chinese president xi jinping has pointed out that the chinese economy in this new normal will grow more steadily and have more diversified driving forces. chinese premier li said the driving pushbacks in the chinese economy are not based on linbli optimism but on necessary basis of impetus. i would like to use today's platform to talk about the current state of the chinese economy and our policy directions for the next stage. first, the chinese economy achieved steady growth in 2015 and china remains an important driving force for global growth. to begin with, china's gdp registered a medium high growth rate of 6.9% in 2015. despite the volatility in the world economy, china still achieved a growth rate of $500 million, which is estimated to be the largest in the world. such a growth has been achieved on a high basis of an over $10 trillion economy and continues to be one of the fastest among the world's economies. secondly, china realized a continued improvement of the lives of its people. disposable income group by 12.4%, outpacing the overall economy by half a percentage point. in to

first the chinese economy achieves such steady growth as an important driving force to begin with the gdp a medium high growth rate and in 2015 despite the volatility in the world economy titusville achieves the gdp increase of over $500 billion which is estimated to be the largest in the world as has been achieved and a high basis of over 12 trillion economic economy to be one of the fastest time realized a continued improvement replacing the overall economy 13.12 million jobs were created the unemployment rate and the major cities was 5.1% it is one of the lowest since 2009 with an increase of 15.four and 30.3 percentage points higher enduros by a 2.four points that is more than half an iso 17 percentage points higher for unit energy consumption with new product to take shape in the added value of high-tech industries growing much faster than traditional industries and then with us ceo of china business that it is making good profits with the cost increase and then with those outcomes this still the second biggest and though world. investment ranged up by 10% year on nuclear -- year

in line with the government's target and many other countries can only dream of the expanding chinese economyts growth is far lower than the double digit figures seen in 2010 and say the chinese data could be overly optimistic and from beijing lawrence reports. >> reporter: for years china has been the world's factory, relying on low manufacturing costs to make goods sold worldwide. more than 20 years of record breaking growth has propelled china from communism to consumerism and now the chinese economy is stalling and the slow down is hurting many other economies worldwide. commodity exporters who relied on china as a buyer for years are also struggling and analysts say a slow down is inevitable given how much the chinese economy has grown in resent years. they say high-speed growth is unsustainable and a recess is needed. >> translator: china is indeed in a moment of momentum transferring from old to new. traditional industries are big in size while these emerging economies are smallers and are growing fast emerging industries cannot makeup for traditional slow down so the over all economy

it is hard to have expected a smooth transition in the chinese economy from a manufacturing, export, to a service, technology, consumer, economy. no country in the world has been able to do that transition smoothly. we went through the bumps but i would not want to bet against the government authorities in a country that is largely state-owned. they have a lot of leverage in what they can do in monetary policy and fiscal policy in foreign exchange policy to revive the economy. i am not a believer that it will be a hard landing. >> there are two issues, one which has to do with the economy, and can the chinese government soft land its economy without a big disaster? the answer is yes. another question -- what to do with financial bubbles in the chinese economy? there are pockets of excessive risk-taking and that is harder. the stock market is part of it. they have fallen in the same trap we fell into which is to encourage an activity, in our case it was homebuying which has social benefits. it goes too far, they encourage share buying, stock buying as a way to spread the market economy

these figures seem to confirm the extent of the cooling of the chinese economy. that leads to expectations that the government will inter even with some sort of stimulus not too far down the road. therefore, the markets like nothing better than a dose of liquidity. these figures are very much in line with expectation. 6.9%. the question for many is moving into the next gdp figures, what the government will accept as a growth rate. some people are talking about 6.5%. some people say that that is good i it shows a maturing of the chinese economy, it doesn't need no be expanding at these double digit unsustainable rates, bus on the other hand it is an economy in transition. it needs to have a robust economic growth rate in order to underpin the changes that are taking place, the winding down of large sectors like government-run sectors creating an awful lot of employment which needs to be soaked up by the private sector. the government can't allow that growth rate to fall too low >>> as you say, we always knew that the good years of growth would not last forever and

