jobs in the u.s. as the market prepares to scrutinize numbers in search of good news. state sponsored rebound. chinese stocks gain as authorities scrapped their circuit breaker and national funds are set again. investors remain on edge after losing $4 trillion in four days. welcome to "the pulse" live here in london. i'm francine lacqua. let's check in on the markets. a respite, we breathe after a

brutal week. mark: calm has been restored and markets after what you say has been distribute - -a turbulent week. reference rate barely changed today. state-controlled funds have been propping up the stock market which did rise today. the shanghai composite this week biggestnking 10%, its drop since august. the world worst-performing global benchmark this week. down by 5%,ex is its worst performance in four months. has been wiped off global stocks. i want to show you what is happening to emerging-market stocks because yesterday the msci fell to the lowest level since 2009. but after china stepped up efforts to stabilize financial markets, it rebounded from that six-year low. still this week, it is down by

6.5%. it matches what happens to the yuan. swings tend to impact currencies. those countries are china's biggest trading partner -- south korea and taiwan. index tracking currencies across the region has fallen to its lowest level in six years. the bloomberg dollar spot index is gaining for the ninth day in 10. a couple of points shy of the all-time high on wednesday. we are gearing up for the u.s. jobs report which takes on ideal importance amidst this turbulence we have seen across financial markets. economists expect 200,000 increase in nonfarm payroll. the fed indicating rates will rise four times this year. a weekend jobs report could widen expectations between the fed and markets, derivatives pricing two rate hikes this year. gold losing its luster.

it has risen for four days. it's falling today because of those measures taken by china. but still on track for its best week since august. francine: now, it was indeed a volatile trading session in china. it was volatile today. endedwas volatile but it with gains. this is after the government scrapped circuit breakers. enda curran joins us from hong kong. always a pleasure. what exactly has china achieved? we saw a lot of turmoil. does it mean they got cough guard? -- caught off guard? rid: it looks like getting of the circuit breaker turned out to be the ultimate circuit oday managed to install a little bit of calm on the equity side of thing in the currency markets. this is so important compared to

yesterday when the central bank came out and cut the reference august,the most since shocking the market, sending ripples through the equities market. and, of course, that is what triggered the trading halt. it raise questions about other regulators in china talking to each other? what is the big picture? they are sending confusing signals on the currency and on equities. obviously, they had good meetings last night and good telephone calls and they managed to work out a script. today they put aside the idea of a circuit breaker which people felt had been conjuring to volatility and the central bank is trying to keep things nice and calm. by all accounts their aim was stability and they achieved it to some extent. francine: how do you wrap up the week? what does this tell us about chinese thinking? because that is what we are trying to understand. they had problems stability. transparency. isaiah going back on their word

or are they trying to figure out what is going on? -- are they going back on their word or are they trying to figure out what is going on? enda: they left a very confused state behind them this week. the message is quite a confusing one. the broader picture in china as one of a modernizing, transforming, liberalizing economy. be and while there will bumps in the road as every emerging markets, people are surprised that -- the extent and scale to which the hand of state still wants to keep meddling with the market and are not willing to let the stock market find the floor on itself. they are not willing, or they putting a floor under the yuan even though they say they want to free it up. the markets have been left -- they have taken quite a dent. in their defense to step back and you say this is a massive economy. what they are trying to do is a massive transformation.

no emerging market in the world has achieved mature advanced status without capital and market interruptions and complications we are seeing as china tries to open his capital account. those are points in their defense. in the near term, there is a view that china has explaining to do. francine: that is probably fair. thank you so much. in hong kong. now let's get straight to our guest this morning. cross bridge capital strategist and head of investments where he manages to billion dollars in assets. great have you on the program. i'm so glad to see you survived the week. it has been so brutal. these equityot of markets are stabilizing. is there one word that you would summit up with? the circuitow brigade is -- the circuit breaker is gone. it was badly design because she the circlehad 5%

break it will get -- the circuit breaker we get triggered. china is the largest trading nation. the largest creditor. what happened in china matters. my view is that the global growth is slowing but not crashing. even if you saw the -- which has been lowered to .7% -- notcine: did the week actually show policy mistakes? circuit breakers were badly design and something did not work out. we have gone back to the china we knew several months ago -- intervention is. yuan isthe chinese going to get weekend. that is where you saw the stronger fixing. because china was to control his capital flow. it intends to open the capital,.

