China covid

The southern Chinese city of Guangzhou -- population 15.3 million -- ordered mass testing in seven districts and grounded all domestic flights for two days after cases among airport staff and close contacts.

Today, officials announced that 1.4 million tests had been conducted and at least four infections detected.

In Shanghai, there's some optimism after cases fell for the fourth straight day but worry is growing in Beijing where 56 new locally-transmitted cases were found.

Worry about China has been one of the main drivers of weakness in global markets but this week that's been somewhat balanced by President Xi calling for "all out efforts" to boost infrastructure in order to meet growth targets.

Looking further out, we will ultimately need some kind of resolution of covid-zero in order to have any strong underpinning of global growth optimism and supply chain normalization.