The 12 year lows. Theyre on the rise with china stocks as well. Look at oil, 33. 78. Lauren stocks and oil moving in the same direction this week. Market chaos in china certainly becomes a political issue on the campaign trail. Well tell you what candidates like donald trump had to say. Nicole well talk to gordon chang. He is the author of the coming collapse of china. Is this just the beginning of the end . Well hear reassuring words from Charles Schwab chief investment strategist Liz Ann Sonders. Live reports and analysis. We have you covered from beijing, new york, and chicago. Fbam, your look at fbn am, your look at markets and breaking news, what to expect in the day ahead. Mike ingram, market analyst at bgc Partners Joins us on the phone. Mike what are you thinking now, after this crazy week . Look, were down 5 but up arrows this morning. Now what . Frankly i would just stay well away. Very controversially underweight equity markets end of the First Quarter of last year. And im still quite happy to be that way. We dont know what the end game in china is yet. I dont think we can look for durable stabilization in risk markets until we know what the endgame is. My best guess well see much weaker currency. Maybe 7. 3 versus the dollar. Very little policy transparency out of peoples bank of china and government doesnt helpers. We dont know what happens next. Yes, china is up but own after massive government intervention. Nicole what advice would you give to regulators there . Very difficult to offer useful advice. We want to see the market clear where it is going to go but you have a stock market where manipulation is almost a national sport. Well it is. Shanghai Stock Exchange is casino. That is being uncharitable to casinos. You have a situation where the government needs to rebalance from investment in net exports to consumerism but also, at the same time, they want political control of the economy. They want to keep control of these state owned enterprises. The two are actually incompatable. We need economic reform but it is not consistent with a oneparty system in china. So is seismic steps that has to be taken. You know, im not so sure that china, when push comes to shove will actually find it is actually that committed to the path of reform. Nicole right. Mike ingram, bgc partners, thanks for joining us as we watch chinese stocks moving to the upside, lauren. Up 2 . Dow so far so good if youre a bull. Lauren the screen we showed had a wild ride for stocks in asia around the world. Dow jones and nasdaq, look at that so far this year, this week. In china stocks there losing roughly 10 on the week, gaining back some of that ground today. Look at asian markets with Business Reporter tracy yu. Tracy is Business Reporter for Chinese State television. Good morning, tracy. Things looking better today. Good morning, ladies things are looking much better. Crc officially suspended Circuit Breaker last night, gaining 2 led by blue chip stocks. In hong kong the hang seng rebounded as well. After the chinese central bank, pboc gave the chinese yuan much firmer midpoint range. Tokyo, trading is looking pretty directionless today. Investors are pretty directionless but nikkei still ended in negative territory by 1. 3 led by Retail Stocks and Tech Companies. In south korea kospi also ending in the green gaining. 7 of 1 but heavy foreign selling continued. Back to you. Lauren tracy, thank you so much. Nicole chinese stocks are bouncing back today following a week of wild trading. That is an understatement. But theyre still down 10 for this week okay . This is ongoing serious story. We have a great guest for you guard done chang, author of, coming collapse of china. You joined us this week. Youve been a big part of fox business. Now what . They get of Circuit Breakers. Were still worried about the yuan and chinese economy. Yes. The concerns about economy have not gone away despite the marginal increase today. The reason is the Manufacturing Sector is contracting. Services are growing but not growing fast enough to compensate for that. The chinese stock market, i think you know, today was calmed down. That is of course, because the government was in evidence in some of the trading. The big story is going to be this weekend. There are rumors that the head of the China SecuritiesRegulatory Commission is going to resign. There have been rumors like that in the past. Were going to see he what happens on monday. This will be fascinating. Someone has to pay a political price what is happening this week and it will probably be a senior figure. Nicole if he does in fact resign what does that say about the underlying problems within the chinese economy. The economy, the growth model is exhausted and chinese leaders have yet to figure out what to do. They really cant do anything within the context of the political system which they wont change. Which means that the only things that will change are the officials. And many people say that begins this weekend. And so all eyes are coming to be on what happens on saturday and sunday. Nicole were here at home. Were waiting on the jobs report. We have a market running wild because of what were seeing in china. What do you tell american folks watching this wild ride, waiting for Economic News . Just how intertwined we are globally . Well we are intertwined but an no the less nicole Going Forward why does it matter so much . It shouldnt matter in the sense that investors in the u. S. Should understand that the chinese economy going through a transition. This has nothing to do, little to do with the rest of the Global Economy because china is not as connected as most people think. And the economy in the world is very deep and resilient t can transition. So therefore, it