to give you an example. when israel tried to open the capital account in 1978, they closed it in two years time it has such a bad run. the challenges that china is facing. francine: i understand the challenges and we need to give it more time but as an investor, what does it mean? or pretendss risk that china's financial something goes wrong? it has a profound impact on commodity markets. [indiscernible] local players are playing a bigger -- francine: it also had an impact on oil. you forecast the oil price in setting up valuations? francine: thank you so much for now. he stays with us. we have plenty more to talk about including the yuan. plenty coming up. will the jobs number out of the

u.s. be good enough to reassure markets jitters after the week's china rout? we go live to new york for that discussion. then too big too value. company.abia, an oil is the era of cheap oil taking its toll. the china is hit by contagion coming up next. ♪

francine: welcome back to "the pulse" streaming on bloomberg.com in your tablet and your phone. before today's free, china's stock market lost more than $1 trillion in the first four days of the week. yesterday the dax fell below 10,000 as investors worried what it could mean for europe's largest economy. let's speak to michael fuchs deputy leader of the christian democratic union and a key ally to angela merkel. forael fuchs, thank you joining us. happy new year. how badly are you concerned about the china turmoil? how badly will that affect german business or the german industries as a whole? michael: first of all, china is a very important partner to us. is having if china

trouble, it is troublesome for our industry, particularly the big ones like car manufacturers and chemistry. on the other hand, i do believe that china is getting back on track. china is still talking about some percent growth rate. -- 7% growth rate. it is a decent number. so, i am not so pessimistic that china is going to be in a deep crisis. so, we are expecting that it comes down to a certain level now. and then it picks up again because china has to grow because only if it grows they are capable to manage their country. francine: what was clear in the last couple days is that european stocks took a beating and were in expansionary mode. with the ecb adding more q.e. europe seems to me sucked - - seems to be sucked in by the

rest of the world. look toowe should not much into the stock situation. the stocks are nervous. it starts with a bad side from china after they blocked the stock exchange for two days. but i have been working in china for many years. sometimes the chinese are a little bit exaggerated. and also gambling too much on the stock exchange, much more than european dealers are. we should not be too dramatic. feeling the whole situation is overdone, over exaggerated. i believe in a short time people will see that china will still have a decent or reasonable clo se rate and not knocking down western markets. neither german nor the other ones. francine: michael fuchs, we also heard the last couple of days

and i guess this would be another one of the main problems would be the refugee crisis. we heard about the seuxal -- sexual assaults in cologne. that impact or make angela merkel's job a lot more difficult when dealing with refugees? francine: definitely michael: definitely. what happened in cologne is not bearable. it is foreally terrible. we have to react with all forces of the state and we have to -- the police asked control the situation. it has gone fully out of control. it is really terrible. we have to do something and we have to react. i know we are sitting together over this weekend together with the chancellor and we are looking for some points which would change in the law in order to be more fast, more decisive with refugees. and the refugees have to accept they come to germany. they are very welcome to come,

but they have to accept our laws. that is something we have to make clear from the very first movement. and those guys who are not willing to accept german rules, german law, german practices, they have to go back. francine: but you are talking of course about rules and regulations. do you think it will force angela merkel to put a cap on the number of foreigners allowed into germany? michael: it is very difficult to put a cap. 500,000,put a cap of what do we do with the poor guy coming from syria and he is 500,001? i do not think this is reasonable. we have to go to the sources. we have to go to syria and turkey and lebanon and so on where they are coming from and to try to find solutions over there. in their respective countries. even in africa, or eritrea,

