Begin with White House CorrespondentPhil Mattingly and a preview of president obamas rhyme time addressed and night president pic obamas prime time addressed tonight. The topic immigration. What you are going to hear is the first step of a lengthy process by the president and other white house officials to sell this to the American People. It will include measures that will allow 5 Million People to stay in the country who are currently undocumented. It will allow them to come out of the shadows. Question is, what will republicans do to plus fact can the American People behind this . Thes there a chance that Republican Party could overreach in its response . There is a chance. That is what they are saying on capitol hill that they are trying to avoid. They are trying to coalesce around something they can do to push back, but not alienate the hispanic voting bloc. Now, there are a couple things they are looking at, potentially funding matters, potentially moving forward in the legislative rosettes when the process when the senate takes control next year. This is an issue to keep an eye on going forward. Been talk from the Incoming SenateMajority Leader Mitch Mcconnell and House Speaker john boehner that if the resident word to go ahead and unilaterally act, in their executive order, it could poison the well for cooperation on future issues. Are you still hearing that . Absolutely. That is something they said at a luncheon last week and something they continue to say publicly and behind the scenes. There are a small number of issues, you call it low hanging fruit, republicans and democrats say they can both work on. Corporate tax refunds, corporate spending. For the people on the back bench, this will make the entire essentially pushed those off the table. Immigration will be the only thing going forward. Republicans are very aware that they were elected more or less to govern. They try they know they need to pass legislation. How they do that is something everyone money to watch coming next congress. We found out, the white house announced to the speech on facebook. It is airing in prime time right before the Latin Grammys and he will head to las vegas or ace each for a speech promoting the action. What is the strategy . There is a strategy and it is not just going over the press, which was kind of frustrating for some of us yesterday. They are essentially trying to reach out around the press. Tonight, interesting fact networks, cbs, nbc, abc, not hearing the july. White are frustrated by that. They do have an agreement with univision. That is a key demographic they are absolutely targeting. These each tomorrow, very similar. It is the same high school where the president announced his comprehensive Immigration Reform principles in 2008. Nevada is a crucial state. They feel good about it now. White house correspondent Phil Mattingly joining us now. Thank you so much. We will host our special coverage of president obama prime time addressed tonight at 8 00 p. M. New york time. We will carry the speech live, followed by analysis by the Bloomberg Team and special guests. Housing went up unexpectedly in september. Wells fargo is the largest u. S. Home lender. Anika khan joins us from charlotte, north carolina. Good to see you again. Thank you. Monthober was the first where home sales increased. What gave october a boost . Overall, we see lower inventories at this time of year. We can get volatile swings, but we are seeing improvement in the housing market. Stocksit in the housing yesterday and we will continue to see this momentum. The National Association of realtors say that investors have purchased fewer properties. Is this a sign the market is starting to heal . The actions, it was high, but if we look at the overall trend for all caps transactions, which are typically investors, we seen that come down markedly. I think it is important to look at some of the hard hit areas like orlando or miami or las vegas. We are still seeing a large number of foreclosures in the double digits, and investors are still heavily in those markets. Ika, you talked about the breakdown. Lets look at it closer regionally. October, the mideast, the northeast, and the south, the numbers were up. In the west the numbers declined. Why are the west numbers lagging . It is a great question. If you look at specifically distressed transactions, those have come down markedly. We are seeing 10 from this month compared to about 20 last year. So there is not a lot of investor activity in the west. However a lot of those dollars continue to be in the south. Buyers,irst time home they are still hesitant about jumping into the market. They only account for 29 of sales in october. That number has been below 30 are sent for 18 of the last 19 months. Is this about stagnant wage growth or is this something more structural . I think the biggest thing when we talk about firsttime homebuyers is access to credit. Clearly it is access to credit and it is the labor market. We have to point to the younger generation, the millenials, that age group between 25 and 34, their ability to get a job and have access to credit. Once we see these numbers increase, we will get a little bit more improvement in the housing market, but we are seeing strides. Anika khan im speaking with anika khan, senior economist at wells