The president would act alone. Here is mitch mcconnell. I hope that the president would look at the results and decide to come to the Political Center and do some business with us. I still hope he does. The early signs are not good. May try to stop the immigration plan by refusing to find it. The bear market in allele raising questions about what opec will do, the price of brent rose. Heading for its eighth weekly decline, the longest retreat. Opec meets two weeks from now in vienna. More accounting issues at hertz. Hertz will restate earnings for the last three years. Eight review found 87 million in accounting errors. Cut 100 Million Dollars in costs. The battle between amazon and hachette is over. Agreement,o a new hachette will benefit from better terms when it gives readers lower prices. Amazon has agreed to feature hachette books. As some positive news out of europe. The euro area gdp through faster than expected and the Third Quarter thanks to better performances from germany and france. Showing signs of life. Lets go over to hans nichols. He has live in berlin. Does it look like a recovery is beginning to take hold in europe . Looks like theres a recovery that may be taking hold in parts of europe. On the periphery, especially. Three consecutive quarters of growth in greece. Spain did well. Portugal did decent in positive territory. The dark spot is italy. 13 quarters with negative or 0 growth. Their gdp is about 9 of what it was before the crisis. On the upside, france came in at 0. 3 . Germany came in at 0. 1 . Olivia, they simply are not enough to affect the labor onkets and bring hiring board and bring unemployment down. They are miserable from a longterm perspective. They only look good is the metric is north of zero. In europe the pressure is on germany to change its tune and support mario draghi to go ahead with more stimulus. Do todays numbers change that conversation . Makes ite ways this more complicated. Angela merkels domestic opposition is opposed not only to merkels party, not only opposed to spending for her but quantitative easing by the ecb. They will say germany is growing. Merkel gets more pressure internally to cut the deficit and trim spending and not to get into quantitative easing than she does in any of the International Fora where she is under pressure. Merkel will be pressured at the g20, like she is pressured every time she sets foot in brussels. Merkel is not going to spend more. The g20 is meeting in australia. A bloomberg poll showing that 38 of those surveyed say the World Economy is deteriorating. Concern about the euro area. Tend to beetings more photo ops then getting anything done. Any sign that we will see anything down on the European Growth agenda . Unlikely. You can always get surprised on some sort of agreement. There will be in eu leader summit later in september. Most of them have been taken over by events in ukraine. Every time there is an eu leader summit, you talk about ukraine. The next one might not be any different in december. Theres going to be a Foreign Ministers meeting in brussels and they will talk about adding names to sanctions. If there will be an additional round to sanctions and Angela Merkel and Francois Hollande went to push back against Vladimir Putin, we will see that in december. That means a missed opportunity for a conversation about growth and trying to bring the euro zone to precrisis levels. Hans nichols joining us from berlin. Thank you. Moving to wall street. Ms. About bonuses at one of the worlds biggest bond funds. Pimco paid former chief Investment Officer pell a bonus in 2013. 290 million the year in which is totally fine find trailed peers. Mary joins us now with more. An eyely this is watering number four bill gross. How does a bond manager it is clever. He started the company in 1971. A lot of ownership in the company. Pimco is notorious for compensating their employees. That is one of the draws. They deliver. Gotmed elerian, former ceo 230 million. Vacsyn. Listen dan i that is a subordinate guy. Other deputy cia has got 30 million other deputy cios go t 30 million. Why isnt a bond manager at black rock making that much . Larry fink made 23 million in the last year. It is such a different structure. It is a lot of different pods moving around. Pimco is a giant hedge fund. And there. This is in index fund that tracks the s p. At pimco ive always thought of it, bill gross is a Hedge Fund Manager in different clothing. He has big cause and macro bets. Put 5 billion you know it will be relatively homogenous. From that perspective he built the firm in a way that lends itself to compensation. You could get a oneoff payback in a year that defined that extraordinarily well. That is not what happened at the total return fund. It appears to be divorced from that. 2014 was not a good year for his total return fund. Funds, butome good the total return fund failed most of its peers. It only beat 35 . It was not the worst made 8eo of allianz or 9 million. Pimco denied the numbers. Thank you so much. Washington. To theres lots of movement on the hill. The house on legislation paving the way for the keystone xl pipeline while the president considers executive order on legislation that could bring another showdown into the holidays. Peter cook is following the action. Arent we really heading for another possible shutdown . Nobody thought we would be talking about a shutdown but that is what is on the table in washington, d. C. Over the last 24 hours. The threat of executive action from the president. He repeated in myanmar today that he will do this before the end of the year. That has a core group of republicans, including ted cruz and jeff sessions, pushing Republican Leaders in congress to block or defund any executive action from the president on immigration. The spending bill is due by december 11. Without that, we