this has been the case for many major economies in the world. yet the chinese economy has great potential, resilience and ample space for policy adjustment. we have the confidence and capability to maintain a certain speed of growth to meet our two incendiary goals. these two goals are to meet the gdp and create a prosperous society in all respects by 2020 when the communist party of china celebrates its centennial. and the second centennial goal is to build china into a prosperous, strong, democratic and erroneous country by the middle of this century when the people's republic of china celebrates its centennial. over 120 million chinese have received a polished education and beyond, and each year our universities turn out over 7 million graduates. they form the basis of our abundant human resources for high quality development. as the chinese people have defined tradition of value and frugality, our household savings has stayed above 38% over the years. so for households, quite a number of their money has been saved. last year the increased res

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-on-year with 20 million overseas visits. and more than 1 trillion registering an increase of 20% with the global commodity from international markets in 2016. the volume went up by eight-point

with the world economy -- what the world economy needs today is greater openness, includiveness, incorps ration and winning results. in the next five years, china will commit itself to developing an open economy at a higher level, and seeking economic cooperation with other countries as partners. china will continue to advance the initiative of jointly building, that will share the benefits and a common development with countries along the routes. stressing international cooperation and industrial capacity and equipment manufacturing and help developing countries in current infrastructure development and to become more industrialized. we're willing to speed up negotiations on f.d.a. and investment agreements, tear down all kinds of trade barriers, continue to improve the environment for investers in china and to participate actively in global economic governance. since the turn of the century, the contribution per person by more than $1.3 billion chinese people to world economic growth has always been above world average. to ensure sound development in china, it's in itself an important

it is one of the two largest economies in the world. largest economy in the world so i think we would be crazy not to talk a lot about china and the transformations that are at play at the moment are going to be both fascinating and will matter a lot for the rest of the world. we've seen it over the summer, surprise, surprise. we're going to see it more going forward because there will be spill over effects in the vicinity because there is a china supply chain. we'll see it across the world as well. and any, you know, significant reduction in the growth of the largest economy in the world or the second largest economy in the world depending how you calculate it is obviously going to impact the rest of the global economy. francine: from 2010 to 2015, growth rates, for china have fallen by four percentage points. looking at 2020 what do you think the growth rate will be? >> now, okay. let me -- >> before you answer that -- >> go ahead. >> it's fascinating. people say, oh, china's growth has collapsed at 6.9%. well, look at the output relat

it is one of the largest economies in the world. largest economy in the world in some terms, it will be crazy not to talk a lot about china and the transformations that are at play at the moment. they will be both fascinating and will matter a lot for the rest of the world. we have seen it over the summer, and we'll see it more going forward. there will be a fax in the facility because there is a china supply chain. we will see that across the world as well. significant reduction in the growth of the largest economy in the world of the second-largest economy depending on how you calculate it is going to impact the rest of the global economy. chinane: growth rates for has fallen by four percentage point. looking at 2020, what do you think the growth rate will be? we keep, it is fast cynical people say china's growth has collapsed. output based on what it was six or seven years ago. we have the same growth rate. i'm sorry, i will stop here. [laughter] someerstand there is concern about this current year in china. some forecast the beca

where is the economy heading? how can the world'second-largest economy -- volatilitymarket tell us? we have an all-star panel. thank you for coming on. thank you so much for joining us. is there something that the west misunderstands about chinese markets, and does that exacerbate volatility we saw the last two weeks? think there is a lot the west misunderstands about the chinese markets. -- essence is and adjustment four major challenges. they have a debt restructuring challenge. they have to come up with a new model for the economy. they have a capital markets challenge to build the capital markets in an efficient way so through thes system. and they have a balance of payments challenge having to do with the pressure on the currency and the outflows. these are things that have happened repeatedly through the rest of the world. the united states has had three major debt crisis is. we cannot pay our debts in 1971. we had a debt crisis in 1982. now crisis.s and we shaped our economy many times. i remember when the steel industry ended

