Security threats, will be deported. Response tot those that accuse him of overreaching. The actions taken by every single republican and democratic president for the past halfcentury. Of congressbers that . Authority to make our immigration system work better, or arch and the wisdom of me acting where congress has failed, i have one answer. Pass a bill. Republican say they will use that power they had to stop the president but they do not say what they will do. Here is john boehner. The president said before he is not king and he is not an emperor, but he is sure acting like it, and he is doing it at a the American People want nothing more than for us to Work Together. Turning to china, surprise move by the countrys central bank to boost the economy. China has cut Interest Rates for the First Time Since 2012. The benchmark lending rate was cut to 5. 6 . China is on track for its slowest growth in two decades. Has filed for chapter 11 bankruptcy protection. In june, the Supreme Court agreed with broadcasters that aereos streaming service violated copyright laws. We will get the back story of how it all unfolded with an exclusive interview with the ceo on tuesday. Western new york cannot seem to get a break. Seven feet of snow on the ground in some places. This week it could rain which could lead to flooding. Meanwhile, the Buffalo Bills have moved their game to sunday in detroit. Back in washington, lawmakers drew their battle lines on immigration following president obamas speech. Some took to twitter to respond. Rand paul said democratic senator Barbara Boxer said so what exactly happens now . White house correspondent Phil Mattingly is in washington with the latest. What is next for the white house after this speech . As one democrat told me last night, now the work against. The president goes to las vegas this morning where he will be speaking at del sol high school, the same location where he laid out his comprehensive Immigration Reform principles in 2013. The school is about 65 hispanic. Words, it is a target demographic for what the white house wants to do. Something that you will hear today, the president knows he needs to push back in a big way on republican messaging that this is essentially amnesty. Listen to what he said last night. Some of the critics call this amnesty. Well, it is not. Amnesty is the immigration system we have today. Millions of people who live here without paying taxes or playing by the rules, while politicians use the issue to scare people and with the votes at election time. That is the real amnesty. Leaving this broken system the way it is. Mass amnesty would be unfair. Mass deportation would be both impossible and contrary to our character. It is something to keep in mind. You will hear that over and over in the next couple of weeks. Need tos are aware they figure out a way to counter this republican argument, which has been effective with most americans. Republican opposition was fast and furious, several options. One is likely to happen . Thats the big question. What you hear from republican aides in both chambers is they want to take it to january. They want the new congress to come in. Senatetch mcconnell is majority leader, john boehner will be in the house, and then they want to work on legislation. They want to turn this into a funding fight in december where a Government Shutdown is on the table. You have seen lawmakers push back on that and they say january is the time. Top lawyers in both chambers are looking at any place where they can attack this legislatively or legally. When they decide to deploy those actions, that is the question they will be figuring out. Thank you very much. Lets get more on the republican reaction. I want to bring in the former policy director of mitt romneys campaign. Late last are out night listening to the president. There is a slew of options for republicans. As steve king said, they could try to impeach the president , they could file a lawsuit, they can go it alone with her own immigration legislation, they could define those agencies that would implement immigration policies. What is the realistic option . I think republicans have to tread carefully. The reality is, some of this talk about crazy options republicans should not respond that way. They should look at this rationally and say they dont agree with what the president has done, more importantly, the way it has been done. One option is to look at options to specifically defund the parts of the government that will enforce what the president is trying to do. Thatther option republicans need to pursue is their own Immigration Reform legislation. That will be important in the new congress. Those are certain the two realistic options, but if they pursue either of those, do they continue them to form the great wall with the hispanic voters as they head into 2016 . Dont they have to tell a delicate line there . It is critical for republicans to make this argument. When the president has done is put in place another shortterm patch. This is not about Immigration Reform. There is no permanent longterm solution either for the status of those 11 million here forcumented immigrants, or any of the other problems our immigration system faces. Onublicans have to focus ,ixing the system permanently in terms of border reforms, employers do not hire these immigrants, and then fixing the visa system. That all sounds great, but here was the twitter reaction among various gop senators and congressmen and women. Ator ted cruz tweets over and overt again leading up to the speech. Speaker boehner will be speaking in the next hour. How is he going to bring in the hardline republicans, like ted cruz, and bring him in line to really focus on comprehensive Immigration Reform, the kind of rational reform you are talking about . First of all, republicans have to recognize this is an issue that is very sensitive for a lot of people, that there is a humanitarian issue involved as well. Ultimately, we have importance of rule of law. Republicans have to stand for the rule of law, but they also have to stand for real solutions. Some of the extreme rhetoric that you see on both sides is inappropriate right now. What we have to do is sit down and find solutions. Unfortunately, i think the president made it harder for us to get to a solution, but that should be the goal of democrats and republicans. It is not as if the president has been lax on the border. As republicans have noted. He has deported almost 2 Million People since his presidency. Illegal immigration has low down during his presidency. And you cannot argue that legalizing immigration is not actually a boon for the economy. We have talked to so many economists about whether this move will be a boom or bust. Almost all of them, whether conservative or liberal, have come down on this as being an economic benefit. Fixing our immigration system permanently is what the economy needs. We need a system that allows us to get access to the best and brightest labor or also to ensure that we are filling the needs of all sectors across the economy, and that means rightsizing the visa program, allowing people who are innovators to stay here, but also ensures that we