Dynamic growth despite low sales in china. And shares rise as profits jump 21 . The ceo of infosys says beating some stability. Announcer youre watching Worldwide Exchange, bringing you Business News from around the globe. And a very good morning to you, last trading day of the week. Jobs tri friday. Ahead of that, equities are firmer here. Advancers outpacing decliners. The ftse 100 yesterday was down some 30 points. This morning, its up some 30 points. Essentially, its still absolutely flat on the year. 0. 5 higher. Xetra dax and cac 40 also 0. 5 . The ftse mib is 0. 2 higher. This morning, lufthansa is up 5. 74 . Its predicting oil prices will decline. Meanwhile, swatch shares are up 4 despite full year sales just missing expectations. Its talking about Dynamic Growth next year and this year despike weakness falling in the chinese market. Orange is up 11 . Reports suggest both do you have ya telecom and at t are interested in taking over the firm this year. Now cara in germany, in frankfurt trading down 5. 3 . Huge impairment charge. Fourth quarter revenue down 5. 3 . The 1. 7 billion charge comes on the back of Aluminum Prices and a global surplus continues. Lets show you where we stand with bond markets and yields ahead of the employment report. Tenyear treasury yields, 2. 9 . We were just nudging up yesterday 2. 8 , 2. 99 . Spanish yields, 3. 81 . Still firmly below the 4 level. Gilt yields tracking along with treasury yields, as well. Euro dollar, got down to onemonth low of 1. 4548 post the ecbs fairly dovish talk. And u. S. Dollar is just up to 1. 36 this morning. Dollar yen still below 1. 45. On a 24hour basis, havent changed an awful lot. Weve had chinese data out today and whats happened in asia so far. Sixuan is with us. Thank you, ross. The shanghai composite was down six out of the past seven days ending lower by 0. 7 . The shenzhen down by 1. 6 . Over in h index gained about 0. 25 . In japan, the nikkei 225 managed to end a touchigher ahead of the u. S. Stocks reports but earnings continue to weigh on the kospi, ending at a fourweek low, down 4. 1 . Miners lost ground amid trade data. Gains in index heavyweight fast retailing capped early losses on the nikkei. It added over on 3 after posting a better than expected rise on its q1 profits. 21st century fox dropped 4. 6 after the company said it would delist from the asx. Meanwhile, chinese brokerages continue to tumble after ipos gradually come on line. We know eight Companies Start to stai take this week and theres 18 more to come next week. So theres lots to expect. Forecasts according to an increase of 200,000 in nonfarm payrolls follows 203,000 in november on. Barring a surprise 2013 could see the biggest annual increase in new jobs since the enof the recession in 2009. Unemployment, thats expected to hold at 7 . Rradp, which we got on wednesday, that was the best number in a year. Joining us for the first part of the show today, hans reddcker. Hans, good to see you as ever. Good morning and happy new year. Happy new year to you. This number today, is this going to confirm we get steady tapering from the fed . And if that is the case, does the dollar ground higher . Yeah. Inde indeed, we are fairly optimistic. We need to analyze how the u. S. Economy is. It is growing. It is no longer the same type of Growth Development as we did see from 2002 to 2007. Than it was domestic demand pushing the u. S. Economy into a higher growth strategy. You have to look at the u. S. As an investor. It is the business side of the supply side of the economy which is doing better. You see at the same time and a result of that is that the current account deficit of america is falling and that actually means that america has now less bills to pay and that meerchbs dollars liquidity outside america is weakening. That takes me to the next point and that is the lending behavior of the american banks internally versus externally. And what you see there is that internally the lenning activities are very strong and externally they are very weak. It is very different from what we have experienced for the past 15 years. And that, i think, is a very good indicator of upcoming u. S. Dollar strength. So to answer your question, what you will see is a stronger u. S. Economy and you will have the fed continue to taper in the moderate days and you will have to deal with a higher u. S. Dollar. The interesting thing is,in, every year we start the year, hans, saying this will be the year when dollar goes one grow growth. Is that trend over . When there is risk appetite, the dollar is now going to strengthen. Thats what were saying. Thats quite a big change, isnt it . It is quite a big change. You see relationships are aesthetic. From 1996 to 2001, there is a stock market in the u. S. Dollar. And then they are saying the following indicated it was the rest of the world offering this higher return and that will affect the relationship. And i think that we are going back to a relationship where we used to be in the late 90s. Again, the indicators we are looking at the early suggestions of the u. S. Dollar strength. They are all in place. What you have is that theres a slow turn around in the way american investors are facing their portfolios or less investment abroad, more domestic banks are focusing more on domestic businesses, less on falling businesses and when you look at border flows, america is seeing more than in an environment where in total cross border flows are declining. And when cross border goes on declining, thats the host, i think. You need to look at those economies which have a substantial foreign liability position, huge current account deficits and support and that is where you see at the moment those currencies coming under selling