♪ good morning and welcome to "street signs." i'm joumanna bercetche and these are your headlines. european equities turn south with weakness on wall street. glass is half empty for drinks maker after china launches a probe into the eu. attention turns to the non-farm payroll print as wage

growth slows. a trend the adp's chief economist tells cnbc is set to continue. >> deceleration is the story of 2023. that means any wage price spiral that pushes up inflation has all but disappeared. and apple shares fall to an eight-week low losing $170 billion of value sunsince the st of the year as piper sandler is the second to downgrade the phonemaker this week. good morning. it's jobs day in the u.s. always an exciting one for market watchers. we will talk more about that. it does feel the market wants a weaker number and namely to validate the rate cuts priced in to 2024.

the market wants to see signs that the labor market is accelerating which incentivizes the market with the rate cuts. this is the final trading day of the week. four days of trading and it has not been pretty. every indices is looking like it will end the week in the red. today is no exception. the stoxx 600 with a lot of red on the board. the index is down .60% for the week. we are tracking losses of 1% for the stoxx 600. we talk about macro issues and if the rate cut cycle is balanced in 2024. also the tech sector as a whole hasn't had a great start in the u.s. that meant where a lot of leadership came from last year and some of that positivity is

fizzling out. st stoxx 600 is down .60%. here are the boards in europe. you can see every single dione trading under water. the ibex is down .75 re%. the main story is one that is the cac 40. we will talk more about it with charlotte shortly. essentially, china announced they are looking to launch an anti-dumping investigation on brandy imparted from the eu. a lot of the spirits makers are in the cac 40. that is the reason we see that under performing. the luxury names like hermes and lvmh are pulled lower. ftse 100 is down 50 points. .60%. not seeing a lot of green on the board.

we are seeing out performance from housing data. we will talk more about that on the show as ewell. in terms of sectors, before that, we will take a look at the week to date performance. i started off by saying it hasn't been a great week. the ftse 100 is down .70% for the week. the cac 40 is down 2%. not a great start to 2024. the dax is down 1.4% as well. now we get to sectors and leadership today. this is where it is coming from. we have the european sectors trading in the red. telco is the out perperformer. healthcare is down. retail is in focus. the story yesterday was jd sports. the stock was down 20% at one point yesterday. that streak of losses is continuing this morning. the difference today is it is pulling down other retailers

with it. we are seeing next, for example, out performing yesterday and trading as well. travel and leisure is down 1.1%. keep an eye on oil. the higher the oil prices impacts the airline industries. industrials are down 1.1%. let's get to the top story. that is the china commerce ministry launched an anti-dumping investigation into brandy imported from the eu. it follows the complaint filed by the china alcohol beverage association. you see the list of luxury names and spirits makers in the stoxx 600. charlotte jouins us now in the studio. charlotte, look at the market reaction this morning. it seems like this caught a lot of people by surprise.

>> absolutely. all these brands with the cognac brand and all affected. the one most impacted in terms of share reaction. they announced back in october that the cognac division was down 30%. they have seen weakness in other markets in the u.s. which is softening. all of the cognac brands were hoping for a rebound. it is taking longer than expected. this is bad news in china. they cut guidance in october. they said organic sales declined 15% to 30% this quarter. this anti-dumping investigation in china is after the beverage division is calling after the trade war from the trump years with the extra tariffs on cognac.

a few weeks ago, you had the eu launching the investigation into the evs coming from china. france had been a key actor pushing for the vehinvestigatio. france announced incentives for people to buy evs and made in france and made in europe benefitting from the incentives where the chinese ones were not involved. they are pushing the ev makers out of the market. they are looking for the tit-for-tat here. that is why we see the reaction here. also just ahead with the chinese new year and this is a key moment for the cognac sales. >> charlotte, thank you for the breakingdown. of course, we think about that in the geopolitical tensions with the questions for investors this year is how do you play the rise of geopolitical tensions? here is the clear way you can get involved looking at the eu

luxury names in response to the probe out of the chinese beverage association. let's see how the u.s. indices fared. the s&p is down yet again .30%. nasdaq is also down .50%. five-day losing streak. the first time this has happened since december of 2022. looking ahead, that losing streak will continue. we have the s&p down and nasdaq all opening in the red. taking a look at the week as a whole, it has just been a four-day week, but it feels longer. this is the reaction for the stock markets. nasdaq with a big drawdown. down 3.3%. a terrible start to the year for the tech indices. s&p 500 is down 1.7%. the dow is the marginal down 250 points or .20% for the week.

