Bloomberg Surv Early Edition Full Show (11/17/2021)

[Music] economics finance politics this is bloomberg surveillance early edition of francine lacquer here in singapore now the focus of course is not only on inflation but it's inflation in the uk it's climbed faster than expected to the highest in a decade tightening a squeeze on living standards and of course that's one of the things that we're looking at living standards especially for households now that's also putting pressure on the bank of england to raise interest rates so let's have a look at what that means for the future and of course for boe moving let's bring in bloomberg's uk economy reporter lizzie burton lizzie good morning good afternoon for those of us watching from asia surely the boe has to hike rates in december after the cpi print exactly francine markets will be asking what more the bank of england needs to persuade it to go in december cpi came in at 4.2 in october that's above the economists expectations it's the third straight month that it's above the bank of england's 2 target it's the highest in 10 years and it's only expected to keep on rising already this week we've had the governor of the bank of england andrew bailey saying that he's very uneasy about the inflation picture in the uk he's explained that the reason he didn't vote for a november rate hike was he wanted to see how the jobs market fared post furlough we had the labour market data yesterday and if anything they strengthened the case for a december rate hike so the jobs numbers in december should rubber stamp this argument for a december rate hike and the fear now will be that worries about inflation mean price growth starts fueling itself so lizzy what's actually driving the price surge well natural gas and electricity prices rose last month after the regulator allowed suppliers to hike tariffs to offset the wholesale cost rise that's expected to happen again in april at the same time as a planned tax rise so unless the bank of england steps in soon this pressure on household finances could undermine the recovery lizzi thanks so much our lizzie burton there from bloomberg uk economy reporter now let's get more on pound calls i was just looking actually at sterling and what it was doing on my bloomberg terminal this is the power of the bloomberg terminal when you're outside you can have it at your fingertips wherever you are we're back with thanos from vacations global head of g10 foreign exchange strategy at bank of america so thank you so much thanos for joining us when you look at the pound i don't know whether there was a big bank of england mistake um with them talking up the rate increased chances and then not delivering and whether that puts more pressure actually for december i mean definitely given the latest inflation data we believe the bank of england has to hike in december but more importantly they have to get their communication straight i mean they've been confusing markets with all these back and forth clearly based on the data their policies are very loose so they have to move towards normalization they have to stop adding fuel to the fire in a way but it is important to also note that high flash in the uk has reasons that go beyond the control of the bank of england the energy prices where we believe we have not seen the worst yet labor market imbalances that is more the job of the government to address now the pound is somewhere in the middle if the bank of england indeed starts hiking the pound should be stronger but it is also affected by all these renewed brexit uncertainty the negotiations with the eu which has created a completely different driving theme for sterling but thanos so how much courage does the bank of england actually need to hike rates in december does it make a difference if they wait a couple of months i think most likely they will have to hike at this point i think if they are to wait given the latest data it will create even more uncertainty uh the fed is also likely to start preparing the markets for earlier hikes although next year not this year but in the case of the bank of england they've consistently been more balanced in their communication this year only recently they've created all this confusion with the back and forth but there's no clear evidence that they have to start moving better to start now and then see how things are going next year to what extent inflation some of the inflation might be transitory or not but if the weight there is a risk that they may need to move faster down the road and create even a more severe market shock thanos thank you so much thanos from vacations there of bank of america merrill lynch now we'll have plenty more of course from the bloomberg new economy forum here in singapore up next we speak to lynn forster the ross triad lady of the rothschild she is the founder of inclusive capital partners an investment manager that seeks to improve the esg performance amongst the companies it invests in so that conversation is up shortly this is bloomberg [Music] [Music] economics finance politics this is bloomberg surveillance early edition i'm francine lacroix here in singapore for the bloomberg new economy forum now we're joined by lynn forrester the ross chad lady of the ross child who is a founding and managing partner at inclusive capital partners now it's an investment manager for the 1.5 billion spring fund a fund that seeks to improve environmental and societal performance of course of its investments through governance well she joins me now thank you so much for joining us i'm happy to be here it's so exciting i remember actually having one of the first interviews on inclusive capital this was this must have been nine years ago now look at it and look at how much more we're talking about esg what do you need now to make sure that companies invest in the right way and don't just talk the talk yeah you're so right you're so right but remember nine years ago esg was not even a term it wasn't a thing at all and so sometimes i look at progress and i think oh my goodness there's too much virtue signaling there's too much green washing but then i think of the days when people didn't even think about inclusive capitalism and sustainability was something for the ngos so i feel right now post glasgow that we have a lot to be thankful for but that we also have a lot to do i mean glasgow was necessary but not sufficient to solve in the climate crisis one of the great things about this conference is climate is discussed from every single angle from what should businesses do what should governments do what should philanthropies do and it's going to take a coherent big effort to move no pun intended the oil tanker but are we going too slowly this is a i mean the problem is that we have done a lot right since nine years ago since 10 years ago but if we're going to hit that 1.5 targets we need a common language we need a price for carbon so what are you pushing for for some of the companies that you you know you're invested in yeah that's that's a great question and and as optimistic as i want to be about glasgow i mean we now know that if everything happens out of glasgow the experts are saying we're looking at a 2.4 so is 1.5 alive not without more work i believe the most important lever that can be put into place is a price on carbon that if a price on carbon is there why don't we have it yet it's insane it's politics and that's such a shame which is why i'm really calling on as many people of influence as possible to go to the senate right now in the senate the widened amendment is is being proposed which would put a 45 price on carbon and some might say that's not enough but it's a start he's one vote away all we need is one vote and that's senator manchin and a price on carbon can also be progressive because we should have a carbon dividend for working in middle class people because the the burden of this should go on the wealthy so instead of a wealth tax let's talk about a carbon tax yeah and i think that could be acceptable so then that's really interesting first of all you think that's acceptable because i know you did a fantastic panel where we also had you know the president of the aib i was saying look at the g lejeune in france when president macron tried to do you know a lot more do you think a tide has turned and actually taxing fuel and taxing some of the fossil fuels in general has just become much more mainstream i i think it's much more mainstream but the narrative has to be handled very carefully people have to first of all understand that they will get checks in the mail to make up for the increase in costs there will be increased costs but it should not be born by the by the working and middle class i think that's really important and then the narrative has to be that by doing this we are turbo charging the possibility for innovation we're we're going to pay for carbon capture at that point we're going to go into green hydrogen and blue hydrogen and biomass and all of those things that we might say it would be great for trillions of dollars to be invested in it but right now they're not economic so the market doesn't work that way it'll work that way