welcome to "street signs." i'm julia boorstin >> i'm willem marx these are your headlines european stocks open higher amid fresh hopes for a resolution to the u.s./china trade war as washington and bay thing prepare to head back to the negotiating table. the shanghai composite rebounds to close 2% higher as premiere lee says beijing will take further measures to support the economy. bayer shares rise at the open after a u.s. judge limits evidence in a trial over claims its weed killer round-up causes

cancer. and investors today eye the u.s. jobs record amid fears of a global economic slowdown as traders price in the prospect of a fed rate cut by april of next year ♪ let's bring you some final composite pmi data, for december, 51.1, against 51.3 that's relatively low compared to the november time number of 52.7 if we look at the final services pmi for the eurozone as well, we have those coming in for november, those come in at 51.2, against an expectation of 51.4, against the november number of 53.4 that's to give you details there on eurozone data european equities this

morning trading higher on the back of a solid handover from asia, largely on the back of confirmation that beijing will meet with the u.s. officials on monday next week to resume formal trade talks this is providing a boost across global equities, not only in asia but also here in europe it draws stark contrast to yesterday's market moves where the stoxx 600 ended nearly 1% lower, pretty steep losses seen in german and french stocks on the back of fallout from apple's q1 warnings. so a different picture the stoxx 600 is trading about 90 basis points higher so far today. now, let's look at european markets and see which regions are shaping up, posting the biggest gains. over in italy, the most pronounced rally the foot cc footftse mib is up 4

the cac, up. and let's get into the sectors early this morning and the case now as well, all sectors in the green. at the top of the leader board those trade sensitive china exposed sector, autos, basic resources and oil and gas rebounding strongly. at the bottom we have food and beverage down -- well, just about flat or the day. otherwise green. the key data point investors will be watching, the non-farm payrolls report out of the u.s the u.s. is expected to have added 176,000 jobs in december that would be an acceleration from november. average hourly earnings are seen to have risen by 0.3%, also up from the previous period the unemployment rate is

expected to have decreased to 3.6% you can see on the wall behind me this is where expectations stand. >> trade pauk talks between th and china will resume in beijing on monday. negotiations will be held at a vice ministerial level washington plans to increase tariffs on chinese imports at the start of march unless there is a resolution, that is two months later than originally scheduled after that trade truce was announced in early december. growth in china's services sector hit a six-month high in december thanks to new export business the figure came in at 53.9 for the final month of 2018, but concerns about trade persisted chinese companies reported that rising raw material costs pushed operating expenses to a three-month high earlier this week the same private survey showed a

manufacturing sector in contraction. you can see it came in at 49.7 apple's guidance cut spooked analysts as tim cook said china was the main reason for the warning. then yesterday the pboc relaxed reserve ratio requirements for banks to improve funding conditions for small firms in a statement today, chinese premiere lee said further measures will be taken to support the chinese economy. u.s. officials have expressed some optimism about a break through. their counterparts have sounded more cautious. >> we are joined by the deputy analy analyst from aletheia capital.

should we be cautious or optimistic >> i think we should be optimistic i think all the fears about china collapsing, the fears about growth are overdone. we don't see it. the focus has been on real jdp growth, fixed asset investment numbers, retail sales, but there's problems with these data points take retail sales, there's a lot of corporation purchases, and local government purchases we know the local government is under pressure from beijing. what should people look at then in terms of data points? >> the ones we tend to look at, and i think a lot of china look more closely at is nominal gdp growth that's based solidly within the range of 9.7 to 10%. we look at eight of the high frequency macro indicators that

range from industrial production, korean and taiwanese, real freight, if you look at those indicators, most of them are saying either they're neutral or growth positive there is some weakness in monetary aggregates and korean exports but nothing suggesting the economy is slowing sharply that's indicated by the services pmi numbers. >> in terms of exports, so far they have been holding up pretty well what's the dynamic there are they being diverted away from the u.s. to other countries? how long can this dynamic persist? >> sure. very good question actually, surprisingly, exports to the u.s. held up well it's not just a case of diverting to europe and within the region exports in general have held up well in the first 11 months of the year, exports are up 12% if you look at the data stream