face the prospect of a shutdown. Democrats would never accept that kind of language. That is what is raising the prospect. John boehner is not ruling anything out. This is the wrong way to govern. This is exactly what the American People sat on election day they did not want. Are on theoptions table. We are having discussions with our members and no decision has been made as to how we will fight this if we proceed. Privately, republican lawmakers who have met with john boehner says he wants to avoid a shutdown. Mitch mcconnell on the senate side has said he does not believe a shutdown is going to happen. He will not support a shutdown. They have to come up with some sort of solution and they have got to satisfy conservatives in their caucus who help to them on election day get control of the senate and the house. It got to satisfy them while confronting the president. Sounds like groundhog day. Another showdown over the keystone pipeline. The house on the project. What do you expect question my we are expecting the house, for the ninth time, to approve keystone pipeline. That would pave the way for the pipeline to move forward, over the objections of democrats any reservations of president obama. The bigger question will be the senate on tuesday. There will be a separate vote, 60 votes are needed. Back story is that this is a proxy fight for the Louisiana Senate seat. Both the democratic senator Mary Landrieu and her republican is aent bill cassidy, who congressman, both vying for credit if they get this vote through. Trying to sway voters. Both have their fingerprints on this but the question is in the senate and whether they get the 60 votes. Even if the Senate Approves it, the president wants the full review process to take place. This could all be for nothing if the president vetoes any legislation even if it does clear the senate. Interesting to see how it impacts the louisiana runoff. Peter cook, thank you for joining us. Also happening in washington, we are talking to ceos and policy heads to find out what is in store for 20 15. Betty liu is that the bloomberg year ahead senate. She joins us. You have some big interviews. What can we look forward to . We have several big andrviews on in the loop through the day. Im trying to get over the summer and getting ready for the winter. We are looking towards 2015. A couple of big guests we are going to be talking to including the vicechairman at j. P. Morgan. I will be sitting down with him at the panel. We will be talking about 2015 and what is in store for m a. Last year he was on Bloomberg Television and said 2014 is going to be big. We have low cost of capital, a 25 billion leveraged buyout will not be impossible. He was spot on. We started the year with time warner and comcast and we had at t and directv. Asalso had a lot of misses well, at the end shire, sprint walking out of a tmobile bid. He also was one of the key bankers who brought alibaba to the public market. I think we have got a photo here that i want to show you of jimmy lee and jack ma on the day of the ipo. Becomend jack have friends, best friends, through this listing. He is going to talk about his close relationship with jack ma. Is goingwhere alibaba to go. Looking forward to it. The man who does jamie dimons deals. You have in interview with the ceo of the Weather Channel. Something everyone is going to want to tune into, given the new polar vortex. Im freezing here. I want to know what is going to happen for the weekend. And ceo of the Weather Company, which owns the Weather Channel. There is lots of speculation, is this Company Going to stay independent . Private equity owners actually sell, look prepared to sell the Weather Company in 2015. They have a problem that Many Television networks are facing, declining viewership. How are they going to turn that around as an independent channel. At the same time, continue to grow their audience online. They have millions of people who and log onto their website as well. He has got a lot of issues ahead. Im very excited to meet david kenney of the Weather Company. I want to know what the forecast is. Clairvoyantif he is. All those interviews coming up on in the loop. Also coming up later on and hour, talk is cheap, even on wall street, banks are changing the way they try to get ipos. Wall street banks preparing to settle charges. A headline you hear often. The source is different. He financial industry regulatory authority, is accusing analysts of pumping up estimates to win clients. News has learned that banks are already changing the way they bid to underwrite ipos. On companiesables as they go public. Leslie picker broke this story. How does this work . It sounds pretty obvious that analysts are picking up the books to win clients. This is reminiscent of the dot com days. Were accused of inflating earnings estimate so their investment banks could win is missed. Now you have Eliot Spitzer and they had settlement charges at one point that really created a chinese wall between analysts and investment bankers. We are starting to see analysts crop up again. In,nts taking the analysts interviewing them and trying to get a good source of what their estimates will be. Analysts felt incentivized to pump up those estimates so that their firm couldnt win business. It sounds similar. Slightly different process. Banks are taking notice of this. Our sources say a settlement could come as soon as next month. They are changing the way they do business. Trying to bulk up the chinese wall. Extremely difficult regardless of compliance. The basic fact is Research People are going to feel pressured to pump up valuation. We could see these policies take effect as soon as next week. They include logging the conversations between analysts and issuers so there is a record of what is discussed in the meetings. You can tell whether they felt pressured