somewhat and there'll be people who are willing to invest in wind and solar even though the returns are slight but the massive force of the capital markets cannot work unless there's a price level but you so you think actually let's get a price at any cost even if it's a lower price because at least we have something and then it readjusts yes i definitely believe that and that's what canada is doing 72 nations and the state of california new york they have prices on carbon and in 2007 john mccain probably proposed a cap and trade for america so this is this is trickled in but then it goes away and i mean i really call on president biden to be to do to do this boldness i mean one of the concerns you know for example if the infrastructure goes ahead the plan there's no difference between blue hydrogen or brown hydrogen like why are we not aggressive enough in the u.s about what can be achieved and actually you know in defining what's acceptable or not in 2021 well i i think part of it is the cost because for blue hydrogen or green hydrogen to remove well for blue hydrogen to remove the hydrocarbons costs a lot and green hydrogen takes a ton of energy so they're both too expensive which is why if if fossil fuels actually paid what they cost to the planet then you could have an alternative that is clean and i'm more convinced than ever that a price on carbon is the only way to to go if we're really serious if we're happy with 2.4 and we kind of want to wing it and see what happens i mean 2.4 is not good enough if any if there's anything below two degrees would that be acceptable is it something that you think would put us at least on a better path than we are now and i think the science says and paris did say below to we picked up 1.5 and i loved the british slogan one point keep 1.5 alive i thought that was great but i i don't think glasgow achieved that but i do feel like the even without a price on carbon which is the big solution there's enough pressure on companies to do something that that we're gonna we're gonna be better off okay but i don't know how much better always the optimist thank you so much lady lynn forrester the rothschild founding and managing partner of course inclusive capital partners now we'll have plenty more coming up from singapore and from the bloomberg new economy forum we'll hear from our conversation with david solomon we'll also be speaking to pimco's john siddinski the conversation here of course on u.s china relations we had a good conversation a robust conversation with david solomon also discussing whether he had any pressure from wall street or from washington pressuring wall street not to become bigger in china he says no so we'll discuss that we'll see what he's expecting as possible big shocks ahead for the markets this is bloomberg [Music] [Music] well it said it's well good morning everyone and welcome to bloomberg surveillance early edition i'm francine aqua here in singapore for the bloomberg new economy forum with some great market guests so we'll talk to of course some market participant we'll talk about inflation shortly now to the markets and european equities a little bit mixed this morning uk inflation actually rising to the highest level in a decade that's after us equities bolstered by robust economic data which may pressure the u.s central bank into action now we also heard from the federal reserve bank of st louis president james bullard saying that the central bank should speed up its reduction of monetary stimulus the inflation rate is quite high the core pce inflation rate the committee's favorite measure is about 3.6 that's the highest it's been in 30 years so i think uh it behooves the committee to attack in a more hawkish direction we could move faster we kept optionality on this that we could speed up the taper if it's appropriate well i'm very pleased to be joined here in singapore by the vice chairman and of course he's much more than the vice chairman also managing director of pimco john studianski what a treat john ceninski show up in singapore we both live in london but i get to speak to you here not in london so thank you so much for coming on well here we are in the garden of eden there you go a good conversation on inflation are we underestimating the potency of inflation to be sticky and remain for longer well we're no longer using the word transitory but i think we've that's been put to rest i think in the last couple of days um inflation's going to be elevated remain elevated for the foreseeable future how long that is we don't know but you know it could be a couple of years i know but this is a nightmare for central bank so if it's not transitory at some point they were trying to figure out you know transitory could mean actually six months eight months even a little bit longer do you think they'll have to act sooner than they want to um well certainly there are at least 10 or 12 central banks around the world that probably are watching this much more closely um if you look at the fed's nuances from their last minutes probably suggest that they're going to raise rates certainly twice in 2022 but maybe maybe it'll be earlier i mean there are some people talking about higher inflation than what we've seen in the last quarter in the next quarter in the united states so we'll have to wait and see you saw the inflation data coming out earlier today for the uk i think that probably means that's going to rattle andrew bailey's cage a bit at the bank of england and maybe he's going to have to look again in december about about the rate decision i mean what does it mean for a fixed income in general are we going to see a big repricing or has a lot of this stuff already been priced in especially after you know the bank of england disappointed a lot of the markets last month i think market sevilla pretty much priced in a lot of these i think it's what's really going to be interesting is to see you know where this is uncharted waters we've got a lot of things francine and you're hearing this discussion at this conference about the whole question of inflation and the variables affecting inflation we're talking about a lot of investment in green we're talking about deglobalization we're talking about supply chains with china being disrupted and how that affects prices elsewhere in the world and of course we look out the window here in singapore and we see a lot of ships in the harbor very few are queuing there than in los angeles or in shanghai but it's a big issue do you still expect a lot of these you know energy shocks to go elsewhere so these supply chain issues to remain for us with us for longer and what does that mean for the economy going forward well you've got an overlay now on energy shocks certainly in europe um you have mr putin and the whole issue with with poland and belarus and he's going to use his his uh his role as sort of the key czar of europe's energy security to play a you know he's going to he has a big seat at the table and that's going to affect a lot of uncertainty on energy pricing certainly in europe what do you worry about the most john i know you speak to you know all chief executives many people from many walks of life you're also an expert on china are we misreading the u.s china tensions and how they could develop going forward i think the most important thing about the dynamic on china is america has a strong view about china and there's a strong domestic voice about issues it has with china china has a view about america and it's a strong chinese voice in america in china about america um i think they need to both take a little more time to better understand each other there's there's some disconnects right now i think biden is trying to engage more but there's still some disconnects where are the main disconnects and actually what can be done so if you have a disconnect at the government level does it still mean that companies work with each other on a corporate level so on a private level between us and china for example on green technology and things like that well china has been very much ahead of the curve as we all know on green technology i mean 77 percent a lot of the world's batteries particularly relating to green applications are manufactured in china so i think there's probably if i had to wave my arms and say what would i really like to see i'd like to see more integration between chinese and american manufacturers relating to solving green energy problems because each one of them has certain segments of products and services if they were more integrated and more collaborative i think you would accelerate the way that some of these solutions were actually achieved and i think that's we're beginning to see that dialogue here i think you're going to see more of that in the next six to 12 months so this is not like a supremacy this is not a battle for ultimate supremacy that we're seeing between two countries well i think there is a lot you know we talk about the industrial revolution and what happened in europe in america in the industrial revolution um one percent inspiration 99 perspiration the green revolution is going to take decades to really come into full swing i think we've