, the world economy, is okay, and a war in that part of the wwrld would not be helpful at all to the world economy. >> hill says the u.s. needs to reassure its allies and needs to engage china to help stall north korea's nuclear ambitions. >>> today, may not be the day to check your 401(k), after the news from north korea, investors were scared, the dow dropped 252 points, most of what it gained back yesterday. this is the worst start to the year for the dow since 2008. there was a lousy day for colorado based chipotle, now facing a criminal investigation, exactly this investigation means, investigators will look into what made 189 people sick a few months ago and then decide if the restaurant chain did anything wrong. >>> blue bell ice cream, you may remember the company's linked to 10 cases of listeria, 3 people died. since then, the company closed down its plant, cleaned all of the equipment and retrained its staff. >>> the historic land mark or a safety concern, two silos are in fort collins are at the center of a heated debate. the two cen

the world as well. and any, you know, significant reduction in the growth of the largest economy in the world -- or the gest economy in the world, depending on how you calculate it, is obviously going to impact the rest of the global economy. francine: from 2010 to 2015, growth rates, for china, have fallen by four percentage points. looking at 2020, what do you think the growth rate will be? mr. xinghai: now, okay. let me -- madame lagarde: >> before you answer that -- mr. xinghai: >> go ahead. madame lagarde: >> it's fascinating. people say, oh, china's growth has collapsed at 6.9%. well, look at the output relative to six or seven years ago with 12% or 13% growth rate. we have the same. so give us -- sorry. i'll stop here. mr. xinghai: i understand there is some concern about this coming year in china. some people forecast that, because of the volatility and so forth, somehow 2016 would be a very bad year for china. that the growth rate would slow down dramatically. i don't think that will happen, because, in china, we cannot afford to let growth rate to job short -- toop to sharply, because that wil

the global economy. today it is the world's second-largest national economy. the pace and scale of economic growth in our region is utterly without precedent in human history. it would not have lapped, and its continuance cannot be assured, without the security and stability underwritten by a strong and enduring united states presence in our region. one-third of the world's middle class lives in south and east asia today. by 2030 it will be 55%. and it is not just china. the indian economy grew at 7.4% in the year to september last year making it the fastest growing major economy in the world. closer to our home is indonesia. a quarter of a million people. the world's largest muslim majority nation. its per capita gdp has increased by more than 50% over the past decade. now we want to make the most of these opportunities on our doorstep. we've championed the transpacific partnership and we urged your congress to do so, too. and we've signed or are working towards free trade agreements with all of the largest economies in the region. free trade is not just good

>> well, this is the people i've spoken to tend to be be wilderred in the sense that yes the world economyrouble in the sense that there are some worrying things going on. some big changes going on but seems to be no reason to believe we're suddenly leaping into a world recession so the markets seem to be overshooting getting exaggerated in their worries as they tend to but of course if the markets stay like this that will change the world economy. it's not just something that goes on outside of the world economy, it's part of it and if it's bad enough could make the world economy, particularly if it leads to real financial shocks weaker than we expect. so the were i ri in a way is what we have to fear is fear itself as some people argued and that's where i am at the moment. there's real things to worry about and oil prices for example but i think it's going to be positive for the world economy. so it's a bit exaggerated. in fact quite a bit exaggerated. >> thank you for joining us. a pleasure speaking to you. do come and join us in studio in the future with or without your hat as you wish

. >> a lot of exports come out of northeast asia and we need to make sure the world economy is okay and a war in that part of the world would not be helpful to the world economy. >>> he says it needs to reassure its allies. >>> 5:15 a.m. and former cia a -- >>> a california woman trapped inside her car as the water >> her boyfriend drove into some standing water. her boyfriend was able to get out but he was trapped on the passenger side partially under water. 3 >> her head was above water. sse was sitting in about a foot and a half to 2 feet of water still inside the vehicle. and parttof the vehicle was sitting on her ankle. >> the woman was in thereeabout 90 minutes before getting out of there. very lucky. >>> yes, this is the storm we have been watching very closely. >> reporter: a lot still can change in the next 12 hours but it does look like our totals are going to be better in and around denver, some pockets 12 inches of snow. >> wow. >> reporter: now this is spread out over- two days, but llok at the radar, we do have might pick up a few flurries, heading from walsomburg you are

