Will have big trouble if he changes immigration policy without congress are i would make clear to the president that 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. It is as simple as that. President obama said he will halt deportation for some undocumented immigrants if congress does not do something about rewriting the law. President obama has irans help. Retly ask for that stresseder the two nations common interest in fighting the militant group. If iran did help in the fight come it would not give the iranians any leverage in those talks on restricting its nuclear programs. Revelations about the shrapnel airbag and a Japanese Company that made them, takata, learned that they were defective a yea decade ago. They ordered engineers to delete test results from computers. More than 14 million cars have been recalled because of airbag problems. Four deaths have been linked to the defect. Atnot funny, the data breach home depot worse than reported. Hackers stole 53 million email a dresses during the attacks between april and september. That is in addition to stealing about 56 million payment cards that we already knew about. But the math together and i believe that is over 100 million. They used thed username and password to get into the network. Those are our top headlines this friday morning. Lets do a boring data check. Currency is crushed, equities nowhere, euro with a 1. 23 handle, nymex turns, and the vix showing the joy that is out there, well under 14, stunned at 13. 67. Real breaks through at a new weakness, and the ruble was a 48 handle when i walked in the door this morning. Lets look at the ruble on the bloomberg terminal because we can do it. Here is the putin collapse when we go up, up and away. Show standard deviations the gyration and the pressure is being seen in currencies. The Interest Rate increase to not do much, it halted the decline for a little bit just for a stutter step. As always, we have to point out Vladimir Putin has no pain point. This does not affect policy like it would in a normal country. It has got to affect their markets and their banking system. Lets get back to jobs day and of course the math, distortion of central banks, desperate for growth. Jobs in the spirit they would love a little bit of inflation. We begin our coverage sir Martin Sorrell joins us and with chiefdy kate moore, sh investment strategist at j. P. Morgan. Promoted lady kate. Wonderful to have you here this morning. The market gyrations we are seeing as a company, as a bank of america, jp morgan, Goldman Sachs and others, you begin to see seismic changes in thought or analysis because of these relentless moves . No. We look at the opportunity when the market was selling off in early october to add to our acquisitions not in the u. S. But also in asia. The fundamentals are still in place, the macro data looks strong. This is a technical move and we cap our conventions. Our convictions. What do currency markets like this mean . What we are trying to figure out now as we are going through Third Quarter earnings transcripts is what impact hes ingrency moves are havn on companies. Even exposed companies have done well in the Third Quarter season but First Quarter and Fourth Quarter will really move the dial on how companies are thinking about the effects. How about building in the seleka commodities, like oil, like old . Do we presume that that is coming out of the credit markets . We do not have a gigantic allocation in our portfolio. Commodities are a smaller bit of it to begin with. I think we are watching for how low oil can go and whether there will actually be opportunistic moments for us to take advantage. The backdrop of this, sir martin, is christine lagarde. I am watching markets on the move. Your stock has done better than good. It is a moonshot. Wewe report in sterling, so see a currency headwinds, having a Significant Impact on our reported results. That makes life difficult. Just to point this mediocrity, the top line, worldwide gdp growth is only about 4. 5 , 5 , next year the forecast is nominal. Companies are faced with lower topline growth and the possibility of a topline growth, so they are focused on cost. I have said this before, the thing that i really worry about is clients are totally focused on cost because in order to get to their numbers, they are going the cnbc 25th anniversary who . Us. Hat does not concern they said it is amazing what companies have done hold on it is amazing what companies have done to reduce and lower costs in america. That in my view is a shortterm approach. What has to be done is investing in capacity and brands. Do you have it all in interest . I have no interest whatsoever. I am totally agnostic. We should congratulate them on 25 years of good work. He and i would work out. He is still very irascible. He runs, like, 24 miles a day. I think worked out your a rough ability together. Your irascibility together. Are we worried about companies that actually cut costs . It seems like we Want Companies to cut costs. We have actually been incredibly impressed by the fact that companies have been able to maintain their margins throughout the cycle. For the last year and a half or two years before every earnings season, the media and journalists and analysts will say perhaps this is a quarter where margins are going to look ugly. That is not what we are seeing at all. We are seeing sales grow. Put in aggregate, margins have been improving. Of the screw is tightening, and what we see is more pressure on the top line. In order to deliver, the rise in procurement and finance is out balancing marketing. Until you get to 100 market share, you can do anything everything on the top line. Very interesting data, unemployment yesterday. The low skilled workers, high unemployment. Why . Because companies are not taking on labor, they are not taking on incremental cost in incremental risk. I