been spoiled by the fact that covet being the first sustainability shock we had a vaccine in 12 to 15 months we had and we had a number of vaccines we now think that we're going to come up with really credible technologies efficiently expeditiously for climate we are but it's going to take years and we just have to pace this over the next 5 10 15 20 years and the transition from brown to green is serious but it has to be done as a transition and not absolutely cutting off one and embracing the other particularly if the second one isn't really well developed what are you most concerned about that we're underestimating so i don't you know we talk about inflation we talk about the energy costs we talk about geopolitics and i know it's very difficult to to predict a black swan event but what's on your mind that we should talk a lot more about i think we probably are under playing the role that the digital revolution is going to have on human behavior and whether it's artificial intelligence and medicine whether it's decision making in the investment field how that's going to have an impact on the world i think it's artificial intelligence virtual reality it's going to change a lot in the next two to three years probably more than we realize and it's also going to have a big impact on education don thanks so much as always for a little bit of your time john studenski there vice chairman and managing director of pimco joining us from singapore at the bloomberg new economy farm now coming up in the next four days well in the next four days we understand joe biden will confirm the next fed chair between incumbent jay powell and leo brainard up next we're joined by economist randy krosner this is bloomberg [Music] [Music] economics finance politics this is bloomberg surveillance early edition i'm francine lacua here in singapore now we talk about the markets we talk about the fed we understand joe biden will announce his fed chair nominee in the next four days the top job will go to either current chair jay powell or fed governor lil braynard while senate banking committee chairman sherrod brown said he has no doubt that the senate would confirm either candidate now the first step in the confirmation process would be actually approval from the banking committee so joining us now to talk about all of this is randy krosner no one knows the institution better he's a former federal reserve governor and deputy dean for executive programs at the booth school of business university of chicago based in london randy always a pleasure i can't believe we're so fell apart always a pleasure to speak to you first of all does it really matter to the markets leo brainard or jay powell how much would they differ in terms of dovishness i think in terms of monetary policy there's a lot of similarity between them i think they've been pretty much aligned probably lail would be a little bit slower to to raise rates but only a slight difference i think they'd be very similar in terms of policy so renu how do you how are you thinking of this actually i don't know whether you know it's almost a given that president biden will choose a democrat why would he not why would he not choose a woman or do you think it's all to play well it's very clear that janet yellen who i think is a very important voice in in this decision is very supportive of of jay they worked very closely together i think jay is really pursuing the same kinds of policies that that janet had had pursued so i think it's it's a real debate um uh within the administration should they go for lail or should they go for for jay it's not really in terms of policy because they're very similar in policy at least for monetary policy some of the other areas like crypto and regulation there are some big differences yeah yeah so so what do you so let's say we have leo brainard actually as a new fed chair what will she most make a difference in so crypto but also maybe banking yeah so i think it's it's very clear that she has a different view than than jay and randy quarles the current vice chair for uh for regulation of banking and financial regulation she dissented i think more than 20 times on a variety of of the the votes that the federal reserve board had on regulation uh always wanted to preserve tougher regulations so my guess is she'd be tougher on uh on on banks than uh than they they have not that they have been light on banks but i think she'd want to go she'd want to be more aggressive also i think there's a big difference on crypto jay has said he's still trying to decide which way he wants to go layla said full steam ahead we've got to have a central bank digital currency now randy when it comes to banking regulation what kind of support would actually you know a possible chair brainerd gets and you know what do you think would be the easiest thing to change if she were to take over well i think one of the things that she has been vocal about in the past and the fed did not do uh were these so-called counter-cyclical capital requirements so that during good times like you know as the economy is coming back fairly strongly now to get banks to to hold a little bit more uh more capital so that if times turn turn not so good you can draw on that and that was something that she had pushed for the the fed didn't do it and i think that's something that probably would happen uh if she were either the vice chair for uh for regulation or certainly the chair randy what's your take on inflation inflation you know doesn't look like it's transitory but it could be with us only for about 12 to 18 months is that transitory are you know central banks fine to wait are they doing the right call we're starting to split hairs over exactly what transitory means versus other sorts of things so i think we do need to put uh transitory into the dustbin of history although they they kept in the statement i thought surely they would uh would move beyond that um transitory is uh i mean i think short term is better um because i think we're looking at at least six months to a year of much higher uh much higher rates and uh part of that is a bounce back from uh the depths of lockdown a little bit more in the year ago part of it is just pent up demand coming in and interacting with the uh with supply chain supply chain issues but the key question is will this short-term issue turn into a longer-term issue will inflation expectations start to move up and that's a big question mark because we don't really understand the inflation expectations process that well yeah why don't we i was going to ask you why is it so difficult actually to read inflation we have you know we should have the brightest minds and the brightest economies to tell us or at least model something that could come close to what we should be seeing well we i think we certainly do but the question is if you don't have the data doesn't matter how smart you are it's very hard to understand exactly uh what's going to happen and so we haven't been in a position like this before remember we've had very low inflation for more than two decades really no threat of of high inflation and the fed has been undershooting as two percent target ever since it uh articulated it almost uh almost a decade ago now we're you know four percent five percent uh inflation this is happening not only in the us but uh but globally and we haven't done enough in terms of research to really look at the behavioral aspects what do people think about inflation how much are they paying attention to the fed's new framework what causes them to unanchor their expectations or anchor their expectations when you're in in asia right now we have you know a lot of questions about what happened in japan why can't japan get to two percent inflation expectations have stayed low despite incredible work by uh by kurodasan uh as the head of the central bank you know building the central bank's balance sheet to more than 100 of gdp and still going further and they haven't been able to be successful we need to do more research on that so yeah we do randy what's the biggest policy mistake right now given the parameters that we have at our disposal which as you say we we need to study a couple of things more but is it a mistake to you know take it slow or would a mistake be to have to raise rates now and then take them back down in 18 months well i i think sort of some sort of shock now would not be would not make sense because we still have a lot of uncertainty about the virus i mean we don't know what's going to happen this winter hopefully we will not see a resurgence of of the virus but there's still uncertainty around that so i wouldn't want to go too quickly to claim that you know we have complete victory over the uh over the virus that hopefully will come by early next year and then i think we can start to move a little bit more expeditiously but even though you know the supply chain shocks are outside of the fed's fed's remit they can't do anything about producing more chips but they need to be mindful that the supply chain shocks that are causing prices to go higher could change expectations so i think they may need to move a little more rapidly starting in the end