Transcripts For BLOOMBERG Bloomberg Surveillance 20141118

The European Central banks in physic and not fix the economy on its own but ready to take more steps to help. Here is ecb president mario draghi. It is necessary to further longss risks of too periods of inflation. The governing council is unanimous in using additional instruments within its mandate. One of those unconventional measures is buying government bonds. That is something that has not been mentioned before, at least not officially. His comments come less of three weeks before the next ecb forecast, which is likely to show weaker outlook for growth and inflation. In jerusalem, and attack described as the deadliest in years. Palestinians armed with guns, knives, and axes killed four israelis in a synagogue. At least six more people were wounded. Police still be two attackers. Jimmy netanyahu says the country will respond with an iron fist. Toyota unveiled a new car that emits only water vapor. It is toyotas bid to compete with teslas electric car. Only a few hundred will be sold. Toyota once to limit to those located near Hydrogen Fueling stations. Missouri is preparing for more violence in the shooting of an unarmed black teenager. Michael browns death led to weeks of protest in ferguson, missouri. Sometime this month, a grand jury will decide whether to indict the white Police Officer who shot him. Governor nixon has declared a state of emergency and activated the National Guard in preparation. Officials say they will Cancel School the day the decision is announced. Theyre asking people to treat as a major storm event and stay home. This are our top headlines morning. Let look at stocks, bonds, currencies and commodities. Futures at negative two. Yields have done nothing since time began. The euro advances. Crude oil trading 75, 76. On to the next screen. A 117 on yen. Above 1200. S back brent crude still under 80. How bad is the pain in japan . Here is the animal spirit of japan. Nominal gdp. The collapse in 2008. Ugly, ugly, improving. His is good news for abe i still feel like every time we talk about this, we talk about japan as if there is no secular problem that they have, the demographics of the country and the problems they have getting women into the workforce. We keep looking at fiscal policy of Monetary Policy of forgetting theres a cultural policy that has to change their there. Getting out of home depot without multiple purchases. They have earnings. They have been doing better than good. They have been doing better than good. Earnings per share at 1. 13 one dollar 15 cents, analysts have predicted 1. 13. Yearoveryear sales, stores open at least a year, up 5. 8 in the u. S. Were not seeing a lot of retailers with those numbers. Overall, sales up 5. 2 , which is also better than had been estimated. Life is good. I got out of home depot and spent less than 100 earlier this month. How did you do that . A list and i left. With the way m a is, maybe we have home depot meeting with walmart. I think it is a good merger. Walmart and home depot . Maybe not. I think theyre going smaller, not bigger. That to japan. It is widely expected to be nymex needs a reaffirmation abenomics needs a reformation. Our guest host this morning is with Rbc Capital Markets. Also on the phone, Carl Weinberg who has been way, way out front on the struggles of japan. Carl, frame the import of the moment. How serious is the moment for the people of japan . From an Economic Policy point of view, this is a critical juncture. Japan needs people, it doesnt need more debt or need to print more money. It needs people and it cannot get them. Printing money is just bad policy. May win the election in control of the government again, but he may lose the economy as a consequence. Explained the importance of japan in the modern world. We know it is the secondlargest economy. We learned all of this in school, but things have changed with china. Why should we care about japan this morning . We care about japan because a lot of investors, a lot of people listening to your program may have investment in japan, particularly in japanese stocks. The japanese stock and it has been doing well. Is surged last nine in response to this news, although, it did so in a little bit yesterday in news the condo me economy contracted. That news will dominate. We have a bubble. Betweent want to fly the clouds because there are storms lurking on the other side. Right now we have a bubble going nikkei on optimism and policy and that optimism, in my opinion, is misplaced the economy can deliver what people are hoping it will. You say japan to its people. Is all of this just whistling past a specific graveyard that japan is not interested in immigration . Thats right. Japan is absolutely doomed by the fact its population is shrinking. You dont have to be an economist to know if your economy is increasingly fewer people every year, you can expect those people that are going to demand increasingly less stuff and they will produce increasingly less stuff. In our lifetime, weve only seen economies growing with rising populations and this is the first time were confronted with a major economy with a declining population. Carl, on the currency and currency debasement, how we can the yen get . A technicians can tie you better story on that than i can, but the final medals are in place for the yenta continued to weaken. Deal the offset is japanese pools of money are going to be pulling money home. This is a medium time story. That will offset some of the negative factors on the yen and break its decline. I think we want to look for a cheaper yen. Carl weinberg, thank you for your expertise. Were thrilled to bring in morsels sunshine. It is not that you are on the japan watch, but i think it is simple to say everybody is intertwined the hydrocarbons. Where does japan look to, indonesia . One of the things were concerned about with japan, and you mentioned sliding crude, this underscores a bearish sentiment. Japan is an importer of crude. All of the negative news about japan will reinforce very bare sentiment in the argument. Do you affirm the new mediocrity . I took a vacation. The world has changed. Abenomics isnt working. Is that the new mediocre . Im curious, when he talked about this Global Demand problem that youre discussing, where is the biggest demand problem right now when it comes to oil . One of the biggest problem sibleys with north american production, we dont have the need for imports coming into this country. Oecd, europe,g at japan. Chinas numbers have recently been a bit better, but we have about one Million Barrels of crude overhang right now in the markets. That is the fundamental problem, why we are in lower prices. Here froml, youre sunshine partners were you advise on mergers. Those cares about the phrase car weinberg used, a sucker hole in the clouds. Is that what you see right now . It is the new term of art. Sector hold. Hole. Ker do you see that . I think the United States is in a strong recovery mode. Japan is not. Parts of europe are not. I think it depends. Lets get a shameless plug. What you hope to accomplish at your conference. Every year,d of her because we love having you speak, we bring all of the m a folks, lawyers, bankers, private equity folks and at the end of the year a usually issue a paper and we talk about you issued tomatoes and they throw them at you. Where are we now . This is the year that m a for real. For year at some point it is going to stall a little bit because a lot of what is driving it at the last remnants thank you. We will get to those. What was it, 100 billion of deals yesterday . Unbelievable. But what does it all mean . It means nothing. Today, our twitter question i know i could not. Tweet us. This is what we are going to be talking about later in the 7 00 hour. Good morning, bloomberg surveillance. This guy is interesting. If you dont know him, you should. Hes from the fourth Congressional District in oklahoma, chickasaw indian and he is a really smart, interesting republican. He will join us in our next hour. Really looking forward to speaking to dr. Cold this morning. We say good morning. I am tom keene with her and in greeley and Brendan Greeley and julie hyman is in for scarlet fu. Activists are one of the 10 largest pharmaceuticals and the company are going to buy elegant for 60 billion and with that botox. And they will stop growing, cut costs, and focus on it salesforce. Marshall sonenshine, tom and