understand this philosophy. It is to shortterm. It has to be long term. Larry fink at blackrock has made much more eloquently than i could ever do, has made the case of longterm focus. Valiant in models, allegan, what we see with investments like 3g, very focused on shortterm profitability, not longterm branding. We know the companies that start in a recession, even consumer facing companies do better over the long term. They are likely to serve longer than 10 years because they know how to keep costs low. How do you take the market and tell them no, now its time to spend on marketing . We build the case. When the average life of a ceo is five years and a cfo is three years and a chief marketing officer is two years, it is difficult to believe you are talking about their working life, not their mortal life. Scarlet, the moon shots, you were talking about that earlier. Talk to youryou clients when they see a moonshot like wpp stock . Moonshot,rs is not a for 28 years is not a moonshot, come on. After a tremendous run in a woodys in 2013, should we still be invested . They were concerned that earnings will not be sustainable. We said look, we would not be adding to your equity risk in less we feel confident that the fundamentals are continuing to improve. Throughout this year quarter after quarter, we have had earnings improvement, we do not feel that we are at a very extended place in the 20 market, and we say as long as the economy grows and companies are smart and are managing the Balance Sheets, we can feel comfortable having overweight in equity. Driven by cheap money, kate. Last year, 5. 6 percent, we could do the same at 5. 1 now. We went in the euro at 12year at 2. 25 and the dollar 10year at 3. 25 . For an advertising business to go to a 30year bond market has that sort of rates on a tells you it is driven by fundamentally longterm, but lowcost, money. Cheap money is not going away. That is why the temper tantrum is easy. In his job stay. Are you it is jobs day. Are you hiring in america . We are a Human Capital intensive business. In the u. K. , we have added 35 heard in america, we are adding because revenues are up 4 , 3 , and we are adding at least in to 3 , soth that 2 we have 178,000 people around the world. About 1. 5 on average this year worldwide. Sir Martin Sorrell, our guest host for the hour, and kate moore, jpmorgans private chief investment strategist. This weekend marks the 25th anniversary of the fall of the berlin wall. What does it say about germanys future . We will discuss right here on bloomberg surveillance. Good morning, everyone. Bloomberg surveillance from new york city. Tom keene, scarlet fu and Brendan Greeley with us this morning. Checkpoint, scarlet. To muzzle inuzzle 1961 to the collapse of the berlin wall, checkpoint charlie is what captured the imagination. Boys were murdered there. Our hans nichols is in berlin this summer november friday as we await. What will happen in berlin in two days . A wall of white balloons, some 8000 of these balloons. They have traced about a 15kilometer stretch of the old line, and sometime after sundown they will be released in the sky and that is where the big moment here i hope we will have video of it, it will be remarkable. The Brandenburg Gate is behind you. What portion of the berlin wall still stands . Less than 400 meters. It depends what you classify the wall, was it just a part that divided east berlin from west berlin or the part that itself, thein backside of west berlin from the municipality of the state of brandenburg . Very little. It is just for tourists. I lived there several times and reported from there. Cultural big of a force now to five years is what they call the nostalgia for the former east cultural force now 25 years later is what they call the nostalgia for the former east . Now it is not an ol east,west divide, it is a northsouth divide. Their work ethic is decided to be a little bit more industrious. Berlin is a party city and has always been a party city. It is a party city, but i want to bring up a photo that i remember seared into my childhood memory, and this is when the dialogue changed, folks. That is peter fechters body. He was a teenager. That is a grim photo of the grim august 1962, and that photograph change the debate on communism here to sir Martin Sorrell of w peavy, you went through checkpoints. Actually, 1965. Could you feel the tension at that time . Absolutely. We went to prague and it took us 12 hours. The train journey was normally six hours. Zech at not speak any c all or even read it. Checkpoint charlie in east berlin was extremely grim at that particular point in time. It is an amazing change from where we were. It is. 1 hard to remember is how much confusion there was at the time. You know, it is almost an accident that the wall was open. I had a friend who ran through that night and he said he was not sure if he was supposed to be allowed through or not and he got his nose broken by a guard on the way through and he said i had better keep running, we do not know how long the wall is supposed to be Henry Kissinger and ramirez of this with leading academics of the is supposeding to be. Henry kissinger and remember its of this with leading academics of the world, Angela Merkel grew up in east germany, didnt she . You know what she did . She went to the sauna. After the sauna, she had a beer. She did not quite know that it was real, and it was not until the next day she had classes, her physics lab to tend to. The next day she cross shoppingt to the center, saw the excess. One other thing about this is merkel, and this gets back to the tech debate, merkel was in the former east, which means that the shot of the was a real presence. Today as shere thinks and makes decisions on tech and National Security issues. I liked what you bring up the emotion of merkel who grew up in east germany. This is the 25th anniversary. You