of the first quarter next year randy thanks so much randy krosner there former federal reserve governor and deputy dean of course in london at the boot school of business university of chicago now we'll have plenty more of course from singapore and from the bloomberg new economy forum coming up we hear more from my panel the goldman sachs chief executive david solomon that's coming up shortly and this is bloomberg [Music] i think that we're turning the economic environment back on but because of this crisis we've had a massive amount of monetary and fiscal policy all over the world that's that's having an impact it's having an impact on asset prices it's having an impact on inflation as um as you mentioned i i think markets generally um when i step back and i think about my 40 year career there have been periods of time when greed has far outpaced fear we were in one of those periods of time and generally speaking my experience says that you know those periods are not long-lived something will rebalance it and bring a little bit more perspective certainly given that it feels like inflation's rubbing above trend chances are interest rates will move up and if interest rates move up that and of itself will take some of the exuberance out of certain markets but are you expecting some kind of taper tantrum from the markets you know i'm not a good predictor um i i've never thought of myself as a good predictor but i i certainly i certainly feel like the market anticipates higher rates um at this point in time the question is how much how quickly i i don't think there's a chance that central banks can unwind this massive stimulus in a way that doesn't create some sort of a taper tantrum or some sort of a you know real shock to markets but there's also a chance it can't be done that way and you know i i do think that people you know it's been a long time since we operate in an environment where the general trend on interest rates has been higher and the general trend on inflation has been above trend i got out of school in the early 1980s and generally we've had the opposite you know for that 35 plus plus years and so you know i do think people don't remember when paul volcker raised interest rates by 300 basis points on a sunday afternoon so there are a lot of factors that will go into you know how this process plays out it's unclear but i certainly think that that thoughtful market participants are thinking about it my conversations with big institutions they're thinking about it and they're trying to balance the need to participate and have relative performance based on participation and what happens as we unwind some of this and we rebalance a little bit so are you telling me that you're worried that you know markets are too cool about it just because they've made money for the last 10 years well i i i do think that you know generally speaking um everyone feels quite smart right now because most of the things that you invest in are going up um that's not the way it normally works so i you know again i'm not i'm not a great predictor but my experience tells me this is a moment in time that's probably not a sustainable moment in time but then it would be what an economic shock so away from an inflation monetary policy what could it be it could be a change in the perspective of the course of economic activity um it could be some sort of a geopolitical shock it could be that something goes wrong with respect to our emergence from the pandemic and we have a different set of events that change the perspective but all this is based on kind of confidence in a forward view and you know i would say at the moment the forward view is quite optimistic um if it stays optimistic and central bankers you know handle the withdrawal in an appropriate way with the right communication there's a chance we can do it you know in a balanced way there's a chance something could go wrong got to be prepared for both how do you prepare actually for both well you prepare by you know thinking about if the world looked differently you know how would it affect different assets and um you know how would you how would you feel if if if things were worthless worth not worthless but worth less and uh and so in um so in that context you know we do we do a lot of we talk to our clients a lot about different scenarios and you know we think a lot about our own balance sheet and you know our own propensity for risk um as we try to navigate those things talk to me a little bit about china so you you're optimistic longer term in china do you ever get any pressure from washington to grow less fast in china we are um we're very committed to building our business in china but in the context of the fact that goldman sachs operates you know globally all over the world and we serve governments and institutions uh and corporations all over the world and given the importance that china the important position that china plays economically in the world you really can't beat goldman sachs without without participating in that i i wouldn't say there's direct pressure on us to change our long-term plans to grow our business in china is it possible at some point in time something goes on geopolitically between the u.s and china because we're a u.s company there's either pressure or directive for us to do certain things differently sure that it's a possibility but we think about this with a 10 20 30 year perspective not with uh you know next couple year perspective and so we're long-term committed uh to continuing to serve our clients by having the resources and the capabilities in china that allow our clients globally you know to participate in markets well that was goldman sachs chief executive david solomon speaking to me a little bit earlier here at the new economy forum we went also on to talk about the license his license in china and some of the pitfalls out there now stay tuned to singapore we'll have more interviews tomorrow including our guests the chief executives of hsbc buyer and muay hennessy it's interesting to have all of these different players and newsmakers from all walks of life to really try and understand some of the supply chain issues some of the energy shocks how they affect their business bloomberg surveillance early edition continues in the next hour this is bloomberg i think what the data are telling us is that after the delta variant setback the economy's getting back on track i think there are a lot of uncertainties across different axes of the market debate the market's underestimating the extent of fiscal drag that's that we're going to face next year this is bloomberg surveillance early edition with anna edwards matt miller and kaylee lines it is 10 a.m in london 5 a.m in new york and 6 p.m in hong kong on this wednesday november the 17th our top stories today who will be the next chair of the federal reserve president biden narrows the field to just two contenders and says we'll learn his choice in a few days the bloomberg new economy forum kicks off in singapore with some of the biggest names in finance and politics there's one overarching question what does a workable relationship between the us and china really look like and pressure builds on the bank of england inflation in the uk rose faster than expected to the highest level in a decade investors wait to see if the central bank raises interest rates i'm anna edwards with tom mckenzie here in london matt miller with us in new york hayley lyons is off this week and matt we have a few days then perhaps to wait to hear who's going to lead the fed in the meantime plenty of big voices in finance talking to us from singapore through the asia session that's right and on bloomberg television yesterday we had the most dovish and the most hawkish members of the fed talking to us neil kashkari and jim bullard so we got kind of bookends there let's take a look at what's going on in asia speaking of singapore we have the msci asia pacific index down half a percent right now there are real concerns about exports in a second i'm going to show you something out of japan but uh here is the benchmark uh in tokyo the nikkei 225 down four tenths of one percent um the cost be moving down even further i noticed real volatility over the past couple of days in the cosby so big moves away from um it's uh uh it's average over the past 30 days over the last three or four trading sessions here's the um us dollar japanese yen little changed right now but as you can see we're getting closer and closer to 115 so this is i think a four year low here for the yen and it could get even cheaper that's not bad news for the japanese if you look at the exports out of japan they have drastically slowed or at least export growth has drastically slowed and this is one of the issues that's been weighing on asian stocks they have real supply constraints and that is holding back the amount of stuff they can sell actually in that case maybe a cheaper currency doesn't even really help because the problem is actually getting it made and on a boat and out of the port by the way take a look at u.s stocks right now or at least u.s futures also down but really little changed on uh well not having those concerns