have a Guest Worker Program that functions properly. I dont disagree at all with the notion that we need Conference Ever form in order to have economic benefit. But the question is, has the president made that easier or harder . Heimately, by doing what did, i think he is making it harder to get to a real solution. Thank you for joining us, lanhee chen, former advisor to rip mommy. Mitt romney. European markets are getting a boost. Surprise rate cut in china and a hint by ecb president Margaret Drive he that further mario draghi where further stimulus could be possible. I want to go to london right now to talk about this. Stocks in europe are climbing two and eightweek high. Is this more about china or the ecb . Thet is hard to disentangle two. Two big pieces of news giving stock futures a lift. It was just after 8 00 that we got mario draghi. Let me read you what he delivered early on. We will do what they must to raise Inflation Expectations as fast as possible. The next weeks before ecb meeting, we have some staff productions. Everybody is betting that we will get more stimulus from the ecb, and in short order as well. Things were calming down after the speech and then we got the pboc, cutting rates for the First Time Since 2012. The chinese really focused on the short term rather than worrying about the longterm story. Both are boosting the european tory. Hard to disentangle which one is responsible for this uplift. The china story is interesting in you have the chinese bank easing, japan easing, and the ecb. All three of them visavis the fed, looking to hike Interest Rates. You have sort of a 31 you have sort of a 31 scenario here. Maybe people are reading the stories and filling in the gaps. Maybe the stories and filling in the gaps. Is going to compensate a little bit of that. That will bring some good news. You would think that would keep the story going for equities, but it will have an impact on currencies as well. Maybe that policy gap will push the dollar higher, and many to think about oil than we think about that story as well. Some of the Commodity Currencies have been rallying as well. The aussie dollar rallying against the u. S. Dollar today. That was the reaction when we first saw the pboc cut. It could change the mix elsewhere and prolong this dollar rally that we have been watching carefully over the last few. Thank you, guy johnson. Much more ahead, the fate of aereo revealed. The Company Filing for chapter 11 bankruptcy. And lets paraphrased Rodney Dangerfield. How come bankers do not get any respect . We will speak to the ceo of u. S. Bancorp. s signal is fading. The Online Tv Service filed for bankruptcy protection this morning. For more, we are joined on the has beensomeone who following the company from the beginning. Aereo has been trying to revive their business since the Supreme Court decision came down, basically shutting down the company for violating copyright laws. So this is it, this is their goodbye . [inaudible] it is a little hard to hear you. If you could move to a better signal, that could help us out. With aereo going away, there is no doubt they changed the game. They really change the game with online streaming. What kind of lasting affect you have cbs now launching their online channel. What do you expect to be the aftereffects . I think what they have proved is an appetite for customers to have online television. [inaudible] n thosers can lure i customers. They can come in and shake up the industry. [inaudible] i wish Cell Phone Services would actually work when they need to, alex. Thank you so much. Appreciate the effort. Way, on tuesday, we will be speaking exclusively with the aereo founder, chet kanojia. He will look back at the companys journey, not only for him, but also for the industry. Tune into that exclusive interview on tuesday. In the meantime, the big number is 500 million. That is how much george soros is getting bill gross to invest. Janus ass bolted for few months ago and said he is honored to get the money. Soros says he is not putting it into ananus fund, but account that gross will handle personally. The banks ithandle regulates to easily . And american bankers are looking for a little respect. U. S. Bancorp ceo Richard Davis tells us why. You are watching in the loop on Bloomberg Television and streaming online at bloomberg. Com. Im betty liu. Bnp paribas cuts most of the junk trading team. The french greg is working to reshape its investment bending banking business. They hope to profit in corporate debt. The ceo of the struggling car Company Hopes to restore confidence. The company has been plagued by an aging fleet and sloppy accounting. Is credited with boosting sales at united. Thels shares raised to highest level in 14 years after they gave an optimistic Sales Forecast for 2014. Said their personal computer business is performing better than expected. ,hey also announced jim parsons from the big bang theory, will star in their new ad Campaign Starting on monday. It is 26 minutes past the hour which means Bloomberg Television is on the markets. Equity futures are higher, bolstered by what has happened overseas. You have the ecb president mario draghi saying they will continue to boost the eurozone with more stimulus. China effectively did that as well by cutting Interest Rates for the first time in two years. All of that helping the rally here in the u. S. On the markets again in 30 minutes. Remember Rodney Dangerfield comedy comedian . Here is a question, why are bankers like Rodney Dangerfield . Theounds like a joke, but ceo of u. S. Bancorp says that bankers are like rodney. Richard davis sat down with Erik Schatzker and told us why it is no joke. Us old enough to remember Rodney Dangerfield, one of his gigs was, i get no respect. I think the bankers have, for a long time, suffered from some of the lack of respect. Number one, there is no fouryear degree for banking. Credentials behind you on the wall or on your desk. Number three, 95, if not a higher percentage, of bankers, say credentials behind that thes accidentally, me among them. Very few kids want to be a banker on the playgrounds. What they really wanted to do was something in life that matters. To a while it takes people come into the industry. But every once in a while, they say this is my vocation, this is what i want to do, and that is when the magic happens. I bet you can find as high a level of attention in this industry but its a different starting point. People do not necessarily get into it with a reverence of being a teacher or fire person or a physician or something. Who is more responsible for the lack of respect, the customers or the bankers . It is both. E should stand up and own it we should own the pride and ability of what we do for a living, which is help people. When times are good, banks say yes to people all the time. I have a desire to get something, a dream to pursue. Yes, it makes sense, you have the wherewithal. In tough times, whether they want it or not, their ability to achieve it is different, and we had to say no more often. At the same time, we are protecting you more than we know because we do not think you are equipped to take on that new service of