Bloomberg News Open, Asia Edition. First Responders

Bloomberg News reports China told some brokers they can resume contributing bond pricing feeds to certain aggregators after an abrupt suspension earlier this week, people familiar said. The reversal came after regulators met the country’s six money brokers. The PBOC and NAFMII had solicited feedback from market participants, other people said earlier.

Spotlight

Full of challenge. Hong Kong faces multiple obstacles to regaining its former glory even after returning to business as usual for the first time since before protests began in June 2019.

At stake is the future of the main conduit for capital flowing in and out of China, as well as bragging rights as Asia’s primary financial hub.
Local pressures include a population exodus and a shattered economy. The national security law is also causing uncertainty.

What to Watch

Power play. China’s Communist Party unveiled details of organizational changes that will enhance its control. It’s forming a central financial committee that will absorb an existing State Council body, Xinhua said. It’s also creating similar structures for technology and Hong Kong and Macau affairs—the latter will also take over existing Cabinet functions says Bloomberg News .

In other news:

-The ECB raised rates by 50 bps but offered few clues about the future.
-Geopolitics: China’s military is ignoring efforts to reopen talks, the US says. The Chinese and Ukrainian foreign ministers spoke, however.
-A Pakistani court rejected Imran Khan’s effort to suspend a warrant.
-South Korea and Japan made progress in resolving their dispute.
-Corporate: ThaiBev is mulling options for its spirits unit. including a Singapore IPO. CK Hutchison’s profit increased.

Opinion

Exactly a year into tightening, the Fed faces its toughest set of choices yet, Jonathan Levin writes. It can forge ahead with its inflation fight or pivot to address growing banking-sector fears. Behind Door No. 1: an ever-approaching recession. No. 2: entrenched inflation. Unfortunately, it’s looking like a lose-lose scenario of policymakers’ own making.

Credit Suisse must pre-emptively improve the narrative before crazy, rich and anxious Asians pull their money out, Shuli Ren writes. Its private-banking clients in the region have been amazed by the bank’s fast fall from grace. The lender needs to address their queries ranging from sanctions risk to deposit safety to protect its profit and growth center.

By the Way

A bad workman blames tools, but China blames the US bank failures on political infighting and poor financial regulation. “The flip-flopping of financial supervision due to domestic political disputes was exposed in this incident,” Xinhua said while citing “the absence or mistakes of the US on financial supervision and macro policies.” Way harsh.

The art auction business is dominated by $1 million-plus sales. A new Sotheby’s report peeks under the hood of high-end auction houses and reveals just how critical the super-rich are to company bottom lines. Still, inflation is hitting the wealthy as the price of art just keeps rising.