, the world economy is okay, and a war in that part of the world would not be helpful at all to the world economy. >> now, hill, now the dean of the school of international studies says they need to work closely with china, china will focus on china and that part of the world and not exclusively on the middle east. >>> what is the difference? between the more common atomic bomb and a hydrogen bomb? a-bombs use fission to split plutonium. h-bombs use fusion to combine smaller at toms. the hiej general bomb is seeing as being hundreds of tiles more >>> all right. hopefully, you picked up your powerball jackpot tickets, somebody could be hours away from winning 500 million dollar, could be you. this is fourth largest in history. it's not just the lucky winners that will benefit. brendaliss, some of the money dpoez into helping our state -- goes into helping our state. park, many parks like this, will benefit from every single ticket sales they're going to get. in fact rs for every dollar you spend on a ticket, 24 cents is going to go to parks like this one, to improve things like this walkin

the world would be determinative. we are certain that the table on the major issues they will be facing the world. they will be the first or second economye world and to not know what china is doing. look at the way we are interpreting what they are doing now. to me it is sort of phenomenal that people assume this is over. they are going away. let's invest on the basis because other people believe the same thing. we can force markets down another things. china is a developing country. we look at it as if it's developed. it is not. maria: the transition from export to consumers doesn't happen overnight. >> and it comes with complexity. one of the things about developing economies if they don't always get everything right the first time. chanteuse discover great to have you on the program. congratulations to you. chairman of the black -- things in selloff mode. stay with us if legalzoom has your back.s, over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. .. maria: welcome back. we're back. we're looking at a sharp selloff in equities

in fundamentally changing the economy, the chinese economy has tools in the economic and first call toolbox. for example, the interest rate, while interest rates around the world are practically zero, in china it's around 4%. they have room for manoeuvre, as people expect. and possibly economic stimulus, there's no doubting that the slowing of the economy has an impact on the rest of the world. you look at what the commodity and oil price are to realise that it is taking place >>> benjamin is research manager for china policy, an analysis and advisory firm and joins us from beijing. good to have you with us. yet another big slow down, but is anyone in china concerned? >> great to be with you. i think the bottom line is china is that there is an air of acceptance of complacency in that there was no real expectation that china would be maintaining 14%, 12%, 10% growth year on year. this is all part of the natural process in china, moving away from a state investment led economic growth model to a model more evenly balanced, and which sees services play a role in the economic make-up. part of the economic figures coming out is servicing more than 60% of the china

the world economy. it will create a slower growth dynamic for everybody. while you can necessarily play the china devaluation, in terms of the u.s. dollar, what does it mean? anthony: kyle: it means a stronger dollar. ago attached to their currency to the dollar because i think they hitched their wagon to our star very smartly back then because our goal in the united states was to depreciate our dollar through inflation. ofwe issued debt to the rest the world. we depreciated our dollar. we ended up getting -- gary: monetizing the debt. lesshe debt with dollars -- dollars with less than the dollars you borrowed. kyle: china has hitched their wagon to our star and their currency has appreciated. to let: they are going it go in the u.s. dollar will be the beneficiary. gary: let's explain to viewers why it is killing them. their goods and services produced in china and sold around the world will become more expensive as a result of that appreciating currency. kyle: that's right. there was a labor arbitrage

the world? we still don't have trade deals with the three largest economies in the world. would think that would have happened by now. francine: they must also say, i'm really scared of a plan b. what happens, i need to have a plan b, which may be looking at the u.k. leaving the eu and having to start from scratch. i'm sure there are businesses looking at all the different scenarios. i think what they are most focused on his understanding first of all why britain is doing this. it wants to see sensible reforms. ishink where their support is actually saying yes, you are right. let's get these changes. everyone wants to see more competition. it will lead to jobs and growth. that is something parts of europe are very short of, jobs and growth. luckily, in britain, we've been going through what some people are calling a jobs boom. we've got more people employed than ever before. this is all great news. we want all of europe and benefit. francine: that is encouraging news. governor carney is not ready to hike interest rates. does that not point to weakening growth and concernwe

the world. any significant reduction in the growth of the largest economy in the world or second largest economye world, depending how you calculate it, is obviously going to impact other economies. >> the growth rate in china has fallen by 4 percentage points. looking at 2020, what do you think the growth rate will be? >> it is fascinating that people say china's growth has collapsed at 6%. if we look at the output relative to what the output was 6, 7 years ago with 12% or 13% growth rate, we are the same. give us -- sorry, i will stop here. [laughter] >> i understand there is some concern about this current year in china. some people forecast that because of volatility and so forth, somehow 2016 would be a very bad year for china. growth rate will slow down dramatically. i do not think that will happen because in china, we cannot afford to let growth rates drop to sharply -- too sharply. we will have what we call appropriately expansionary supportive fiscal and financial policies in this current year to make sure that growth rate is still appropriate. china has the means to do so. obviously, w

