the consumer. despite the fact that unemployment spiked, you saw asset quality hold up really well. banks have benefited significantly from that, and now with interest rates rising and the potential for a steeper yield curve, banks will also benefit from those higher rates. finally, as the economies have reopened, you have seen significant market underwriting activity help banks connect and be very clear in their earnings profile. shery: we have seen a lot of volatility in the markets, but it seems credit has shrugged that off. we have seen a barrage of bond sales. is this the way to go, or could we see a shift in trends? >> i think the net supply will actually go down a bit next year because you have a lot of redemption activity. the low level of rates and entire spreads have no doubt encouraged a lot of issuance, but in general, credit markets
have been very resilient, and a lot of it has been the underlying strength of the economy as well as corporate profitability. you're looking at a very strong economy. inflation is elevated and will likely stay elevated. we think that ultimately sets up for a more aggressive fed. overall, we have been reducing risk. we increased our credit exposure a lot about a year and a half ago. we tilted into cyclicals. we are reducing a little bit of credit risk simple because we do think that with inflation risks elevated, the fed will likely have to taper a little faster and potentially could raise rates as soon as the summer of next year. shery: great to have you with us. pimco's cio for global credit. coming up, mastercard counting china among its major markets despite strict rules. plus, hsbc's ceo joins us around
haidi: raisin supply chain concerns at the bloomberg news economy forum in singapore, and we continue to track the fallout of the global supply crunch as everything from chips to toys to coffee takes a hit. the top stories today -- cisco giving a lackluster revenue forecast for the current period, blaming supply chain issues for the component shortages. audio products maker topped wall street expectations, but the company ceo is morning supply chain issues will continue to be a problem into the next year, and a cup of coffee at starbucks may start costing more as a
rabbit comprises trade -- as arabica prices trade near their highest levels in years. shery: take a look at commodities. for the first time in a decade, six of the world's industrial metals are flashing a rare warning about supply. copper, aluminum, and tin are sending signals about supplies, known as backward's asian -- known as backwardization. haidi: prices tumbling, but the ceo says the retailer's business model is durable ahead of the key holiday season. >> operating 24/seven in the
ports is something we have been doing for quite a while now. 60% of your inventory happens at night, and that is good for us and good for creating capacity for other retailers to use those daytime spots, so the capabilities are certainly serving us well in the current environment. shery: baidu sales jumped after growth in newer businesses helped offset a slowdown in its main internet advertising division. the company posted third-quarter revenue of $5 billion. its net loss amounted to almost $3 billion. it is investing in areas including unmanned vehicles and the cloud. nvidia has even an updated fourth-quarter forecast yield by an expansion into data center chips and other markets. the fuel giant expect revenue to hit $7.4 billion, more than 500
million dollars above analyst estimates. the news saw shares rally in late trade. bridgewater associates is said to be seeking to raise $470 million for a third private fund in china. moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving.
♪ >> today we don't provide most of our services in china. i don't see that changing. there are areas where there are opportunities for us to work together. >> there's a lot of pressure for us to do certain things differently. there's a possibility. we think about this with the 30 year perspective, not with the next couple of years perspective. we are long-term committed. >> they need to take time to understand each other.
there are disconnects right now. i think biden is trying to engage more but there is still some disconnects. haidi: bloomberg's new economy forum on the opportunities in china. our next guest says that this is singapore's moment. we are joined by curtis chin. it's great to see you in person. thank you for coming in. curtis: what a wonderful time it is. haidi: in singapore. tell us about singapore's potential, given that we are seeing this chinese crackdown and its reach into hong kong. curtis: absolutely. think about it. that we are here together is an example that singapore is benefiting from hong kong's demise and transformation to something quite different than the hong kong that we've long known. think about this week, last week. singapore hosted a major fintech
fest. this new economy form. how terrific that people are coming back to what singapore has traditionally been, a hub of interaction and convenience. this is southeast asia's moment and particularly singapore's moment. haidi: how present is the united states here? curtis: very present. we opened the event by noting u.s. foreign direct investment all around the world. there's more u.s. foreign duress -- direct investment in singapore than these countries that we ali -- always hear about. think about it overall. america is here. haidi: chaotic scenes in afghanistan. we'll compare that to what happened in vietnam. what was the reception here from these nations? curtis: it's interesting that you mention that. that was the same time that are
u.s. vice president kamala harris was here in singapore. to be frank, here trip was over shouted -- overshadowed by afghanistan. it was an example of something i want to point out. the united states needs to do much more than drop in visits. how great that the u.s. commerce secretary is here at this event. how great that the vice president was here. we need more. america has to have a long-term presence in the region. there is so much opportunity in southeast asia. haidi: when it comes to the economic framework they are in, the u.s. is not joining the cpp bp anytime soon. i believe that we do have her comments right now. take a listen. >> -- haidi: so we don't have her comments. she said that a lot of people
