To y welcome manus welcome to countdown. Anna commodities a big theme. By some concern investors around the highyield markets in the u. S. The junkbond ecf close at a sixyear low. We talked about highyield bonds and the spread has been whitening. Widening. Now the Goldman Sachs event expressing concern. Talking about real carnage in junkbond market. Markets. They say they have the most Investment Opportunities since lehman collapsed. Manus it worries me when you have a Major International when you talk about this junkbond or these high yields, when you look at the oil industry a big portion the yields are rising to the highest level since 2009. That goes back to the conversation we had yesterday, a lot of restructuring. A lot of expense to repay the 1. 5 trillion that is the size of the u. S. Junkbond. News. Lets the first word reporter Chinese Consumer inflation Beat Estimates. Cpi November Rose 1. 5 year on year. The Producer Price index fell 5. 9 , extending declines. Meanwhile, the peoples think of china has cut the u. N. s Interest Rate to the weakest since 2011. They are trying to release pressure before an expected increase in u. S. Interest rates. They say dow is in talks to merge with dupont. An agreement could be announced as soon as this week. After the merger, the company would break into on the move or three businesses two or three businesses. Donald trump said that muslims should be barred from entering the u. S. After the attacks in paris and san bernardino. He is refusing to back off of the comments. Unusually large items left at an airport. Advertisement asking for the untraceable owner of three towing planes to get boeing planes to come get them. , the lets bring matthew head of Global Equities at Henderson Global investors. Taking us through some of the big stories overnight, where should we start . Yahoo brings my bow rings my the strategy has not played out. We all know, as you look at the share price returns she has delivered, they have not been that good. Then we have had the alibaba debate. That debate is rumbling on. Underlining all of this is the lack of revitalization in core business. Standsk at what yahoo for investors are not convinced the core yahoo sayingyou made the point it was absolutely predicated on the structure of value. Anna that was what the plan was. If that didnt happen, maybe investors reevaluate. If we see a big chemical tieups between dupont and dow, that would be the largest deal ever any sector. Does this have an indication for european crop chemicals . Matthew this business would be too big to invest exist in its current form. Opportunity for those looking to bulk up in certain markets. It will be a large, costsaving opportunity. Dow chemical, with dupont had been looking around for a activistfor aggressive involved in the stock two years ago. This is a natural manifestation. Updatelets get an agent asia update. Heidi it has been a taxing day when it comes to the asian session. We did see a few green shoots. We have several steep losses for japanese. The nikkei closes 1 down. Index. Ile we have investors playing broader attention to the global story the commodities route. Aussie shares of 6 10 of 1 . Up 6 10 of 1 . Ipos. X new ideas being cut by a lot of weakness, particularly in the industrial space. Thent to talk about ical cooperation is down. I am is another stock watching, it is one of these green stocks that is doing poorly. This despite beijing bowing to do something about pollution as that red alert continues in full force and the chinese capital. We are also seeing out a downside move for the currency. It is at the weakest in over four years. 42 6. 42. A six. Anna thank you. Lets get more on the chinese story she was referring to. Chinese consumer inflation picked up last month. Meanwhile, the countrys central bank at the u. N. Reference rate to the weakest level since 2011. Manus the pboc is trying to release pentup depreciation pressure before an expected u. S. Rate hike. Lets talk to our China Economy team leader in hong kong. Pentuphis phrase, a depreciation demand. We are set for the lowest close in four years in the yuan. Guest it looks like we have moved on. There was a surprise move in august to free up the yuan, and then the big followup. Fall out. And then the counter reaction, they must stabilize. They spent a lot of money stabilizing the currency, selling u. S. Dollars to buy it am a stabilize it. That was a key to get it into the International Reserve basket. It is done now. Last week they got the nod from the imf board and said, yes, we will accept it as the reserve currency. Perhaps speculation from some economist that they can allow it to steadily go lower. It is a stress test going on to see how much lower it can go. This plays into the story from yesterday on exports. Continuing export weakness should argue for a weaker you want yuan. Anna lets talk about the inflation data. What does that tell us . Malcolm it tells us of some signs of stabilization. The cpi came a bit stronger. On the domestic front, it looks like demand is looking good. Services prices are rising rapidly. Level, at producer the price decline that we are seeing largely in a heavy industries, oil and gas, steel, everyone knows they are having a hard time in china. Some of the Consumer Prices at this factory level are looking ok. Taking all of that together, along with the more moderate pace of declines in in ports yesterday, perhaps there are signs of it was nation in domestic demand. Manus thank you. Lets bring matthew back in. I love this, the pentup depreciation. Yesterday, everyone assumed the yuan would fall further. How much further does it take on the currency to rebalance this economy, or is that your best Case Scenario . Matthew we all expect far too much from the chinese central bank. It seems clear, it is not possible. Some of us are worried that the central bank is out of control in china. That has caused loss of confidence. We do know that the companies we , things arechina not as bad as people assume. But china isgood, or as much of a drag on the economy as people think. There is a depreciation it will be a pressure on the rest of the world. 