Republicans turned up the heat on president obama passes immigration order. Ted cruz said if this president can oppose his own Immigration Law unilaterally, he can as well. Hes book on fox news. For four to 5 Million People here illegally, he is promising to print up and give work authorizations. He is in the job of counterfeiting immigration papers. There is no Legal Authority to do what he is doing. The oil cartel meets this thursday and is it is considered one of the most important meetings in a decade. Oil prices now down 27 this year. Crude is 75. Upcoming government rules may be tougher than expected. Plus, joan fleiss drone flights would be limited. Ofcould affect a lot industry. York. Ights game with new a bomb is thrown. A spectacular, onehanded grab. Twitter blew up. Look at that. That is a beauty. Some of the greatest film ever seen. Back in d. C. , some more serious news. It tells a flurry of meetings. How close are they at all, the two sides, to a deal . We are told progress has been made, important progress according with according to western diplomats theyre what we have seen over the last 48 hours is a flurry of talks between Foreign Ministers and all the involved countries between iran, china, and looks like with hours left before the deadline, they are not in a position to strike the deal. The big question is, how far apart are they . There is some optimism and also concern as president barack anma waited out in interview. It is too early to tell. The good news is, the interim definitely stopped chirons Nuclear Program from being advanced. So now, the question is, can we get to a new a more permanent deal. The gas are still significant. And they still remain. Included is how quickly u. S. And european allies would ratchet that sanctions and how far iran would be willing to go in cutting down its centrifuges. No progress actually locking through those right now. What happens if a deal cannot be reached . What would the political implications be . Severe concern is that would be an endgame. If a deal is not reached, concern is sanctions would be ratcheted up and iran would have pursuer option than to nuclearization. The u. S. Is pushing to make that a year or later. There is concern the talks fall through and hardliners in the country would be able to close the gap. From the iran side is the concern is sanctions fair theyre working hard to ratchet. Hose sanctions back if they continue, the iranian economy is in big trouble. Breaking news now that the Nuclear Talks with iran are likely headed to an extension in march of next year. Is this lively expected if they could not come to a deal now . There was going to be an extension. You mentioned the political ramifications of something falling through. Both sides were aware there would be an extension if they could not lock in an agreement. Lawmakers are very wary about the extension today. If they extend it, what does that mean . What does the u. S. Have to do in particular . Lawmakers are watching this very closely. There are republicans and democrats concerned with the administrations view on this. Thank you. Has been one week exactly since the blockbuster 66 allerganell between deal between allergan and actavis. It could generate more than 23 billion dollars. A lot of questions still remain. What will regulators say about this . With me is jeff mccracken. What i start with is the 219 share her ice price. It really sees let seems like people were concerned. They beat the rival bid by a lot of money. They see a question lot of costcutting going on. They got out ahead of the inversion. They did that last year. He said the sales are up. At this just to keep valued bay here . Theou could say that amid buzz and the height. If you pay a few dollars per holder. He largest they get a percentage of his proceeds and a percentage of his profit. I always feel like paying more it is not necessarily the right way to go. It is almost like they were trying to be the estimate. Best they would do. Valiant does not have a reputation. Their antiscience. They do not focus on r d. What is the attitude toward a company like that . Life this is very textbook. For many months, people like myself and others assumed valiant was going to win. They played up the signed card that valiant was the enemy of science. Ceos is, doctors, people in the profession, they were opposed to what was going on. It seems like the ceo realized he was going to lose the company and his goal was to find the highest price. That was the main thing. Everybody but valiant. Are there any kind of agreements now about r d and what would what they will have on Research Going forward. Argue, they have incredible share price so it pays to invest in r d. Much asl not spend as allergan did on their budget, but they will deftly pay more, so i am curious what kind of. Greement they spend a lot more than someone else. There are a lot of tangled webs here. She sold a lot to valiant. Ironically, activists almost sold itself last year. Those two sides almost came together. In the pharmaceutical space, it is always a matter of who will be the final dance partner. All right. Thank you so much. Stay with us. At the top of the 9 00 hour, we will be joined exclusively by ceo and the ceo of allergan for a deep dive into the merger. Speaking about mergers and ,cquisitions that were not aereo filed for bankruptcy protection. Set its tv service violated copyright law. It considered selling aereo before filing for bankruptcy. The threat of litigation chased away any potential buyers. You will hear more tomorrow because i will sit down with them for its lucid interview and a look back at the journey that was area appeared of all the retailers, none is putting more energy into black friday than walmart. Got a look of the companys strategy with the head this is the head of merchandising for walmart. Aroundtes took a walk the store and saw a number of heads from different departments. We heard from the head of merchandising in the head of u. S. Is this foreign, who spoke at the event. They are putting the emphasis not just on black friday, but on black friday week as well. Precepts they say are driving their Holiday Season. They first of all say, and walmarts own words, we are obsessing over our customers. They secondly say we remember our store associates are number one. And number three, we are having fun. That is what walmart said. Those are the three different precepts they say are driving the holiday. Ok, that sounds all nice and good. What about them practice . Less one of the executives i spoke with is the head of general merchandise, things like nings as an electronic things like electronics. This is what he said. Im really focused on being able to serve a customer. Cleanliness, all kinds of things. The investments we are making well be involved. Peak hours, every single register will be opened