are wondering whether or not president biden would bring the united states back. her response is, not right now. there is criticism that the u.s. doesn't have a long-term vision when it comes to an economic framework that they can be part of. what do you make of that? curtis: there's a very valid point that you and others have made. the u.s. has to get back into the business of trade deals. they shape the framework where we can all succeed and move forward. the u.s. must first get its own house in order. that includes engaging with my fellow citizens. the government must engage with the american people about the importance of trade and be honest about the good and bad of trade engagement. we focus on the macro. we need to focus on the micro, about real people that are suffering because of the consequences of trade. if our government does that, there will be support that will
in the future allowed trade deals to move forward in our u.s. congress. haidi: they were talking about a more formal process when it comes to that economic vision here in asia. what would that look like, especially if they are not engaging? curtis: from my own work involved with the asian bank, i sat on their board. there are many multilateral institutions that the u.s. can do much more of. when president biden says, we are back, we need to recognize that that should not be business as usual. we have to be back in a different way to succeed in southeast asia. haidi: china is trying to join. we know what china does with those countries. what are the prospects there? will they eventually come through? curtis: my gut is that because
these organizations work by consensus, it won't happen anytime soon. keep in mind what just happened. the regional comprehensive, china joined that with the 10 nations of southeast asia. china is moving forward. the united states has to recognize that the u.s. must also move forward. we can move forward in ways that aren't just about trade deals. it's business-to-business, cultural engagement that the u.s. needs to play a bigger part in. haidi: the u.s. seems to be playing a part when it comes to the rhetoric around taiwan. is that a real concern? could that be a flashpoint? curtis: of course. one of the speakers at this event was henry kissinger. taiwan and other issues came up. he made the key statement that it's not just about what the u.s. needs to do. it's about what china needs to do. everyone says, what should president biden do more of to
improve the relationship? that should be posed to president xi. what should china do more of to improve that relationship? i worry about a miscalculation. all nations should recognize that we have benefited from a time of free trade, free and open navigation in this region. that has been the basis of asia's prosperity. haidi: what should china do? curtis: china needs to pull back some of the rhetoric. i think for both sides. let's hope rhetoric matches the reality. we talk about u.s. engagement in the region. we need to make sure our engagement is not just stop by business. it's ongoing engagement. when china talks about doing more with climate change or peaceful resolutions of issues, let's see that their actions match up with the rhetoric. don't build new islands. rhetoric and reality must match. haidi: how much has the summit
lowered the temperature? curtis: it's an important step forward. the temperature right now is the highest it has been in a long time. it's an important step forward. at least these two leaders are at least talking. from cap 26, let's make sure we move beyond the blah blah blah to some very real actions. the u.s. is doing it. it's china's turn to match its rhetoric with some real positive steps forward. i think it can be done. haidi: with him consolidating his power within china, is that more likely to happen in the sense that he has more control about all the different factions and voices in regards to u.s. china relations? curtis: my hope is that as a strong leader, he can make important steps forward that bring the u.s. and china and the rest of the region together. it's not just about that bilateral relationship. it's also about china understanding that it has to
move forward in a way that japan, india, vietnam also see that these are bilateral relationships. that is back in china's court. haidi: the u.s. does have a very heated domestic political scene. we know that congress is trying its best to pass bills that would put more scrutiny on china. can there be a political environment where u.s. china relations are easier to mend? curtis: of course. i'm always mr. optimist, as you know. we are also negative. with this environment -- haidi: president biden's political capital, his poll numbers have really been hit lately. can he really convince the rest of washington to go along with his plans on china? curtis: right now, there's a
bilateral -- both sides are in agreement on u.s. policy towards china which means it needs to be a tougher, more realistic policy. the next step is for president biden to say, what does that mean in terms of specific action? to the president's credit, think about the things he has done already to try to bring people together in terms of our u.s. friends and allies. strengthening the quad, the relationship with australia, japan, india, the u.s.. these are things that should not be looked at as anti-china. it's about bringing together regions for a pathway to continued prosperity, including right here in southeast asia. haidi: so great to see you in person in southeast asia. thank you very much for your time. curtis chn. singapore's prime ministers saying tensions over taiwan could lead to a miscalculation between the u.s. and china.
he discussed the relationship between the world's two largest economies and washington's role in asia. take a listen. >> first, i would try to move on trade. you can't do an fda but you do want to move forward on trade, even despite the democratic party rules. secondly, to develop a relationship with china because if that relationship is foul, it's harder for every country in the region. don't stop with china. also cultivate your other friends in the region and allies. the second part, biden is trying to do. it's a long journey but he is starting. friends and allies, his approach is quite clear. people do believe that. the last thing you can do is ensure the president after 2024 is of like mind. >> that is sadly not within his giving.