1. 5 , it is up by looks as if it will come in about half the pace that the government wants. Expectationd more matthew a stimulus was possible it would have happened by now. To some degree the government is pushing on a string. I think the goal is stabilization. Manus thank you. Is a look at what else is on the agenda today. We will give the german trade data. Then we will get the minutes from the bank of england financial policy committee. Get u. S. Noon we will mortgage applications. We will also bring you big interviews with top news anchors. Johnever we talked to longworth this afternoon we talk to john longworth. Manus and then we have an interview with Michael Spencer at 9 00 a. M. London time. Anna crude reality sets in from the least to norway, we look at the reaction across the globe in an exclusive conversation. Anna welcome back, this is a live shot of beijing. 2013. Alert since some driving restrictions have been put in place. It will be likely in place until at least thursday lunchtime. Three decades of strong Economic Growth and the Authorities Say they will take it action. In the meantime, lets get up to speed with a business flash. Reporter bloomberg sources say dow chemical is in late stage talks to merge with dupont inlet in what would be the largest deal in the chemicals industry. After the merger, the company would break into two or three businesses. A source says yahoo will scrap the long planned spinoff in its stake alibaba. Apple has suspended plans to offer a live, internetbased television service. Ontead, apple will focus being a platform for Media Companies to sell directly to customers to its app store. , john cryer said the company is willing to pay higher cost to do business in the u. S. , because other regions do not offer fees that can top the worlds deepest capital market. He says not to be in the u. S. Would be inconceivable. For more on these stories and others had to the bloomberg terminal and bloomberg. Com. Anna oil is rebounding from a sixyear low. Rallying for the first time in four days. Caroline hyde got to speak with one of the Worlds Biggest Oil producers, as well as the world against sovereign wealth fund. Is the oil industry panicking . Caroline slightly. I spoke to be seventh Biggest Oil Producer in the world, and i spoke to the chief executive itlining he is worried with falling yesterday. Because it is putting off investment. There has been 200 billion drawn out of the market, so says the chief executive. He says we need to get to a higher price. Have a listen. Claudio i think it is the right price. We are cash neutral at 60. I think the right price is not just the right price for us, it is the right price for the average in the industry, and also for the producer. Caroline he wants 60. He says that would be good for a producer, and a fair amount for an emerging producer. Check out this terminal, look how low forecast have gone for brent crude. This is where they see brent crude being price for next year. Look what analysts thought it would be trading next year that this time last year. They saw it at 91. We now see 2016 not getting to 60. Instead it will be sub 60 throughout next year. It will be 57. 5. Great bit of an analyst coming from the terminal. Coming fromcerns the oil market it is not where it should be. Manus you also spoke with the Norwegian Wealth Fund, this is fascinating. High times have changed amid the oil, given that the funds carried by oil has been given all of its revenue from falling gas revenues. What has changed . Caroline i know you have spoken to him. Executive of the Biggest Wealth Funds a wealth fund pumped full of money, 850 billion worth from oil and gas revenue. They are suddenly, for the first time, actually going to see withdrawals. They will see less inflows. The government of norway looking to take money out of the wealth fund to be able to stabilize the economy. It is so dependent on the oil and gas industry. Talking about this new paradigm shift in this era of thirst redemption for the company interestingly, they are going or risky more risky. They will continue to move away from bonds, dramatically get out of bonds, instead going to risky equities. They are bouncing back. I think the norwegian economy has gotten back everything we lost. It will be a positive year. Last quarter,he their Third Quarter, they had their biggest loss in more than four years, 32 billion. In just a quarter, they have completely made that back. Clearly they are managing to restructure the way in which they invest. They go for more appetizing returns for the emerging markets. Big investors in china, despite the slowdown, are managing to make back the losses. As you see, the chief executive of the Norwegian Wealth Fund being it will be a positive year. Anna the plunging price of oil has been hitting the gulf states. Government Spending Plans have been thrown into disarray. Thank borrowing costs are up and stockmarket have been hit. The council is home to around 29 of the World Oil Reserves. Manus lets bring in elliott. It looks like abu dhabi stocks are being treated as almost where they were. I was in the region this time last year. There was that great excitement in terms of the redefining of some of the gulf nations. there are three categories come have developed, emerging, and frontier. Frontier markets would trade on a lower valuation because of the inherent risks associated. Abu dhabi, which together with dubai holds around 60 of the World Oil Reserves is actually trading at a lower evaluation and frontier markets. Then frontier markets. If you look at the chart, abu dhabi stocks are trading on a. 4 times projected earnings 8. 