on the positive side china is our fastest growing export market. u.s. companies have more investments in china by far than they have here and u.s. companies tend to do very well in the china market that's growing. but what the bilateral investment treaty does with right now, every foreign company investing in chinese to get approval for coming in. the bilateral investment treaty by coming up with the negative list for those industries that are precluded and theoretically everything else is available and you can come in and compete on a level playing field. the aspects of a level playing field in china, these positions the state-owned enterprises have is not just hurting u.s. companies. it hurts china's private sector companies. these regulatory advantages and special preferences. andrea asked me about some of the early deals. i think if he had continued leading the country they would have continued to reform these enterprises, opened up the competition but the reform stopped and a lot of these companies have special advantages, preferences, subsidies, ra

either china's or philippines or vietnam or whoever. i think the u.s. in its very traditional role of guarantee of patrol of the open seas and protector of international law, i think it has to play the role that it has to say china is not allowed to unilaterally annex these things. that will be a source of friction >>> are the chinese laughing at the u.s. given the climate change arrangement is announced. there's no enforcement mechanism. no way to make sure that countries will meet their obligations? >> no. i don't think so. i think countries will do their best. as in the case of u.s. - they did very well. better be expected >>> there's nothing making sure that china keeps its objectly gayings >> >> that's the point. they will surprise the world on the ecology. i think it has interest in being more serious about that particular agenda: when we also need to look that it has been one of the remarkable success stories of the last 50 years. very peaceful after vietnam. i think it is a very interesting shift in this famous pacific peace and i think that to s

>> well, in u.s. chinarelations there are some things that are zero sum sum and some that are positive sum. above all climate change. the problem with the south china sea is it's zero sum. it's either yours or mine. it's either china's or philippines or vietnam or whomever. i think the united states in its very traditional role of guarantor and patroller ever the open seas. it has to say that china is not allowed to unilaterally annex these things. that's going to be a real source of friction. >> anandrea james mentioned climate change. there is no enforcement mechanism, there's really no way to try to make sure that all these countries will meet their obligation. >> i don't think so, i think occurrence will actually do their best to keep their obligation not just because there are enforcement mechanisms but in the case of the u.s. prior, kyoto did better than expected. >> but there's no that china keeps its obligations. >> china may surprise the world, china has an interest in actually becoming much more s

u.s. forces have been scaled down. china, meanwhile, is strengthening ties with thailand. the air forces of the two nations conducted their first ever joint drill last month. chinese planes took off from a base that u.s. forces had used during the vietnam war. the thai government is now considering turning to china to buy a submarine. regarded as the most strategic item in any military's arsenal. ambassador davies referred indirectly to a tug-of-war between the u.s. and china over thailand. >> i don't worry about thailand's relationship with beijing. i don't really spend any time saying to washington, here's how we get thailand back, because we haven't lost thailand. >> reporter: the latest development suggests thailand is starting to realize that it's easier to deal with china than the u.s. that is because china does not always criticize other countries for lacking the principles of mocracy. thailandas long practiced a dcyin with morower b iits leaders forge closer military ties to china, that could bring changes to the regional status quo. shoko matsumoto, nhk world, bang

a threshold for survival for nations.g island but the u.s., china and india have been arguing for a two-degree ceiling to allow them to continue burning fossil fuels a while longer. now includes language on how many degrees temperatures may rise above pre-industrial levels. the rise should be kept well below two degrees and efforts theld be pursued to limit temperature increase to one and a half degrees. yet key questions remain unresolved. like who will pay for the shift toclean energy needed achieve that limit. indiae delegates from remain hopeful. >> i am an eternal optimist, so believe that ultimately the will get justople climate from paris. is not alone. the c.o.p. 21 president told reporters a deal would be at 9:00 a.m. on saturday. fabius is sure the deal will be approved. >> voters right across the backry are preparing to go to the polls on sunday for the second round of two, of which elections.l the ruling socialist party was left licking their wounds after last weekend's round in which the national front led in six of the country's 13 regions. according to some of the latest polls,

