What is talking about. He faces huge rhetoric. But also, do people understand what it means to have a ground game in syria, how much money that would take, how many years we would have to be in these countries . With an outcome at best ambiguous and impossible to see. Loss of lives, thousands and perhaps tens of thousands. Listening to military advisers, he can see that is a difficult choice, when he does not want to engage in. He is facing a reaction from the American Public and europeans what are youll as, doing to stop this, how are you, the president , under which i feel safe. Is there a correlation between the need and the obligation for the president to dress security concerns and policy issues, the greater that is, the worse it is for democrats of 20 fix it of 2016 . The bottom has not fallen out. He is still supported by a lot of americans. There has not been very often a rallying effect. Even after bin laden was killed, his Approval Ratings spiked up low briefly and then came back down. He has not been able to unite the country very much and he also has not built relations overseas. History will report one of the challenges the president brought on himself was in a time like this, not many World Leaders consider the president his friend and that creates challenges. Erik you are from the president right now. Mr. Obama my fpm my fbi obama director, for a regular update on Security Posture post paris and going into the Holiday Season. I think all of us recognize how horrific and heinous what took place in paris was paired as i said yesterday, for many of us, the events touched deep given the connection between the United States and france, the degree to which americans see and paris a way of life that is so familiar to us here in american cities. Given the shocking images, and all americans have been asking safeother whether it is here, whether it is safe to fly or gather. I know families have discussed their fears of the threat around their dinner table, many for the First Time Since september 11. It is understandable that people worry something similar could happen here. Watching the events in paris made the threat feel closer to home. As we go into thanksgiving weekend, i want the American People to know that we are taking every possible step to keep the homeland safe. Isil, we are going after wherever it highs. That has been our strategy for more than a year. I will speak about this in more detail in the coming weeks but let me remind the american ofple of what our coalition 65 nations is doing to destroy these terrorists and defeat their ideology. Our military and partners have conducted more than 8 million strongholds on equipment. The airstrikes along with the efforts of our partners on the ground have taken out key leaders and territory from isil in iraq and syria. Work to choke off their financing and supply lines and counter their recruitment and messaging. America is already supporting french airstrikes in syria, yesterday, president hollande and i agree we will step up that even further and do more of the work together. Up on isil where it lives. Until they are beaten. That is our first goal. The second, we continue to do Everything Possible to prevent attacks at home and abroad and prevent foreign terror fighters in the United States and other nations. Since 9 11, we have taken extraordinary measures to strengthen our Homeland Security in everything from Aviation Security to border security. We have improved upon these actions over time. Is an event, we learn something from it and we continue to refine. We continue to improve upon our approaches as we speak. Of nonow, we know specific and credible tout intelligence indicating a plot on the homeland. That is based on the latest information i just received in the situation room. It is similar to the information , the briefing i received on saturday, before i left on my trip last week. Weekendcans travel this to be with their loved ones, i want them to know our counter counterterrorism, intelligence, Homeland Security, and Law Enforcement professionals on every level are working overtime. They are continually monitoring threats at home and abroad, continually evaluating our security. They are constantly working to protect all of us. Their work has prevented attacks. Their efforts have save lives. They serve every hour of every day for the sake of our security. They did so before paris and they do so now. Credit, andare or without a break for the holidays. I want theline is American People to know entering the holidays that the combined resources of the military and intelligence and Homeland Security agencies are on the case. They are vigilant, relentless, and effective. Specificent of a credible threat, the public will be informed. We do think it is useful for people as they go about their business, to be vigilant. If you see something suspicious, say something. That is always helpful. But otherwise, americans should go about the usual thanksgiving activities, spending time with family and friends and celebrating our blessings. While the threat of terrorism is a troubling reality of our age, we are both equipped to prevent attacks, and we are resilient in the face of those who would try to do us harm. That is something we can all be thankful for. Happy thanksgiving, everybody. Mr. President [indiscernible] that was president obama with a thanksgiving message to americans, be safe and be vigilant, speaking to the white house here this wednesday before the national holiday. Megan murphy and are with me. Mark, what was the point of that . The president had no news to share with the American Public. Mark to reassure people during a holiday time when a lot of people are traveling, they are talking about things to reassure the