to increase the valuation relative to what happened in hindsight. Another thing is they have when they talk with the analysts, only the analysts are allowed to ask questions to the issuer. Like an earnings call. In the past it has been that the issuers were asking analysts where do you think this valuation will be . It will be more of a oneway street. You can imagine it being awkward. Tell me a little bit more about the case study that finra was looking into, toys r us trying to go public. Toys r us try to go public in 2010. They withdrew the ipo last year. This may be evidence as to why it was unable to go public. What finra found is that during the toys r us case, the analysts felt under pressure to increase their evaluation of to appeal to toys r us and their private equity backed companies kkr and bain. Finra started investigating. Not sure how exactly they got involved. Very interesting. A great scoop. Thank you, leslie picker. Something betty liu will ask jimmy lee, the vicechairman of j. P. Morgan when she speaks to him later on. Still to come on in the loop. Luxury chains may have the upper hand. Customers unhappy with old navy. Should your size determine the price of a pair of jeans . You are watching in the loop. Live on Bloomberg Television and streaming on bloomberg. Com. Heres a look at our top headlines. Better than for airbus. Ofit program superjumbo closer to breaking even. Old navy under fire for charging more for womens plus size jeans. A petition has gathered more than 36,000 signatures online. In an email, a Company Spokeswoman says the items are specifically designed and manufactured for plus size women and cost more to make. Mens jeans cost the same in matter what the size. With two weeks until black friday, the competition between retailers is heating up. Walmart is Price Matching amazon. Com and other retailers. The Price Matching plan formalize what many stores were already doing. Opening,d into the are little changed and hour before the bell. The s p poised for its fourth weekly gain. Slightly in the green. S p and dow hovering near highs. Awaiting retail Sales Numbers coming in a few minutes. On the markets again in 30 minutes. Counting onrs are the Holiday Shopping season to kickstart sales. One company talking the trend is nordstrom, the cheney refuses to open on thanksgiving day. Reporting a better than estimated thirdquarter profit, a sign of strength for the more affluent consumer. I want to bring in the founder of the Luxury Research firm that advises brands and has worked with nordstrom, burberry, and others. What is nordstrom doing . They continue to outperform. They have always outperformed. The fact that they are in the luxury segment, that makes affluent consumers more resilient to invent the mainstream consumer. It is the tier of the market . Fact that nordstrom outperforms their competition. They have Great Customer service and a nice array of products. They tend to outperform luxury retailers. We have been hearing, im thinking of lvmh, the parent and burberry,ci, they are all seeing a slowdown. How is it a slowdown if nordstrom is not seeing it . Singledigit growth or no growth. Gucci, louis vuitton, and product have stalled. That is a combination of china slowing down, russia and ukraine creating havoc in european retail stores. Ess tourists in europe. The u. S. Is a bright spot because of the Stock Market Holding us up. Christopher bailey is ceo and. Reative head and a lot of criticism about how much he is being paid. His 18 million pay package was rejected by shareholders this summer, causing commotion. Do you think he has the right strategy, can he fill the shoes of Angela Ahrendts . It takes three things. They have the product, the people, the Client Service in the stories. They have the growth in many different markets. They are the most advanced digital luxury brand. That makes a difference whether you are doing social media, online advertising, digitizing the stores. They had the best strategy right now. They also have carried a carag they also have delevigne. You are seeing an increasing number of young, female ceos at fashion labels that do not have fashion backgrounds. The new ceo of la perla. Seatkind of changes do you with incoming women managers driving in the industry . They are far more collaborative and sensitive to female consumer entity fashion oriented male consumer. What you are going to see is a lot more diversity of candidates and a great deal more execution. Not to put down the men. The women get more collaboration need tolenials, you have an inspirational and not a perspiration of culture. I think women will bring that. The women know how to work the elbow grease. Expectedund is what we and a rebound is what we got. That is what economists predicted. And unexpected decline in retail sales of 1 3 of 1 . Continuation of the backtoschool momentum. Last month, an increase of 3 10 of 1 . Both of those numbers better than what economists had predicted. Weve heard from retailers with sales side. S on the people were not motivated to buy the cold weather gear. Overall numbers are looking relatively strong. I will continue to look at where exactly the spending was. Something else that could contribute was lower gasoline prices. A tail wind and a positive into the Holiday Season. We are still seeing job growth. Julie hyman, thank you. That are then expected retail numbers. Small growth. Strong growth. What is your read through for those numbers for the Holiday Season . It indicates a positive trend. Theres too much inventory and too many brands competing for the same consumer. I think we are going to see a lot of discounting. Even in luxury . Was raiseg, the story your prices because the consumer is price insensitive and you can drive demand by becoming more expensive. When you look at nordstrom, theres a lot of al at activity. You se