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China’s policy pivot, Biden talks to Putin, and omicron fears ease. SupportingBeijing authorities are firmly in pro-growth mode with the Pol [View in browser]( [Bloomberg]( China’s policy pivot, Biden talks to Putin, and omicron fears ease. Supporting Beijing authorities are firmly in pro-growth mode with the Politburo stating that [stability is the top priority]( ahead of next year’s Communist Party congress. Premier Li Keqiang also said China has room for a variety of monetary policy tools after [yesterday’s reserve ratio cut](. Financial and property stocks were the [biggest winners](amid the change in tone from policy makers. In Hong Kong, Alibaba Group Holding Ltd. soared by the [most since its 2019 listing](. Global markets are also [getting a lift]( from the policy pivot in world’s second-largest economy. Talking President Joe Biden will hold a video call with Russian leader Vladimir Putin at 10:00 a.m. Eastern Time as [tensions between the two countries remain high](. Biden plans to use the call to warn that invading Ukraine would lead to [severe economic penalties](, including sanctions against [Russia’s biggest banks](. The Kremlin has long denied any intention to invade Ukraine, instead saying the build-up of troops along the border is in response to “[the threat on our Western frontier](.” Senate Republican leader Mitch McConnell yesterday said that the U.S. should supply Ukraine with “[whatever weapons they think they need](” to defend themselves. Russian markets have so far shown [little sign of panic]( over the possibility sanctions. European [natural gas prices jumped](. Treatment There was another piece of good news about the omicron Covid-19 variant this morning when GlaxoSmithKline Plc said research showed its antibody treatment is [effective]( against the new strain. Data from South Africa continues to point to omicron being a mild illness with [hospitals not being overwhelmed]( despite cases surging. Governments, however, continue to exercise caution and [tighten measures](. New York City Mayor Bill de Blasio said the city will impose a vaccine mandate on private-sector workers as a “[preemptive strike](” against a potential upsurge in cases. Markets rally China’s promise to support the economy and the continued reassessment of the threat from omicron are helping global stocks. Overnight the MSCI Asia Pacific Index climbed 1.7% while Japan’s Topix index closed 2.2% higher. In Europe every industry sector rose, led by tech and mining companies, to push the Stoxx 600 Index to a 2% gain by 5:50 a.m. S&P 500 futures pointed to a [strong start to the session](, the 10-year Treasury yield was at 1.448%, oil [rallied to $71.60 a barrel]( and gold was little changed. Coming up... U.S. trade balance data for October is at 8:30 a.m. The EIA short-term energy outlook is published at 12:00 p.m. The U.S. sells $54 billion of 3-year notes at 1:00 p.m. Biden and Putin talk from 10:00 a.m. Jeffrey Gundlach hosts his Total Return webcast from 4:15 p.m. Autozone Inc. and Toll Brothers Inc. report results. What we've been reading Here's what caught our eye over the last 24 hours. - The world’s relentless demand for chips [turns deadly]( in Malaysia. - JPMorgan banker testifies [Epstein wired Maxwell $31 million](. - Fund manager Steinhardt accepts [lifetime ban from antiquities market](. - Self-described Bitcoin creator must [pay $100 million]( in damages. - A $10 billion question: Did Sacklers [abuse]( Perdue bankruptcy? - How to say [2021’s most mispronounced words](, from omicron to Ethereum. - New discovery moves battery “dream technology” a [step closer to reality](. And finally, here’s what Justina’s interested in this morning By now, it feels like another crypto crash has come and gone. The mechanics of this one were fairly [classic](: open interest in derivatives was near records before duly crashing on a bearish trigger. But what I found interesting this time is the narrative was pretty much that the links between traditional and crypto markets are strengthening because of growing institutional money in digital money. Of course this has been a bullish case all along, but the weekend selloff shows this can also be a double-edged sword. (As my colleague Joanna Ossinger [wrote](, this might be why Ether fell less than Bitcoin.) It’s hard to exactly prove who pulled cash early Saturday, but at least one crypto fund manager [told me]( the first risk-off move was driven by professional money via over-the-counter desks. But even disregarding the exact causality at the moment, the weekend rout attested to a historical pattern for Bitcoin that Man Group analysts [wrote]( about last week: The cryptocurrency generally has zero correlation with major asset classes, but whenever stocks have sold off 5% or more over a month over the past decade, Bitcoin has dropped 86% of the time with an average 13% decline. In other words, it’s not a good hedge when you need it to be -- which is a problem for multi-asset institutional portfolios. Another point I heard yesterday was that one big macro pitch for crypto has been the fiat debasement from monetary easing. That, at least on the margin, is also reversing. I’m not sure how many really bought crypto on that pitch rather than YOLO, or whatever, but recent moves do show crypto swings along with the likes of profitless tech, ARK and other risky securities that have benefited from low rates. (I was also amused to hear the selloff was exacerbated by thin liquidity as it kicked off during late night U.S. hours. You can have 24/7 trading, but not great liquidity 24/7.) Altogether, it’s a regime change for everyone, retail and pros alike. But for crypto, it still goes back to the same rule: Watch high levels of open interest for signs of trouble. Follow Bloomberg's Justina Lee on Twitter at [@justinaknope]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Follow Us Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Five Things - Americas newsletter. 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