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[Bloomberg]( China data raises red flag for global growth, it's PMI day, and troubles for Trump and May continue. Eco worries part I Growth in the world’s second-biggest economy [slowed again in November](, with retail sales posting the worst performance since May 2003 and industrial production decelerating to 5.4 percent, below all estimates in a Bloomberg survey. The data is symptomatic of the wider problems facing China, where the trade dispute with the U.S. is just one of a number of factors wiping [$2 trillion in value]( from the country’s stock market this year. Little wonder then that the Asian nation seems to be stepping up efforts to find a [lasting agreement]( with its largest partner in commerce. Eco worries part II While Chinese data proved disappointing, this morning’s euro-area PMIs left little room for any schadenfreude. IHS Markit’s composite Purchasing Managers’ Index for the region[ dropped to 51.3](, the lowest level in more than four years, largely driven by a disappointing reading from France that [indicated a contraction]( amid the “Yellow Vest” protests. PMI readings for Germany also came in below estimates, seemingly confirming [growth risks]( flagged by European Central Bank President Mario Draghi yesterday. Sponsored by Cornell [Two campuses, one community. Transform ambition into impact with tailored curriculum, a unique set of Ithaca and NYC course options, and a community of faculty, staff, peers (and friends) who have your back. Discover the Ivy League power of a Johnson Two-Year MBA.](  Political headaches President Donald Trump can add the [activities of his inauguration committee]( to the list of legal and political headaches threatening to bring further turmoil to the White House. Needless to say, Trump [remained defiant]( in the face of the latest allegations. Meanwhile, the race to become the next [Chief of Staff]( is down to five candidates, with former New Jersey Governor Chris Christie among those interviewed for the position. White House sources denied reports that Jared Kushner was in the running. Across the Atlantic, British Prime Minister Theresa May continues to face battles as European leaders [gave her very little]( to help sell the Brexit deal at home. Markets drop Overnight, the MSCI Asia Pacific Index dropped 1.4 percent while Japan’s Topix index closed 1.5 percent lower as concerns over China’s growth weighed on the region’s stocks. In Europe, the Stoxx 600 Index was 1 percent lower at 5:50 a.m. Eastern Time as [weak car sales]( added to wider concerns over the economic outlook. S&P 500 futures [pointed to a lower open](, the 10-year Treasury yield was at 2.877 percent and gold slipped. Coming up… Headline retail sales are expected to show growth of just 0.1 percent in November when the data is published at 8:30 a.m. Industrial production numbers at 9:15 a.m. may show an increase to 0.3 percent from October’s 0.1 percent, and PMI data is expected to soften slightly while still remaining in expansion territory at 9:45 a.m. At 1:00 p.m., the latest Baker Hughes rig count is published as investors remain somewhat at sea about [how to model shale production](. What we've been reading This is what's caught our eye over the last 24 hours. - This year’s best-performing government bond market is [seriously dividing opinion](. - More [talk than action]( on regulating big tech in the U.S. - How North Carolina [cranked partisanship up to 11](. - The [pessimist’s guide]( to 2019. - How Ireland [outmaneuvered Britain]( on Brexit. - [Bitcoin sinks]( near the $3,000 level. - Team invents way to [shrink objects to the nanoscale](. And finally, here’s what Luke's interested in this morning It’s been extremely difficult to pin down the “whys” of December’s market action. But here are some “whats” – the themes of a messy month so far. U.S. small caps are getting crushed. Banks too – around the world, but particularly in America, where they’re in oversold territory. Emerging-market equities aren’t getting battered as badly, continuing their relative outperformance of U.S. stocks since early October. There is no visible momentum-to-value rotation. The former is up on the month, while the latter is among the worse-faring factors. On a related note, the Nasdaq 100 is doing better than the S&P 500. The negative correlation between stocks and bonds is fairly tight. The 10-year Treasury yield couldn’t stay above 3 percent on good news – the trade truce – but hasn’t really been able to stay below 2.85 percent, either. And finally, the key reason it’s been so difficult to grapple with what markets are doing: Intraday volatility is haywire. Through Wednesday, U.S. stocks had moved an average of 3.8 percentage points per day over the past five sessions. Since the crisis, it’s been rare for equities to move this much without moving more decisively to the downside – the drop in question has been less than 2 percent for the S&P 500. In all, this is pretty much the definition of a choppy and volatile market. Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find [FOLLOW US [Facebook Share]]( [Twitter Share]( [SEND TO A FRIEND [Share with a friend]]( You received this message because you are subscribed to Bloomberg's Five Things newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022