Transcripts For BLOOMBERG Bloomberg Surveillance 20141121

The immediate threat of deportation. The visa process will be streamlined for workers and their employers the president responded to those who say he is overreaching. The actions im taking are not only lawful. Theyre the kinds of actions taken by every republican and democratic president for the past half century. And to those members of congress who question my authority to make our immigration system work better or question the wisdom of me acting or congress has failed. I have one answer. Pass a bill. Republicans say theyll use the tools they have to stop the president although theyre not saying which ones. Heres john boehner. He said hes not a king or emperor. Hes sure acting like one and hes doing at a time when the American People want nothing more than for us to Work Together. Meanwhile, a top fed official admits that an examiner could be too easy on the nations biggest bank. They will look to see if the ank is supposed to regulate. Weather of new york can catch a break. Now the weekend forecast cause for calls for warming and rain. That may cause a flood. Meanwhiles the Buffalo Bills of the National Football league the given in to the stadium is filled with snow. So sundays snow against the new york jets will be played monday in a roofed detroit. There us a market failure. They offered 10 they should ave offered 20. Fran tarkenton would have played futures up 13. And good market. E eurodollar, weaker off the news from china. Oil churning this morning. Vix, 13. 58. Im not on 20,000 watch on the dow yet. Yen weaker off the china news. He has been such a support to bloomberg surveillance over the years. He is a fellow. You know him from goldmansachs international. Jim oneal joins us this morning on china. Jim, how surprised were you by this action by day bay jing . Well, im more surprised is how big the reaction is. Given what weve seen and the declining level of inflation in china a bit like everywhere else. I dont think its a big deal yself. Are we in, if not a currency war and economic war due to slow growth . Not regard to me. I caution your listeners that our viewers that are not watching things as closely but looking through your screens this morning is the japanese china calmed down the effects of the market. That to me, is much more interesting than this news because it suggests the chinese the japanese finance minister is getting some heat behind the cenes. That to me is intriguing. I wonder with all this talk about a Division Within chinas government, should we expect that the reforms that the chinese central banker removing barriers, would that be diminish ordinary reversed because of this . Is that is sign that last broader shift within china . No, i think its just a followthrough from other measures weve seen from the couple of weeks. The very latest about the economy, particularly the circle flash purchasing Managers Index suggests that if they dont do more stimulus to financial conditions, growth might be heading below 7 even on the official numbers. Im not really i wouldnt read too much into it. I think its more of a move thats already happened. The reality whether Brendan Greeley if United States or draghi is that bubble you were talking about with real estate in china. What should we worry about . Well, i mean, your audience and the markets in general seem to like to worry about anything these days. O probably both. I think chinas slowdown as much as its cleared that its still happening. I dont think it set the forefront of things to worry about in the world. In the concept of your question, the fact that the chinese stock market has done so well, absolutely relative to many others is a good sign. Jim oneill, thank you so much, the former chairman of goldmansachs international. We saw futures take a big leg up. You can see s p futures are up 1 . The punch bowl. It just keeps getting bigger. Lets go to washington where Phil Mattingly joins us now on whats next on president obama after his prime time speech on immigration. Turns out a couple of networks did carry the speech live. What is the president s agenda this morning . Hes going to do a pep rally in nevada. Thats right. Hes going to be doing a speech in dell sol high school, thats where he laid out his comprehensive reform principles in 2013. The schools about 65 hispanic, 10 to 15 of those kids are not natural english learner. Theyve learned english since theyve been in the country. So its a target audience for them. What you need to recognize is this is the first of what is going to be many, many events to come. Theres a recognition inside the white house. It has been communicated to fellow democrats and Interest Groups that the president needs to sell this in a big way. People are wary of his unilateral action. Are we looking at this the wrong way if hes headed out to the las vegas and the Campaign Season of 2016 just start last night . Harry reid is not mad that thats the first place. Hes up for 2016. The hispanic population in the state, 2528 is crucial if he has any shot of getting reelected. His Approval Ratings are upside down. The president is doing is not so much related to reids future is that this is a target state he needs to hit to make this work. When people are allowed to apply for these work permit, when people are able to apply states of nevada is crucial for this plan actually working. As i look to sunday morning in the talk shows as the battle is engaged, what is the singular tension within the Republican Party . Whether to act now or whether to wait until the new congress is seated. What you hear from Republican Leadership on the house and senate side is wait till january, wait till january. The spending bill that is due by december 11. They dont want to mess with this issue on the spending bill right now. They want to wait for the new congress to act. Their both lawyers are looking at every aspect of this to try and figure out the best way to rebut it, whether its legislatively or legally. They dont want to turn this into a Big Government shutdown issue in november. Thank you, phil. Great to hear your biblical wisdom in washington. Republicans would like the president to exodus out to the door hoping and praying that hispanic vote is of importance but not independence expenseable to a 2016 victory. We engage the debate. Tess strickland joins us. Aaron sharp with us as well. The republican from the 18th Congressional District ofy. It spins from peoria. Goes by springfield. Thank you, tanya. Gentlemen, thank you to have you. Can you wait till january . Sure. I think its clear that what the president s doing here is playing politics and whats important for my party and the republicans in the house in particular is not bait debate. Hes trying to bait us into a showdown of government shutdown. And were serious about passing legislation. John barren is upfront and hes why cant we get a number of otes a quarter months ago . Im not sure who the opposition is. The senate has yet to send over the senate pass immigration bill. Even if we wanted to vote on the enate immigration bill, we couldnt. Harry seed said those bills are dead on arrival. Ohio is the heart of the country. We are more representative of america than i believe in any other state. I thought illinois was. Well no. I thought new york was. Maryland was. [laughter] peoria certainly is. But the fact is that has been 552 days since the republicans and the democrats and the inns ints in the Senate Passed the inns passed the mmigration bill. Well, maybe theyve been to Washington State and theyve een smoking something. I think the congressman sitting next to you is about to Say Something wa straight face. The Border Security bill first of all, the houses view on this is it should be a stepbystep approach. Our step boy step approach begins with a Board Security bill that passes the