lost, chinese exports hit an all-time high seven times. arguably you can say that the u.s. import tariffs are yet to feed through and, you know, it's early days, but i think going forward how much of an impact it has on chinese exports will be very much dependent on whether or not the u.s. and china can resolve trade differences, and we believe they will. and trade tensions will deescalate >> if i take your line of thinking a bit further, am i correct in understanding that your view is that china can withstand even more pressure on the tariff side of things? can they actually hang on and withstand more pressure from the u.s. >> i believe they can. you know, the u.s. is not only for china but for the region as a whole is nowhere as important as the final export destination

market as it was at the time of the crisis today 20% of chinese exports go to the u.s., but mosh thre thant the domestic economy, underlying growth fundamentals are healthy. >> so what is it that the chinese authorities are ultimately in the long-term concerned about in this dispute with the u.s.? >> i think that's the more interesting question everybody has been very much focused on the tariff on goods my view is that's not the big picture. they fear the u.s. together with europe, tightening controls of technological transfer, which puts president xi's made in china 2050 program to upgrade the chinese manufacturing sector to high-tech at risk

what is bringing the u.s. to the table is apple >> all right thank you very much. chinese auto sales declined in 2018 for the first time in two decades. vehicle sales 3% over the year, and the report warned automakers to expect another 5% in 2019 because consumer confidence remains shaky. in the u.s., new vehicle sales fell in december ford reported an 8.8% drop gm logged 2.7 decline in fourth quarter sales. phil lebeau has taken a closer look at these numbers. >> reporter: whatever worries analysts may have about america's economy cooling off, auto dealers are not seeing it in showrooms december sales did drop compared

to the same month in 2017, but overall business was robust. sales climbing slightl higher in 2018, topping 17 million vehicles for a fourth straight year. that has never happened before will it continue there are mixed signals. the jobs market and consumer confidence remain strong and relatively cheap gas means americans have more money in their pockets. they are also taking out larger and longer term auto loans that's because they're paying more than ever for a new model so there is concern consumers may be at their limit. especially with the wave of three and 4-year-old models coming off lease that gives buyers the options of paying far less for a car or truck with low miles and most of the latest technology.

the worry is this industry for 2019 for the first time in decade doesn't grow. >> reporter: one thing is not expected to change for auto makers this year trucks, suv suvs and crossovers will remain in deman as americans continue to move away from driving small cars and sedans >> you can follow us on twitt , twitter, @streetsignscnbc. if you have thoughts on the china conversation, about the auto market, anything that we've been talking about, tweet us directly as well a white house economic adviser says apple will not be the only u.s. firm to see its profits fall thanks to those trade tensions with china. more on that when we come back ? xfinity mobile is a new wireless network

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forget the firm posted a 34% loss over the year leslie picker was the one to obtain those figures she looked at how the sector struggled over the past 12 months >> reporter: fewer funs, less leverage and responsible investi investing, these are three key themes in the hedge fund industry that will carry into 2019 first, fewer funds 2018 was a brutal fund for hedge funds, with some high profile meltdowns, more hedge fund also shut their doors in 2019 in recent years when one hedge fund lost assets, another one often gained them. but many expect the industry overall to struggle with redemptions in the new year after a difficult fourth quarter.

seco second, in 2019 as rates rise and more volatility takes over, certainty may be more difficult to find. therefore funs are expected to be more cautious and de-lever in the new year. and lastly, responsible investing. in an attempt to sure up burnished reputations, hedge funds have turned to responsible investing. this means they're putting their capital into strategies that benefit society as a whole and avoid those they believe are not, like gun manufacturers and tobacco manufacturers. there's been a 50% increase in demand for responsible investing over the last year kevin hastert says the itself firms will continue to see earnings hit until the u.s.

and china reach a trade deal >> something that is a big economic piece of news since last spring, other parts of the global economy have been slowing in a way that we haven't i remember last spring critics of the president were saying that the global economy is booming, it's not president trump's policies i think we're seeing the u.s. economy moving along, we're growing at a rate that people used to say that was impossible, but china is slowing because part of our tariff policies, and europe is slowing for a number of reasons they got financial problems in italy. they have the brexit uncertainty. they also have a trade surplus with china so the slow chinese economy is bad for europe as well >> we will hear more from kevin hassett later today at 8:00 p.m. when he sits down with steve liesman on "power lunch." coming back to one story we've been following closely over the last 24 hours, apple.