if you look at that, in the united kingdom or the u.s., china or brazil, returns on investment and educationividuals is greater now than at any time in human history. francine: one of the biggest him shakeups in the the media world. "the financial times" and "the economist," two brands that pearson sold. after the break, we talk acquisitions, strategy, and leadership. john: if we can find acquisitions that create quick and immediate value to shareholders, and long-term sustainable opportunities as well, we will take them. francine: more from the ceo of pearson, john fallon, when we return. ♪ francine: welcome back to "leaders with lacqua." publishing group pearson will him him him him gain nearly a billion pounds from the sale of the "ft" and "the economist." but, what will it do with the money? john: if we can find acquisitions that create quick and immediate value to shareholders and long-term, sustainable opportunities as well, we will take them. but, we do not need to hurry, we do not need to rush, and we will do that in ways in the context of returning capital to shareholders. francine:

u.s. supports efforts by the president to improve ties with china. a spokesperson for taiwan's presidential office said in a statent on wednesday that president ma is very pleased and thankful for the u.s. decision to provide aweapon that taiwan sees as necessary for its defense. china is strongly opposed to the u.s. action. an assistant foreign minister of the u.s. embassy in beijing said the sales seriously violate international law. for decline naes -- china's sovereignty. china has decided to take what it deems necessary measures, including imposing sanctions against the companies involved in the arms sales. in january 2010, after washington decided to sell arms to taiwan, beijing suspended military exchanges with the united states for a year. it called the u.s. decision interference in its domestic affairs. a researcher at the center for strategic and international studies, bonnie grazer says that the u.s. considers its preferable to announce the sale before taiwan's presidential election next month to avoid appearing sympathetic to the oppositio

u.s. interest rate cut could mean for china. >> reporter: i'm in the city in north-east china, a committee economic center where business leaders like business leaders elsewhere in the country are now trying to assess the likely impact of this rise in u.s. interest rates. the last time it happened obama and president xi jinping had yet to become presidents of their countries, china had to yet host olympic games and china was not the second largest economy. the good news for china in this rise in rates will help with exports, because the their dollar will fawn against the dollar. the chinese government owns a sizeable chunk of the u.s. economy in the form of debt, some 1.2 trillion dollars of treasury bills sitting in a fund and that will go up. the bad news, a lot of big chinese conglomerates have borrowed in chinese dollars. there are also other items exposed. china economy has been continuing to slow. the government has been cutting interest rates, not raises them and that has called the yuan to fall in value. this is not the rise but the timing and size of future rises in u.s. interest

u.s. response to china's growing presence in the disputed south china sea? s actually very difficult to understand it. the u.s. actually recognizes the one china policy. and that would including taiwan but also insists ongoing on with the taiwans relations act that says it will give arms and -- to taiwan to defend itself. this is kind o kind of equivalet saying to the state of georgia since you were involved in the con federal war china will continue to arm you, although we recognize the u.s. is one country. so it's a bit baffling in terms of how it plays in to the south china sea and a number of other issues, yes, it's definitely part that hav of that. >> what is the likelihood of something occurring in the taiwan straight with all the tension rising? >> well, this is the thing that everyone is try to go avoid. this there have been military to military talks and engagement. but from the u.s. point of view it's difficult to see the u.s. has not articulated a comprehensive foreign policy which involves both asia, europe, and the middle east and this has been a

u.s. last to china 1 - the u.s. last to china 1 the u.s. last to china 1-0. >>> good morning, everyone. we are having real problems on the roads this morning. skyfox over a new accident on rutherford ave inbound. you can see it is a truck on its side. several fire fighters are on scene. live pictures to where that power line came down. we have been showing you those live pictures earlier. this is causing significant delays and will until they get that truck back on all pour feels and cleared out. i expect that back up to be severe. >>> this accident near andover and 133. your live drive times. 21 minutes on route 1 from 128 40 minutes on 93 south from 495 to the leverett connector. 35 minutes on 128 from route 1 in peabody to the weston tolls. fox25 storm tracker meteorologist shiri spear joining us now and you are saying we expect to see rain drops and bell ringing for the salvation army. >> going to be misting and delivering. doesn't have much substance to it until we hit, say, the late afternoon or the evening hours when we have the real heavy rain. dense fog at times tonight. it wil