in its stores. That is something customers apparently complained about. There are deals, something the customers are facing as well, and there are a lot of them. He mentioned the stocking issue. That is something that plagued walmart in the past, that they. Ave not had the personnel theyre trying to address that. And theyre making sure the flow in stores on black friday is a little better. All right. Get ready. Julie, thank you so much. Lower oil prices might be helping the u. S. Consumer, but it is creating havoc at opec. Will be the cartels next move . Plus, the best airports in north america and the worst. Will you be traveling through one of them over the holidays . We will be back. This might be the most important meeting in decades of Oil Prices Trading seven dollars per barrel. Analysts are split evenly over whether the group will cut production, cut their out for output. This is important for the global economy. Me,ndustry insider joins company and founder of citizens for energy. It looks like we are split 5050. Rid you fall . Classes there will be any cut at all, i think it would be at best symbolic. A longtermtake view, and they always have. Theyre actually not competing with anyone except themselves for what the longterm future looks like. They know that hundred dollar oil has repressed global growth. They know they have a lot of oil for the future. They take the longterm view. Why would we cut oil to get prices up to restrain Economic Growth . Lets are lets promote Economic Growth. The consequence of that will be an increase in demand for oil and everything will be fine at the end of the day because they have a Sovereign Wealth Fund that can sustain social responsibilities for a long time they are not worried like venezuela or iran. What if it is only a symbolic move . I hear forecasts of another 1015 dollars in crude. I do not think so. I do not see the world as that week. An oilfield is in continuous unless you drill new wells. You pull back on drilling, your sir bus goes away quickly. We will see reduction in drilling rigs in the u. S. , no question, if the prices remain where they are today. That immediately affects the decline rate and the shale formations where you have decline rates at 50 per year here it you will see a lot of market. E off the speaking of, i read a report this morning that had oil at 75, crude at 75, 10 u. S. Shale formations are now no longer profitable in texas. Right. You will see a rapid cutback in capital spending, which will feed a decline rating. Particularly among small operators who do not have the staying power and on our our operating largely on borrowed money, they cannot sustain the pace of drilling on borrowed money with the falling oil price. They will be the first to reduce trilling, which affects out that, which affects oil price theirit so reduce drilling, they will cut back on capital spending, and at what point does this become a scenario where we start to see and their hope on the whole shale oil boom. Some direart to see consequences in the u. S. . I dont think so. Some of the independents will simply stop drilling. They may go from to rigs to one rate. Those are the smaller independents there it they will suffer but i do not think they will go out of his news. Prices forve low very long. By the end of the First Quarter and the beginning of the second quarter, we will see prices rising and Global Demand rising there it there is not much surplus oil out there. I think we will be back in the high 80s by summertime of next year. We will see and we will have you back when that happens. The founder for citizens for affordable energy. Much more ahead, a shape up shake up at samsung. The slump in smartphones tells. Audiences are still hungry for the hunger games and we will see how the movie did in its opening weekend. We will be back. Good morning. I am betty liu. Here is a look at the top company stories in the hour. Windows pcs across the world, used for data collection. Itll has been in use since at least 2008 and affected companiess or small and government. Preparing for a management shakeup. Be replacedit may as the company tries to buy a byiness or profits slumped 4. 5 billion dollars. The changes announced next month thise latest twist as empire is restructured and they. Repare to hand over the empire the third installment in the hunger games movie series one the box office. The years. Against u. S. Opening, bringing in 100 million u. S. Dollars, beating transformers. It fell short of the 150 million bus scored by the two prior films in the series, maybe a little hunger games exhaustion . It is 26 minutes past the hour. Scarlet fu to check. Were about an hour away. Thank you. Time for futures in focus. Copper futures declined last ofk by 3 10 of 1 in terms chinas rate cut and what signals for the chinese economy. Joining me now, why they are so analyst for senior bloomberg intelligence, which unique insights. Ken, futures declined on chinas is rate cut, and yet they are stable. What is the back story . It is interesting with copper. Copper has a guardian angel. They are similar. Copper is down 10 . The Chinese Government, the Strategic Reserve euro, has been alltimepper at an rate. The number theyre talking about is alltime about 67 million where we are today. When do is wondering or do they stop by, have a lot more copper to buy . They have been active in copper in the past. They have been after opportunistic, but never like this year. Everyone is coming out with higher and higher or do they have a lot more copper to buy . They have been active in copper in the past. They have been after opportunistic, but never like this year. Everyone is coming out with higher and higher numbers about what theyre buying. You hear that about the Chinese Government and what it is actually buying. The story of china being inactive buyer in copper, how do you trade in the middle . I take the approach toward metals and trading in general. From a technical perspective, if you look at the market, it is definitely under pressure. It has yet to really have the bottom fall out below the 290 level. We have been watching a very welldefined balance performing right around the 295 level. The concerning factor about this is how that 290 know from the prints. If you want to point out, i look at the trend, acceptance and rejection at certain levels. When smelters do not want a material, they raise this price. In ice has skyrocketed 43 in the last month. There is plenty of copper in the market. All right. The fundamental and technical perspective here. Ken hoffman of bloomberg intelligence. This you for joining us morning. We are back on the markets once again in 30 minutes. All right. Scarlet on the markets. Much more ahead. 