i agree about this. I feel like when we see a couple , i always wonder whether it means anything. Is a possible to draw a thread between those two and say it means anything about the markets at all . Twoes, i think you can draw threads. Number one, cheaper stuff. Activist is about generic drugs, taking costs out of rmb, out of sales so you can smell so more drugs. Halliburton is about cheaper oil, meaning fewer projects need to cut costs. The second thread is both of these jets are about expensive stocks. Can you see the botox, is it leaking. Youre holding up for now. Clearly, you take it for migraines. Talks i noticed the price of stock. Yesterday was like a typical bubble m a reaction to halliburton. We finally reached the stupid season . Tough ona little halliburton because baker hughes is a prize and stupid season would be tough on actavis. Where you saw that, last week i was here and we were talking about the rumor about hasbro buying the movie studio. Dreamworks. Remarks was up quickly 15 and hasbro went down 5 . I said, i think hasbro shareholders are saying because all. I think there is a lot of that right now. You have to pay up to get these companies. What are people paying with . As much stock as humanly possible. Lets bring up a quote. Actavis does it make stuff, it buys stuff and sells it. One of the things with the planes they have is theyre going to drop 400 million in r d. How long can they keep cutting on r d it is financial engineering. At the moment, youre seeing the buying companies because it is hard to about yourself of new opportunities for patent expirations. It actavis makes generics. They were built on the foundation of summit elses patent is expiring, we can rush in there with a cheaper product. Just to clarify, they dont do r d for new stuff. They dont. You cant blame them because you have to come up with a hit him a little bit like dreamworks. But if you can makes up that competes on price, taking costs out of the hospital chain. Going back to connecting the deals we have seen. This looks like it will be another record year for deals. It is. We see when the market rises on days when you get a lot of takeovers announced, well, it is because people are optimistic. But in many of these cases, are they not coming from a position of strength . Arent they doing this defensively or because their core business isnt growing . Yes, julie, youre right about that. Lets take the baker hughes situation. Both of those companies are playing defense right now. For exactly the reason helima croft was giving. Wehave less demand for oil, have an oversupply, u. S. Is going energy independent. Guess what . Fewer options. Where is the Tipping Point on oil . We heard from Stephen Short is 72 a barrel. Does halliburton and baker hughes signal a behavioral change . I would watch for the opec meeting in terms of potentially where there is a floor. Are you going to it . I wish. It is on thanksgiving day. Helima croft has a higher floor and oil for saudi arabia, 100 a barrel. I look atdo, because the defense spending. So many of the projections on saudi arabia and the budget do not include defense spending because it is not probably disposed. That is 31 of their budget. I think break evens are much higher in saudi. Lets get back on script. What does halliburton mean for the oil business from your economic purview . In terms of the notion that the low oil price. Is this going to become the new normal . I guess i take a bit of a contrarian view because i do believe there is phenomenal support for higher prices out there from the middle east, but right away, im looking for this opec meeting. If you go into it opec meeting with one million barrel cut potentially, you could be up 10. Im sure they want the price to be higher. I want my salary to be higher. But do they have the negotiating power to do it . Compared to 1986 whenever 7 million extra barrels out there in capacity, we are at 3 Million Barrels before this our ins, im going to get you to tell me what this means for exxon mobil. She always goes to the opec in is still from 35,000 feet. Isnt that where we live at 6 00 in the morning . What does it mean the u. S. Is producing a lot of fracking and opec is meeting on thanksgiving . I dont know. Conspiracy theory. Were going to come back with helima croft, and of course, listen to her carefully on opec. In the next hour, the discussion on the middle east will stop look for that on radio and television in our next hour. We say good morning to you from new york city. It is bloomberg surveillance. Good morning, bloomberg surveillance. I am tom keene with Brendan Greeley and scarlet fu is off today, we have julie hyman. My morning mustread comes from lucy marcus. She wrote more generally about investing in the public sphere and infrastructure, but also the private sphere she writes goes back to financial engineering. We were just talking about this. You said this is a totally legitimate strategy, which makes sense for a company. Overall, as this worry you about the industry . It doesnt worry me about pharma because i think we have had an extremely level of investment in pharma. I think right now the consolidation is necessary to take some cost out. There are other industries we are underinvested. I suddenly think in infrastructure, this country is simply missed the boat. We had an opportunity to build and we didnt. How do we fix it . I dont think you can because politically it is not popular to build. The earlier point, if these companies are just buying other Companies Rather than investing , doesnt that signal a lack of confidence in Economic Growth . I think you to take a piece by piece. Situation,ughes there isnt as much as for oil rigs now. They have to cut back. These two companies did not really want to get together. But they had to. When you start 2015, what is on income statement . Is there a lot of fat to cut . In corporate america, theres always that to cut. I was teaching yesterday and we had this discussion with ted shell and we were saying, you see Large Public Companies always have a little too much fat. I think less of today than what have been the case a decade ago because activism has worked. We are ready have our quote of the day. , i think when bridges fall again, you will see fixes. Im thrilled you think that is quoteworthy. That is sort of depressing. Do we have to get to that point . Ande get a d infrastructure when we did not rebuild. Is opec going to make it . With 1986 upon them, are they going to learn . I think many market dissidents would say, no cut. But i think of weak growth with the Iran Nuclear Discussions coming up there it is, helima croft on opec. Nuclear talks, we will talk about that and opec. Good morning, bloomberg surveillance. Lets get to our top headlines. Hong kongs government starting to clear away barriers during the seven weeks of prodemocracy protests. Authorities met little resistance from the demonstrators who knew about the move ahead of time, but there has been no action to clear barricades in a more volatile protest zone. Sony is hoping for a new growth and turning its eye to a superhero for help. The company says it expects new spiderman movies to drive growth as much as 36 in its pictures unit in the next three years. Sony is pushing the idea of growth in its entertainment business or than your after rejecting the push to spin a part of that unit. A recordsetting deal for baseball star don carlos stanton, the 25 year old center deal withs 1320 59 the miami marlins. It is the most lucrative deal ever for an american athlete and averages 25 million per season. R more than 154,000 a game he led the National League this season with 37 home runs. I have not done the math to see how much that is per home run. Unbelievable. Remember how we were having his discussion about how baseball was becoming a niche sport . Your son is playing baseball . Our youngest son is the outfielder for a city college. The oldest is a harvard large school in the middle guy is at usc. We love city college because he owns that turf. These are tying into media deals. Are they goingn to learn about extending it out five years, tenures, 13 years . And yet the sport continues to prosper. Well, i guess it does. Im worried about baseball. I thought this year was a real Tipping Point of disinterest. What we have, data check . Lets take a look. Shinzo abe saying, give me another chance. Future saying, we have been burned before. Nymex crude ticking up a hair. Conveniently, were talking about oil today. Will be talks between iran, america, and europe with a selfimposed deadline of november 24. Minimal Common Ground. Helima croft is with us with Rbc Capital Markets. Has theeverybody question of, why are these talks important to america . It is the big question of, can you get a final settlement on the iraniannuclear issues . I think this is very important. The notion there is no Common Ground i mean, in the last year, significant, ground has been reached. There are some big hurdles remaining. What is the biggest hurdle . Sanctions. Can you pull off the yuan sanctions, how quickly can the u. S. Sections be removed . Also what kind of Nuclear Architecture iran should have. The white house once a deal. Before tew before the new co of course. Once you have Mitch Mcconnell Senate Majority leader, the transfer new sanctions is really on the table. Over the summer we saw estimates of whether a joe kennedy reached by the 24th whether a deal can be reached by the 24th. Where is yours . 