President obama is meeting with congressional leaders. Republicans say they want to work with the president but john boehner says the president is asking for trouble if you changes immigration without congressional approval. Have made clear to the president if he acts unilaterally on his own, outside of his authority, he will poison the well and there will be no chance for Immigration Reform moving in this congress. He also says he expects the house to vote again to repeal obamacare. President obama sends a letter to iran, asking for help to fight the islamic state. According to officials, it went to top officials. It says the two nations have common interests and putting the militant group. Officials say it makes one of the key point. If they agree to fight, it will not get any concessions on the talks on the nuclear program. World, Big Corporate Television contracts for pro basketball and football. It is cutting into profit at disney. Company posted Quarterly Earnings that beat wall street estimates. Movie profits offset the cost of sports programming, like espn. Meanwhile, bob iger is not a big fan of all card racing. He says they have no plan to provide espn or the Disney Channel on it standalone basis. We have a multi channel bundle that is creating tremendous value for us and the consumer. There is no reason, as far as we see, to do anything rash or anything that necessarily in no way the damages it for the longterm. Shares of disney are lower in premarket trading. Hackers cost a lot more damage at home depot than we first thought. They say 53 million email addresses were stolen. To stolen addition data from 60 million. Cards. Depot says hackers got into the network by using a thirdparty vendors username and password. I want to circle back to the issue of today, jobs. Is the u. S. Creating enough . We will find out in just under half an hour. I want to bring in peter, who just wrote a piece about how the Unemployment Rate might actually be headed to 4. 7 by the end of next year. Also one of my guests today, minority owner of the Brooklyn Nets. Great to see you. Great to see you, everything good . We will see in half an hour. Peter, i thought this piece was interesting, you quoted an economist, looking at the insured Unemployment Rate. We could see possibly 4 . Next year . Looking at the eligibility of unemployed insurance, benefits, that rate tends to be lower than the overall on a blended rate. It implies because it is a forward indicator that the Unemployment Rate is likely to go down. If Current Trends continue a big if we would be down to 4. 7 unemployment by the end of next year. Which a lot of people on the fed would say is actually too low in the sense that bottlenecks start to form, companies have troubles finding the people they need, wages go up, which is a good thing, until access creeps into the price index. You would start to see Wage Inflation. Does that mean that the fed would find themselves behind the curve . The point is, this does not mean it is time for the fed to start cranking up Interest Rates. It is an indicator of where we are headed. On Current Trends, we will see what happens very soon in the october report. But assuming it is on trend, new jobs created. If that happened, we would get to the point. The fed is may be behind the curve by some definitions, but it may not even mind at this stage. Feel like the it economy is getting that much better . Our economy in new york is pretty good. The real issue is who is benefiting. The economy is definitely doing well, but what is happening to the middle class, are they doing better or worse . You were glad to see the minimum wage hike . Mary. 70 for minimum wage increases. That is a huge thing. And from a relatively conservative electorate, that is huge. That is the issue. Obama missed talking about that. Are you upset because of what happened on tuesday . I think he has not been an effective leader and that is one of the major reasons why he got them vote of noconfidence. We have talked to several ceos over the last few days, what they want to see out of washington. What was on your agenda . Issue ofsing this income fairness, the single most important issue today. It is on the American Publics agenda. They dont like the idea that the upper 1 are getting the benefits. Wage. Lly involves minimum the second thing is making sure we create middle income jobs that produce real money. Thatrrange issue, but needs to be talked about. States, two of them being red states, voting for a minimumwage hike. Will while that put any pressure on at all . Minimum wage does not tend to put a lot of pressure on average hourly wordings. Earnings. Not many people are making the minimum. Ushelps the poorest among get closer to a decent standard of living. There were actually three red states, plus alaska, all voting strongly in favor of the minimum wage. There was money that went into those campaigns from the prominimumwage people, and i asked him about that. They said it probably would have passed without their support, but they wanted to run up the make a point,o send a signal to washington. It sounds like the republicans if the ballot happened despite or with republican support, it seemed like they are rallying around it. That means for the democrats it becomes less of a flashpoint politically. And that is a good thing. You do not want a flashpoint if you want to be elected. It is also the amount of minimum wage. If you bring it up to a 15 wage, that is a different issue in terms of affecting families. But things like that have to be done. We are in a situation where the rich and the poor are getting divided more, as well as megan tash middle income. Middle income for an average family has gone down. You cannot have a country that does well when that happens. I agree. Thank you for joining us. Out the newestk edition of bloomberg businessweek. Looking ahead to the year 2015. Peter, you wrote