Homeland Security unanimously. Hey voted for the Border Security bill. No reason that cant pass the senate. And so we believe we should move this through a bill at a time. And the senate now being in the republican hands, theres no reason why Mitch Mcconnell and equal partner and a good negotiator, we can get something in the present steps. But what hes done has really blown up the trust to get a deal and thats the problem. Wait a minute. The speaker of the house says if the president takes these actions and its going to poison the well, i have to be honest. The well seems pretty brackish to begin with. Weve done stuff with him, whether it be on trade treatments, the fiscal cliff deal. Weve been able to negotiate with the president but it requires him to come down off the podium and not do illegal action that hes done. Hes playing politics. Quickly. Give me a break. Every president has taken the executive action dealing with immigration. Why cant we find a middle ground we had a bipartisan bill in the senate. If the house and we had bipartisan bills in the house. Yes, but if john boehner has been willing to bring something comparable to the floor of the house, it would have passed. We all know that. Why should the house be forced to take wholesale senate bill when the senate has said they will not take up house pass bills . But congressman the house has done nothing except that one Border Security bill. John boehner said were going to deal with this piece by piece months ago. Hes dealt with one small piece. Were going to come back and continue this discussion. The heated debate. Scarlet will separate them. This is the most fun weve had at 6 00 a. M. In a long time. [laughter] all right. Were going to talk about the controversial Keystone Pipeline when surveillance returns. We engage on the conversation on the issue which is immigration. With us, Ted Strickland from ohio, aaron shark with us from illinois. A heated debate. Scarlet, why dont you continue this pain . One thing that republicans point out is how the president taking ute lateral action but the numbers would suggest that he doesnt use that all too often. The fact is that there was a time when both parties were willing to Work Together to achieve a desirable outcome. But the fact is on this immigration issue, as i said earlier, i believe any rational person who has looked at the situation understands that this house of representatives under the current leadership of my fellow ohioan john boehner will never pass a meaningful immigration bill. Thats why the president felt compeled to take action. 552 days passed since the senate bill. The Bipartisan Senate bill passed and the house has done little or nothing. First of all, regardless of inaction in the congress, it does not justify illegal behavior and law making by the president. Is this illegal though . We believe it is and we believe itll be challenged in the courts. The idea heres the point. E idea that his exec ompetitive action is legit action. Prior president s were narrowly focused in immigration issues and their executive action. It was interpreting what the congress had attempted to do through law making. This is different. After 20 times telling the American People i cant do through executive action. Congress must act. Lets talk about legislation. Have that senate bill had gone to the house, would you have voted for it . I think we could make it better. Ive been very outspoken. I said we need to deal with the 11 Million People who are mere illegally. Its not realistic that youre going to deport 11 Million People but i dont believe as mr. Strickland suggests my only solution is binary. I think the house can pass this bill and what i dont accept is the fact that the senate say they wont take house bills miss superior than the house say they wont take senate bills. We can get a bill to the president s desk. Congressman, pass a bill. Why didnt the house pass a bill . We passed 380 bills. Let me jump in. Wait a minute. Harry reid said he wouldnt take oh, come on. You let harry reid dictate what you do . Very quickly, i want to get to the news of the moment. Congressman, would your party risk again, a threat of a shutdown of the government of the United States . Well, i dont think either party wants the government to shut down. What youre really asking is to what length do we attempt to stop a president s behavior that we believe is illegal . And certainly, one that we dont support as a congress on a policy level. So theres debate in our conference whether we do a short term funding bill so we control the senate and the house or a longer term. I believe that we should do a longer funding bill because i believe that regardless of what youve passed in the house and senate, can it done legislatively. Aaron schock of illinois, Ted Strickland of ohio. Much more. Coming up, a very special moment for bloomberg surveillance. Bill nye, the science guy. He changed science in america. Bill nye will join us out in support of a new book he really pushes hard against creationism. Our twitter question of the day what, should be the subject of bill nyes next debate . His next book. Stay with us. Good morning, from new york city. Its bloomberg surveillance. Good morning, everyone. If youre just joining us, china cuts Interest Rates. Well look into that news here in a bit. Right now on bloomberg surveillance, a morning must read on the president s speech. Heres Brendan Greeley. We have a followup from a bloomberg viewer. He write demoralizing language that obama use is an act of indecency. We shouldnt rip families apart, he said, unless some of their members came here recently. Governor, immigration has really tailed off since 2005, which is when the argument really started heating up. What is the moral aspect of this . The moral aspect is families are being torn apart and we need to be deporting felons, not families. And we need to be deporting gang members, not mothers who are working to support their kids. But the logic that i just read said if we take the moral of the president seriously, on the chemistry should have exemption should have been broader. Hes doing what he can do under the law using his Constitutional Authority as president. Congressman i say his executive action is retty comprehensive. He goes with visa and students staying here. I want to get to the heart of his incenserity here. He was the United States senator. No ones reportered on the fact that he never once introduced a immigration bill. Well continue this discussion as Ted Strickland falls off his chair. Good morning from new york city. Bloomberg surveillance. It was a busy friday. More busy flight. Heres scarlet with our top headlines. President obama throwing down the gauntlet to what could be a republican controlled gauntlet. He outlined executive action that he is taking on immigration. The orders lift the threat of deportation about five million undocumented immigrants. Heres the president yesterday evening. Are we a nation that accepts the cruelty of ripping a parent from kids arms or are we a nation that values families and works together to keep them together . More arrest in troubled ferguson, missouri. Police with right shields took into custody handful of protestors. The Community Awaits the grand jury decision on whether to charge a white Police Officer who fatally shot an unarmed lack teenager in august. A National Hockey League Player declares bankruptcy and games mom and dad. Jack johnson signed a seven year deal worth 30 million in 2011 but he first gave power of attorney to his mother. Johnson says his partners bought a home in california without his knowledge and then borrowed 15 million against his future earnings. Johnson has reportedly cut off all contact with his family. Those are your top headlines. No thanksgiving dinner for that family. Family values. We look at blackhawks blue jackets hockey