35 . And the iranopec Nuclear Negotiations are tied together. I think if you get a deal on iran, that puts the pressure on opec will stop people will start to say, oh, my gosh, there are one Million Barrels off the market because of sanctions. Could it we look at a situation where you have partial sanctions . No. I think that will be very challenging. If you waver the loan on u. S. Measures because congress is not going to repeal them or you will European Companies be willing to go back in . Will he have normalization of trade relations with waivers alone . I think it will be very challenging. Set this up, sunnishia, ageless multicentury antagonism between them, to the saudi support iran in this or do they support us in this . I think the saudis are watching this with horror. The idea we could cut a deal with the iranians that would leave iran was so much Nuclear Architecture in place, that is the saudis worst nightmare. That is why theyre talking about having her own nuclear program. That is what potentially is frightening. If we get a deal, do they drive the price of oil to 40 a barrel . There are some of the conspiracy theories, but that is why we put the piece out on the saudi budget. At the end of the day, the saudis have high physical demands themselves. I will pull this up from your Research Note at Rbc Capital Markets you read her Research Notes . Not only did i read it, i highlighted it because i hang on her every word. Did you use the surveillance highlighter . You wanted . You want it . Im fascinated how high you pegged the price of oil they need. They need it worth of 100 a barrel to balance the budget. For you, this is about defense spending. Im curis about the possibility of defense activity. The saudis have always been reluctant to fight their own wars. That is the amazing thing about saudi arabia, they biased they buy the biggest and best toys. We did see in the case of bahrain, they did send their tanks of the causeway. They see isis on a tear, problems in yemen, problem still in the eastern province. This is not a great time for prices to be lower. That is why dont believe at the end of the day that would really risk a strategy of trying to stick it to iran or russia if they had domestic concerns. It is not just outside of the Reporters Committee is also potentially within their borders. Were not just talking about external defense budget, but a Domestic Defense budget, right . What is the oil price where it is right now due to them domestically . One thing about king abdullah, his been very concerned about keeping the population happy. So he does spend on education and health, significantly, he does not want his people in the streets. It becomes the question of, do you have to go into the red . At youth up looking unemployment. This longterm problem from the arab spring is a huge problem for saudi arabia. For the entire middle east. Saudi arabia, at least they have cash. Helima croft, help Marshall Sonenshine. You have an outlier call of Higher Oil Prices . Ultimately, i think the middle east provides significant floor for oil prices. I am a higher end of the spectrum. Can you and Rbc Capital Markets go long on oil given the technical construction of those shattered charts . Well halliburton. It becomes a question of, do you believe the middle east is going to be smooth sailing . Everyone focuses on north america. We have like a one million barrel supply overhang. The question is, does libya come back . Libya is a huge swing factor. It basically went up to one Million Barrels over the summer. If that falls back, the market begins a debt balance. Limit ask your question. Let me cut to the chase. Furthermore halliburtonbaker hughes out there . Oil is where it is, do you expect chevron or i say texaco. Texaco was an oil from a few years ago with a red star. There are box in which you can read about things that happened before you were born. Really . I love that tricia your with song, underneath the texaco star. The deals in many cases have happened. To take costigned out of increase the efficiency for a market that was bracing itself, in my judgment, for a change on the downside. I think bakerhalliburton is yet another one on the oil Services Side where the expectations by and corporate disappearances, we will see less trolling because we have a softer market. Participants, we will see less because we have a softer market. You may be right because it would be the first time wall street is wrong, but i think that is our Financial Markets are. What about the drillers themselves . Are they going to get swallowed up . Wildcat ors are always wild. Sometimes they get swallowed up and sometimes they dont. I think you will see the and automation of wildcatters. You will see continued consolidations and services and equipment sector. Does keystone matter . Are you fired up about keystone or suggest politics . Is politics. With the republicans winning in the senate, that increases the likelihood of congressional action on keystone. Anont believe it is initiative the Obama Administration still was to deal with because of this became terminal agenda. I think of something they would like to kick down the can. This is great. That was a tom keene of fiber heard one. If i ever heard one. Story is different, dont let your eyes glaze over. Today single best chart after the break. Also, our twitter question of the day good morning, bloomberg surveillance. Brendan greeley and julie hyman with me today. It is one of the biggest drivers of this bull market, and it will continue that as share buybacks as american big business puts its cash to use a returning it to shareholders. I spoke recently with citigroups tobias left could pitch. This idea of 2007 was actually the absolute peak for buybacks in u. S. 2011, 2012, 2013 have been record doubles first record levels for spending. Numbersthe u. S. , the have been mid to high syntel digits for capex. Durable goods orders have stayed relatively strong. Were seeing more and more interest in doing this particularly as you get broaching 80 . There it is, you wonder where the mystery is the next year. Marshall sonenshine is with us. Are they inventing cash to do m a or using cash to do m a . First of all, theres a lot of cash being used to do m a but the most important currency for him in a right now is stock. I think the fact of the matter is, companies are expensive so the acquirer once do you stock. You see the two deals that just happened yesterday, both are substantially stock of the 100 billion, how much was gross . 