i think countries be very committed to focus on being responsible for the world economy. demand will play a big part in this. francine: thank you so much. this is a vice-chairman that is one of the few optimistic ones says it's a time of challenges. you almost get the best out of your these times. betty: that's right, it becomes an opportunity for those who stand their ground. thank you so much. let's go to the market task. let's check on the markets. let's start with the oil prices. we cannot say enough how important they oil prices to the market. ti crude oil is barely off the lows of the session, down 3 2/3%. this is a low that has not been --n since september of 2008 a all 2008. we hit an intraday low of 4% earlier. looking ahead to thursday, looks stocks show we could increase the glut we are seeing at about 2.70 5 million barrels. let's take a look at my bloomberg terminal, glco, the global commodities look. is across the it board. sector is down nearly 4%. expect to be down on the slowing global economy and the glut in commodities is what is happening. at gold, it i

the u.k. economy and look at what is doing the heavy lifting right now. the worldout industrial goods 100%. you look at what is happening in china and you look at the reorientation their time to make their. news --sn't come to this doesn't come as news to is it as bleak as we are making it out to be? caroline:e number -- apple numbers this week. luxury is doing badly in china. starbucks isn't doing badly in china. maybe this isn't quite as worrying. -- of the charts guy: is that a value chart? it is a volume chart, not a value. know it i think there is a big point to make. certainly the industrial side of the economy is suffering. you should not make the assumption that that is the economy. caroline: in 2008, we knew there was a bank and financial crisis. this time, is it really china? what is really rattling the market? guy: debt crisis. walk your way through the story and you come across a number of potential problems. caroline, thank you very much indeed. let's suck about the day ahead first up, -- let's talk about the day ahead. first up, mario draghi. we get a

rishaad: the uncertainty surrounding the economy in china is the focused of the world economic forum king place. >> the chinese authorities have plenty. rishaad: jp morgan chairman says there is a disconnect between financial markets and the real economy in china. >> the financial markets in scary -- aeally a very small fraction of the chinese economy. china will continue to grow. it will continue to grow at a slower rate in more detail. and it is by design they changed their growth strategy from manufacturing and export and import services demand. >> if you look at china, they are changing the economy to a consumptionc economy. it is part of making the global economy healthy. rishaad: that is the word on davos.n devil's -- in as 14% on as much speculation that news corp. may be keen on buying all or part of the company. that field -- that fueled rumors. twitter still ended the day 4% higher. apple entering india. india lightening regulations. goldman shares and just down about 2%. imposed a $2.3 billion loss in its fourth quarter. said challenging market conditions also hurt revenues

the u.s. economy at the precipice of a downturn again? a lot of talk of recession. >> rose: looks like the strongest economy in the world. >> but the you judge from the campaign trail, there is a huge swath of americans who perceive their economy to be in recession and then there is the relationship of equity prices which are in many ways a messy and terrible gauge for all these things, but every time markets go up and down, they are used as a gauge for these things, and that's the argument playing out. i happen to think that the fear and concern within the equity markets about these stories would say all those things are collapsing and i don't believe that to be true. i think we're in a disconnect between the real world which isn't great but i don't think it's on the verge of collapse. it is if you're in venezuela but not the u.s. but the equity markets are signaling something else. >> and part of that is we're in the midst of a profit recession where profits will decline for more than two quarters. you had companies buying back shares with money they often borrowed from the debt market because borrowing costs were so low to help boost earn

when t y halted that, this came after some news came out that the chinese economy which is income ber two in the world is definitely slowing down. that has major implications not only for the asian economy but the world economy, b we're ex going to w to see what happens tonight. they're going toth reopen tonight. if the selling continues, the cycle may continue all over again through europe and into our own market again tomorrow. so we're off to a rough start, but we'll see what happens later today. >> all right, bill. we know you're watching. >>> coming up next here at noon, what happened to these school buses you're going the see here that forced officials to cancel classes just a few hours before school. >>> hillary clinton brings out her not so secret weapon, her many people clean thl r dentures with too prthpaste orlain at. and even though their de ntures look cl n, in reality they're not. if a denture were to be put under a microscope, we can see all the bacteria that still exists on the denture, and that bacteria multipli very rapidly. that's hy d tists recommend e cleaning with polident everyd