u.s. interest rate rise could mean for china. >> reporter: i'm in the city in north-east china, a key economic center where business leaders like others elsewhere in the country are trying to assess the likely impact of this rise in u.s. interest rates. the last time it happened, obama and president xi jinping had yet to become presidents of their countries. china had yet to host an olympic games. this rise in rates for china will help exporters because chinese goods will now be cheaper because the value of the yuan will fall against the dollar. also it is worth pointing out the chinese government effectively owns a sizeable chunk of the u.s. economy in the form of debt, some 1.2 trillion dollars of treasury bills that are now sitting in its sovereign wealth fund and the value of that will go up. a lot of big chinese conglomerates have borrowed in u.s. dollars. also a lot of countries are exposed to u.s. dollars that they export to. china's economy is continuing to slow. the government has been cutting interest rates here not raising them appeared that has caused the yuan to fall in value. wha

china and india are to have more say after u.s. lawmakers approved changes. reing markets will have influence over oversight. china is currently the fundus sixth's largest shareholders. a with india clotting to eight from 11. the bank of japan has new plans. buy 2.5 lien dollars of etf's based on the spending program. such a thing has never appeared in japan. the doj will backed government equity measures. investor says the whole -- investors in whole thing is hard to it that hard to digest. checking in on markets in asia, let's get to it. australia swinging between gains and losses. fractionally higher. zealand we saw losses at the beginning of the session but now it has someone -- it's long into gains. at 67 u.s. cents. counting down to the open in japan and korea, we have the yen holding on to its safety gains. 121.r yen is at futures pointing to a lower open. prices will recover. in crude been trading near a seven-year low. will rebound because it is too low and that is hurting producers. david has been taking a look into this for us. wasn't that the entir

china sea. earlier this year, the u.s. failed a warship past in waters claimed by china. number of people unaccounted for after a landslide has now jumped to 91. cctv cited local emergency officials. 18 buildings were buried or collapsed by the wall of mud. two of them were workers dormitories. the mud came from construction work nearby and had been piled onto a hill. the cost of staging the tokyo olympics may have blown out to six times the original estimate. say soaringoted set to blame for counterterrorism measures. back to that last minute holiday shopping. earlier we had two barclays top holidays.s for the our next guests. ew, we do not even know how to pronounce it. it is a virtual reality headset. >> virtual-reality is our number two gadget. "theyou seen the movie matrix"? tv, if you with 3-d watch too long, you might get dizzy or headache. i was wearing this for 20 minutes, and i did not feel anything. i was in the ocean swimming with the whales. really amazing. >> htc delayed the release of this, right? what was the breakthrough? most difficult part is the softwa

u.s. and china. officials from the two countries have held the first round of talks on internet security. china's state council and minister met with u.s. secretary of home learn security jeh johnson and loretta lynch on tuesday. xinhua news agency says they agreed for guidelines on cybercrime and to set up a hotline. u.s. president barack obama and chinese president xi jinping pledged in september their governments would not knowingly engage in cyber espionage. u.s. officials say they will keep urging china to honor the agreement. >>> the billionaire founder of facebook has pledged to donate nearly everything he owns in the site to charity. mark zuckerberg says he'll give up 99% of his shares worth more than $45 billion. zuckerberg and wife priscilla chan made a promise in an open letter to their newborn daughter, max. they posted the message on zuckerberg's facebook page, saying they want to make the world a better place for all children and advance human potential. they say they've created a found

u.s. and china, if the u.s. economy cannot live up to its interest rate hikes and if the fed cannot raise the rates as smoothly as planned. then i think the market will be worry about and the economic health of the world. chinese economy is also now i think recovering seeing the housing price recovery, there is still -- remains risks of china's economy to enter that differentiation stage like we did in japan. >> now 2016 is in the chinese calendar the year of the monkey, which is marked by creatity, curiosity and conning. let's see if those three cs play into investors' actions. >> from our nhk market studio. concern is rising in the u.s. that anti-muslim sentiment is spreading. a civic group there says the number of incidents targeting mosques and muslims has hit a record high. increase comes after the paris attack and deadly shooting rampage in california. the council on american islamic relations said 71 acts were reported through december 16th, the highest number since the group began keeping track in 2009.