>> it is really important. you have to be able to look beyond. america's interests extend beyond 2024. >> one less question on that. taiwan. how much should we worry about what will happen there? >> we should be concerned. i don't think it's going to work overnight. it's a situation where you could have a mishap or miscalculation and be in a very delicate situation. the countries all say the right things. this virtual summit this morning, joe biden said, the u.s. will uphold its one china policy. he also talked about the taiwan relations act which is law standing. president xi said, we are not in a hurry to solve that problem. yes. it's a codeword but everybody knows what he means. in taiwan, the doctor says, we
ask everybody to maintain the status quo. everybody says the right thing. but if you look at what is happening, it is not a static situation. the u.s. has significantly increased the visibility, the level, the intensity of engagement, diplomatic engagement, even military engagement with taiwan. china has been testing taiwan's air defenses. it flies airlines into their zones almost daily. it doesn't intrude into sovereign airspace or its immediate airspace. but it's testing taiwan's defenses and tightening up on international space which was prepared to concede taiwan even five or seven years ago. on the part of taiwan, this
administration has disavowed the 92 consensus which was to each his own interpretation and says, no, that's not an acceptable formulation. and taking other steps. for example, printing on passports in english, taiwan passport. all these moves raise suspicions intentions. and make it more likely that a miscalculation could occur. haidi: speaking with bloomberg's editor-in-chief. the bloomberg new economy form. we get more from singapore ahead. in the meantime, let's get you to su keenan in new york with our first word headlines. su: the eu has postponed plans
to improve ties with taiwan. they were expected to announce a new framework on trade and economic issues. the south china morning post reports those plans have been shelved but may be revisited at a later date. china's ambassador to the eu warns a block against developing official relations with taiwan's -- taiwan. the ecb vice president says inflation should slow next year but not as quickly as expected a few months ago. he tells bloomberg that he's in -- easing price pressures would prove it is transitory and reaffirm the views of central bankers. he also says he doesn't expect the ecb to raise rates for at least a year. >> we will see what happens over the next months. the emotion of the economy, inflation. my personal view is that it's
going to be quite unlikely to have a lift off of rates in 2022. su: china is said to be planning to let property companies resume issuing asset-backed securities, ending a three month market freeze. according to bloomberg sources, regulators recently told chinese exchanges that high-quality developers can apply to issue new asset-backed securities to repay outstanding debt. we've been told that authorities will also relax caps on bond issuance. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. haidi: the turndown and china's property sector prompted barclays to downgrade gdp forecast. sophie has more. sophie: i barclays, they are predicting sub 5% growth for china next year due to the outlook for property sales as
well as the impact on the covid policy and pressures from climate change commitments. baidu specs the pboc will research -- resort to more easing. we have seen the renminbi on the advance, closing in on 2018 highs against the u.s. dollar. this was the top performer year to date. china's trade surplus as well as easing of u.s. tariffs providing a supportive backdrop. morgan stanley staying bullish and they don't see pboc discomfort around the strength yet as long as the fundamentals are intact. the daily six for the u.s. will be watched by the pboc's intent. pulling up the board. ing saying that that factor along with the commodities downturn will weigh on the outlook for the eu d. it is trying to catch up. the aussie dollar holding below
73 for now. pulling up the chart right now, checking in on the aussie share market. let's see what has been going on so far in the session. evolution mining jumping the most in 19 months on a deal to buy a copper mine from glencore. health care rising on the back of a four-month update. take a look at the laggards. resources falling after cutting production guidance. bluescope under pressure. ♪ haidi: mark mobius has allocated almost half of his emerging markets fund to india and taiwan to offset a slide and chinese shares. the founder told us why he is so bullish on india and gave us his long-term investment outlook. >> india and taiwan are the two
biggest countries in waiting period -- waiting period -- waiting. it's where china was 10 years ago. it's got a long way to go. there will be corrections along the way. you have to be aware of that. otherwise, india is on a run. it's going to do very well. >> doing very well but are you looking at a 10 year rally. what kind of returns can you expect? >> i'm looking at a 50 year rally. india is on a 50 year rally. you must remember, it's the united states of india. these individual states are just now beginning to get together and have more commerce. they changed the tariffs between states.
they are coming together. it's going to be accelerating with technology. you are going to have a long-term rally. there will be bear markets along the way. as you know, bear markets are very short duration. the markets last longer. we are in there for the duration. we are not in and out. we stay in. >> the big cheddar in the market right now is where rates go from here. what assumptions are you making about rates 5, 6 years from now? what impact will that have on the 60/40 portfolio? some say that that is dead. >> there's no question that rates will go up eventually. i think central banks will begin to realize that there is zero rate policy or negative rate policy. it's not good because it engenders all kinds of speculation. the reason why you have cryptocurrency is that people on
the streets say, why should i keep my money in the bank if i'm not getting any interest? i will just try bitcoin or whatever cryptocurrency comes along. that creates a speculative environment. i think rates will go up. you must remember that money supply has gone up by 30% plus. they say cpi is 5% up. that doesn't reflect really what's happening to the devaluation of the currency. current sing are devaluing at a rapid rate. the good news is that with technology, the prices of goods and services are actually coming down in earnings power terms. you have these two counterbalancing effects and it's going to be interesting the way this works out. you can expect higher interest rates, no question about that. >> you talk about cryptocurrencies. you are a nonbeliever. you say that's not the way to
invest. central banks are looking at digital currencies. as long as these coins are regulated, they say there's a place for crypto in the financial system. your take on that? >> you know, it's like the head of citibank during the housing boom. he said when the music is playing, you have to dance. that is true now with the cryptocurrency. the banks really don't care or know about what it is. they say, if our customers want to have a party and dance, we have to dance with them. create the platform for them. that doesn't mean that it's going to be a very good investment. i think it's grown into a craze. i travel around the world. i was just in italy. one of the people i was talking to believe in bitcoin. they think it's the greatest thing since sliced bread. that doesn't mean it's going to
be a good long-term investment. >> but the future is digital. what would it take for you to have cryptocurrency make out one to 2% of your portfolio? what would it take for you to be a buyer? >> you just made a very good point. digital. digital. digitalization of currency is with us already. digitizing a currency is not creating a cryptocurrency. that's two different things. for example in dubai, i can use my cell phone to make payments just by clicking two buttons. that's a digital currency, basically. it's not a bitcoin or a cryptocurrency. it's the local currency into by. let's separate these two things. there's no question that our future is digital.
