welcome. good morning. you're watching "street signs." i'm carolin roth. these are your headlines. autos are under pressure after donald trump targets toyota, the latest in a string of attacks against carmakers manufacturing in mexico. fiat banks a trend thanks to an upgrade. gains from goldman and a boost from barclays also sending dsm to the top of the european equity market. sanofi shares slide as a u.s. court blocks the sale of its cholesterol drug with the french firm saying it will

appeal the decision. san francisco fed president john williams tells cnbc exclusively that fiscal stimulus will only have a modest effect on growth, but says the fomc's aim to tighten policy is appropriate. >> the tendency of the views of my colleagues of one to three rate hikes are a reasonable view given that employment is 1.6%, the economy is growing to 2% and inflation is growing back to 2%. that's a reasonable assumption. good morning. tgif. we have a lot going on today. we have a preview to the jobs report. a big reversal in the yuan against the dollar, but it's all covered for you. let's kick things off with a look at european equity markets. we are modestly trading to the down side to the tune of 0.2% on the stoxx 600. it is jobs day in the u.s. the first jobs report of the year and we're expecting a print of about $178,000 jobs. let's look at the indices one by

one. the ftse 100 eking out a modest gain of one or two points. the ftse is heading for the fifth week of gains. the xetra dax is under a bit of pressure losing 0.2%. similar percentage losses for the cac 40. the ftse mib eking out a gain of 0.2%. volumes are probably lower across europe today given there is a public holiday in italy, spain and sweden. in terms of some sectors. real estate, telcos and banks are leading the performers. let's get out to mike bell global strategist from jpmorgan. it seems like the trump or new years rally in europe and the u.s. is showing some signs of fatigue, do you think the market is taking a breather and it will get back into gear once we see the inauguration or do you think this is the start of a bigger reversal? >> we don't think it's the start of a bigger reversal.

we think you'll see a period of consolidation. you have seen market gains, now a slight pullback, maybe markets will go sideways for a bit. for the whole of 2017, it will be a positive year for equity. probably moderate single digit returns. >> you still want to be invested in equities for 2017, but it will be a show-me year for trump's policies, infrastructure, tax cuts, roll back of some regulation. how do you want to protect your portfolio against some of the shocks if he doesn't deliver? on top of that we have many elections going on in europe what do you do as a hedge? >> i think there's an argument for having alternatives in your portfolio that can provide downside mprotection by hedging out the market. i think the main risk at the moment in the global economy is not so much around the u.s. if you look at the u.s. economy,

you have consumer confidence that hasn't been at this level and rising since 1996. you have the initial jobless claims, which have been the lowest since 1971. and you have both the ism new orders components for manufacturing and nonmanufacturing over 60. the u.s. economy is heating up nicely. when you look at the risks out of europe what is interesting is the narrative clearly is because we have had trump and brexit, people are now saying, there's going to be a problem in europe. actually, you look at the latest survey of people in europe and whether they support the euro, the vast majority of people in countries where there are elections due are in favor of the euro. >> so you think it is outperforming? >> i think the market is pricing in a greater risk of political negative outcomes than is likely. germany, for example, extremely unlikely that any anti-euro

partner gets in in germany. likewise in the netherlands. >> everyone said brexit was extremely unlikely, everyone said that trump was extremely unlikely. how do we know this won't happen? if you look at the polling -- the bookies got it wrong, but the polling for brexit had it neck and neck. if you look at the polling in europe, actually it shows, as i say, in france, netherlands and germany more than 70% of people support the euro. >> there's one french paper out there that has actually stopped giving out polls this morning about the french elections. let's put that aside. i want to continue with your investment vie menment views fo. do government bonds have a place in 2017? >> our view is government bond yield als will go higher.