somalia, nigeria and libya. we have to do something over there because unless we stop it over there, we cannot stop it if they are europe already. what do you want us to do? ?ut a fence around germany impossible. francine: does it actually put angela merkel -- at risk? it seems more and more far-fetched to make sure the outer borders allow more people in. what impact her thinking on that? michael: no. first of all, we have to find solutions abroad in those countries where the people are coming from. of course, and understand it is not easy to find a solution for syria. and it is also not easy to find a solution for turkey. but anyway, this is something has to do together. we have to put our forces to build up a new -- to enlarge the

frontex situation. it is not enough funded, not enough people and things like that. that is what we have to do. it cannot be the case that the people are coming over the sea into greece, into italy and then they are all going to germany. that is not ok. and there is another point which i like to mention. europe has to do some kind of solidarity. it is not the case that just germany is taking all of refugees. it is also sweden, denmark. and there are many other countries profiting from the e.u. system, profiting from us to pay into brussels 30% of the net dollars is paid by germany but we cannot pay 30% to the e.u. and at the same time take all the refugees. that is unfair. i expect more solidarity. francine: interesting. this will be one of the things aat can -- puts europe at

crossroads and divides europe. you are advocating on the show that it would be wise to let greece leave last year. we have moved on from that but we look at brexit. how concerned are you that david cameron will not be able to renegotiate in this country may end up leaving the e.u.? michael: i didn't get you right. are you talking about grexit or brexit? francine: brexit. about the u.k. michael: it would be very terrible. it is vital that the u.k. is a member of the e.u. we want to work together with them. i think it is absolutely necessary. the four main aims of renegotiating, i can understand them. economic governance is the only thing which i am a little bit concerned. i would put it like this. you cannot be not a member of a

club that you want to have the same rules. cameron is talking about he wants to have the same rules like the eurozone has without being a member. that is a difficult point. but all the others, talking about competitiveness or talking about immigration, talking about sovereignty and talking about red cards to brussels of their coming up with nonsense bureaucracy, that's all clear and we are very much on the same side. and also, particularly competitors -- is a target for germany to do it together with your country because i want to say, well, the southern hemisphere is talking a little bit different than us. in.we need u..k. to stay francine: thank you so much. plain talking michael fuchs, the deputy leader of germany's christian democratic union. i want to show you the markets because we saw them stabilize yesterday. ll below 10,000.

today it is not. stoxx europe gaining 0.5%. the yen has been used as a haven all week. for the first time -- it's the other way around. we will see you in a couple of minutes. we will be back for our guest's take on the market follow from this week's china rout as we await job numbers from the u.s. ♪

francine: welcome back to "the

pulse" live on bloomberg tv and radio esteeming and your cap -- and streaming on your tablet and phone and bloomberg.com. nish, overall you are pretty confident china will sort itself out. we have to give it time. are we going to see much more volatility in the coming months as we try and figure out a, what the fed will do and we find maybe a new normal? going: i think there is to be volatility. if you look at the jobs report coming up this friday, it is slightly better. how the market has reacted, the market on average has been -4% to -7%. you will see volatility continuing into march as well. overall -- some people them and saying that in 1984 when the oil market crash and lots of bankruptcies, -- then the problem was inflation. here the problem is deflation. the market things it will be out of the deflation trap. francine: you do not agree with

george soros. don't think so. i'm forcibly i believe that we have a bigger deflation problem then and inflation problem. i am not in the camp that will raise the rate. those become apparent when you start seeing the rate numbers. there is a whole discussion about the middle income shrinking and middle cash renting. but is not going to grow in what are -- grow in one or two years time. francine: you have the opposition were fed expects for great heights in the markets do not believe them. the jobs number today is so crucial because we will look at that wage growth. manish: true. wage growth is the number to look at. i think the jobs number will be slightly positive. you might get a tick down as well. [indiscernible] how does that impact the earnings-per-share on the stock market? my view you might have a 200 point swing containers throughout the year. 1850 is my range.