4 times projected. Frontier markets are trading at nine. This is suggesting investors reckon there are more of sides accounting for the risks and frontier. In frontier. You have seen volume wendling as as saudi dwindling arabia is the outlier. These are more them examples of how these Oil Dependent economies are being battered by these low oil prices. Output inning to cut order to try to boost prices, there are those out there who reckon that there is still more to run for loyal low oil prices to filter through. Others view it as such a low of valuation that it is perhaps time to go into these markets. Just because something is chicas not make it a good value. Just because something is cheap does not make it a good value. Anna thank you. Matthew is still with us. Manus has crafted a question. Is crude bottoming out . Matthew it worries me when you look at the chart and analysts play 62 on oil. Place 62 on oil. Price ollowing falling price. The energy have been the worst performing. There are substantial downgrades to, if they do not go up. Regardless of the quantity, it has to move quite a long way. Manus i was thinking of some of the market components the on energyort position is 5. 5 . The average is about 3 . Most short positions in this products are by Commodity Trading advisors. Have the specs been trade flushed out . Matthew they had been started. Fundamental investors are looking at their earnings models. There is momentum in the stoxx. Cks. N these stoick it feeds neatly into the stresses of the highyield market. Marks overnight, expressing concern or telling you about a great investment opportunity. Of that around john bond junk bonds, is this of me that could infect the broader economy . Investors have things they watch. When we think about u. N. One of the things they look for is highyield markets. This is a recession indicator. The good news is, it is the only one on the dashboard flashing red right now. Anna thank you. Next, is yahoo ditching its plan to offload alibaba. All of that when we are back. What is Marissa Mayers next step . Sure, tv has evolved over the years. Its gotten squarer. Brighter. Bigger. Its gotten thinner. Even curvier. But whats next . For all binge watchers. Movie geeks. Sports freaks. X1 from xfinity will change the way you experience tv. Manus it is 6 30 in london. Lets go to the first word news desk. Reporter Chinese Consumer inflation Beat Estimates showing that demand is stabilizing. Cbi in November Rose 1. 5 . Meanwhile the Producer Price index fell. Meanwhile, the peoples bank of china has cut the reference rate to the weakest since 2011. That fuels speculation that the central bank is trying to relieve depreciation pressure before an expected increase in u. S. Interest rates. Bloomberg sources say that dow chemical is in late stage talks to merge with the pot in which would we the largest deal in the industry. After the merger, the company would break into 2 or three businesses. Douglas tompkins has died following a kayaking accident. The 72yearold also started the Fashion Company espirit. Anna thank you. Caroline hyde is watching all of the market action. Caroline asia following what was europe and the United States lower today. 225,a look at the nikkei down by more than a percentage point. The commodities, the miners are feeling the pain. The next shot highlights the commodity index. It is not managing a rebound. We are seeing slight improvements in prices, but copper remains lower today. Nickel remaining lower. Index, we have had five months of declines, this is over the last three days. Not managing to muscle much. Here is your Interest Rate prices, iron ore is more than 1 lower. Have a little look the clever function on a bloomberg terminal is forecast for oil, where they stand now, and where where they last year . For 2016 we see no improvement. We could see it getting up to 57. 5. This is forecast for brent crude, heading sub 40 for the first time in almost seven years yesterday. In 2014, this time last two, analysts thought we would get a price of 91 per barrel next year. Now we will not get 62. Concern. Here is rsilast clever little fact, this is all about your overall market moving trending data. It is not saying it is oversold. Even though it is some 40. The rsi is that 33. If you get below 30, it shows a certain asset is oversold. As yet, it does not seem to be. Manus thank you. Yahoo also in the news. It is scrapping plans to sell its stake in alibaba, after pressure from investors. Marissa mayer will have to turn to other strategies, including a spinoff of its main internet business. Tell us more, is it pressure, is that a uturn, had we look at this . Do we look at this . Reporter you will remember in january, she really talked about a possible possibly selling off the alibaba stake, worth more than 30 billion. Yahoo s market value is about 33 billion. Since then she has come under pressure from investors who have been concerned about the tax risk of the deed deal. They could get hit with a tax bill of more than 10 billion for spinning off of alibaba. What yahoo is considering now, according to a person of knowledge with the matter, is spinning off of its main internet business. That would mean that yahoo would be left as a shell that owns shares in alibaba and yahoo japan. Would anyone be interested in this . How much for . We have heard verizon is interested. Analysts are estimating a selloff of the business could raise around 3. 5 billion or more. Some analysts say it would be last than 2 billion, depending on who was buying. Of course that sounds less than the holding alibaba, you get a sense here that meyer is running out of options. Sales are harboring at 2006 levels. Investors are running out of patience. Google venture ceo, bill mirus book to bloomberg west and he outlined some of the challenges. Bill she has a tough job, i respect the fact she has walked into that and is t