3 billion and counting. Of a fine a regulator got from banks and mobile banks. Who is the next target . He is joined in the next hour. Plus, millions taken to the skies this week. Which airports will make it a breeze and which will make it a downright miserable experience. For Holiday Travel season kicks off this letter this week. 40 Million People are expected to travel from home. That makes flying holiday heaven or hell . Shelby has the answers from bloomberg air travel frustration index. She joins us now from Vancouver International airport. I have got to ask, did vancouver make it to the top, or stay at the bottom . Here. Are in heaven Vancouver International airport was the least frustrating airport in the u. S. And canada for travelers, not only because of an excellent travel rating, but because testers say they love things like shopping and restaurant and the terminal layout. Were told this is one of the busier times in the morning and people are flying through security. Not much to complain about in vancouver. That is a far cry from laguardia, where we started yesterday. That is the most frustrating airport to fly out of and into, because not only are flights and there are cancellations, but if you go to the central terminal, there is nothing to do their nothing more frustrating than being stuck in that terminal with no great places to eat, nowhere to shop. It is a dump and holiday passengers could be sitting there for hours. Laguardia was the most frustrating airport by far. People at laguardia will not be happy you call them a dump. Terminals. He that is what the index as. So what goes into determining all of this, these rankings . Team tookrg rankings tons of information from all the airports in canada. They rank things according to amenities and travel time, what its like to get to that airport, Public Transportation options. Again, you had to take a cabinet is pretty expensive. A lot of factors went into this. Some of the least frustrating portland,ncludes austin, calgary, and phoenix. A couple canadian airports. Most frustrating, all three new york airports. Top five. You have got laguardia, jfk. In addition come you have washington dulles, chicago. Not surprising, but it is now bloombergccording to rankings that those are the most frustrating airports. Ok. I do not even know if some of us can even avoid those airports, but there we go. I know. Hard to avoid. Exactly. There are vancouver. In the meantime, a lot is going on. Brewing a showdown between bank of america and some investors. The Shareholder Group calling on the bank to split the chairman and ceo brian moynihan. Others are it is proxy time. Thei move follows a decision to give moynahan the job of chairman that was bypassing a 2009 proposal requiring the title to be held by different people. Bill cohen joins us now on the phone with more. We see the filings almost every single time, when proxy season starts. It is the same faithbased organization that has filed similar kinds of proxy fights with other companies. At a mores coming significant time for bank of america . What is interesting is of course that not so long ago, two or three years ago, Brian Moynihans role of chairman and ceo was split. They did have the kind of Corporate Governance these faithbased organizations would like. Most good Corporate Governance people think this is the right thing to do. But brian wanted to be more like jamie dimon and Lloyd Blankfein and james gorman at Morgan Stanley, both chairman and ceo. He wanted that as well and the board gave it to him and now there is a complaint. That, he should be paid like them, right . If the stock had performed as well, bank of america has had , major league mortgage related problems that all the banks have. Maybe he will be paid like that at one point, but he is at least chairman and ceo now. Some people do not like that. A good argument that he wants to be reflected in the same way, as you say, would , major league mortgage inet goldman or jamie dimon at jpmorgan, and ease in even wells fargo . Yes, it is a club, and these guys like to have egos and be considered in similar ways. Sometimes, real leadership calls them doing things shareholders would appreciate, like separating the roles. That could be considered genuine, admirable leadership on wall street, of which there is very little these days. I think this will be a great opportunity and would have been a great opportunity for bank of america to show a clear path for other banks but theyre not going to do that. Back to stories that just kind of showed you the breakdown not just within banks, but between banks and regulators. At had some of the hearings senate, and you also had Elizabeth Warren and joe manchin coming out with the wall street journal oped. Inet goldman or jamie dimon at jpmorgan, and easewe have soy well. Then will be joining us in the next hour. Is this guy one of the most hated men on wall street right now . I do not know. I think he has done a very admirable job in keeping the banks feet to the fire, using laws and new york lost to do that. He is probably not that much hated on wall street. Probably feared. He does have a lot of power and is willing to use it. But i think he has done an admirable job. He has. Out, he has extracted fines from yellow and he talks about invoking the chartered, standard given he felt the pace was too slow in negotiations there it though these are foreign banks, he seems to be bringing the domain of new york regulation around not just wall street, but also around the foreign banks. Their operation to be regulated by new york. Will that be a good thing . Less of course. If the banking operations are and better regulated and fairly regulated, that is goods that is good for consumers or customers or anybody who does his best with these banks. It keeps them from bringing down financial systems. But does it undermine new york as a place where capital isws freely and that it welcoming to Global Business . No. Centerk has remained the of wall street and will remain that way for the foreseeable future. Nothing ben will do will change that. All right. Thank you so much. Great to talk to you. The conversation does not stop here. We will hear from the top regulator in the next hour. Also still ahead, is this the end of the dream . Aereo filed for bankruptcy. An exclusive interview with the founder and ceo tomorrow. Heard areay, we filed for bankruptcy, just five months after the Supreme Court ruled it violated u. S. Copyright law. Told bloomberg he had actually considered selling the company or at least the intellectual Property Rights before the bankruptcy move. Joining me now is a former executive with amd and now the of another website. Great to see you this monday morning. Nice to see you as well. Onwhen you saw the news friday, did you say, no surprise . As no surprise, i told you so, it is what i expected. Their plan never made sense to me. Pay for broadcast retransmission. It is clear in the copyright law. Hound how it ended