expectation. We are doing you a favor by not putting you in harms way. Times are getting better, are you saying yes more often now . Absolutely. At the macro level, which the fed is watching for, people, companies are taking action to be ready for the next opportunity. Our lines of credit, which we peoplelions of dollars, need it. Our lines of credit have been growing faster than our loans. People expect to have an opportunity to buy in levels that they did not have five years ago, record level today. Consumers are starting to use their credit card and are feeling more comfortable about a backstop at home or in their incomes train, that they can have some more safety in buying things. If thats the case, why is Revenue Growth so hard to find for your bank and we are behind everyone elses. All of my loans are my commitment, not just in thing a way back. Economy,le look at the they are doing as much of that. They are not sending themselves to the bank. Use your money. When you are feeling good, you use the bank money. Until that happens, we dont have a chance to be as relevant in an economy that is still finding its way to the future. We make money when we are serving people. When the economy drives, we thrive. When the economy struggles, we struggle. Your return on and be equity is the envy of the industry. Could it go back to where it was in the 2000s . It somewhere between where it was before the recession, and where it is today. I think that is for all banks. If you take the difference for two, summer in the middle. That recorduity is high levels of equity based on the good work of the regulators. Revenue is at low levels because the economy is working three. Once the revenue picks up, divided by a higher equity, you get somewhere between today and where were before. The clearinghouse represents the nations biggest commercial banks. How closely aligned are your interests with those of wall street, when it comes to regulation and constraints on your ability to make money . There are a couple of reasons. Im completely engaged in everything that is happening regulatory. , globally designation and systemically important. We are the First Commercial Bank that is not g. Technicality, i could find advantages for being not one of those Companies Based on lower capital requirements, and some of the lesser screen name. Believe in the trickledown theory that whatever happens above me will be some derivative down to a bank my size. I paid close attention to that. Im an advocate for being done properly and fairly, with enough opportunity for us to adjust. I think its the right thing to do. Are your interests aligned, or at odds . They are aligned. During this recession, one of the best advocates we could have had is a Banking Industry would have been our customers. Our fortune 50 customers around the globe. Imagine if they had been able to stay in a better place. Size,d all banks of all we need the big banks, regional banks, community banks. Im in that regional section, and i have found myself often advocating for the largest banks, because in the ecosystem of banking, i think any country that has a wider range of banks has a healthier economy. That was Richard Davis of u. S. Bancorp with Erik Schatzker. Much more on the Banking Sector ahead. Have regulators gotten too cozy with our nations biggest banks, again . A hearing will tackle that very question. And barbie under attack. A rival doll is grabbing all the headlines these days. Theres a new girl in town. Stay in the loop. New yorks Central Bank President testifies as a basis president as it faces criticism that he got too cozy. Peter, tell us about this senate hearing. First of all, we have the fed preempt of lee striking. Yesterday, they are announcing internal investigations. , by thereventive strike fed, in the face of criticism that it has gotten too cozy with the banks it regulates trade. There are some reddening to legislate to take the feds power away. Front of testify in the Senate Making subcommittee, and ignored some of that criticism. He will say we understand the risks of doing our job poorly, and becoming too close to the firms we supervise. We work hard to avoid these risk a mind to be as fair, conscientious, as possible. We are not perfect. He will defend the fed, and outline the steps that he and others have taken to try and bolster. Report thursday in the New York Times that a former new york fed employee leaked internal information to a former fed colleague now working at Goldman Sachs. Goldman sachs discovered it, provided information to the fed, oath of those folks were fired. Folks werethose fired. In september, we had a public , 46 hours of audiotape she recorded within the fed, negotiations between fed officials in the banks they regulate. She said those audiotape show that the fed officials were captured, were too fearful of the banks they regulate. She shared the tapes with propublic a, also with this american life. A feding this clip of supervisor talking about Goldman Sachs deal under scrutiny. My own personal thinking on the matter is that we are looking at a transaction that is legal, but shady. I want to put a big shot across their bow on this. 46 hours of tape providing an unprecedented look inside the new york fed. For her part, she was fired by the fed in 2012. She sued, saying she was wrongfully terminated. A judge threw her case out. She is appealing the case. Notably, she is not among the witnesses testifying today in front of the senate subcommittee. Of course, we do have the president of the new york fed. Leader, put it in the context of this fed review. Willweeping review that make of said practices and how they regulate banks. What is this about, exactly . What will it in compass . Trying to the fed show we can police itself, it can take a good hard look at whether or not it is too cozy. 11 inspectors general review, and a separate review within the fed. Looking at whether Bank Supervisors are able to truly share their thoughts with higherups. And whether or not there is a groupthink here. Whether they are being suppressed. , as sheng voices suggested was the case of the new york fed. Warningscure here about banks to change their culture. If bad behavior persists, it may be inevitable for one to conclude that large firms are too big and complex to manage effectively. He is putting bring the banks up on the table. Its interesting to see how that plays out during the course of this hearing. Whether that is an idle threat, or something that could come to pass. There are members of this committee that would like to see just that. Many say that bank alter is toxic for anyone that goes in to it. Peter cook, chief washington correspondent on the hill. Someone who has been a huge critic of banks, and the lobby to reign them in since the financial crisis, is the president and ceo of better markets, the nonprofit the lobbies for financial reform. Do you give, dennis, a thumbs up to the fed for launching this review . Let me start by saying, im not a big critic of banks. We are talking about less than a dozen of the too big to fail while stray banks. You were a critic of big banks. Is a critic of big banks, we are also a critic of the new york fed. We