u.s. europe, and the new top emitter china. >> trevor: oh, wow. world, it remind me of, like, a lava lamp because in a few decades it will be gone. now, the u.s.-- ( laughter ) the u.s. europe, and china have all pledged to cut their carbon emissions, but here's the problem-- if we want to keep the earth from getting more than two degrees celsius hotter, the world can only emit a certain amount of carbon, and if we take the amount of carbon the u.s., the e.u. and china have pledged to emit by 2030, that only leaves that much carbon for the rest of the world. there's nothing left. it's like shopping at the scarf store after johnny death depp has been there. you work in l.a., johnny depp. why are you so cold all the time. for more we turn to senior climatology correspondent ronny chieng, everybody. ( cheers and applause ) so ronny this climate change thing is a mess. >> well, i don't know why everyone is so worried. i mean, climate change is actually make a lot of good things happen. >> one study suggests that the southwest and the great plains will

china will celebrate and the u.s. a voting member in the imf, so the administration is officially on board. but china and its currency tend to be a political punching bag on u.s. presidential campaign trails. so wash for some backlash. for "nightly business report" i'm sara eisen. >>> stocks closed lower on this last trading day of the month. retail stocks weighed on the major averages as brick and mortar stores faced some difficulties during the thanksgiving shopping weekend. we'll have more on that shortly. here's the roundup for you. the dow jones industrial average fell 78 points to close at 17,719. the nasdaq closed 18 points lower, and the s&p 500 slipped 9. the major averages posted their second straight month of gains for the first time since may. >>> to the economy now. a report on manufacturing and overall business activity in the chicago area. it fell in november. the chicago pmi barometer dropped into contraction territory for the sixth time this year. new orders fell to their lowest level since march. pre

china. i would expect them to be as in the u.s. the offer of season divestitures in china as well. >> wow.ant to thank my guests, greg engert, ankor kapur, antitrust law specialist and tom perko. managing director of bev mart. i'll be back with a final thought on beer and the lure of using it to be a regular guy. stay with us, it's "inside story" and send us your thoughts on twitter @ajinsidestoryam, or following me and get in touch @raysuareznews. tell us what you think about the megamerger and how it might disrupt one of america's favorite pastimes. we'd love to hear from you. >> we're here to fully get into the nuances of everything that's going on, not just in this country, but around the world. >> what, as if there were no cameras here, would be the best solution? >> this goes to the heart of the argument. >> to tell you the stories that others won't cover. how big do you see this getting? getting the news from the people who are affected. >> people need to demand reform... >> we're here to provide the analysis... the context... and the reporting that allows you to make sense of your

china. i would expect them to be as in the u.s. the offer of season divestitures in china as well. >> wow.ant to thank my guests, greg engert, ankor kapur, antitrust law specialist and tom perko. managing director of bev mart. i'll be back with a final thought on beer and the lure of using it to be a regular guy. stay with us, it's "inside story" and send us your thoughts on twitter @ajinsidestoryam, or following me and get in touch @raysuareznews. tell us what you think about the megamerger and how it might disrupt one of america's favorite pastimes. we'd love to hear from you. ♪ ♪ >> if you don't possess that ill loousive anillusive and hard toe word authentickivity, it can be produced for the price of a beer. hard cider, while very authentically american may be too hard to explain. so our public people when they come down from mount olympus to hang with the rest of us where it's john kerry or scott walker, whose home state has the had a long intimate relationship with one. the president called a beer summit and the news business paid close attention to the brand of suds served, showing