20 of 100 billion . Probably a good number. We call that funny money. You did not ask me what percentage of halliburtonbaker was stock, 76 . Allergan, 40 . The fact of the matter is, dont like me could not win eligible because he wasnt paying cash. That was not a hostile bid recent, take my cash, your board of directors are asleep, i have a solution. He was say,. Take my stock, and you could not sell it. Is or anywhere you can see theyre using more by investing . I see a lot of good investing by corporate america. Its be honest, theres a lot of cash on the sidelines. If it sits too long on the sidelines, carl icahn has a point, given back to her shareholders. People needed to pay tuitions. That brings us to Marshall Sonenshine, you have three children in college. He recently went through the entire power of the market to figure out how best to take care of them. Take a look at our single best chart today what is happening is, College Students were applicants are shopping around for the best tuition deals they can get and applying for more colleges. The number of colleges theyre applying to is a little silly in one sense and rational and another because the truth of the matter is, how muddy businesses can you name where demand is incredible he robust or decades and they dont build more capacity . The truth of the matter is, many, many colleges have raised tremendous amounts of money yale a 20 on billions, but they dont build more seats. When the croft offspring goes to college, it is going to be 100,000 per year. My husband is a professor, so hopefully we get a tuition break. Oh, please. Amen. I am a professor at columbia and iwatch youre talking about yale not adding capacity. Yale is like apple, they want to restrict capacity in a certain way. We saw the capacity raise in forprofit colleges. The ceo of our endowment at columbia, i have him talk to my class about what the hell goes on inside the money side of universities. One of my students asked, why is it they have the her education price index, which is always a point or two above the Consumer Price index . Why have they decided universities are entitled to their own inflation index . He thought for a moment and said, ive got to tell you, it is an arms race out there. They have to raise money and bill because that is what they do. They want the sat scores to go up every year and endowment to go up every year and the does anything change . Spend 100,000 to send our kids to college . If not, what will change that trajectory . Were talking about eight or 10 or 20 colleges and then all the rest. They are the ones that need to fill seats. We need to redefine our own understanding and appreciation of great universities. I made a little bit of a quick before because you asked about baseball. Our youngest son was recruited. He loves it. I tell you, for 2500 dollars a semester, he gets a firstrate education they got for Public Education. I think to myself, thank god theres a Public Education system. We need it. Amen. There is lack of investment at the state level in the state universities. We will be talking about that in the next hour with dr. Catherine . Cohen. Ryn twitter question of the morning i dont the guy to get a job at my own firm if i applied. Good morning, keystone front and center. He is from oklahoma, between norman and a chroma city am a tom cole will join us. City, tom cole will join us. This is bloomberg surveillance. Brendan greeley and julie hyman with this, scarlet fu is rumored to return at some point. Top headlines. Thehe trustee unwinding ponzi scheme says more than 10 has and recovered so far, nearly 16 of the lost principle. To offshore funds that funneled money to the fraud have just agreed to pay a total of 497 million to end lawsuits. Madoff is serving a 150 year sentence in a prison in north carolina. Snapchat. It is joining forces with Payment Company square so users can send cash to each other. The new feature is called snap cash and will be available to users 18 or older with a debit card. The deal gives square access to snapchat users who and where than 100 million disappearing steps a day. Noble Energy Investment today. The Worlds Largest amateur retailer is by no 165 megawatt wind farm in texas. This brings the number of wind projects ikea owns to nine. They planned to invest early 2 billion in wind and solar power by the end of next year. Really . Some Assembly Required . You had not told anybody. We need some video footage of you assembling ikea furniture. Something tells me you dont have a lot of ikea furniture. I have two lawyers to inform me. What do we have . Mervyn king is speaking up and says we need to make a distinction between the eu and the euro area. He spoke to Olivia Sterns at the Global Financial Leadership Conference in naples, florida, joining us this morning with more on her exclusive conversation with the former bank of england governor. Good morning. Plenty to talk to mr. Irvin king about in a very soggy and windy naples, florida. We talked about the stagnation in europe and about the risk of relation of the crisis in ukraine. And the bank of japan is once again back in recession. Among all those potential threats to the Global Economy of a certain mervyn says he is most worried about europe. He says he is very concerned and apple european leaders have a plan. He says the first step for european leaders must be a recognition that a single Monetary Policy is not appropriate for all the countries in europe. Got tobig step for has be within europe. The news to be a clear recognition on the part of the leaders of europe that looking ahead, there will be two different categories members of the European Union. In the euro and those not in the euro area. Those in the euro area will require a degree of coordination, if not explicit fiscal and political union, which is wholly inappropriate for those countries not in the euro area. And then is to be recognized. The idea there is the euro area is the European Union is a dangerous mistake at present and will lead only to bigger troubles down the road. He says the first that must be a reckoning of there are two tiers of economies, two speeds of economy within europe. The former french president herezy is also down naples, florida. I asked mervyn king if he feels the countries domestically or put in place sufficient structural reforms, whether or not this is something mario draghi can solve any says, yes, he things many countries are making structural progress. He does think the ecb and mario draghi will need to do more stop the challenge now is, theyre pushing on a string. Bolivia, greatly appreciate it. , greatly appreciated. We have lots to talk about here. Helima croft with us with rbc capital, final thought as we look at what we have seen this year. A year ago, did you expect the 2014 we saw . Oh, gosh, no. What i been so stunned by is this price rob. I was in the middle east in january. No one was expecting mr. Medic price decline. The fact were sitting dramatic price decline. The fact where were sitting is astonishing. Marshall, the money question this morning, is the fraud back froth back . This is a sure teacher driven m a market to a greater extent than we are seen in a long time. Thank you so much, Marshall Sonenshine and helima croft. Let me do a report. 117 on yen. Stay with us. Another hour of bloomberg surveillance. This is bloomberg surveillance. Japan is in recession. Abe results parliament. He looks for a mandate for the nation. Americas middle east political and Economic Policy is in disarray, and suddenly, most College Classrooms are half full. Colleges need to fill seats. Good morning, everyone. This is bloomberg surveillance. We are live from our World Headquarters in new york. It is tuesday, november 18. Im tom keene, joining me Brendan Greeley, julie hyman is in for scarlet fu today. Lets get to the top headlines. X in japan, Prime Minister shinzo abe is moving to jumpstart an economy that has fallen into recession. Abe has a great 118month delay for an unpopular tax hikes set for next october. A sales tax increase earlier this year is getting some of the blame for japans slumping economy and the primus or is dissolving parliament. Japans nhk network says elections will be held the summer 14th and he bets his liberal Democratic Party will maintain control of japans parliament. That will allow him to proceed with his abenomics program. Meanwhile, the euro economy cannot be fixed on its own, but it is ready to take more steps. He ecb president mario draghi. It is necessary to further address risks of too long period of inflation. The Government Council is unanimous in its commitment to using additional and conventional instruments within this mandate. Unconventional measures by a government bond. That has not been mentioned before. Come weeksmments before the next ecb forecasts, which is likely to show a weaker outlook for growth and inflation. According to police, palestinians armed with guns, knives, and axes killed four israel hes. At least six more people were wounded. Prime minister Benjamin Netanyahu says the country will respond with an iron fist. Told you what i is hoping its new alternative fuel car is at the prius hass been. Only a few hundred will be sold. Toyota wants to live her deliveries. The cost about 58,000. To st. Louis, missouri, governor jay nixon not taking chances. He is preparing for more violence for the shooting of an unarmed black teenager. Death led tos weeks of protest in ferguson, missouri. Sometime this month, a grand jury will decide whether to indict the white Police Officer who shot him. Now missouris governor has to cleared a state of emergency and has activated the National Guard. School be canceled today. Officials are asking people to treated as an major storm event and a stay home. Those are our top headlines this morning. Let me go to the data check now. Goldbach above 1200 is really what we have got, eurodollar 1. 