the tech giant shares had their worst day in over five years on thursday they plunged more than 9%. the decline saw the company's market cap fall below 700 billion. today the company's frankfurt listed shares are trading higher yesterday one of the key focus points for european investors were the chipmaker stocks, with some of those suffering steep losses this morning we're seeing a rebound across that supply chain, and our technology reporter, elizabeth, joins us around the desk with more. can you give us a sense of the scale of the share price decline we saw yesterday in monetary terms? >> right so apple dropping 10% yesterday. that is the equivalent of 4$452 billion in market value lost that's bigger than the size of facebook we have to remember when we talk about apple, when it cuts revenue guidance by 5 billion to

$9 billion, that's a huge amount of money this is coming from a huge company. apple's market cap stands at less than 7$700 billion a far cry from that $1 trillion mark it hit over the summer. a couple things here and the debate over the future of apple and its stock. one is whether the company is having -- needs to have a change of strategy. apple pinned its strategy on the idea of selling fewer iphones for a higher price many of these phones are selling for over $1,000 in a market like china there are cheaper alternatives you can see huawei, for example, there's a chart i brought along here, has taken share away from apple as consumers have gone towards cheaper phones there are plenty of other chinese options. there's an internal debate about apple going on here.

the other side is this bigger macro picture. tim cook in that letter to investors talked about the strong dollar, about emerging market weakness, and he talked about the trade dispute with china. so the question here is if apple, if the story is going to play out more as a stock specific strategy, apple what it will do is start selling these phones do they need to innovate bigger or is this a macro story that more companies so be facing similar challenges >> excellent i want to bring in peter richardson from counterpoint research is this an apple problem is this a smartphone problem or is this a china problem? >> i think the answer is it's a bit of all of those things the smartphone market is contracting in 2018 for the first time ever. it's doing that because smartphones are so good these days that consumers are not really feeling the need to sort of upgrade

when new products are launched they are not bringing enough innovation for consumers to buy. as elizabeth says the prices have escalated we've seen success increasing at about a quarter in terms of the costs for the consumer so consumers are right in thinking i do need to make this investment now or can i hang on to this longer the quality is now good. they're water proof. apple made a change in the batteries. the need to change your handset is reduced somewhat. until we get sort of really significant innovation, consumers maybe are questioning the need to do that. >> i have to ask you, do you think steve jobs then in his explanation was being disingenuous or simplistic. >> steve jobs or --

>> my apologies, tim cook. >> i think he talked about china as sort of a major issue china has been a problem that has shown up now what we see in many parts of the world is apple does have a strong in-store base consumers have invested monetarily and emotionally in applications as well as the products and accessories many people are tied into the apple ecosystem. in china, that's not the case. many are tied into wechat, so they're less tied into apple so i think there's bit of a nationalistic shift in china going on

we are getting some indication of this. there is a tendency for chinese consumers to shift towards chinese brands in the current climate between the u.s. and china. >> to your point about the chinese smartphone companies, simply innovating a bit faster and more dramatically than perhaps those outside of china have estimated, what does this mean for apple outside of china and their ability to compete with chinese smartphone companies, and what does it mean for apple's prospects for obtaining growth elsewhere >> it's a relevant question. one issue we see is that in the u.s., apple's home market, apple and samsung are essentially a duopoly. 85% of sales go through carriers, carriers in the u.s. are conservative and don't buy a

wide array of brands to sell to consumers. so consumers, investors, probably even the government are protected from understanding the scale of change that has gone on in the industry more broadly in terms of the speed of innovation that the chinese are bringing. in other markets, in europe, you're seeing the chinese ven r vendors like huawei, they're moving at a faster clip in terms of innovation. so there is a risk so apple has a huge in-store base that's where it's at strength. if you look at it making more and more revenue from services, those services sell to apple's in-store base. it's an in-store base story versus new product >> all right >> one thing that's come up in this discussion is whether a company like apple should bring some of its production back into the u.s., given all of these trade disputes huawei certainly kind of has