up in court is the on me. They just never had a plan after that. What consumer is going to pay for broadcast, a monthly fee just to get broadcast signals . Press apparently, they did have people willing. Not many. Just tens of thousands. It never really captured anyones attention. We will air an interview tomorrow, but he has said, at the very least, aereo really brought the whole idea of video streaming to the forefront, right . Wouldnt a company like yours want to thank them and say, at least they brought the conversation forward . Not in the slightest. That is a bunch of bunk. Rochus has extended the conversation. It started all of this video streaming way before aereo did. Aereo is basically stealing content. That is the bottom line. They took broadcasting signals and tried to charge a subscription fee for it. Are you glad they filed for chapter 11 . Yes. It is a law you have to pay for content. It is the basic tenets of copyright law that you need to pay for content. Paper retransmission and area would not do it. So very unlikely we would see another type of area company, . I do not think so. I do not know what they will do with their assets. I do not know who will buy it. There are players out there like amazon and roca. Theyre delivering content to consumers outside of paying a monthly subscription. Programmers can choose and through those devices, xbox and sony playstation. That is here and they are not taking anybodys content unless theyre paying for it or getting permission. And those are available and they have had the option before aereo came on board. Could be argued if it was not for area or at least some of the rattling of cages we have seen, them say,ght not see i will now stream much of my content online . No. Hbo says they will do this and immediately less movements. Everybody followed let hbo did. It had nothing to do with area. It is my firm belief what would make hbo move . Netflix. Willing it does, hbo counter. Hbo is trying to counteract netflix. So everyone is reacting to each other and nobody is reacting to area. I think it is a nonentity and it made a lot of press. They should be out looking for right now. Companies are doing that. On another front, an Interesting Development in cable television. Barred from releasing any kind of contractual it is actually programming rights. How much they pay for content. It is ridiculous. Private agreements between private companies. , ieven weigh in on that is think, overstepping bounds. On the same token, charlie at dish has finally settled at turner. Is back online, as well as the cartoon network. What do you say about that . It is more of the same. They want more money. Charlie does not want to pay more money and charge his subscribers more money. He realizes consumers have an option. Outside of satellite cable, they have an option. As long as they have internet, they could get a roca box roku box, amazon fire. I would be concerned if i were the Cable Provider right now. Thing they provide is the internet. That is where the question comes and that is where everything will fall about net neutrality. How are you immersed going to get the internet . For the most are, Cable Companies do right now. They have built the infrastructure and built it right into the home. Now i will use others but i will still use internet. Beholden you are still to the cable company. That is true. On netflix, i finally finished five seasons of breaking bad. Bryan cranston is the best. Great to see you, executive Vice President of popcorn flicks. Com. We have an exclusive interview with the ceo on in the loop tomorrow morning. The best catch ever. Grab hasded touchdown twitter in awe. We will play it again and again. It gets better every time. However world . I dont think he stepped out either. That may be the best catch ive ever seen. Here is a look at our bloomberg radar. The t owns the Largest Telecom network in the u. K. Have fallen by 4. 5 million. In end of the year shaken up and managing structure may involve hundreds of jobs. Man members of parliament want to break it up. Theyre frustrated with the antitrust probe. Investigators are trying to determine if google promotes its own services at the expense of rivals. Countless conversations will begin today with one question did you see that catch . Last night, the cowboys versus giants game. And eli manning throws there is a spectacular onehanded catch for a touchdown. People could not believe what they saw. Twitter blew up afterwards. Incredible. Simply one of the greatest grabs in a game ive ever seen. The giants receiver, victor cruz, said, best catch ive ever seen. I just witnessed the greatest catch ever, possibly. Be celebrating. Bloomberg television is on the markets. Equity futures are slightly higher. We begin the day again at record and it out. E s p on the markets again in 30 minutes there it a behindthescenes look at the 66 billion deal for allergan. The ceos is of both Companies Join me exclusively. Bus, the next target. He is about to leave next year, so we take a look at his career and what is next on the radar. Youre watching in the loop live. Welcome back. Higher this morning, the s p and the dow. All time highs. Nuclear talks with iran have been extended. An interim deal aimed at Building Nuclear weapons. They will try to reach a political deal. Can reach aident we deal that is verifiable and ensure that iran does not have capacity. I think it is the right thing to do. The shooter in the Brown Ferguson shooting will be indicted. Toaking about iran, a way split oil prices. An initial offer by valiant and shareholder bill ackerman in april. . Ho will buy allergan week itsnnouncing last new ceo had finally won out. Price tag at the time of the agreement was 66 and dollars. With me now, exclusively, the pencil behind the deal is a longterm ceo of allergan. Saunders, the ceo of activists. Thank you for joining me ceo of actavis. Thank you for joining me. The price tag paid for allergan, your stock prices have gone up since then. It seems like investors are pretty happy about this. Valiant came out and said there is no way to be that. A great company. Allergan has as been one of the Top Performing companies in our sector. 