>> they were at a very small level in the world economy. they have done very well with their export oriented strategy and a lot of investment building up housing in manufacturing. but now they are the biggest exporter in the world. it is hard for that to grow much more. they overbilled the capital stock in housing, manufacturing, so they are going through painful adjustment. the smart thing is to accept that define structural reforms and encourage new parts of the economy. sectors, new industries, new valuation that would stimulate the old economy, and a sign that they were going back to their old ways. were appropriate 20 years ago, but they have run out of steam. david: you have spent a lot of time over there, living, traveling, you have watched this transition happen firsthand. how is it going? we have seen such turmoil over these last few weeks. stepping back a big further, how is that transition going for this country? >> think in many ways it is going pretty well. they have not helped himself this year with the number of policy moves.

the macro economy is working against abenomics at the moment. howard: all this week, they would love to have a bit of inflation. it is difficult when the worldslowing down. they are doing their best. they had structural problems for so long. not really addressing the structural problems. they are using macro economics and monetary policy to try and stimulate the economy but they're not making the structural changes they need to make. francine: very good point. listen to, howard, japan. the u.k. gdp for the last quarter of last year. and we speak to the chairman of an italian industrial group. ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. francine: welcome to "the pulse." we are just getting breaking news -- u.k. gdp bang i

because the growth rate will only be 6% when the rest of the world, developed economies are 1%-2%. e are still somewhat dependent on it that it does not mean the rest of the world is entitled to a growth rate of 11% or 12% or 10%, which came with the last phase of china's growth trajectory. while we were humming along at 10% gdp growth because we were building and building, people were coming on and talking about building bridges to nowhere, china is going to zero. which is not wrong. . that is exactly why china stopped. and started the transition and the final phase, which ultimately is the most constructive for the whole world economy. liberalized, we are liberalizing exchange rate policy, we are empowering consumption. pluswe get the one billion consumers from china, it is good not just for china, but the entire world. betty: can we get the eventual goal, which is good for the world economy, good for china to do this, can we get there without china falling into a recession? >> i think we can and i think there are plenty of things to be including thet economy at home and the polit

the u.s. economy is in decline. president obama: the united states of america right now has the strongest, most durable economy in the world. anyone claiming that america's economy is in decline is peddling fiction. caroline: just hours before that address, reports that 10 u.s. sailors have been detained by iran threatened to overshadow the event. senior officials moved quickly to quell concerns over the incident, saying they had assurances from the iranian government that the sailors were being treated well and would be released soon. guy: half an hour until the european equity market open. european fair value is pointing to a positive pitcher. euro stocks are up by nearly 1%. what i want to talk to you about is the idea that we are seeing a little bit of a sellout in asia. shanghai has certainly turned around. the export data earlier on seemed to propel markets higher. we saw some fairly big moves in the aussie dollar, up right 3/10 of 1%. that is where oil is trading. remember, we had a wtisub-$30 o. you can see shanghai turned around into the close, nearly down by 2.5% to the export data is interesting -- by 2.5%. we a

the interesting thing if you think about the world economy in biglast decade, amongst the companies inhe world, energy and materials. a totally distorted world economic growth situation because of this cheap money and china booming and the emerging markets booming. it has been commodity centric. china is slowing. cheap money is going away. demand is softening. thes not just china it is western world. so much is linked to commodities. manus: i want to show you the baltic index. this goes back, we are at the lowest level we have seen since 1986. a lot of people use this as a vicarious measure in terms of what is going on in the world. when you look at that, look at the last 10 years. what does that say to you from an economic point of view? chris: that we live in a deflationary world. we are not in a typical inflationary bust at all. that is white analysts are grappling. we are in a post global credit boom world. the other side of the 30 year credit bubble. manus: the consequence for that with central banks is next. rent rallies by nearly 2% this morning. 29.09. banks take the world stag