25, brent crude still under 80 a barrel, 79. 26. On japan, we are fortunate to have a special guest. Abe will dissolve a parliament in europe and they are linked, he says, there are no arrows in the quiver. President of is the council of Foreign Relations and only weeks ago met with mr. Abe and mr. Kuroda in japan. Minister is incredibly forceful and he has this ambitious to mess with policy reform and secondly his Foreign Policy is a much more normal japan, you might fall at the first call it the first postworld war ii japan. Amnesty is a parliamentary system, but he has the support of the people, i believe. Why does he need to vote come december . It is a good question. I think they were surprised by the result of this most recent quarter. 9 down is a recession by anybodys calculation, so i think they need to go to hope to regain their initial momentum if they are ever going to move beyond monetary policies. I think what we are seeing is theres only so much central bankers can do. Mario draghi is boxed in as well as kuroda. Correct. At some point, these guys are left out there. You have structural reform and fiscal policy. Structural reforms seems to be what is missing in japan. Fiscal policy is missing in europe. What do they have to do structurally . Both are missing. To some extent, even some of the meskill the fiscal is missing. They can do things like immigration reform, which has been a bridge too far. The one area he has made a little bit of progress in is women in the workplace. You have got to continue to move but i do think he has got to do Something Different with this campaign, which is say not just support me, but here is what im going to do specifically. Last time around, they had a vague mandate. I would say give an explicit mandate. Does he have that ability . There is a risk obviously when you call for election that you will not be successful. The opposition is weak and and really disarray right now, so i think he has got a pretty good chance. He is by far the strongest personality on the japanese political scene. Kuroda, the central bank support. T has ask for those of you on Bloomberg Radio, i will put this out on Bloomberg Radio plus on itunes and android. This is back years and the miracle of japan and the stronger yen and then the little itsybitsy of all been on makes of abenomics. Up they time we pull floorboards on japan, we look at cultural issues, bringing women into the workforce. I think women are leaving japan to get jobs and other continents where they are excepted. These are cultural issues. Can japan change culturally . Historically, yes. Work. Es an awful lot of it does not just happened. That is where someone like promised are able has got to talk this and translate the big hasike Prime Minister abe got to talk this in trend lately big picture. Could the process begin . Absolutely. What if the next big step after women in the workforce culturally, what is the next most important step . I would think immigration would be big to increase the number of workers who are allowed into japan. I think that would send a real signal to the workplace. Give us a great on the trip to china by the president. You speak to this, you have got a great team of advisors, and it on thet to have you show. The president is great, but i see a lot of negativity. I think people are making a little too much about the chinese statement on climate. The idea that theyre going to essentially in another 25 years again to calm down, but we do not know exact way from where, and even that is soft. I do not see that is quite as remarkable as other people do. I think some of the progress on a trade and Technology Front is good, but we will see where we go on electronic policy. How do you do it . I just deal from Richard Haass. Gotgo in there, and i have four briefings on burma, and all the sudden, ima burma expert. A burma expert. Actually you are not, but you can play one on tv. Having read your Foreign Affairs article the unraveling, talk about International Organizations to do with this, yet we have different organizations trying to come to terms with it. I am trying not to sound condescending which is the least and Capable International organization this weeks question. That was a triple negative. I am sorry. Organization do you see least capable of making change . Are you happy . The imf and other situations can actually affect some reform. Brussels . Nato . That nato still exists is impressive and has not done terribly well in a current crisis. Think it is fascinating that you have finland considering joining nato, you have sweden the real question is whether gets capability to be meaningful. I think some of the wto not bad. Resolutiondispute system in the wto, but others are talk shops. The g20, these are talk shops. Ambassador, and the opening credits, mumbling as we show japan and europe linked together. How are kuroda and draghi linked together . All oftary policy out of the monetary tools is the least difficult to play because this is what central bankers can do. With a step harder to deal fiscal and several steps harder to deal with real fundamental reform. Look at europe. The fundamental reform of Labor Mobility labor that is simply a bridge too far, so what you have is mario draghi he is out there peddling furiously. Everybody likes him and admires him, but at the end of the day, he cannot stay here. To come back to your article here in Foreign Affairs, there seems to be a fundamental astament you are expressing, trajectory of default right now. Is that accurate to say . Like is the metaphor i there has been something of a correction, not a collapse or a crash, but a correction and world order. That implies we will go back up we have the possibility, not in every ability. Continued haass will with us. Coming up, the Keystone Pipeline will head to the senate. We will speak with tom cole of oklahoma. Good morning. Good morning, everyone. This matters now to our guest host, Richard Haass, president of the council on Foreign Relations. Considering americas ambition and the middle east and to be direct is a mess. We need a new policy for 2015. What should it be . Part of it is beyond the middle east. Asia, where the president just was, ought to be the area of focus. Increase american presence of a medically, economically, to keep asia on the rails. Asia has been a remarkable threedecade story. We want to keep it that way. Europe is tougher because you have the russian challenge. There we ought to be doing i believe more for ukraine and more for nato. The answer should not always be just to penalize russia. You should strengthen ukraine militarily, strengthen the rest of nato. Steps to weaken European Energy dependence on russia. Middle east is by far the less successful, most problematic part of the world, and there we have simple he got to take steps to try to thwart the momentum of a group with isis. What type of diplomacy is proactive in the middle east the way we see this . Everyone stammers. I do not think there is diplomacy with groups like isis. What you can try to do is shore up some of the neighbors. Do more with turkey. I was there the other day. I am not sold that the turks are prepared to be partners of the United States and slowing down isis. Proactive diplomacy with iran. As bad as the middle east is, you can imagine how much worse it could be in a week if the iranian negotiations came down. You just came back from exit code, hes been a year from abroad,you spent a year but we forget about our neighbors. Has become a great surprise. You had these 95 or 96 areas of Energy Reform that the three major parties all signed on to. Then suddenly, it is as if somebody pulled the thread and you begin to see unraveling on the security front with the awful story of the 43 students who have disappeared, and so far at least the government not being able to find the people behind it. But we know it was for up to politicians and drug lords. You are beginning to see stories of corruption, so all of a sudden this administration, mr. Opinion yet though mr. Nieto, it is the first real crisis where people are saying is this politics as usual, is mexico going backwards . Time, the highly touted government of mexico is facing a crisis. We need another hour interview with Richard Haass about our latin american diplomacy. Coming up, he is on the fourth Congressional District of oklahoma, tom cole is a republican but much more than that. Tom cole on the divide north and south, it would be the Keystone Pipeline. Stay with us. It is bloomberg surveillance. Good morning, everyone. Bloomberg surveillance. I am tom keene. Lets get right to our top headlines, julie hyman. Home depots topping estimates in the third quarter. Closer to a profit of 1. 