Sterling on the slide. Midreports Boris Johnson wants to outlaw an extension of the eu transition period raising the prospect of a harder brexit. Uk banks sell off despite getting getting a clean bill of health how much capital lenders must hold in their coughers a very warm welcome to street signs. Lets get to the top story the stock that has been in focus the last several months. That is boeing the companys biggest shut down more than two decades. It comes after the u. S. Federal Aviation Administration refused to clear the flight before 2020. Some 12,000 employees will keep their jobs as the plane maker focuses on delivering the aircraft the key competitor to boeing shares up 0. 15 on the back of this news. Looking at suppliers of boeing weve got senior shares down, safran lower the big reaction in regards to that news from boeing. Lets look at european sector players looking at these down. Rolls royce taking the biggest hit. Down 1. 7 . Another development in focus is the uk stress tests. All seven have passed the bank of england stress test for the third year in a row. Ruling that they could withstand deeper sessions including an economic shock worse than a disorderly brexit. Saying they will double the size of the counter buffer to 2 of risk weighted assets this Rainy Day Fund will allow lenders to absorb during a down turn without cutting lending lack at the reaction you can see taking a bit of a step lower all three of those down more than 3 . Potentially caps the share buy backs in the future. One more thing to bear in mind, the uk domestic assets in particular the banks performed very, very well last week a bit of profit taking on that as well. Widen it out. Look at the european markets yesterday, a strong day for equities worldwide the global power by the phase one news a bit of profit ticking coming through. Stock 600 down now as you can see, it has been an incredible strong run for the stoxx 600. Holding onto the majority of the gains. Lets take a look at the european markets with a split yesterday. The rally driven in large part by the ftse 100. Now this morning, the ftse 100 essentially flat outperforming some couldnmarket. The mib up 0. 15 looking at sectors. We saw the banks and euro space. This morning, we have utilities and oil and gas in the green oil and gas up at the bottom, the biggest hit inhouse hold goods. That is down about 1. 8 . Unilever sharply in focus. Travel and leisure down. Looking at asian markets yesterday, we saw a global rally come through on the back of that u. S. china trade agreement it seems asia would follow wall street we have the shanghai up as well. A strong session for Chinese Markets. Several indices in acsia hittin an 18month high not so much the case for european markets this morning. As kudlow has hit back at suggestions the phase one deal is still not a certainty amid a lack of public consensus from two sides on the details. Eunice yoon filed this report. Reporter on the circuit to sell the benefits of the phase one trade deal overnight, larry kudlow said any concerns about the uncertainty are misplaced. This is what he said let me make no mistaking about it the deal is done the deal is completed. I was out and about last friday. Some people were suggesting this is not true. The deal is absolutely completed. The lack of a completed text raise speculation. The chinese have not mentioned how much they would want to buy. Increasing purchase of goods by 200 billion over the next two years. We are going to double u. S. Exports. The positive effects on Economic Growth in this country cannot be exaggerated. Thats why i keep calling this growth in addition to lowering the tempers and putting more certainty into it, youll get a very Good Business year. Trade experts say the government wouldnt want to acknowledge any hard figures to avoid the backlash but negotiators could agree to a very big figure. The u. S. And kleinas phase one trade deal is expected to bolster economic brother, our next guest warns there can only be truces and not peace. You have just published your 2020 outlook how closely are you monitoring this when formulating your outlo outlook for 2020 like everybody, very closely. Clearly these phase one deal is a step in the right direction as we have seen since 2018. It is are a truce. It is not peace forever. It is not just a question of trade. It is a question of tech transfer of ip technology. Movement of talent of people across the countries this will remain in place for a long time. Raising power. It is an incumbent power as we have seen in the past, this never tends to be completely peaceful. Never this goes into hot war as opposed to a new cold war. It is complicated. They are starting to see the trading for 2020 and what the world will look like all things being equal the fact that there is a phase one trade deal is a positive the further deterioration, how does that factor into your growth assessment for 2020 where do you think growth will end uplanding . It is an important factor, we still believe china will continue the gradual structure slow down towards the Growth Potential which is around 5 we see China Growing at 5 quite an important break the World Economy might pick up slightly from 3. 0 in 2019 to 0. 1 in 2020 and 2021 being 3. 3 because large economies that severely underperform and contract in 2019, turkey, brazil, russia, iran, will recover. This doesnt mean that the World Economy is going to go towards serious reflating at some others suggest. Kind of more of the same then you mentioned your china forecast 5. 