china. i would expect them to be as in the u.s. the offer of season divestitures in china as well. >> wow.ant to thank my guests, greg engert, ankor kapur, antitrust law specialist and tom perko. managing director of bev mart. i'll be back with a final thought on beer and the lure of using it to be a regular guy. stay with us, it's "inside story" and send us your thoughts on twitter @ajinsidestoryam, or following me and get in touch @raysuareznews. tell us what you think about the megamerger and how it might disrupt one of america's favorite pastimes. we'd love to hear from you. >> comedy great richard lewis. >> i really am in love with the craft. >> turning an angst ridden and neurotic outlook... >> i have to unravel myself on stage as fearlessly as possible. >> into an award winning career...from hell. >> it's thrilling when it's working. >> i lived that character. >> go one-on-one with america's movers and shakers. >> we will be able to see change. when you're on hold, your business is on hold. that's why comcast business doesn't leave you there. when you call, a small business expert w

trillion plan to make solar energy more affordable in developing nations. 20 kruns including the u.s., china and india vowed to double their spending toward renewable spending. >> also norway, germany and the u.s. say they'll also commit about $5 billion over the next five years. that's half a decade to try to help reduce deforestation. to while they unveiled a plan to cut green house gas emissions and more than 30 countries lead by sweden, new zealand, they called for an end to fossil fuel subsidies so they're trying to take this seriously, aren't they? >> world leaders vowed to take action on climate change in paris with u.s. president obama and xi jinping taking the lead on the first day of talks. let's head back out to steve in paris. >> it's bottom up because i say that because he quite correctly said we haven't seen a big announcement yet and i'm not sure you're going to see one big announcement because you'll continue to see it and you'll get a lot of smaller announcements. that's coming in here because the plans for each country rely on a lot of micro investments and of course they d

we have seen clashes between the china and the u.s. and china is trying to up their game. p 10 chipmakers are mostly u.s. companies. emily: how much do they make? >> they say it is great for china and it is strategic for fairchild. they have been surpassed by rivals, like texas instruments. we are hearing they are going back to the drawing board to theat china resources and groups. back to you, emily. emily: we will continue to follow that in hong kong. thank you for the update. ♪ well, google ventures has a new name and a strategy. the capital firm has reduced involvements and is shifting to mature companies. in theed fewer deals $100,000-$300,000 range. we are thinking about the international strategy and abandoning the overseas investing. hat will they do with the money in the new era? joining me is the ceo, in person. what is behind the evolution of the strategy? guest: out for that has -- alphabet has changed things and we thought it became important remind peopleo of the past and move forward. emily: what does larry want you to do? guest: about the name? separateu are

>> china's the biggest grower in wind but not much bigger than the u.s. i expect it to remain.for vestas we have improved greatly. we're on the lower level. for vestas' point of view it's an up side. >> reporter: pleasure to see you. glad you got in the building. as you say, it's nice to know that the security is hot. >> steve, you are so good. smooth as silk, isn't he? there you go. very easy. steve sedgwick there at cop 21. >>> still to come on the program, more than 30 years ago that the buggles sang about video killing the radio star. new reports are that the internet is now eating tv's lunch in the battle for ad dollars. >>> some of the world's top thinkers and doers are in south florida this week for a conference to discuss how seismic changes caused by technology and globalization are affecting the u.s. and the global economy. cnbc's robert frank joins us from the closing the gap conference in palm beach, florida. good morning to you, robert. >> reporter: good morning, carolyn. this is an unusual conference. billionaire jeff green organizing some of the best minds in the

chinese investment money is still flowing out of china into the u.s.s only so much a they can do on capital control if they want to be part of the global currency markets. thank you, so much for stopping by. ethan penner the founding mosaic interstate investments. next, donald trump is at it again, calling for a complete ban on muslims injuring the u.s. gone one step too far? as we mentioned exports are falling for a fifth month. will policymakers keep their foot on the gas? plunging metal prices gelo to downsize. more coming up on bloomberg "markets." ♪ betty: welcome back to bloomberg "markets." it is time for the bloomberg .usiness flash canadian pacific made a revised takeover of norfolk southern. the u.s. railroad has turned it down. is more the new bid attractive and reduces uncertainty. norfolk southern has offered the rest of the bed the railroad had already did. china resources has made an unsolicited offer for fairchild semiconductor. that they would pay for fairchild. fairchild's board of directors will review it. job cuts from morgan stanle

