Deportations. We are also tracking chinas decision to cut Interest Rates since 2012] in. Good afternoon. They have tried to revive the economy through targeted monetary injunctions before. They cut the benchmark lending rate by 40 basis points, and the deposit rate by 25 basis points. Deposit rate ceiling was increased to 1. 2 times the benchmark deposit rate. The way you would interpret this as they are reducing the cost of credit, but not necessarily increasing the amount of credit available to the economy. The move is in response to the weakness in the Economic Growth. China is headed for its lowest fullyear growth since 1990. The government this year is targeting 7 . See pmit we had the hsb figures, which missed estimates. In many ways, that was the straw that broke the camels back. You add that to the problems in october, the second weakest Factory Production is 2009, and machine investment that expect since expanded the lease 2001, the biggest jump in bad loans and nine years, housing sales slumped 10 , and to add to all the woes, weakening export growth. I spoke to gavin parry in hong kong this morning. He is a folio manager and he told me that the rate cut does ft involuntary policy in monetary policy. The surprise rate cut shows how weak the economy really is, but does not give us a sense of their larger plan to revamp the economy. That question and others are still unanswered. Thank you. Were going to try to get some more answers. Expertring in china jamie mansell, the senior fellow and author. Why did china do this now . They are really worried. There are a big tailwinds on the global economy. You have the slowdown in china, you also the recession in japan. The listing of the european economies, and these guys are worried because they have a political problem. China needs Economic Growth to provide legitimacy for the communist party. They are trying to steer a little but of growth to revamp the economy and rebounds and reform. Whenme when nations there seems to be a hit with, they panic a little bit. You are seeing a less than the shortterm, but in the long is is a warning shine ign. On bloomberga lot tv about new wants as it relates to language from the u. S. Federal reserve. Is the pbocs language nuanced, or is it missing the point . In his nuance related to something, and then they are saying we not getting off of the reform path that we have promised. They are taking is injecting more stimulus into the economy. It is like you are ready party, ended this late at night and things are starting to flag. And then somebody says i have more booze and it feels good and the party goes on. So the Global Markets liked with a heard today . In the shortterm, if theres more stimulus, whether just be an, china, or elsewhere, and the shortterm there is going to be a booze. With the fundamental problem is that the chinese economy is unbalanced. They have this allocation of vital resources, and it is not they alsomic reform, need political reform that will allow those balances to be made. . Is that forthcoming . They are betting the future of the country that they can have economic reform first. Political reform may be will come second, we do not know. But the reform that is happening is topdown reform rated from our perspective, this needs to topdown and bottomup. If your political reform, it would be addressing the structural problems as part of chinas economy. The reason you have this allocation of squeezing is who benefits from this m ove . Countries that are commodity producers bring Manufacturing Companies and countries. And the Chinese State and prices that are having the massive that oblems, since they have the danger of a debt crisis and they are constantly needing to roll over the debt. Ore credible year one of the other geopolitical implications of they have raised regularly over the last 35 years. Part of it is based on what it is doing now, but heart of it is based on the dictation and tony keeps growing, they will be bigger than united they. States. But if china economically looks less strong, with all of the other elements of chinese power will be brought into question. It was not too long ago that lecturing the United States about getting the economic comes in order. Have the tables been turned . In 2008 and 2009 we were the basket case. And yet again we have shown this incredible resilience. In no chinas in this very difficult position and their needing to transition their economy from an investment led economy which is great, and the soviet union did that, to an innovation and consumption led economy. , they are trying to maintain the current political system, and not allow for the transportation that would be transformation that would be required. Moves byan, with these Prime Minister abe, what is the outcome . Structural reform, politically, that is the most difficult. If they cannot get that, it is back to this party. It looks like they have pulled for elections in december. But the restructuring reforms both in japan and china and europe are essential for allowing those economies to realize their potential. Thank you for joining us. Coming up, a billionaire says most mineral plant workers are being ripped off without being aware of it. It is time to change the rules that favor wealthy people like him. It has been about 24 hours since president obamas speech to the nation where he laid out his plan to protect 5 million undocumented immigrants from deportation. Now democrats and republicans are taking in for what many believe will be a monthlong Public Relations ground war. Phil mattingly is in washington with more on that story. Afternoon. As one senior democrat told me last night, now the real work begins. The president in about 90 minutes would take the stage at del sole high school in las vegas, nevada. Laid out hise comprehensive Immigration Reform , and todayin 2014 it is all about selling what he has laid out. It shows the americans are somewhat wary. You will see a lot of pushback from republicans, but there will theonstant events, president pushing forward, trying to sell his plan. The republicans of may clear their opposition to this move, but one of the going to try to do to block the president for putting it into place . Quickset is the question. But if theres one thing that Speaker John Boehner made