that side where it's a chinese company. is there a case that apple should try to insulate itself a bit more from these tensions in light of what we're seeing with china specifically >> yeah. that's a difficult one for me to answer foxconn and pegatron, the two main manufacturers of iphone products are based in china, at least their large factories are based in china foxconn has committed to invest in manufacturing in the usa. but it would be a big shift to bring manufacturing back to the u.s. >> well, excellent that was peter richardson from counter point research i want to bring you fresh headlines out of the pboc in china. we are just seeing that the central bank is planning to cut the reserve requirement ratio by 100 basis points on january

15th by 50 basis points january 25th. so, altogether they are planning to relax those reserve requirements even further. they're calling this a targeted adjustment, not a stimulus it's aimed at increasing funding for private and smaller firms. they will -- this will lower interest payment costs for banks by another 20 billion yuan annually that's the estimation. so more moves by the pboc to try to stimulate and ease funding conditions for the chinese banks. and coming up on the show, the democrats make a move to end the government shutdown, but president trump says he will stick to his guns.

welcome to "street signs." i'm willem marx. i'm julianna tatelbaum these are your headlines european stocks open higher amid fresh hopes for a resolution to the u.s./china trade war as washington and bay thing prepare to head back to the negotiating table. >> the pboc takes steps to boost

the economy by cutting back on banks reserve requirement ratio, calling it a targeted adjustment, not a big stimulus bayer shares rise at the open after a u.s. judge limits evidence in a trial over claims its weed killer round-up causes cancer. and investors today eye the u.s. jobs report amid fears of a global economic slowdown as traders price in the prospect of a fed rate cut by april of next year. just a few moments ago headlines from the pboc, they have taken further steps to try to ease funding conditions they announced further cuts to the reserve requirement ratio. to take you through those headlines that they have announ announced, this will lower interest payment costs for banks by around 20 billion yuan annually

they are calling this a targeted adjustment, not a big stimulus and they will do it in a couple of different tranches. they will cut the reserv requirement ratio by another 50 basis points on january 25th that is in addition to 50 basis points on january 15th this is being considered an adjustment not a massive stimulus >> to bring you updates on uk services pmi data. those came out in the last moment or so, they're coming in at 51.2 for december this is the services pmi for the uk that's against the november number of 50.4 that's slightly higher than the reuters poll of 50.7 some other data this morning, economic growth across the eurozone fell in december with composite pmi figures showing business activity dropping to a 5 1/2 year low that's the lowest reading since july of 2013 this comes as a blow to the ecb's plans to end ultra loss

monetary policy. growth in germany's services sector slowed in the same period in france activity plunged into contraction amid the yellow vest protests italian composite figures came in at 50 >> and let's look at fx markets and see how currencies are trading. you can see the euro and sterling seeing a nice bounce versus the dollar, up about 20 basis points and 30 basis points the yen is giving up some of that strength. we saw yesterday massive safe haven flows into the japanese currency now we're seeing a bit of weakness versus the dollar, coinciding with this risk-on sentiment on the back of the announcement that beijing and the u.s. will resume trade talks next week. let's go back to european markets and check in where stocks are trading some decent gains across the regions. the best performer of the bunch, italy up 1.7%.

the dax just behind them, up 1.6% as we mentioned, bayer in focus today. some positive news on the monsanto trials in the u.s., providing a nice boost to the dax. across the board, a positive picture for europe let's see how this is feeding into u.s. futures. we are looking at a positive start in the u.s s&p, dow and nasdaq all looking to trade higher. the non-farm payrolls report, the key event there. we have fed chair jerome powell set to speak on a panel that will garner investors attention as well. back in the uk, we have data the price of uk houses grew at the smallest annual rate in almost six years in december, according to nationwide. the mortgage lender said monthly prices declined 0.7% missing forecasts. as i mentioned, news on bayer out yesterday. a u.s. judge issued a ruling in a lawsuit against bayer that would restrain plaintiffs from