the concerns for the u.s market would be rising interest rates because of rising inflation a lot of people were listening to james board yesterday but of course he is the most hawkish member of the fed so that's obviously going to be his point the u.s 10-year yield right now down a little bit as investors buy that debt 163-19 so we've seen it rise uh really substantially over the past few sessions speaking of substantial gains gold right now up half a percent and it's really on a march to 1900 1859 a troy ounce bitcoin going the other direction down to 59 062. tom what are you saying yeah matt of course we've referenced the red debate around inflation in the u.s we have inflationary data out of europe as well for the eurozone so harmonized october data month on month it was in line with the estimates 0.8 was the increase year on year just slightly softer 2 percent versus 2.1 percent we know that christine lagarde the ecb has suggested there is no chance of a rate hike next year 2022 but the when you unpack this data the questions will be of course to what extent energy prices will remain elevated and whether that sustains these prices going forward towards the end of the year and then into 2022 let's check in on how the markets are digesting this we had inflation data out of the uk as well at a 10 year high 4.2 well above the estimates it is putting into play very much now the idea that the bank of england will raise rates in december there's the consensus conforming around that view now in the ftse 100 seeing losses are close to four tenths of a percent it's flat in france on the cat gohan gains of two tenths of a percent close to two tenths on the dax over in germany and the footsie mid in italy is up by close to two tenths of a percent as well losses over in spain of two tenths so a divergent picture across the map here in europe as investors weigh up this inflationary data let's have a look at some of the cross access that you're talking about gold again heading towards that 1900 level as you mentioned matt there is that support for the elo metal that is a view from some gains of 5 10 as you noted across the benchmark gains of a 10 continue to build on these record highs in europe the pound is in focus on the back of the inflationary data it popped earlier in the session it's currently a little softer at 134 and crude as well lower below 80 a barrel on reports that maybe you're going to get a coordinated effort between the us and china on releasing reserves pressure in the oil space down one percent let me talk to you about another inflation theme or fights against inflation what you do and don't do in that situation then tom but with the turkish situation in mind because we're getting some lines just in the last few minutes from the turkish uh uh president recep tayyip erdogan he's vowing to fight against interest rates he says he won't allow people turkish people to be crushed under interest rates i guess you might file this under things you already knew as well because we have known for some time that the turkish president has not been a fan of fighting uh fight uh of using interest rates to fight inflation and hence we've seen a substantial movement in recent years on the turkish currency it is currently 10.4 to the dollar just five years or so ago i think it was around three so a substantial movement in recent years now let's take a look at some of the other things we're watching out for today the eu will unveil its strategy for more than 46 billion euros in technology and infrastructure spending this is a key part of the west's response to china's belt and road programme follows on from of course that meeting between the us and chinese leadership the sec chair gary gensler and fed presidents from new york and san francisco will speak at the u.s treasury market annual conference i wonder if crypto will get a mention it's certainly been mentioned in singapore at our conference there now the uk prime minister boris johnson faces a grilling from the commons liaison committee a senior panel of all of of all the select committee chairs so essentially some fairly powerful people from different parties across westminster and the recent scandals in the uk around the behavior of mps will be in focus and we will get more from u.s data including housing starts and mba mortgage applications of course it was matt some strong data that allowed further risk rallies in the u.s yesterday that retail sales number better than had been expected yeah absolutely americans seem to be flush with cash and are spending it when they can find stuff to buy now president biden is still deciding whether to reappoint fed chair jerome powell or replace him with fed governor lyle brainard the president says to expect an announcement within about four days st louis fed president james blair told bloomberg yesterday he expects continuity amid the leadership reshuffle no matter how this comes out there'd be a lot of continuity in fed policy both of these players have you know long track records at the fed so certainly it's a big committee also i think people have to keep that in mind and there's a lot of experience on the committee so i think we'd see uh continuity anne-marie horton joins us from washington d.c and emery i guess you know depending on your perspective four days is about as imminent as four hours right yeah we went from imminent to a bit of indecisiveness from the white house given the fact that the president has yet to even make a decision but we do know that it is between these two contenders it is certainly going to be either a reappointment of current chair jay powell or governor brainard is going to get a more elevated position at the fed and what we do know is that there are also some senators now looking to have some meetings with these two individuals especially with the current chair jay powell he'll be meeting with senator joe manchin remember this is the senator who in august sent the chair a letter talking about his concerns of higher inflation and really monetary policy there everyone says there's going to be this continuation regardless of who gets this top spot but whoever does get it that is going to be the issue they have to deal with and that's going to be inflation that has made this decision a little bit more dramatic those october cpi numbers yeah absolutely marie it's interesting to think about what uh what difference who leads the fed would make but then also what political messaging might be behind the decision as to who leads the fed and what are you hearing about the way that the white house is weighing up the the politics of this because inflation not just a monetary policy issue right now but really at the front and center for politic for politicians well neither chair powell or governor brainard have been in their roles where they've had to deal with high inflation governor brainard has been in the role from 2014 and we've had inflation average 1.4 percent nothing with a six percent handle so we don't really know how either of them will really have spoken about inflation because they haven't dealt with it when you look at the politics behind it though she clearly has a little bit more support with the progressives in the party senator elizabeth warren has not come out and supported her outright but she has called jerome powell a dangerous man there's also senator sheldon whitehouse of rhode island who if it was going to be jay powell he wants to hear him take a little bit more of a tougher stance on climate change there are issues that they diverge a little bit on and this could be banking regulation climate change cryptocurrencies whether or not there's going to be a central bank crypto but when it comes to monetary policy these two individuals are in lockstep okay bloomberg's anne marie holden thank you very much indeed in washington on the politics of that fed leadership decision okay now to singapore where the fourth annual bloomberg new economy forum is underway china's growing role on the world stage climate change and economic questions from inflation to crypto currencies have been the focus bloomberg's francine laguar has spoken to a variety of guests on supply chains we need to think about brazilians we need to think about inventory right now every cfo in the world is out telling their suppliers you need to have more inventory the underlying trend pre-pandemic and certainly to accelerate is that the principal powers in the system the united states the european union and china really do want to nationalize supply chains do near-shoring industrial policy all the indications uh we have is that it will flow right through into beyond the middle of next year we're a nation way down in the pacific we rely on supply chains for everything that we bring in and anything we sell there's no easy option for us for so long in our supply chain the mantra has been just in time and now we realize the vulnerabilities of just in time we need to move to just in case bloopers franklin laguard is on the ground at the event for us in singapore so some voices there on the needs to shore up the supply chain hi francine what else has really stood out to you from the conversations that