China, Xi Jinping, Biden Administration discussed on Bloomberg Daybreak Asia


In 15 minutes. Let's get a look at global news headlines head Baxter is in the Bloomberg news remedy. All right, thank you, Douglas defiant. Xi Jinping tells the world that China is ready to stand its ground and defend its sovereignty. She says China will protect its sovereignty by protecting Taiwan from the west, Hong Kong. He says now is on the right path. He says the government will continue to protect citizens by adhering to the dynamic zero COVID policy. She says the country will continue to standardize the order of income distribution, says the economy will benefit from great strides in the technology sector. The Biden administration says today it is thinking about reevaluating changes to its approach to help Saudi Arabia with security assistance. Thousands of people took to the streets of Paris over the weekend to protest against soaring prices amidst calls for a general strike, and Russia has opened a criminal investigation after a gunman shot 11 people to death at a military training ground near the Ukrainian border. In San Francisco, I'm Ed Baxter. This is Bloomberg, arbitrator. All right, thanks for that, let's get back to Steve selznick tube strategies that interactive brokers. It's Steve. As we just mentioned, Ed was talking about Xi Jinping's speech yesterday. One thing which struck a lot of the commentators at the time was he didn't really mention COVID by name. He didn't also really say the word market or free market at all. Does this again just perhaps cement what's really been the actuality? I think so. I think that COVID the COVID policy has been in the backdrop. I think they're continued use of the zero COVID policy. I think they have to realize has caused some issues both economically and socially. And so maybe this shows a little bit of easing off that policy. In general, I think what we want to hear from him is just something what we will be getting sort of the China of old or will we be getting a new version of China. A slower growing somewhat more stagnant, more mature market. And our economy. And I think that that's something the world has to reckon with because we've already seen that it's not particularly helpful when you have a fairly stagnant China. And I think back to sort of the aftermath of global financial crisis, what a growing China sort of counterbalance to shrinking rest of the world. Right now, if China is not particularly growing and no one else is, that's not particularly helpful. And I don't know that Xi Jinping assuaged many people that the situation might turn around abruptly. One of the key points is that he really believes that China is an admired alternative model for development on the global stage that counters the U.S. led multilateral and democratic system. Do you see many countries that will embrace this bath or want to embrace this path? I don't see that. I'm sure there are sort of there's got to be some autocratic leaders out there who would prefer the Chinese model. Which is more autocratic than most of the rest of the developed world. But I don't see that as necessarily if people are rioting for freedoms or whatever. I don't see them really rioting to adopt the Chinese model. I see that being imposed from top down. Okay. China itself, but that does throw up a lot of other EMs out there. And how close did you look at them and how close to your clients now looking at them, given that they've been so beaten up as we've been people just have not been prepared to put risk on the table for any length of time. We are not seeing people really actively talking about or looking at emerging markets right now. Maybe that's a good thing. Maybe that means that if there's a complete lack of interest it's a buying opportunity, but this is a difficult environment. A strong dollar is a big problem for so many emerging markets, particularly the ones who borrow in dollars. So there's a lack of interest. There's sort of a very strong wariness about emerging markets right now and it's probably with good reason, but it echoes what I said earlier. They're not all bad. So the problem is finding which ones there are. And I got to say right now, I don't have a strong candidate to say this is the one we have to be looking at right now. I think it's going to it's going to reveal itself over a bit more time and require a lot more work, which frankly have not done to find it. I have not been able to find it yet. You mentioned that you see opportunity, as well as danger. I guess the earnings season will give us a really good insight into some companies that are managing through this much better than others. Do you have an inkling of where they might come from perhaps what sector or what type of company? I think it's going to be a bit idiosyncratic. I think the problem right now that I think we've discussed in the past is it's not a great sign. I wish I could rearrange earnings season. I don't love that it starts with banks because they're very idiosyncratic. Nobody else is trading revenues. Nobody else is that interest rate focused. So we're going to really get in and see. I think the initial

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