everything is clearly digitized. it doesn't mean we have to believe in cryptocurrencies. >> if you had $100,000 and a high risk appetite and looking at a time of five to 10 years, how would you invest? >> i would put 10% in gold. physical gold, by the way. not gold stocks or anything like that. the rest of it, i would put it into equities with maybe 50% and emerging-market equities and 50% in developed market equities. by the way, did -- the differentiation is getting very blurred. you are having companies, if you look at the s&p 500 and you analyze the earnings of these companies, emerging markets are a big part of their earnings. if you can make that differentiation for a listed emerging-market companies, that
90% would go into those companies. at the end of the day, in order to protect the currencies, you have to go with the companies that are adjusting their prices to fit the devaluation of the currencies. companies that have a very good return on capital, high margins including earnings growth, you can buy those and go for five years. all these companies will do well and protect your wealth. >> why even bother with gold? gold has done very little. some say that when inflation is surging, gold is not a good hedge. >> no. gold is a good safety mechanism. in other words, you must remember that there have been times in the history of mankind
when the government decided that they would take everything. they would say, your currency is no longer good. we are creating a new currency. we earned it. something transportable that you can keep. that's the reason why i talk about physical gold. gold coins. keeping that for the days when there is some disaster. it's a good thing to have. ♪ haidi: mobius capital partners founder speaking with bloomberg's hassey on -- hassey into almond. you can watch every thursday. that is 6:40 p.m. in new york. we are still live here at the fourth annual bloomberg new economy form, happening throughout the week in singapore. we will share face-to-face discussions among world leaders on topics ranging from finance and climate to cities and health. we have big interviews coming up
while investors await news of the potential release from the u.s. strategic reserves. here why oaktree capital remains positive on investing in china. haidi: evergrande to sell shares for 2.13 billion hong kong dollars. that sale is being transacted with allied resources. this is not the first time we've seen these sales take place. we've seen two previous disposals by evergrande. evergrande saying that it is ultimately owned by -- and we are seeing outlook reaction to those previous sales, saying that they will probably need to sell more shares to settle their bond coupon payments antiphon deliveries and construction activities where they have undertaken to get those deliveries and construction completed.
we saw the disposal of 530 million shares just a little bit earlier in november, reducing that stake at the start of november. we are seeing a further share sale and disposable at the moment. we are looking at those shares of 2.13 billion hong kong dollars in total. shery: yeah. we will be looking forward to the open in china. korean markets coming online on thursday. they do have a college examination day. tokyo trade is kicking off. what you seeing? sophie: after the stubble for japanese stocks, declines looking to continue. the nikkei up. ditto for the topics. we have seen some downside recently for japanese stocks. compared to the regional peers, they are doing fairly well.
i credit suisse, they've upgraded japan to overweight going into next year. we do have the yen just a little bit on the back foot. looking to consolidate around the lower 114 levels. jgb's pushing higher ahead of a 20 year auction this thursday. we will cape an eye on crypto plays as we see bitcoin prices back above 60,000. switching out the board, asia biotech names. a potential setback for a drug in europe. shares under pressure at the start of cash trade. we are keeping an eye on chip stocks this afternoon. that's not helping lift chip equipment plays in tokyo. we are now seeing some downside pressure after they closed at fresh record highs. haidi: let's get more on the
markets now with our emerging markets strategist simon flynn. as inflation was continue to twist the market back and forth, what does the potential rebalancing at this point look like? simon: the most interesting possibility is whether we've already reached a high point in inflation concerns. you saw oil prices fall significantly overnight. commodity prices overall are down. also if you look at the prime, you can see shipping cops are up. i don't think many people in the market would agree with me. those are signs that we might be reaching the peak of inflation concerns. we will know more next week. we've got pmi data on november 23. the last set of data did show pretty horrific supply-side constraints. if that does continue, i will be wrong and inflation concerns can
keep the link. -- building. shery: we have seen more talk about tapping the strategic reserves when it comes to oil and cooperation around the world. how is that going to affect energy prices? simon: in the short-term, it's quite negative. particularly if the u.s. and china come together and do a coordinated strategic reserve. having said that, i don't think that they will be particularly aggressive even if they do it. you have to remember that in releasing the strategic reserves, you may bring about a reduction in spot prices of oil and energy. actually, you are disincentivize incur -- disincentivize inc. production. you won't have a big impact on further they energy prices.
they are more important for the markets than the stock price or the near dated prices. shery: simon flynn there with his and views on the market. you can follow more on our mliv blog on the bloomberg. you can get a market run down in one click. there's commentary and analysis from bloomberg's expert editor. you can find out what is in fact -- affecting your investments right now. the full lineup for day two of the bloomberg new economy form. we discuss whether covid will help governments recognize the importance of pandemic readiness. bill gates shares his views on that. hank paulson is addressing the form as well. we also analyze the outlook for sino -- china u.s. tensions and
economic recovery in china. the asian development bank vice president as well. joining me here in singapore is our chief southeast asia correspondent haslinda amin. it is so good to see you in person. what a busy day it has been. you guys hosted the prime minister last night at the gala dinner where he talked about u.s. china tensions. haslinda: that's right. taiwan is front and center. he talked about the risk of a miscalculation. the u.s. engaging so much more with taiwan right now. china testing the military might of taiwan. that could just be a miscalculation but that could lead to war. a war won't happen tomorrow but the risk remains. haidi: another busy day here. we are talking about everything from drug development to medicine, global health care systems have been so strained from the pandemic. readiness will be a key issue. not to mention the long-term
issue of climate change. haslinda: that's right. interesting to note that the repercussions of climate change are impacting the developing world more than the developed world even though this contributed the most to it. what are the solutions? how do you go about addressing the issues of air, energy, pollution. when it comes to these markets, it's a matter of life and death. today, lots of discussions on what the solutions are or can be on the ground. shery: very interesting that we also heard from the vice president about that difference between developing and developed economies and how we would need to support those emerging economies as well. haidi: particularly as we head into the next phase of the pandemic recovery and vaccine distribution. so much to talk about at the bloomberg new economy form in singapore. let's get you to new york now. vonnie quinn has our first word headlines.