fargo i am speaking with , senior economist at wells fargo. Will we see Mortgage Rates continue to decline . Renters, aok at the lot of these young people, specifically millenials, are choosing to rent and business districts. Many are postponing major life decisions and they will eventually own a home, but not in the near term. Will take a more robust labor market for many of these young people to move into a singlefamily unit. Anika, we have about a minute left. I want to talk about home retailers if i could. Lowes is one of the retailers getting a lift, raising its profit and Sales Forecast yesterday, home depot saying the benefits of the housing recovery will continue or it will 2015 he that growth for retailers continuing . Absolutely. That specifically talking about remodeling activity. When we talk about remodeling activity, it has had a consistent increase for some time. A lot of the activity we would see with the news housing the of housing market, a lot people are deciding to stay in the home they are in and remodel. We will continue to see improvement. , senior economist at wells fargo, joining us from charlotte. Thank you. We will have more from morocco where the fifth annual osborne or summit is underway. Bottom line on Bloomberg Television continues in just a moment. Welcome back bottom line. This is on bloomberg welcome back. This is bottom line on Bloomberg Television and streaming on your phone, your tablet, and bloomberg. Com. Marrakesh, the Global Entrepreneur some the Global Entrepreneurship summit. Hans nichols is standing by. Hans,. Good evening good evening to you. Thank you for being with us. Thank you very much. Spoke. President biden what are your takeaways. What needs to happen next for job creation in the arab world . I think that Vice President biden, it was a very good speech , for a 42yearold celebrating his birthday. Very eloquent. I was watching a movie this morning, done by one of your competitors, about education. One of the things about this movie the challenge today is not just education. Education is important. But Critical Thinking is important. To solve the problem. This is a part of the world where that is not happening. You are either in the system if you are a successful entrepreneur there are some exceptions or your out of it. Give me an example. Besides beaches from politicians, what do you do . I have been here for 30 years now. Reform, reform, reform writ everybody talks about it reform, reform, reform. Everybody talks about it. When it comes to execution it does not happen. The people talking about it have a vested interest. Working. Hy it is not even if oil goes to 50, 60, 40 a barrel . That is my point. 30 years, looking at oil prices, it affects everybody. When the Oil Price Goes up, stability is bought because theres so much money. D becauseo of the cost, but then they get the support that but then they get the support. It is much more significant than what we see on the other side. The countries that are non oilproducing, suddenly it is cheaper for them. But they do not get the support from the big boys on the other side. Which again, reform. Fines, a bbig dollars iens of billions of dollars. You are chasing reforms, what reforms are you chasing in morocco . Come to the market issues. The legal issues. The risk. Conservation. Who wants to sit capital, they are not just there to make money. Where are you trying to make money . We look at housing, Affordable Housing to be a good thing for us. Social housing and Affordable Housing. That is a good thing to go into. Education is another one. And banking summit banking, ch is coop thanking banking. We see a lot of opportunity in those fields. For jobneeds to happen creation here and elsewhere in the world . You have the arab spring to me, it is sort of an arab awakening. We are not going to go back. 2011, all of the people it is not going to happen. The world is changed. Forward. Ot to go one of the causes of the problem is basically jobs. We need 100 million jobs in this part of the world. This morning, we needed to be a zero level before we Start Talking about growth. To do that, i do not see any initiative. You basically by some stability y, but we stabilityu need 10 years of infrastructure across the border. The question comes up, why dont we think about investing in that in creating jobs . Because the biggest creator of jobs creates this inability creates sustainability. We are actually investing it here for longterm because that bring stability for everybody. Thank you. I do not know what the bond. Arket is listening we thank you for your time. With that, mark, we will send it back to you. Jahani,nichols, mr. Thank you so much. Hyman tells us what she sees in the equity market. More bottom line in just a moment. Bottom line welcome back to bottom line. Welcome back to bottom line. Here are some of our top stories this hour. The founder oftakata airbags says a nationwide recall is not necessary. They should be limited to high humidity areas. Hondaook my car to the dealership three times after they received the information. Me about theformed recall, never performed the repairs on my vehicle, and never warned me about what would happen. They did nothing. Airbags can inflate with too much force, sending shrapnel into the passenger compartment. The Honda Odyssey is the