>> continuing the cue wi will make the problems deeper than we think. >> thank you for joining us a.d.s. security market strategist. let's bring you some headlines this hour. german chancellor angela merkel

piles the pressure on greece and italy. >> six days from the japanese shows a deeperua setback. >> china sets records. qantas looks to benefit from falling fuel costs. >> and in china the trade to a is ride -- rising record high. steven joins us from beijing. it's another indicator of what

we've seen for a while. domestic growth in china slowing. yeah, a couple of things going on here. you're right, the continuing slowing pace of growth here. so that'slessened imports but also the fall in crude prices to that five-year low that drive down the value of the import. so we saw a fall. export growth. it was much weark. imports as you said surprisingly contracted leading to that record trade surplus last month. larry's at mcsquare securities said that china's economy is generally weak and that the fourth quarter that we're in now is hardly an improvement from the third quarter which we thought was kind of the drop. we've had interest rate cuts but it looks like this continued weakness is continuing. we had the p.m.i. out last week. it was the loast in eight

months. these trade numbers are le flecting that scenario. exports growing 4.7% that's the slowest since april. no one had predicted growth of less than 5%. it came in at 47 pn%. imports falling at 6.7%. not a single economist had expected it to go into negative territory. down 6.7%. the price of crude as china import as lot of ilts oil. and that led to the record, you know, high at trade surplus, mark. 54.47 billion dollars. it bait by $10 billion. the price of crude a big factor but also yes, imports have been slowing because of the slowing pace of growth here in china. mark? > thanks, stephen, china's

correspondent stephen engel. >> e.u. finance minister meets in brussel after angela merkel increased pressure on france and italy to reform. hans, is there a solution for greece? and are the markets going to be spooked? >> well, the markets have calmed down in the last few days because there has been a talk of a technical extension. this would be a line of credit that would cover the gap. greece wants to billion underneath the flum the troika. these countries say yes, there's enough austerity there, there's enough structural reform in greece to set them free. this was a key promise for prime minister samaras when he won that crucial no contest vote saying he would be free by tend of the year.

you may have early elections. you may have presidential elections in february for greece which could trigger yet another round of concern. when you look at this price of debt, clearly there's a diver generals there. e.u. finance ministers meet heading into it. i don't want to say explosive but vivid comments from angela merkel. she talked about questioning the intent of france and italy to reform. she talked about the timeline whether or not reaching that 3% of deficit has been in the g.d.p. mr. sapam the french minister on french tv he talked about germany's crumbling lows and their low birth weight. it's going to be an interesting two-day meeting today. >> you mentioned italy.

italy's finance minister jump into the disinflation, deflation debate. what do they have to say? >> he is clearly hinting they need do more to increase their balance sheet. we caught up with him in italy over the weekend. here's what he had to say. >> it is important that the ice dynamics towards his political value. it's far too below. too low. >> finance ministers have longed at least from those countrys that have been anecked talk about the need do something about inflation. for that they're going to need that printing press to open much more wide open and to do that, they're need to get through germans. >> thank you very much. and staring the caldron from berlin. japan and a potential

recession. the third's largest economy is deeper than it actually monstered. , where was the ig shift well, it was a bit of a surprise this morning. one's k more than last 6% contractions. we had in fact, expected to .d.p. data to be revised afterwards. this will be a blow to prime minister abbott less than a week before the general election on sunday. abbe had framed the vote on his referendum. holds more than 60% of seats in the lower house. now, should he retain most of

them or ex-pand his majority, he would have renewed public mandate to carry it out. >> and what are some of the biggest issues that are on the agenda as he goes to the poles? are people talking about his last of structure. what is topping the agenda? >> there are many issues that needs to be tackles. you mentioned structural reform and theus one of them. most people were talking about the prices. he needs to first let -- inflationary policies come through and they still have a long way to go. four customer prices stripped off the april seals tax hike across only $6.2.

now, prices have been vulnerable. we have to keep note that the slight in cruise that's affected in japan. after the 211 fukushima disaster prompted the reaction. already i'm fluid the stimulus and the yen is trading near seven-year low. the weekend was a key point for abbott nomics. smaller firms have been hit by soaring import cost of material. japanese corporate bankruptcies will need it to the weekend tote -- totaling. abbott last month delayed the

tax hike plan. japan's deputy chef cab nat second e secretary saying. this will help economy. listen in. >> to the level in which every to with stand that sales tax be raised in 2.5 years. he wants to make sure there will be a substantial increase in wages. >> the tax hike for abbott still deficit. out the back to you. >> 7:10 in london. join the conversation on twitter. the election takes place at the weekend. will ergo nomic prevail? and he e.c.d. at niner's

that's where you'll find this day an night. >> >> we'll take a short break. coming up europe's budget blues as angela merkel piles the pressure on france and igly. ♪er

