After a secret Diplomatic Mission freed them from prison in north korea. Kenneth bayh and Matthew Miller had been sentenced to years of hard labor for what north korea called hostile acts. James klepper negotiated their release and a oneday trip to north korea. He bears no ill will to them. He would not have wished the two years upon himself. Nobody does in a labor camp. He looks back and he wants good to come out of all this for everyone involved. Kenneth bayh is a missionary north korea said Matthew Miller was trying to exacerbate the human rights situation. The United States is trying to figure out if it killed her wonder the leader of the Islamic State. Meeting. E 30 leaders previously states there was killed in a u. S. Airstrike in 2006. New revelations about General Motors faulty ignition switches gm ordered half a million replacements which is almost two months before telling federal safety investigations that i had a problem. Have a problem. It led to a recall of more than 2 million vehicles and have been linked to 30 debts. Aboutscotland, how catalonia, spain . The referendum over the independence of catalonia urges the area around barcelona overwhelmingly voted to secede from spain. The majority was stunning. It was a symbolic vote and one that the Spanish Government called a farce. Spains highest court ruled that the referendum was a legal. Catalonia makes up about 20 of spains economy. There are a number of issues with the Spanish Government including taxation. Those of the top headlines. Lets do a dated check. A data check. Tough Economic Data in greece and italy. Crude oil is on a rebound off the challenging moment last week. There we are at the dow at a record high. Stunning equity movements and we will talk on that in a moment. We took the remember you up there in case the president we took the we put the yuan up there in case the president go shopping. Theres a depreciation of the yen. Its a great complex attaining. You never know whether that movement is coming from an actual underlying Economic News or marcus are just reacting. Robert feldman said its not abinomics being successful. Is it really the strong driver or the weaker yen that is the driver . We have this history of the chinese and japanese leadership meeting. This is historic. Where is the debate there . Havee temperatures seem to gone down over the last couple of months but it will be a point of contention. This will be the first meeting for the two prime ministers since they came to power. The president is in beijing and he and World Leaders are there amid the worry of geopolitics. The reality is that china is a giant but a fragile emergingmarket area the disparities with america are great. And this is howardlindesn joshua wright. Let me bring up the number which everybody gets in economy 101. 7000 which used to be 3000. That is china per capita income. Americans 53,000. Theres is a vast difference between the two countries. There is still a wide gap. Sometimes people in america get concerned if we are going to have to catch up to china. The reality is that china is in a race to get rich before it gets old. When you look at the fundamentals and demographics, the u. S. Still has a good position. Linsen get 20,000 alibaba shares . Thanks for getting off the airplane. Do you trust chinese accounting . Alliek with alabama babler and baidu, they might with ali baba and baidu, they are printing so much cash so its not a concern. , america isnvestor where i invest most and thats where i can get my best idea so i try to keep it off the radar. Starting at 7000 per capita for china, where do you stand on the idea of the inevitable regression in china, that this burst of growth will end soon . I dont think it will happen just yet. Had chinaso pessimists, people concerned about a hard landing in china. Whatever you might feel about the private companies, the public numbers look suspect. There have been concerns that china will not be able to maintain this growth rate. So for this year, they have managed to show they will be more graceful than people had worried. As the president meets in about how think his bench is on china experts. Timothy geithner studied mandarin in college and new people in the communist party versus jack lew who heads up the Treasury Department who was an inhouse policy guy about some with the policy back and forth with china. That will be a huge distinction this time around. I dont know what the consistency has been. I feel like the pivot happened when obama as a trip plan and in between i dont know what is going on. Scarlet so has live this. I am here every day. The image of the leadership japanna and j pan shaking as a significant. Its extraordinary. You are right, this is the one handshake that everyone looked ahead to. When you look at the maritime aggression of china over the last four or five years, they have proven really good at rationing up pressure and then pulling back. Its like controlling smog over beijing. Climate change is part of this trip as well. Remember california when we were growing up . We fixed it. They can fix it when they need to buy shutting down the factories and telling the locals to take a week off. Tell me about the midterm elections. How does it change the view forward . The president goes over there essentially defeated. It weakens his hand to negotiate with partners abroad. The question is whether or not he can get the trade authority. In the room ist whether the u. S. Can manage to affect some of the pivot by building its own counterbalance coalition through a trade agreement and closer economic integration in the east. Youre referring to the tpt . But it does not include china but creates a counterbalance on the u. S. Side rather than letting