Exclusive deal to debut a film of the pop stars world tour. Good morning, everyone. Were roughly 1 15 into the trading session and this is what youre seeing. Youre actually seeing green. I guess very few people had expected this after the poor showing that we got after the asian trading after the big dropoff from u. Is the dropoff on friday. The dow was off 3. 3 . The dow off 4. 1 for the week. The ftse 100 off of. 5 . The xetra dax up the same. The cac 40 up even higher at 0. 9 . This week we saw it in asia and the junk bonds and the oil route. In asia the shanghai comp is up 2 . The Macro Economic data was up better than we expected. The fixed Asset Investment is at least in line. The anything kay is also off by 1. 8 . Meantime, the yuan has hit a fresh year low. The trifecta in china. U. S. Futures, pretty tough week for wall street. Markets slumping. All big three indices falling more than 3 . We saw the biggest single daily decline for the Dow Jones Industrials and the s p 500 since september. Checking in on the implied open. Looks like we are recovering a it about. The s p 500 up 9 points above fair value. The same thing for the Dow Jones Industrials. The nasdaq should be seeing gains of 28. Now lets show you whats happening with oil and oil continuing its decline as you see west texas, were trading below 36 a barrel. Lower than. 9 of 1 . Yes, we are visiting those Global Financial lows. Brent crude dipping bean low 35 a barrel. This is a big week. Is this the week where we get the first rate hike from the Federal Reserve in ten years . Theyre calling this a tectonic shift. The dollar index and equities when it comes to yields as well, yeah, checking in on u. S. Treasuries. Theres a bit of rotation back into safety. The twoyear note where you feel the front load when it comes to expectations on what theyre going to do with Interest Rates in the u. S. , looking at 91 basis points. Ten year note, that was of note at the end of last week. Looking at 217 basis points. Getting into safety. More expectations that maybe, maybe this is the week, carolyn, that the feds going to go finally. It might be the first time in roughly ten years. Lets get back to the friday trading session. Third avenue, that really shocked investors. Third avenue has forced out longtime chief executive david bars si. It follows fridays announcement to bar investor withdrawals from its high yield bond funds sparking widespread market turmoil. A Security Guard said that barsa had been let go and is not allowed back in the building. What we saw in the week to december 9th, susan, investors pulling 3. 4 billion from high year funds. Thats the biggest outflow since august of it you thousand four. This is the Largest Mutual Fund feeler since the financial crisis. Thats why people were so nervous. Thats why we saw the markets so jittery. In itself its a fairly small fund. The signal barring investors from withdrawing the funds. It reminds us of the days just before the credit krun. , doesnt it . 2008, years that people want to forget. Getting back to third avenue, yes, youre right, it wasnt widely held as a mutual fund but is this something thats surprising to us . Weve been pointing out the spread between high yield, junk bonds and risk free rates. Was this coming at some point . Was it really coming . That a fund would keep investors from pulling out their money . We saw a rise in rates and drop in liquidity but investors keeping people from drawing out their money. What im trying to say because of the differentials, you know there were some jitters in the markets. People were concerned that people who issued a lot of this corporate junk would be able to pay it back and they were paying growing and higher Interest Rates to get people to buy in. This is telustrated that you saw it. Joining us is david owen, chief european economy at jeffries. David, should the fed be hiking rates in this environment where the liquidity is higher . They flagged the fact that theyre going o raise rates. Weve gone through this situation where the market was taking over the rates on the table. Now its been very well flagged. So i think they should follow through. Now u. S. Colleagues have been calling for a december rate hike now for two years. And they still expect the fed to raise rates further in 2016, 17. Are you not concerned about the volatility that we expected . Its absolutely expected. The imf has been talking about it. They were concerned about redemptions, not just in certain fixed income funds but also in commercial real estate funds, openended funds where they were concerned that obviously, you know, investors wouldnt all be able to head to the exit all at the same time. This is the environment we live in. Exit, liquidity is being withdrawn from the market. Its all the reason why they dont raise rates. Its just a fact of life. David, does it surprise you that for the ten year yield were still at 217 basis points . If thats the case . Yes, it does. What does that say to you . It says nobodys expecting the fed to raise rates that aggressively. Janet yellen and the guidance came out with basically were not going to raise rates that quickly and its been very clearly linked to the data and also achieving the mandate rate over reasonable prices. Would you say also theres a bit of safety seeking as well . Absolutely. Absolutely. Absolutely. But as i say, this shouldnt what happened on friday may be a surprise. In terms of the overall big picture, funds facing withdrawals and so forth, you know, that was long expected. The imf was warning about it almost two years agoment and particularly on the fixed income side, the em side, concerned about em currencies. The fed has to set policy for the u. S. The ecb is doing more. The way we describe it is that youve got the fed which is dovish tightening and the ecb with a hawk i shall easing. Its not that great . Its not as great as many people had forecast for 2016 . I think once we get beyond wednesday and the market looks at whats going on, i think actually this policy will become much more to the fore. I think