the cover story. That is not your face. We have been grilling the c suite all week on the u. S. Jobs picture, leading up to the jobs picture. Here is what the chief executives are saying about employment picture in the u. S. More job training. The universities need to do a having moref practical skills. Company themselves are doing it as well. The problem is we cannot get people to new york city. A fairink we should have minimum wage, and it should be different in new york city than it is in iowa. But when you have crazy stuff, like what evil are proposing in seattle, that is going overboard. When you have minimumwage up into the teens, you are preventing entry level jobs and stopping job growth. What will accelerate this escape velocity in the jobs market . The combination of economic factors, lower energy costs, increasing transportation costs. As middleclass emerges in markets around the world, in asia, and they have increased demand for consumer products, you will see the momentum put. We are close to the Tipping Point today. The rest of the world is watching the u. S. For the u. S. To look strong to the rest of the world, we need a political system that works. It could be much better. The great thing is, americans are hard workers, we have great capital markets. We continue to find entrepreneurs and bring people in from the rest of the world, so the u. S. Is a great place to do business. Moving and shaking this president was a favorite to replace injured new year. Surprisingly, he has decided to retire next year. Shares of pepsico are up 17 so far this year. Nooyi has been able to fend off calls to split the Dutch Company into two. One more person out of the c suite. We get theuntil october labor report. We will hear from Mohamed Elerian and jason furman. And santa claus is coming to town. It is Jeff Katzenberg and bruce ratner. We will talk about that in a moment. As we have heard from a number of retail ceos, is beginning to look like christmas already. Dreamworks animation is teaming up with malls across the nation for a hightech holiday extravaganza. Here is ceo Jeffrey Katzenberg and one of the unveilings yesterday. On dreamworks history of storytelling and Great Technology we have developed a dream place with the hopes of creating a unique experience for the entire family which transports guests to a special destination, up north, way up north. I want to bring back bruce ratner. Also, catherine welch, the head of retail. Both of you work with katzenberg at dreamworks to bring dream place to the rigell mall. You saw these places around the country. You called dreamworks and said you wanted to work on this . Yes, we were the first one. Ll is iner at ridge hi westchester county. Ifalled dreamworks and asked i could see it. This is the future of retail. You have to create experiences that are different than shopping to bring the family and. This was a great combination of technology, theater, and adventure. Why is this important . That you givetant families coming due in the holidays. A reason for people to come to the mall. At of their houses and into the mall. Consumers are consuming, but more online. It is a lot harder to get physical traffic, people walking into your properties. It is live entertainment. In a way, because of the internet, we have to create an experience that is live an exciting. It is interesting because i think this is the beginning of something that we will see more of. There is no substitute for experience. Get them off the couch, off the computer, so i can take my grandchild to something. It is obviously great for us, but it is really important to look at it as a movement happening in the Shopping Center business. How easy was it to work with dreamworks, what were some of the points of negotiation here . It was very easy. They are very creative, interested in having this succeed. It is a new effort for them, something that will branch out the retail side of their business. They have not gotten into that as deeply as disney has. You have other malls that we can do this in . Up anotherpening center in california, rancho cucamonga. So this is the start of a longerterm relationship . Did signed longterm deals at ridge hill and victoria gardens, and we do have a few other options. We were talking about politics. The barclays center, attracting the Democratic National committee convention. What is the update on that . You have one article on one verysaying new york is a liberal place, so we will not be here, but on the contrary, people want an effective government. What really works is new york city and that arena. That is why we have a great chance. We are good at traffic, hotels, entertainment. Roviding people and experience people want effective government, they want things to work. We talked about this before, the traffic going into brooklyn, the hotels, will there be enough space . Have you been able to address those concerns . Nott is very clear, it does take long to get from midtown to Berkeley Center in the summertime whether it is by subway or by surface transportation. But the of hotel rooms. We have everything here. We can also raise the money necessary. We are a showcase place. The name brooklyn is worldwide famous. The democrats need to have an important tag. They need something that really works. How our government works. New york is our best example. Of youe are also reports selling a stake in barclays. What is the process right now . Is there a Minority Stake or majority stake that will be sold . Minority. We are looking for Strategic Partners. We have a couple of partners at this point. We would stay in control of it. Are you going to bring in the Brooklyn Nets at all as part of the deal . It is only about the arena. What Strategic Partners . Some of the bigger entertainment companies. How does that answer . Great to see you, bruce. Executive chairman of for city. Also thank you to kathy welch. Coming up, startling revelations about those exploding airbags. A new report says the airbag maker but the flaw and covered it up. And less than 10 minutes away from the october labor report. You are watching in the loop. Heres a look at our top Corporate News as we await the jobs data. Takata knew about problems of its airbags that can explode and hit passengers with shrapnel. The Company Conducted secret tests on its airbags in 2004 and ordered engineers to his delete the results, according to the new york times. Down silk road 2. 