only minivan to earn the highest safety rating in crash tests. The Insurance Institute for that andty says dodds caravan had low was breathing in the upfront crash test. In each of those tests, it caused the minivan structure to collapse. Chuck hagel has called the Islamic State group an incredibly powerful new threat. Speaking on charlie rose, he said that the feeding isil is a isil is a defeating longterm challenge. There will be setbacks. There will be progress. Overall we are seeing good progress. We are not where we need to be yet, but this is a longerterm, difficult challenge here. You can watch the full interview with defense secretary chuck hagel tonight on bloomberg tv at 7 00 p. M. And 10 00 p. M. New york time. Counting thewstorm buffalo, new york area has been blamed for a test. This comes as another storm system moves through new york state. Worry, plunging temperatures this weekend of flooding. The Buffalo Bills are donating 10 and game tickets to this weekends game for anyone willing to shovel around the stadium, but Governor Andrew Cuomo says that it will be impractical for the game to be played. Giving thanks will be a little costlier this year. Farm Bureau Federation says the price of putting thanksgiving dinner on the table for 10 people is expected to rise to 49. 41. They products, coffee, and all important Sweet Potato Casserole are to blame. Hour. 26 minutes past the that means Bloomberg Television is on the markets. Our senior markets correspondent julie hyman is standing by with details. We do have small gains today. Lets call this the highs of the session. It looks like they are trading around records. For the s p, we have retail, energy, and Technology Stocks leading the uptick. Lets look at williamssonoma. The company which owns its namesake and the pottery barn chain reported earnings of 8. 7 . And go pro shares are tumbling. They sold 10 million shares at 75 bucks a piece. On the markets we will have moreon the markets we will have more on the markets in 30 minutes. Welcome back to the second half hour of bottom line on bloom or television. Thanks for saying with us on Bloomberg Television. Thanks for staying with us. People get emails from family and friends, but they are in trouble, needing money transfer. Or somebody posting strange videos on your face boobook wal. In other words, to have been hacked. Now in android app promises to keep your account safe. Elliott gotkine spoke ceo at the Tel Aviv Stock Exchange. They discussed how hackers steal your information. There have been highprofile hackings lately. The celebrity picture scandal. A story in the new york times, accountllion credentials stolen by russian hackers. You got really know if your credentials have been stolen. Sometimes a hack will take place and hackers will look at information, and you might not know about it. A few months later someone gets a loan in your name or a credit card. Ofre is an additional layer protection necessary, and we think we are providing this protection. It is an android app. When would we see this coming to funds haveghone . What you raised . We started with android, but we are coming out with an iphone version in two or three months. R d,ompany has been in finetuning the system for a year and a half. We raised some money from angel investors, and recently we raised money from three very good Venture Capital firms. You are starting with the low hanging fruit, email accounts and the like, but you have ambitions to move into an area that is competitive, banking and financial services. Initially we offer protection for large, public Online Service providers, gmail, facebook, dropbox, so forth. We provide these protections for free, and we will continue to provide them for free as we go forward. In a few months we will announce more services we are protecting, the professional side, perhaps financial side, and those are on a fee basis. We will also be providing security support for companies, small and medium companies, and we will provide premium support for individuals and Companies Looking to benefit from our expertise. s ceo atas logdog the Tel Aviv Stock Exchange with elliott gotkine. Up next, a preview of this weeks studio 1. 0. That story when bottom line continues in just a moment. Time for todays latin america report. Investors in venezuelan bonds are welcoming sets president Nicolas Maduro to bolster transparency in government accounts, after concern that the government is running out of cash to service debt. Bonds posted the biggest rally in three weeks after Nicolas Maduro order that 3 billion from chinese loans be added to government reserves. The ceo of imac says imax says they are building dozens of theaters in brazil, china, russia, and the middle east. Imax open 40 theaters in china this year, and has a backlog of 250 theaters. They are finalizing agreements in scandinavian countries, where the Company Already has 70 theaters. That is your latin america report for this thursday. Box ceo and cofounder aaron levie has become a star of Silicon Valley, known for his colorful tweets and bright sneakers. He has taken the company from tiny startup to enterprise power house. Emily chang set down with mr. Levie on the latest edition of studio1. 