well see the dollar going up on the foreign exchanges. Well see the market repricing in terms of rate rises in the u. S. And the u. K. Coming back into the sort of the target zone as well and then also the ecb is going to carry on easing. There is divergence here. David, youre going to stick along. David owen, chief european economist at jefferies. A late night president from jacob zuma to return the finance minister gordhan. He replaced the minister. This is the third finance minister to the president s office justifying the move saying we emphasize the importance of listening to the people. Gordhan was widely respected from 2009 to 2014. Talk about musical chair. South african bonds are seeing a return. Now lets check in on shares in investech and the yield. Theyre coming back higher after selling off sharply at the end of last week. Global leaders have cemented a deal which lowers Global Warming to less than 2 degrees. It was greeted by standing applause and whistles from delegates representing almost 200 nations at the cop 21 meeting in paris. Now appearing on nbcs meet the president , we have u. S. Secretary of state john kerry defending this, what he says is a legally binding agreement. And, you know, he told chuck todd that shaming politicians into complying seems to be effective. Its the most powerful weapon in many ways but its not the only weapon. We think there are other powerful weapons. President obama understood and believe me hes been really committed to getting this done and its his leadership in america on our own Climate Action plan that gave us credibility here and the president s been able to do that without some of that enforcement mechanism but by setting policy. Here we set policy. 186 countries came together, each submitted their own plan for reductions according to their capacities. We have a mandatory legally binding reporting mechanism, chuck, and that reporting mechanism requires people to retool their plans every five years in order to do more than they might be doing and meet the goal. People understand this issue. This is not a question of just doing it because it seems nice or politically its good, its because its having a profoundly negative impact on nations. They need to respond and thats perhaps the most compelling reason of all. But you say legally binding. Okay. So somebody doesnt comply, again, is it whats the whats this law that youre going to hit them with other than International Shame . Theres a mechanism that is being set up within this structure that will promote compliance and you will have nations within that mechanism working with countries in order to help bring them on board. You dont always need a sledge hammer. If you can provide people with technology or you provide them with Technical Assistance or youve discovered a new means of reducing emissions at less cost, more efficiency there will be a huge sharing of these kinds of experiences through the reporting mechanism of the agreement. Lets check in on the stock reaction. Europes Renewable Energy players are trading higher today following the signing of that historic climate a kortd over the weekend. Italian group and vista and gamsa and Spains Iberdrola all in positive territory. Sma is a big gainer as jeel still to come on this show, are you excited about this . Im sure you are. The force will awaken tonight when the new star wars premieres in the u. S. , but does the move view have what it takes to challenge hollywoods biggest blockbusters . Well get more from l. A. After this. Ashley bryant, you are a teacher of small children. Thats right. I have read it is the hardest job in the world. Thats why im here. Can you. I can offer advice from the accumulated knowledge of other educators. Thats wonderful but. I can tailor a curriculum for each student by crossreferencing aptitude, development, geography. Sorry to interrupt. But i just have one question how do i keep them quiet . pause watson . There is no known solution. Thwith aches, chills,g. And fever, theres no such thing as a little flu. And it needs a big solution an antiviral. So when the flu hits, call your doctor right away and up the ante with antiviral tamiflu. Prescription tamiflu is an antiviral that attacks the flu virus at its source and helps stop it from spreading in the body. Tamiflu is fda approved to treat the flu in people two weeks of age and older whose flu symptoms started within the last two days. Before taking tamiflu, tell your doctor if youre pregnant, nursing, have Serious Health conditions, or take other medicines. If you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. Children and adolescents in particular may be at an increased risk of seizures, confusion, or abnormal behavior. The most common side effects are mild to moderate nausea and vomiting. Antiflu . Go antiviral with tamiflu. Aduring sleep trains ur latriple choice sale. Ig for a limited time, you can choose up to 48 months interestfree financing on a huge selection of tempurpedic models, or choose to save 300 on beautyrest and posturepedic mattress sets. You can even choose 300 in free gifts with sleep trains most popular Stearns Foster mattresses. The triple choice sale ends sunday at sleep train. Sleep train [train horn] your ticket to a better nights sleep now the chairman of boson has reappeared. In public appearances after going 34ising since last week. His alleged disappearance showed that he had been drawn into beijings crackdown. Shares of fosun dropped 9. 