are hopeful this latest thorough, robust, and public we disclosed. We are not very optimistic. The new york fed has an unbroken record of failure here. They had the primary regulators of the too big to fail banks on wall street, which failed spectacularly and required the largest taxpayer bailout in history. When you say unbroken record, how can you say unbroken record. They have had various successes throughout the past two years. Look at the 3 billion plus in fines and settlements just this year alone. Thats not the new york fed, and thats not the fed. Thats other areas. Lets look at the feds record. Not only did they not regulate and supervise the banks to prevent the crash of 2008, they had specific information about rigging the market, they did nothing. They had specific information about jpmorgans high risk trading in their london operation that led to the 7 billion london whale loss, and they did nothing. They had people in size saying we should supervise and regular Goldman Sachs. They fire the person, and now today, in the Senate Banking committee, they will ask questions of the new york fed, where goldman hired a new york fed official who apparently has confidential information from the new york fed that they then used for goldman clients. So you have a captured regulator who is now going to do a self review to determine whether they are captured. I am not optimistic. What are you not optimistic about . Would you say this is a step in the right direction, that the was theseizes there incidents, and how they took their eye off the ball . They have been able to tighten regulation on various banks, with the stress test, for instance. They didnt allow citigroup to return more o shareholders than before. They have made those banks stronger in the last two years. Isnt this a step in the right direction that they recognize their missteps and are trying to address them . What we need is public accountability for the new york fed. We need an independent outside come a rigorous, robust, data driven analysis of what they are supposed to do. What does that mean . They are the frontline supervisors and regulators of this handful of to be detailed banks that threaten the economy as everyone saw in 2008. Too Many Americans are still suffering from that today. We have too many banks and regulators who investigate themselves, and then give themselves a clean bill of health. Goldman sachs just a us just did this. They are holding the second day of hearings today on these two bigger fail too big to fail banks and commodity markets. Not only are the banks doing it, but the Federal Reserve has allow them to do it. What do you propose some separate agency . I think that what has to happen is the appointment by the fed in washington, not by the new york fed, but the fed in washington should appoint a Blue Ribbon Commission that is ,roadly representative including the public and making experts, to do a thorough review of exactly what is wrong at the new york fed. You cannot have repeated egregious failures like citigroup, like Goldman Sachs. We could go down a long list of failures. Failures that warrant the firing of bill dudley . Calling for the firing of people is the thing we dont do. I dont think it is appropriate in advance of an independent investigation of what they are doing. Getwill say this able to tired of hearing the leadership of the new york fed talking about being tough on the banks. What we need to see his action that shows that they are tough on the banks. Then we need to see the banks get it. Im talking about this handful of too big to fail banks. Banks that are working hard to serve the American People. We have a handful of too big to fail banks that are serving themselves and their bonuses, creating big risk. Themselveslicing because the regulars havent done their jobs. Dennis, thank you. , president and ceo of better markets. Cash is for losers. You will have a closer look at this weeks bloomberg stayessweek cover story, in the loop. Could cash be a thing of the past . Paying of your smartphone with o arelike memo venm making it easier to pay and get paid. To see theirple friends transactions, making it popular among the young folks. But thats not all. This free app is minting the mobile payment race. In just two short years, then venmo is matching starbucks in mobile transactions. I guess, im a loser. Oo . T ended was how then mow explained to us how venmo works . Its the first app that has gotten widespread adoption, group of college kids, professional, millennials. Phone,nloaded on your your friend has it on their phone, and you can quickly start sending money back and forth. Its easy to use, the interface is clean. And then theres the secondary aspect, which is the social networking aspect. Every time you make a payment to a friend. You have to fill in a field to say what its for. That get shared with all your friends. It almost looks like twitter or facebook, you see what people are doing. Jokes. E uses its inside jokes, punchlines, him ogs. Emojis. Theres an entertainment aspect, and i trust aspect. How is venmo making money off this . Theyre not. All the transactions are free. Gethe plan is not really to the plan is not to make money . Not to make money from consumers when they pay each other. The want to expand different places they can use venmo, and roll it out to you can pay merchants. Ideally they will get enough people using it that the merchants will have leverage to get it in the stores. They will try to have a transaction fee. How is apple pay change the game for them . Is a different approach. Thats the point of sale approach, going into the retailers first. People,alk to the venmo they say that the harder for step to get people to make. Its easier to get people to use a nap on their phones. Their phones. They think its a stepping stone it to a cashless society. Taxi the other day, and said this taxi doesnt take. I was the only one. You can read his article online. Areas of signal fades. Sales e tv pioneer files for backup c. We discussed that in a moment. Its 56 minutes after the hour, which means bloomberg tv is on the markets. About half an hour away to the opening bell. We are higher, significantly higher after two big moves. One comment, and one big move overseas. Mario draghi saying we are going to add more stimulus into the markets, and the chinese adding more stimulus by cutting Interest Rates for the first time in two years. Those are propelling sentiment here. We are on the markets again in 30 minutes. Still to come, expectations running high as the latest hunger games, movie debuts this weekend. Will the third installment live up to expectations for fans, and for the studio, lions gate . Welcome back to in the loop. Where 30 minutes away from the opening bell. Futures indicate we will open high. President obama throwing down the gauntlet to republicans in congress in a speech last night. He outlined the action he is taking on immigration without congressional approval. He is lifting the immediate threat of deportation for about 5 million undocumented workers. Those immigrants were felons, gang members, security risks, will be deported. Critics that he is overreaching. Taking aredents im lawful, and are taken by everything will republican a democratic president for the past halfcentury. For those members of congress or question my authority, question the wisdom of me acting where congress has failed, i have one answer pass a bill. Say they will use their powers to stop the president. House speaker john banner says the president john boehner says the president is acting like a dictator. For the first time it since 2012, china has cut Interest Rates to boost economic growth. It cut to 5. 