15 years of leading the assetsreat, long leading. Great people and a Great Innovation pipeline. When you put that together strategically with actavis, you create a powerhouse. It is so rare in a deal when you have companies of this size coming together. How do you account her and almost 20 premium . Custom we look at all the financial metrics, we are very disappointed. This has doubledigit return on investment capital. Doubledigit accretion to the bottom line, accretion to the top line, and we get asked this all the longduration assets where we overlap in three of the four categories. Strategically strong fit and it creates a great the future. I see you nodding your head. You wanted to sell to anybody but valiant. If you are to sell, it was going to be to anybody else valiant. Not really. All along, our big our objective was, how do we advance the value of the company . We are having a fantastic year. Growth be the best sales year in our history. The last quarter, q3 18 . Earnings per sale growth in the full year is almost 30 . Firing at all cylinders request you are doing fine on your own. We were determined we really created our value. The prime objective was to prevent valiant from stealing at a ridiculously low price. We added 13 billion of stockholder value this year. The moment arrived to sit down and talk, and we think we arrived at a price which was a fair price for allergan stockholders, but also a good price for actavis stockholders. On, wetiations moved were pleased to take 41 of the consideration in stock. Our stockholders will have the ability to get the increase of things as we do pretty well as activist absorbs us into their great, combined company. You feel any pressure to do a big mega deal . Year, this at the has been the year of the big farmer murdered the farmer merger. Did you feel the pressure . No. Allergan was firing on all cylinders and people were doing a great job at allergan to make sure they could have business objectives. We had one of the best quarters we have ever had. We grew 83 third quarter. We have a business that is really growing, really strong, great diversity and longevity, and what happened here, this is a company that should not have them for sale. It is one of the best performing companies in our industry. When we had an opportunity to create something truly special and put these companies see other, we acted we had to act on it. It is a testament to the fact about our future is so strong together. Who else did you talk to during the process . Theres a lot of speculation. Who did you talk to . We never comment on rumors. Maybe there will be a statute of limitation. Movie. That is right. Versionthe modern day of five variants at the gate. This is what it sounded like. It was close to seven months. I have been ceo for a long time. This was always an attractive company. Were waves of rumors in the past dozen years of Different Companies that might have been interested. Abouta lot of rumors companies we might have thought because we have a strong nouns she. There are a lot of interesting cameos for the story. Important thing was, we finally got took place where we have great value creation. And then i have known each other since the moment arrives to come and talk. We could have literally gone to a Stockholder Meeting as well. Have been ay would White Knuckle experience, but i was seriously aching about it. How do you feel about bill ackerman . He is still a large the largest stockholder in the company. We will see what he decides to do. He is already talking to saunders about the next step. He stated publicly he would be happy to be a shareholder. I met with him last week and we had a terrific meeting. They already know this story well. His own, but ire thought it was a positive meeting. He wanted to understand the so he could see the enduring growth. I think we put on a good case likely do it all investors. I thought the meeting was incredibly positive. What will survive the transition . I think they are clearly synergies. 1,000,000,003bout synergies. 500 million financial synergies. That means we will have to do some cutting. These are two growing businesses. We have had a lot of experience and i have had a lot of experience of taking cost out of his this while you continue to grow. What has to be at the top of our list is not to do anything to impede the top line growth we have in both companies as we bring them together. But we have got overlap. You mentioned what, 1500 layoffs will the as a result . Take those very seriously. Were in a hiring slowdown in both companies to ensure we do what is right for the existing employee base, to try to create as many opnings over the course of the next few months. Then, we will have to make tough decisions. Carell do that with great and treatable with dignity and respect. Have been the ceo since 1998. What is the next step . Was literally in new york city exactly this time last week doing an opening bell interview. The dust is still settling. I have done a lot of Different Things in my career and im just aching about that. The shortterm, my focus is, how to transition the company . We like to say this is like a formula one race car. We like to hand over the car and the keys to brent and his team so they can drive really fast. Within the speed limit. [laughter] he is still the ceo. When i go to germany, there is a notion. That is right. I find it funny, by the way, that in germany, on a side note, they are such rule driven people, except when it comes to being on the road. Anyway, thank you so much for joining us. As yield allergan. Thank you Brett Saunders as well for joining me. Atnk you, gentlemen here much more ahead, our countdown to the opening bell with our top stories. We will have that story in a moment. Some breaking news. The New York Times is reporting chuck hagel will be resigning, stepping down as early as today. National security concerns are only higher. Inther defense secretary that position. Midterm elections, the democrats lost their senate majority. Again, chuck hagel expected to step down as soon as today. We will bring you more of the headlines as soon as they cross the wires. Lets get back to bring you the most important stories you need to know. Not as big as hunger games move the prior two hunger game movies. A mocking jay is the first of two film finale. When they spread it out like that, that is a bad sign. I actually have read all the books. I saw the first movie. I am an authority. I was not that impressed with the first movie and got decent reviews. By the time this one rolls around, it will not bring me to the theater like the others. Maybe not care for lions gate, which produces this film, they pretty much put all their eggs into this one basket, the young adult basket. It clearly paid off for them with the first two sounds, we may be seeing the first hit of exhaustion here. What i do want to see is dumb and dumber to. I live with a bunch of guys. Jeff daniels has an incredible range. Number five, we have got the Shareholders Group that has come out before. They want bank of america to separate the roles of chairman and eeo for brian monahan, according to wall street journal. He only recently became the chairman and ceo and now they want to take it away from him. That is basically better Corporate Governance. Group based in new jersey and back in 2009, the shareholders of the bank said they did not want the shareholders together, but they do not seem to be referencing that directly. A basic essay it is a bad idea and that person