rishaad: are there any crack in his view about the chinese economy?r: everyone knows there are headwinds in the chinese economy. he tried to paint a broader picture, saying they are blowing it between 6% and 7% annually, and they will for the next five years, he says. they will continue to be an engine of growth. here is what he had to say. translator: the world economy is now at a crucial stage in the shift of the force that drives -- that drives growth, and the chinese economy has entered a new normal. out thatg has pointed the chinese economy will grow more steadily and be more diversified. stephen: even he, the vice president, is quoting the president. we know the sentiment. but again, we heard from george soros a few minutes ago, and throughout the morning. he said there is a hard landing going on. what do you believe? rishaad: thank you. investors have not been exactly what you call 50 when it has picky when it-- comes to the selloff. tim cricket has more from steve engle. he is right here with me. where we stand across asia? it is interesting f

years of record-breaking growth has propelled china from communism to consumerism and now the chinese economyalling and the slow down is hurting other economies worldwide, commodity exporters relied on china as a buyer for years and are also now struggling. analysts say a slow down is inevitable given how much the chinese economy has grown in recent years and say high speed growth is unsustainable and a reset is needed. >> translator: china is indeed in a moment of momentum transferring from old to new, traditional industries are big in size and these emerging industries are slower and they are growing fast emerging industries cannot makeup for the slow down so the over all economy is facing downward pressure. >> reporter: slower growth is expected to be the new normal for china, already analysts predicting the economy to cool further this year and even government measures like cutting spending and interest rates are not expected to help much. chinese government leaders are encouraging everyone to spend more hoping to shift the economy from export dependent to a more sustainable, consumer dri

that's the big concern that something more rotten is happening in the chinese economy that they have resort back to the export model to prop up the exports to meet the growth target and what does that do to the global economy? even if the u.s. isn't as exposed via corporate earnings or exports to the chinese economy, china impacts every single country's economy on the globe and the question is what does it mean for global growth? >> right. the currency has been the sparked that caused all of this last week and i was writing in an article in november and i mentioned the fact that 2% declines, 3% declines that we saw in august, they're nothing. we need to see much more to see all of this flushed out and we're starting to get toward the highest single digits. they might be managing things and this is all planned and there's such a run of private capital out of the country that the state cannot stop it falling quicker than it is and there's such a rush that it's speeding out the door. >> this is your wheel house. you were on an asian trading desk. you were an asian fund manager. >> yeah,

it is now at a crucial stage of and ft and the chinese pointing out that the chinese economy will grow more steadily and have more unified driving forces. chinese leader said it is for the chinese economy are not based on blind optimism but on necessary basis, conditions and impet us. i would like to use today's platform to talk about the current state of the chinese economy and our policy direction or the next stage. first, the chinese economy achieves steady growth in 2015 and china remains an important driving force for global growth. to begin with, china's g.d.p. registered ar medium, high growth rate of 6.9% in 2015. despite the volatility in the world economy, china still achieved a g.d.p. increase of over $500 billion which is estimated to be the largest in the world. such a growth has been achieved on a high basis of over $10 trillion to the economy and continues to be one of the fastest among the world's economy. secondly, china realized the continued improvement of the lives of its people, per capita, . sposal income grew by 7.4% 12 million new jobs were created . and unemplo

>> reporter: it highlights just how important the chinese economy is at the moment because this is everybody's business. we have seen the immediate effects of this cooling economy, of course, in commodities. it is not bringing in the same types of raw materials that it has in the past, the effect on the oil price. this is all as a result of the contractions in these main sectors of growth. it had been the drivers, construction, for example, and manufacturing. to compensate for that the chinese government when released these figures they were quick to point out how quick the industry is changes. the service industries are growing in importance and that is allowing to take up some of the slack of other areas of the economy. we are seeing, for example, the fact today that more than half of the government's tax revenues now come from the service sector. so that is their big hope, that the economy can soak up the workers that will come from these other areas of the economy. of course, that is the big hope for the rest of the world, that maybe the commodities in other parts of the world are sufferin