we think equities will outperform government bonds. the u.s. ten year will probably move up to the 3% level by the end of the year. >> okay. what about high-yield credit? that's done well in 2016. do we see a continuance of that outperformance? >> i think the high-yield credit will outperform government debt but nowhere near the returns of last year. last year was a good buying opportunity because the whole of high yield sold off on the back of the falling oil price and it meant you could buy good credits at very attractive valuations. snap valuation opportunity is not there so much anymore, but we think it outperforms government bonds, but we had been positive on high yield relative to equities. we're starting to think that equities probably look more attractive than high-yield debt. >> okay what about earnings season? it's going to come around in two, three weeks time. we've seen in terms of the pe picture prices have risen quite a bit what about the earnings element of that equation? is that going to match what the

prices have done? >> normally in this environment where it looks clear that the fed will put rates up, i see the pe multiple contract. we would expect that. normally earns growth comes through to more than wraoffset t we expect reasonably good earnings growth with a pe attraction to leave it up in the single digits. overall we're overweight equities. even caution within that overweight doesn't actually leave you underweight. but we think that there are some reasons to be cautious on some of the emerging markets. where potential dollar strength could weigh there. other areas of the uk, we think the domestic uk economy sunday pressure with article 50 being

triggered. in the uk we would rather focus on the economies which have most of their sales coming from outside of the uk. >> mike bell, thank you very much for that. just another note on european earnings. bank of america merrill lynch came out seeing european earnings growth at 11% on 2017 on the back of better growth, and stronger commodity prices. send in your e-mails and questions to our address. it's streetsignseurope@cnbc.com. you can find us on twitter, "street signstreetsignseurope@c me at @carolincnbc. coming up, samsung's latest forecast. we'll be back in two. with the xfinity tv app,

anything with a screen is a tv. stream 130 live channels. plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today.

welcome back to the show. you're still watching "street signs." it's time to talk about the yuan. the yuan/dollar the biggest currency pair of the week. the yuan has had a winning streak against the u.s. dollar, it's down 1% versus the greenback. that's despite the china central bank once again raising the yuan rate overnight. want to get out to pauline. is there going to be more depreciation of the yuan against the dollar in 2017? >> right now they're trying to support the yuan. we have seen the yuan pair some gains, but it has had its best week in a long time. the pobc is sending out a message saying they'll do whatever it takes to support the currency and punishing short sellers. they told chinese banks in hong

kong where most of the off-shore yuan trading takes place to withhold funds from other banks. in essence this was a type of tightening which strengthened the offshore yuan. we've seen a different story with the chinesemarkets. the shanghai composite down a third of a percent. we have a mixed session overall. the nikkei saw impact on its auto sector after trump tweeted out saying that toyota may be punished for manufacturing the corolla model in mexico and trying to import it into the u.s. toyota being maybe punished with border taxes or import taxes. toyota getting hit. japanese counterparts also getting hit on the nikkei. the kospi got a lift from samsung today, which issued its q4 guidance which was much better than expected. they said operating profits for q4 may be 50% higher than last

year. the benchmark ended up flat. the share market there seemed to shrug off the news that the australian economy is in a trade surplus because of rising commodity prices. the nifty has dipped down a quarter percent. it's the i.t. sector under pressure as a news report has come out that two congressmen in the u.s. may be revisiting a bill to current h 1b visas in the u.s. back to you. let's talk about samsung. they expect the fourth quarter to the most profitable in three years. the south korean electronic s giant estimates its operating profit rose 50% year on year with the components business driving growth. this despite the massive recall of the galaxy 7 smartphone over

fire damage. let's go to arjun kharpal. how can they pull this off given the demise over the samsung 7? >> samsung made a big effort to shift away from mobile phones and focus on high margin and high growth areas of semiconductors, memory chips and display panels. samsung is expected to provide the oled screens for the upcoming iphones and strong demand from chinese manufacturers has given them growth. >> it seems they're spending more on semiconductors than the likes of intel and micron. that's aastounding. do you think samsung will make another bet in hardware or steer clear from that? >> i think hardware is a part of what they're doing. if you look at mobile, they're making a big play with their upcoming galaxy s8. we expect it to be a fairly innovative phone. full screen, hardly any bezels. they pushed into new area like