American Public and to try again to sell a point that he is frustrated is not getting through, that he has built a Broad Coalition of countries around the world who will fight isis and that there is a plan to deal with them. And finally, an ongoing effort to hit the right tone. Parking area. He is trying to have another do over on that from the immediate aftermath. Some people close to him felt erik it wasnt quite right. Say was word he did not more. He talked about stepping up coordination. That is not actually dropping more bonds. I think people assume the airstrikes will increase and still, the ball is very much in support of the french and the british to say, what do they want to do . Tois still an opportunity have better coordination. It is not just a matter of pr and that he doesnt want to admit or Technology Change in policy. He believes negotiations get aside out of power get president assad out of power. He believes it is the right solution for the country and the world and he does not want to change. He just wants to step things up. Usk megan was telling earlier about the struggles and the criticism the president had faced in his choice of words and his tone that he has taken. Mark makes the point the president is trying again to hit the right tone. Did you hear anything different in the way he addressed these issues . Not and i was surprised with the tony took. Towning a more emotional tone. That was all business for him. He is incredibly frustrated he cannot get the message through that he believes the strategy we have is the right one and he cannot seem to win the message with the American Public. I think he was trying to get a little bit of a chance to push that out and i think he was obviously trying to stop strike a note of reassurance. , his language there, no credible threat right now. Whether or not he is still getting it across to make meaningful change in this campaign is a question to be answered. As you rightly note, we will upping shift in terms of airstrikes, sharing intelligence, whether that will move the needle in the shortterm and even the longterm it has yet to be seen. Very much megan murphy and here with me in new york, mark halperin. Hat will do it for me stay tuned to we have much more coming after this short break. Clubs it is nearly a quarter past noon in new york. Welcome to Bloomberg Markets. Scarlet good afternoon and im scarlet fu. Steel. Am alix president obama says the u. S. And allies are stepping up pressure on Islamic State. For mr. Obama as he assured americans the government is doing it all it can. In the bears ready to pounce the new year . We speak to one analyst who says yes. Scarlet year end you deals are driving november car sales. About to run out of gas . First, julie hyman. Julie volume is lower on the last trading day before theyve giving. Yes, the stocks are in the green but not huge gains. The nasdaq doing the best of the three major averages. The earnings season is in its last dying throes if you will appear we have companies that have come out with earnings. An interesting situation here. Coming out and giving a disappointing share. Hewlettpackard enterprise also coming out with a forecast but the tenor of the commentary is a little more positive. These two Companies Still reported as a combined entity. Out extrapolation to figure what was going on at each. And dear is out with surprising results. The companys earnings are falling but not as much as analysts were anticipating. Prices have continued to decline. The company said sales will continue to be weak in 2016 but that it will fare better than in prior downturns. Alix that is a surprise. A slew of Economic Data out today, a lot of it modeling in the middle of expectations. Did the markets move on this . We have seen some movements. One thing i want to point out is what were seeing in the spread between the 10 year and the two year. It is now the smallest ands back in february and it was like this has to do with the feds preferred measure of inflation. It was smaller than anticipated and this gives credence to the idea the fed will indeed be very gradual. The Interest Rate increases, we also had blackrock coming out and seeing Monetary Policy even after the fed begins to raise rates and pimco coming out and saying the u. S. Market is now pretty well prepared for Interest Rate increases. Finally a quick check on the euro as well. Earlier we had seen a substantial weakness falling. It has been coming back and little bit here, but also all of this has to do with Economic Data as well as the inflation commentary coming out. If you look at u. S. Stock indexes, theyre holding at threeweek highs as investors prepare for the thanksgiving holiday. Alix joining us now is david at j. P. Morgan asset managements. When you look at the asset classes, which one had not yet placed in a december rate hike . David obviously, there are a couple of weeks before the fed meets. Corporate profit data has not been spectacular. A baduity markets has news is good news behavior to it where they want the the continued liquidity but the reactions are much smaller than what we saw a couple of years ago. I think the equity market is getting there. Hopefully everybody will be on board. Scarlet the nasdaq doing fairly well. It is not clear we will get major up or down movement. Market looksthe like, this ambivalence . David in part of it, the bull market is mature. You would expect it to be muted. Consider isece to Profit Growth. When you buy a share of stock, youre paying for a share of cash flows. If they are not materializing, it makes it difficult to continue to pay more more for stocks. With underlying Economic Growth moderate, negative territory, a flat year for the s p, it is relatively in line