what does that say about the strength or weakness rather of the chinese economy? >> well, again, many people were looking at fact that the chinese authorities were allowing their exchange rate to fall this week as signal how weak the currency is. it is a bit of a chicken and egg story. i think they were allowing it to fall really because the economy perhaps needs a little bit more stimulus. they have been trying to stimulate policies such as fiscal policies through interest rates. but still perhaps they need a little bit more. the facts, the problem potentially for china, if the dollar rallies on back of federal reserve interest rate hikes, that will tighten monetary conditions in china even more. so china loosened up the peg to some degree. trouble is for everybody who exports into china, particularly commodity producers, that can be very painful for them. nicole: right. jane foley of rabobank, thank you very much. this is a big controversy, right? very controversial about the pboc when they're manipulating the currency, propping up the markets. you heard all the

now the chinese economy is stalling and the slowdown is hurting many other economies worldwide. commodity exporters have relied on china as a buyer for years are now also struggling. analysts say a slowdown is inevitable, given how much the chinese economy has grown in recent years. they say high speed growth is unsustainable and a reset needed. >> china is in the moment of momentum transferring old to new. traditional industries are big in size while the emerging industries are smaller. even though they are growing fast, emerging industries cannot make up for slowdown so the overall economy is facing dawnward pressure. >> slower growth is expected to be the new normal for china. already analysts predict the economy to go further this year and government measures such as increasing spending and cutting interest rates aren't expected to help much. >> chinese government leaders are encouraging everyone to spend more, hoping to ship the fry from export dependence to a more sustainable consumer model. encouraging data emerged tuesday. retail spending, own though lower than expected

the bad news, of course, of the chinese economy leads to expectations of an economic stimulus, the market is nothing more than a big dose of liquidity. this falling rate is a concern and then also leads to concerns about what happened in the coming year. people are talking about a gdp rate of 6.5% and the question arises at what point does the chinese administration feel it has to intervene. in some respects it is healthy for some people to have a single digit gdp rather than the double digit that we have been seeing in the past. people say that's not sustainable, but, of course, this is an economy going through huge transformations and it needs a growth rate to help all those. let me give you one example. in the last week or so the people's leb registration army has announced massive changes of reorganization. they're going to lose a head count of 300 noushgs people. these are big numbers. it-- numbers of people. it needs the economy for jobs for these. that's the concern >>> we're talking about a to be global economy. this could have impact and potential impact right across the world. >

he said many chinese economies are kept afloat by government support. he believes those should have withdrawn. but banks failed to take appropriate action. new york university professor mario rubio said that china's growth shouldn't exceed 5%. >> the good news is not the hard landing. the bad news is that the policymakers seem to be not willing to do some of the necessary adjustments. i think the chinese and the policy on the soft market will move gradually to a more transparent set of rules so people can track what they're doing in a credible way. >> okay, we appear to be having some technical difficulties. we apologize for that. we'll try to get back to masahito as soon as we can. >>> officials from indonesia and china have taken the first step in a major infrastructure project. they've held an event to mark the start on indonesia's first high-speed rail line. government officials gathered for a ground breaking ceremony. representatives from the joint venture company that's in charge also attended. the president said cooperation between indonesia and

how can the chinese economy shift without stalling? we have an all star panel.hristine lagarde is the managing director of the imf and thank you so much for joining us. is there something that the west misunderstands about chinese markets and does that exacerbate volatility? >> i think there is a lot the west does not understand about chinese markets. the essence of what's going on in china is an adjustment. they have a debt restructuring challenge. they have an economic restructuring challenge and they have to come up with a new model. they have a capital markets challenge. they need to build in addition ways that circulates capital through the system better. they have a balance of payments challenge. that will pressure on the currency. these are things that have happened repeatedly through the rest of the world. the united states has had three major debt crises. we had the s&l crisis. we've reshaped our economy many times. we have gone into other areas. we have had another of talents of payments and currency issues. one of the things being misunderstood is wha

if people want to talk about concerns over the chinese economy, i'm all ears. t the chinese stock market really shouldn't be dominating our conversation. >> we do have to deal with the fallout from the chinese stock market even though as you say it's devoid of fundamentals or separated from fundamentals. but how do u.s. investors ride that kind of bucking horse given what we saw in today's trading session? >> given the 24-hour news cycle, the fact that people trade around the clock, you're going to wake up in the morning to news about china. it's inevitable. but i think people need to have the conviction that there are stocks in their portfolio that have good fundamentals, good corporate governance, and are good at getting earnings to the bottom line. it's basic investing. you have to tune out the noise of shanghai being up or down so much in just one day. >> you know, when you mix capitalism with communists who are at the center of the party in beijing and you put in things like circuit breakers that shut the market, it rarely, as sue was saying off air a momen