pressure. So one of these xamps, for example, is brazil where we are seeing a substantial turn around in the account and where you see the private sector being short of u. S. Dollar. Okay. And stay there. Youre going to stay on the camera. Were going to talk china now. Chinese exports fell putting more pressure on equities at home. Imports were up more than 8 . China haas now missed its overall trade target for 2013, but Customs Officials expect a better 2014. Joining us right now is shang schuae. Good of you to join us. Whats your analysis of these numbers . Export growth down, import growth up. Right. So the twael actual actually, the overall number if you look at the level is pretty good. The year on year has declined, but its partly because of the high face of last year. So i think overall, the trading side of the economy, the export side of the economy is still okay, but were more worried about the domestic part of the economy and investment side, both property and yield Infrastructure InvestmentGoing Forward and whether that can be sustainability or not Going Forward. Thats a big question for investors going into on 2014. For the chinese economy now is much more domestically driven than export driven. Yeah. But the import growth is the stronger section of that and yet youre worried about consumption. What is the basis of those imports . Are we seeing the traditional things we night expect, Raw Materials and commodities . Right. I think the commodity imports as well as consumer goods in december are holding up quite well. And thats actually in line with our expectations. I think q4 last year is still doing okay. That will hurt the income for households and probably will hurt import going into particularly after the chinese new year. Whats going to happen to the Economic Growth, then, in the first half . We think economic will trend down and either the Second Quarter of this year toward close to 7 . So that overall economy, particularly ill say on the production side or supply side of the economy probably faces quite a bit of slowdown. And we probably will see that first on the pmi. How do you view the performance of the currency in an environment where china has a did he deleveraging environment . Is the renminbi going to appreciate further . Yeah. An interesting phenomenon in china is that although the economy is slowing down, there seems to be pretty strong pressure for the nikkei to continue to appreciate. Theres the Interest Rate differential that seems to be widening so for the Government Bond in china, nowadays around 4 . It was around 3 half a year ago. So the wide. Ing Interest Rate differentials drives the inflows. It will probably continue into the First Quarter of this year. Yeah. What Monetary Policy responses are we going to get as a result of this . How are they going to strike this balance . Its a tough situation for the peoples bank of china. Controlling the Financial Stability and focus on the shadow Banking Sector trying to deleverage the financial system, particularly for the banks, try to keep the exposure to the shadow Banking Sector at a containable level. Because of this, i think the Interest Rate will remain at a relatively high level and this will hurt investment so that will slow down. By the current stage, i think the government is not that worried about the overall gdp growth because the Current Space of the Economic Growth is still very much acceptable so that theyre focusing on the Financial Stability shadow banking on this issue. Thanks very much for joining us. Still to come, has the Ukraine Movement lost momentum . Well be speaking to the Opposition Leader at 10 40 cet. Investors are getting insight when the cpi numbers are revealed. Rates are currently at their highest level since 2012. Well be joined by a guest who says we should expect at least one or two more hikes11 30, bed economy. And ahead of sundays Golden Globes, which studio is going to be the big winners . Our guest says this is one of the most competitive awards season ones in recent memory. Plus, as the wolf of wall street oh oh opens, well talk financial flicks. [ male announcer ] the new new york is open. Open to innovation. Open to ambition. Open to bold ideas. Thats why new york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and grows more businesses. Were open to it. Start a taxfree business at startupny. Com. This is really just a move on very, in my opinion, about people that are excessive and what happens to the human mind when it gets too much. Yes. You can forget about bulls this weekend. Wall street is all about wolves. The wolf of wall street held its premier last night. Chronicles the heavy excess life lived by one of new yorks traders. We want to know which would make the best movie. Which tale from the city or individuals in the world of finance trading business would make the best script for a film . Think about that. Let us know. Regulators under pressure who argue expertise at these departments has meant a lack of convictions. In what is set to be britains biggest Insider Trading case. Thanks for joining us. How much do Insider Trading rely on prosecution . I think thats the whole point. They have to seize a lot of computers, phones, these mobile phones that are temporary in order to compile the evidence. And the fsa today, sco, rather, came out today with a statement trying to defend itself in the team that it takes to compile these investigations by saying, look, we have to go in and arrest these people. We have to do these dorm raids. Its important that we crack down on these cases on these people because thats a healthy market and we need these kind of reports of insider information. In the states, they crack these by giving immunity. Are we following the