i do not see you knew -- francine: what do you do with treasuries? manish: given the rescue, you still buy. because it gives you more than 10-year yields that italian bonds. it gives you better safety and then you play the market. francine: if we get a big disappointment today, does it mean the fed will live hike at all? -- will not hike at all? manish: you had the commentary last night as well. we have the fed coming out in december to show it was dovish. there was a question about whether it was a place -- a close call. some people will run ahead of themselves. but my scenario is that growth is not very strong. deflation is going to be a problem. we will see big topline growth. you have to play some stocks. francine: thank you so much for all of that. at cross bridge capital.

now, coming up on "the pulse" to new yorke head ahead of the latest jobs data and look at chinese stocks again. ♪

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sounds like my ride's ready. don't get stuck on hold. reach an expert fast. comcast business. built for business. francine: welcome to "the pulse" live in london. i'm francine lacqua. now, we are getting breaking data from the u.k. mark barton has details. trade deficits narrowed in november. it drove down the cost of overseas goods. billiontfall was 10.6 pounds compared with 11.2 billion in october. that's according to the ons, the office for national statistics. economists in the bloomberg survey had forecast 10.5

billions. by one point 3%. imports declined by 2.5%. oil imports fell by 18%. the trade deficit, including the surplus on services, narrative 3.1 7 billion. this modest improvement may not be enough to prevent trade once again exerting a drag on the economy. the total trade gap will widen in the fourth quarter unless december sees a deficit of 2.1 billion pounds or less. trade last provided by the way -- in 2011. one of the problems from manufacturers in the u.k. is the strength of sterling. and interestingly, as we were saying yesterday, sterling fell to the lowest level since june 2010 against the dollar. the pound is rising against the dollar today. this is a chart for 2016. it's up against the dollar for

the first day this week. what i have done as i looked at the level of sterling against its basket, against the trade weighted index. since augustngly, when the bank of england cited the strength of sterling as a it helpsecause manufacturers ability to export and it pushes down on inflation expectations. since then, the pound versus the leadingas fallen by 5%, onto a very interesting bank of england meeting next week. will the pound fight sterling sweetene -- sterling's weakness since its august meeting? a weak pound moves inflation expectations and the u.k. in the u.k. -- and inflation in the u.k. is next to zero. sets us up nicely for thursday's boe meeting. francine: the pound to move a lot in those four days from now. mark barton with some of the key

your the key moves in asset classes. caroline: thank you. are mounting that the global smartphone market is losing speed. after samsung missed estimates. demands have been waiting for smartphones and china's economy slows -- demands have been waning. apple closed below $100 yesterday for the first time in a year. meanwhile, apple has bought -- the company specializes in facial recognition technology that interprets people's emotions as they watch videos. artificial intelligence has become a strategically important area for apple that seeks to build smart software. and vw may buy back tens of thousands of diesel powered cars in the u.s. in an attempt to placate regulators. the german carmaker expects to

re-purchased 50,000 vehicles after concluding it would be cheaper to do so then to fix them. -- than to fix them. francine: now, germany's dax has had a worse start to the year then ax in athens. it fell by 7% this week. fresh data seem to confirm the impact of slowing emerging on europe's biggest economy. now, for more on all this, let's get to hans nichols in berlin. how does the dax compared to other developed markets so far this year? hans: i love talking about this year one week into january. we can say confident this will be my best hit of the year. we are only a week in. at the close on thursday what we heard on the dax, down 7% of you compare that with some of its peers. it is doing worse than athens,

better than the one in hong kong. where you look at where it is compared to what the statse hsa dax is havingthe difficult start to 2016. hong kong, germany, japan -- we go all the way down to france, u.k. in the u.s. thet of this has to do with situation in china. we just got trade numbers out of authorities in germany. when you look at the trade profile of germany, china is biggest trading partner. then netherlands and the france. then you get to china. that is when we see an industrial production number and november, potentially some weakness there. in some ways, this is an out of story. we have been talking about this for the last two or three months. in some ways, with mercedes, the number seven holding up. take a look what the dax is telling us about the help of the german auto industry. it is not just volkswagen. it is down 14%. mlerit is also bmw and dai