so the chinese economy is not so dependent on the pump priming of the government where they pump in massive amounts of money to massive projects. >> double digit figures are not sustainable. single digits, can a slowing economy keep everyone in china in jobs. >> so when we see a movement like this, lowest growth rate in 25 years, it sends shock waves through the economy. the world economy gets whiplash. that reactions is a bit of an exaggerated one in that when an economy in china is worth immensely more than it was in the early 2000s, when the growth rate was at 14%, a slow relative growth rate of 6 or 7% is adding value to the economy. than a growth rate of 14% in the mid 2000. back thin in 2007, before the gfc, when the economy was growing at 14%, the economy was worth something like 3.5 trillion usd. now it's worth more. if you have a growth rate of 7% now, it's adding more to the economy, and providing the average individual with a better standard of living and more economic opportunities. >> how far will the party let the economy drop before it intervenes? >> sorry, what was that, i m

the chinese economy is terrible. we should not have expected that the ordinary american would see regular increases. instigating growth. trish: this is my point. 5% just is not what it used to be. that means you have a pretty tight market. wages should go up. if a company is trying to hire someone. you know, it is hard to come by

now the chinese economy is stalling, and the slowdown is hurting other economies worldwide.lysts say a slow down is inevitable given how much the chinese economy has grown in recent years. they say high-speed growth is unsustainable and a reset a needed. >> translator: china is transferring from old to new. traditional industries are big in size, while these emerging industries smaller. emerging industries cannot make up for traditional industry slowdown, so the overall economy is facing downward pressure. >> reporter: slower growth is expected to be the new normal for china. already analysts are predicting the economy to cool further this year, and even government measures such as increasing spending and cutting interest rates aren't expected to help much. chinese government leaders are encouraging everyone to spend more, hoping to shift the economy from export-dependent to a more sustainable consumer driven model. some encouraging data emerged. retail spending still grew by double digits. and the automotive industry is forecasts to grow. >> translator: auto sales growth is

it's likely to show a continued slowing in the growth rate of the chinese economy, the big question foris will the authorities allow that slowing process to be a soft landing or a hard one. on the evidence of the last couple of weeks things are starting to feel very bumpy right now. >> coming up, on al jazeera flames after a bomb blast rocks southern yemen plus. >> it's one of the biggest dinosaurs ever discovered, so big it barely even fits in museum, i'm gabrielle in new york, that story coming up. ♪ >> "inside story" takes you beyond the headlines, beyond the quick cuts, beyond the soundbites. we're giving you a deeper dive into the stories that are making our world what it is. ♪ top stories on al jazeera and the president has visited the site of the bombings in jakarta and civilians and attackers died in the attack. people in the syrian town of madaya told officials from the world food program that 32 people starved to death there in the last month. oil prices have fallen below $30 a barrel and new 12 year low helping to drag asian markets down in late trade. iran is confident sanct

how resilient are those two when you look at the chinese economy?think, still, the dynamic force of the chinese economy is its entrepreneurialism and its private sector and especially the low to medium sized companies. the gigantic s.o.e.'s though they come out with a lot of ower, it is the millions and millions -- that matter the most. in that regard the reforms still need to be more focused on giving them the support whether a capital market support or tax support, monetary support. those are very important for the continuous growth. that will continue to be the growth engine for china and now from where i sit i see incredible innovation coming from the internet, mobile companies. that really is an exciting part of our economy that very rarely gets featured in the news because we talked so much about the market volatility and so on. in fact, most of these soe's don't even get a chance to participate in the volatility. i think it is important that we remember that especially the policy makers like mr. fang and it is important to include these s.m.e