0, which airs tonight. It used to be there was a cycle of disruption where Software Companies disrupted themselves. We are going through an evolution where we have to interact with so many new markets in so many different ways. At first that starts out as, we can solve this problem better than anybody else. Sometimes that is right. Sometimes it is not. When that is not correct, it ends up looking ludicrous and we look of noxious for it of noxious for it. The outside world is excited about working with Silicon Valley and this wave of disruption. Something we dont get a perspective for as often as i think we could, or maybe we should. Meaning because we are living in our own bubble . We live in our own bubble. The view is Silicon Valley versus the rest of the world it is actually Silicon Valley being integrated into the rest of the world. For the first time, youre not in this isolated universe of its own industry. There is no Tech Industry. It is an unbelievably interesting time, to be the same kind of retailer that five years ago you would have thought was going away because of the internet. Theres a tremendous number of companies that are trying to help you develop new at. Says new experiences to give to your customers. 10 years ago, you thought amazon would destroy your entire industry, and now you are on the upswing because we won all new experiences. So there is no such thing as the Tech Industry . Or in the future, the tech in his tree will not be industry will not be so defined . That is the idea. You will Silicon Valley should be seen as the Software Layer of every other industry. And Lee Chang Emily chang with box ceo aaron levie. 1. 0ull airing of studio tonight on number television. Coming up, as the job market tightens, can American Workers expect wages to rise anytime soon . Fewer americans filed for on implement benefit last week. Companies are holding on to more workers to keep pace with demand for goods and services. Josh wright of Bloomberg Economics joins me in studio. Thank you for your time. You believe the change in the composition of the job market is creating ambiguity in the waste measures way some measures are activated. Where are these discrepancies . First of all, we have a major demographic trend of baby boomers retiring. They have higher incomes. Younger millenials are entering the workforce. There are lower paying jobs coming into the market. Take a look at jobs created in the last jobs report, and they were concentrated in lower paying sectors. Talking about restaurants, hospitality, retail. The minutes of the saids referenceber meeting progress in the labor market. Where does this leave how policymakers are describing the overall condition of the u. S. Job market . It means they will be turning slowly away from the labor market and looking at questions of inflation and pricing. They are not through the woods yet, but you get the impression they see the light at the end of the tunnel. They said some of these have been reduced. A couple so require more work. It was not exactly Mission Accomplished but it was a more sunny outlook. Would you describe this as a hawkish or a dovish sentiment . A lot of people thought it was kind of dovish. I think it was relatively neutral. We did not learn a lot from these minutes, in the Market Reaction really reflected that. We did not see a drastic decrease in prices. One of the biggest things to come out of these minutes was that the fed was walking back from conversations that about when on recently about the u. S. Dollar. More americans are quitting job. Does this signal confidence that americans can quit her job because there is a better job out there . This was one of the most stubborn forms of slack. Although jobs were being created, not a lot of people were quitting jobs, a strong sign people did not feel confident enough to find another job to be there old thier eir old job. One concern deals with weight pressure. Pressure. Is it increasing . We have not seen that in pure wage numbers. Quarterly numbers did pick up. Im not sure if that will be a firmly established trend, because month on month numbers have held steady, wage numbers. Laboru look at broader compensation, benefits, bonuses, those have risen. Wage numbers month to month do not control for the change of competition of those jobs. Is there less pressure on the fed to raise Interest Rates . Absolutely. Weak numbers on inflation will reduce the Bargaining Power of workers. Even though the job market is starting to normalize, the reality is that if prices are not rising, that will make it harder four employees to make the case they need to be paid more. Is there anything on your radar screen that this era of stagnant wages is going to break anytime soon . It is possible. We certainly see tightening in the job market. As i mentioned, quarterly numbers for the Third Quarter started to increase. But the reality is that we are kind of perched, we are not quite sure which side we are going to fall on. Not a very satisfying response, but the reality is that is the data. Thats what we saw the fed say in those minutes. We are not sure what to make of these numbers that have come out, and we will have to wait for more numbers. What does the Bloomberg Economics team see for the labor market in 2015 . We are headed for a continued strong growth in headline numbers. The Unemployment Rate is going to be coming down even further. That is going to