down 10%. it is an auto story leading declines. that is one reason why the dax may have a difficult 2016. but you are already having a fantastic 2016. your best start to the year yet. francine: those three minutes were my best three minutes. hans nichols of the year. hans: we can do a lot with that but we won't. be endless.at would hans nichols in berlin. let's get back to one of our other top stories. we have china and u.s. jobs data. turmoil plunging commodity prices and the global effect of a stronger dollar, the report will be closely watched. also because there is something the fed says they will do, four hikes. and there is what markets actually expect. for more on what we can expect from jobs data let's get straight to our economics editor michael mckee. what will investors be watching out for today? i imagine it would be wage growth. michael: because the headline

numbers, 200,000 jobs created, 5% unemployment, same old, same old. the focus is on wages. there has been an ongoing debate at the fed on when low and falling unemployment would push up take-home pay. that could happen in december. there is statistical quirks with decembers numbers but even if we get a flat reading, no change, simply having base effects, the process of adding up the last 12 months would push the average annual wage gains to 2.7% and that would be the highest since the great recession. so, there is a number to look forward to that could cheer investors today. francine: michael, every month, it seems we are talking about how important a u.s. jobs numbers are to the global market. is that still the case because there is this different between what the fed is saying and what the markets believe? michael: it is true that it will be important today but not as important for the same reasons, because it is not going to be about what the fed is going to do today. if we get a strong number, it

will keep the fed on track but nobody is talking about a rate increase until march, two months from now. we will have two more jobs reports. a lot of data to influence their thinking. but if we do get a strong report today, it will reassure world economys that the u.s. is still strong, still on track. at could have a major impact on market sentiment. francine: how much does what happened in china this week, pretty brutal, how much does that matter to the fed? michael: it does matter if it continues and if it were to continue to cause ongoing problems for u.s. markets and additional import it deflation to the united states. the chicago fed president said yesterday they are monitoring it closely. what happened in china in august increase in a rate september. if the chinese government has or underto put a flo equities by the time we get to march it will be forgotten and the fed will make their decisions based on what has

happened in the united states. i am looking for to 8:30 this morning. i cannot top hans' best three minutes but maybe we can have the best jobs report of the year. francine: that was the best three minutes on the jobs report of the year. we will hear more from michael throughout the day because it is a big number. as we wait for that jobs number out of the mess, let's take a look at follow-up from this week's trading rout in china. guest joins us from his offices. great to have you on the program. when you look at the first four days of the week, it was brutal. there was so much sentiment about investors or investors were frazzled. there was classic risk on risk off mood. are you expecting it to smooth out a little bit as we figure out exactly what china and the people in charge are thinking? simon: yeah, i think we are in a classic risk off moment,

similar to the august turbulence that coexisted with the first evaluation of the chinese yuan. but you have got to look away from the equity market of what is going on in the policy market in china right now. lending growing at 15%. there is a fiscal expansion of 26% year on year. it is starting to bring forth some of those growth projects, the infrastructure place. and collectively with the devaluation to support exports, the real economy has got a massive arsenal of policy tools being thrown at it. you are also seeing some of the real estate numbers started to move back into positive territory. it is really important in moments like this to differentiate what is going on equity markets and what is going on with the real economy. francine: in terms of thinking of the pboc and the thinking of chinese officials, we were promised more transparency. we were promised more stabilities.