15 a share. 1. 13. S had estimated shares up 19 since the beginning of the year and 22 in the last 12 months. A recordsetting deal for bass eball stanton. He has agreed to a 325 Million Contract with the miami marlins. It averages 25 million per season, or more than 154,000 a game. Led the National League this season with 37 home runs, unanswered on based on his output. To 676,000k out per homer. Xlote on the Keystone Pipeline will come today. Mary landrieu is pushing for passage of the bill before next months runoff election, but she trails representative bill cassidy. Those are your top headlines. There a good. To politics a little bit north of louisiana. I35, which was highway 77 and another time, cuts northsouth through moore, oklahoma. Tom cole is from the Fourth District. He was born and raised in moore and knows this early the things i go north and south. Keystone pipeline divides washington. Perhaps it should not. Republicans and democrats may be able to find a Common Ground. Congressman, wonderful to have you here with us this morning. Change theice of oil search for a Common Ground . No absolutely not. Oil fluctuates up and down, and for american consumers, pretty good recently. Longterm you have to build the infrastructure and transport the product. Keystone is a critical element in that and is imported in our relationship with our friends to the north. A lot of americans forget we run a pretty important type line called the alaskan pipeline through their territory. If you are going to meet with the house and Senate Leadership today with the president , what would be your single talking point to president obama . Energy security. Frankly, making north America Energy secure. Not only important economically but also it has important geo, strategic implications as well for our country longterm. Congressman,quote, that you gave to Bloomberg News a couple of days ago, which is that the president is trying to bait House Republicans into a fight that risks a government shutdown. Standing on the rotunda, how do you walk around to your colleagues in that building and keep them from taking the bait . [laughter] i think you just reminded what happened only a year ago in the last shutdown. Thinkof people, i mistakingly, let us into a fight where we shut down the government to defund obamacare. It did not do that. Our own numbers limited, the American People i think rightly were upset, and if it had not been for the failed rollout of obamacare, we would have paid a heavy price for that going forward. We should not repeat that same play. We know it does not work. There are other means to oppose the president without shutting down the government. Our aim should be to shed on the president s, not the government. Two years ago, you said something really interesting, which is that part of the problem right now in congress for both parties is that earmarks are gone, and that was part of the way things got past, business got done. What else needs to be done for you to start getting more bills passed the president will sign . Think things will change. We have a Republican Senate now, so the senate has been basically a graveyard for house legislation for years now. That is getting ready to change. But it has still got to recognize the president has a veto and the senate has a filibuster, and democrats have enough votes there, so it will be important to find things that are bipartisan like keystone to give the president frank way some tough decisions. We put that on his desk. Majorityhelming of the American People favor that. Labor unions favor it. Lets give him an opportunity to make a decision. Congressman, stay with us, Richard Haass is with us from cfr. Your book is on his world. Are you happy with the initial dialog that you see with the Republican Senate and Republican House . Progressy can do some on trade agreements, particularly the transpacific agreement, if you can do sunning on keystone, which in addition to everything the congressman has correctly set, it will send a powerful signal. We want the french to do fracking. How can we get them to do tough Energy Decisions if we continue to kick this down the road . Congressman cole, what you say to conservative republicans, those who are on edge about any kind of getting something done . How do you address them in the house and even in the senate . Again, we have been given a majority for two years and both houses. The worst thing you can do is do nothing and simply throw rocks at one another. We have got to show that republican governance works and not only ported to maintain those majorities it is important to set up our next president ial nominee to have a chance to win. We have got some things we know a bipartisann in basis. We have things we can work in with the president. Trade is one of them, tax or four might well be another, none of us like isil, there could be a bipartisan new authorization on syria. Find the areas we have in common, continue to oppose him when we think he is wrong, big if things done. Congressman, thank you so much, tom cole from the fourth Congressional District in oklahoma. Julie, such an interesting guy to go beyond the monday and politics. Dane the on the mondaun politics. It is. Not just the pipeline, charge him on immigration tom cole has always been a member of the getting things done. Exactly. I would like to see a beer between tom cole and president obama. I would like to see a beer between me and tom cole. Coming up, colleges are turning away students at record rates. Good morning, everyone. Bloomberg surveillance. I am tom keene. Brendan greeley and julie hyman with me. Scarlet fu rumored to return sometime before christmas. Lets get to our top headlines. Ask hong kongs government is beginning to clear away barriers that have blocked the city center during seven weeks of protest. Authorities met little resistance from the prodemocracy demonstrators. There has been no action to clear barricades in a more volatile protest zone. Turning to japan, Prime Minister shinzo abe is moving to jumpstart an economy that has fallen into recession. An 18month delay for an unpopular tax hike set for next october. A sales tax increase earlier this year is partly to blame for the economy. The premised or is dissolving parliament this week. Held december be 14. Sony is hoping a superhero will help with the revenue growth. Spidermanhe new movie to grow in the next six years in the next three years. Those are your top headlines. A week ago i love this warm guidanceour along with times of straightness really helped our daughter bomb the sats. Lets hope your daughter does not read that. 5 of High School Seniors who apply to Stanford University were accepted last year. That is down from doubledigit omission rates less than a year ago. Cohen has a consulting form, iv wise. You were an admissions officer at yale university. First of all, thank you for nothing. [laughter] second of all how many people around this table got rejected . Is that a rational strategy . No. There was an article in the new about students submitting a crazy number of applications. We advise our students to submit to 1510 applications applications, still up from about 10 years ago when we were advising kids to do. The problem is it is very hard to manage more than that and make sure that the college knows that if a top Choice School for the student, because colleges are concerned about their yield, which they are looking at for their ranking, and they want to make sure they offer you a place and you are going to come there. We are looking at the top five here, all of the ivs, yells going, columbia going down, princeton is going down. Is there a floor there . Most the top level at the selective schools, we see rates drop, so stanford last year, 5. 