one stock we have been watching closely is apple. that stock down more than 5% this week. lost $170 billion in market value over the first couple of trading days of the year. that is why the nasdaq is down so much. attention will turn to the non-farm payroll report in the u.s. as they he areare looking fa future of the fed. that is down from november's near 200,000 print with the unemployment rate ticking higher to 3.8%. investors are watching for the euro area cpi for december due this morning with the headline reading expected to rise 3% on the year. the numbers could give key clues on the ecb potential rate path. we did guet a bunch of numbers yesterday. for now, let's bring in ed

smith. wonderful to have you with us on the show. i was looking at the first couple days of trading for the stock market. it hasn't been that pretty. what do you think the reason is for the stock market wobble in the first couple days? >> we think a bit of reality is creeping in to stock markets. perhaps an acknowledgment there is uncertainty out there. we had tremendous reduction in inflation and the risk of severe recession is off the table. i think there is an acknowledgment of the risk premium getting back down to 2% which has not been seen since 2007 is a bit of overreaction. that is is the world really that cert certain? think about last year. the gain in the s&p 500, but

profits did not rise at all. the risk-free rates with the bet ten-year treasury yield started at the same point that is ended. that was driven by sentiment. we think there are still risks to profits and to the interest rate outlook. i think the market is just waking up to that. >> let's take stock of where we are right now. the yields with the ten-year note at 4%. the s&p is 4,700. what would you say is priced in to both of those instruments? are we priced in for a soft landing and too complacent for a deeper or possibility of recession in the u.s. at this point? >> i think there is something of a paradox in the market pricing at the moment. we've got the s&p sitting around 4,700. 11% earnings growth is the

consensus for 2024. at the same time, you have the other parts of the market which are saying there are five or six rate cuts. is the macro environment giving you profit growth, is that going to give you five or six rate cuts? it is not really that clear. if we get a good 11% year for earnings, and given the starting point, there will be inflation pressure and reasons for the fed to give the three-month rate of change at core at 3.5%, that will give the fed a reason to pause. there is a bit of an uneasy disconnect with the bond market and equity markets at the moment. we think that could engender volatility in the first half of the year. >> let me ask you about leadership. for most of last year, the

performance was concentrated to the tech stocks, the magnificent seven, as we called them through the course of 2023. throughout the last month, it brought in doubt and we saw heavily shorted stocks. tech stocks which had been unfavored before and started to do well. do you expect 2024 for the performance to be a lot more broad based or will it stay confined to the magnificent seven stocks although they have not had a great start so far? >> we think leadership will continue to be narrow. last year on many metrics, it was a narrow year ever. only 25% of s&p 500 companies beat the benchmark. usually it is 35% or a bit higher. if you look at the performance of the s&p 100, the index which isn't often referenced, but the equal weighted 500 index, you have not seen the equal weighted

since 1998 or 1999 when you had the run up to the bubble. we don't expect it to be as narrow as that. in the first half of the year, we expect the quality, high cash compounding companies to do well as the rest of the market undergoes downward revision. >> i want to turn to the part of the market we don't talk about much. that is the uk index. ftse 100. under performance last year versus other indices. i thought in one of your research pieces, you did an analysis comparing firms in the same sector with identical growth and what you found is the uk trade was cheaper. there is a discount because these companies are listed on the ftse 100. does that create an opportunity or is that a value trap? >> twe really think it does.

a lot dismiss that valuation gap. it roughly parts out to a 50-year high. it doesn't have the high growth companies or companies with world leading profitability. we can adjust for that with the stats and regression analysis. compariing apple for apple basi, like return on invested capital and things likes that, there i still a large discount. the discount with the uk and u.s. snarrows 32%. that is still a big discount. it is still a big discount. it doesn't make sense pause we live in a world where capital can flow freely. here is the issue, we didn't see

that with the valuation before 2016. >> what happened in 2016 again? >> right. not a political statement. it is a statistically observation. >> let's round up by asking whether you think once the elections are out of the way and some of the political premiums are factored into the market will go away? >> i think there is a return to some degree of normalcy. there is more policy uncer uncertainty. if you look at the uk election, when it happens. >> not in spring. >> apparently no. sure, it pulls apart the culture and social issues, but in the broad bush erush economics, the not much to separate. pretty similar to what boris johnson was talking about when

he hit number 10. the overall sort of attitude of business and fiscal power is going to be an issue. >> not worried about a labour government coming in. >> you can only find elections deviate markets from the trend they're already on. if there is a radical change like in the '80s, it doesn't represent that change. they have center right or center left. >> good space to leave it. thank you for coming on the show today. happy trading for 2024. ed smith from rathbones. you can follow us on x @streetsigns. coming up on the show today, no pepsi and no crisps.