vonnie: -- su: the ecb's vice president says inflation could slow next year but not as quickly as expected a few months ago. he tells bloomberg that easing price pressures would prove the current bout of inflation is transitory and reaffirm the views of central bankers. he also says that he doesn't expect the ecb to raise rates for at least a year. >> we will see what happens over the next months with the evolution of the economy and inflation. my personal view is that it's going to be quite unlikely to have a lift off of rates in 2022. su: to the european union which is reportedly postponing plans to upgrade trade ties with taiwan. brussels has been expected to announce a new framework to liaise with taipei on trade and economic issues. the south china morning post report those plans have been shelved or may be revisited at a
later date. china's ambassador to the eu once the block against developing official relations with taiwan. beijing is further tightening virus restrictions even after china's outbreak receded to fewer than 10 new daily infections. authorities in the capital have asked residents living in district with infections to avoid leaving the city. entertainment venues will deny entry for people from anywhere with a covid case in 20 --. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. this is bloomberg. haidi: we have lots of great interviews ahead at the bloomberg new economy form. pro-intelligence founder joins us to discuss how artificial
♪ haidi: singapore's prime ministers says tensions could lead to a miscalculation between the u.s. and china. speaking at the bloomberg new economy form, it they discuss the relationship between the world's two largest economies. >> we should be concerned. i don't think it's going to war overnight. it's a situation where you could have a mishap or a miscalculation and been a very delicate situation. haidi: let's discuss the
complicated relationship between china and the u.s.. we are joined by singapore's minister for foreign affairs. it's great to have you with us. thank you for having us in singapore. dr. balakrishnan: great to be with you. haidi: let's talk about the comments your prime minister may. how are you preparing for any contingencies? dr. balakrishnan: the first point i would make is that the probability of an actual conflict is low. second point, it's a redline. certainly something which everyone needs to be concerned. the third point is that the real risk, it's either an accident or a miscalculation. the more there's engagement, talk, discussion, hopefully a meeting of minds, that lowers the risk considerably. that's really where were at at
this point. shery: are you trying to facilitate those talks? dr. balakrishnan: it's not for us. it is something which china and taiwan need to solve amongst themselves first. shery: singapore is such a good partner to both of them. dr. balakrishnan: we are good friends to both sides, across the states. we really do hope for the best, that they can lower the temperature and tensions, the risk of a miscalculation. that's the only way you're going to get peace in a sustained manner across the street. shery: how much of the virtual summit helped? dr. balakrishnan: i think that was absolutely essential. this is a stage in which both countries decision-making really is localized at the very apex. the more the two leaders talk candidly and sincerely, the better. it lowers the chance of a
miscommunication. shery: singapore is supporting china's application tessa cppppp trade agreement. where will that go? dr. balakrishnan: tape a step back. the spirit is for it to be open, inclusive to any economy that meets its high standards. it's the most ambitious level, multilateral free-trade agreement in the world right now. on that basis, we would have to welcome anyone who needs and aspires and is able and willing to focus. it is something that will need to be discussed in greater detail. the second point is the process. it requires consensus by all the existing members. this discussion, this dialogue, amongst all the individual members. shery: are you facilitating
those discussions? dr. balakrishnan: we will certainly have to facilitate these discussions. look, singapore is unique because for us, trade is three times are gdp. this is not just ideology or negotiating points for us. free-trade is our lifeblood. anything that promotes that cause is something which we would support. shery: taiwan applied as well just days after beijing did. dr. balakrishnan: not surprising. shery: what is that dynamic there and how are you expecting it to play out? dr. balakrishnan: the same principles apply. are you willing, able? shery: are you back as well? dr. balakrishnan: we would welcome the application in the same way we would welcome any economy that is willing and able to meet our standards. having said that, there are obviously political compu -- complications and that. like many of the issues across
the street, you do need resolution. you need a meeting of minds. shery: what about the meeting of minds when it comes to myanmar? the u.s. has talked about singapore having financial leverage on that point in order to help achieve democracy. dr. balakrishnan: what is happening in myanmar is a tragedy. a real tragedy. not just on progress towards democracy but its impact on the ordinary people. the increase in poverty, the pandemic, it's really a terrible shame that this has happened. the second point is not to overestimate the impact of external. it won't work. from years of working and engaging with people in denmark, we know that this is a nation that needs to resolve its internal problems internally
without others trying to interfere. specifically on singapore, i think we should not overstate our influence or our ability to affect events in myanmar. the people in both sides across the spectrum no our position. we want peace. we want negotiations, reconciliation. that's the only way you can get peace and prosperity back. shery: what is singapore doing to achieve that? dr. balakrishnan: we are all in aussie on. we stick to our position clearly. you saw the recent summit, the representation of myanmar. the first point is that myanmar remains an integral member. second, we do state our position clearly, categorically. no question about that.