can get around the problems in china. So i think that essentially investors have overreacted. Nicole but, gordon, china playing with their currency, devaluing the yuan, what that does create competitive conditions in other markets, particularly emerging markets so it does affect other countries . It will. But i notice countries can react. That is going to be a good thing. Chinese currency will probably fall much more than investors in the United States and around the world think. Nicole wow. How far will it fall . I think within this year you could see anywhere from 10 to 20 to 30 . Nicole wow. Because the problem is that the chinas economy is just on the precipice right now. That means things could go really, really bad. The currency could collapse. Im not saying that will happen but it could happen and investors have not discounted china properly. Nicole gordon chang, thank you so much. Author of the coming collapse of china. Explaining this to us. Wild week. Lauren china story big. U. S. Oil price story just as big this week. Yesterday they plunged to about 32 a barrel, the lowest level in 12 years. This of course in reaction to the stock market turmoil going on in china. Phil flynn Senior Market analyst at Price Futures Group. Fox business contributor, joining us live with the latest. Phil, what should investors be focused on in the oil market today . What is the story . I think rig counts and how the u. S. Stock market continues to follow through on this rally. This reminds me very much of what happened in july when the chinese stock market crashed. If you remember, that is the time we were panicking. Oil went below 40 a barrel. Everybody thought the world was coming apart. China stablized and Oil Prices Rally 10 a barrel over next couple weeks. We could be a in a very similar situation. Everybody is betting on lower prices. They got the spike down to the 2003 low. We took it out by one tick and rebound. That seems to be capitulation bottom at least for short term. Nicole whether we look what is going on with Energy Trading the spdr which is a basket of Energy Stocks down about 5 this week, people invested in energy have been waiting all last year, they got hit so hard, thinking 2016 is their year to get hit hard again. What are you hearing about investing in the gripe overall . I think the gripe overall is risky because there will be a lot more bankruptcies but at same time there are very big names, you know, oil majors that are really undervalued because the Big Companies are going to be able to withstand that. But you know nicole Oil Companies can you say . Sure. Exxon mobile, chevron. Chevron cut everything to the bone. You look at those big stocks, i mean theyre undervalued. Big Company Everybody will be talking about today is saudi aramco. That story to me is huge today. You know, with saudi aramco, their pride and joy, Biggest Energy company in the world is thinking about, you know, offering shares in their company. Thats a sign that saudi arabia has big economic problems. It could be a sign that this production war is taking its toll and at some point they may have to cry uncle. Lauren phil flynn, thank you, analyst at Price Futures Group and fox business contributor. Nicole spreading fears about chinese economy. How poorly they will be doing. They will be up six 1 2 this year. So china has got difficulties. I agree with that because theyre sitting on a little bit after bubble. Could be a lot of bubble. China is in a lot of trouble. Their government badly managed their economy. They havent been transparent this will be ongoing cycle months perhaps years to come. The best way to protect america is have a strong economy. We faced a government that didnt let markets work. The world paying a price. If they sneeze, parts ever the world will get a cold. This has to settle down if the chinese will be participating being part of the market basket. You understand that means they got to come clean because theyre going to have to let this thing work out. They cant keep manipulating things. Nicole that was trump, rubio, kasich all giving their opinions on our ties to china. Make sure to tune in for the next fox business republican debate, thursday, january 14th, sandra smith and trish regan will kick off the early debate at 6 00 p. M. Eastern time. Then you will join Maria Bartiromo and neil cavuto for the later debate, 9 00 p. M. Eastern time. It is sure to be exciting and informative and all business, all right here on the fox business network. Lauren politics, the debate, oil, china and then youve got the jobs report, in the middle of turmoil this week. The december jobs report comes out later this morning three hours from now. It will provide the first major incation how the u. S. Economy fared for all of last year. It will provide clues about momentum in the job market heading into the new year. Economist expecting 200,000 nonfarm jobs will be added in december. Inemployment rate Holding Steady at 5 . Of the investors focus whether wage growth is picking up. Mornings with maria will have a special jobs in america report beginning 8 30 a. M. Eastern here on fox business. Nicole we have to check on the shanghai composite index which yesterday was halted down 7 . Today up 2 as they got rid of Circuit Breakers. Kospi up 3 4 of 1 . Lauren flip the board to europe to see how those stocks are trading in the early going there. You can see the ftse up by 40 points. The cac up by 16. German dax up by 73 this morning. Nicole technology, financials, everything fall out of bed yesterday, look what is going on today . Dow futures up 1. 1 . Like s p is up 1. 1 . Nasdaq is up 57. Lauren worst start to any year. It has been awful. How are commodities doing this morning . Oil rebounding. Up more than 1 . Gold, great week for gold. It is giving up some gains today as stocks rally. Gold is down 11 bucks. 