boring. pulling items from the shelves over the bitter row ov fd eroo fl inflation. we'll have that next. shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free switch to shopify and sell smarter at every stage of your business. take full control of your brand with your own custom store. scale faster with tools that let you manage every sale from every channel. and sell more with the

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welcome back to the show. the weather has been so bad in the uk the last couple days as it has not stopped raining and our producers thought they would show you the lovely shot of hong kong harbor. take it in for a second. if you are in the uk, don't look out the window. it's still raining. moving on. uk electric vehicle sales fell for the first time last year according to the society of motor manufacturers and traders. the market share was down ten basis points to 16.5% even as sales rose 18% to the record 315,000. uk roads could be seeing more cars from chinese ev manufacturer which has embarked on a major cost cutting drive in

2023. and they told cnbc this morning that the firm is planning to expand into new markets. >> we are focused on expanding in a number of markets in the middle east and southeast asia. the u.s. market is a longer term prospect because there are a number of preparations we need to do in order to look at that opportunity. right now, it is too early for us to say whether the strategy to enter the u.s. directly or through mexico are things we are monitoring in the industry closely and hopefully when we're ready, we will adopt the right strategy. on to france, french food caterer sodexo has a 3.1% sales

increase year over year in the first quarter. and hen carrefour stopped sales of pepsi in four countries over price increases. it comes amid a wider row with france and global food giants over food inflation. pepsi said it will continue to work with carrefour to put items on the shelves. charlotte is back with me. one thing that is not being discussed enough here and going under the radar is the french retail sector is regulated by the french government. that is why these discussions are ongoing negotiations. it is not new for a retailer to have a discussion with the consumer food giant. the difference is this time around, they are making a public and political statement. >> absolutely. the key of the context. this little stunt by carrefour as i spoke to them twice

yesterday, they could not confirm how long this would go on for and what shops this would be happening. looking online and just this morning and now, those pepsi products are still available to buy. a pr stubnt. the negotiations are ongoing with the supermarkets and food producers were supposed to be in march. the government is trying to get the food prices down because it has been a key hot topic on the political front. now this food inflation has been a main driver in france for inflation and the latest reading yesterday with food inflation at 7% in december. the overall inflation is 4%. it is going down, but still very high. the government is putting the figure to the supermarket. the supermarket is putting the finger to the food producers. this is a stunt by carrefour and

saying they may be doing the same thing. all of this pressure while the negotiations is happening in the background. you remember in september with the shrinkflation. saying the product has gone down, but the price is the same. france wants to make this a law for the supermarkets and they have sent to it brussels for approval to food retailers have to signal when the cost is remaining the same when the size has gone down. that could be march in france. this is all in the background. this article was published a couple of days ago which this should be a priority for the government and the cost of living crisis is ahead of immigration and health. you can see why the french government wants to be public and they are trying to fight for

lower prices. >> that play into the french inflation numbers we had yesterday. i wonder to what extent these types of discussions and the various decisions that carrefour had over shrinkflation is driven by their economics and the fact that margins are razor thin at this time? it is like they are airing dirty laundry and justifying to the public why the margin is so thin, but how little leverage they have where the consumer goods giant is expanding. >> the cost of living crisis and their brands are doing better. they have a bit of bargaining power with the brands here. it is a gamble. maybe some people go to another one. they really want their pepsi

products. it is a power struggle for pepsi. if you take away the coca-cola products, and the acpepsi products, it is a big deal. this is a big exercise making this a public conversation. >> they are succeeding. charlotte, thank you. coming up on the show, we're going to dig into what today's house price data in the uk could mean for the real estate market. all the details coming up next.