here, but it really goes to the sports out there both of it is part of ohio and illinois. The money can just vapor in moe sports just like in politics. Theres really no difference here. Thats right. You see it drift away. The fans tend to be a little happier in nfl than in policy. Tell me about the blue jackets franchise. I had conversation with gary bettman of the National Hockey league. People go columbus, really if its a screaming success. Columbia is one of the learblings cities in america. Its the largest city in the state of ohio. And people who havent been to columbus, when they come to columbus, theyre very surprised. We have a lot to offer. We have the largest single State University in america. Which one would that be . Thats the ohio state. Oh, yeah. The buckeyes, yeah. The buckeyes. So its a very vibrant growing city. I was in chicago chicago the day the blackhawks won the trophy stanley cup. Thats right. You have to do that to me. Give us its not in your drirkts congressman. Weve got one of the finest hockey teams in america. And stanley cup, not just once, but multiple times in the last decade. Can you and mayor emanuel find Common Ground on immigration . Well, i think we both want mmigration reform. He has to deal with the real world outcomes of immigration. Right. We have a new governor in illinois. Chicago is one of the few sanctuary cities for immigrants thats not a border state. So we have a huge influx. Last year of all the new esidents moving into illinois, 40 of them, nonamericans. They run out of money on december 11. Failure to pass the budget could result in a partial government shutdown. Will the democrats and republicans come together to agree on a budget before the governor former governor, Ted Strickland is with us. The house ways and Means Committee with key budget decisions. Brendan, start us off here. The question on the budget. There are two items everybody agrees need to happen are Corporate Tax reform and personal tax reform. Governor, can they be separated . Can they be a attached piecemeal or a onefix . Let me say this. I believe that given the recent history of the house of representatives, there will never be in the foreseeable future, a willingness to even consider any significant tax reform that causes the richest among us to pay a little more. And until that happens, i think tax reforms not likely to appen. You done move to seattle and complain about the rain. What this right democratic response to that . Theres got to be a new tax because whats happening right now is not working. The American People, i believe, understand that the rich are getting richer. The middle class is being squeezed. Costs are going up. Wages are stagnate and weve got to take action to change that. Theres one american person is clearing his throat who is preparing to Say Something. Income distribution has not work. Second to suggest that we have to raise taxes to do tax reform is a defeatist mentality. Third, the only entity to put in black and white comprehensive tax reform that drops corporate and individual rate to 25 is the house of representatives. And our chairman has put forth a draft that he had negotiated with the new ambassador to china. Now that we have a republican senate, this is a bill that we can get. It was a beautiful bill and everyone in bill, not just the president dropped it line a hot rock. We had to do it under current budget rules which is statistic scoring, which basically is not real world. And we believe with the senate and the house now, we can allow for dynamic scoring which is a better view of how tax policy works. You raise your taxes, you lower your taxes. The distinct is distinction is youve get to pay bills. Absolutely. And someone has got to pay the kind of give the resources that are needed to pay the bill. This dynamic scoring, they can say were going to cut taxes and more moneys going to come into us. Thats voodoo economics as far as im concerned. Somebodys got to pay the bill. We do and its funny because democrats in the senate when they were passing the immigration bill, they had to score dynamically. You have to allow these people to come out of the shadows and start paying taxes. Thats dynamically scoring the bill. I want to stick with this. Congressman, walk me through the steps. We know what happened in the past. In the future, Corporate Tax reform. What are the steps to get a bill that the president will sign if what has to happen . Well, i mean, look, the reason its not been done is because its tough work. The ways and Means Committee put forward a draft. Its not perfect but it does our state goal which makes our individual rates competitive. Whether they can be separated, i dont believe thats good for our country because the line loins share of lions share of job the big guys tax rate, it puts all company in a competitive standard. The job creators are the consumers. And if we put more money into the pockets of the average american worker, the economy is going do better. This trickleddown stuff has been tried and it has not worked. Congressman, is there any tax that you would vote to increase . Any tax that you would vote to increase. Well, ive been out there on revenue for infrastructure. I was on the traurpgs Transportation Committee with jim from minnesota to change the stimulus bill to increase spending on the stimulus bill or infrastructure. Ive got family from ohio. My mother has a view of mississippi and illinois. One of you mentioned earlier these people. Is the president mentioned last night, these people are us. Whats different in this immigration debate about hispanics versus the immigration debate about you, you, me, you and scarlet, of more recent not white. No, no, but im serious. Whats the distinction now in the heat versus the debate our great grandparents had . It has become a polarized political issue. George bush, bill clinton, the st bush, dwight ice hurry, hour, road reagan dealt with the executive action. I didnt hear a lot of uproar when the republican president s took action thats constitutionally identical to what the president is doing today. I want to take one step back from politics for a second. Congressman, you, like the governor are a devout christian. Where do you see the moral argument here . What is the morality of this debate for you . I dont believe when somebody breaks the law that the morality debate is relevant in a sense that now all of a sudden, if somebody broke the law, i should feel guilty for enforcing the law. Second, i do believe its unrealistic that youre going to send 11 Million People back to the original home country of birth. So there are some morality but theres also some reality that you have to enter into the equation. But, look, my great grandparents came here from germany. All of our ancestors at some time came to the United States. But i would assume we came here legally. So we have i mean, my office deals with immigration on a daily basis of people who are doing the right things. Immigration has nothing to do with whether theyre mexican, asian, german or what nationality. The issue is not are we for immigration . What do we do those who have broken the law . Lets continue the debate later. Absolutely. Were going to focus the big role that millenials are going to play. It is our single best next on surveillance. Good morning, everyone. Bloomberg surveillance. Tom keene, scarlet fu, Brendan Greeley, with a really significant debate on immigration. Lets digress. Will they vote . Heres scarlet fu. Lets take a look. Were focusing on dem graphics showing you how millions now millenials demonstrate the biggest. Millenials are those born between 1980 and 2004, the yellow bars. This big massive part of the chart. That make up one third of the total u. S. Population. The x access is the age of the generation. The oldest is 34. Im off the right side of the screen. Thats