the world marks, a new wave of oil coming from iran. under the nuclear deal between iran and six world powers, europe's oil embargo on iran has ended and iran will rejoin the world economy after a decade of isolation. the country is the world's seventh largest oil producers. >>> holiday sales didn't go quite as expected according to the national retail federation. sales rose 3% in november and december, below the 3.7% forecasted. still, plenty of people did do their shopping on the internet. and online sales exceeded expectations and grew 9%. >>> the price of chocolate is on the rise again. stronger than ever. if you are planning to surprise your sweety on valentine's day, be prepared, to pay more. shortage. higher. "the wall street journal" says that is due to poor farming conditions. chocolate prices are up nearly 40% in the past four years. >>> visitors to new york city may soon see fewer of that city's iconic horse-drawn carriages. >> mayor bill deblasio and union officials report that they have reached a deal that would allow the carriages to continue to operate. animal rights advocates and mayor deblasio wanted to ban the horse-drawn carriages all together. under

those things prove the world economy is changing. >> reporter: the world economy is changing, and the issue they're going to be talking about here is factoring in them. it's always this strange dichotomy between dealing with the crisis of the day and keeping your eye on big global issues, big, pardon the pun, blue sky thinking. and that's what they're going to do. the blue sky thinking we can put to one side for the moment. on oil prices, it really does come down to who wins and who loses. you have the losers who are the oil exporting nations. particularly the girls, russia, you have brazil. you have loads of oil -- nigeria. they're on the losing side of the equation. and the gaining side are the oil importing countries. particularly those like japan, net importers, vast importers, and then you have the united states. at $27 a barrel, just about every oil exporter is in deep trouble for one reason or another. and so that's one of the issues they will be talking about as they come to deal with this issue. and also, how you factor in iran increasing its oil production, whether it's half

the u.s. economy are seen as less immediate than elsewhere in the world. feldstein points to the need for serious reform of u.s. medicare and social security and to revamp the tax system in order to break out of the 2% group doldrums. but that 2% looks impressive compared to other developed economies. >> i think we're on pace to enter this economy with still a very good job market and continued job gains. it may be a yawn in terms of one more year of 2%, 2 1/4% growth, but i think that's actually quite good, we're adding a lot of jobs, we're getting unemployment even lower. >> reporter: 2016 will be strong enough for the federal reserve to raise interest rates three to five times this year. but that forecast depends in part on whether foreign troubles wash up on america's shores. the conclusion from today's market trade is the u.s. economy can't go it alone. for "nightly business report" i'm steve liesman in san francisco. >>> u.s. manufacturers continue to feel the heat. activity in that sector contracted at the fastest pace in more than six years in dece

the world's major markets. and in the last installment of our series, we looked at the economies of asean. some are call thing region the center of growth. i asked an economist what he's expecting in 2016. >> he's a chief economist at economic research institute for asean and east asia. i would hike to start with what kind of year it will be for asean nations. >> the average growth rate is around 5%. the fastest growing nations are cambodia, laos, they would grow over 7%. and then the philippines and vietnam are doing pretty well, too. malaysia is going slowly. maybe a little less than 5%. that's the typical forecast. thailand, still some political turmoil, so people say 3% growth. >> he expecting china's slowdown to influence southeast asian economies but the bigger risks come from within the ten nations. >> even if china's economy is slowing down, still actually that kind of transaction -- i think china slowing down would be limited in terms of manufacturing productivity over there. their own risk is how they can make a sort of career targets for development. i think they have to do that

but what is going to be the growth catalyst for the world economy? you saw the other day christine lagarde, the head of the imf expressing much more gloom about the world economy. best news is the united states. >> we're going to be affected by what happens globally, i'm afraid. >> yeah. >> good to see you, dan. thank you. >> thank you. >> dan yergin from ihs. we are headed to the close. 35 minutes left in the trading session. still a 300-point decline for the industrial average. one that we're really keeping an eye on, though, the nasdaq, which is down sharply today with technology really taking the hit. nasdaq down 2.6% right now. >> coming up, why morgan stanley's chief strategist is telling clients to off load tech, too. >>> also, then there's twitter. losing half its values since jack dorsey came back to run the company officially in july. we'll look at why this stock just keeps struggling, when we come back. >>> welcome back. another tough session for stocks, but this was wasn't, bill. where we were watching china overnight first. i mean, this i