should not be the same. Up the glad you brought resolution. Bank of america has defended the action by saying the resolution was passed in a different era and that things have changed. It does not exactly apply. Im not sure if that argument there is merit. If the nuns one better Corporate Governance, they will do a lot more. You have got to start somewhere. Number four, commercial drones. According to the wall street journal, a federal administration that requires operating drones to have a license and they can only operate during daylight hours. I say a to this. I have seen drones all over the place and i worry about the private seed can i have seen them when i am out on the water, for instance. I have seen them all over the place. I have not been on the lookout, but it does remind me, wasnt it a few days ago when airliners were landing and they were in the air, getting in the way of the landing . I always think of homeland whenever i think about drones. The looking straight into the camera and the drones. This is a big deal for various industries. You can imagine, it is a countless number of industries. Everywhere from hollywood to the energy industry, to airlines. It is all about defense and all about surveillance. It is not all about that. It is some about surveillance. But theyre also proposing they will be regulated by size. Some are in the joan industry upset about that because the small ones you see are more commercially viable. Much more ahead. Samsung has got to do something about falling smartphone sales. A shakeup may be in the works. President obama will not leave home without it. We will tell you what it is. Welcome back. Lets get back to bringing you the most important stories you need to know before the bell. Chief markets correspondent scarlet fu is joining me. Number three, Samsung Electronics weighing a leadership shakeup. The wall street journal is reporting this. It is not a surprise. We have been documenting the slide here in samsung. Last year, it seemed like they can do no wrong and they put samsung in their place. Now it seems they are outsmarted by competition. Coceos of three samsung. That is already a recipe for disaster. You have three people china move this company, which has a lot more than mobile phones. Reason isf the because they needed to wall off. He Ship Division one of the things that stood out to me in the story is how demand forjudged the the phones. They order 20 more than the last rollout. Just did notnd, it materialize. Cutting the number of smart phones available. Blackberry got a free advertisement for one of its longterm customers. The president walked off moments later to return to the white house . He had forgotten his blackberry. A nice free advertisement from the president. Bloomberg television is on the markets. We will check where futures have settled ahead of the open. Equity futures, we are starting off at a record high yet again. The stock the top stories in the opening bell our next. Are next. Textbook back. The number one story today, welcome back. In a one story today, bond issuance five times in the past seven years, causing a fort shortfall of supply. Basically, bottom line is that we are going to continue to see yields low, very low here on bonds, despite all of this discussion about the fed raising Interest Rates and the end of qe. Continueyield will because demand is so high and the amount that is out there, the supply, still quite low. Click the search for yield continues and a lot of people in this up where the committee might start to be a problem if everyone runs for the exit at the same time. Is there a way to get out and not have a collapse in prices thereg yields higher . Are still demand. If you thought the fed was done, they are done as a but there are a couple of other small standards that will eat up that demand in the form in the form of potentially the ecb and the bank of japan. As stocks start trading, lets bring in someone who can talk about this very topic, adam parker, the chief u. S. Strategist at Morgan Stanley. What do you think about the 400 billion bond mismatch . Corrects bond yields stay low and that is pretty good for equity and the economy, so we remain pretty bullish on our outlook. Its a timing issue. If you look up five or 10 years, you get more worried about the u. S. Trajectory. [opening bell] but what would make you come in here on the top of the cycle . The Credit Sector looks pretty benign. Companies have pushed out there financial pushed out their financial obligations several years. Now, we are headed in a pretty good direction. Wrapped up this interview with the ceos of allegan and activist. 66 alien dollars deal a 6 billion deal and they paid a premium. A 66 alien dollar deal and they pay a premium. What does it say about the market when you have these crazy transactions echoplex on average, the small cap, about 3 of companies receiving offer every 10 or 12 months. We are much closer closer to a trough that a peek. Past coupleof the of years have made people think that m a is fluffier than it is. You can improve over time as the economy, but i dont see us anywhere near frothy. But we are at a potential record overall for the year. I think it is deals versus dollars. You have to look at other behaviors, too. Capital suspending is pretty suppressed. Inventory is pretty muted. Thanere are more concerned reasons to be bullish in other words, a lot of things that talk prompt people to to down the market. I look at it from the opposite way. An economic standpoint, you could say my numbers cannot get to crazy. That is good because the expansion last longer, and a chance for earnings decline to go down. Inyou put too many costs place, too much m a with big costs and risks, then you get nervous with earnings. If you dont put that in place, it then its a slowgrowing economy. Once you get the fed raising Interest Rates, which is supposed to happen sometime next year, right . I dont know. We will get to that. That is not the Morgan Stanley call. But keep going. If they do, isnt it a signal that i year later is an we get the market top . Isnt that how history bears out . Some otherirst raise market goes up because the growth is still Strong Enough to offset the multiple that comes from that. The question will be will it be stronger for the fed to raise yet go out chief economist doesnt think so. He still making the call for 2016. Theyve always done it pretty consistently and you could argue given the size of the balance sheet. You have to be pretty sanguine. At sign about whether you are sanguine for the holidays. It doesnt sound like you are pretty optimistic on the economy for some gas prices have fallen a little bit, which ellis are saying is a bit of a tailwind. It is a big one. Underweight and now we are overweight discretionary. Petitions,ch directs very negative sentiment, probably lower