stock market tumbled early this week after more bad news about china's struggling economy and a selloff on the chinese stock market. some have suggested that this is a bad sign for the u.s. economy's prospects in the coming year. much of the concern centers on potentially falling demand for u.s. exports if the chinese economy continues to falter. although many countries rely on exporting goods and services into china, that's not as much the case in the united states. domestic exports account for just 13 percent of our nation's gross domestic product - the total value of everything we produce as a country -- and fraction of that total. in fact, exports to china u.s. gdp. by way of comparison, the u.s. exports nearly four times as much to canada and mexico. imports. over the past decade, our nation's appetite for and other goods have helped fuel china's manufacturing boom and made it the number one country for imports. china sends nearly $500 billion worth of goods and services into our country each year and alone accounts for 20 percent of our nation's imports. ((jeremy aguero)) a silver lining in chin

where is the chinese economy headed?ith the new five year plan being presented in 2016, how can the world's second-largest economy shift gears without stalling its growth engine? and what does all the market volitility tell us about the perception of china, and the task facing chinese regulators? well, we have, i am pleased to say, an a-star panel. thank you so much for coming on. jiang jianqing, chairman of the board of the industrial & commercial bank of china. christine lagarde, the managing director at the imf. fang xinghai, vice chairman of china's securities regulatory commission and director general at the intercontinental economic department. gary cohn, president at goldman sachs. zhang xin, chief executive officer and co-founder at soho china. and ray dalio, chairman and chief executive officer at -- chief investment officer at bridgewater associates. thank you so much for joining us. ray dalio, is there something that the west misunderstands about chinese markets? and does that exacerbate the volatility we have

two separate reports that the chinese economy is slowing down and china guided its currency lower. european markets lower amid chinese conversation and that fear is spreading to europe. paris down 3%. frankfurt down 3%. futures in the u.s. pointing to a brutal open coming off a big selloff. the dow plunged 252 points. the dow's worst start to the trading year since 2008. nasdaq and s&p 500 down more than 1%. 2008 was a very bad time in global markets. north korea's hydrogen bomb is adding to the fears over the look at oil. crude oil just above $32 a barrel. chinese market jitters expected to ripple around the world again today. cnn's matt rivers live in beijing with the latest. matt, i hear again and again, everything the chinese government has been trying to do to sort of assuage the fears is having the opposite effect. >> reporter: that is what we are hearing from analysts in beijing and people we spoken to in hong kong. a bit of dark humor on the internet today. people joking that traders by the time they got in, they actually left before their coffee cooled down. it only took ab

pessimistica opinion on the chinese economy.stop people from expressing it with the circuit breaker system. now we don't have it anymore. day when we first don't have the national teams money trading into the market. the first chance to express the view on the economy. guy: is what you are saying, the chinese authority cannot control this market? time and time again, the market has proven them wrong. we have seen it moving before. for now, the market is starting to come back. have stopped substantially our curb back on lending. here is the market that is free to express its view on china. over the weekend we have seen substantial lower ppi. the deflationary pressure in china has been rising quite intense. severe day.other guy: ok. i would argue that maybe we are not in the realms of a real market yet. are we in need of a complete step back by the authorities to allow a cathartic moment to happen in these markets? or is that what is happening now in your view? >> at the moment, valuation is still very high. board, 60 times. on th

i am not trying to say that the chinese economy does not have problems. think the downturn is going to be deeper and more long-lasting than people realize. but i think we need to separate the gyrations taking place in a very distorted stock market in china from the reality of china's economic adjustments and what that means for the global economy. two big concerns. first is currency that the seem to behorities inclined now toward a currency valuation. i think that's a mistake. think it will help the chinese economy solve any of its problems and i think it may cause some serious headwinds for u.s. growth, so that is a concern. the other thing is, by sending all these mixed messages about the stock market, about currency and what the exchange rate should be, chinese creditors have really undercut their credibility globally. there are a lot of people saying are these guys up to the task? are a lot of people out there becoming more and more , and that isthat also sending shockwaves through global markets. angie: is that apprehension for foreignaden investors?