the leaders of the two biggest greenhouse emitters, china and the u.s. met. this takes place under the shadow of the failures to keep past climate deals. joining us from paris is correspondent jim bittermann. >> reporter: good morning, christine. president obama meeting with president erdogan of turkey. that takes on urgency because the turks shot down that russian jet just a couple of days ago. that is increased tensions with the u.s. which has urged turkey to ease things with russia. the president met with putin yesterday. in any case, obama has a meeting with the small island nations who take this conference very, very importantly because they, in fact, could be an issue if waters continue to rise. the goal of 2 degrees is not ambitious enough because at 2 degrees, they feel the nations will be flooded. after that, the president holds a news conference at the organization of development and flies back to washington. the leaders here have set the stage for the rest of the conference which happening over the next two weeks. all of the leaders will be debatin

and france to make solar energy more affordable in developing nations. 20 countries including the u.s., china and india vowed to double their $10 billion spending toward renewable energy. >> they'll commit $5 billion over the next five years to help reduce deforestations while they unveiled a plan to cut greib house gas emissions and more than 30 countries lead by sweden and new zealand called for an end to fossil fuel subsidies. so some of the headlines in the crucial meeting at cop-21. nothing truly ground breaking yet you might say though. let's get out to steve for what he has learned so far in paris, steve. >> let me just tell you stuff going on as we speak. i have just come out of one meeting where prince charles is speaking. he is talking about deforestation in brazil so interesting people from royalty to key u.s. politicians to business men convening here on paris to add in on the climate debate as well. a lot of money has been coming forward for various initiatives but concerns about how we make that transition as well and there's a lot of states here that have an interest in keeping

u.s. and china. the situation has intensified in china where heavy smog is a constant reminder of air pollution. the president also talks about the role russia should play. >> ultimately, russia will recognize the threat isil poses to its people. hopes russia will decide that bashar must leave office to end the long civil war. tina krause, cbs news. >> as the claimant change talks continue, china is dealing with hazardous smog. those in the northern part of the country have been told to stay inside. the air is heavy with smog. more than 2,000 factories in china have been ordered to suspend production. students are being kept inside at school. >>> coming up this noon, a show of support. hillary clinton gets a big boost but one big name is missing. we'll explain why. >> burned by the board. a woman's home goes up in flames. why she says a high-tech toy is to blame. >> still ahead, no money, no problems. the deal to keep one of the most popular attractions opened 2016. a strong show of support for hilla

u.s. and china. . the president also addressed the fight against the islamic state. >> ultimately, russia is going to recognize the threat that isil poses to its country, to its people. reporter: the president hopes that russia will decide syrian's leader needs to be removed from office to end syria's civil war. >> president obama is scheduled to arrive back at the white house this evening. >>> lock downs in alexandra have been lifted. students and teachers were on lockdown after a robbery at a pnc bank this morning. >>a man is in the hospital after being shot this morning in front of an apartment building. police say the victim was taken to the hospital with non life threatening injuries. savannah street was closed during the investigation. no words yet on a suspect or motive. >>> one person is hospitalized at the med star dez dez with injuries -- [technical difficulties] with injuries. this was the scene this morning. more than 65 firefighters battled if flames. investigators say working smoke alarms

u.s. or china or brazil returns on education for individuals is greater now than history.me in human francine: one of the biggest shake-ups in the media world the times and economists two brands pearson sold this year. talk the break we acquisitions strategy and leadership. ohn: if we can find cquisitions that create opportunities we will take them. c.e.o. : more from the of pearson john fallon when we return. back.ne: welcome publishing group pearson will billion pounds from the economist and f.t. but the money?t do with john: if we can find create value hat to shareholders and long-term sustainable opportunities as we will take them. but we don't need to hurry. and we need to rush will do that in context of other ways of achieving value and returning capital to shareholders. francine: do you worry about currency movement? we judge things at constant exchange rates. a u.k. listed company so clearly probably the most rate ant exchange shareholders look at is the poun pound-dollar exchange rate. i think over the cycle we and lookshareholders will just through that and clearly you someplace lak

