5 Things You Need to Know to Start Your Day

US and China resume some talks after Blinken’s Beijing visit, Alibaba shakes up its top leadership and UBS faces the fallout from Credit Sui [View in browser]( [Bloomberg]( US and China resume some talks after Blinken’s Beijing visit, Alibaba shakes up its top leadership and UBS faces the fallout from Credit Suisse’s dealings with Archegos. — [Kristine Aquino]( US-China talks [US Secretary of State Antony Blinken said his trip to Beijing achieved its goal](of restoring some senior-level communications with China, while President Xi Jinping pronounced the progress “very good.” That said, the US was unable to restore communications between the two countries’ militaries, which China severed after then-House Speaker Nancy Pelosi visited Taiwan last August. “When you parse through what was publicly announced, there are some notable gaps, including what the next steps will be beyond the reciprocal visit of the foreign minister to the United States,”  said Wendy Cutler, a veteran US diplomat and trade negotiator. Alibaba shakeup [Alibaba shares fell more than 1% in Hong Kong after the company announced a six-way restructuring](. It’s replacing Chairman Daniel Zhang — an eight-year veteran — with Joseph Tsai, currently executive vice chairman and a longtime confidant of billionaire co-founder Jack Ma. Eddie Wu, now chairman of Alibaba’s core Taobao and Tmall online commerce divisions, will take over as chief executive. The moves come as a bid to juice growth and create a family of standalone leaders in cloud computing, logistics and international commerce. UBS fines [UBS faces hundreds of millions of dollars in regulatory fines over Credit Suisse’s dealings with Archegos Capital](, according to a person familiar with the matter. The US Federal Reserve’s fine may be as high as $300 million, while the UK’s Prudential Regulation Authority could impose a penalty of up to the equivalent of $128 million, the person said. UBS has previously guided that legal liabilities related to Credit Suisse could run to as much as $4 billion over 12 months, and asset mark-downs could come in at some $13 billion. Cautious markets S&P 500 futures were down 0.4% as of 5:41 a.m. in New York, while Nasdaq 100 contracts fell 0.5%. A Bloomberg gauge of the dollar was little changed, while the rest of Group-of-10 currencies were on the back foot. Treasury yields edged higher across the curve, having reopened after a US holiday. Oil and gold rose, while Bitcoin climbed for a second-straight day. Coming up… At 8:30 a.m., we’ll get housing starts and building permits data for May. After earlier remarks from St. Louis Fed President Jim Bullard, his colleagues — New York Fed’s John Williams and Fed Vice Chair Michael Barr — will speak at an event at 11:45 a.m. Earnings include FedEx. What we’ve been reading Here’s what caught our eye over the past 24 hours: - World-record holder, CEO are among[passengers in missing submarine]( - [Terra’s Do Kwon gets four-month prison sentence i](n Montenegro - [A dip in UK food inflation](is not enough to ease consumer worry - The world’s[most expensive city for luxury living]( is Singapore - [Carlos Ghosn sues Nissan for $1 billion]( in damages over his ouster - Will Mumbai’s new metro[fix the city’s terrible traffic](? - [Himalayan glaciers could lose up to 80% of their ice]( by 2100: report And finally, here’s what Joe’s interested in this morning… From time to time, I like to look at the ratio of the S&P 500 to an ounce of gold. It's a good sentiment proxy for investors. Are people betting on humans and human ingenuity (the companies that make up the stock market) or are they betting on a lump of metal, whose main selling point is that it will be the same lump of metal 1,000 years from now, and that it was the same lump of metal 1,000 years ago. Anyway, what stands out is that even with the strong market gains this year, the ratio is only back up to levels from the middle of February. And it's still well below many of its peaks from last year. Inflation, the Fed, recession fears — there's clearly plenty of anxiety out there, and the market remains pretty subdued. One interesting thing is that for years, this ratio has traveled along a similar trajectory to small cap stocks, as measured by a Russell 2000 ETF. Again, similar story. Although it's bounced over the last month or so, the Russell remains below highs from early this year. In a sense, the big theme of 2023 may be resilience. After getting crushed last year, tech is showing life, perhaps thanks to AI-driven animal spirits. 7% mortgage rates haven't crushed the housing market like many expected. Just yesterday, the NAHB homebuilder sentiment survey came in above 50 for the first time since last summer. We'll see if this sense of resilience and optimism continues to spread, and people place more chips on humans, and fewer chips on the metal that you don't do anything with. Follow Bloomberg's Joe Weisenthal on Twitter [ @TheStalwart](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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](. Want to sponsor this newsletter? [Get in touch here](. 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