clear this morning is that something is coming and it is going to be Something Big to push back. The peoples house will rise to this challenge. We will not stand idle as the president undermines the rule of law in our country and places lives at risk. We will listen to the american people, we will work with our members, and we will work to protect the constitution of the United States. Leadership andin their staffers made clear that when they want to attack this problem is in january, when the senate is controlled by Mitch Mcconnell and his republican conference. But there is a question, there are a group of republican lawmakers that want this addressed immediately, possibly in a spending bill that is due by december 11. One thing we do know is once january comes therell rule be efforts, we them legislative or legal to push back on what he has announced. Thank you. Weeks the u. S. Labor department will issue rules that could expand the number of employees entitled to overtime. Authorizedbama has the labor secretary to monetize the rules for overtime exempt status. Overtime coverage is one way to fix the income gap in the u. S. Welcome, thank you for your time. Before we get to the overtime, i have to ask you your reaction to what is going on on the hill and his speech last night . I think what the president is doing is perfectly sensible. Has 10, 6e of what it years of obstruction. Why not do something to make the country better and enact some policies that will move the ball forward . Speaker boehner is angry and says that the president is ruining the president the, but so says the man who has ruined the congress. It seems totally sensible to me. Republican plan more or less says lets try piecemeal approach. Lets not just jam the us down the throats of americans once all at once. Would piecemeal be better . I am not a piecemeal approach guy. I reject that. Congress has had not just this last six years, but the 10 years prior to that to deal with this problem and they have not. American people, fairly, are tired of it, and the president is tired of it and he is doing something. Pass thiss wanted to off, they could have written a bill. Wrote about income and inequality. A handful of wealthy capitalist like we are growing wealthy beyond our parents while his dreams because we are able to take advantage of your misfortune. When did you mean that . The principal thing that is wrong with the American Economy is that it concentrates wealth in fewer and fewer hands. That is not just unfair to the typical american, it is simultaneously destroying the size of our markets. In this terrible for business. What we need to do is make some shows thes that reality. Ensures that capitalist like me either pay workers fairly, or that we employ more workers, which generates more jobs and more customers for the economy. What is fair . In the day, about 65 of my workers were entitled to overtime. Since then, it has eroded to today were only 11 of salaried. Orkers the president has the power to bring that number a backup to wire it once was where it once was. If he did that, millions, at least 10 million more workers would be entitled to overtime. They may not be paid overtime, businesses would employ more workers to get that work done. To give the thing real economy some velocity, but more importantly, how much would it cost . What you mean. N in my cost an individual business a little bit more, but corporate profits have doubled as a percentage of gdp. It is the next or 1 trillion going into the pockets of the ball like me. What do americans realizes that it is profit week is powerful people like me prefer it to be. It could be used as wages for middleclass americans. If it was the american con me would be far more robust American Economy would be far more robust. What questions you have egos and the start of a five of ceos and the startups that they fund . Tremendouswe have a responsibility to conduct the , toness is that we fund conduct ourselves, and to encourage the people that we conduct them selves as a responsible citizen. It will not work if people behave sociopath weically. Is a terriblesaid thing, and is a reflection of the culture off uber. Thank you. It has been a pleasure. Up next and we have an update on the markets. Welcome back. This is bottom line. Lets get you some of the top stories we are following at this hour. Avoiding a proxy fight with of this or dan loeb after agreeing to two four independent directors. They have called for dow chemical to focus more on the petrol business. The Obama Administration is delaying a decision on whether to reduce the amount of ethanol in the nations fuel supply. Proposed to reduce the amount of ethanol for the first time. It angered corn growers who have since lobbied the government to reverse that decision. The wait continues in ferguson, missouri for a grand jury decision whether to charge a Police Officer that killed a teenager over the summer. The u. S. Attorney general, eric holder, is calling for calm. I ask those who seek to lend their voice to important causes, seek to elevate these conversations to do so in a way that respects the gravity of their subject matter. Peaceful protest has been a legacy of past movements for change. Writes Michael Brown was 18 years old when he was killed by Darren Wilson following an altercation. Brought hugeat drifts into buffalo new york has finally ended. But now there is a looming flooding, and, more roofs collapsing. Bills arentime, the making their way to detroit to play what is a home game against the new york jets on monday night. There is no word if they will be fory in the home stadium the game on november 30. Thes now 26 minutes past hour which means that Bloomberg Television is on the markets. We have about an hour and a half left before the end of the trading. Stocks are trading up for you through china. Now has three out of the 10 big Industry Groups in the red. It has fallen off the session highs that we hadnt the first 10 minutes of training day. Shares of gamestop. They are plunging after earnings came in well below analyst estimates. Welcome back to the second halfhour of bottom line. Pay, google wallet, and even bitcoin are changing how we pay for goods and services across United States. Oldest payments company, the clearinghouse, is building