0 yesterday and arrested a San Francisco man who they say resurrected the online drug bazaar. The site generated 8 million in Monthly Sales and attracted 150,000 vendors and customers on the socalled dark web. The new star wars movie has a weakens ande so it immediately began trending on twitter. The film is slated for release at the end of 2015. It is 26 minutes past the hour which means bloomberg is on the markets. Equity futures have now calm down, pretty much unchanged as we await the october labor report. Is what iss expected. We are on the markets again in 30 minutes. Three minutes away from the labor numbers. It is a crucial window into u. S. Wages. Anyamerican workers making more money as the economy is adding jobs . Voters overwhelmingly supported increasing the minimum wage on ballots, even in republican red states. So what does all of this mean . Bring in alan krueger, professor at princeton university, former adviser to president obama. You have been talking about jobs all morning long. You could maybe look at this as a double edged sword. Generalstates in feeling that we should be raising the minimum wage. They feeler hand, that way because they do not feel the economy has gotten better, that wages are still low and income big inequality has actually gotten worse. Is the of the reason minimum wage has been stuck at 7. 25 an hour. It is well below where it was in the 1980s when you adjust for inflation. That is contributing to the inequality that we have seen. The American People spoke clearly on both sides of the aisle. Even Business Owners support an increase in the minimum wage. Although there have been some significant holdouts. Ball mark has not said walmart has not said that they would act on that. Past, they, in the have supported increases in the minimum wage. Certainly there are different views in business, but with the minimum wage being so low, it is in the interest of companies. What are you looking at in this report to tell you if there is any sort of wage pressure . The most direct measure is looking at wage growth. I look at production nonsupervisory wages. That is more indicative of wage pressure than the overall private sector wage. Unemployment, longterm unemployment. With the pattern of all the data coming in, this report should be taken with a grain of salt. Every month report is. All the other indicators are not moving as strongly in the same direction. Unemployment claims reached their lowest level since 2000. Of indicators that suggest the labor market is strengthening. Not back to full health but moving in the right direction. Employed look at the insurance rate, that indicates that we could get to 4. 7 next year. If we keep at this pace, we will quickly be in the low below 5 . That seems feasible. We are seconds away from the number. Is standing by with the reaction to the jobs report. Peter cook is at the Labor Department with those numbers. 214,000 jobs created in october, on employment drops to 5. 8 . Revisions, make this number better than it first appears. The 214,000 jobs created last month, the ninth straight month of about 200,000. September revised to 216,000, august, 2003000. The sixmonth average now stands at 235,000 a month. Survey, 5. 8d percent is the new Unemployment Rate, the lowest level since july 2008. We had the number of unemployed dropping, the number of employed rising by 683,000, the best figure we have seen since november 2013. Participation rate rising slightly to 62. 8 . Unemployed, two point 9 million, down slightly. The broadere number, down to 11. 5 , the best number there we have seen since september 2008. Only one sector where we had a loss of jobs, information. Uptaurants and bars were 42,000, retail, 27,000, construction, 12,000. Pretty good numbers across the board but no real standout. Wages were up slightly month over month. 0. 1 . Yearoveryear, 2 . Basically, another solid report. Not a blockbuster, but one that the fed can look at and say it is consistent with a trend we have been seeing. Stay withh me me. I want to go to scarlet fu. We now have gains of. 2 for futures. The nasdaq is up by. 3 . This comes as everyone looks at the report and says it keeps the fed on track with what he was planning to do. Before thed said jobs number, anything above 200,000 would be considered a good number, keeps everything on track for tightening sometime next year which we think will happen in june. I am also keeping an eye on the two year yield. 50 basis points right now. Users arent starting to tear their advantages. It did give us a little bit of direction in the meantime. The obvious question when people look at data like this is what does this mean for monetary policy, steady as she goes . This is a goldilocks report. It suggests the economy is intending to heal, you are not seeing overheating yet. We are far from that . We will start to see wages grow more quickly as black inroads. Production nonsupervisory workers wages were up 2. 2 in the last 12 months. I think this will keep the Federal Reserve on the course it was on. It is reassuring that the economy is still growing. Increase in many fracturing jobs, given weakness in the rest of the world is a good sign. When you talk about wage growth, average Hourly Earnings month on month, up by only 0. 1 . Where is that Wage Inflation we n . There has been a slight pickup in wage growth. I expect to see more. One