virtual reality. hardware is a part of what they're doing. they're trying to create a big ecosystem in the hardware space. that's the strategy of what you're going to see from the company in 2017. >> shares in the company, as you well know were up 55% in 2016. i guess also in part because of calls from one activist hedge fund, elliott advisers to break up the company. is that going to come to the forefront in 2017? >> absolutely. that's a huge theme for samsung. we saw the younger lee of the lee family take to the board this year. he will play a pivotal part. he's seen as a forward thinker, someone that can drive the company to growth. it's interesting to see if samsung can bow to those demands or ignore them. >> thank you very much for that. the ces trade show is underway showcasing the latest and greatest innovations in electronics and gadgets space.

julia borsen has this report. >> reporter: new super thin tvs are on display, but some of the biggest news is about content on these screens. as technology revolutionizes the tv experience. >> when people opt to take the hulu package, they're in the pay tv system. you will see pay tv stabilize in the country. >> hulu joining directv and sling with alternatives to the traditional live tv bundle, and media companies are increasingly on board. >> when we first approached the media companies with a skinny bundle there was concern, but we were able to convince them that cord cutting is happening. it's happening without sling being in the market. you can ignore it or try to

embrace it. there's a growing acceptance that really they need to segment the market. >> it's not just video content. a range of companies are focused on using technology to bring entertainment into a new dimension with new virtual reality hardware and software. 21st century fox is here with a sneak peek of its planet of the apes experience due out this fall. fox doubling down on creating the vr experiences to sell. and it expects other studios to follow. >> i think you have enough players out there that there's a market developing. so it's not a risky investment to develop commercial ar, vr. so you'll have more players develop long-form commercial content. >> htc's vive debuted any app

stores and a netflix like subscription service for vr making it easier for consumers to find vr content and more appealing to invest in these headsets. if the trends here play out, 2017 could be the year that content breaks out from the bundle and becomes more immersive and engaging than ever. >> it looks funny when they wear those gadgets. we'll have to get used to it. let's get you some of the stock stores. sanofi and regeneron say they will appeal a ruling by a u.s. court which banned them from selling their cholesterol drug after the biotech company amgen accused them of patent infringement. amgen saw shares rally on the back of the judgment. the companies could still agree on a settlement. goldman sachs added fiat to its conviction list.

it has strong sales data from europe, china and u.s. and the bank of england's chief economist says there may be errors in brexit forecasting. he said economic models failed to take into account irrational behavior. the boe has come under criticism after predicting a dramatic slowdown in the uk economy post brexit vote as data shows the economy remained robust. norway's prime minister said she was fearful that britain was on the path towards a hard brexit. in an interview with reuters, she said the uk lacked the negotiation know how to pull off such a complex eu deal. take a listen. >> they are lacking also the type of experience. so it takes a little longer time to develop what will be the right ways to move forward.

we do feel that sometimes when we discuss with britain that they are lacking a bit of the view on how to -- that their speed is limited by the fact that it's such a long time since they have negotiated that type of treatment. i fear a very hard brexit, but i hope we will find a better solution. with brexit to remain a particular era of uncertainty for markets this year, my next guest warns that britain's eu negotiations could prove pivotal for dealmaking in private equity. that guest is stewart licudi from william blair. good morning to you. so far in 2016 how crucial a factor was brexit in depressing the pe deals? >> good morning. certainly when the announcement was made at the referendum result there was an immediate stop. we felt this from some clients we had been talking to and

