Chris Rupkey, Chief Financial Economist at MUFG Union Bank,talks about the global stock reaction to the weaker-than-expected Chinese factory data, as well as his outlook for 2016. Bobbi Rebell reports
Stocks taking a big hit in the first trading session of the year of separate fact that China a factor and also at discouraging news. Here in the United States are constructing is the chief financial economist at and you ask me being an agent now. With more thanks for joining us glad to be here are so we had news that China factory activity shrank in December why are we getting this big global reaction. It's like sometimes people. Caught the most dangerous economic statistic in the world comes out like 8 o'clock. Closer to 9 o'clock New York time. You know over the weekend Sunday. And for some reason the market always look at it looks at this says and now because they're the worries about China's slowing. There to visit the reaction was unbelievable. A little while wired and market in the world in his reaction because it really this. 7% ever were also down pretty sharply globally. Yeah I mean for me. It looks like the Chinese monetary authorities are trying to I mean there wading into the the markets and intervening more. Then people in the US would and it sounds like they're trying to stabilize the market. You know make it a safer place so they put in various measures that didn't work overnight and fell 7%. And the market was closed so if that market closes people start selling and other markets. But here in the US we did have a display manufacturing as you mention manufacturing data today and you voting your notes that were really feeling the heat US made facts are feeling heat from the worldwide. Showdown the world let's slow that I am saying growth so I've. I had to write happened apple announced. Yeah I mean it's interesting what's going on I mean first off. We used to use ISM manufacturing purchasing managers the game which is a center right so. Surveys don't always get it right and so a lot of serve as it. Anyway it is down to 48 point two if it's below fifty manufacturing. This actor's supposed to be in decline. But we already know from industrial production that it isn't manufactured productions. Actually apps I think what may be coming through here is that. Some the weakness we've seen in mining. Oil and gas drilling that's factoring in to this number. As we get into 2016 what do that he economic numbers that you are watching that you think could impact the market. Well it's interesting. You know we're trying to look at the pace of rate hikes would what would make the Fed go faster. I think San Francisco fed president Williams came matter. A bowler and news headlines that something like three to five rate hikes this year thanks a lot skirting four issue I'm looking for four. Looking for one half percent Fed Funds rate at the end of the year inflation's pretty big right now I mean yelling came flat out and told us. The late they think the labor market. They've they've reached their mandate it hit the mandate we're at full employment so that I was a little shocked she said at a press conference in mid December at their meeting. In a way that kind of steals the thunder from. This Friday's jobs report on the Friday in the jobs reports after this what do you that I just adopt a course. Well it's pretty boring actually 200. Thousand for payroll jobs and it knows we don't really not a forecast that and it's probably gonna slow at some point this year because we're at full point. Some point we're gonna get like 180. Something like that. I leave it there thank you so much. I think secret struck he and you FG union bank and popular about this is Reuters.