introducing evidence seen as critical to their cases. the german firm is being sued in the states over round-up which is alleged to have caused cancer bayer welcomed the decision. as you can see on the chart, bayer shares trading up 3.9% house democrats have approved two bills aimed to end the partial government shutdown. both reject president trump's demand for funding for a border wall but the legislation looks to be vetoed by president trump. we'll speak to tracie potts in washington sorry about that ahead of nancy pelosi's white house meeting, what did members of the white house leadership say about the shutdown as they took control of one half of congress >> they're saying that the wall money that the president is demanding, the $5 billion, that will not happen. nancy pelosi, the new house speaker in charge of the house of representatives, says it's

immoral to build the wall between the u.s. and mexico. and that she an her party are not going to give the president one dollar to do so. so that is the tone as they head into the meeting today it's not clear with both sides digging n president trump saying i won't reopen the government without the money. nancy pelosi saying you're not getting the money. it's not clear where the negotiation begins caught in the middle are 800,000 government workers who are not getting paid right now and they're starting to feel that squeeze along with millions of americans who don't have government services, can't visit national parks and things like that the politics of all of this is what has consumed washington what democrats did as soon as nancy pelosi got the gavel was to pass a couple of bills. one would reopen eight branches of the government that have nothing to do with this wall they are closed as a result of this the other would reopen the

department of homeland security, that's where the wall money would come from for 30 days, to give them some time to work this out. the white house position on that is we don't need 30 days we've had months what we need here is some bending and coming to the middle, but 30 days won't make that much of a difference republicans not supporting that. it's not really going anywhere democrats have said we've thrown a plan out there to get people back to work it's a real stalemate with one more chance today, this meeting at the white house to break that gridlock >> seems like both sides are digging in their heels tracie potts, thank you very much make sure you tune in to cnbc at 9:00 p.m. central european time when our u.s. colleagues will talk to mike pompeo about a range of subjects, including the government shutdown. now we are just a few hours away from the non-farm payrolls report, sharply in focus for

investors. the u.s. is expected to have added 176,000 jobs in december according to the dow jones estimate this would be an acceleration from the month of november average hourly earnings were seen to have risen by 0.3% the unemployment rate is expected to have decreased to 3.6% u.s. manufacturing activity hit a two-year low in december missed expectations and sparked a decline in treasury yields the ism dropped to 54.1. it hit its lowest level since 2016 and marked the biggest drop since october of 2008. this happened amid a severe fall in new orders and lower hiring numbers at factories the ism cited softer demand and suggested that slower growth in china an europe is already weighing on the u.s. economy investors have begun pricing in the expectation of a possible fed rate cut by april of next year the futures market indicates the

central bank could take rates down to 2.225% market participants will be watching closely today as jerome powell sits down with his two predecessors, ben bernanke and janet yellen at an economics forum in atlanta the focus is on whether the central bank chair will show more flexibility among criticism that the fed is still too trigger happy when it comes to raising rates. we are joined by ian shepherdson. thank you for joining us so, firstly on today's main event, what are you watching most closely in the non-farm payrolls report today? >> well, i'm looking for a big rebound, especially after the adp report showed a 271,000 increase in private payrolls that was a big upside surprise it doesn't guarantee a big

payroll number, but it helps so the consensus, 175-ish. that looks too low to me the thing is that markets are looking forward into the next few months when payroll growth will probably slow as we heard, the ism unemployment number came down yesterday. i think it will come down further over the next few months i would expect real weakening in the manufacturing component. having said that, most jobs in the u.s. are not in manufacturing. most people work for small service sector businesses, and the sector service is doing well because the consumer is doing full blazes. we had a great christmas, chain store sales are through the roof probably because gas prices fell so much in time for the shopping season so there's a real split in the economy with the manufacturing sector under the cosh and the consumer sector very strong. that ought to keep the payroll numbers towards the high hundreds so i'm not expecting a rollover, but i think the industrial component will weaken. that's what markets are focusing on that ism report yesterday was horrible and probably it will get worse before better.