1096 a troy ounce. Nicole look how the u. S. Dollar is trading against other key currencies. Complete reversal of yesterday. Today the euro and yen are weaker against the green back. Lauren yield on 10year treasury, 2. 17 , up three basis points. Nicole china moving to lower the value of its currency. Yesterday the yuan hit its lowest level since 2011. That certainly spooked u. S. Markets. Gives us a closer look at all that, jane foley, senior currency strategist at rabobank. Thank you for joining us, jane. We look what is going on with the yuan. What can we expect Going Forward and why should everybody in the u. S. Focus on this . Tell us how important this is . It is important because it will work back through the value of the u. S. Dollar which affects u. S. Corporates and affects u. S. Policy potentially. What we see in china, they have a defacto bid against the u. S. Dollar. The u. S. Dollar has been appreciating. That has been dragging value of the renminbi higher last few years. China is economy weakening with weak inflation. Last month they released a paper that said we shouldnt focus so much on the value of the u. S. Dollarrenminbi rate, the Effective Exchange traded weight. As dollar is dragging higher the value of renminbi has been appreciating almost against everyone else. Now, the chinese authorities have been intervening in the market to support the value of the renminbi. They spent a lot of money last month. Theyre still supporting it. This month they appear to be walking a way a little bit, allowing it to fall to some degree. That spooked markets. Because it affects trading partners of china and how cheap their goods will be to enter china. Nicole coming into today chinese currency down eight days in a row. What does that say about the strength or weakness rather of the chinese economy . Well, again, many people were looking at fact that the chinese authorities were allowing their Exchange Rate to fall this week as signal how weak the currency is. It is a bit of a chicken and egg story. I think they were allowing it to fall really because the economy perhaps needs a little bit more stimulus. They have been trying to stimulate policies such as fiscal policies through Interest Rates. But still perhaps they need a little bit more. The facts, the problem potentially for china, if the dollar rallies on back of Federal ReserveInterest Rate hikes, that will tighten monetary conditions in china even more. So china loosened up the peg to some degree. Trouble is for everybody who exports into china, particularly commodity producers, that can be very painful for them. Nicole right. Jane foley of rabobank, thank you very much. This is a big controversy, right . Very controversial about the pboc when theyre manipulating the currency, propping up the markets. You heard all the gop candidates coming in to talk about the controversial moves. Lauren one of many casualties of the market week meltdown, apple closing down below 100 for the first time in 15 months. Apple is hurt by slowing growth in the iphone in china. Apple shares they were 425 down to close at 96. 45. If you put that in perspective that is down 25 from the july peak. That july peak, if you remember, 132. Were showing you how apple is doing in premarket trading. It is such a big part. Market. The bidask is higher. Were looking above 97 a share. Nicole Silicon Valley ceos meeting with Senior Obama Administration officials including fbi director james comey. This comes as the government is pushing tech giants to do more to block terrorists from using internet, using social media to incite violence. The executives from major firms, this includes facebook, google, yahoo are expected to attend this very important meeting. Lauren lets get you caught up once again on Global Market action overnight. Well start with asia. We have green arrows. Shanghai up 2 . Hang seng up half of 1 and kospi up 1 . Nicole look at europe. Everything is turned around. Completely different picture. Dax and ftse up more than a half of a percent. Lauren here in the u. S. Still a tough week but hoping to end on brighter note ahead of jobs report in three hours from now. Dow jones industrial average futures up 184 points. S p futures up 23. Nasdaq up 57. That is all more than 1 on each of those indices. Nicole youre right. The dow and s p are down 5 . Check out commodities. Oil with up arrow. Up more than 1 . Gold pulling back now. People are taking a breather getting out of gold which is a safe haven. 10 the 6 an ounce. 1096. Lauren china gaining wellneeded ground back today. Lets look at close look at asian markets with tracy yu, live in beijing. She is reporter for Chinese State television. Good morning, tracy how are things shaping up or where do they end today where you are . Good morning, ladies things are looking much, much better. Chinese composite rebounded after they officially suspended Circuit Breaker last night. Officially note they used word suspended and not canceled. Yuan bouncing back 2 led by blue chip stocks. In hong kong markets rebounded, hang seng gaining. 6 of 1 after pbpboc gave them a rate. Nikkei inding in negative territory down about. 4 of 1 led by Tech Companies and retail shares. Kospi the ending up in the green by. 7 of 1 . Heavy foreign selling continued. Back to you. Lauren tracy, thank you very much. Nicole lets bring it home. U. S. Stock Index Futures pointing to higher start for wall street when the opening bell rings 9 30 a. M. Eastern time. Will the release of the december jobs report, what will that do to stocks as well . Were waiting on that very important piece of news. Rob morgan chief Investment Off