george: it is deflation and over indebtedness of the chinese economy.he total social debt is down 300% and maybe actually might be up to 350% if you take into account the external debt. so, it is serious. ♪ ♪ hans: welcome back to "bloomberg best." i'm hans nichols live in davos at the 2016 economic forum. here are "bloomberg best's" best conversations from the week. francine: when do you see it bottom out in oil prices? >> i think chinese is also an issue for oil. lower economic growth from china means lower, slower oil demand. which means there is going to be lots of oil in the market. we will have more supply than the demand. for 2016, the supply and demand , situation, prices will be under pressure and i don't see any reason why we will have a surprise increase in 2016. francine: what would it take for rebalance? at some point, this oversupply will come off the market. is there any possibility that after two months, this will affect the market more? fatih: this index at very low investments, which means in a few years' time, there'll be a strong upw

where is the chinese economy headed? inh a new plan presented 2015, how can the world second largest economy shift gears without stalling? what does all the market volatility tell us about the perception of china and the task facing regulators? we have an all-star panel. thank you for coming on. zhang xin is chairman of the board industrial and commercial bank of china. christine lagarde, managing director at the imf. fang xinghai, vice chairman china securities regulatory commission. gary cohn, president at goldman sachs. ray dalio, chairman and chief investment officer at bridgewater's associates. thank you for joining us. chinese markets have begun the year with a lot of volatility. what do you believe is the underlying cause? >> i do not believe that -- [inaudible] rate last year was 6.9%. all the economic indicators -- china is still the locomotive contributingnomy, a quarter of the world growth since last year. , in terms of the market, there are certain volatility. of course, there are complicated reasons, one of w

the chinese decision to suspend action has been agreed upon, but it is said they did this at an odd time. >> the economyt it is not collapsing and it is important to make that distinction. moreover, the chinese government have many policy instruments that can soft land the economy. the worry is that they lose control of the financial slide. to have seen them start less influence on the offshore currency market and that is of concern to people who follow this closely. talk now for more, let's to a deputy chief economist at asia economics group. great to have you this morning. i have spoken to people with a range of views about what is happening to chinese currency. some say they are aiming for a 10% devaluation against the dollar and that is what we are witnessing here. others say, no. what is your view? >> we are in the 10% devaluation camp and are looking for an adjustment. we expect, we would not be surprised to see it happen this weekend, if necessary. what we have been seeing in ch ina is that its policy efforts accompanied by the exchange rate policy and capital slight. is monetary seen base growth

investors are worried that the chinese economy, second largest in the world, is slowing more than the chinese government is letting on and that the government's haphazard attempts to intervene in its markets and devalue its currency are giving the impression that it doesn't know how to manage the trouble. our senior national correspondent anthony mason is following all of this. anthony? report scott, it was a painful day to check your 401(k). the dow is down more than 900 points since monday, that's 500%. the catalyst once again was china. the chinese market shut down after less than half an hour it was the second shutdown this week. investors are worried the chinese economy is slowing. gdp growth, which hit 12% five years ago, is now below 7%. if china's in trouble, that could mean trouble for the rest of the world. and with this chaos in the shanghai markets, there are worries the chinese don't have handle on their own economy right now, scott. >> pelley: and anthony, the chinese are also the second largest consumer of crude oil. you've been looking into the impact of that. >> repor

chinese economy has already changed to consumption-leading economy. so the chinese government is make great important on costing excessive supply, especially in the heavy industries. they will keep such a policy in several years. so the heavy industry will continue to decline. but organization will push that subsector of industries. and subsector industries invite high growth rate of employment and the wages will support growth consumption. that is a mechanism, the chinese economy, at present. >> significant gucci says chinese leaders should be flexible in setting their annual growth targets for this year. >> the prime minister already told 6.5% is their target. but i think they shouldn't stick such a specific 6.5%. they should have morelexible rget. r exampl around 6.5%. probably 6.2% or6.3%, that is no problem for them. they have very strong tendency to growth. but if they stick to 6.5%, they should make too much accelerating policy. and that will invite risk of inflation. that is risky. >> and that's it for business news. i'm going to hand it back t

investors yet as -- chinese economy. -- 25 have the economy year low.ocks entered a bear market. it is an easy way for investors to have a short alibaba exposure if they have concerns on the chinese economy, chinese stock markets. the investors are saying alibaba shares as i share that reflects the state of the chinese economy. you can see from alibaba's business line that they have sellers exposed to china's economy from the online retail stores to finance, to even off-line stores. basically, a lot of it has to do with the people's concerns over china, in general. digest this to week. alibaba, facebook, amazon, microsoft, apple. thank you all for joining us. to technology and politics colliding. this time, a slightly failed attempt at a -- a hawaii county councilman who is running for state senate decided to try to reach of voters through social networking site. specifically, the dating application, tender. buttactic was innovative, it did not pan out as he plans. tinder is of course a dating at. we are told that the honolulu civil be, that after he co