>> to your point about the consumer sector being strong in the u.s., and the consumer being a tremendous driver of the u.s. economy, what do you make of the weak housing data we've seen is that not cause for concern? >> housing is the asterisk to the consumer story clearly it's weakened somewhat in the fall there was two hurricanes and the wildfires in california all of those things did real damage to housing market activity but if you look at the stuff not affected by the weather, which is mortgage applications, they're fine if anything, they picked up s since the summer mortgage rates have come down. i'm expecting the next round of surprises to the housing market will be to the upside. we should see an unwinding of those. so it looks bad at the headline level, but i think it's okay meanwhile the rest of the consumer story is pretty spectacular. so, it looks to me when we get the full accounting of the holiday shopping season, we'll see the best for many, many years. it will serve to re-emphasize

how this economy is bifurcating with the industrial sector under pressure from china, the trade wars, falling oil prices, slow growth in europe in the consumer sector, got tax cuts, falling gas prices, strong payroll growth, confidence is high i expect that split to get wider and wider. it will be one-day week numbers from the industrials and one-day strong numbers from the consumer the consumer is almost 70% of gdp and manufacturing is 12. >> i want to move away from the economic data and ask you what you think investors should be taking away from the events we've seen the last couple of weeks in d.c.? we have the democrats in charge of the house we're well into the second and third week now of this government shutdown. what should the takeaway be about these events in d.c. for investors? >> well, i think it's important not to get too hung up on the shutdown it's a distraction it's a side show

it's political nonsense. the macro economics is the china story. it's both the combination of china's own slowdown, which is independent of the trade war and the trade war on top, which is wreaking havoc across u.s. and chinese manufacturing and agriculture as well. what i think that means is that the u.s. administration is very heavily invested in getting a solution pretty quickly to this. so i realize that the latest news coming out of negotiations with navarro and lighthizer is that they wanted to double down on more tariffs and turn the screws on china. i think trump will resist that, because he's looking much more closely at the stock market, and the stock market hates this stuff. i think we'll see a deal quickly. not at the trade talks tomorrow, but over the next couple of weeks real progress and i expect the hawks to be overruled by trump. trump views the stock market as a score on his presidency, right now it's giving him an "f. so i expect we'll see progress that markets can believe in, that we see a substantive trade

deal it will not fix china overnight, but the pboc is easing aggressively now by the middle of the year i expect green chutes out of china and then a substantial swing back into equities after a horrible few weeks >> do you think investors have changed their opinion about president trump in light of what we've seen in the marketplace and in light of his policies and behavior over the last few months >> they liked him when he took office the markets stepped higher because of expectations of deregulation and tax cuts. he delivered on those. the deregulation is mostly a story about industrials and chemicals and mining what i think people didn't really believe was just how serious he was about the trade stuff. that was a mistake he's been banging on about the u.s. trade deficit for the last 30 years it's one thing he generally

believes in. he underestimated the risk that this would cause havoc in the stem so now we have the reckoning i think the reckoning will force him into substantial backtracking but i don't think that's a huge problem. there's plenty of room to strike a deal china has been behaving egregiously. they know they have. they got room to backtrack and say we don't need to steal your technology anymore because our own stuff is so good, china is so great that's an easy sell. trump gets to call it a win. i think the mistake markets made is not taking him seriously. >> just going back to the pboc's announcement moments ago about the triple "r" cuts. is this confirmation or acknowledgment that china is going to be more willing to potentially backtrack? is this acknowledgment that they are being significant affected

by the trade war >> they're hurting they were hurting any way. chinese growth has been slowing for a while. they didn't need the trade war on top of it it's caused chaos. no question about that looking at the performance of the chinese industrial economy since tariffs were announced, especially since september when tariffs were spread to 200 billion imports at 10%, things have taken a serious step for the worst. it's done the same in the u.s. as well. it's mutually assured havoc, and the u.s. farm sector and chinese farm sector are also suffering this put both sets of authorities into position where they have to get to a solution quickly. the bella koicose rhetoric has scaled back. i think both sides are now heavily incentivized to make a deal i would be amazed if we were still talking in three months time and there us with not major progress i don't think either side can

afford to see an intensification of a trade war the price is too high. >> excellent thank you so much for joining us and responding to this breaking news from the pboc later today, loretta mester will be speaking to our colleagues in the u.s. that's a first on at 2:00 p.m. cet. coming up, it was a night to forget for loiverpool as the res crashed to manchester city all the goals when we return last time. 's e 300 miles per hour, that's where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me retirement is protected. annuities can provide protected income for life.