right. Youre the tail there. Its a long tail. Its a long tail. Brendan and i are like squeezing that tiny little blue generation x category. Wa have we learned . The distinction is theyre diversing because those who identify those are white nonhispanics fell to 58 . Those who say theyre hispanics tripled to 21 . Thats a big, big change. Ted have aaron schock and strickland. Brendan, it is about the millenials and politics. Where were they . It is. Congressman aaron schock, classic millenial. You have no ambition. You want everything done for you. But the promise of barack obama was that he was going to move us past beamer politics. Is that something that you feel as well . Do you feel like its time to shock off at least that residue . The way the boomers think about politics . Yeah. Obviously, they embraced his hope and change message of his first campaign. They voted for him overwhelmingly two years ago for reelection. But if you look at the exit polling that came out in this midterm election, they shifted. Republicans won their fair chair of the youth vote and the millenial vote and part of that is because this issue this time was exhibition and the president race did a good job on focusing social issue, the gay marriage debate and young people, surprise, surprise, are going to socially moderate or liberal than their parents but theyre worried about getting a job. They are young and optimistic. How did the republicans offer them a hope and change message . Well, theyre hoping for change economically. Theyre graduating with the highest amount of student debt in our countrys history. More of them have had to move in with their parents than at any time in our countrys history. So thats what theyre hoping to change is their economic situation. And they realize that Big Government, nanny state politics doesnt work so the view of limited government, ones who are more in touch with the job creator, they realize that will give them a job and to be able to buy off their first home and provide for their family. The economic issue method is one could we hear from someone whos older, please . Governor strickland, your Democratic Party needs to do more to reassure the millenials. Absolutely. The congressman has diagnosed the situation but he doesnt have the right remedy for whats happened. Whats the prescription . We have tried trickled down exhibition for a long time. It has not worked the working middle class has seen a shrinkage of their purchasing power. Costs have gone up for child care, higher education, health care, youve these things. We need to fundamentally change the dynamic in this country. We need to put more power in the hands of the average working american and less hands less power in the hands of wall street. Ronald reagan would not be welcomed into this Republican Party. No. Of course he would be welcomed into the party. He did tax reform. Were for tax reform. His message to our party would be john boehner and my message which is if i can get a half a loaf today, i can get half a loaf tomorrow. Is that biblical . Youre younger than everybody else. What is the seminole political moment for you . Where you became aware that this is an important issue that you had to think about as a kid. When government got in my way. Which was what . I was an entrepreneur in high school and i was trying to go to College Early and my school board said you cant leave because we get 6,000 from the state of illinois and i said youve got to be kidding me. So i wrote them a check and they still wouldnt let me out. So thats when i said who are these people that made the rules . Thats when i found out who the school board is. I ran against the School Board President and beat her. Your seminole moment was you. And this guy had the ability to write a 6,000 check . What that says to me, congressman, is that your experience dont go there. You know why . Because i started my First Business in middle school. I was working three jobs in seventh and eighth grade. I started my own i. R. S. In eighth grade. Dont make the view which is if youve been successful, you must have taken it from someone else. I didnt say that, congressman. No. I said the average High School Kid or a lot of families wouldnt have 6,000. Thats the problem. The former mayor of new york is come and adjudicate in a moment. Scarlet, what do we have next . We mentioned leadership. Were going to discuss whos going to be in the drivers seat for the g. O. P. And democrats when we get to 2016 Campaign Season. This is bloomberg surveillance. Well be right back. Mutuals up 14. Dow futures up 121. Momentous news out of china. No question weve seen that as well. We continue our discussion. Brendan . Former Ohio Governor Ted Strickland and aaron schock is part of the show. We ask you about 2016 that you cant possibly answer. Jim webb announced his candidacy the only democrat thats running so far. Thats right. Have you thrown your hat in the ring for jim webb . No, im a Hillary Clinton supporter. But shes not running. Well, i think shes running. What gives you that idea . He has a distinguished history. He will bring some meaningful discussion to the debate. But i have been am and will continue to be a strong Hillary Clinton supporter. Does she need candidate, somebody to run with her to pull her in one direction . I think secretary clinton is a fighter for the people. A lot of people may disagree with me but in her heart of hearts, hes a pop list. Populist. What does secretary clinton learned four years ago that she can apply now . What can she do with best practices to get to november of 2016 . I think what she learned was that the experience and all of that really isnt what matters to the American People. They want to hear an economic message. Does the Congress Need to speak english fluently . No, they have to show heart and show passion and speak to all people. They cant write off different segments of different population. Im looking for somebody who can represent what republicans stand for. Were biased to the governor across the river here and that would be mr. Christie. What is the Chris Christie best practices right now he speaks from his heart. He comes across very genuine. Sit down and shut up. Hes somebody who has proven the ability to work across the aisle. Hes been a republican governor who has gotten, then done in a very blue state. That track record could speak for himself. Hes held people accountable. Theres been challenges demonstrations. When he finds people that screws up, he fires them. Its fun, scarlet. Its wide open. Hes on the list of president ial nominee along with scott walker. Governors are always showing up much more prominently now than congressman and senators. Congressmen and senators. Why is that . Because when youre an executive, you have more of a track record than when youre one of a body of senators or house members. And second, you have more prominence. When youre the leader of a state, your proifls much bigger than when youre one of a big legislative body. But people want executives to take an executive action. They always end up being compromised in that way, raising taxes. Im not sure that thats the track record of scott walker or jeb bush or kristin chenowethy the host of senators or governors. You have to meet in the middle. Whether youre in the congress or in the executive branch. So poems history will always be picked apart. Liberal itlity is a bad word now but the liberality of the Democratic Party, can Elizabeth Warren reach out to traditional democrats or is that divide too great . No. The fact that she was able to go to North Carolina and kentucky and other states and campaign for candidates, Elizabeth Warren has got a great message, i think. But let me say. When i was governor, my first budget, when both houses were controlled by the republicans, my budget passed with only one dissenting vote in the entire legislature. And thats because i sat down with the Republican Leadership every week and we worked out our differences and compromised. I dont see that happening in washington, d. C. And i think thats what the people of this country are really crying out for. We do. Would you consider running for president . [laughter] i would love to have a president that could meet with us every week. I think you should announce your candidacy. Look out. Thank you. Fore rex report with forex report with a china move. Stay with us. Bloomberg surveillance. Good morning. It is an unconstitutional power grab. Republicans regroup and respond to the president s executive action on immigration. Can battleground state democrat support their president . Nd we talk d. N. A. Repercussion and cornell ice hockey with bill nye, the science guy. Rumored hes wearing a bow tie. Good morning, everyone. This is bloomberg surveillance live from our road headquarters in new york. Im tom keene with me and with me is scarlet fu and Brendan Greeley with me. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] nobodys ever said i had to wear a tie. Very exciting. Belichick bilas here. We need to start with the news broken in the last two hours. For the first time in two years, China Central bank has cut benchmark Interest Rates. The oneyear lending rate was reduced to 5. 6 . The chinas economy on track for smallest increase in more than two decades. And until today the central bank has focused on selective monetary easing. Here at home, president obama setting the stage for a battle over immigration. In his speech, the president outlined the exexexex hes taking. Executive action hes taking. The visa process will be streamlined. The president responded to those who say hes overreacting. The actions im taking are not only lawful, theyre the kinds of actions taken by every republican president and every single democratic president for the past half century. And to those members of congress who question my authority to make our immigration system work better or question the wisdom of me acting where are congress has failed. I have one answer. Pass a bill. At the other end of the mall, republicans are split over how to stop the president. House Speaker John Boehner is not one of them. Phil, he says the president has gone too far. The president has said before that hes not king and hes not an emperor. But hes sure acting like one and hes doing it a at time when the American People want nothing more than for us to Work Together. A top fed official admits hey could be too easy. New york fed president says theres a risk of the fed could become too close to the banks. To the weather. Western new york, up to seven feet of snow has fallen. Now the weekend forecast calls for rain, higher temperature, general soup. The bills and buffalo of the National Football league have given in to the ntestifyiveable. Inevitable. And the original offer was get paid 10 to shovel the snow. Plus free seats to the game. And no takers. Not enough. They should have run an auction. China influence data check. Busy before and very big reaction to china. You heard jim oneill early speak of that. Futures roar, way out over the lemish idea as euro is weaker. Bullish idea as the euro is weaker. Were going to washington on the news. Yes. We need to check in with our White House Correspondent Phil Mattingly who stayed up and listened to the president s speech. Phil, the president continues on his immigration push hes now moving traveling to nevada to follow up with a pep rally. Yeah, thats right, scarlet. The white house is cognizant that optics are important here. Theyve announced what the policy is going to be. Theyve had the big speech last night in prime time. Now its time to go sell it he will leave to las vegas. When he gets there, hell be giving a speech at the same high school he gave the speech in 2013. This is the start of things. The white house has been seeing the same polls that people are ary of going unilally. They realize they need make a big push. They promised democrats that theyre going to make this push nd today is the start of that. A democrat from north dakota, manchin and tester, they have all said theyre not on wary but that as you said, scarlet, he went too far. Reason why you need to keep an eye on them. Republicans are going to try to do something legislatively in january. Therefore, controlling both chambers. They dont know what theyre going to do yet but if they have an opportunity to pick off democrats and whatever that effort is going to be, thats going to be a major setback. What aides have been telling me is these democrats are skeptical but theres no way they would vote for republican. If that starts to shift, thats a major problem for the white house. Do we have a sense that harry reid will not have the same control over them in the minority that Mitch Mcconnell did in the minority with the republican senators . I think you make a mistake if you ever think harry reid if you underestimate what harry reids powers is going to be in any way in this caucus going forward. A a mod lats including the three i just mentioned has dwindled in ranks. With Elizabeth Warren taking a leadership position amongst the top group right now. There are going to be people that break up. Will they break up into the extreme of some republicans yet . Not sure. Phil mattingly, thank you. It was good coverage from washington this morning. Oh, expect the unexpected and we got that this morning from china. Jeffrey rosenberg understands that these economies in the strictly nks are in inclined. You have a fabulous chart in your notes central line this way, line that way. Theres no line for china because its an artificial monetary construct. How traditional is their Government Central bank system versus the other Central Banks that we know . Oh, yeah. It doesnt show up on the chart. It could, but its a completely different system. So we think about it very differently. Yeah. I know the focus here is on china and we can develop that but we talk about a speech. Were talking about for financial markets, were talking the wrong speech. Mario draghi talked about the peech. This is a he talked about e. C. B. Policy and he was signaling what markets expect. Pull london, can draghi the bank towards modern central banking . It very much appears to be signaling that, that theres a persistent discussion of that unanimity around further measures of unconventional policy. There are legal challenges to this. Draghi signals this morning very strongly that those challenges are not going to preclude them from expanding quantitative easing. Scarlet, please, the exact quote is we will do what we must to raise inflation as fast as possible as our price stability mandate requires. I want to thank you for doing this is the first for me in reading your research from black rock. You actually have a footnote to Jefferson Airplane white rabbit, 1967. That famed publication. You have a lyrical way of bringing away central bank policy. Who got what pill . The smaller is the fed. The larger is japan. And the ones that mother gives you that dont do anything at all is in reference to e. C. B. Thats why the speech is so important. Its really laying down the gauntlet hes saying were going to do he said it before. He said were going to do whatever it takes. Hes backing it up that theyre going to do what they are going to do. Can we look ban on Bloomberg Radio . This is a twoyear yield that we never look at enough, where we were before the financial crisis . Im honored to tell you that allan and david will join us in the coming days on bloomberg surveillance. 