6 . Like aereos attempt to shake up the tv world has come to an end. It filed for bankruptcy protection this morning heard. They said that aereos service violated broadcast protections. There are seven feet of snow in some places. This weekend of rain could lead to flooding and ice. The Buffalo Bills have moved sundays game to monday in detroit. So bizarre. We are under 30 minutes away from the start of trade. Lets count you down to the open with the top 10 headlines hitting our radar for the bell. Scarlet fu is joining me this morning. Number 10, carl icahn. He just keeps winning. Theres a bid to restore Investor Confidence in the car rental company. I got a stake in the company in august. He has been pushing for management changes. If you looks familiar, thats because he was the coo of united. Refurbished many planes. The magicalis that rub off. This is the most hilarious part of the story. It was not meant to be a joke. The guy is supposed to be customer friendly. He is customer friendly, by instituting baggage fees and cramping our leg. Thats customer friendly . Shareholder friendly. Me a break. Some shareholders are customers. He did clean up the planes, make sure they were cleaner in general. He made sure there were more ontime arrivals as well. Thingssure he did other im trying to think of how the logic would apply. Nine, sothebys has confirmed their ceo will step down. Dan loeb, who sits on the board, had been pushing for this. This has been a year of activist investors getting their way. ,ou have dan loeb, carl icahn this is just another example of sothebys paying attention and saying we need to do the things. The interesting thing is its the art auction world that is getting shaken up. You dont have a lot of corporate shuffling. People are in those positions for a long time. 34 years of the company, 14 years as the ceo. He push the auction house to move beyond london, new york, and hong kong. Moving into mainland china, the middle east. Heres a guy who has been the industry his entire life. He is getting pushed aside. The argument was cost savings. I was looking into a story about how sothebys sent other auction houses, their partnering up with ebay to provide online auctions. Perhapst all online, thats one way the company can reign in their costs. Exactly. This was a battle that ended for aereo. They filed for chapter 11 bankruptcy. A Supreme Court ruling in june said they were violating copyright laws. Its bad for aereo, and for the company. Essentially, they were able to stoke the fire. And perhaps accelerate this whole move towards online video. I was depressed by the story. The dream is dead. Shame on the United States government. Its clear that dont want to be part of the innovative process. They want to go back to the way things work. They dont want to see people coming in and creating a way for the big players. On the flipside, you can subsidize. Sympathize. Invested in this context, i on to be the one to distribute it. You do have less to invest. The guys at time warner are unbundling content. Unbundle itsto package from the cable tv operators. Aereo might be gone, but its enduring legacy lives on. It creates a modernday bunny ears. Will be speaking with aereos clues ofnext interview. He will give his look back on this incredible journey. The sky has a track record of being disruptive or it. Seven, the Parent Company of the site is continuing to talk about taking that site public. They are owned by luxury jeweler maker. They own cartier. Abouthave always talked these other luxury Online Clothing retailers. When are they going to go public . Re is by feeling this is a moment from five euros ago. Everyone five years ago. I cant run for the last time i cant make a distinctive between all these different websites. At the end of the day you just go to nordstrom. Com. This is a u. K. Company. They are trying to go headtohead with burberry. They are struggling, they are not profitable. Theld argue that concept of clicking feels less hardcorepicking out cash is one that they have overemphasized. Its not a cheap place to go. These are thousands of dollars worth of goods. This is very cheap. Mattels barbie is facing a double dose of flak. A book depicted the udall as less technically savvy than her male peers. His book was published in 2010. Then a more rivaled all come with more realistic looks, including acne and struck marks stretch marks. She has been grabbing headlines from barbie. Beenat lammily doll has crowd funded. It hasnt been a huge hit just yet. 500,000 orders. [laughter] that book you referenced was actually a two books in one package. The second book is barbie, i can be an actress. Book, i can be a computer engineer, barbie is trying to design a game. Her computer has a virus, so her sister throws a pillar at her. They go talk to her Computer Science teacher, who is a woman. At the end of the day, they get saved by two guys. Barbie sales are down this year. The more competition the better. Whether my daughter wants barbie or whatever this product is called whatever. As long as she is using her imagination, i could care less. If you are looking you are looking for a quality in your toys, dont buy a barbie. Thats not where you go. Today and retail, weve a deep dive into gap. Take a look at the estimated earnings, and ask can lead coming incoming ceo turn around the struggling retailer . We will be back. To count downng to the opening bell. Number five, the gap. The retailer reported miserable numbers after the bell yesterday, cutting forecasts in the next fiscal year. Naming new global president s for both the gap and the Banana Republic units. This was the last Earnings Report for ceo glenn murphy, who yields the role early next year after seven years at the helm of. Is the president of cross what investments, which invests in retailers. Great to see. My pleasure to join. Lots of changes. Peck has his work cut out for him. Ive never seen a situation where a new ceo is named in the stock its a threeyear low. We could be an optimist and say there should be upsides from there. Had such breadth and depth of experience across the platform with his almost decade of the company. He is certainly coming in with the right tools. I think the change at the top, Banana Republic and back gap brand is starting to see changes before he takes the helm. So jeff kirwan and andy owens. What we know about them . One of them comes from International Expansion into china. Which actually, art peck was the first person to spearhead. The other is coming from the outlet division. This is pretty typical. Jeff is from where . Hes from china. It you see this, that they groomed art peck aereo to run the different divisions