private equity funds. i think it was while people took a breath and said what is the impact of this going to be. clearly it's had a massive impact on m&a in the uk but more broadly in europe as well. now people are saying it's very difficult to judge exactly what will happen. look at the bank of england.ard that. >> political uncertainty is one area, but the others are overvaluation or high valuations in the market and then massive competition between strategic and financial buyers. is any of that going to change in 2017? >> it's hard to see what will do it. we had so many shocks that came through in 2016. one thing we sat around and said what might happen here is will we see multiples come down? will we see less activity within the deal process? that's absolutely not happened. if anything, some of the uk

deals, in fact, competition has become fiercer. because if you have a good quality business, with good profits, then that's something that private equity owners still want to own once they factor in what they think might happen over the next three, four years in terms of brexit and that business's performance. >> i've been looking at data saying more than $1 trillion in dry powder is sitting in the pe markets now, that's waiting to be deployed. if there are sectors that it will find a home in, what will it be? >> looking at the data that came out yesterday around the services industry. that's certainly attracting attention. we have seen a lot of activity in technology and healthcare. when you look at the uk-based businesses operating in the healthcare industry, that's really a global industry. the fact they're sitting here in london or where they are is not the relevant part. we will continue to see a focus on healthcare and tech. >> how do buyers feel about exits right now given that valuations are so high? in the past that's been a great

incentive and temptation to exit the investments. do you see any of that happening? >> absolutely. if you talk to the private equity community, this has been a great couple of years for them exiting. in the next breath they complain it's a difficult year for them to be buying in, especially buying from other private equity. if you look at the inbound deals to the uk, we have seen greater strategics. last year, for example, we saw the number of business to asian buyers who are starting to get active. you have u.s. buyers looking at the uk saying is this an opportunity for us to buy at a discount based on currency differential? >> what is the average duration of between when you buy and when you exit? is it three, four years? one business high scale? >> it's probably lengthened. everybody used to model three, four years. now it's five, six years. healthcare may take longer. if you're a strategic buyer, you're not looking at that wind

bo window. the private equity funds are more specialist and understand that, understand that they need to drive their returns in an acceptable time frame for investors and be ability to pay the price that people are looking for. >> stewart before we let you go, want to talk about debt levels and leverage in the industry. it has gone up again. i don't know if it's at worrying levels, but it could be worrying if you look at the rise in interest rates. is there concern out there? >> there's definitely concern. when you're on the back of such a great period of time that people immediately start to think about what will happen when it goes down. look at the direct debt. i think i saw a stat that said five years ago there was something like 100 million in dry powder. there's almost close to 30 billion in dry powder from direct debt. so i don't think availability of debt will be a problem for people in the coming year. >> stewart, thank you very much for bringing us that inside story.

we'll go for a quick break. check out world markets live. our blog which runs throughout the european trading day. we'll be back in two.

welcome back to the show.

you're watching "street signs." i'm carolin roth. these are your headlines. autos are under pressure after donald trump targets toyota, the latest in a string of attacks against carmakers manufacturing in mexico. fiat bucks the trend thanks to an analyst upgrade, gains from goldman and a boost from barclays also sending the likes of dsm to the top of the european equity market. the yuan ending a record winning streak against the u.s. dollar despite china's central bank once again raising the yuan overnight. san francisco fed president john williams tells cnbc exclusively that fiscal stimulus will only have a modest effect on growth, but says the fomc's aim to tighten policy is appropriate. >> the tendency of the views of my colleagues of one to three rate hikes is a reasonable view given that unemployment is 6.4%, the economy is growing 2%, and inflation is growing back to 2%. that's a reasonable assumption. ♪

good morning. it is friday, not just any friday. it's jobs friday once again. the first jobs report of 2017. we're expecting a print of roughly 178,000 for the month of december. a steady jobless rate. let's look at u.s. futures while we're at it. yesterday we saw a mixed close for u.s. markets. a record close for the nasdaq. the dow and s&p fell, though they closed off the lows. plenty of uncertainty about trump policies and a softer than expected adp report. the s&p 500 seen lower. the dow jones seen off by 17 points. the nasdaq lower to the tune of 1 point. that leads us on to european markets which are under pressure this morning. maybe running out of steam when if comes to the new years rally and the trump rally on this side of the pond. the ftse 100 off by a smidge. still heading for the fifth straight week of gains. the dax off by a third of a percent. volumes are lower today given