for fundamentals. Scarlet the earnings has come down a little bit. David exactly. After a flat 2015, we expect moderate Profit Growth in 2016, somewhere around 5 , in line with the trend. A two dividend yield on top of that, still high returns on u. S. Equities going forward. Stymied earnings in the u. S. Is the stronger dollar as well as oil. We have seen so much money flowing to the dollar. It builds up into anticipation of a rate hike. What is your outlook for the dollar as the fed prepares to hike . David if you look at the past five times the fed ike has raised, in 80s, it depreciated after the hike. The dollar per share before they hike and then sold off after they made the first move to what we are now is a little bit of remark and sell the news. The difference is Monetary Policy around the world is still extremely easy. There is downward pressure on the euro, downward pressure on the end. Be determined. The path of least resistance for the dollar is up but hopefully not, we will see the same types of games we saw the end of 2014, making Companies Better able to generate profits. Scarlet we have seen geopolitical risks take things down a little bit, but it did not really knock the wind out of any of the markets. What is the best safe haven with the most appropriate . Treasuries still make a lot of sense. The dollars in u. S. Treasuries, they are riskfree assets in the traditional and what is important, particularly as it pertains to fix income is with the fed getting ready to raise rates, where are some other places in the world where you can get the same level of risk with it a more common native central bank, thinking about the particular the longer maturity balance. In negatived yields, but finding those assets where there is still downward pressure in Interest Rates, to us, it makes a lot of sense. Lot ofhere seems to be a chatter out of what is the real Interest Rate, the longer equilibrium rate. Where is the biggest risk . People are not taking inflation seriously. A lot of the Energy Effects, depressing over the past 12 months, have been off in the past december. The moderate rise of gasoline prices or even if they stay where they are, as the euro rear per Energy Effects rolloff come inflation will move to percent. Inflation could rise a little bit faster than a lot of people are but his anticipating, causing the fed to hike rates faster than they anticipated. Scarlet the structure changes next year. David exactly. 50 per barrel versus 60 per barrel a year ago. Thank you so much can we really appreciate it. David loved the lets. Today,that report expectations grind a little higher versus following the last couple of months. That is also interesting to notice. Scarlet still ahead, the u. S. Car market is at a peak right fromith them up 17 units on an annual basis. That discussion is next. Scarlet welcome back. Alix since the 2008 crisis, car sales have grown 35 and will make with 30 billion this year. Scarlet the question is, has the auto market peak . Alix looking at the profitability of the u. S. Carmakers saying what will happen now. Take a look at the annual sales rate. 17 million units. A huge recovery from 2009, when we were below 10 million. Profitability has been really low, much better than the last cycle. How much more juice can we squeeze out . Scarlet one thing we point out is china has driven this to a large extent overall auto sales. In the United States, the people that ability here is something people tend to overlook. One thing that was pointed out is financing played a major role here. Wider credit availability, lease terms are also longer. Is six or seven years at what that does is pull forward demand. People hold onto their cars longer and they do not need a new car during that time. Months or used vehicles lower than that. This is a concern. The Industry Needs people to come out of their leases earlier. Alix the average percentage is 9 now. Scarlet certainly, when you compare to toyota, the orange line, the japanese carmaker betting from a weaker yen. All that feeds into profit. Much more is coming up we will be right back. I just had a horrible nightmare. My companys entire network went down, and i was home in bed, unaware. But that would never happen. Comcast business monitors my Companys Network 24 hours a day and calls and emails me if something, like this scary storm, takes it offline. So i can rest easy. What. You dont have a desk bed . Dont be left in the dark. Get proactive alerts 24 7. Comcast business. Built for business. Lets start with the headlines on bloomberg first alert news this afternoon. Laura has more. Welcome. Laura thank you. President obama made a statement on the Nations Capital man Security Posture heading into leading his National Security team in the room. President obama i want the American People to know that we are taking every possible step to keep our homeland safe. Said therepresident is no specific and credible intelligence about their spot in the u. S. Intelligence at this time. He said if there were to be and credible threat, the public would be informed. The president also said americans should go about their usual thanksgiving activities. Someghanistan, they said of the most closely involved in the attacks on half black been suspended. Senator john did not reveal a name or how many people have been temporarily removed from their jobs. Were killed people in last month passes a tasker police armed with automatic weapons guarded schools in the belgian capital as they reopened for the First Time Since emergency measures were imposed. Running again after a fourday shutdown. Frenchle, the belgium authorities continued the hunt for two suspect believed to be directly linked to the terror attacks. Theunited nations says plan