is that coming back on their word or how to figure out how to stabilize in the future? we are notink getting enough transparency about the long-term view of the pboc regarding that devaluation. in most people's models, they are expecting the yuan to go closer to seven against the u.s. dollar and a series of gradual devaluations over that period of doing it in small steps. but what is the ford guys -- the forward guidance? to me, it has been absent thus far. these kind of events when equities go right, there is uncertainty around the terms of trade here. some of that big dollar denominated corporate debt in harders going to become to service if that's speed of devaluation goes faster or slower. for the pboc, the real challenge is getting better with its forward guidance. francine: how much do you worry about the boj? they are struggling to achieve their targets, and then you had so much yen strength this week

which is the last thing they need. simon: yeah. so, the boj, that yen-chinese yuan cross rate is absolutely material to the regional currency war. it puts the ball back in the boj's court to come back with more q.e. adjustments ine the december meeting but i think they will have to do more, because the exchange rate has really moved against them in recent sessions. to that is going to start damage japanese manufacturing which has just been showing signs of starting to stabilize. francine: what about europe? it's crazy. the first four days of the week brought all of the angst we had but distilled it and ball down and exacerbated investors' fears. correlation between what happened in europe and the rest of the world was huge, but we have such a comedy to policy from the ec -- accommodative

policy from the ecb. simon: lower euro starting to come through. the manufacturing pmi at a 20 month high. from a low base, things are starting to pick up. the question is how much of this is dependent on the never ending set of stimulus from mario draghi. in 2016, is less about what mario draghi is going to do because no he is going to continue to provide monetary stimulus. but we have to start seeing and the run up to the residential election and france in 2017, chancellorship election in germany, big structural reform in the core of the eurozone. you very much, wrapping up the week and trying to understand what will bring 2016 to these economies. much bigger than apple.

the biggest company in the world by far. we will ask if it could happen. ♪

francine: welcome back to "the pulse" live from london. energy has been the worst-performing sector in the past year, down 26%. you might think it is an odd

time to consider floating in oil company. what about what could be the world's largest oil company? elliott god can, this is about saudi arabia's aramco. that wouldbe an ipo dwarf any other company in the world. elliott: it would be humongous if it actually goes ahead and the prospect of it happening was given some weight by the deputy crown prince in an interview with "the economist." we do not know exactly how much would be worth because it is a secretive, state-owned company. it does not publish its revenues, but it has said how many barrels of oil it has. billionhas got 260 barrels of oil, figure which has not been publicly scrutinized. barrel,se $10 for each you can come up with the valuation of $2.5 trillion, five times the value of apple.

bile,bigger than exxon mo which is the largest publicly traded oil company. of abdelhamid0 abaaoud's -- of saudi aramco's reserves. there is a possibility of political meddling. and perhaps using something like rosnef would be a better comparison. if you use the rosnef comparison you can get something closer to a vlue of $100 billion. chevron has a market value five times bigger. the truth of the matter is somewhere between that $100 billion and that $200 trillion. francine: so, is it, how likely is it that saudi will go ahead with the offering? e deputy crown prince

was pretty careful with his words. he said that although he is enthusiastic about the possibility of an ipo for saudi aramco it was something to be reviewed. they have not made any decision just yet. of course, he says it would be in order to bring greater andsparency to the company give a boost to the local stop market that opened up to the public to foreign investors last year. get away from the fact that with oil prices plunging this is a defensive move if it goes ahead and simply because saudi arabia needs the money. ipocoudl the -- could the happen? it could be one or more of the subsisted here is -- of the subsidiaries like petrochemicals that can have an ipo. given the deputy crown princess he wants to bring a big bang ievolution to the saud

economy, they may wait to see lessrivatizations -- controversial industries go ahead. whether it is airports and the like and see her much money they can get from those before they see how much they really need to go ahead with the ipo of saudi aramco. so, it's a tantalizing prospect but as of when and if it might happen, we simply don't know at this stage. francine: let's continue the conversation on oil with john ma yer. great to have you on the program. he not only cover oil but you cover a lot of the minors. what a week at has been. for me what is amazing is that actually oil, because of this oversupply, has been trading on china news. john: very exciting week. oil prices still being pushed down and there are a lot of political federation is going on. and the timing of the announcement out saudi aramco particular interesting. oil verys produce