07 , and seven years below that, it was 10. 3 , so we are seeing those numbers drop. We are even seeing small liberal arts schools, your child goes to middle barry, at 20 or less. Amherst 13 . I am sure you have had things thrown at you in speeches if my kid goes to middlebury, blah, blah, blah. When does this disease start . Need tots and students think that most of foryear universities except twothirds of their applicants, so we have over 3000 does anyone on the east coast know harvey mudd . They should. If they cast their net wide and do their Research Well and they put together a balance list of schools, some reach some targets, they will have thank you, a balanced list. Great choices how much does it matter where you go to college . Isnt the disparity between someone has gone and someone can go at all . Isnt the income disparity much greater than between say a yale and a harvey mud, for example. What you makee is of the experience because you could go to harvard and not make relationships with professors, so it is what you do when you get there that is important. Atcan look of course business and all walks of life and look at people and where they have gone to college. Where they have gone to college does not necessarily guarantee success. It does not also guarantee that they will get that highpaying job at the end, so harvey mudd is a school where you can have the highest salary. We have got to take a break, cat. This is bloomberg surveillance. We are going to we are going to continue with cat cohen. I want to pull up another couple of acceptance rates dropping. These are not randomly chosen, these colleges we are looking at, tulane university, rochester, my all mma mater, keene, tom randolphmacon for julie. Yours is a tough one. Mine . Something happened after the storm they really made a change at tulane. What is driving this from the parents and the applicants in . Ofwere just looking at video the leafy, beautiful video at cambridge. What is driving the increased panic about getting their getting there . Students want to get that Great College education, they are thinking by the r. O. I. , return on investments, they are thinking what the job market and what is happening after that. As you were saying earlier, it matters what you are doing when youre in school and then how you make the most of the career services, and that Alumni Network once you get out of school. We teach students that. Driven. Is financially colleges have to justify the 50,000 a year. Increasingly private high schools, have to justify the 35,000 dollars a year. How much are we on a financial treadmill . This is one of the problems with higher education, especially the cost, going up Something Like three times the rate of inflation and how are we going to be able to sustain that over the years . However, one can audit for free any of these classes at harvard, m. I. T. , princeton it drives me nuts how we go back my mother called it harvard on the brain. Richard haass, you are in the trenches. Every kid in the International Relations would kill for an internship as cfo, when you look at a resume, what do you look at . Not the grade point average. At is least interesting. We look at how a serious courses the young person has taken, what they have done what what rigor what they have done rigor any great public school, what do you look at on a resume . A college is going to look at the same thing, course rigor first, if the college accepts standardized test scores, but they also look at the student having pursued their core interest. They do not want a jack of all trades, and made an and packed in their community through those core interests. That is crucial for the engagement with what they are doing. What about the problem of middle and lower income kids getting into the best colleges, you know, not only do they have to pay all of these application fees and if they are applying to 20 places, they have to pay 20 application fees. They have to pay to visit the college, do what the tuition, the debts, have to do with maybe paying your fees if they want to get into some of the ivy leagues we are talking about an enormous cost. Tom cole was just on from the Fourth District of oklahoma. He went to rent out college. He went to grinnell college. Tough to get into. Top sevencus on the schools drives me nuts. To answer your question, families need to start in a financially very early on, not just for the cost of college but for the cost of applying to college. This is part of you charge a fee to help people get into these colleges, which is a noble service, but it really dries up the price. Every parent is stuck in an arms race. The bottom line is we are talking 40 schools, and everybody else has got seats to fill. It is true that most schools will accept twothirds of their applicants, but if you look at the most selective schools, that is what is driving this sort of insanity, as we just read about in the new york times. Do students know what pepperdine is . Yes. Her argument is we are undervaluing the schools i do not have the big reputations. The quality of the education is barely correlated to the reputation. My argument is students need to create their list based on what is important to them, so if wellbalanced list of all good fiscals entry them all like their first choice, they will have a good place to go. Kat cohen, thank you very much. Twitter question of the day could you get into your alma mater day . Tweet us bsurveillance. Good morning, everyone. Churning markers. We say good morning. I am tom keene. With me Brendan Greeley. Scarlet fu when is scarlet back . Is she sick . Goodam having a really time with julie today. I am having a good time. But i really hope that scarlet gets well soon. I do have a long day, but it is worth it to be here with you guys. A. M. Up at 3 00 i am feeling so much love. Your nose is growing. I know. Lets get back to keystone, which we talked about a short while ago. The Keystone Pipeline is on the senate floor today, and while it is a lyrical flash point, does a politicalke flashpoint, that the pipeline make economic sense . Anchor betty liu was talking about this on her show. We were talking with cole, veryive tom much in favor of keystone. You guys are what to talk more deeply about it. On sincerld has moved 2008 when transcanada first put in the ripples all that they wanted to build the Keystone Pipeline, which put in the proposal that they wanted to build the Keystone Pipeline, which flows across the continental United States. Look, oil now, julie, is at 100 at the time, now it is 75, right . We were producing in the u. S. About 5 Million Barrels a day, now we are producing 8. 6 Million Barrels a day. Our Energy Independence has grown, so it raises the question whether the world has moved on, do we still need this . Richard haass, you travel everywhere. We are seeing this all over the world as oil becomes less expensive, the expensive projects do not make sense anymore. That is true, but keystone has become something more than a narrow energy project. For canada, it is a test of its relationship to the United States and for a lot of people it is a test about the american ability politically to take tough decisions in the energy space will set be on the keystone and how much oil it puts into the United States, bottom line is it will not change the Environmental Impact on the world. This stuff is going to be produced and moved, so this becomes as much of anything about politics and our willingness politically to take top decisions, even if it offends some environmental lobbyists. Richard is right. Oil is coming out of the tar sands no matter what and the fact of the matter is that instead of being transported by a pipeline, it is already being transported by rail road, so those of the oil coming out of the tar sands. The oil is going to matter what washington does. You are going to talk to jack gerard, head of the American Petroleum institute, Michael Weber of the mg institute they are on different sites, sub they will be debating. Gerard says the Keystone Pipeline is needed, Michael Webber sets lets move on. It looks Like Congress is not looking to move on. We are looking to that conversation, betty liu, thank you so much. Iran as well. A lot going on in International Relations. We talked to Richard Haass of the council of Foreign Relations. What you need to