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just like that go to shipstation/tv and get 2 months free welcome back to """street signs." i'm joumanna bercetche and these are your headlines. glass is half empty for drinks makers. shares slide after china launches an anti-dumping probe after reports from the eu. and private hiring picks up

in december and wage growth slows. the trend the adp chief economists says is set to continue. >> deceleration is the story of 2 2023. that means any wage price spiral pushes up. and apple losing $170 billion of value since the start of the year as piper sandler is the second tfirm to downgrade te phonemaker he week. . it is not a pretty start to trading. you see the indices trading under water. the stoxx 600 is shaping up like it will be down 1% for the index at a headline level. quite a significant pull back.

similar story in the u.s. the pull back is bigger in the u.s. with the nasdaq down. that is telling you how investors are starting off for 2024. this is the picture for the indiv indices in europe. china may be launching an investigation into the anti-dumping practices of spirits makers. the spirits makers are in the french index. we are seeing a down day in the cac 40. luxury names are getting a bit beaten down as markets price in more of a geopolitical risk premium. the link with china and the ecb c eu coming to the floor. we did that have better than expected home price data that we will talk more about in a few

moments with arabile. that is something to think about in the ftse 100. the home builders are out performing other parts of the index. in the foreign exchange space, the dollar/yen. the yen trading weaker and that has given a bit of a boost with the nikkei which was closed for a bank holiday and since the earthquake this morning, it did come back into positive territory. that is in response to the weaken yen. and the pound is in focus and weaker today down .10%. in terms of the fixed income, we have seen big moves over the last couple days. yields have started to move upwards again. today is no exception. the bund is a couple of basis points higher at 2.15.

we were trading sub 2%. ten-year gilt at 3.78. the ten-year btp at 3.84%. u.s. yields are also in focus ahead of the nfp numbers later today. we have seen an upward movement in terms of the yield levels. 4.02 for the ten-year note. for the week, these yields are up 12 points. we have started to creep higher after the terrific rally in november or december of last year. two-year note is two basis points higher. in terms of futures, we have the nfp number coming up today. the market is watching for signs of further weakness in the labor market in the u.s. also what will happen on the wage growth front and whether that job weakness will have an impact on the jobs. the dow and nasdaq all are

opening in the red. let's talk more about those uk house prices. they did rise on the yearly basis for the first time in eight months in december according to data from halifax. prices rose 1% on a monthly basis. interesting. arabile has been looking at these numbers and can tell us more about what has been going on. i think, arabile, some of that is on back of the lower mortgage offers coming through. >> that is the case. a lot of the lenders went on to cut the rates before christmas actually. we'll discuss that in a moment. just to unpack that data more when it comes to the halifax numbers. you made the note of 1.1% higher for the month. 1.7% higher on the year on year basis. 1.2% up as well on the quarter by quarter basis. if one looks at the graph, one might think that price drop has

bottomed out and we see house prices go on the up to close out the year. wit actually, halifax says house prices could fall between 2% and 4% in 2024. perhaps we will see this dip off just a little bit more as we head into the remainder of the year. of course, we are in an interest rate environment where we could see the rates drop off consi considerably. speaking of rates, we had the big lenders, hsbc, come and decide to cut their mortgage rates to below 4%. here is the figure. it actually went all the way as you saw the rates dip off to 5.92% for the two-year mortgage with the average five-year rate going to 5.53. prompting hsbc to bring down the mortgage rates as well.

the five-year rate dipped off to 3.94%. that is for hsbc. we will take a look at that as well. it is not the only one which decided to cut the mortgage rates as well. they did cut to 4.9%. that is the number coming off over there. halifax cutting their rates by 83 basis points and so is leeds building society. hsbc saying the fixed mortgage rates will see significant cuts across the board and they are under regular review. a number of lenders cutting rates before christmas. this, perhaps, is the first of the big six cutting below 4%. that gives you a clear sense of where rates may go and gives credence to halifax seeing a drop of 2% and 4% in 2024.