during his time. This is what they are doing. Given his background in both of those areas, these are people he has worked closely with in the past, and has a lot of confidence in them. And the gap brand, this was supposed to be an important fall for them because the new designers they brought in from h m this was their first collection to hit the stores. There was a lot of anticipation and excitement. It has fallen flat. We are hearing that the holiday collection is going to have more color environ see that the gap rent should be known for. We havent seen that yet. Is it about the vibrancy, the color, the line . What else does art peck have to do . It all comes back to product, for sure. Part of this is not really the gaps fault. Overallt a point in pants cycle that is just not a denim cycle. Apologies, we are just getting word now that house is speakingboehner in reaction to the president S Immigration speech. In both parties, the focus on solving the biggest problems in our country, starting with are still struggling economy. The action by the president yesterday will only encourage more people to come here illegally. Putting their lives at risk. We saw the humanitarian crisis at our border last summer. How horrific it was. Next summer, it could be worse. This action also punishes those who have obeyed the law, and to. Ded their turn the president has chosen to liberally sabotage any chance of enacting bipartisan reforms that he claims to seek. As i told the president yesterday, he is damaging the presidency itself. Obama has turned a deaf ear to the people that he was elected, and we were elected to serve. But we will not do that. In the days ahead, the peoples house will rise to this challenge. We will not stand idle as the president undermines the rule of law in our country, and places lives at risk. We will listen to the American People, we will work with our members, and we will work to protect the constitution of the United States. You know the rules are. President says you could have prevented this, mr. Speaker, by showing us the house was going to take action on comprehensive Immigration Reform. Did you miss the boat . President made 38 unilateral changes to the Affordable Care act. The president repeatedly suggested he was going to unilaterally change immigration law. And he created and environments where the numbers would not trust him. And trying to find a way to Work Together was virtually impossible. And i warned the president over and over that his actions were making it impossible for me to do what he wanted me to do. Esther speicher, and you tell us mr. Speaker, can you tell us how the house plans to respond, and whether you agree with chairman rogers that given how these things are funded, the power of the purse through appropriations is not a constitutional avenue to fight this . We are working with our members and looking at the options available to us. I will say to you the house will fight back. You started a piecemeal process last year, or earlier this year. Can you renovate that, reinvigorate it, and move that forward . Or will you start from scratch . As i said, we have a broken environment. That was john boehner speaking in reaction to the president , criticizing his initiative to go on immigration, just on his own. On his own executive orders. We will be back with much more on this. Welcome back to in the loop. Lets get back to bringing you the most important stories you know before the bell. 42 rightet about now. Loeb wel and dan were just talking about sothebys. This almosteased full it will campaign attack ad on dow, calling it broken promises. Together,now come where dan loeb is appointing for directors onto the dow chemical miller,ncluding steve who is the chairman of aig. And a friend of the show. A friend of the program. They are tasked with increasing shareholder value. They will be executing much of dans vision for dow chemical, which include splitting the company. The article said the company has defended its integrated model, arguing the company is more profitable because it produces these highermargin chemicals. We understand both of these companies are not going to give any other common than this. Its interesting because the point about 2014 has been that year. Many of these companies have established their own boards, were seeing oil at a lower price. I should help dow chemicals. Consumers are pretty healthy. You would think that the gasoline trade would be almost a tax cut. That may impact these companies. It could lead to lower cost for company liked out. What happens to the ceo here . Truth be told, the stock has done pretty well. Shareholders, except for maybe download, have been rewarded dan loeb, have been rewarded. , as dan loeb says , it could have been even better. Thats always the case. I wonder if download takes a vacation dan loeb takes a vacation . One note on the compensation side. Miller and dan logo which will get 4000 shares. 400,000 400,000 shares of dow chemical. Bell, wer the opening are on the markets. We check on futures. Are higher on this higher friday morning, as we had towards the bell. The European Central bank said mario draghi is continuing. It shot up for the first time in two years. We will be back with the top story, the opening bell, thats next. Welcome back to in the loop. Number one, we have to talk immigration. Impossible not to discuss president obamas address last night. We just heard from House Speaker john boehner. He didnt say anything new, but it was the typical role you of heard from republicans against obamas executive action. Said his comments, he something akin to if congress thinks im overreaching my boundaries, think again. Pass a bill. He is throwing down the cop let gauntlet, identity get some thing done. Idr you to get something done ofi know as of now, in terms popularity on the hispanic side of things, hes losing popularity. They are really trying to figure out how to you capture that vote in 2016 . A challenge and the republicans face to figure out how to shape things. You put this in context of what else needs to get done in washington, and this is not the start that markets are the public really wants. Already you have gridlock on immigration. Now, how are they going to trade the for tax reform, for keystone pipeline, for government funding, for obamacare . You dont want a repeat of 2013, where you had funding being withdrawn for obamacare. Its the last thing that investors want. Remember after the Midterm Election . They were saying the onus would be on republicans to make sure they could govern. Now, heres the reality. Stocks are trading this morning. I bring in the manager the , you remainector bullish. Furtherworried about gridlock in washington . Yes, in terms of if they shut it down again. It in two years, we have an election coming. Have to be careful. Voters are not happy. If someone strays too far, they will pay. That party will pay for it in the elections. There will be a lot of rhetoric. It makes no difference in your portfolio . I dont the gets going to get done in the next two years. Theyre just not getting anything done. We see portfolios go up . What is happening is the Monetary Policy is the only game