that some of the countries around europe are celebrating a national holiday. in terms of the fx markets, a big and brewing week for u.s. dollar bulls given the reversal in the yen but primarily the yuan as the pobc guided the yuan higher that is reversing somewhat today. the print at 6.9244. we've seen a big reversal over the last couple of hours. the euro against the dollar, pretty much flat at 1.0599. the dollar is gaining against the yen, 115.94. sticking with the u.s., san francisco president john williams says three rate hikes in 2017 would be reasonable. the policymaker explained that the assessment is based on current employment and inflation rate. williams added that any fiscal stimulus from the trump administration would only have a

modest impact on growth. >> my view in terms of the demographic and productive trends we've been seeing for the last decade or so, is growth is likely to be 1.5, 1.75%. if we do more investment in people, technology, more broadly in infrastructure, i think we can shift that upwards. right now, my view is a lot of the fiscal stimulus people have been talking about would have a relatively modest effect. >> head online to see that full and exclusive interview with john williams. u.s. non-farm payroll data for december will be released today. the dow jones estimate is for the u.s. economy to have added 183,000 jobs in the final month of 2016. economists see the unemployment rate ticking up to 4.7%. today's release is the last report of barack obama's presidency. the chief investment officer from cross bridge capital joins us now. do we still care about the jobs

report given that all the trading revolves around the trump rally? >> that's true. i think what we should care about is the wage growth. the reason i point that out, we are getting 2.5% wage growth on the last report. we expect it to be at 2.8%. if you look at that, the tracker is at 3.9%. if unemployment rate is at 4.6%, and i think it will fall, that's where the fed rate hike comes into picture. i'm a believer that the dollar will go higher despite what we have seen the last couple of trading days. that's what i'm looking at. the wage growth number and how that will tie in to the u.s. economy. >> how much higher can the wage number go under donald trump? i hear this argument time and time again. there is not that much slack in the u.s. labor market. employment is tight as it is. how much upside can we expect? >> let's look at this. there has been very small or depressing capital investment.

that has not happened. if the demand comes in, which it will come, there's not enough supply to meet it. that's when you have to pay higher wages to get people to work and produce goods. so my point is that what we have seen is a hope rally. people are bringing forward the earning expectations. i don't think earnings growth expectations come so soon. there may be some disappointment once trump is sworn in the rally will continue later on. there could be some disappointment after president-elect trump is sworn in. >> why do you think this rally will go on? because the hope trade continues and people who missed out on the rally so far need to jump on the band wagon and we'll see this sort of panic buying? >> sure. that's part of it let's look at the other side and what donald trump and the administration is trying to do. i don't believe he will have an overt trade war where people will have tariffs. what has also been discussed is border tax adjustment. border tax adjustment is a massive thing. how it's going to encourage u.s. exporter and discourage u.s.

importers that means you have more things produced locally which will drive local demand and jobs market. that's a turnaround for u.s. >> what about the u.s. dollar? we've seen a bad week for u.s. dollar bulls. it's on track for 0.8% decline in part of because of the yuan's reversal and uncertainty about what the pobc will do next. do you think the dollar can hold up the strength in 2017? >> i think it will. what we have seen with yuan is exactly what we saw last year in january this time, we saw in september of 2015, where pobc came to flush out the short sellers. it has nothing to do with fundamentals. china is not trying to weaken the yuan. when it interferes, it interferes to keep it stronger. >> so, just to summarize, you're still a believer in the u.s. dollar. a believer in u.s. equities. you think the uptrend can continue. where is the biggest scope for disappointment when it comes to