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welcome back the pboc announced plans to cut the bank's reserve ratio by 100 basis points the chinese central bank will slash by 50 basis points on january 5015th and then another 250b 50 basis points on january 25th. how significant is this announcement from the pboc >> this latest move by the pboc

follows comments from earlier in the day today on the back of a meeting with officials from the banking and insurance sectors. it was said there would be triple r cuts, as well as cutting taxes and fees also the chinese government is trying to step up counter cyclical adjustments of policies as you mentioned, the 50 basis point cut taking place on january 15th and then the second one ten days later on january 25th an additional 50 basis points. together the 100 basis point cut will release 1.5 trillion yuan of liquidity into the market officials say this should offset liquidity volatility in the lunar new year a big chinese holiday where there's a big demand for cash

and the passing out of lucky money. so that is expected to help offset some of that volatility and demand for cash. this was well flagged. as we have a softening chinese economy. we have seen the pboc, the peoples bank of china 2018 cut the triple r four times in order to free up funding for banks, and to allow them to give more lending to small and medium size enterprises that may be under a bit of pressure with a softening economy. this comes on the back of a slew of economic data this week on monday manufacturing activity was shown to have shrunk for the first time in more than two years. two days ago, on wednesday, we had the private sector reading showing the first contraction of small and medium sizedtracting e

first time in about 19 months. so we'll look to more data coming ahead next week on monday, foreign exchange reserves coming out from china on tuesday, trade data the latest numbers coming through from december. we've seen a ramping up or front-loading of a lot of the numbers ahead of the turn of the year with this 90-day trade truce ongoing, it will be interesting to see what those trade numbers turn out to be the december figures coming out on tuesday we'll get the latest china inflation figures released on wednesday. back to you. >> emily, thank you very much for joining us that's emily tan well, as i'm sure many of you know, manchester city premi

champions. they don't appear to be giving up that title without a fight. they beat liverpool 2-1 last night and they narrowed their gap to four points adam reed expert on liverpool joins us around the desk this was the first time liverpool lost this season >> this season in the premiere league, yes. they did go 20 games unbeaten in the premiere league. you would think it would come to an end sometime. they were the ones to inflict the first defeat of the season on manchester city last season, and this time, yeah, as it turned out, city had their revenge and in doing so narrowed that gap at the top of the premiere league to four points it was a great game at the etihad stadium last night. city knew they had to come out of the blocks fast, trailing by 7 points going into the game but they opened the scoring at the end of the first half. a lovely move and a very well taken shot from sergio aguero.

he often scores against liverpool, he obliged once again. jurgen klopp's side have a resilience about them this season look at this trent alexander-arnold with the wrong foot crossing it over fo robertson and firmino nodded it in a lovely sweeping move by manchester city. liverpool hit the post in the first half, the ball didn't go in it was cleared off the line. manchester city, this shows how small the margins can be sane scoring the top goal. it's game on again in the title race after the game, pep guardiola was happy to thank his players for putting in such an impressive performance >> take a moment to congratulate and say thank you to these incredible players, what they have done in 16 months, and today they showed for everybody how good they are, which hurt an

incredible team. >> if somebody would have told us against manchester city we would still be four points up, i would have paid money. >> our commiserations to adam reed, our resident liverpool fan. let's check in on u.s. futures ahead of the market open on the other side of the atlantic looks like a slightly more positive start to the day on friday compare ed d to what we seeing this time 24 hours ago. the dow jones looking to open up 265 points higher at this stage. that's it for today's show >> i'm julianna tatelbaum. >> i'm willem marx rhtows mg exchange" icoin upig n xfinity mobile is a new wireless network

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a friday rebound wall street pointing to a big pop at the open following yesterday's major selloff. japan slammed. the nikkei tumbling as it reopens for the first time in this new year. and countdown to jobs. we are just hours away from the december jobs report we will break down the key numbers to watch it's friday, january 4th, 2019, "worldwide exchange" begins right now. ♪ good morning happy friday welcome to