that is one interesting point of note as well across the data and we may see more cuts according to halifax. joumanna. >> arabile, thank you so much for that. such an interesting segment. to talk more about the state of the uk housing market, richard donnell is joining me on set. great to have you with us. the halifax is showing signs of green shoots in the housing market. will that continue for 2024? >> i think it really picks up in sales. the final quarter in 2023 is the peak and hope that the mortgage rates would fall. that boosted the number of sales. we saw 17% year on year growth with the number of sales in november and december. i think that is coming through in the firmer price numbers. i think it is still a bit of a challenging outlook for 2024. there is not a big increase in house prices. i think what industry hopes for

is more liquidity and more people moving in homes. we had 1 million people move home last year. i think the market is not going to collapse, but it will not boom. hope we build back sales volumes because adjusting from two-year mortgage rates, it will take longer for the realignment with incomes and house prices to happen. >> i have been covering the bank of england for a long time. one thing they always said is the full effects of height high interest rates have yet to be felt on the economy. we have gone past that point and lenders have startedto lower the offers on mortgage rates. that is great. to what extent does that give support to the home prices in the coming years? if you take where we are going to be in 2024 and compare to 2022, rates are still significantly higher than where

they were. >> haclf of people with the mortgage have yet to refinance. there is most money to be paid on housing. it helps people looking to buy. as you say, mortgage rates are two times where they were in 2021. 4% or 4.5% mortgage rates, that is still a low rate compared to the long-run history. people are turning up and buying profits properties with higher confidence. there are people who want to move home and think 4% or 5% mortgage rates are okay for them to carry on and buy a property. that's going to support transaction volumes more than property prices. >> one of the features of the pandemic, remember we were talking about this at the time, is people were choosing to move out of metro cities and move to

the suburbs for more space. have we seen an end to the trend? are people starting to come back into the city again? >> if yyou look at where house prices are down the most, england and kent. they have overshot slightly. prices are 3% or 4% year on year. that is reversed. i think where prices are still rising is the affordable housing markets in the north of england and scotland where homeownership is accessible for first-i'mtime buyers. the south of england is where the squeeze is happening. the more mortgage rates fall back toward 4%, the more that will support activity. >> i guess we have been talking about the direction of travel for 2024. wehave not looked back at 2023. the fact that house prices did

not dip as much as people expected in the context of raising interest rates. given the amount of media coverage there was on the topic, you would spexpected the home prices to be deeper. why do you think the housing market was resilient in the end? >> i think the bank of of engla saw a problem building to give people huge buying power. it capped that buying power and introduced controls in 2015. lots of people paying 1% or 2% on the mortgage and the banks were testing the 4% to 6% mortgage rate and limits the high-to-loan income mortgages. that stopped the credit creep that tends to overshoot prices and as the prices fall. the mortgage regulations and we didn't think prices would fall that much because of the regulations. they come at a cost because it

is pricing people out of the housing market. as mortgage rates fall, on the rate we pay, banks with still checking if you can afford an 8% mortgage rate. we need to see the stressrates come down in 2024. >> what about the mismatch with housing supply and demand? that is a long standing issue when you think about metro cities. how does that look? >> the house building industry has cut back in the face of uncertainty with the number of homes built. there is pressure to maintain at current levels. i don't think 2024 is the year when the house building industry puts its foot down and building more homes because the transaction outlook is not where they need it to be. i think house builders would expand if they saw volumes improve. improving mortgage rates en encourage building. the long run with the mismatch in the uk is here to stay in

2024. >> thank you so much for joining me today on the show. richard donnell from zoopla. coming up on "street signs," we are looking ahead to the jobs figure figures. we wl rhtac ilbeig bk. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half

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welcome back. private sector payroll rose more than expected in december according to adp. that is a substantial rise from november and pointed to continue robustness in the labor market. hospitality led the way in job growth. speaking to cnbc, the adp representative said it picked up in the holiday season, but manufacturing is lagging. >> we saw december consistent with the strong holiday travel season and retail season. people were moving around and

buying things and going places. we saw a return to the leisure and hospitality. that fueled that industry and fueled small firms which over indexedin that sector. if we see above that trend in 2024, that is a good sign for the labor market. the manufacturing is a note of caution. we still did not see retail hiring as strong as before the pandemic. we are still low compared to 2019. >> the number of americans filing for jobless claims fell to the lowest level since october. down 18,000 to 202,000. continuing claims fell to 1.85 million. the latest signs of the labor market will help shrug off recession fears, but will raise questions of expectations for the fed rate cut trajectory. >>

attention today is the non-farm payroll with the future rate path on the fed. let's bring in stewart clark. stewart, happy nfp day. after the jobless claims numbers and adp figures are stronger than expected, should we expect a better than consensus nfp print today? >> i suppose it would imply there would be an upside surprise, but the actual range around the consensus is large. so, it might surprise to the upside, but it might surprise to the downside, i suppose. the important thing is how close it is to the consensus with the number on the markets, i think. >> how do you think the market would respond to a stronger than expected payrolls print again? there have been upward surprises in the last couple months.