u.s. equity investors looking at the trump administration? >> i think the big disappointment is if this border tax adjustment, corporate tax reduction, this takes a long time. if it doesn't happen by q2 of 2016, people will not carry on with the bullish predictions. that's when will you see a selloff, or if inflation comes, and the fed starts increasing rates rapidly, that's when things correct. so you could have things that could be very well in q2 and q3, by the time you come to q4, the fed may increase rates. in the minutes they said they're more worried about the downside move on the unemployment rate. >> the fed, and the fomc minutes this week, they showed some uncertainty around trump's policies. when it comes to infrastructure, this is a long-term play. a lot of people were betting on this immediate boost to the reflation trade. that's unlikely to happen. >> i agree. that is completely oversold it

will take a long time. inflection is more a private partn partnership. i'm not so much excited about that as much as what he will do on the tax adjustment on corporate taxes. >> you expect euro/dollar parity. when? >> i would say probably by q2 or q3. it comes down to what trump will do about the corp tax wait and what happens to the dollar. >> you don't think it's the european side that will dictate that parity? it's not the ecb, it's all about trump? >> i think it's all about trump. euro is a funding currency. one has to be careful about when the trades start unwinding. >> so, buy extension if you see euro/dollar at parity in a couple months time does that mean you're upbeat when it comes to european equities? >> absolutely. >> what about u.s. versus eu equities? which one do you favor? >> at the moment f you're look at six months, nine months u.s. short-term, two months, three

months, european. >> thank you very much for that roundup. president-elect trump has targeted yet another automaker for manufacturing cars south of the border. in a tweet trump wrote toyota motors said it will build a new plant in baja mexico to build corolla cars in the u.s. build plant in u.s. or pay big border tax. toyota responded with a statement that jobs in the u.s. and looks forward to collaborating with the trump administration. the president-elect has selected former indiana senator dan coates to serve as director of national intelligence in his administration. coats has served off and on in the senate and house since 1981, as a member of the senate intelligence xhitdi icommittee, been critical of russia.

the united states top intelligence official and other spy chiefs testified before congress on thursday insisting that russia was behind the hacks during the election. despite repeated dismissals from president-elect trump, their conclusions found support from both political parties. andrea mitchell has more. >> tonight we're in agreement among democrats and republicans. donald trump has doubts, but they say russia did it. >> every american should be alarmed by russia's attacks on the nation. >> reporter: john mccain calling the hacking of the dnc an act of war. most of the senators supporting the intelligence officials after trump's repeated attacks. >> who actually is the benefactor of someone who is about to become commander in chief trashing the intelligence community? >> i think there is an important distinction here between healthy skepticism, but i think there's a difference between skepticism and disparagement. >> james clapper retiring in 15

days after 53 years in intelligence. serving every president since jfk. saying he is apolitical, but preparing to brief a tough critic, the president elect tomorrow, about the russian hacking report, face to face. >> you're going to be challenged tomorrow by the president elect. are you okay with being challenged? >> absolutely. >> just two hours before today's hearing, perhaps an olive branch from trump. backing off a tweet wednesday seeming to support julian assange over u.s. intelligence. trump tweeting today, the dishonest media likes saying i'm in agreement with julian assange. wrong. the media lies to make it look like i'm against intelligence when in fact i'm a big fan. it could be awkward. also in the briefing, trump's national security adviser, michael flynn, who clapper fired as head of defense intelligence. >> do you think some of this is personal between clap per and mike flynn who fired him? >> i have no idea.