inventory, easier calms, and you have this tax break in the form of lower gas. It sets up a trade in the next two to three weeks. Weve been hearing from retailers that traffic trends are still negative. Part of the Holiday Season will depend on turning that traffic around, but also getting more transactions. Will people be spending that much more this Holiday Season . Are analysts wrote a fiveyear outlook on the consumer. We think it will be bifurcated. We want to focus on the millenials. The 20between nineyearold gap will be the biggest portion of the economy this next year the 2029yearold gap will be the biggest portion of the economy this next year. When it comes to retail, you Like Companies that are offering an integrated experience. I know you cannot talk specifically about individual companies, but amazon. Com for instance, which is an online retailer, was in their talk that they were going to open up a brickandmortar . Pecksniff, they were supposed to do it ahead of the holidays. I have not seen yes, they were supposed to do it out of the holidays. I have not seen it yet. You have to find companies that are beating numbers. If you look in the last couple of months, there are some companies that have beaten and the reward is high. Trying to isolate those areas so they can have confidence and beat the numbers. Adam, good to see you. And thanks to scarlett and to julie for joining me. Much more ahead, then lofty then lofty has become ben law sky has become an International Force in regulating. Willming up tomorrow, we sit down exclusively with area kanojia asd ceo chet the Company Files for chapter 11 on friday. To separate the chairman and ceo roles or not . That is the question from one group on bank of america to split brian monahans title. Moynihans title. New yorks top regulator, ben lawsky has extracted more than 3 billion in global find from banks and called for the firing of many executives. Last week, he settled with mitsubishi and eight sanctions case. Joins a longokyo list of financial giants that sky has taken action against, including bmp barry bnp parit suisse obama, credit suisse, and others. Feared man inst the regular link. Is that accurate . Points of itself is a vital to be feared. I dont think so. I dont like to be feared. We want to do our business accurately and aggressively, but when people are not playing by the rules, when companies are not playing by the rules, its to everyones benefit for us to enforce those rules. Especially in light of washington, right . Weve just gone through several hearings and easy where senators, including senator carl levin has come down hard on the new york fed and saying they are not regulating the banks enough and not doing their job. No regulators is perfect. I would not say we are perfect either. We happen to be him to be a smaller, more nimble regular. If nu a relatively new. Yes, we were mandated by and you are relatively new. Yes, we were mandated by governor cuomo. I want to talk about the jing the bank of japan and mitsubishi settlement. You want the Japanese Bank to relocate their antiMoney LaunderingCompliance Division from japan, i believe is where it is, to new york. Why did you want to do that . We wanted to get a better glimpse, have better oversight of that function. And the bank was very willing to do this. They wanted to put a lot of the problems theyve had in the past behind them, have it here where we could watch it closely and we could work with them to hopefully make it best in class. We actually did something similar with bnp. It was not part of the formal agreement. It was informally, but as we put that together, we said we would like to move our compliance to new york where you can get a good look at it and hopefully help us approve it. We did it there, which is what give us the added to do it in japan as well. Dave us the idea to do it in japan as well. Others,you do this with bringing them to new york . Every bank is structured differently. I would not say should be the precedent. But we try to work with all of our banks to get better and to bring that level of compliance and playing by the rules and having an even playing field, and you really enforce it in the right way. Critics might say that it might be undermining new yorks status as welcoming business, allowing capital to flow freely, that the new York Financial regulator is going to have this much power over our global bank, that it could be detrimental to business here. What do you say to that . I think it is the opposite. I hope it will enhance business globally was up again, to have strong oversight and to give that ourconfidence largest, most farreaching banks are all playing by the set the same set of rules, and trying to make sure that the Money Laundering that none of us wants happening isnt happening. It will be good for the system and for new york. I think of it as a very positive thing. You seem like such a nice guy. Why have you had to come down so hard on standard chartered, for instance, threatening to revoke their charter, saying executives should be fired, extracting as you mention, 3 billion in fines . We take Money Laundering very seriously. And when banks dont do what they are supposed to do to make sure it doesnt happen, we take that very seriously. It is not just a banking matter. It is a Money Laundering terrorismnarco dealing matter. To be very serious. Did you get your message across . We spent a lot of time thinking about accountability in the system. If it is just to extract a fine here or there and then go back to duping doing business, then people feel it is just the business g the cost of doing business. One thing we have focused on is individual accountability for someone thing you like to say is if you have a large bank and you cannot find someone or someones who actually did that conduct, somethings wrong. That is when we started focusing on individuals being held accountable when the flak when the facts are clear. You have to be really careful. You are likely to be sitting down next year. Fact, you and attorney general eric holder. What is next for you . Do you want to work on wall goeet . Are you looking to into the private sector . Attorney general holder has announced he is leaving. I have not. We are very busy and very focused on my work right now. Its not a job that you do forever, but i have not made any decisions about the future at all. Interested iny Financial Services regulation and i think it could serve a really important do you feel you have much more work to do . We have a lot of work to do. We are very busy. Thank you so much, ben lawsky. To media,all street what are the trends that we can look for in 24 2015 . And what happened in the to some of those deals we had been waiting on . Joined by stephanie ruhle. We had been work waiting for these megamergers to go through. I dont have any of those answers