we are delivering humanitarian assistance. our main concern is the people of man mark. the economic, humanitarian crisis. shery: parliament passed a foreign interference act. what is the biggest threats right now? dr. balakrishnan: we live in a world in which hostile information, in which influence meddling has so many additional tools. it is not tenable. we are protecting defenses so we can ensure there will be no hostile, launched by external parties who are advancing the
agenda of external parties. shery: it's not uncommon for chinese media to tow the line. dr. balakrishnan: i would not characterize it that way. again, we are unique. we are the only political entity outside of china with a majority of chinese interest-free who understand the chinese language, who respond to cultural cues. now, that is both a blessing and a burden. the key point is that singapore is not china. we are in the heart of southeast asia. we understand china. we certainly have a role sometimes for communication, for extra nation. sometimes, even being a convening point for dialogue. that is our unique selling point, our value proposition. shery: it's really great to be here with you, face-to-face. thank you so much for having us in singapore. vaccination rates are very high
but restrictions have been stringent. what are you expecting in terms of easing some of those restrictions and your outlook for 2022? dr. balakrishnan: we have one of the highest vaccination rates in the world. we are at about 86%. two doses and boosters at 20% and rising. the unique thing about what were trying to do is to get to the level where there is reasonable population immunity. but for this to occur with very low mortality rates. right now, what you are watching in singapore is that the virus is spreading in a population that is epidemiology naive. we were at covid zero. now we are transiting to an endemic covid situation. the differences that we are transiting in the presence of very high vaccination rates.
our ambition is to get through this with the lowest mortality rate in the world. shery: thank you so much for being here and for having us. don't miss another interview from the bloomberg new economy form this hour. grow intelligence founder joins us to discuss how artificial intelligence can help produce honest answers to problems in the world of infrastructure in the economy. this is bloomberg. ♪
billion. a call for self sufficiency and key technologies. bridge order associates is raising a $470 million fund for its third private fund in china. sources tell us ray dalio's firm is selling to investors with at least 2 million yuan who are willing to lock up the money for a year. the plan is triple the size of bridgewater's biggest offering and would help it overtake all global players in china except wynton group. asset management has agreed to an injection of equity capital from state owned firms in a long-awaited bailout. the troubled asset manager is raising about $6.6 billion from the share sale which is left than a 7.8 billion dollar package that was discussed over the summer. they are majority-owned by china's finance ministry. it's the country's biggest asset manager.
shery: we are seeing it falling in tokyo trading after they had a setback in their out -- alzheimer drug in europe. we got news that shares -- the u.s. drug maker got a signal that europe's medicine regulator may be reluctant to contra -- clear it's all timers disease drug. we are watching asian biotech stocks across the board. it's a full lineup for day two of the bloomberg new economy form. we will hear from hsbc. he shares his plans for the lender in asia. we discuss whether covid will help governments recognize the importance of pandemic readiness. bill gates shares his views on that. the former u.s. treasury secretary also addresses the forum.
>> this is "daybreak: asia." first word headlines. inflation in the u.k., climbing faster than expected in october, in fact, faster than in a decade, putting pressure on the bank of england to raise interest rates. prices rose four point 2%. higher costs lead the jump in prices. analyst expect more price pressure next year, and a likely jump in household energy bills. meanwhile, the eu will impose
tariffs as much as 44% on optical cables from china to counter alleged dumping. it affects the supply of next-generation telecom equipment used by deutsche telekom and others. it could drive local producers out of the european market. the decision follows a complaint by manufacturers. many are adding new coronavirus restrictions, this, as they battle a new wave of infections. germany reported 40,000 cases a day, proposing to limit workplace access to those vaccinated, recovered, or provide a negative test. reinstating work from home four days a week, while austria is restricting the movement of unvaccinated people. beijing tightening restrictions, even after the outbreak was 10
or fewer infections. those living in certain districts are asked to avoid leaving the city. entertainment venues will deny entry for anyone from an area with the covid case in the past two weeks and operating at 75% capacity. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. >> let's get you to the market in hong kong. >> we are seeing muted moves for asian markets. tepid, gains of a third of a percent for the asx 200. this after a two-day drop for the market. we do have energy, banks, and discretionary under pressure in sydney. in tokyo, losses continue for
the nikkei 225 and the topix. the yen trading in the best zone in four months. let's look at kiwi stocks. the index is among the biggest laggards in asia, along with the kospi, set to open at the top of the hour. watching bond markets and south korea as the yield curve is signaling the cycle will end in 2022 as others begin lifting rates. at goldman sachs, they expect the tightening to broaden out to the rest of asia as the region grapples with inflation, fiscal overreach, and political instability. >> food prices are likely to stay elevated in 2022, as disruptions to the global food
supply chain continue. one guest said inflation may not be transitory because of the labor crunch. let's discuss this with the ceo of an entity that provides analysis. good to see you face-to-face. the last time was beijing. >> yes, good to see you. >> so much has happened since the pandemic started and we saw the supply chain disruptions, food prices continuing to rally. what are the most vulnerable parts when it comes to the agricultural supply chain? >> what is interesting about the current price rally and why it is not transitory is that for the first time, every part of the supply chain is vulnerable. there he rarely do you have supply and demand shocks happening at the same time. this is the one time where we are facing demand shocks, demand for food growing at unprecedented rates, and supply
disruptions driven by labor shortages, as the cargo ceo indicated. supply disruptions due to events happening around the world that have reduced supply, and supply shocks driven by high natural gas prices and things like that, we essentially tariffs are being implemented in fertilizer is restricted, etc., so you have a series of events around the world. >> remembered the 2007 2008 food crisis? a lot of the issues were because of trade policies. during the pandemic, we saw it turn inward and more barriers being raised. how much is this a factor of what is happening right now and how much will it last? >> food security is national security. literally what you are seeing is country saying, i have to protect my people first, and