you've had with corporate and world leaders uh just in the first stages of this conference yeah i have to say dom first of all it's a lot about jet lag i mean a lot of these executives it's the first time they travel in about two years i just had this conversation with the goldman sachs chief executive he says he hasn't been in asia since early 2020 and so he was excited to be here he did tell me that he wasn't going to be in hong kong like jamie dimon was just because of the quarantine rules but you know a lot of people it's the first time that they've been here in the country for a long time in the region for a time and it's a time for them to talk to each other so the focus is definitely on inflation i hear a lot of inflation what does that mean for your business what does it mean if interest rates rise on financing and of course supply chain but the bigger question is also china china's role in the world china's role in climate change and of course matt you know china's role in uh some of these supply chains especially if they continue with the zero covert policy and well uh speaking of chains and you mentioned jamie dimon i wonder what you're hearing about crypto because you know we we saw this incredible rally in bitcoin to almost 70 000 and now it's back down with the 50 handle yeah so if you speak to a lot of the big banking executives uh you know a bit more mainstream than maybe some of the cooler ai guys for the moment they say look crypto's not something i want to be invested in for my bank we know though matt that of course they're still looking at ways to not disappointing um some of their clients that want to be exposed to it and then you speak to you know the younger guys that have come here and actually want to push crypto forward and they're worried about regulations i think it's all about regulation in the next couple of weeks a month that's what the talk is here and then of course market correction i asked that to david solomon i said look given we haven't been able to lose money in the last 10 years what does it mean when we have a price readjustment because of monetary policy and he laughed and says it's true that in his career he's seen moments of greed usually followed by some kind of setback and in the moment he calls it a moment of greed just because it was very difficult to lose money or not very easy to make money is the way he put it i put it the other way anna francine thank you very much francine laguard in singapore our coverage of bloomberg's new economy forum of course continues and we'll be speaking it to the prime minister of singapore at around 7am new york time now here in the uk inflation has surged to the highest in a decade this puts increased pressure on the bank of england to raise interest rates let's get more with bloomberg's uk economy reporter lizzie burden and lizzie the bank of england then looking at this data there'd been a lot of expectation that we were going to see a hike in november the market was wrong-footed there now all of that expectation heaped on set on december yeah markets are going to be asking what more the bank of england needs to persuade it to hike in december inflation cpi came in at 4.2 so that's above economists expectations it's also the third month that it's above the bank of england's 2 target it's a 10-year high in the uk and it's expected to keep on rising already this week we've heard from the governor of the bank of england andrew bailey saying he's very uneasy about this inflation picture in the uk he said the reason he didn't vote to hike in november was because he wanted to see how the jobs market's doing well the labor market data that we got yesterday added to the picture to this argument for a december rate hike and so the question now is whether fears about inflation will mean that price growth starts fueling itself uh lizzie we saw that jump in gas prices again yesterday on the back of the news around nordstrom 2 and the hold up in terms of certification for that how central are those energy prices to what's driving up inflation more broadly across the uk barry you had a bigger than expected rise in hotel and restaurant costs but it all really comes back to energy wholesale natural gas and electricity prices rose last month after the regulator allowed suppliers to hike tariffs because of offsetting these wholesale costs that's expected to happen again in april at the same time as a planned tax rise so unless the bank of england steps in soon this squeeze on household incomes could undermine the recovery all right lizzie thanks very much lizzy burden there bloomberg's uk economy reporter let's take a look now some of the stocks moving in the pre-market here in the united states of america lucid group is rising and lucid is now worth more than ford and gm this incredible ev rally that seems to have been sparked by the rivian ipo has really made lucid a leader every day when i look at the pre-market movers most space u4 is the way i do that lucid seems to be right up at the top this week so now it continues to gain seven percent in the pre-market visa on the other hand is going down the payments network getting hit pretty hard by an announcement uh from amazon they will no longer be accepting uk issued visa credit cards in fact they told consumers in the uk that they would get a 20 pound uh gift receipt or uh 20 pound gift certificate if they would switch to any other kind of card including a visa debit card and then what i really think is interesting is qualcomm they had an investment day yesterday investor day yesterday they were very bullish saying they could reach 46 billion dollars in sales by 2024. a huge piece of that is augmented reality goggles i guess you would call them qualcomm says that business could become as big or bigger than the phone business which i struggle to understand but i'm getting a lot older maybe the kids love it anna maybe the kids love those guys yes very meta i'm sure now coming up on this program ec the ecb warns of market exuberance we will speak to blackrock's elga batch about that subject that conversation coming up shortly this is bloomberg [Music] this is bloomberg surveillance early edition i'm anna edwards with tom mckenzie in london matt miller with us in new york kaylee lyons is off this week and tom i'm certainly watching gas prices this week just in yesterday's session we saw european gas prices in the eurozone and also in the uk jumping by 17 today another day of moves to the upside up by more than six percent on both of those measures so we are seeing some moves to the upside given our concerns around inflation that's certainly something we need to watch on the flip side of the energy story then oil prices wti now down more than one point one point two percent is close to the losses you're seeing in today's session below that eighty dollars a barrel for wti uh brent is in similar territory as well reports that the us and china may be talking about some kind of coordinated effort to release reserves we'll see what happens but certainly pressure on the oil space okay yeah certainly pressure on the oil sprays and uh matt then just as we approach the us session what catches your eye apart from the rise and rise of electric vehicles well actually uh the rise in gold has caught my eye this morning for sure but also the continued drop in bitcoin so we saw you know bitcoin approaching 70 000 apiece and um now it's at 59 000 a drop of just about 10 grand in a couple of weeks right now down two and a half percent we do see the 10-year yield creeping higher um right now it's coming down a little bit but it has crept higher since 24 hours ago this time yesterday 162 67 right now s p futures are doing a whole lot of nothing right now at 46.94 so we don't expect to see a lot of direction at the open but you do see a little bit of a gain in europe the stock 600 right now in terms of the pre-market movers i've been talking about some of these stocks you mentioned the evs right lucid is now bigger than ford and gm it's up six and a half percent in the pre-market at 59 and this has really been sparked by rivian so check out riv and on your terminal if you want when their ipo hit it started driving loose it up lcid the ceo peter rollinson said he thinks they will be able to produce 20 000 vehicles next year and that was uh in doubt in jeopardy because of the chip and uh chip shortage and and really the supply chain crunch visa down now one and a half percent this is more of a uk specific issue but amazon says it won't accept visa credit cards anymore because of the high fees now this could be the beginning of a war between all credit card issuers and amazon they will give users who don't use a visa credit card to enter a different form of payment a 20 pound gift certificate so you may think about that anna and tom and then qualcomm right now it is down but it jumped yesterday in the live trade after they gave a very bullish outlook and said they could reach 46 billion dollars in sales in 2024 three and a half billion dollars in sales to the auto industry alone and that ar augmented reality goggles could become a bigger business than the phone business for them so really