china push people around. Trade is a huge issue for the republicans. They say the way you get it done is give the President Authority but give him authority to negotiate. What are the odds that they will do that . Its the Tea Party Republicans versus establishment and business friendly republicans. The establishment has really come back and thats why they did so well in this election. They were able to push aside and sideline the more extreme voices and get candidates that were more moderate and can represent the establishment interests. Whether that will carry through to december policy moves, we will see. You can say its a slower news day but percolating is the Islamic State and the bombing over there. On a monday, ukraine was not a big deal but friday, those headlines were stunning. Putin and see of mr. Mr. Obama actually made. We dont know how to deal with lowlevel conflicts that are constantly being ratcheted up and down. We do with crises but we dont know how to deal with the intermittent. Can we summarize and say nothing will happen in beijing . Maybe Nothing Official will be announced. There we are with a first look at china and the president visiting. It was gorgeous when he landed there. Coming up next hour, we will aig you a heads up the nonexecutive chairman steve miller is known as the turnaround kid. Our twitter question of the day how do you fix Big Box Retail . This is bloomberg surveillance. Good monday morning, bloomberg surveillance. Stephen schwarzman donated to the new york public library. Atwill be with us today 10 00 on market makers. This is bloomberg surveillance. I had a chance to speak recently cinch andsent tobias left of it. We looked into europe waiting for thanks to heal. The euro is an economy more dependent on bank credit and Capital Markets. That has always been a big problem for europe. Now that we are through the stress tests, maybe the banks. Shedding assets. To thele give loans nonprofit sector, they have it down on a yearoveryear basis for 28 months in a row and have been contracting their Balance Sheets and in when he to boost them up to get the velocity of money up i get lending activity and growth activity started. I may not have always agreed on alan greenspan, one thing he said that struck me is brilliant. We talk about liquidity and he said its a difficult thing to measure but its more about confidence. You can have all this cash sitting around earning a negative return that somebody would like to put into a more productive fashion but it doesnt because they dont have the confidence. Let me get your attention. Since we did that discussion a week ago, the german 10 year yield is down to. 803. I feel like i keep reading about that europeans rely more on credit and Capital Markets. I think its a way to avoid talking about Consumer Confidence and spending. Is extra credit going to fix the problem europe . Youve got to clean up the Banking System. We are fortunate in the u. S. That we have problems and fiscal policy but we cleaned up the banks fairly quickly. We had tarp and credible stress tests in 2009. It took the europeans years to get there. They only just got unified banking regulations. We go into next year with an extraordinary Interest Rate structure that allows howard lindesn and others to borrow money at a low rate. How does an economist adapt your u. S. View given the disinflation and low rates we see in europe . The u. S. Is actually a relatively closed economy. A lot of it comes back to what is going on in our own house. Of our economy is still u. S. Consumption which has not changed. You talk about cleaning up the Banking System so amen, but we are having the same problem there as here. You can push as much as you want on the banks and not get the response you want. There is nothing to buy. My son has netflix and as iphone, theres nothing to buy and thats universal. With products, theres not that much interesting stuff to buy anymore for consumers. They can get by on less. They can buy a cappuccino and some food on their iphone wireless. How do you drive an economy like that . Do you realize how sheltered howard lindzons life is . They are not buying stuff. We mightve had more empathy of you said coffee instead of cappuccino. This was discussed by tobias left of us, bearing season showed that companies can bolster their profits and cost cuts but Revenue Growth remains a challenge. Cost cuts have left companies with stronger Balance Sheets and lots of cash but not necessarily doing much with that. From thek the money fed and given to Large Companies and they are driving profit by beating up the component company. Even qualcomm was down but the other day. The fed is now apple, google, mi. Me xiao theirers are buying phones. I did not need to go out to spend on a new phone. What am i to buy . Offs take the cappuccino the table but theres not that much to buy. You look at the American Economy to next year, and there is a weight of europe to its. Arent we still linked to them . Not as much as some people are afraid of. Consumers are not spending on houses so they can afford these Cheaper Products because we have incredible Product Innovation the u. S. But we dont have the Income Growth that will support buying major assets. Do you see wage growth . I know you are not in the business of making calls but is the vector of income rising . It has started to inch up but its hard to tell. The last jobs report would indicate its not. The key is that we dont see a trend. It started to pick up in the Third Quarter but we will have to see two or three months of that sustained before the fed even considers it. We have to wait for the actual numbers to come out. Our guest hosts for the hour our morning must read is coming up as the