food comes before everything else. it is that level of inward looking-ness, but it is driven by fundamental shocks. 2007 to 2008, it was driven by oil prices and the overall commodities rally, as opposed to a fundamentally driven rally, and this time around, it is different because it is actually driven by real need. 2007 to 2008 was a broad market rally that also happen. >> you talked in the past about reaching to this tipping point in global food production. what are we seeing in terms of the structural changes in the output capacity around the world? >> we have not seen structural changes. that is the point i was making. it's not a question of whether the world can lead itself, but whether we have a system that can function appropriately for food to move from point a to
point b. you have to have people who are net calorie positive and countries that are net calorie negative, and those countries that need to import calories are not able to currently import them in sufficient quantities and at the right price. >> has the pandemic put more of a spotlight on these issues? will biz help bring about the changes needed, even before the pandemic? >> absolutely. the thing i say to everybody is last year, everybody became a food reporter. everybody wanted to know where food prices were going. i'm getting calls from customers, families, friends, asking me what i thought, and it did bring to light the inefficiencies and vulnerabilities in our system, and not just the health systems, but our food systems. whether we have the wherewithal to change it remains to be seen.
related to the climate crisis we are facing now? >> not enough. i would say the food angle in his around meat consumption and emissions, as opposed to resiliency of food supply chains, so less the carbon factor, but more whether the places where we are growing food will be resilient enough to change as the climate that would drive production in one way or the other and make it more vulnerable. what >> do you see as the greatest financing need now -- >> what d.c. is the greatest financing need now?
-- do you see is the greatest financing need now? >> data and knowledge. it can be a better mechanism transferring across entities, transferring risk on a long-term basis, right? if you look at the local market today in u.s. corn, if you can sell corn to storage, it is a miracle. if you put that into perspective and energy markets, and in oil reduces oil 10 years to 20 years forward, and we have a long way to go in terms of opening up the markets. >> we have seen so much diversions worsened by the pandemic. what is interesting is poverty, people came out of poverty more in the u.s. because of fiscal and other measures, but around the world, we saw millions plunged into the poverty lines. how do you tackle the problem of hunger and food production. is it a productivity issue or food production? >> it is also a distribution issue. how do you get it into the hands of those who needed, and who can do that? during the pandemic, the one negative is every country became each to its own, from pp, food supplies, etc., and so hunger committee is ultimately a political will issue. it is a global political will issue. today, we are not in a world where leaders are collaborating more. we are almost in a world where people are taking that, and i don't think we survived that. we need to come up with the new system to deal with it. >> definitely more fractures around the world. always great to talk to you, seeing you. >> we do have breaking news when it comes to the suspension of trading in hong kong for one entity. we have seen downside pressure for these chinese and hong kong-based builders, the off-balance-sheet debt and liquidity. we have seen more easing when it comes to bond issuance in that space over the past few days and weeks that has alleviated some concerns by traders, but were looking for news flow from country garden services, just announcing they are suspending trading in hong kong this morning. we will get you more details on that as they get to us. lots more to come. this is bloomberg. ♪ lots more to come. this is bloomberg. ♪
>> these years, we have seen resilience, tenacity, and sheer heroism. now we need governments, businesses, market participants, and citizens of every country to grapple not just with the challenges of voting back what we have lost, but building beyond the national and global economies we once had. we should build beyond what we had to ensure not just recovery, but greater resilience and higher quality, more inclusive, and more sustainable growth. and we should build beyond to harness more innovation, foster greater equity, and create more opportunity for all.
it gives me no pleasure to say that i fear we are not on the path to do that. covid-19 expose dangerous flaws and added fuel to what is de-integrating the global economy. it was a badly needed wake up call to changes already occurring in the world, but too few countries are responding with necessary structural reforms or cooperating to ensure a robust and resilient future global economy. indeed, some countries have made non-cooperation a central plank of their economic ellipses. the spirit of noncooperation is embedded in politics and the reaction to real economic disruptions. this is anchored in the real experiences of those left behind. the cause may be technology, trade, china, or a combination of these, but the effect is the
same. but the solution is to not up and an open economic system. while capitalism is in perfect, there is simply no better system for generating growth, opportunity, and prosperity, but it must be constantly upgraded to meet changing economic and societal circumstances. so we need to really learn the lessons of the past and rework policies to expand economic opportunity for our citizens. we must mitigate the erosion of the basic colors that are essential to a well-functioning economy. these are effective and trusted government, will-function markets, and international cooperation. today, all three of these pillars are being sorely tested. government is the foundation of well-functioning societies, but
in a recent survey of 28 countries, trust in government is down almost 10%. governments must build back trust by being more transparent, delivering opportunity by investing in people. they must also upgrade and enhance education and social programs, invest in infrastructure, and steward of the environment for future generations. building capital is essential. human capital if range -- differential -- differentiates one economy from the other, and bolsters economic resilience. physical capital is also essential. the world needs more, improved, and cleaner infrastructure built and financed by all major economies. more connectivity and more directions will be a net benefit to the world. we also need a second color to thrive -- pillar to drive,
wealth-functioning markets with good government policies to facilitate them. today, cross-border financial disruption is a major and growing risk. in 2008, the crisis in the u.s. financial markets disrupted the global economy. in 2005, and this year, disruption and china rippled through global markets. there are those in america trying to compare financial decoupling with china, but wholesale financial decoupling is impossible in partial decoupling is likely to make the u.s., china, and the world more susceptible to financial crises. it is crucial that we have provisions for the economies to coordinate. it is the only way to put out the next big fire, with global coordination. i can tell you from first-hand experience, it sure worked in 2018, particularly with china.