the big picture issue is the chinese economy, which is the second largest in the world, is just not performing well. today, more bad manufacturing data was announced and the chinese bank devalued its currency. concerns over the chinese economy sent stocks in the u.s. to a two-month low yesterday. the dow suffered a triple digit loss for the second tiue in three days, losing 252 points. the s&p lost 26 points. when it's devalued it makes good sold in u.s. dollars more expensive so that hurts demand in exports and elsewhere. china is a big export of oil and the slowing of economy has put a hole in the oil economy. >> see you later, jill. >>> the powerball lottery jackpot will grow into the largest in american history after no one beat the odds last night. lottery officials say no player picked all six numbers for the grand prize worth an estimated $500,000. those numbers were 2, 11, 47, 62, 63, and the powerball 17. the estimated jackpot for saturday's drawing is a whopping $675 million! >>> it could take weeks to confirm if north korea actually detonated a hydrogen bomb, and there is growing do

it is likely to show continued slowing in the chinese economy. big question is will the authorities allow that to be a soft landing or a hard one. on the evidence of the last couple of weeks, things are starting to feel pretty bumpy now. >> patricia sabga joins us now. and the numbers opening down more than 300 points. looking live at the board right now, they are still down more than 300 points. no corrections or changes. why? >> this is the momentum from that selloff in china, and oil prices dipping below $30 a barrel. and we saw that retail sales were down in december. now keep that in mind, december christmas shopping season, not a great reading there. but the other reason is you have to keep in fine that two-thirds of u.s. economic growth comes from retail spending, so that signals that american consumers are not spending as much as they need to, to grow the economy. >> $660 a year, consumers save in their pocketbook because gas is so cheap. but what does this mean for the 401k. >> we saw an graphic on oil prices. and some analysts are predi

but i don't think the chinese economy is faced with the risk of a hard landing.is still 6% to 7%. >> of course they have been fighting this losing battle when it comes to neri going down -- comes to narrowing down volatility. it's a situation where chinese companies are scrambling to pay off their denominated debt. we saw that spark in volatility. a way it shows that volatility a bit better because it is more reflective as market forces, as opposed to the tightly managed on shore. in terms of the damage to stockpiles of foreign reserves, this was the peak. we have the first annual decline since 1992. a survey of bloomberg economists saying it will go down to less than 3 trillion by the end of trillion, down to 2.6 by the end of 2017. certainly it is not an infinite amount of reserve. we had the imf chief not disagreeing, because they are trying to strike a sensitive tone. one to has been the accept the yuan later this year. that was really tantamount on becoming freely usable. of course capital controls is one massive step away from that. >> some are even wonderi

shanghai markets, there are worries the chinese don't have handle on their own economy right now, scott. >> and anthony, the chinese are also the second largest consumer of crude oil in the world. and you've been looking into the impact of that. >> reporter: yeah. crude, scott, hit a 12-year low today. $33 a barrel. the price has fallen by nearly half just since may, when it was $60. if you drive to work, it's like a huge tax break, but it's pretty painful if you work in the oil industry in houston. there's just too much supply now. and if china continues to slow, there will be less demand and gas prices could stay low for a while, scott. >> anthony mason, thank you very much, anthony. >>> the folks at dow jones told us today that the plunge this week in the 30 blue chip stocks alone represents a market value loss of nearly $0 billion. >>> well ted cruz is watching his stock rise, in iowa. major garrt took a ride with the republican front-runner 25 first votes of campaign 2016. >> reporter: we rode with ted cruz on day four of a six-day bus tour of iowa and asked about his birth in cana

over the next 75 minutes, we ask where is the chinese economy headed? plan being presented in 2016, how can the world's second-largest economy shift gears without stalling its growth engine? and what does the market volitility tell us about the perception of china, and the task facing chinese regulators? well, we have, i am pleased to say, an a-star panel. thank you so much for coming on. jiang jianqing, chairman of the board of the industrial & commercial bank of chi.