3 orwo years was 3 5 . Now, theyre expanding quantitative easing because european economies require more support. And were going to talk whats happening in the United States which is a totally different story. It is a story of an emerging and stronger and strengthening economy that no longer requires such unprecedented Monetary Policy and that twoyear rate is going to be lets put that chart on. Theres always a question. Is that a fight in panic or is that a flight in hope . No. When we look at that twoyear chart, thats low for longer and zero Interest Rate policy. In the last six years, the flight to quality behavior that we used to associate with the front end of the curb, thats into the 10 year. Coming up, we will bring you william nye, in the science guy to talk about his new book on evolution. Our twitter question as well today what should be the subject of bill nyes next debate . This is bloomberg surveillance. Im scarlet fu, joining tom keene and Brendan Greeley. Our guest host is Jeffrey Rosenberg from black rock. Over the past month, commodity has entered the fort with the rop in oil prices. It really summarizes the changing landscape. S. Croyle crude oil field production. Prices plunged 20 in mid june. You talked about the factors of pushing this oil price decline. How much is this increase from supply . What i talk about is its its demand factors and supply factors and the currency factors as it relates to the relative trength of the u. S. Economy. It means that the marginal supplier of oil is shifting away from said ryan braun towards the u. S. Saudi arabia towards the u. S. Its to control global oil supply. And the concern is will that theres be a supply response by the rest of the Oil Producing countries to reduce the impact of u. S. Supply . I dont think there will be. Why did that agreement break down if it broke down because its very hard, just like opec has a very hard time maintaining the cartel in that its price times quantity is what gets you to revenue. You want to pull back quantity to support price but if you cant, everybody has an incentive to maintain their revenue. What ive been talking about are quad raddick moves. How do you tin synthesize on this friday, brutality of the move of the yen, the oil, and the move up, the painless move up in equities . These are brutal moves . You have Global Economic divergences. We had Monetary Policy that was moving all in the same direction. Come on. The punch bowl is filled to the brim. It is but the fed is no longer participating. Weve ended quantitative easing and next year, the feds telling us we think its well by the first half of next year, the feds going to exit the currency. All right. Well continue the conversation here with Jeffrey Rosenberg. Our guest host of the hour of blackrock. And coming up on surveillance, bill nye. What should be the subject of bill nyes next debate . Good morning, everyone. Futures up big. Dow futures up. Heres our top headlines with scarlet fu. A surprising revelation about those detective airbags wa Senate Hearing they knew one of the device pleaded as early as 2005 but it didnt investigate for another two years. They told the senators the airbag was considered an analystmy. Ali baba raised its bond sales. At least 57 billion for the ecommerce giant. It teased a banner year for Corporate Bonds of 3. 8 trillion. Bill bruce winning a half billion mandate. The bond manager will manage an investment of 500 million from none other than george soros. He is trying to rebuild a brand damaged by missteps. The 70yearold co founded pimlico in 1971. Those are your top headlines. This is a gift. Jeffrey rosenberg with us from blackrock. He cant talk about fund flows and the competitive gat combat. But what you can talk about are tease strange words that were hearing about now, the total words challenged unconstrained and multisector. What are we going to be doing in the next one year in five years to grab elsa in the bond market . Fixed Income Investing is going to be more challenged in so all the terms that you threw out, unconstrained investing, multisector bond investing. Investors are diversifying their menu. Because they have risk . It adds risk but it diversifies risks so youre trading off one risk for another risk to try to balance the risk in a portfolio. You got more skeptical on the high yield. Yeah, we talked tactically about Asset Allocation and wound the things thats been very successful over the last six years is high yield investing and we talk about the risk and raurt tradeoffs and how that has changed as the rewardtohigh yield has expressed and weve been more compressed and weve moved to underweight in may in october, september, we moved back up to neutral given some of the changes so we want to be moving around a little bit. And our Jeffrey Rosenberg from blackrock really helps us out from a fixed income market. This is a real treat. This is when science was dead and he reinvented science after the collapse of the American Space program. The debate did not start or will end with a decision by a board to promote creationism. Our guest, bill nye has written an unbelievable for and in support of evolution. Mr. Nye is the science guy. Bill, great to have you here. So good to be here. I love the purple bow tie and the cover, its very good. Thank you. Well get to cornell hockey in a little bit. I love in your book that you go front and center to the great michael fairday in what he had to deal with in 1830. How do we get from michael to Charles Darwin to a school board in america saying bill nyes a liar . I dont know. That we have the most technologically sophisticated in the world and that we have this pocket of people that doesnt accept the fundamental idea in all of life science is troubling. It and wouldnt matter except the same people work very hard to indoctrinate school kids. They spend millions of dollars. Is it at the defense to the federal or tate level . Its on every level but every level. Texas is really important. This is really a philosophical problem. Theres a Scientific Method and not accepting the Scientific Method. Ok, that could be a philosophical problem but its a problem because we cant raise a generation of young people that doesnt understand Critical Thinking and science and how we all got here. Everything here came out of some engineers head, right . His name was bloomberg. Yeah. [laughter] that was a shameless plug, by the way. Put the icon up. Thank you. And the same guys who deny evolution deny Climate Change. And you guys are in business. Climate change is going to affect business. What kind of response have you goten from the creationism camp following that debate . Mostly, they post up on facebook. He wants his flock to pray for me. But have you changed anyones mind . Has it even shift . Millions of people have watched it. And theres some reason for that. Millions of people. And i believe ive raised or we have raised awager awareness that this pocket of people exist. How lonely do you feel . Are there voices in washington that want to be in support of bill nye but cant speak . Oh, yeah. I have supporters everywhere. I feel like i have way more supporters than the other side does. Bill nye has a posse. Bill nye has a posse but heres whats happened with regard to evolution and Climate Change and all this stuff. These guys have introduced the idea that scientific uncertainty about something, plus or minus such and such person is equivalent to doubt about the whole thing. And it is exactly the same tactic and its the same people as the cigarette industry employed for cancer. Not connecting cigarette with cancer, yes. The debate can ken ham took place this year. Our twitter question and we will get you to weigh in on this later on. What will be the subject of bill nyes next debate . Nd therefore, his next book. The efficacy of vitamin . A bow tie throwdown with tom keene. Good morning, everyone. Bloomberg surveillance in new york city. Im tom keene and scarlet fu with Brendan Greeley. All right. Lets start with president obama, throwing down the gauntlet to what will soon be a Republican Controlled Congress