capital markets are a core element of a country's competitiveness. i know banks and asset managers are not popular, but the fact is that u.s. benefits by having its prominent, preeminent financial institutions operate in china, but on a level playing field. and i look forward to that. chinese capital markets will be safer when world-leading institutions bring best in class risk management, accounting, and governance. and then when the inevitable disruptions occur, u.s. regulators will have first-hand market knowledge, and if u.s. firms don't operate there, it will be difficult to maintain global leadership as the british, japanese, and global firms do. when they welcomed the best chinese companies to list on their exchanges, it will be
harder for new york to maintain -- remained the world's financial center. i recognize china's opaque accounting and murky governance rules need a lot of work, but the calls to resist cross-border capital flows are not just accounting standards and corporate governance. i think an honest assessment would have to admit that they are also about strategic competition, but competing strategically should not mean making it harder to compete economically. there lies the challenge of decoupling. just when government should be cooperating and ending the pandemic and rebooting growth, rancor and antagonism stand in the way. nowhere is this clearer than in the current state of u.s.-china economic relations.
some believe we should not do any business with china, that it is impossible to compete and collaborate at the same time, and that business is somehow unpatriotic unless it brings wholesale political change in its wake. this is a false choice. selective decoupling is essential to protect advanced technologies. no country should be overreliance on another for a critical product, but some of the de-integration has been counterproductive and more is coming. is it relief in america's interest to walk headlong down the path of a wholesale decoupling from china? i hardly think so. let's be clear. the rest of the world is not going there, so the u.s. alone would break global supply chains and cut off u.s. workers from some of the largest markets and fastest-growing markets in the future. and without cooperation and an
international system, there will be chaos. the biden-xi summit is an important step in the right direction, but let's not kid ourselves that was meeting will result the real tensions between our countries. we need much more certainty around how the u.s. and china will compete, where they will cooperate, and how they will manage conflict. otherwise, the world is headed for a very dangerous place. we should not dismiss what a failure to do so might mean for the world. great powers rarely desire to go to war, but history is replete with horrifying examples of how they stumbled into it, nonetheless, and so it is important that we act now to prevent strategic competition from turning into terrible conflicts. and this is not just a u.s.-china problem, every
country needs to do a better job facilitating the coordination and cooperation the world needs. there are important problems where the self interest of countries would be better served by working with one another. one is a case in point that has received a lot of attention, and opportunity and incentive to work together. china is ground zero for climate change, and its success in de-carbonizing could change the world outlook. china faces huge challenges increasing its energy efficiency and overcapacity, while it de-carbonizes industries, and despite announcing a massive
renewable energy project, china has resorted to financing: power during the recent shortages. it is essential it accelerates the investment in green technologies, and it should be done in a fair fashion with a level playing field. the threat of the climate challenge is so great -- >> hank paulson speaking at the bloomberg new economy forum, talking about the de-integration of the global economy being accelerated because of covid in the u.s.-china financial markets . he does not see a financial decoupling is possible. he is also talking about the u.s.-china split boosting risks, and mentioning we should not kid ourselves that one virtual summit president xi jinping and president biden, between those
two, it does not solve the ongoing problem. >> yes, still managing those expectations, the need for coordination, working together with the u.s. and china, any financial risks in china creates risks for the rest of the world. we will leave that there. if you are a subscriber, you can watch live on your bloomberg. we get to evergrande, planning to sell their entire stake in an entity, taking a loss of more than $1 billion. let's get the details from our editor. we are seeing that until today. this is the entire stake. how far does it go to help shore up finances? >> they said they will raise around $217 million for evergrande, sufficient to take care of that those coupons coming do that investors are
watching closely. evergrande sold a stake in another unit in september, so it is a small amount compared to the assets available. it is quite a hefty loss as well. >> have we now seen a bottom for china is the property selloff there? >> that is what all traders and investors are trying to establish, how bad will it get, and are we out of the words. the focus of the selloff is to relatively fragile. it is precarious. we have seen chinese dollar bonds decline the past couple of days. so even if we have not seen the worst, it will still be a volatile time ahead, even when we see china moving to take
these measures easing, they have focused on the ultra markets and opening up abs, interbank, and the question remains whether the matters onshore will be able to flow offshore and be able to ease conditions there for the many developers with eminent dollar bond maturities over january and december. >> that is our china credit editor there. we have a full lineup for day two here in singapore. hsbc, sharing their plans in the next hour. of course, a pack today of conversations around drug development, not to mention the global systems around the world and how they have been buckling under the strain of the pandemic, and what more can be done.
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