the world. at the summit, i hope we will address such issues as the increasingly opaque prospects for the world economy, poverty, the struggle against terrorism, the state of the asian pacific region and other issues facing our world. the g-7 members are the leading proponents of such universal values as freedom and democracy, the rule of law, and human rights. as chair of the summit, we want to take a global and future oriented perspective in order to play a leading role in helping the world and the region find the best path forward toward peace and prosperity. with regard to russia, i share the view expressed by president putin that it is an abnormal state of affairs to have gone more than 70 years after the end of the war without signing a peace treaty. the question of the disputed northern territories is one that cannot be settled without a summit meeting. such issues as terrorism, syria, and iran, for these it is vital to obtain the positive engagement of russia. i intend to take advantage of all opportunities to continue dialogue with president putin. regarding a possible visit to japan, we will

the initiative in creating world peace and stability. >> translator: at the summit, i want to discuss various issues, such as the world economy, poverty and the fight against terrorism. i also would like to exchange ideas on stability in the asia-pacific region. >> reporter: abe said he wants to seek a breakthrough with russian president vladimir putin in a long-standing territorial dispute and finally sign a bilateral peace treaty. he also said that he's planning another summit with china and south korea. leaders from the three nations met last november. another challenge, he said, is getting young people interested in politics. over 2 million teenagers will be able to vote for the first time in the upcoming upper house election. >> translator: i want to work hard to show young people that medical expenses and pension premium payments will greatly affect them. and both diplomatic and domestic issues are relevant to them. >> reporter: abe's three-year-old administration will face popular judgment in the upper house poll. until then, the electorate will be watching his performance closely. nhk world. >>> saudi arabia has severed diploma

the u.s. economy is in decline. president obama: the united states of america, right now, has the strongest, most durable economy in the world. anyone claiming that america's economy is in decline is peddling fiction. bears one of the biggest says there is more bad news ahead. ndlanch said that ack hiu really ugly situation would be more likely if the fed keeps hiking interest rates. downside, high yields are very unlikely to rally. the redemption cycle -- we could be looking at a real ugly situation during the first quarter of 2016. and it is particularly more likely to happen if the fed keeps banging this drum of raising interest rates. nejra: and that is your bloomberg first word news. anna? manus: thank you very much. the chinese government has yet to stabilize the yuan. the trade data this morning shows a rebound in december, and the surplus had widened. anna: we will break down the numbers in a moment. let's head over to hong kong, where david is standing by with the market reaction. david, this has been taken quite well by equity markets in general i'm even if that does not necessarily apply to china. david: absolutel

a bonus, the drop in the price of oil is good for the world, half a percent or one percent plus is going to be better for the whole of the world economy the wind in our sails and low prices of oil and low interest rate and the weak euro and things have not happened yet and why is that? productivity remains freightfully and why is that, investment is growing at 2-3 instead of 7% which is cruising speed and trade is growing 2% instead of growing at 7% which is the cruising speed and do people know that credit is not flowing particularly to the european areas but also in the medium and small enterprises in many of the developing countries because banks have become so absolutely, you know, cautious but also because they tightened the condition and who were the big engines of growth in the last ten years, emerging economies and dramatically deaccelerated and you have all the four cylinders of the growth engine in the last eight, six, seven, eight years that are at half speed and why are we surprised what is going on. >> pleasure talking to you, thank you so much for your time. >> thank you. >> so you get the word there hasam we maybe shoul

and look at the real economy, don't look at the financial markets as an intermediary of the real economy. we have been no in a time where there has been a disconnect between what the worldinancial markets tell you and what the real economy shows you. it was really pronounced in china where financial markets went off their own way almost unrelated to the economy. by the way, the correction in the financial markets in china is significant and maybe, i would say, welcome, because any balloon that has too much air in it needs to let some air out without getting to explosion. but let's face it, china is mirroring a very small section of the chinese economy. china will continue to grow. it will continue to grow at a slower rate than it has. it is by design. they have changed their growth strategy, which means they do not need to grow as rapidly. it has international applications. it reduces the demand of commodities by china. it has indications in a case-by-case approach. not everybody is affected. erik: once again, the selloff feels kind of like 2009, but i hope not. brian: will countries be able to sustain that growth? i think that tug-of-war things plays out in the market.