>> time for today's company

news. prada's fallen and it's partly a consequence of the protest in hong kong. shares in the luxury goods maker fell as much as 6.7% and reported a 44% drop in third quarter profits. that's the loast level in over two years as pro-democracy rotest weigh on sales. >> the attack took place from ban congress to regis hotel in an episode that cyber security experts says bears the whole mark of soul that's a happyy group with suspected links to north korea. the c.e.o. of qantas says he has no plan to move. one year after these losses of 2.8 billion australian dollars,

they're set to post their first profit since 2011. oyce, on a $2 billion cost cutting program. >> on the cards at b.p. suffering from oil prices. in the exensizz 35% slump crude oil crieses as some could be delayed or scratched. >> greece has agreed on a budgets forkting. what does this mean in the euro. well, americale's pressure work on france and italy. i don't know.

it's under under the bridge really. -- e know the issue is so lack of reform. i don't think it will work. but the pressure is always there. >> it is. you you think they're diluted? >> well, in relation to the forecast inflation. >> i remember that. on his third quarter currency ere. he actually asked things about you. in 2016 inflation will be back to normal. high the they always say in this town.

and if it doesn't -- there's something else to going on. >> we're being questioned by many guest who is come peer. e took about with danny -- >> what is it going to work as as key wi. it's just going to be very, very different and it cannot work in the same way as we've seen in the u.k. and the u.s. so to think that kiwi is going to sort out their relationship. well, it's not like this up.ersation is very already when you look at the numbers for europe, 17.8% you ors are covered bonds. 368 mill yonl you rows of a.b.c. that's not exactly pacing your

way towards a trillion euro. >> absolutely nothing. it's always been sort of pushing on that string because it's time for the landing operation nirmly hat banks would be pacing. investors and banks. that's the issue. cue wi --o some sonch i can wi. italy and spain with -- >> we had pempco siting on that sheet. they should have been prepared lower. but twhuled get the economy going in your view? >> no. what it will all likely do is we know the issue is more structural reforms yeah. the government will sit back and say we can fund at these great levels and they chi lax. >> of the germans -- chi laxing.

>> i don't know french and italian for chi laxing. >> even the bears and germany will be on their backs ssm there a figure side than this week's targeted toe truck. is there a number which eases that purpose. he's there a number which pushes back i can wi in january if at all january is the month. i think when it has three igures into it, yes. >> still paying the last load of he lerms army. thank you very much but i'm paying you back this time. great conversation. what are are they talking about? >> is the euro going to go los

angeleser. i translated it into markets for it. >> they struggle -- this time you need to talk about them and it's very easy. then work out. i can't low fundamentally the case of all the strength is there now. i can't get too upset. i don't see i can wi pushing the euro lower. it could -- again because they thought that's what we talked about. i don't see the dynamic. >> we will attempt to cheer you up in our second conversation. >> it's a festival clear. >> i know. more to talk about with about. we'll be back in 15 minutes. ♪

♪ still with us, it is the fx pro chef economist, simon. let's talk about japan. worst than the polls originally anticipated? we've had a variety of opinion from uni that there could be more sim louse on the way. what do you think? >> more stimulus lightly. what we really need is a structural reform so you hope that's an election provides the

stimulus which it didn't do in up ther higher selections in sort of the last year actually kicks things. in terms of the yen, yeah, we're. we've got a long way. t it's turning into a much weaker curn is si. it's on the current cat surface it's not producing those surface in the back of the year. and it's not trading like the safe haven it once was. it's not benefiting the economy in the same way. it's actually -- it bioled some manna from heaven previously. it's the energy side and it's just not working in the same way they wish too. >> it's not because of the energy imports. tried to get rid of that.

exactly. >> it's a shame really. you no, it's sort of the sange impact as it would have done full. >> it was the 10th straight month we've had 200,000 plus job sides. in he lockest stretches march 91995. >> that treat got -- and that jobs report you're still saying no fat increase last year. has it changed your thinking at all. >> not really, what? >> we did that.