a realtime Payment System that allows consumers and businesses to pay each other in the fastest way possible. Erik schatzker sat down with the ceo for an exclusive interview ualthe clearinghouse ann conference. We do not have a realtime Payment System in this country today. We have a number of Payment Systems that exist and we have a wire system which is for highvalue payments. That is realtime, but not a likely designed for consumers. Mainly bank to bank. Large payments. We have a system that has been around for 40 years that is a batch system. It has next day settlements. Railsare the ones the that are being used as the rails for various other Payment Systems. Credit card and debit card systems. But there is no way to move payments from consumers and is mr. Consumers is news to consumers across the country. It does not a is today. What does it facilitate . For every solution that has to be a problem. About building something just because it is faster. What we are seeing is the proliferation of nonbanks starting to offer a whole host of realtime like payments. They raise a lot of safety and soundness concerns, a lot of them are concerned about cyber. We are concerned about all of the issues that banks care about. What about bitcoin . I do not have a lot to say about that. It is an alternative currency, still new. It has a lot of issues right now. Certainly the fluctuation in value of bitcoins is rather dramatic. Maybe im old school, but i still have trouble understanding when something is not backed by something. You pointed out that there is a vibrant industry growing in the shadow of the large banks. There is a community of startups, and in some cases not everything from payments, to london, to capital markets. Why is this happening . To your point, there is a need. People are providing these capabilities because they see unmet needs in the market. The reason we are entering this now in the banks is because it is a safety and soundness and security that we are worried about. At the the the day, when things go wrong, they go to the banks to solve it. Inks are where you have a checking, savings some of those of the accounts that again debited or credited regardless of who the intermediary is providing that. For the banks to not provide a more secure and sound rail for consumers would be a mistake. Market share as well. These companies are taking business away from your members. Theyre just intermediated the banks from the consumers is how i would characterize it. Yet the residual risk and responsibility still falls with the banks. It is masons now. It is still early. None of them would own a percent of the market. But i think apple pay is a good example of what may be a game changer. Who are the winners and losers . If you are successful in building this realtime network, who benefits, who wins, who loses . For the system of the future to have a great chance of success we wanted to be winwin for everybody. It has to be ubiquitous, youve have to be able to have everybody profit from it, your grading value that people pay for. I think that that will be our goal to do. We do not want winners and losers in this. That was the clearinghouse ceos he exclusively with Erik Schatzker speaking exclusively with Erik Schatzker. Peter cook has more on our latest story. It was heated at times and front of the Senate Subcommittee that heard the hearing today. Ors weret responding to public reports of accusing the fed up being captured by wall street, unwilling to lease the biggest things of the nation. In his testimony he ignores the dark set is made some mistakes, but steps have in take into taken to bolster. I would like you to answer the question. Banks,estigated the quite rightly sillo for having serious cultural hall blooms in terms of their behavior. The question im asking you is do you think the new york fed also has serious cultural problems . I do not think we have it to the same degree, but are we perfect, absolutely not. Listening intently from the audience was carmen cigar. Fired by the fed in 2012 and is suing for ron termination wrongful termination. From the has to come top, and it has to go all the way through the institution. Without that, the fed is not able to do its job. We have to remember ira green with you on that i agree with you on that. Either you need to fix it, or we will get someone who will. It was not just elizabeth warren, leaving the hearing i asked if she wanted him to step down and she did not answer that question. Thee pushed back against. Uestions of a hearing these are usually more amicable affairs, bill dudley gave us much as a god here. Was sonusual that there much contention, but you have a lot of regulatory powers after doddfrank. Verylicans are looking fo awayat some of the powers from the fed. And then theres the institutional pride. There are a lot of people at the fed who believe they are doing a good job and want credit for it. Thank you. Still ahead, we will look at what the travel association calls u. S. Martyrs. Work martyrs. It is time for the latin america report. They extended their weekly rally to the highest point since march. ,ey strengthened 1. 3 the biggest increase after russias ruble. At aos economy grew fastest pace in almost two years. The rebound in the u. S. Economy boosted demand for the nations exports. 8. 5 exports advanced percent in the first 10 months bolstered by new factories built by nissan, honda, and mazda. Coming up, the case for taking vacations. We will show you a you can save up for that dream trip to paris. Here is an interesting i statistic man who do not take vacation to 30 more likely to have a heart attack, and for women it is worse, 50 . U. S. Workers do not use all of their paid time off. Most people say this because of money. There is a company out there that wants to change all that. Is this just a question of money . There is a large problem at hand, it is a fair in the american people, business, and economy. Ofare you talking about out it, or you talking about days not taken because of sick time . Accumulation of all of it. People are not taking vacations for a number of reasons that fit two different buckets. They do not feel they have that money to set aside because it is not energized correctly. Problems in the workplace. People are scared. They do