as to the intelligence briefing that's coming friday, i've never met anybody that's been briefed that's gotten any doubt russia did this. nbc news confirmed that the report on russian hacking delivered to president obama on thursday says u.s. intelligence picked up senior russian officials celebrating donald trump's election victory. a senior u.s. intelligence official with direct knowledge of the report told nbc that the information about the celebration was a minor part of the report, adding that the u.s. has also identified russian actors who turned over stolen democratic materials to wikileaks. president-elect trump is scheduled to be briefed on the report later on today. to the next story, i don't know a fitting segue, here you go. this is an amazing story. rehab can be a difficult experience for most of us, but maybe not as tough as it is for elephants. this 5-month-old has begun hydro

therapy treatment as part of her rehabilitation treatment in thailand. this after the baby elephant injured her foot when it got stuck in an animal snare. hydro therapy helps to exercise the elephant's muscles in order to help her stand on all four legs. best wishes to that 5-month-old elepha elephant. coming up, we're taking to the seas for the london boat show. that's after this short break. stick around.

the london boat show sails into tonight today. we go to tom who is at the dock in london.

tom? >> we're here at the boating lake at the london boat show at the xcel center. this little guy is called a sea bob. it will set you back about $12,000. it's not all fun and games. over the next nine days, many yacht companies will try to squur orders for the year ahead. remember that the uk ledger industry is worth over 3.5 billion dollars. so princess yachts, kober ridge and sun seeker, to secure those orders is crucial. enough about that, i will crack on with the sea bot and see you later. ♪ >> there's someone who seems to be having a lot of fun, and someone who is very, very committed to his job. well, look at that. 12,000 pounds. that's the price tag for this one.

okay. let's get back to business. wells fargo is introducing a new minimum salary range for entry level workers, around 25,000 members of the bank staff will see their pay rise. the wage inkroocrease comes ami investigation into the treatment of employees and the fake accounts scandal. gap raised its earnings guidance for 2017 after strong same-store sales over the holiday period. in december the retailer's sales increased 4% compared to a 5% decrease the previous year. gap shares spiked more than 8% in after hours trade. shopify shares rose 8% after they announced they will partner with amazon. the long expected integration had been completed after the market closed. shopify allows merchants to manage product catalog for various channels including the amazon store.

this holiday season proved positive for some retailers. some u.s. department stores didn't receive the christmas gift they had hoped for. courtney reagan has more. >> reporter: early strength for clothing sales gave holiday hope to retailers like macy's and kohl's, but a strong black friday weekend and days before christmas were not enough. holiday sales fell 2% at macy's and kohl's and plunged double digits at sears. macy's is closing 68 stores this year a total of 100 by next year. sears says it is closing 150 more stores and selling its craftsman tool brand. the seemingly endless stream of bad news for department stores has many wondering if this is the beginning of the end forever the group. >> the bigger dynamic is the share shift happening at more micro level. those dollars are still being spent. people are still buying apparel. they are just buying it online and amazon, and when the dollars are being shifted, from brick and mortar to online, legacy retailers lose.

>> reporter: though consumers are doing just fine. spending 4% more this holiday season according to mastercard, they're not spending as much at department stores. more and more consumers are spending online. though around 85% of all purchases are still made in stores. online retail sales during the holiday season grew more than initially forecast. a slice intelligence scan of 4 million e-mail receipts showed amazon captured nearly 40% of online purchases during the holidays. the group says apple.com sales grew 66% over last year. consumers did buy on macy's.com, with online sales growing double digits. still, not enough to tip the total sales balance into positive territory. mastercard spending data continues to show sales growth for spending on experiences. things like vacations, entertainment, and that eats away at the spending available for things like handbags. >> that was cnbc's courtney reagan. how did the uk high street fair?

let's talk about that with sophie michael, head of retail at bdo. how did high street fair? any better than the u.s.? >> december has been a challenging month. we saw a fall in high street sales again. it's been the fourth row in that critical festive month for uk retail. any fall on the uk high street with the fourth in a row is a disappointment for uk retail. >> we saw that with the numbers of next. oftentimes seen as a bellwether for the fashion industry. did fashion doppler particularl in december. >> fashion fell in december, but we need to coming pair that to a low base in 2015. and the overall high street fall in 2015 was the worst month we saw going back to december of 2008. that's why any falls of those figures is a poor result for uk

