chinese rate, the main pboc main policy strument, is currently set at 1.5%.here, china is including smartphones and smart watches in consumption subsidies to promote domestic spending according to bloomberg which says by widening the trade-in program, beijing hopes to bolster demand and counter defects of any u.s. tariffs on exports. clearly, the authorities have started to think about what this could mean, the tariffs could mean for the chinese economy. we don't have that detail from the trump administration yet. >>> the u.s. treasury department aims to address national security concerns and under the new rule, u.s. companies that invest in chinese semiconductor, a.i. and quantum computing firms, that would face criminal penalties. at the same time, they added 28 companies to the export control list as it aims to safeguard national security and interests. our own sam vadas filed this report. >> reporter: chinese stocks on the weakest start to the year. bond yields touched fresh record lows. china reiterated the increase of funding to fuel growth, but investo

there is a story going around that the pboc have been injecting liquidity into the money markets over the past few we say and some people in china suggest that means a delay to interest rate cuts this year and that is obviously not something investors were looking for. they were hoping the pboc would step up really likely, but there would be at least a reserve ratio cut in the early part of january, and the low crime rate would be brought down. looks like that is being postponed. investors do not like that. january will be a tough month in the chinese region. we have not just the inauguration of trump coming up, but the year is coming earlier than usual. that is in january so investors are looking for recent data on the sidelines, there are plenty. that is what it looks like with a negative start for hong kong and china today. lizzy: misting to juxtapose that with the optimism of resident xi 's new year's message. christine lagarde says 2% inflation target is insight. >> we have a big heavy agenda at the ecb. we made significant progress in 2024 in bringing down elation and hopefully,

things, that this is really a dollar story that also to some that it will not be long now before the pboc eventually has to start loosening its grip so that is what is standing out today. >> thank you very much indeed. avril hong with a check on the asian markets. justin trudeau is expected to announce as early as this week that he will be resigning. trudeau has been under pressure for many months. what do we know about the reports and this potential resignation for trudeau and the challenges that the canadian leader has been facing? >> there's a lot of challenges he's been facing. this is kind of the culmination of the past month and a lot of the issues and difficulties him and the party have face. they are reporting he will be resigning or likely to resign at some point this week and reuters reporting as well afterwards that he is likely to resign by wednesday, when his party is expected to have a caucus meeting so sometime before wednesday although i should know clearly that he has not as was reported in the globe and reuters decided definitively that he will step down but certainly it

we will be watching for signs of that but ultimately despite these signs of support the pboc governor talking about proactive policies, chinese exports rising to a record given frontloading, not helping given the tariff and stimulus uncertainties. flip the board because that's also likely to pressure not just chinese stock the chinese currencies as well and today we saw the pboc actually coming through with measures to broaden support for the chinese currency so it was a strong fix and we also got verbal intervention. these are among the tools they can use but what was interesting was its tweaking of capital controls, allowing firms to borrow more from overseas it remains to be seen how effective this will be because there's ultimately an unwillingness to lend to chinese companies. it was not just the chinese currency hit but this was also a day where we saw the asia dollar index, a gauge by bloomberg of asia currencies excluding the yen, slipping to the lowest since 2006, the rupee also at record lows so we are watching out for intervention from central banks in the region and some o

we had the pb's -- pboc coming through with a surprise announcement that it would stop buying bonds. mainland benchmark down .9% and the focus in terms of suspending bond pine is to support the currency in china. the nikkei in japan down 1% so a tough day as well for japanese stocks at 39,190. elon musk has waited into germany's election with a conversation with a far-right candidate on his social media platform which amounted to an unpaid advertisement essentially for the afd. let's bring in oliver crook with the details. you have spoken to the leader of the afd yourself in a different context and have posed some difficult questions. what was discussed between them? >> this was a wide-ranging conversation. i think it's fair to say wide-ranging. it began on energy policy and issues she has with renewable energy and angela merkel and these sorts of things and then immigration, the sort of woke mind virus sort of stuff set up for elon musk to bite on. it also went to hitler, the colonization of mars and whether either of them believe in god so it was a long and meandering conversation.

