| Beijing accuses the U.K. of slander over Hong Kong comments. Goldman Sachs's CEO — and his particular leadership style — spark angst. China is set to report roaring economic growth. Here's what people in markets are talking about today. China accused the U.K. of "groundless slanders" after the British government said Beijing's crackdown on dissent in Hong Kong wasn't in compliance with a treaty that paved the way for the city's return to Chinese control. British Foreign Secretary Dominic Raab said the country is in a "state of ongoing non-compliance" with the treaty, going further than the nation's previous criticisms of China have. China responded that the U.K. has no right of supervision or sovereignty over Hong Kong. In recent days, Chinese lawmakers approved an overhaul of the city's election system that threatens to stack its legislature with pro-Beijing loyalists. Stocks are set to kick off the week weighed down by a jump in bond yields ahead of a key Federal Reserve meeting. The dollar was mixed against its major peers. Futures pointed to Japan stocks dipping, while they were little changed in Australia. The S&P 500 Index closed higher Friday amid rallies in financial and industrial shares as the rotation into value shares resumed. Elsewhere, oil fell for the first week in two months to end below $65 a barrel. Bitcoin rose above $61,000 before pulling back. Even in the sun-kissed Bahamas, Goldman's David Solomon can't hide from his critics. In late February, the CEO was using the bank's private jet for his seventh weekend getaway in as many weeks. Meanwhile the firm's New York office buzzed over Solomon's public bashing of work from home, an arrangement he labeled an "aberration" that needs to be fixed. In many ways, it should all be sunny at Goldman Sachs: Its Wall Street businesses are booming and the bank has finally put to rest the 1MDB scandal that dogged it for six years. Revenue jumped 22% last year to $44.6 billion, results that may speak to Solomon's edge. However, his abrasive, raw style is causing internal strain and the firm is riveted by palace intrigue over issues including executive defections and workplace flexibility. China is set to report roaring economic growth in the first two months of the year, with figures largely distorted by comparisons from a year ago when the nation was the first in the world to go into lockdown. Growth has so far been fueled by an export and industrial-led boom, with consumer spending slow to pick up. With the pandemic now under control domestically and the economy mostly reopened, comparisons with a year ago make it difficult to assess the true momentum of the recovery, especially for consumers. Have a look at the jaw-dropping numbers here. The situation in Myanmar is worsening. The nation's military leaders declared "full martial law" late Sunday in parts of Yangon, the commercial capital, after clashes between soldiers and protesters ended in more deaths. Coup leaders imposed the measure after the Chinese embassy asked authorities to protect Chinese-owned businesses and to guarantee the safety of its investments and citizens. Several Chinese-owned factories in Yangon were burnt during clashes this weekend. At least seven people were confirmed dead on Saturday, according to the UN Human Rights Office, bringing its tally since the coup started to 88. Last week the U.S. sanctioned the adult children of Myanmar's coup leader. What We've Been ReadingThis is what's caught our eye over the past 24 hours: And finally, here's what Tracy's interested in todayIn the past year we've seen a number of watershed moments in markets. One of the biggest has to do with China and its relationship with the global financial system. In 2020, China moved much closer to being a significant importer of global capital as opposed to an exporter, sucking in foreign money through both trade and financial investment. There are a number of reasons why this is happening. China weathered the coronavirus-induced economic crisis better than many other nations. The country has been uniquely suited to the Covid climate: With everyone ordering things online, China's export-driven economy has benefited. Meanwhile, Chinese government bonds offer rare positive yield in the world of sovereign debt, and in recent weeks have even been a source of stability compared to U.S. Treasuries. And enabling it all is China's drive to open up its markets to foreign investors.  Of course, as my colleagues have noted, casting Chinese debt as a viable asset class for trillions of dollars in savings is controversial to say the least. It can also be problematic for China itself, creating a massive headache in the form of a strengthening yuan and "hot money" flows that are susceptible to a sudden pullback. China's never had to deal with capital inflow to this degree before, and it's going to be interesting to see how they handle it. You can follow Tracy Alloway on Twitter at @tracyalloway. Something new we think you'd like: We're launching a newsletter about the future of cars, written by Bloomberg reporters around the world. Be one of the first to sign up to get it in your inbox soon. | 
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