same path here . I think they look at things like that. But remember in the uk you dont really have a right of redress. So there is a case of the 2010 operation, it was, you know, dozens of houses raided in the morning. It was high profile, 143 Police Officers were involved. And seven people have been charged. But several people havent been. For years, their life has been hung in the balance. Now we understand the fca is going to charge them. But there have been cases where they failed. Are these jury cases . No. They they dont do jury cases any more. Im not quite sure the jury cases if they tried them in front of a judge. I think in front of a judge and i think then theres an appeal. Jurorers couldnt understand what was going on. Its very complex to understand and the fca do make mistakes sometimes. We all make mistakes sometimes. Thank you for now. Imports continue to fall and it was the curb on Precious Metals that continue to have the impact. The curbs were imposed to help bring down indias massive current account deficit. Joining us on the year, exa zepatra is now joining us. Thanks for that. It was an inlied trade deficit in december. The exports grew only 3. 5 this month. That was all in december, rather, and thats because the Petroleum Products are in a bit of a decline. That is expected to normalize. However, they are down 13 in terms of the total imports and nonoil imports which is everything to do with gold and silver and everything was down 22 . Gold imports again, that component came down 1. 7 billion for the month of december. Very similar to the other previous that is coming at. And remember that there are gold which have been in place all the way since may to june and thats when the gold imports start declining. Thanks for that. Have a good weekend. Indias second Biggest Software firm appears to have turned a corner the. Profits jumped 21 , the strongest growth in two years. The results are helped by strength in its two major markets, u. S. And europe. The firm also raises full year revenue outlook. Take a look at the stock price. Well come back to that. Now, Francois Hollande, the french president , has accused the french magazine closer of privacy issues. The magazine claims pictures show ohland arriving at a apartment with his bodyguard followed in later by an actress. Cnbc is currently waiting for comment. Lets get some comment now from our french correspondent. Stephane is with us in paris. I imagine this is causing something of a stir. No because its not the first time that there are such allegations, ross. Last year in march, they were saying francois was dating judy oley. But there were no pictures in the press. This time, there are seven pages of pictures in which you can see Francois Hollande visiting the parisian flat of the actress at night. Now, this is a private issue between Francois Hollande, his partners and if Francois Hollande decides to start legal action, he has a lot of chances to win this case. But its raising another issue. You can see the president traveling at night on a scooter sneaking out of the palace. This is raising questions about his security. Hes traveling on his scooter with only a driver and the security of this one location. But based on the picture in this magazine, thats not a private issue any more. It is a Security Threat to the french president and we can also argue that there is another thing, he is not driving a french scooter. What about french people buying french . I guess the french industry minister will not be happy with this choice. That is the real scandal here. I agree with you, stephane. Well done for pulling out the most important piece of that story. Lets hope hes using our key products. Still to come on the show, numbers are starting to dwindle. Well speak to the Opposition Leader in kiev about the ongoing fight to break away from russia. Fifteen minutes could save you fifteen percent or more on car insurance. Yeah. Everybody knows that. Did you know there is an oldest trick in the book . What . Trick number one. Lookest over there. Ha ha. Madeest thou look. So endeth the trick. Hey. Yes. Geico. Fifteen minutes could save you. Well, you know. Weve got a bit of data out of the uk. November manufacturing output flat on the month, up 2. 8 on the year. A little weaker than forecast. Its forecast to be up 0. 4 on the month, up 3. 3 on the year. Sterling coming down to the lowest against the dollar on the session on that one. 54. 20. Industrial production also flat on the month, up 2. 5 on the year. It was forecast up 0. 5 . We also saw the october Industrial Production revised to plus 0. 3 on the month. And november construction output, up 2. 2 on the year. So construction output posting its sharpest jump on the month since june 2012. So rather disappointing in the uk. What you see is the british economy is developing an uneven growth profile. We have seen that in the numbers and as well in the current account numbers. The current account deficit is at 5. 1 is . And i think the current account deficit is going to widen further. But when you are in a period where you invest more and this investment here in the uk is more in real estate than anywhere else, and you invest more than you save then you have the current account deficit going wider, but that means you need more Capital Imports and you see that yield on a relative basis in the uk are still attractive. It is a difficult time for sterling is also going to come when higher bond yields are going to reduce the Growth Outlook for the british economy. Here we need to look in particular into the consumer side. We need to look at this housing market. And i think that there the indications are still pretty strong as we have seen out of recent statistics and as well