interesting stuff from qualcomm anna yeah a host of movies then pre-market let's think about whether we're seeing exuberance in any of these markets then matt because the ecb has issued a warning about just that talking about pockets of exuberance in its financial stability review the central bank warned that stretched prices in the credit asset and housing markets pose a threat to euro area stability elgabat blackrock head of macro research joins us now on set here in london a real pleasure to see you on set this morning with us then elga let me ask you do you see pockets of exuberance that's the wording that the ecb is using this morning do you see any of those pockets at the macro level we don't see pockets of exuberance no in fact we remain pro risk and in particular like equities at this stage if anything a concern is the decline in liquidity in government bond markets and with the difficult decisions that central banks are facing in the light of the spike in commodity prices that's really where the concern is and that would be an area government bonds that we would be underweight now scenario you're underweight but thinking about your equity exposure then elga how does the inflation concern play into that you think that actually with rising inflation is a good place to be in equities rather than being in bonds or do you have concerns that further down the track the inflation numbers start to eat into the sort of economic recovery stories that we've seen globally um not yet and in fact we do like equities as a place to hide from inflation so to speak not in the least because companies are still having a lot of pricing power to pass on the cost pressures that they're facing and we do think that central banks even though at some point they might react to the rise in inflation expectations in particular they will do so in a much more muted fashion than they have done in the past and with real interest rates staying low uh risk assets are well supported how much risk do you want to be taking along that spectrum of risk assets within the equity space do you like small caps at this stage how much discrimination do you have to impose on that decision given the pressures that anas has been discussing yeah so we have a differentiated approach and we do like to seek cyclical exposure where we think it's still attractive one place would be europe another place would be u.s small caps so there's definitely sort of some differentiation in the view you're also positive on on china uh china china equities but also trying to credit what underscores that view given the list of concerns emanating out of mainland china so the main reason is really that a lot of the bad news on policy tightening along a number of different dimensions is now behind us and we're that we are seeing already on the ground some signs of an easing especially in the property side matt yeah i was wondering we all sort of learn in econ 101 that inflation is a it can be a tax in a sense on the poor do you apologize i think that's an oil i think that i'm sorry mata i don't think that elga can hear you so i'll just i'll try and jump in with what i think you were about to ask matt was talking about how you learn in economics 101 about how the inflation the burden of higher inflation falls on lower income groups is that something that you're expecting clearly this is getting the attention of politicians in various parts of the world is this something that you're going to focus on that's going to be a focus do we think politicians getting involved in this inflation debate yeah i think i think it's starting to be a real political issue especially in the u.s but i do think that based on some preliminary academic work that i have seen that it's not the usual type of inflation that primarily weighs on low income households and that's exac has to do with the fact on where we see most of the price increases which is in goods prices in particular and to some extent in services it's the energy and the food price inflation that gets everyone but again these inflation pressures at the moment are driven by this very unusual restart by the imbalances on the supply side of the economy which we expect to resolve over time uh in the course of next year and how does that translate into a european context then you mentioned in the in the united states what about in europe where maybe the inflation pressure is a little more muted but would you still expect it to have that same impact on different sort of economic groups yes so it is uh i think similar in terms of the drivers but the magnitude is very different and the long-term or medium-term inflation outlook is different the federal reserve expects after the current bout in inflation uh inflation to settle near its uh price stability objective the ecb cannot say the same thing most likely inflation will ease back below two percent and that means that the ecb's work isn't done yet i think we found matt's mic so let's try again well hey elga you know as we all wait for the white house to confirm its choice i wonder if you think someone like lail brainard can do more to address these issues than jerome powell is right now because it seems like that's what they want they they want to find a more woke chair for senator warren at the end of the day we need to recognize that all central bank decisions are taken by committee and it makes um more of a difference of sort of in terms of communication who fronts the exercise but i do think that at the end of the day it's a decision that is very much driven by the composition of the committee and the views that a committee takes and therefore we need to acknowledge that in particular at the federal reserve we have a large number of open seats and that means that we could potentially face quite a material change in the fomc as views in coming months uh going well beyond uh the appointment of the chair what do you think i mean when you were uh studying at keel in between sailing trips what did you learn about fighting inflation or when you're um operating as a member of the shadow council for the ecb what do you think about fighting inflation in an age where it's caused by supply constraints it seems so difficult to do with monetary policy indeed and i do think that central banks are going to face uh a much more difficult uh period going forward potentially for an extended period of time because over the last three decades we had primarily demand shocks that monetary policy is very well positioned to address going forward we might actually run into a larger number of supply side shocks which monetary policy can do very little about and faces very unpleasant trade-offs that's really where fiscal policy and other economic policies that help to unclog those bottlenecks are required okay thank you very much thanks for spending time with us here on set in london el gabash from blackrock coming up on this program the ceo of goldman sachs says market greed is now outpacing fear part of our interview with david solomon from the bloomberg new economy forum in singapore that's next this is bloomberg [Music] this is bloomberg surveillance early edition you're looking live at the principal room coming up later today from the new economy forum hsbc's ceo noel quinn this is bloomberg [Music] this is bloomberg surveillance early edition i'm tom mckenzie alongside anna edwards here in london matt miller in new york okay let's get back to singapore then where the fourth annual bloomberg new economy forum has begun goldman sachs ceo david solomon warned about the potential rocky times ahead for markets as the economy recovers from the pandemic solomon spoke with bloomberg's francine lacroix i think that we're turning the economic environment back on but because of this crisis we've had a massive amount of monetary and fiscal policy all over the world that's that's having an impact it's having an impact on asset prices it's having an impact on inflation as um as you mentioned i i think markets generally when i step back and i think about my 40-year career there have been periods of time when greed has far outpaced fear we were in one of those periods of time and generally speaking my experience says that you know those periods are not long-lived something will rebalance it and bring a little bit more perspective certainly given that it feels like inflation's rubbing above trend chances are interest rates will move up and if interest rates move up that and of itself will take some of the exuberance out of certain markets but are you expecting some kind of taper tantrum from the markets you know i'm not a good predictor i i've never thought of myself as a good predictor but i i certainly i certainly feel like the market anticipates higher rates um at this point in time the question is how much how quickly i i don't think there's a chance that central banks can unwind this massive stimulus in a way that doesn't create some sort of a taper tantrum or some sort of a you know real shock to markets but there's also a chance it can't be done that way and you know i i do think that people you know it's been a long time since we operate in an environment where the general trend on interest rates