45. They said the chairman was helping authorities with their probe. Did he disappear or not . When they say probe, its personal probe into personal matters. The company, you saw the stock reaction again today, double digit declines for a lot of them. Personal or not, fosun is a very slick china businessman in this era. Ive had a chance to interview him a couple of times. They call him the warren buffet of china. Hes buying up a lot of insurers with up front premiums with longterm payouts. Hes using the up front money to make a lot of acquisitions. Club med would be a high profile one. Thomas cook. Yes. This is a man thats very slick modern china businessman. Can you imagine that happening anywhere else in the world . A billionaire disappeared all of a sudden. Dont know why he disappeared . Yeah. Interesting. Lets talk about alibaba. Speaking about rich, deep pockets, jack ma and alibaba agreeing on a 266 million deal to buy other media assets. Hes taking it from another fellow billionaire. So the semp citing a, quote, uncertain future for traditional funding. They added that alibaba will likely be able to, quote, unlock greater value in these assets. The move has raised questions about the future of the newspapers editorial independence under its new ownership. Shares down 20 . First when this was announced we didnt get any financial details. It looks like its 266 million and its i think 2. 06 billion when it comes to hong kong currency that alibaba is paying for this. When i talked to my Hong Kong Press sources there is a bit of concern that maybe this could mean something in the future from the semp which played a big role, for instance, in promoting democracy during the hong kong protests just about a year ago. Its worth noting that in a letter to the readers the alibaba executive vice chairman dismissed any suggestions that alibaba would actually compromise the newspapers editorial independence. He said this criticism reflects advice of his own. What we do know though is that alibaba has really worked alongside the government in terms of promoting some of their goals, whether it was job creation, more entrepreneurship, branching out into the region. So theyre on the governments good side when it comes to the promotion of business, but whether they can actually stay on their good side when it comes to media coverage, that remains to be seen. Its actually a pretty big test for alibaba. Very smart, smart, smart man, the vice chairman of alibaba. We should point out that alibaba has also been on the hunt for content as well. So this might be a way to get into content. You know, alibaba and jack ma isnt the only one buying into print. We know that with chuck basos. Maybe more content buying than political motive. Who knows. Anyway, bracing for the feds south korean central meeting says its ready to put into place measures if necessary. It will watch Global Markets around the clock during and after the meeting on tuesday and wednesday. I guess every central bank in the world will watch the markets around the clock. The first rate hike in close to a decade. Yes, weve waited close to ten years for this. This might have repercussions around the world. Emerging markets are vulnerable as well as the middle east. Hadley gamble reports from dubai. Reporter serious implications for middle east economies, none more so than in the uae. This currency is pegged to the dollar. The central bank is limited when it comes to formulating an independent monetary policy. Local banks have said theyre going to be raising Interest Rates in anticipation of the feds decision. I got the chance to catch up with the vice chairman for more. The fed decision now doesnt have really an impact on abu dhabi but it does have an impact on markets and i think the fed has done a good job in preserving the stock market, the motivation and the confidence. That they raise the rates today, next week, three months or a year. Its not an issue. America is doing much better and america is leading and allowing other Financial Centers not to collapse and consolidate itself. So on the Interest Rate, its not really a concern if you talk about long term. Volatility is perfect, you like that, up and down for a broker rage house like ours, its profit annual. Reporter it will slow from 4 in 2014 to 3 in 2015. It kept gcc countries churning along. I asked ghanem for his outlook on oil. The oil will not stay at this price. We can see drops just to wipe up some stops below just to show some speculators and now we have new ways of trading which is algorithm and robot trading which do interfere on their own with some criteria. You might have a move on a day, on a day but overall it will go back to stability. Stability being 90 . Were not going to see 90 again . Possibly you might see 90, 80, 100. This is not where i want to focus. I want to focus that the world find another energy solution. We use energy. I dont see people using electricity here. No, the world is not ready for that big move so and then not only that, the whole region passed through five years of huge turmoil. Its not going to come its not going to be lets say you have peace tomorrow at 9 00 in the morning. You need to rebuild, you need to readapt. You have very clever people in this country that knows how to manage the oil price and the demand and the production they want to give. Overall, im not really concerned about that. Temporarily the momentum, is it a question to ask yourself, is it cheaper to live here or live somewhere else. People who like the uae will live here. Others who want stability will come here. Expats are taking flight. We saw many here speculating that even an economic slowdown of 1 could make it happen again. He said hes much more worried about a wealthy exodus from europe than hes worried about that happening in the uae. Quick look at oil prices once again, and they are under pressure again this morning on this monday. Brent crude down 0. 9 . 37. 58. Wti crude, down 0. 67 . After declines of 12 last week, thats absolutely breathtaking. David owen is still with us. How badly is the european economy suffering from the downturn in Commodity Prices or is it actually benefitting from it . Well, its a story about the weakness of the equity markets. In terms of the european economy, its actually good news. One of the reasons the eurozone started recovering in 2014 and 2015 was really the oil price. Not only the oil price, but the labor market has been tight. Clearly Lower Oil Price is good news for consumers skbl we hear that argument all the time, david. Of all the Commodity Prices and stocks keep on slumping, that cant be good for sentiment. Not in the stock market but good news fo