8 . In the past, weve seen china lack april tide to let the economy slow down. When it showed signs of doing so, it was with stimulus is your expectation that they will refrain from the stimulus or that it wont be as effective as it has been in the past china has always intervened to backstop the economy. Also because they need to legitimize itself. True xi jinping made himself emperor for life that cannot be changed we are seeing the riots in hong kong when growth slows down, the government needs to intervene with fiscal monitoring and regulating maybe they have not been as effective as they have been in the past maybe they are not as large as they have been in the past we saw imbalances coming in. They also have limits to what they can do. We saw recently they let some Big Companies go that they allow some mechanisms to come in because they cannot backstop everything in the economy. You mentioned with regards to china and the u. S. , we could see more restrictions on the flow of people when p it comes to the th war. What is your view on how this unfolds. So far, tariffs have been the main goal. Will we see more restrictions on tech experts and skilled workers . There are known tariffs that can be introduced in the relation between the two superpowers. The transfer of knowledge is clearly one of them. So far, that has been very open as far as allowing those who want to come in and learn and perhaps come back with a much higher capital to be deployed back in 24ir home country in china. As we go towards a sort of vol canization and Global Supply chain, every single power will have a sphere of influence this will be reduced in a time people are even taking splinter net. An internet for china and the rest of the world. The american side of the world for those countries more closely aligned to the u. S this is a real threat. You can imagine what the world looks like if a half a Million People will use one internet and the other side of the world use a different one. Something to worry for 2030 well pick up the conversation in a short while head of research at rosa and roubini. Unilever says the company will miss the sales growth this year they expect growth to be below the forecast of sales in the lower half of 3 to 5 range. The company says earnings margin and cash will not be impacted. Swiss lender ubs plans to overall the arm dedicated to the ultrawealthy the shakeup would aim to migrate price clients between departments. Signaling the first major mark with this move after his departure from Credit Suisse moving on to pharma, roche says the 4. 3 billion take over announcing over 60 of sparks outstanding Common Shares have been tendered. Roche announced this in february with the treatment of Rare Diseases we are close to the end of the year but not quite if you want to get involved in the conversation, follow us or tweet us well take a quick break. Coming up, brexit fears return Boris Johnson will move to guarantee a 2020 exit with or without a trade deal sterlings reaction, ahead clients voice remember that degree you got in taxation . danny of course you dont because you didnt your job isnt doing hard work. Its making them do hard work. And getting paid for it. vo snap and sort your expenses to save over 4,600 at tax time. Quickbooks. Backing you. Welcome back to the show the pound, sterling is on the slide amid reports the Prime MinisterBoris Johnson wants to outlaw an extension of the transition period beyond 2020. That would give them 11 months to get a free trade deal raising the prospects of a harder brexit putting an agreement bill before the commons this friday. Larry kudlow will visit the uk in early january for wideranging talks including trade. Kudlow stressed he looks forward to working on a deal and hopes to get a deal started as soon as possible germany will hike the price of carbon emissions. The move comes as berlin looks to pass the sweeping climate reform package germany is looking to cut emission levels by 50 the initial pricing scheme was widely criticized for being too low. The new agreement will see the price beginning to climb from 55 to 65 euros a ton. Despite a collective failure to get to any agreement with respect to the carbon targets. For more on the outlook for the green fiscal policy and the green deal, wel can agree on is spending on when green. Certainly more open to the idea of spending only as it pertains to sustainable investment. Is that your understanding as well of the situation . Absolutely. We know germany in the fiscal stimulus, the large section doesnt like these parts anymore. However breaking that rule is complicated. Everybody wants to kill it but nobody wants to be found with a smoking gun. One way of going around this is investing in green projects. Environmentally sustainable projects something that can be easily sold to the general public we can even say green is the new black. Right the new black zero. Exactly exactly. We know the green party is on the rise in germany. That might even be the first party in the general elections in 2021. If the coalition collapses somehow the countries already moving in that direction in which the greens might enter the coalition at some point. People seem to be placing a lot of hope on fiscal spending particularly out of germany and towards a slightly more expanding stance how much more will that have on the eurozone how much will that affect the likes of italy, spain and france very little especially if the environmental projects and construction building in germany using german work force and companies so starting to using work force from other countries it becomes complicated. The fiscal multiplier remains limited. You will need a very large fiscal package in order to be felt through the eurozone. There is always hope germany will act as the fiscal stance 2456789 will not happen unless there is real political change even if the greens were to come on board, they have kind of an interesting combination of being socially progressive but fiscally responsible even conservative, which is what distinguish them the reason why they would not change that position put them at the very center, they dont want to change that they know this is what can bring them into the chanselory in a year we heard