not feel confident taking time off from work, whether it is an issue with feeling like they are going to miss the next big raise, work , it is anntment issue that employers need to be aware of. When you take time off it has a number of different than offense. From improving the family, to pumping money into the economy, to increasing jobs, to overall happiness and being more healthy. You came up with the concept accounts. It is in addition to a benefits package. Moneyees can set aside into a vacation savings account. We link these to our Online Technology that allows them to plan and invite people, socialize and bring these to fruition. Rights have companies been receptive to these ideas . Very much so. Some companies regard to, do not understand. They do not know their stuff takes that Vacation Time that theyre going to come back cap were if their staff take that Vacation Time, they will come back cap year and healthier. Are they understand they very on board. We have been talking about wage stagnation. Most economists see a labor market that is gaining strength but workers salaries do not reflect the spirit is it possible that a vacation is a luxury that many in just cannot afford . We do not believe so. There have been studies that show if you can save passively for Something Like that, and sets it and forget it, then it will not affect your daily spending habits. It will have little to no effect. You know as well as i do that somehow people will find an excuse not to do that. Have you convinced them that it is in their best interest, especially healthwise, to do this . The top to come from down. When i go back to the american workforce, leadership and management need to tell their staff that it is ok, and that they should do it. That it is encouraged. Once they hear that from the top, it gives them that ok, that little hurdle. That it possible then those at the top in some instances just do not want to relay that message because it might be better for them and their bottom line of their workers are still at their desks working as opposed to taking time off . Very much so. The old mentality of thinking there is we can get them to work long and hard, and we can get more done and we can make your money. But contrary to that, Research Shows that if they get that refresh, do not have that burnout, the comeback or project and get more out of their staff. There is a plethora of reasons that they just do not know about , so we are try to educate. Much Vacation Time did you take each year before you got involved in this movement . Sauceave my little secret , i dig my friday off and my monday off, and i do as many as i can with my family. What has your family said about your approach to get ready to take time off . And you met with any resistance from members of your family . The family. Everybody likes the idea. We talk about taking that trip, everybody says yes, and then nothing ever happens. This is a very Welcome Technology and a product that we brought to the table. But it is not one size fit all. It does not fit all businesses, not everybody is open to the idea of encouraging their staff to travel. Is tough with some employers, but others really get it. A lot of the terms that are isd about the tech sector that it is disrupt if. Dive. Iveyou see this as disrupt . Vary. Ery. Where would you take a vacation right now . Ive not been across the pond. That is probably the next stop. The founder and president of outski joining us from scottsdale, arizona. Thank you for your time. Another check of the Market Movers is on the other side of this break. Get the latest headlines at the top of the hour on Bloomberg Radio and on your tablet and bloomberg. Com. That does it for bottom line. Matt miller will be here next week. I will see you after thanksgiving. It is 56 past the hour which which means we are on the markets. Lets get you caught up in more stocks are trading as we have about an hour to go before the closed for the week. They are trading at record highs , and that combines with a grossse exit of bill the fund to become the worlds secondlargest. When we take a look at the etf space it is interesting because a lot more is flowing this way mainly because of the past month the sb is up eight s p is up 8 . Tothere are two other etfs track as well. These three are the top three and influence this year. It is pretty miraculous that the three etfs are tracking the same index, but all of them are doing well. This whole market has been great for eds. If you look back three years, these are also the top three in flow getters. It is part of this market that has brought assets about 180 billion in total this year. They are just shy of 2 trillion in the u. S. Is now the secondlargest fund out of all 200,000 that exist in the world. Oneimco was in the number position. They are number two, the vanguard is number one. In now spyber of theumber two because departure of bill gross. A day. 28 billion to put that into perspective, that is three times more than apple trades every day, and apple is the second most traded security in the world. But people are not going out of these names, they are holding them for a while. Both are happening. These are up 28 billion dollars in a oneday turnover, that is a lot of money. But you have somebody like my mother or my grandmother who could go in and hold it for 10 years and exit and get just about the performance of the index. Meanwhile, hedge fund could go in for three hours and do a complicated trade so does like the ishares core . She does. Even better than ishares, i would say for the longterm retail investor, the vanguard s p 500 is the most popular with retail. Points. Ven basis vanguard does the same thing, but five basis points. If you invested 10,000, they would basically take five dollars up for your out per year. An active fund would take 10 100 or 150. Thank you for that. Cash is still flowing towards these etfs. Street smart is up next. 60 minutes left to the closing bell, i am Stephanie Bell in for trish regan. Stephanie ruhle in for trish regan. Andentral banks in china europe signal additional stimulus measures. Bill daley defends the relationship between the new york fed and banks. We will be speaking to the journalist who brought those Goldman Sachs tapes to life. Street smart starts right now