know about United States, europe, and iran. Stay with us worldwide. Bloomberg surveillance. Good morning, everyone. Bloomberg surveillance. Tomorrow, one of our most popular guests will get you ready for investments in 2015. She has been long and right, you havent, i havent. Ers within, liz ann sond a prosperous 2015. Look for that on television and radio tomorrow on bloomberg surveillance. We say good morning. Here is julie hyman. Doff says 10d billion has been recovered. Irving per card said two optional funds have just agreed to pay a total of 490 million sub 497 million. Federals serving at a prison in north carolina. Send cash to each other. The new feature is called snapcash and will be available to users 18 and older with a debit card. It gives access to snapchat users who send more than 7 million disappearing snaps a day. Ikea makes its biggest process tonergy date, the number of wind projects ikea owns 29. It plans to to 9. We see corporations continuing to lead on these types of her new will bowl investments. Ask very good. On International Relations, Richard Haass with us with the council on Foreign Relations, and we look to a deadline, november 24, a deadline between iran, the u. S. , europe, multilateral does not begin to describe the diplomacy needed to get multiple parties and constituencies of those parties to make tough decisions. Those talks will be in vienna. There is no hall of mirrors is there . None of the romance we read in history books. It is tough diplomacy and so tough that the one thing we will be unlikely to get is a fully developed agreement. We will be likely to get a Second Interim agreement or a Framework Agreement with many principles and details to be filled in. Who do we speak to in tehran . The foreign minister, who is very close to the president , mr. The main pointen person. This is the president s negotiation. The end of the day, the Supreme Leader is the force but not at the table. There is a confusion upon americans, so shattered by 1979. About this linkage of religion to the nonreligious state of iran. If you are sitting in negotiations on the side of the United States, what are you willing to give up to get a deal . I think the issue is how much capacity in the Nuclear Business do you allow iranians to keep, and i think your answer is we will let you have more capacity than we want to if we have confidence that we will and sufficient transparency oversight, so we know that is all you have and no more. It is both a question of capability as well as transparency and our ability to investigate, and then at the do youbate now is also allow the iranians more numbers, more centrifuges if we know that they are not sitting on fuel . It is a detailed arrangement that you can have slightly more capacity so long as you are forced to park your fuel say outside of the country and russia. Multi ringcome a circus. How much trust is there . Any trust between the two parties . Word. St is a funny as Ronald Reagan said, trust but verify. There is a history of iran cheating here. Sorry to use an undiplomatic word, but there has been cheating. Russia is trying to stick its thing are in the pie a little bit. They can be important because they have a decent relationship with iran over the years. They have had onagain, offagain negotiation about giving the iranians a reactor. The fuel produced will be parked outside in russia. But your theory about order and disorder, russia does not seem to want a Good Relationship with anyone else right now. Why would they do that . Financially it makes sense plus they want to be a player. It is wrong to write russia off. I would not assume they are terrible ever. They have a history of playing a constructive part. In kissingers world order, the iran chapter is frightening. You read the chapter, you go really is it that bad . Do americans understand how important these meetings are . I think it has gone over our heads. It is important for the middle east. Imagine if this fails what what what happens if this fails . Israelis will have to make a very short order decision about what to live with and in others, the saudis, the ejections, the turks, they are going to say the saudis, the edge of shins, the turks will say hold it, we do not want to live in a world where only a ryan has capabilities. We had helima croft on, and she said the saudis buy the biggest and best toys but never deploy them. Do you see them as a real presence in the region . They are now. They will continue to play a heavy hand the city iran. You get on the surveillance ulf stream out of dubai and you go out over the persian golf, where does the United Arab Emirates play in . Become a real player. It is hard to exaggerate how opposed they are to both irans bid to Nuclear Weapons and irans bid to regional primacy. The uae is lined up. Lets get to our agenda. I looking forward to economic and International Relations. The news of the morning on japan. Here we are with japans struggling with truly decadeslong deflation and tepid nominal gdp. We will look for the election there. Ambassador haass, what is the one thing to look for in the coming days from japan . It is what the government says it will do if reelected. What is the case for free voting . What is the mandate, and what is the calendar for introducing real reform . The am taking a look at Keystone Pipeline today. Richard haass come i was fascinated you said Keystone Pipeline is no longer an economic issue, it is purely a political issue. Absolutely. It is being produced and shipped, the question is where it is being shipped, the Environmental Impact is monthly better if it is shipped to us by pipeline than if they goes by rail or by truck. But increasingly, you are right it is symbolic. For people who care passionately, for the tom of the world and everyone else, this is how you measure the fidelity what should they measure fidelity by if not by this . Take real things, like how hard you push for a carbon tax. There are serious things we can and should contemplate. This is not one of them. This is a mistake for the environmentalists to make. Thank you for saying carbon tax on air. We cannot say it enough. I will be heading toward north bergen, new jersey today to a walmart supercenter. They are going to be talking about holiday plans, black friday, i will be talking to the head of their general merchandise business, which is everything you cannot eat or consume, so it should be quite an interesting they want to be open twice four hours a day for the next 40 days or something they want to be open 24 hours a day for the next 40 days or something . It seems like it. They talk about Different Things they try to do to mitigate the trampling from the stampede. Adrian was adamant that every dollar of bricks and mortars goes to the internet. Dollar for dollar. Reachare all going to into our own path, try to accuse, the twitter question of the day could you get into your alma mater day . Is answer undergrads that a state school, yes, grad, im not sure i could afford it, or i would ask whether it is worth it. Next answer i could get into my all mma mater today, but i could not get readmitted when i flunked out. Last answer i could not afford it today. Funny thing is i was the last one of my class who did get admitted. I got my letter in august. I doubt i could get in today. Somehow you would have made it anyway, right . You are a plucky guy. Plucky, that is the word. Where did you go to school . Overland college. My mother went to that school. It cost 185 a quality education. I could not skate at rit. I majored in hockey. I did not go to school. There we are. Green on the screen. Stay with us for another hour. Good morning. Good morning. It is tuesday, november 18, and we are alive from bloomberg headquarters. You are in the loop. I am betty liu. Japan trying to get itself out of recession to a vote today. We have got your morning covered. Six years after keystone was proposed, is the pipeline still economically necessary . Has the world move beyond the pipeline . We asked scott ritual of rigell of scott virginia to weigh in. And, making a comeback at a start up, and 15 years after affirmative action was introduced in the u. S. , were still fighting over racebased emissions. Why harvard is now getting sued. First, a look at the top stories this morning. Japans Prime Minister is trying to get the countrys economy back on track. Hike, pushing the japanese economy into recession. Plus, calling for new elections