the stakes are different in this one with so many price cuts for 2024. how would the market take it? >> i think that will be the key point and really with the size of the beat which would be important. i think what was priced in yesterday with adp is reflecting a pushing out of the first rate cut. the question if it is a significant pbeat, is it pushin out the first cut, but magnitude of cuts priced in and on top of the minutes where we had from the fed the other day with the magnitude which is really significant. there's been priced in for 2024. i would expect this is a significant beat and we start see not just pushing out the first cut, but expectation with a number of cuts that may have to come under review as well.

obviously, to the comment from the adp economist, the detail will be important if it is leisure and hospitality hiring which is driving this or healthcare hiring which is doing better recently which is all concentrated on a couple of sectors, means it may be less significant to the overall economy. >> what do you make of the language from the fed? the minutes the other day were disappointing for investors who were hoping for more clarity on the timing of the rate cuts and earlier this week, we had fed barkin saying there is potential for additional rate hikes. rate hikes are still actually on the table. what do you make of the mess messaging? >> it's a tough job for the fed this year. not just trying to engineer the soft landing, but employment numbers yesterday, but let us see what comes out today.

they also have the elections later this year. i think the fed was really trying to -- although the press conference and minutes message was messy potentially. i think they are trying to manage what was being priced into the market and saying we are running aside. we are nearer the point of cutting rates and possibly on the pause. you are getting ahead of yourself and we are trying to manage your expectations and bring things back to the realistic level. >> what are you seeing opportunities in the market, stuart? it sounds like you are in the soft landing camp. where do you see the most opportunities then? >> i think we actually have been more cautious side in our portfolios. we are looking at the employment numbers pushing us to considering more of a soft landing scenario. that is a more difficult feat to

achieve. within the portfolios we manage, we have been over the last couple of rebalances we have done, we have been trying to spread the risk across the broader cross section of the market. it is not just driven by those magnificent seven that did so well last year. we saw that at the back end of last year with the the rally broadening out. i think if we think about the expectations, which are priced in for earnings and the current valuations which are in market, we have to consider more stock specific opportunities rather than just broad index beater at this point. that might be further down with the market cap spectrum with the names which got left behind for the majority of last year in favor of a few specific stocks. >> let me take you to the price action then. given it is the first trading week of the year, stock markets have not started off on solid footing. i know it is early days, but

sentiment matters in the markets. the fact we have had consecutive days of declinesesdeclines is n signal for the market. where do we go from here and what would it take for the market to price some of these again? >> i think clarity is always useful for the stock markets. the market had done well at the back end of last year. that rally had broadened out a lot of assets which did well in the last six weeks. valuations came up as a result. i think if we can see more clarity around the path of rates and start to understand really what is the driver of those rate cuts coming through and if it is because inflation has come down and it is a soft landing and employment holds up, that can be positive for markets. if rates come down and we are

transitioning to a soft landing to a shallow recession, then that could be difficult for risky assets. we don't want to take too many significant positions in the portfolios at the moment. we wait to understand the econo. >> always tricky especially at the beginning of the year. stuart, thank you for joining me on "street signs." before we round out the show, let's look at european markets. it is another day of red for the european indices. the big story we have been talking about today is the one about china and they are looking to launch an anti-dumping investigation on brandy imported from the eu. no surprise that the cac 40 is the index under performing down 1.1%. it is, of course, the one that contains the spirits makers and luxury names. all are trading lower. the dax is down .80%.

this is in response to the jd sports which is a big mover and it is pulling down the retail complex. in the u.s., one stock we have been watching this week is apple. the stock is down more than 5% this week after piper sandler is the second to downgrade the company. the move puts the stock at the lowest in eight weeks wiping out $170 billion of the market cap in the first trading week of the year. keep an eye on the apple stock. do not forget the nfp numbers later today. that it is for our show. i'm joumanna bercetche. "worldwide exchange" is coming up next.

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it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we start with stocks on track to snap a nine-week win streak as investors wait for the december jobs report and what that could mean for the fed's next report. and also a part of the week long slide for big tech and apple with the stock possibly headed to a place it hasn't been in a few years. following chevron's lead, ex ex exxon mobil warning of a