we turned the corner on us. that was a shork, wasn't it? >> absolutely, it was to the upside. that's the real kick of it that she was saying -- >>.4%. we can but with the u.s. and other economists we've been in the situation for so long. what is structural and what is. and the fed, yes, they -- what are we looking for. five year. until you see that shift infliction current and it's harder than the current become odoch. oh, you' this is going push him. he's up to a level that concerns the fact.

i tonight think they can concern putting rights up. >> they we're going to give it there. no, it does not have it -- >> hey! >> thank you so. thank you so much e're in tera of low oice respond spod. they

>> welcome back to "countdown" this monday morning. the dollar is rising. i hope it's still rising. it is. there you go. 1122.7. you are looking at a nearly five-year high. the jobs report was strong. 32,000. the dollar is rising. we had two key guests both

talking about the game of 2015. it is a dollar strength game. this week, you have consumer confidence along with retail sales which will teed a more rounded picture. so they're continuing to rise. 17:26. he said to his dollar, running o it of the steam that yam weakness. it's just getting harder and harderer. the bang for your buck should be on her. have a look at new zealand ollar and the osie dollar. 82.74. they've got a central bank meeting on december 11th. china disappointed. ims declined -- that may tell you bigger story where they have

such a symbiotic relationship. t's a morning for big wortsdz. thanks jeff. >> it was boosted by an unexpected decline in airports on lower crude and oil prices. >> government offices and schools have been close demd the philippine capital of manila. typhoon continues to cause widespread disruption. 900,000 people have beener vag evacuated. you have within suspended in manila. >> plark is setting aside his own boor. . and the strength test of best. they're receiving an increase of about four%.

the results of the stress test will be released a week for tomorrow. the bank of national segment said pro congresses values. it want the jet level. companies by brazil, india and china, under estimate it. the drop in price in oil lane and to reexample their over all weekend. french oil he splower there's go get a lig more on the stories. i mean, i are you shocked in terms of what you see. zpwib we think of oil is a number but actually there's hole it.

aybe it's slash baby and emergency. of a defensive nature consciousn't being consumed because of the price of oil. 13wr maybe they have to go throughout and team up with somebody else. porned 2 the big is c.f.o. aing they have and to cut costs. he said they would be looking at cutting employees ling 48 they surely makes them one of the biggest guy to fry with them. hey are a smaller. i do intend to raze you back. at theirt the you look down. so the company is saying we have

room to do that in in the back. now that we're settled here what ahere's to be it. ifs the. we're going to get the oil and i from the j.i. over don't know what they're going to do with their production portfolio. >> there ahead in brazil saying if oil stands where it is right now for 2002 years. . this downtown sound like an but it's a bit more complicated? >> it is. when you look at b.t. shares since the cle cline they had logic dick takes it is not headed in a good space.

seventh new upstarts or start ups. she that's for them. they've said that they have like most comments to cuts bads. and you know when you have a falling rices. it's police maybe this is a little bit of a silver lining many . my condo is most influential on the. a couple of big events. expect the ruling they'll be fork to they the it. that will happen some time 234 january,. and of course, they have a 20e% staft. which has been in abiggs by oytings bit in the and somebody's always making fun. >> that's australia longest.

bs done asked me. d.c. westbound slort of 1014 person at the moment. nearly four years. i seal hannah checking the numbers there. are st i mean, these extraordinary with wubbles. and the reason nar today the big gabe was the company's now forecasting five they posted a profit for 2 first time of the ear. it's more about the cost cutting play. that their floil has been. that that's one of the rb. t's like thea chihuahua.

now i've been traveling. whether i ugget up with the affair. tomorrow morning from 6 a.m. london time. you can change us on swite sweatser there --. will >> a what? >> a -- and after the break we'll be back. how khalily will joins missed it. we'll see you in seak.