retail. >> what next was eluding to was the rise in the experience economy. so fewer people spending a lot of money in clothes but going out to restaurants, festivals. how big a problem is this structural shift? it doesn't seem to be an idiosyncratic issue for retailers. it's a big industry-wise issue. how can you combat that? we have seen that. we've seen a shift to more spend on restaurant and bars. in 2015, there was a growth in restaurant and bars of 3.7% compared to retail of 1.6%. that's continued. but retailers need to have a look at that. they need to look at it strategically in plans so they can perhaps look at where they're opening up stores and ensure that whole experience is there for the consumer to entice them out on to the high street, out into the stores and pick restaurants which suit them. >> another important criteria for us, whether you're doing well or not so well is online

presence. most companies and stores do have an online present. i guess it's the matter of whether they have a good -- an excellent online presence. it's not enough to just have a website, is it? >> absolutely. they need to make it as seamless as possible. it's difficult to tell where the actual sale has occurred. consumers are using a combination of channels. they need to make that experience of online or in store seamless for customers. we did see a big hike in december in terms of online spending. we are continuing to see that shift from store expenditure into online. >> we've seen very heavy promotional activity on the uk high street for many, many years now. now we're seeing the depreciation of the pound sterling because of the brexit effect. does that ultimately mean that 2017 might be the year when some retailers can actually afford to raise prices? >> i think it's inevitable that prices will go up.

uk retail verse big headwinds coming in terms of rise in import costs, property rates, and the national living wage. it's inevitable they'll increase prices. they'll have to balance that. because you have got a consumer who is looking at price comparisons, and they will want the best product for the best price. >> you say consumers are fickle. we can't blame them for that also with the depreciation in sterling. they're spendi ining powers wil down. on top of that, we have the political uncertainty about brexit negotiations. what is the outlook generally for that uk high street in 2017? >> the consumer will continue to spend. it's important therefore that the retailer focuses on product, focuses on quality and on range. because the consumer will just be more selective. they need to make sure that they continue to focus on those areas. because if they're going to increase prices, that consumer will be more choosey where they spend. >> sophie, thank you very much for this roundup. appreciate it sophie michael head of retail and wholesale at

bdo. russia has begun withdrawing armed forces from syria, that's according to russia's tas agency. russia's naval need would be the first to depart. before we wrap up the show and this week, let's have a quick look at european equity markets who are under water today. we're seeing the ftse down to the tune of 0.1%, even though it did clinch another record high in yesterday's trading session and is on track for the fifth straight week of gains. the xetra dax down by 3%. the cac 40 losing 24 points. keep in mind volumes today are lower given that there's a public holiday in the likes of italy, spain and sweden. i guess overall there's a bit of caution ahead of the jobs report. let's have a look at the currency markets as well. a big week for the dollar yuan here. we're seeing reversal in the offshore yuan rate. the dollar still on track for 0.8% decline this week. but it is regaining some of

those strengths against the japanese yen. now at 115.92. euro/dollar just above the 106 handle, but pretty much flat on the day. just want to give you a sneak preview at what the u.s. futures look like. we are expecting a slight downward movement. the s&p 500 soon off by 1.5 points. the nasdaq seen off by two points after a mixed day for u.s. markets yesterday. a record close for the nasdaq. the dow and s&p fell. maybe some trump rally fatigue setting in? who knows. we're all waiting for that jobs report. that's it for today's show. i'm carolin roth. "worldwide exchange" is up next. have a great weekend. with the xfinity tv app,

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good morning. it's jobs friday. the final u.s. jobs report before president-elect trump takes office. expectations and market implications straight ahead. breaking overnight, china's central bank guides the currency higher. fastest pace since 2005. we'll tell you why that matters coming up. and toyota the latest company to face the ire of the president-elect on twitter. now this morning the automaker's home country of japan is responding. we'll have those details. it's friday, january 6, 2017. "worldwide exchange" begins now.