from madam lagarde last week that they are going to be looking at Climate Change as a factor to consider it seems like it is pretty controversial. There has been some backlash getting involved with the Climate Change in your view, how evented should a central bank be . Is this something they should be focusing their efforts on . There was a path broken here in london who Start Talking about the modern Central Banks into Climate Change issues the imf stepped in that direction. Again, my impression is that it is one of the ways for lagarde to say, if we need to buy something new. That could be green bonds. Perhaps you should buy the Investment Bank to finance the green projects this could be the way of keeping the qe program the reason why the segment or the governing counsel is shooting towards the target. Christine lagarde wants to achieve some consensus you raise an interesting point Monetary Policy meeting fiscal policy most people say, look, we are getting to the limits of what Interest Rates can actually achieve here that is the big thing on the years to come. We know there is some form of fiscal monitoring going forward. Various forms of helicopter money. Monetary financing discussing in policy circles not just on the fringes but mainstream on the likes of central bank governing from the fed, theyve talked about that we believe this is very important. We talk in our outlook what we call helicopter put. Somehow investors know when the next down turn comes, there is going to be a new instrument used to backstop the market. This is keeping markets so excited at the moment. This money as in literally central bank is handing out checks to people they will find a way. Fiscal deficit directly mond monatized. Much more in europe, which is why they have to go through the Investment Bank project. Doable adventure thank you, the ceo and head of research. Coming up, well talk all things chinese tech. Stay with us do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to street signs. Im Julianna Tatelbaum and im joumanna bercetche. These are your headlines sterling is on the slide after reports that Boris Johnson wants to outlaw an extension of the eu transition period. Brexit weighs on Home Builders as they prepare for the worse fall since early october broader european markets fall despite fresh record highs on wall street. The trade deal rally takes a breather unilever drops after warning on sales growth. Boeing suppliers fall as the plane maker halts production of the 737 max jet after u. S. Regulators dash hopes of the plane returning to the skies before 2020. Weve got another data point to share with you on the unemployment front the jobless rate fell about 13,000 to 1. 28 million in three months to october that puts the rate at 3. 8 polls were expecting 3. 9 . That is the level to keep an eye for uk employment. Uk earnings is a number people watch closely. The bonuses came at 3. 5 year on year higher than 3. 4 that is still the weakest. October alone was up 3. 2 . Still a strong picture i would say 3. 5 on wage growth is very, very strong other countries will be looking at that and thinking that it continues to be one strong feature. Sterling has been down about 1 . The bulk of those losses coming in reaction to suggesting that Boris Johnson could outlaw the suggestion of the transition period raising the prospect of the hard brexit. Investors reacting to that news. Exactly lets talk about what is going on with sterling 1. 3190 is where we are right now. You remember when we came out of the exit poll we bounced up to these levels touched 1. 35 briefly we are seeing a big decline in the pound, down about 1 a plan to proposal from the Prime Minister to rule out another extension beyond 2020. Certainly, that is sending a few jitters to the market. It raises the prospect of a hard brexit if we get to that cliff edge in 2020 investors who may get involved probably taking some chips off the table. That is what we are seeing in the pound this morning, some weakness we are seeing the weakness in the yen and swiss frank. The safe haven coming off. We are seeing a Strong Performance in the equities. I nikkei at a twoyear high. The euro, i would say one interesting aspect of the euro has been trading very closely in sink with the pound. The possibility of a soft brexit for the uk is a good thing for the euro as well even though the pound has strengthened, there is a brexit premium traded today 1. 1140 yesterday, we had the pmi numbers that are some what di disappointing for the month of december lets talk european markets. Yesterday, the stoxx 600 had a strong session it was strong for the ftse 100 yesterday. Up north of 2 can you see we are just about inking out gains about that 7500 mark up almost a fraction weve been watching the banks closely today. Some of the big banks like rbs and lloyds trading on the back around 3 to 4 after they revealed the latest stress test. There is concern that perhaps the capital buffer in an extreme scenario is not quite what they are looking for. One of the reasons lloyds is trading on the back foot we are looking at some travel names very closely there is linkages after boeing announced that they will be freezing the production on the 737 jets the suppliers in germany and france are getting hit on the back of that story these are some of the negative names. The ftse up as well. The italian index doing well there the focus has been on the stablization when it comes to the political outlook and the recent recap they did there. That is worth baring in mind as well how about u. S. Futures. Yesterday, we saw fresh record highs for the three majors the dow is up about 21 , s p up higher what goes on with the developments on the phase one trade deal larry kudlow saying a phase one trade deal is pretty much done and dusted lets talk tech now huaweis participation in the rollout of 5 g could be challenged suggesting p