maybe a little less, it's the world's second largest economy. there's plenty of room for growth if you're in the infrastructure business and you take a long cycle view, you have to bet on china. >> a lot of the problem in china is corporate governance so we still find it very difficult to find companies to invest in for the long-term and a lot of the money coming into the market and going out is short-term money at the moment and they find it quite painful to try to keep the market up when in reality you should just let it find it's level and people will come back in. so let it come down quickly and take the pain. >> i think the tone from a lot of those gentlemen was mildly positive despite the oscillation in the markets. amid all that, the asian infrastructure investment bank which of course was a chinese lead initiative is open for business they launched last weekend in a sign of beijing's financial influence. the bank expects to lend 10 to $15 billion for the first five or six years. financing of $1 billion worth of projects. i'm delighted to

>> everybody has complained -- or the bulls have said our economy is better than the rest of the world and we'll avoid a contagion. to b.k.'s point, i don't think our economy is as good as everyone thinks. we've seen the empire and manufacturing and everything come out at three-year lows basically. technically, challenged at best. 1864, let's use that guide number, 1820 was the october 2014 lows. so that was an intra day low. today we closed above that intra day low in august. i think it is not over yet. this was an options expiration going into the weekend. >> when you say economy, i've been watching the transports, it feels like forever, the economy is to great, the economy is so great so why are the transports down 30% when oil is low and the economy is supposedly good. sometimes markets are telling you something. dan, what do you think? >> for all intents and purposes we've been in an industrial recession for the last part of last year. i want to bring it back to china because i believe there is misinformation as to what people apply to investing and what is going on in our economy

he also said he plans to discuss the future of the world economy and launch new initiatives for growth at this year's g7 summit in japan. on international relations, abe mentioned working to strengthen ties with south korea, china, and russia, and he called the alliance with the u.s. a linchpin of the country's diplomacy. he promised he would use the strong relationship with the u.s. to do his utmost to reduce okinawa's burden of hosting u.s. bases. at the same time, he said he would ensure that military deterrence is maintained. abe also touched on the 2011 disaster saying the next five years will see continued assistance to rebuild and restore affected areas. he hopes the communities can become self-sustainable once again. after abe's speech, members of six opposition parties stormed out of the chamber. it was to protest the following address by an embattled minister in charge of the tpp free trade deal. the parties criticized akira amari for failing to answer allegations that he didn't report all of his political donations. >> translator: i'm very sorry for causing confusion over a

swiss ski resort of davos for the world economic forum and the annual meeting over shadowed by the plunging price of oil and there are growing fears for the world economymf cut its growth forecast and we are in davos and has this report. >> so we woke up to two things on the annual meeting of the world economic forum and one is snow and news that oil had talent to below $28 in the united states and crude and chinese markets were now down 15% over the entire year so far and that only has been about a month leaving people with a lot to talk about at the world economic forum and the oecd is who we heard a comments from and the chairman william white with the chairman of the review committee who said quote the situation is worse than it was in 2007 and macro economic ammunition to fight downturns is essentially all used up and scary thought to think they were worse than before the crisis in 2007 and the fact we can see the crash coming now and are seemingly powerless to do anything against it and i put it to the oecd's secretary-general a little bit earlier. >> the only question is we continue to rely on the central bankers and they have run out of ammunit

on the tax thing, a huge benefit to the economy, not only for america and the world. if we do it, other countries will follow. we'll finally get the world economy and our economy moving forward. >> something i'm sure bruce agrees with 100%. right? >> i could almost not breathe after hearing some of the stuff we're talking about last night. the tax -- nobody likes to pay high taxes. i don't know if we can afford the tax cuts with the defense build-up marco rubio was talking about. romney said with tax cuts he would get unemployment down to 6%. we event had tax cuts for the rich and unemployment is down to 5%. it seems things are headed in a positive direction. >> the idea, of course, bruce, is that the economy would be stirred up by the tax cutting and revenues might increase. rich, let's be specific and look at plans. they are all talking about cutting rates, some more than others. the really big rate cutter on personal income tax is ted cruz. 10% flat rate. then ben carson. 14.9% for personal and corporate. donald trump, jeb bush. marco rubio is not so hot. 35% ain't