Summary of today’s Essential Eight:
Covid - Cases continue to surge in Guangzhou and the daily new case count is approaching the level at which Shanghai shut down earlier this year, when the daily new cases crossed 4000. If the cases keep rising and the city does not go until full lockdown then perhaps that would be a sign the authorities are really moving towards a softening of Dynamic zero-Covid. Beijing cases are also increasing, as are cases in Chongqing. So three of the PRC's largest and most important cities are now dealing with their worst outbreaks in months. As I asked on Monday, how will the more optimistic investors react if there is a large-scale lockdown in one of the tier-1 cities?
Biden confirms meeting with Xi in Bali - The meeting was expected, so far the White House not given any guidance on the agenda or any possible deliverables.
COP27 - US envoy Kerry had an informal discussion with PRC envoy Xie Zhenhua, perhaps the PRC side will agree to restart climate discussions…