last night, the president outlined executive action he is taking on immigration. Here is the president last night. Here is the president last night. Are we a nation that except the cruelty of grouping childrens parents away from their parents arms, or do we value families and works together to keep them together . Aereo is seeking bankruptcy protection. After the Supreme Court agreed with broadcasters that their online streaming tv service violated programming copyright protections. The courts ruling in june and did a victory to broadcast giants including cbs, abc, comcast, and 21st century fox. That was the sound of thunder rattling the cages of buffalo, york, where jeanette along with rising temperatures may lead to flooding. Ralph wilson stadium is filled with snow. Sundays game against the new york jets will be played monday in detroit. Is global warming, global cooling. I dont know what it is. With me now is bill nine, the science guy. It is very hard to connect one threeday event to Climate Change. To theresespond dying in iceland and people say there is no reason to be worried . What i want you to do is talk about Climate Change. We could change the world if we would. When people talk about Climate Change and global warming, they say, look how cold it was. Because the jetstream dipped further south than it normally does and brought all of that cold air. Your message for us, the media, is to talk about Climate Change. I feel like we talk about it all the time, what are we doing wrong . Why isnt the u. S. The leader in this . I blame all of you. If the u. S. Were the world leader in addressing Climate Change, all of this would not matter. Ifrading with india the u. S. Were ahead, it would get done. Of carbon a video dioxide levels out near the north pole. Those of you on radio it is on the video. Those that believe Climate Change is a manmade problem has dipped, so the maybe that tells us something about the way the argument was run. People in the fossil fuel industry have really thrown money at this thing to introduce doubt. Its a tragic thing. Future generations are just going to be thinking, what were you doing . Americae china and agreeing on some Climate Change. It all goes back to coal. What do we do about the chemistry, science of coal . The whole idea is to discourage fossil fuel use. That innovation would happen. Fee we could do is have a for a ton of carbon. Oil companies have planned for 40 a ton, but we would start at 10 a ton. This Collection System would benefit the middle class because we would redistribute it. People who use less fossil fuel would get money back. Rich people, who tend to produce more, would get less. Crisis, wean with a russians,t the because in 1957 and sputnik. Where is the crisis in Climate Change to jumpstart the debate . Thats the trouble, it is not a catastrophic debate. This is death by a thousand cuts. There is a model for fee and dividend. Anyone . The alaska fund. They take money from the north slope oil and gas and redistribute it to alaska residents. Alaska is not really a progressive, democrat blue state, Certain University towns, but mostly the rotarian, every person for himself. And even they have this extraordinary distribution system. Nye is here today in support of his new book. We will talk about the hot topic of the moment which is education and science. Check. S get a data u. S. Futures are higher by 15 points after china cut Interest Rates and mario draghi made some comments. This is bloomberg surveillance. Oneguest today is bill nye, of the countrys bestknown explainers of science. Educating the world about evolution and Climate Change. He is also the ceo of the planetary society. That mythe only guest kids have ever cared about. They dont care about david rosenberg, they definitely dont care about tom keene, but they were excited about you. One thing they point out is that when they watch your videos, they are chuckling about how you meant your foot against the trashcan while the girls are rolling their eyes. 11 year old girls are 17 in mindset. I have boys. How do you appeal to girls, how do you teach girls science . This is our goal. Science is the best idea humans have ever had. Have humans are women and girls, so half of scientists should be women. We chip away. We get very good response from girls and women to the science guy show. Many of teachers today are women. How do you get them to teach science the right way . Been a huge problem, and people talk about it all the time, how to get science to a place where they can teach properly. Everybody is required to teach the following things in a universe very curriculum. But sciences at the elementary level have been set aside for other reasonable things, reading, writing, arithmetic. But everybody who works at nasa, google, spacex, all the people got excited about science before they were 10. This is a value, inexpensive to teach. We can do this. The other problem with the Scientific Method, with Climate Change, evolution, there is also the vaccination rate. Vaccination the mmr rate is 81 . I am working to change the world, but this mistrust of science is really bad. Going back to microbiology, this is kind of an outrage. Libertarian people believe they have a right to not vaccinate their kids. I have a right not to have my kids go to kindergarten with people that do not have rubella, smallpox. Whats fascinating to me it is washington, oregon, people that are behind you on Climate Change but not on vaccination . Education will catch up with us. The facts will catch up with us, imean. I mean. Brandon, you have eight kids . R, two in kindergarten. We grew up with slide rules. Hp calculator . It was like an act of god. Today it is getting kids off the computer. What is your advice . Why get kids off of computers . No. Make sure thatut they go outside and run around. The bad old days, we would go to the library and look things up. Did you have a gilbert chem set . My brother did. Lisa had to go to the library to look things up. Now you dont have to, but you get much lower quality information at a much higher volume. Extraordinarily high volume. So the skill to teach now is how to sift through all of that. This is the problem with vaccination rates. There is a lot of that information easily available. We need to get good information. It is not me, its science. Climate change. Bring it up. What should be the subject of next debate . This is bloomberg surveillance. Aereo could be going the way of the dodo after being shot down by the Supreme Court. The company is now filing for bankruptcy protection. Betty liu is with me now. You are speaking to somebody with a lot at stake. Nonnatural disaster got rid of the area but it is extinct because of us, the Supreme Court, i should say. The Supreme Court basically got rid of aereo. The company came out with a statement this morning. The ceo of aereo said basically, the Supreme Court killed the company. Surprise, they said that there is really no plan b if the Supreme Court went against them. No matter where the company goes, they were a game changer in this whole overthetop content for consumers. I am convinced cbs would not have allowed their online channel if it were not for aereo rattling the cages. On bundling their packages as well from cable operators. Been doing the last couple of months . Not a lot. Just kind of treading water, seeing what Legal Options they have. They basically figured out they have little Legal Recourse to survive. A few weeks ago, they announced they would be laying off most of their staff. Today, they filed for chapter 11 reorganization, which basically means bankruptcy. I want to give a shout out to whog moffett, among others, added huge value in this soap opera. To our understanding of how all of this worked. It also show that broadcast is not dead. Is pulling stuff out of the air and putting it onto a hard