cheaply. it has to be one of the lowest cost oil producer in the world and probably worth trillions. why didn't they float this company when oil prices were much higher? they were not spending money the way they were spending it. go back to white saudi aramco exists -- the way saudi aramco exists. social costs.t of that is why they are burning through their cash piles so f ast. all oil companies require a lot of ongoing capital investment to owing, to keep production costs as they should be. they say, let's bring more money in. let's bring in the rest of the world to share in the profits and share in the capital cost of keeping this business running, whilst we manage the social cost side of things in the way they need to do that. i think what that says to us is oil prices could stay lower for longer and i'm sure we're going to see a 2in front of the oil

price any minute now. francine: lower for longer at these levels or can it actually go much lower? it is crazy for me. if you think of the week. we had the saudi-iran spat and oil prices did not move that much. and investors worry about china and there is a huge movement in oil price. is intent onrabia busting as many of the u.s. as possible.panies those guys have done really well. reducing costs to $35 a barrel. as so many rigs are put on maintenance. so, the americans are doing pretty well there. so, oil prices will come down. inventory levels are high. but also remember efficiency levels are getting better. cars are becoming more efficient. even if they are only 20% more efficient, that means a lot of the growth in oil consumption is going to be offset. francine: talk me through this.

if the oil price goes even further, there will be further investment cuts from oil majors. is it probable that in two years there is a big price shock in oil? john: i think this is what the saudis are after. ls,you don't invest in wel you see 10% decline -- it is going to take a 12-24 months to work through the inventory as things are. it still takes a while to work through this. funny enough, other metals markets will work through it much quicker. francine: even copper? so much needs to be cut for the glut to disappear. john: a lot of the production cuts of happened. just they have not been reported. a lot of the big mining companies when they had a company like bhp, they brought it back in much lower than

anticipated. we think there is a 14%, 15% of the marketout of without it being talked about. we are going to see that in the results of the majors when they come through. it is going to be a tough result anglo for rio, bhp, american. these guys have positioned themselves to guy assets -- two buy assets. . francine: think you so much for that analysis. john meyer a partner at sp angel. let's get to caroline hyde. caroline: after a tumultuous week, chinese markets ended the day up this morning after state control funds intervened against to support stocks. yesterday regulators scrapped t hat experiment with a circuit breakers. the central bank has moved to destabilize yuan. we get the latest u.s. jobs data today. the global effects of the strong

dollar -- the report will be closely watched. payroll gains near 200,000 will probably provide reassurance about growth prospects. a lackluster report will almost certainly act as a wall of worry has washed over the financial markets this week. the global slowdown has hit german and french industrial production. the former saw output sliding 0 .3% in november. meanwhile, france's investor production dropped 0.9%. and shell's ceo says it's taken group remains on track for completion early this year despite oil's decline. the collapse in prices since the deal was announced has prompted some investors to question whether shell is paying too much.

francine: thank you so much. let's wrap the volatile trading barton.h mark mark: china's measures worked. scrapping the controversial circuit breaker system, allegedly buying stocks. not cutting the reference right after 8 days of cuts. whichked for the mcsci, after falling to a six-year low, rising. this is 2016. let's not forget, as an index it is down by 6% issue. gold is having its best week since august. it has been a haven among u.s. treasuries, european government bonds and the yen. last forget it did sink year as it did for the prior two years. indexoomberg dollar spot is rising for the ninth day ahead of the big 1 -- the u.s. jobs report. francine: to wage growth or not

to wage growth. for those listening on bloomberg radio, first word. for our viewers, it is "surveillance". keene will talk you through the main market movers. ♪ we live in a pick and choose world.

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only at a sleep number store... find the lowest prices of the season, going on now. save $600 on the #1 rated i8 bed. know better sleep with sleep number. francine: state-sponsored rebound, chinese stocks gain at the close after the government abandons circuit breakers, the national funds supporting the market. the fed expects four rate hikes this year. the market doesn't believe them. u.s. jobs data today will provide clues. and european stocks stabilize after a brutal week. the dax is above 10,000 points today, but forecasts on the ftse have been lowered. good morning. this is "surveillance." i'm francine lacqua in london. tom keene in new york. it's been an epic week, because we saw all the fears in 2015