raise a lot of questions about what the longterm neutral rate of employment is, and when inflation starts to take off because the job market got to type. Too tight. Is the consensus still that they will move on race next summer rates next summer . Between summer and fall. The market seems to be looking at september these days, but they continue to say it could be any time in 2015. We get the sense mid2015 is what they are thinking of. Josh wright, joining me in the studio. Thank you. Decades over the next decade sales of electric motorcycles and scooters are expected to increase. One Italian Company wants to dominate the high aend market. Tesla has made the electric car mainstream, but there has not been a standardbearer in the twowheel world. Now out of italy e we happynergica ego. We have the energica ego. This is the first time i ever rode a motorcycle to a gas station and did not need to tank up. The hard part is keeping it light. 569 pounds, a third more than a ducati. But the battery provides more than twice as much torque as a ducati. For 34,000. S theor that you get best part is the traditional tubular trellis frame. My favorite part about writing this bike is the sound. Its addictive, the highpitched wail you expect to hear from a jet plane. It gets higher and higher the faster you go. It takes a waiting to get use to the fact that there is no clutch, and know the shift lever no shift lever. It is all worth it when you twist the throttle. They will make 300 by. Lose enough,t there is a more limited Edition Model for 16,000. 68,000. Bloombergs matt miller reporting. Check out the latest edition of business week today. You can read on the go with our new businessweek app. Another check of Market Movers is on the other side of the break. Markets in positive territory on this thursday, a week before thanks giving. Bottom line on Bloomberg Television continues in just a moment. Get the latest headlines at the top of the hour on Bloomberg Radio and streaming on your tablet and on bloomberg. Com. That does it for this edition of bottom line on blumer television. Bloomberg television. See you tomorrow. Bloomberg television is on the market. I am julie hyman. We do have a little rally going on in stock today. Not a huge one, however, particularly the dow, which is little changed, but the dow and s p could still close at records today, propelled higher by better than estimated Economic Data and earnings coming in better than estimated. Speaking of earnings, we had retail numbers that are actually pretty decent. One week away from thanks giving and the official start of the Holiday Shopping season, although a lot of retailers are getting in early. According to a new report, 140 million shoppers plan to take advantage of thanks giving deals instore or online. Joining me today with a look at who is most likely to benefit is a retailing analyst for bloomberg intelligence. Thank you so much for coming in, as always, to talk about this. Lets talk broadly about black friday, which has now stretched to sort of black friday week for many retailers. I am still trying to wrap my head around why there is so much and this is put on this time. Is it just to drive traffic . It really marks the beginning of Holiday Shopping for americans and retailers. Black week is about 15 of holiday sales, so you are getting 15 of sales, big volume period for retailers, when there is typically the most promotions to bring out customers into the stores early in the season to shop so they do not have to wait until the end. Any differences this year . This year will be much more promotional. One thing to keep note of is that inventories are much leaner retailers dor, so not necessarily need to be promotional, but they will be to grab share. Who is going to be the big winner this Holiday Season . That is to be seen. We did hear that walmart has an interesting strategy this year, five days, five doorbuster deals, taking the lull out of black week, bringing out something new everyday. Target, they said yesterday that they are offering 300 gift cards with a 10 discount. You are not only getting a big sale, but you are bringing the customer back into the store to shop again. How much are these really differentiated . If you are a shopper, do you just see deals and close your eyes and point at one, or are you really scrutinizing the different deals to find the best one . It is about finding the best one. That will depend where you show up on thursday. Are people really taking the trouble to do research . People have a list of what they want. If i want a xbox, where can i get it . What are the toppings i have on my list to shop for, and who has the majority of that at the best price . And that is where you start. Any big losers . It is all about price and choice. We found that toys r us and kmart are the most expensive, so we will see, sure they give up. Thank you so much. Looking forward to putting on our shopping shoes next week. Appreciate it. Street smart is coming up next. Welcome to the most important part of the session. I am trish regan, and this is street smart. I will be joined by thes cio of janus capital, and counting down earnings. And i was the to the israeli consul general to the u. N. About the rise of new forms of extremism in the middle east. Street smart starts next. Here is a look at