in town. The Federal Reserve looking to wind down, while china and the central bank are winding up. Mario draghi said we will do what we must do to raise inflation and expectations as soon as possible. We saw german yields come down. They have been heading down all year long. That was the case today. How does this affect your view of european stocks . They are aope couple of years behind us. They have to get their structural reform in order. Thats kind. Very generous. Structurally, they are different. They had issues we didnt have to face such as unions, and until they get past that, it will be hard to make money in europe. Countries you can get it through dividends . Through Companies Like nestle. Going into your holdings, what are you focused on . Hong kong is no longer your focus. Is it because they are having a hard time garnishing licensing fees in china . Qualcomm is still a top holding. The other stocks have done better. We are still adding to qualcomm. Its just not your number one . The airlines are taking over just because theyve done so well. We still hold the same amount of shares. If you look at china, they are not getting paid royalties. If they want to ship internationally, a have to have an agreement with qualcomm. No other country will take their chips and not pay royalty. Maybe in china you can still do it. Thats a big overhang on the stock. Its trading at 12 times earnings, with a great balance. Not just the royalties side, but they also manufacture chips that other people use. Now they are getting into the server is this. They have a good business, great balance sheet, trading at below market multiples of this point. That hardware component is attractive. I want to followup on what you said about the airlines. Own jet blue. Delta, american, united are our top holdings. Really, they consolidated. They are the biggest carriers. I think jetblue is doing what we like. They are raising prices, the seeds are becoming smaller. Eats are becoming smaller. Investors like that, passengers dont. Revenues are going up. Consolidating, i think things are still going well. The fact going back to that that is a tax cut in summary ways. That will impact the average consumer in the United States. Driving intohat is your allocations, whether or not you are changing your allocations because of where oil is at . We kept the same exposure for the airlines. But the Retail Consumer here is going to have a great tailwind. The next two quarters, you wont see it right now. With this tailwind, this tax cut is going to add money to your purchasing ability. It will give you the pay raise that you werent getting. It is going to be money in your pocket as you going to christmas and next year. 65 of gdp is consumer spending. That is why you added on to acks, sex with avenue sx fifth avenue. Like more of the luxury players. Name like gap . A you have to be careful when you pick a gap or walmart. Everything has become so commoditized. Thats the big difference. When you go into the higher end or the perception whether it has been commoditized. You can call the tall mark you can go to walmart, target, etc. , you want to have that brand do. Great mustache. Movember. The whole firm doing it. Its great awareness for prostate cancer. Its something we will keep till the end of the month. A big shout out to lehigh. Yankee stadium, sold out. The weather will be great. Lower than today come over this week. It will be exciting. I hope you win. I hope so too. Sarat sethi, thanks so much. Up, bringing in billions. Raising a billion dollars. More on the debt offering, straight ahead. Can count as aberdeen win the Box Office Battle . I only saw the first one. I have three weeks of vacation starting at five got today. Im going to watch this. Take stock of all the competitions for hummer grams hunger games, when we come back. Attention matthew mcconaughey, jim carrey, matt everdeen isniss here for a battle. Are you here to fight with us . I am, and i will. Games,atest hunger easily be the biggest a view of the year. Sorry, transformers. Lions gates stock is had a pretty good run, of about 300 . This year, virtually all of the gains have come ahead of mockingjay s release. ,aul sweeney and danny loria dan, let me start with you. Is this going to be the blockbuster 10 seat transformers, . We are looking at potentially 150 million in Opening Weekend box office. Two 380proximating of million in north america. Better. Oping it will do we dont know if it will reach the 1 billion mark, i think to reach a number like that, depends on china. The chinese release has been pushed back to 2015. The mystic films arent performing as well, domestic films arent forming as well. How important is this for lions gate . Its just another example. They really own the chandra. This genre this is number three in a series of four. This has been a home run for them. They continue to build an Impressive Library that a lot of investors believe will be valuable to some other, bigger studio at some point down the road. It is rare to see a standalone movie studio in a public market. Lions gate and dream work is really the other one. Toh names have been subject takeover speculation in the last couple of years. Is in the ceo of lions gate personally invested as well in this film . He also put money into it, not just lions gate itself. That tells you how important it is to them. Is very important to them. We are also seeing lions gate preparing for life after hunger games. We are seeing investment in the divergent, franchise. We are trying to see what the potential of the company is. The partnership between lions gate and Mexican Television a, to promoteis these latino oriented films for the hispanic demographic. Thats becoming more and more important at the north american box office. It doesnt seem like there is going to be a lot of competition, at least this weekend. You have interstellar, one of the other ones . I dont even know. Thats how long its been since i have been to a movie theater. There is not a lot of competition for this. Was it very strategic when they decided to release this film . They staked out this holiday period a couple of years ago. When you see an expected blockbuster film coming out of a strong franchise, you see other studios stay away for a week or two, they dont want to go headtohead against what they fully expect will be some available on the weekend, maybe two weekends in a row. Is there an art for how long the bees are going to be . Given this whole netflix culture, longer movies might not work anymore, because they will be put on netflix or other overthetop platforms . I havehats the case, been seeing a lot of long blockbuster movies of the last couple of years. Transformers, especially was very long. Do you want them to be longer or shorter . I like them between shorter and medium. I like how bali would bollywood films pack a lot of punch. To have a lot of these in gauging action sequences, to have the audience happy with the latest analogy in the theaters. Whats wrong with 200 minutes . I dont know if we will get back to that. ,anny loria and paul sweeney thank you. Heres a look at the other top tech stories. Demand isoverwhelming alibaba tapped the u. S. Bond market for the first time. They sold 8 billion in yields that were lower than initially offered. Intel begins trading today at the highest price in almost 14 years. The worlds biggest chipmaker issued an optimistic forecast for next years sales. Intel has been pushing its market other than personal computers. President obamaS Immigration order may have the Tech Industry smiling. It will allow u. S. Tech companies to hire foreignborn employees. Cancel the latest in tech and media every weekday at 1 00 and 6 00 eastern time, only on bloomberg west. We will be back on two minutes, on in the loop. As we mentioned earlier, there was some news out on how chemicals. Do we have steve miller . No . Ok. A surprise move by chinas central bank. China has cut Interest Rates in an attempt to boost the economy. The benchmark lending rate was cut for 10th of a percent to 5. 