china sea. observers say u.s. rts to strengthen ties with asean are an attempt by washington to keep china in check over its territorial claims and secure u.s. influence in the asia-pacific region. >>> china's leaders have scrapped the country's decades-old one-child policy this year to establish more economic growth. under the old law, people who had a second baby had to pay a fine. but the new law comes at a cost. as nhk explains. >> reporter: this company in beijing produces educational materials for toddlers. through its online store, the firm sells kits for learning things such as english as well as traditional chinese poetry. it also has imported baby products and developed special apps for mothers. company officials are hoping that the new family planning policy will boost their business. >> translator: a survey of about 10,000 customers shows more than 30% of mothers want to have a second child. there's limitless potential in the education market. we'll be setting our sights even higher due to the new polic

u.s. have been claiming that they have been dumped upon in terms of cheap imports coming in from china andn.iliadaly, korea, and the u.s. is potentially a huge tax hike on certain chinese producers. this is really helping some of the steel producers in europe. adidas is doing well and on the upper because of nike. nike's numbers arm pressing overnight with 20% increase in profit and 4% increase in sales. they are posting a 24% increase in sales in china. on the down, check out this move. it is a small stock trading in the united kingdom. many used to buy their gaming equipment with it. game digital is down by 37%. they are warning of a profit concerned just as we start to expect sales to go through the roof because it is christmas time. the company has had disappointing sales. they forecast the first half of profit down 30%, versus last year. back to you. anna: thank you, caroline. a look at some of the movers this morning. tradingres rose in after it delivered good news to the u.s. retail sector. 24%, toin china was up almost $1 billion. nejra cehic has the story. o raises managed t sales

sheet where its own national gdp, it would be the fourth biggest on the planet behind only the u.s., chinaand swrapan. it would be larger than every country in europe. when it's wriz to get lost between billions and trillions, just remember how much money we're talking about, kayla, and how unprecedented a situation we were in. back to you. >> yes. the journal called it a policy experiment. thank you. >> hash tags on twitter, the fed awakeerns putting together woets from star wars making them period of time independent to a monetary policy audience. somebody points out wre8en doesn't have an opportunity or is not scheduled to speak post-decision. there will be no sort of clarifying this aside from the presser. that's going to be about. >> perhaps because it's priced into the market she won't need to. we'll see what happens. >> buckle up. that's it for us. let's get to whopner and "the half." >> welcome to a special halftime report. i'm scott whopner. we counts down to what could be the first interest rate hike in nearly a decade. you'll hear from some of the brightest minds in the markets.

. >>> the united states top diplomat in china has been summoned to explan an arms deal with taiwan. past u.sweapons sales to taiwan have attracted strong condemnation from china, which considered taiwan a renegade province. >> reporter: it has been a while since a u.s. diplomat was summoned to china for a stern rebuke. but the foreign minister told the diplomat that china regarded what the united states had done as something that threatened china's sovereignty and security interest, and warned of retaliation. by that he possibly means sanctions against the u.s. defense contractors involved in the construction of these warships. china regards taiwan as a break away province that will one day return to the motherland. this comes at a time of heightened tension in the south china sea. and then of course, next month we have presidential elections in taiwan, and at the moment, opinion polls show that the pro-independence candidate is in the lead. all of this comes at a time of warming relations between tie china there the leaders met in singapore, but this latest rowe over the sale of arms to the

u.s. citizens visiting china warned about a possible threat in a popular tourist area. good morning. welcome to "early start." i'm boris sanchez. >> i'm alison kosik. a line of deadly christmas week storms from the gulf coast to the midwest. spawning rain, winds and hail and tornadoes. look at the twister tearing across the landscape in northern mississippi. >> look at that. >> oh, man. i hope it's not hitting houses. >> unfortunately, it did. major damage to homes and vehicles and power lines along the tornado's path. >> we actually did see it happen. he actually looked out the window and saw the grass circling and tons -- it wasn't really trash, but tons of our neighbor's house blowing into the yard to the interstate. >> emergency mississippi officials say four people were killed in the state and 40 injured. in one case, a 7-year-old boy in a car with his family died when a tornado came through. >> and north of there across the state line in southern tennessee, authorities reported two people dead and two missing when a tornado tore through perry county. >> we were in the house. we