>> welcome back. 40 minutes past 7:00 this monday morning. sony is aware that users are having issues connecting to psn. there's no more information on it at the moment. but this development does follow sony's hacking issue. north korea we've covered that extensively in the last couple f weeks or so. how fast has the join jones industrial average worked. 17,958 y, dow jones

that's after the u.s. company added 3,021 jobs. this is after friday's record closed was the 35th clothing i high of 20. the longest winning strength going back to november, now the magic number today was on friday 588? nished at 17, 19 it doesn't matter per se but for the purpose of today's bar, it's not the number that matters it's the pace that it got there that mattered. verge dow is on the 18,000. only 1575 days since first losing above 17,that tease

yellow circle on july the 3rd. if it gets there westbound 188 days. it would be the fifth fastest trips within thousands with. . the record being 35 day. in may. 1999. independent hasn't exactly been a straight life. index en light is 17 the from there closed almost nine points. before rallying up until friday. 1840 points. that's 11% to get to friday's record that's the start of the day. the dow jones has only 33 days o rise 42 points quite a

bofment. it's fifth largest trip between thousands. will you make a bet on "dow jones" 20,000? >> do you dare? >> very dramatic. within the thousands. beasley joins us from the investors. thanks to u.s., sheal, drillers,. what momentum do you see behind the u.s. -- >> the i think we've put this whole year actually in caughter. it hasn't been a year that most --. it's been a challenge bull market. it's been a very narrow section of the wigger companies. missing about and the investors have been nervous about what

happened next. the oil fuel is driving some into the u.s. a and it is marked economies. price ir not oil key level. because the longer it stays longer. the more asem industry on the arkt three. so is the benefits of con surpgs . i think in the euro zone it's a interesting debate. clearly. it's. we are watching for furrer inflation. he clearly is eaa defending pressure. can and so dom dreams of making that point. in his presence conference. be slightly ight

bunish on the dem. when you look at the action of the markets on thursday when droggy did not deliver cue wi has been market for the taste of things to come if they don't every exactly what you do. and it didn't fall that much sbmplet they didn't get the key. . we know there are uncertainties. >> the points are a red one. we need to replace him in antoine. then the outlook the not good. this is what makes the investors nervous, while we're still in the world. a very macro crifpble. it. s how we spent in europe, in japan.

about e been talking with the understands. . are they obsessing about the communely will be able to do. at the moment is where they go in 20. yeah, that has been yipple. > the you yo zone. could be.ed a mer tiesing his. so we were told by the security and in places like it it will. you are. now at some point that will this is and that's so touch for advertising. was it black control. and we nide to go.

it hand togs to the challenges. your front mack. have you plannings it all the time. but the question is what do we do in your. i think the key is the other period. hich and they. in a. several h or maybe years away from returning if every. how do these companies entertain from that. we have cash flow until i am to funed the yurpegs and how those things actually knuck out. or how long it stayed. and will spend more money. how do they -- >> but again it we know that tax

plays off at good part. stimmed. a lot less locker room to change the backer or say japan. it's country by country. >> thank you. >>. 7:59 here.

>> welcome back. monday morning. we'll see what's on the thoughts and minds of henderson global investments. the yen keeps falling. we have a snap election. how do you look at financials. the next step is about structure reform. if another one said a dozen have traded and know how to play it. reform in the japan. you can stop on pan date reforms in japan.

nd they will likely be beneficiary. scombr perhaps some p.f.i. really british opportunities. but one'sability to spend in those. so lackey, japan. that's been a problem too because margins have been under lot of pressure on japan. if that happens too aggressively that will be depreciating in value. >> most companies sit at the forefront of your company. >> how do we make money next year? >> i think it's a lot tougher. a year before that i would have told you abouts. you know a loft people in the conversation are be used about

-- they want to talk tell told you that it's some time soon. this is -- this would be the sixth year of market rises. the question is whether some of the delays and postponements in the circle in europe. is. . i forgot to get a developed market world. this could be a deliver of both en. at does that and the bidding for control. but sor more just yes of that the gross shouldn't. and we talk about will test. and that may be the case. what's interesting is how you have plentyful toorpt class

board. that's being spired orn by the level let eems and the cost of debt. that continues into next year. and i cd but ce you wally sat down domestically and expose to whether you're coming from. and that's about to depends cutting-- and that v.p. obs potentially. how does that pro-theme -- what that's what's been rinne in ama.

. yeah, i can't believe you're seeing i can't believe the assets. -- t now and >>. easily from enderson. alex will. see it tomorrow.

>> the bank of international sentiments rings the alarm again. the growing fragility hiden etween its bowiansy. 300.hai breaks

budget with a different left. forecasting almost no deficit at off. zone finance minister. big rally friday. we'll talk about that as well. but down by 29 points that's what feature markets are going. >> hey, john. thanks for that. this week is all about how much do the banks take from the european central bank? the dow, touchy 10 points away from that point. slows dyinging germany that delivers.