for you, but i think my two guests today well. I will be sitting down with the media banker who covers media and technology. All of that talk of consolidation, we still that discovery sitting out there. And all of these networks that have not merged. What happened . Time warner and fox did not work out. We all thought, what is next to go what is next . We will talk to which bressler, the chief operating officer of i heart media. Now they are formerly of clear channel, are they take over target . Could that be the next big media story . Were all going to watch. Thank you so much. He will be back in two minutes. Flex as we have reported, a big change at the pentagon. Defense secretary chuck hagel stepping down. He has been at the pentagon for less than two years and is a former senator from nebraska and vietnam veteran, and the only republican on president Obamas National Security team. For more, i want to bring in peter cook. This is the first highprofile resignations is the midterm elections. And its a surprise, in the sense that chuck hagel has been a visible presence at the pentagon and the last couple of weeks, particularly with the rise of the Islamic State. Just last week, he was talking to charlie rose about defense issues in interview that was seen here on bloomberg. But Senior DefenseOfficials Say this has been an a result of a series of ongoing conversations between the president and chuck hagel in the past couple of weeks and that it was a mutual decision. They are pushing back on the notion that he was being pushed back pushed out. This is someone who has always been a little bit, if you will, not in the inner circle in this Obama Administration. First of all, hes a republican. As you mentioned, the only republican cap name member. Yet a tough confirmation process on capitol hill with some of his fellow republicans challenging him more than democrats. Chuck hagel has never been completely comfortable in this position, at least that is my sentiment from covering the pentagon and his trip to hawaii a few weeks back. Timing is a surprise and it will be difficult to get some unconfirmed going forward. This will be a tough job in an in the remaining two years. Not only with the Islamic State thread and the other challenges, but you have budget concerns for the next person as well. As you say, it will be difficult to get anyone else confirmed, but any idea of a successor . Mentionedhree names most immediately with three people who were considered or at least on the list when bob gates stepped down, and that is, jack reed, democratic senator from rhode island, a former armory guy army guy himself. Hes on the Armed Services committee. Ashton carter, never to in the department, deputy secretary of defense. He stepped down a couple of months ago. He was considered for the top job. And you have Michele Flournoy as well. She ran policy in the Obama Administration at the pentagon, undersecretary for policy. She has always been considered in particular for her smarts on dealing with the issues going forward. Thank you so much, peter cook. We will gethat comments from the president at 11 00 a. M. In less than 90 minutes. Stay here with Bloomberg Television for that. That does it for in the loop today. Interview, the ceo says we are in a regulatory gnome and planned. What does the future hold for him . What does the to the conversation at 8 00 a. M. Tomorrow dont miss the conversation with him at 8 00 a. M. Tomorrow. It is 56 past the hour, which means limber television is on the markets. Im matt miller. Bloomberg television is on the markets. Im matt miller. Gains across the board, not huge one. The dow jones, really unchanged. The s p up just about 3. 5 points. The nasdaq gaining half a percent at 4733. Take a look at treasuries as well. For the first time in three days, you see treasury yields rising and the 10year yield is up 2. 33. Sticking with bonds, investors are watching the riskiest corporate debt carefully. Why . Some analysts see them flashing a warning signal for stocks, and possibly even for emerging markets. Break down all the details on how the junk debt can be a signal for stocks. I thought everybody wanted any kind of debt, no matter how much they will pay up. That is why it is so surprising that bonds on a price bases have lost about 2 if you strip out the coupons. Theyve got theyve lost even if youed about the strip out the benchmarks that have supported them the whole year. People have really pulled back from highyield debt, which is exactly to your point, surprising. There is still stimulus going on. They are a very accommodative centralbank both here and elsewhere. Legs and massive demand, right . Investors want and massive demand, by . Investors want yields. And that is why you see a price drop, especially with the junkie us of junk. That and people are getting nervous about the Interest Rate hikes. Could happen in the next decade at some point, right . [laughter] you made a good point. It might happen in 2024. The big presumption is that it will happen at some point next year, possibly as soon as midyear. And people are trying to position ahead of that. They are trying to say if the fed does hike rates, high yield bonds have been one of the biggest is not the biggest beneficiary from the fed stimulus program. If you hike rates, and then try to it out of highyield bonds, it will be harder. The biggest banks pull back their Balance Sheets that were previously used for debt trading. Ask i see these takeovers i see these takeovers right now and i guess i figured what was feeling that was easy financing. Will companies that have no , are they not going to be able to issue bonds you go you will still see them issue bonds, but its a much more bifurcated market. Energy high yields and have lost about 2 this month alone. It has been a hardhit area because of the drop in oil prices. Before thishas been month and last month, one of the biggest issuers out there. The percentage of highenergy debt has increased dramatically for sub this has been one of the reasons for the decline. Some of the other issuers had declined, but there was a week in october where issuance really plunged. Im sorry, but you are not allowed to use the term bifurcated in this segment. Only on bloomberg surveillance and we are at least two extensions away from that here. [laughter] and we are on the markets again in 30 minutes. Market makers is next. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Like a shakeup at the pentagon. Defense a shakeup at the pentagon. Defense secretary chuck hagel is stepping down. Google is out with its global that with goldman is its Global Economic forecast and we will be speaking to their chief economist. And we will see what was what is happening with all of the media consolidation will expecting in the wake of comcast and charter cable. Where is the . Where is it