when we take a look at chinese stocks, part of it might be optimism that a joint briefing between the pboc and securities regulators might produce positive headlines that drive markets. the other element is it has been looking oversold. this chart shows you the port of call ratio -- put to call ratio and how sentiment has been reaching lows. a turnaround, suggested against this backdrop. and coming through on this gradual approach potentially for tariffs, the reaction has been pronounced on fx. as the dollar falls back we have seen spikes, the kiwi and aussie dollar. one thing is for sure, fx volatility, something we have to get used to under the trump administration, focusing on what we see from the boj as well, a big speech by the deputy governor seen as the last chance to telegraph to markets a hike next week. ultimately he said the board will be discussing one but that is far from actually pulling the trigger. markets aren't convinced. bond markets are a bit more convinced of a hike for the boj or hikes, and the selling continues, part of the global selloff, the yield on the 40 year hi

that has forced the pboc's hand in terms of support, another strong one today but also via plans announcedoday that it's going to issue a record amount of hong kong bills. this another way to add to demand for the renminbi. the end is among those currencies that are weakening in the asia-pacific. i want to highlight focus and the japanese currency today. some of this has to do with the consolidation in the u.s. dollar but also after data out of japan showed base pay climbing by the most in more than three decades and of course when it comes to japan and the policy expectations, what the boj wants to see is that positive picture on wages, stimulation of the japanese economy, enough for them to take their foot off even more from the stimulus handle, so to speak. this is a positive sign but at the heart of the matter is how traders are not convinced that the japanese policymakers are serious about hiking or tightening later this month. if you look at the pricing, is still 50-50 for a of weeks from now. you are seeing some firmness in the japanese yen but overall still a story of weakness in t

. >>> especially where, the pboc will sell 60 million yuan next week the biggest issuance of bonds.his is in the bid to fight pressures on the yuan amid the stronger dollar and falling chinese ields and rising trade tensions the yuan is on a six-month low against the u.s. dollar. meanwhile, producer prices dropped 2.3% year on year last month. the 27th consecutive month of declines >>> coming up on the show, we will hear from president trump as he announces the data centers as he was prompted by trump's victory. let's say you're deep in a show or a game or the game. on a train, at home, at work. okay, maybe not at work. point is at xfinity. we're constantly engineering new ways to get the entertainment you love to you faster and easier than ever. that's what i do. is that love island? >>> welcome back to the show the u.s. president-elect trump announced a $20 billion investment from damac properties whose founder, hussain sajwani, will build data centers in the u.s. sajwani subjected the move had been prompted by the election. dan has been speaking with sajwani about the deal he joi

the pboc is pushing this for the move.or more, check out cnbc.com. >>> now the uk chancellor rachel reeves and bank governor andrew bailey will continue with the trip to china although there were talks about cancelling about the pressure of gilts. sam vadas filed this report. >> reporter: rachel reeves trip to china is described as a curious time as beijing welcomes the push for reengagement and there are questions if things will change particularly with the spy allegations which beijing denies. mean point out it comes at a time when both economies are facing challenges. in china, officials are desperate for more foreign investment. at the same time, they are skeptical with western trading partners like the u.s. and eu given tariffs and export controls. what is interesting is there is extensive coverage in british media, few details in china. there's been no shortage of state media commentary since starmer took office indicating an independent plan to boost trade with china. the policy is basically similar to the u.s. appr

the yuan getting support from the pboc moves to limit the speed of depression pressure on the currencyingapore, sam vadas, cnbc business news. >>> coming up on the show, two of germany's largest political parties confirm their candidates for february's snap election. we'll have the details after this break. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. z's bakery is looking to add a pizza oven, arissa's hair salon wants to expand their space, and steve's t-shirt shop wants to bring on more help. with the comcast business 5-year price lock guarantee, they can think more about possibil