6 . Chinas economy is on track for its slowest growth in 24 years. Europes central bank has made another move bolster growth. They started to buy assetbacked purchases. Mario draghi said inflation must be boosted as quickly as possible. Hashe inflation situation also become increasingly challenging. Headline inflation has fallen significantly over the last year. November, it still stood at 0. 9 . This was low, but it was generally expected to rise safely above 1 by now. Week, he refused to rule out largescale bond buying. The perfect gift for your beer drink and friends was designed by a former heineken employee at apple. A draft beer dispenser. It a boon ford its spherical shape. It holds two liters of beer. There was news out about dow chemical. They came to an agreement with dan loeb to add four new directors on the board. The number of directors will go from 10 to 13. Among those new directors, is the current nonexecutive chairman of aig, steve miller. Steve, can you hear me . Yes ca, i can. How did this come together . Judging from last week, the two sides were far apart. How did they come together . Ultimately, both sides concluded it would be far better to come to a consensual settlement, rather than carrying on a proxy battle. Which is both expensive, and distracting to the company. Therefore, the two sides were able to come to an agreement that includes four new directors. Does it include anything else . Thats the principle thing. There is a standstill, and other things that go along with it. The main thing that third point wanted was to have fresh blood come on the board with new ideas for how to improve the return on assets of this very fine company. Im looking forward to that challenge. What will be your first order of business . The first order of business will be to become familiar with the assets of the company. It is a very complex company, all over the globe. It is not public information, as to exactly how they make their money. They are both upstream and downstream, and their production of commodities and finished products just need to come in and take a look. Own mind ase to my how i would recommend the company move forward. Steve, i know this is a little bit of speculation. Dan is lessan that likely to launch a proxy fight against dow chemical . This announcement includes a standstill, which means that dan will not be launching a hostile fleet in the spring. Addition of his nominees and the two other directors that were named is a sufficient answer to the question of how to get down to improve. Steve, thank you for joining us on this quick notice. Steve miller, the nonexecutive chairman of aig who is now joined the dow chemical board. That does it for today on in the loop. We have a big lineup next week, including the department of financial services, been lost due. Ben lawsky. With areave interview on tuesday. Its 56 minutes after the hour, which means bloomberg tv is on the markets. Im scarlet fu. We are 30 minutes into the start of the u. S. Trading day. Here is a snapshot of the action. It is risk on, with u. S. Stocks on the rise. The s p and dow climbing to new highs. We are set for ace this straight week a fifth straight week of gains. Raised may be looking to Interest Rates, but china and europe are signaling additional stimulus measures. Take a look at europe stock 600, jumping to an eight week i. Mario draghi reiterated his inflation ande inflation next rotations as soon as possible. Traders say that makes for long quantitative easing perhaps more likely. We get a weaker euro as a result. Oil is moving higher. You might think a stronger dollar would mean lower oil prices, but that is not happening today. Russia, the two biggest exporters of crude oil, agreed to cooperate on oil markets. Data comes ahead of opecs meeting extra gets well. Lets move on. Chinas surprise Interest Rate cut. Im joined by tom worley. He joins us in beijing. This is the first Interest Rate cut by the peoples bank of china and more than two years. What prompted this, when they had been consistent holding out on on rate cuts . The peoples bank of china, always face this tension between pumping up rates in the short term or pursuing more painful reforms necessary to put the economy on a more sustainable medium longterm trajectory. What this rate cut signals is that it is shortterm concerns that are at the top of the agenda right now. The government sees this need to cut the cost of credit to pump up lending, to pump up investments, and longerterm concerns about rebalancing the economy, by paying down some of the massive debts which reports of taken on. Its going onto the back burner. Thats their motivation, will it work . Has been an images move. Ambitious move. The lending rate has been cut to 5. 6 . That is a substantial cut in the cost of credit. My expectation is we will see that passing through it to stronger loan growth, crucially, it could put a floor under the falling sales investment in the real estate sector. If that gets China Real Estate Developers building again, that could help put a floor. You mentioned there is tension between people who want to boost the economy, the gdp in the shortterm, and those who are looking to continue that pivot towards demand driven economy. Him . Here implications for keen to pushn very this reform agenda. What you see with todays move is they are trying to have their cake and eat it. It is a stimulus move, they cut the cost of lending. What they have also done is quite clever. They raise the cap on how much banks can pay their depositors. What that means is that while the cost of lending has come down, the amount which banks are paying depositors has stayed the same. What they are signaling is they are trying to keep the reform agenda on track. They are trying to protect household savers, protect and called for and come up for household savers. Thats the heart of the agenda, keeping Household Income growing fast. Tom warlick live from bloomberg headquarters in new york, this is market makers. The take on immigration, what do c. E. O. s think of president obamas executive action. Find out right here. Too close for comfort, the senate is investigating whether the fed gets too cozy with a big bang. Its supervising. And why cash is for losers. Well show you the mobile payments app that is winning the war for