has been higher and the general trend on inflation has been above trend i got out of school in the early 1980s and generally we've had the opposite you know for that 35 plus plus years and so you know i i do think people don't remember when paul volcker raised interest rates by 300 basis points on a sunday afternoon so there are a lot of factors that will go into you know how this process plays out it's unclear but i certainly think that that thoughtful market participants are thinking about it my conversations with big institutions they're thinking about it and they're trying to balance the need to participate and have relative performance based on participation and what happens as we unwind some of this and we rebalance a little bit so are you telling me that you're worried that you know markets are too cool about it just because they've made money for the last 10 years well i i i do think that you know generally speaking everyone feels quite smart right now because most of the things that you invest in are going up um that's not the way it normally works so i you know again i'm not i'm not a great predictor but my experience tells me this is a moment in time um that's probably not a sustainable moment in time but then it would be what an economic shock so away from an inflation monetary policy what would it be it could be a change in the perspective of the course of economic activity um it could be some sort of a geopolitical shock it could be that something goes wrong with respect to our emergence from the pandemic and we have a different set of events that change the perspective but all this is based on kind of confidence on a forward view and you know i would say at the moment the forward view is quite optimistic um if it stays optimistic and central bankers you know handle the withdrawal in an appropriate way with the right communication there's a chance we can do it you know in a balanced way there's a chance something could go wrong got to be prepared for both how do you prepare actually for both well you prepare by you know thinking about if the world looked differently you know how it would affect different assets and um you know how would you how would you feel if if if things were worthless worth not worthless but worth less and uh and so in um so in that context you know we do we do a lot of we talk to our clients a lot about different scenarios and you know we think a lot about our own balance sheet and you know our own propensity for risk um as we try to navigate those things really important conversation there goldman sachs ceo david solomon speaking to bloomberg's francine lacqua earlier at the bloomberg new economy forum and matt interesting to hear them talk about the way things might go right or might go wrong as we see central banks globally dealing with the removal of the amount of stimulus they put into markets at the height of the crisis and also talking about the need for long memories and the more we can refer we can talk to people with long memories who remember the 70s the inflation spike there the early 90s and the higher interest rate environment we all learned something well i remember the early 90s quite well um i was a little young in the 70s but i think we've all read the history and i think a lot of people who focus on markets whether they were there in the 70s or not are really well informed um paul volcker raising interest rates quickly in a short amount of time is really interesting to bring up because it does seem like many officials at the fed and in other organizations usually err on the side of doing less than doing more so they think they can get in less trouble if they do nothing as opposed to doing more and of course on relationships between the u.s and china a really prominent topic at this forum at the new economy forum taking place in singapore yeah and they reiterated goldman sachs asia reiterated their commitment to china but said look longer term yeah we may get pressure politically from washington or beijing but for the moment they have to be committed to that market absolutely we'll have plenty more interviews for you coming from the bloomberg new economy forum throughout the week including bill gates the co-chair of the bill and melinda gates foundation also tonight on peer-to-peer conversations david rubenstein sits down with the sec chair gary gensler that's at 9 00 pm in new york i wonder if they will talk crypto this is bloomberg [Music] china cannot develop in isolation of the world and nor can the world develop without china i assume that chinese leaders will work towards the maximum capability of their country our task as americans and non-chinese is to understand what we need to do to make sure that there is at least equivalence and in no case subordination china needs to play by the rules they need to respect our ip they need to live up to their commitments you know right now for example in the so-called phase one deal where the chinese committed to purchase a certain amount of you know aircraft and agricultural products they're not doing that they're not living up to their commitment you have to be able to sit down and work through especially your market access issues when it comes to goods so we would need some sort of ministerial dialogue to be able to work through that market a session clearly both major trading partners of ours australia's number one china number two we want them both to work together so that we don't get caught in the crossfire of tensions that you know still exist various guests there speaking on china tensions and trade at bloomberg's new economy forum which is taking place in singapore tom keane joins us now co-anchor of bloomberg surveillance and tom i notice um very interesting takes there that are geographically divided the closer you are to china it seems you want to work with them the further away you are from china it's more a zero-sum game and it's sort of working against them how is this going to play out well the way it's going to play out is the diplomacy that we see at the new economy forum back to the reality of domestic and international chinese politics so those important communist meetings they've got coming up government meetings politburo meetings over the next year there's going to be a restructuring in china the backdrop for that matt is gdp let's look at the output numbers leland miller who's smartest guy on the block in this tells me you look at the relative move not the actual level in the broad span of 15 years is a move from 11 down to a 5 statistic on gdp with the gyrations of the pandemic in order what's that trend well there's a lot of people betting on a trend of a lower gdp i would suggest many many equity strategists are betting big on a pacific rim recovery tom it's remarkable isn't it 5 is the number that's being flagged then for 2022 among some houses there was a time when below seven percent was seen as a key line for the leadership in beijing in terms of ensuring that stability it's a time of common prosperity of course i talk to people on the ground in beijing they say they are taken by surprise stunned by the changes around technology and real estate how is this yeah how how are you making sense of this let me translate this so everybody understands when tom mckenzie says he's talking to people on the ground man anna he's behind the red doors in beijing talking to people about what's going on in the government you know tom what's behind the red doors is what really matters to me and they're looking again at the city-state structure let me ask you mr mckenzie because you're the smartest guy in this conversation does city-states still reign in china is the mayor of shanghai the most powerful guy in the land not anymore not anymore not under this leadership and that is the big change when it comes to art that is the big change and that comes down to then how do you articulate this policy that's being constructed in beijing at the local level you can follow the leadership but then you don't have the ability to adjust to local conditions tom see you know how i got a red uh bloomberg cup today i mean we're color coordinated on theme it's just a great i'm impressed it's a match matching matt's tie i don't know he's gone yellow that's nice no that's okay matt and i got the flag going it's great excellent so i'm okay tom keane thank you very much tom keane co-anchor at bloomberg should talk to mackenzie more about china let's do that in fact tom has important things to say about what he's watching over in china very briefly right now just very briefly on real estate of course we've been watching evergrand and the pressures in the credit sector we've got reports now that china is going to be allowing some property developers okay to issue asset-backed securities that could alleviate some pressure okay so we continue to watch real estate over in china matt watching the german covert case is still on the move to the upside i'm watching the latest from the bloomberg new economy forum it continues in singapore this is bloomberg

Channel: Bloomberg Television

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Length: 76min 24sec (4584 seconds)

Published: Wed Nov 17 2021