u.s. and china. the problem that china has is the closer it is tied to the u.s. ter the unintended appreciation against the rest of the world. it is damaging to chinese exports. china has managed to get into the spr. john has more possibility to its currency. -- china has more pop -- china has more flexible to to its currency. that helps china because the more flexible the currency is, of bigger the chance avoiding the kind of excessive depreciation that might be tied to a u.s. -- tied to a higher u.s. -- mark: we shoot 74% to 75% of the manus: 64% think you're going to get lower guidance from the federal reserve. give me your expectation. where d.c. rates going? -- where did you see rates going? steven: a big increase in interest rates. no one believes the federal reserve would commit to that because of the global disinflation pressures. next year, we are good see very little in the way of rate increases because the rest of the world will continue to limit the pace of recovery. maybe to rate increases next year. two rate increases next year. if the fed has a time

china has set to overtake the u.s. is the biggest market for luxury cars, and he could happen this year. a report says that chinese manufacturers expect to sell 250,000 electric cars in 2016, eclipsing those expected to be bought in the u.s.. arernment subsidies expected to help reduce air pollution. it may not be such a happy holiday for staff at barclays. sources told bloomberg that an additional 20% of investment bank employees may lose their job. shery ahn joins us with the details. why are they planning these cuts and where are they planning them? shery: basically they are lagging behind, especially investment banking. they are hoping to cut those costs. most are expected in asia, and a global cash equity business, which will be announced early next year. sources are telling us that the asia-pacific operations are just lagging behind. these include markets like japan, hong kong, and singapore. they are not profitable, not competitive enough. take for example the asia-pacific operation last year, which generated re

u.s. and china. the situation has intensified in china, where heavy smog is a constant reminder of severe air pollution. the president also addressed the world's fight against the islamic state and if russia will -- and the role russia will play. president obama: ultimately, russia is going to recognize the threat that isil poses to its country, to its people. tina: the president hopes russia will eventually decide that and syrian leader bashar assad must leave office in order to end syria's long civil war. tina kraus, cbs news, london. mollie: today is world aids day, and the latest statistics show the world is going in one direction while russia is heading in another. russia's federal aids center says the total of hiv cases is heading toward 1 million, many of whom are injecting drug users. however, the russian government distribution of clean needles and condoms, saying they enable addictive lifestyles. it's official. cyber monday was a record breaker. shoppers spent $3 billion dollars during the

back home when you're talking to congress about this climate deal you want to say that china and u.s. are being held to the same standards. because developing and developed are not defined in the text, some could argue that china is a developing country and the u.s. is a developed country, and this little word shall gives the u.s. more responsibility. the developing countries get the word should and the richer countries get the word shall. and that makes sense many will say that they've created more of the emissions. but this is purposely vague so countries can move between categories as the world changes but also contemplates countries like china, who are huge economies and huge polluters who might be responsible for some of the finance. >> we were on the brink of things moving on. this is literally a lawyer running in and saying hold on, this is not right. >> it's hard to tell. they say it's because of legal reviews. but when the u.s. brings up issues like this that are old issues that we've seen for the last two weeks i really doubt if it's some pop star lawyer figured it out. this

u.s. and china is an important part of the process, but for now, we will be in line with what the consensuss expecting. definitely, it is pointing to a rate hike. that will be up bit of a breather for the market. it is really what happens afterwards. we don't think that the fed is going to be aggressive about that. yvonne: is it good to buy with the dollar now than before the fed moves? dollar can a strong help out with emerging markets and you've got to be very sensitive and look at it from this perspective. ringket,the rig it -- what do you think? the asianfor now,currency exporters will continue to be out of favor. so if we look at singapore, hong kong, or other countries nearby, they will continue to be out of favor. we will continue to look at china over the long-term, and we like health care across the board. india stands out as an investment destination, especially considering commodity prices. so you have discussed to be very selective. yvonne: when you talk about china, you said you are still into the traditional stocks. economy, butpeed you still see some opportunity in traditiona