have an entire generation of kids who were not there when the berlin wall came down. What is the emotion of the millennials . Fromlot of the millennials the east do not really understand the significance of it. For the generation in the 40s and 50s, those on the east may have been left behind just a little bit. Number of Board Members from the west and the east, it really does not compare. I mean, Board Members that grew up in the ease, men and women in their 50s and 60s, just a handful on germanys top companies. Even if you look at the Big Companies to route europe, a handful are in the old east. Most of those are utilities. You do have some big auto plants, but there is a huge economic difference still. Hans nichols, thank you so much from berlin. Sir martin, aspiration wins. What you do in your business is the desire for products pure that is the first thing Angela Merkel did. There was a confusion of the event was east orle, buying in west made sense, and there was the bump, what have we got to do, the strongest force. It is the strong man of europe. I know u. K. May be growing faster at the moment, but if you look at the longer term, somebody said to me you could double your business in germany today, i would do it. We are discussing the 25th anniversary of the fall of the berlin wall. Our guest host in the next hour, Princeton Universitys alan krueger. And we have a related twitter question on his job say. Tom, this has to do with your morning must repair and what should be the tipping center for morning must read. What should be the tipping standard for the Service Industry . This is bloomberg surveillance. I am scarlet fu with tom keene and Brendan Greeley. We have a morning must listen to you this morning from les moonves, ceo of cvs about the ceo of cbs about the future of digital media. I have learned and a learn time in this business, you never count Rupert Murdoch out of anything. He is clearly one of the smartest men in our business, and god knows what he will do next. Atwe are constantly looking what Rupert Murdoch is going to do next. Forconstant hunger acquisitions and the other is spinning off different assets, trying to survive on their own. Which do you think is the more enduring trend . I would say if you had assess at the beginning of this year what kind of investment we would see from companies, we thought we would see more Companies Invest back in their businesses and engage in more capex, but we see a lot more deal flow across many different sectors. Our view is that Companies Feel the evaluations are not that high and that these deals are very compelling at these levels. As a result, we are actually seeing companies not spend on themselves and actually look to acquire or to spin off acquisitions they think are undervalued. If nobodys are buying low, then you are buying low. Is companies are buying low, then you are buying low. We are buying low. I think the m a boom if you runcall it that, they have out of opportunities, acquire a company come and see if you can reduce some more cost. Ruperts intent on time warner was to be an increasingly digital world, hbo, sports franchises. Top story onnt german production, a very busy morning. On thisrg surveillance jobs day. Right now lets get to top headlines. Here is scarlet fu. The u. S. Labor market on course for its best performance in years. The octobers jobs report is due out at 8 30 a. M. Eastern time and according to economists surveyed by bloomberg, employers added 235 thousand workers. The jobless rate is expected to hold steady at 5. 9 , which would match a sixyear low. Walt disney reported earnings that narrowly missed analysts estimates. The quarter was highlighted by the release of guardians of the galaxy. The picture became the top grossing movie in the u. S. This year. Cut ties with Adrian Peterson after the minnesota noings running back pleaded contest to a misdemeanor assault charge for whipping his child with a tree branch. Those are your top headlines this morning. The data check im going to avoid it with futures 2, delow 2 as well. Tanksrom kiev 32 crossborder in the ukraine. That gets your attention. We have not talked about this much, but my lord. That is worth watching as we go into friday and into the weekend. Digitalok back at the age and forward. After the hopeless 2011, the digital Strategic Vision of 2013, well, there is a 2015 of digital. Will it simply gain traction . Can digital actually gain money to replace the collapse of advertising and media . Sir Martin Sorrell is on the vanguard of this. He sees a certain desperation. We survived. Everybody said a few years ago we would go out of business. We are still here. Our biggest media customer is google. There you are you are in the news today on this afterthought of google systems wet wet our jilted google systems our jilted lover friend. If you google jilted lover, what do you get . Which Martin Sorrell . We must extort a merry thing is i got up this morning, turned on my apple iphone the most extraordinary thing is i got this point, turned on my apple iphone and saw that the growth rate has shrunk. An 80 premium on a Company Whose top line growth rates and margins have declined. It is that you would make that Acquisition Three days or four days before they announce mating . Dinosaurs i believe that maurice was very hurt by the blowup, nine months, he obviously wanted to make it work. John ran for whatever reason decided he was not going for it and i think they call maurice on the rebound. I think he has made a decision to go into sapient intake 19 times against his own will this transaction go through . It is done and dusted i think. Or twoubject to one other closing conditions, but it goes through. Interesting thing, they acquired was a of their agencies hispanic agency. It done and dusted describes my love life. Really awkward. We are just going to got help us. Lets talk about ha