democrats lose control of the senate but is it because they did not flaunt what they accomplished . Thats coming up. Good morning, everyone, futures are up to and this is lumbar surveillance. Here is the morning must read. We are still sorting through the midterm elections and what it means with republicans regaining control of the senate and the entire congress. This is from clive cook i thought this was great because there were a couple of victories that the democrats could have taken that they chose to take up that mantle but they chose to avoid it and therefore had nothing to offer to voters. These crowds show up in kentucky for Elizabeth Warren who turned out to be the best speaker they had. Bill clinton was also popular , theyand every candidate did not seize on those. Howard, you are canadian. I bring that up because you are able to vote as a u. S. Citizen now and you chose not to because none of the candidates from either party spoke to you. Yeah, they spake but i dont know what they speak of. From the mayor on down, its been chaos and local government to not understanding republican versus democrat and what they stand for. I found myself not wanting to hurt the country. Did they say anything in regards to the economy or the industry of finance and technology . Californias tough. Many people like jerry brown but i cannot convince myself of that. Im keeping my laws simple. We dont need as many guns and i am prowomens choices. I cannot find a candidate that says that. You live on the left coast but how is the ethos of liberal democrats doing . Do the liberal democrats retreat or advance forward after this midterm debacle . They need some leadership to move forward. I live on coronado which is a good part of america in the sense that we have the navy seals and the military and parades. We have wars but not warmongering. Lets support the troops so its not about starting another war. Is a Elizabeth Warren going to be the new leader or Hillary Clinton . I feel like you should go with whoever gets people screaming and Elizabeth Warren seemed to do that. So your president ial ticket is Chris Christie and Elizabeth Warren . Its whoever jet gets dragged to the left by Elizabeth Warren. Shes got an education. Stands fored c something and people respond to that. We will be right back on bloomberg surveillance. We will discuss the state of the consumer. Good morning, everyone. The president is in beijing. Lets get terror top headlines new revelations about faulty General Motors ignition switches as gm ordered half a million replacements almost two months ago before telling federal safety investigators about the problem. The faulty switches are linked to 30 debts and have led to the recall of more than 2 million vehicles. Asket share in russia profits are in line with estimates. Hockey league was sponsored and organized a music festival. Carlsberg is feeling the pain from a weakening ruble. Baba get set for an onslaught of Online Shopping as china prepares to mark singles day, november 11, which can be represented by 4 ones. Cyber 2. 5 bigger than monday in america. It processed 254 million orders worth almost 6 billion and its aiming for more than 8 billion this year. Singles day . When you celebrate being single and buy things for yourself. What will you get this year . [laughter] from the Chinese Consumer to the the u. S. Consumer, has added over 200,000 jobs per month. 2. 90 perices are gallon the backdrop is encouraging but is it enough to get the consumer to spend this Holiday Season. Josh wright is with us. Talk about the u. S. Consumer as if its one entity but its not. You got the higher income consumer and then everyone else. It is a tale of two countries were using more and more products and services being designed precisely for people whove got a lot of income and ability to spend. What is happening at the bottom . Those people are not seeing the Income Growth and dont have the assets that they used to because many of them suffered damage the financial crisis and the housing crisis. We have seen this in retail results. You got bloomingdales and the dollar store and target in the middle. Intarget is getting squeezed the other middlemarket restaurants as well are getting squeezed. There is just not that support. Thats where you get back to the wage question. What do you see in temporary employment . An average of 230 thousand jobs per month for the last year but what is the nature of those jobs . What is the quality of the jobs and what are the hours and the wage . That has not been moving. Zon is also with this. I think youve got an incredibly rich opinion of bricks and mortar. We hear every stereotype and everybody talking their book at this table on bricks and mortar. What will actually happen . 16i have two kids, 15 and and i am 17. So i have three kids. At apple, we are getting bored. The latest Product Launch was not enough to go into the store for the first time and by. The incremental changes are high so who wants to go shopping and parking stinks. Bricks and mortar is not dead but it will be reimagined. Os are talking about bonab that started out selling pants is now has six stores in new york. The pants only fit one leg of mine. The retail will be reimagined because real estate has to be reimagined as well. Youll not just go see a prada store. They can afford the rent but nobody is buying their stuff. They will get tailored to differently on the one percent. Box,ther than go to a big will you look at something that has more foot traffic . On fifth to into a gap avenue. Major retailer furniture place. I asked them for questions and the answer was no to all four questions. Its all in the internet and the store is a fraud. Its not a fraud, its an experience. [laugh