drive, which is in much the same thing that aereo proved, but only legal. The technology was there, the idea was great, but the only thing they did not have were the rights to the content. That is what the broadcasters own. As an author and writer, i respect copyrights. Sorry. Those are good rules. I go back to thomas jefferson. The reason you create something is to have value. In our society, you cannot just take stuff and use it. They were just providing the pages by which you could write your content. Making it easier for people to access. Will be joining me exclusively on tuesday to give us a retrospective of what happened. He will divulge everything. And give us a sense of what he is working on next. What do you think he will say . He will talk about how tough it was and he will be critical of the broadcasters that own these rights. Squashed freedom of speech, innovation. We will be right back. And aventyl morning here. Dow futures up 119. Jeffrey rosenberg making clear, draghi speaks and moves the markets. China speaks, they move the market. The move is said to be mutual agreement and, six months after the auction house ended a proxy fight with daniel lobo. Had been at the companys home for 15 years. He will continue on as a chairman and ceo until a successor is found. A National Hockey League Player blames bankruptcy and blames mom and dad. Columbus blue jackets defenseman jack johnson signed a contract worth earning Million Dollars in 2011, but he gave power of attorney to his mother. Johnson says his parents bought a California Home without his knowledge and also borrowed 15 million against future earnings. He has reportedly cut off contact with his family. Chinas central bank has cut Interest Rates. The oneyear lending rate was reduced by. 4 . Chinas economy is on track for its slowest growth in two decades. Until today, the central bank had focused on selective monetary easing as opposed to an out right cut. Bill nye the science guy is with us today. Enormous fans of bill nye. Right now we are fans of Jeffrey Rosenberg, as we look at the science of finance. What have we learned about the uncertainty and likelihood of our financial projections . We have all gotten a new dose of scientific humility. The markets have been uniquely influenced by policy and proxy choices. Made by people and it is inherently unpredictable. That is the unique environment of the post going back to your High School Class i also went to college. We all assume a bell curve, but the fact is the world is not a bell curve. Prediction for economic models were deeply wrong, but i have heard because they got Economic Modeling so wrong, climate modeling is also wrong. Are we better at Economic Modeling than climate waddling . I guess so. Climate modeling is based on science and physics. As an outsider, Economic Modeling that looks pretty good. The difference is, economics is inherently about people and decisions people make. The trouble with traditional economics is it has tried to adopt areas from hard science and apply them to social sciences. 2008, whyscovered in behavioral science has grown, is because it has had Better Outcomes in being able to predict. It deals with the essence of human behavior. There is an old saying that economist had physics envy. The worst thing you can do to an economist is called them a sociologist. Cornellend of mine from told me once, looking at the physics department, that it was sterile and mathematical and wanted to get more to the human condition. The ecb and the imf have recognized that not all people respond the same to the same economic stimulus. Is actually very important to me talk about the debate right now. What is the theory behind Central Bank Intervention . It,anke illustrated articulated it in his portfolio. Assets soiskfree unattractive that people come in their portfolio have two reallocate to risky assets. In the u. S. , we respond to that stimulus with spending. The problem is you do not see that same response in the rest of the economy. Our reliable response is twitter. Our question of the day is what should bill nyes next debate be about . He already did creationism versus evolution he read here are the answers. Tie the bowtie. And i given the first knot . He has a fluffier bow tie. Hands down, bill nye is done. The knot. E to dress everybody time me putting on my tie. Done so sheer. The deal with the bowtie is, it does not slip into your suit, it does not go into your flask. And when you get dressed up, what do you do, you wear a tuxedo. What you wear with a tuxedo . A bowtie. You know what else does not slip into your food . A no tie. Lets move onto the second answer. Are nasa dollars better spent looking for intelligent life in space, or in congress . You have to have a human spaceflight program. Planetaryof the society. I am all about robots. We want to look for signs of life. We want to send more missions to where theselly find bacteria are. Theyre in mind, privatebased travel, i love you all, but a company like spacex, has taken 2 billion from us to get to the International Space station. Everybody gets their on hardware built by the lowest bidder. Now it is a cool idea, get rich people to go up into space, not into orbit, but just look down. Shepard did that a few years ago. You and i stayed from home to watch that. I long for the good old days, but we have to move forward. The thing we have to do is feel like we can do things together. We had to move forward to our last twitter answer. Can humans survive Climate Change if we deny it . Run thing,be a near as we say in sailing. It will be close. Utah hockey, we are going to have some coffee. Right now, we are going to have a digital extra. Knottying with bill nye. How do you feel about manner more sheep shank . I dont use that. Jeff rosenberg and i are just shaking our heads. Is a problemange that involves everybody and i want people to get excited about it. The businesses that could be created, if we came up with a new battery, the businesses that would be created if you could conserve all of this energy that we waste. Think about how much more efficient these studio lets are than the old days. Remember how hot it used to be . We can change the world, lets get going. Are you getting support from washington . I know that you took a selfie with president obama. He took one with me. [laughter] it was very cool. We were living at a time which is different. Tom is always complaining about the good old days. People have it in their head that government is inherently bad. There are a lot of people that have that worldview. That is not right and i just disagree with that. I dont want everybody to have to buy their own sewer system, everybody to buy their own telephone line. We want to be in this together, that is how we accomplish great things. This internet machine was completely unpredicted. People say, what is the next Great Innovation . I dont know, lets press forward. It will show up. Bloomberg surveillance continues on radio. In the loop is next. Is friday,ning, it november 21. You are in the loop. Im betty liu. With igniting a fight republicans over immigration in a speech heard round the world. We will get the gop response from mitt romneys former economic advisor. And interview with richard davis. What he thinks about the future of his industry and why he is comparable bankers to rodney dangerfield. Big news this morning for streaming service aereo following a Supreme Court decision this summer. We finally have an answer about the state of the company, and it is goodbye. President obama calls it executive action. Republicans say it is a power grab. In a speech last night, the president outlined steps he is taking on immigration. He is nothing the immediate threat for deportation for about 5 million undocumented immigrants. The visa process will be streamlined for foreign workers. And those that are