Karen says there has been no progress made. Theres a number november 24 deadline. Iran rejects allegations it is trying to build nuclear weapons. Internet Service Providers are dismayed by president obamas call to treat Internet Access to the common carrier, comcast called the president s proposal about a gore reversal that would harm investment and innovation. At t and verizon both indicate they may challenge the plan in court and the industrys chief lobbyist Michael Powell says we are stunned. He also used to run the ftc. President wants the fcc to regular Internet Access with the same rules of does for phone companies. Single state in china, single ay on alibabatis a result record 5. 9 billion worth of merchandise in the first 14 hours of the day. The biggest shopping event in china. Foreign brands are taking part in single brand. Among them, and magneto, calvin klein, and costco. Eagle, calvin klein, and costco. The new york city doctor who came down with the ball is getting out of the hospital today. Craig spencer no longer has the virus. He became ill in october 23, six days after returning to new york from guinea. You been treating ebola patients. He was treated with an experiment old drug and also had a blood transfusion from another ebola survivor. That treatment can increase virus fighting antibodies. Those are our top headlines today. It would be a boring get a check except for what happened that 2 56 yesterday afternoon, yields do nothing, futures up fractionally, currently markets and Commodity Markets are stunning. Euro, weak or. Well, 76 handle. Oil, 76 handle. 12. 67, the doubt. Dow. E yen, weaker. Gold tanks, will down to 1140 handle about an hour ago. Over oil, which if i was teaching that class, this is a fancy chart off the bloomberg these show the continued no bit. Down we go in oil and we rollover to the depths on west texas intermediate. Were just in search of a bid. Talks we keep rewriting the story. We have to rewrite the story again look at a few new points. In fact, the united Emirates Energy ministers came out to say the oil market is oversupplied partly because of u. S. Production. A little jawboning to say the least. 2 50 6 p. M. Yesterday, will moved further south of our play abruptly. Gold plunges. I0,000 insight exaggerate. Were honored to bring you jim grant today, out the new book. First, jim grant on the many specters of deflation that are out there. What does oil signal to jim grant . More sellers and buyers. If you look at the disinflation, the deflation, the shades a price decrease that are out there, does it all folded into gold, oil, and the dollar . I think your is a kind of a hypochondriac spectrum rather than substantive. Deflation to me as a disarray china of credit of people who can borrow must liquidate something. The selling adduces further summit, which is induces lower prices. To me, that is deflation. I dont see any generalized deflationary undertone in the world. You dont see the sweat yet. It seems at a time of material progress and the wonders of digital technology, prices ought to be twin on because as it costs less to make things, it ought to cost less to buy them. Central bankers have taken what ought to be a wholesome state of affairs in a pronounced it deflation and are doing their utmost at breaking a sweat, doing everything they can to levitate the assets. We got two minutes into the show until jim grant took a shot at mario draghi. I want to also mention, happy veterans day, jim. I was in the last cell sail powered aircraft carrier. No i wasnt. What are the risks of Falling Oil Prices . Here is one. There is immense oil producer in brazil called petrobras and it is under the thumb of the socialist brazilian government. Prices are controlled. As for politics as much as forprofit. Their debt issue is better brought and with the suppression of Interest Rates worldwide, the debt securities, which ought to yield something to reflect the risks inherent in the oil price and the corporate structure, yield a mere five and 5 8 percent or so. This is a very marginal investmentgrade or imminent speculative grade credit. If youre looking for risk and oil, we should look at the levels of yields attached and that goes into the highyield market you mentioned before we went on air. Absolutely right. Energy is a significant component of napoli the equity markets but the highyield markets. If you look at this widening we saw in october, the entire move for the entire month was due to energy spread widening out. The result of that for me is, yes, risk, but also the opportunities. If we do think Oil Prices Rebound from here, some of the yields, some of the high yield names can be significantly distorted. Everyone is looking for a bounce in the oil. Were all desperate for know, we are not. I think we all looking at the store to figure out when the story hasan end. You say petrobras is under the thumb of the socialist government. Do you draw a distinction between the way brazil runs its oil policy and russia runs its oil policy . It seems they are not one and the same. Resumes regimes tyrannies. And inte is the doctrine russia, and i draw similarities between the two. If you are a capitalist in brazil, you are feeling tyrannie zed. Of reported from brazil and russia and ill was a lot more scared in russia. I think that is probably a good diagnosis of the politics. But if youre looking at a status regime in enterprise, there are more similarities than not. Yet a look at violations of the companies concerned. But petra brought yields long 58 , acuritys five and russian oil producer yields rather more with a better ratio of income to fix charges. If youre talking about business and finance rather than politics, you see similarities between statist regimes and you look for valuations to discern which is the better or the least risky investment. Anastasia, what do you think . The status regimes, you can extrapolate that to the broader emerging markets whether were talking about brazil or russia or india, all of them in gauge in energy policies. They have subsidies. They control those Natural Gas Prices closely. To me, the differences, which government is lifting those caps, which once is not . With the president in china and all the pageantry there and nonstories. Jim grant, i need to get your comment on a global gdp and what Christine Lagarde says is the new mediocre. Do you agree with the new mediocre . I doubt think we should not be fatalistic about accepting, economics. Gdp estimates have gone toward jim grant. You cant even count gdp, let alone world gdp. What policymakers say we ought to settle for the new mediocre, what they are saying is our policies have failed. You kindly mentioned my book, tom only kind this hour. Thank you. Shameless plug. Go on, jim. We have collectively come to say theres no way out of our difficulties except through greater statism, through more and more taxation, more spending, more Interest Rate suppression, more central bank intervention. It is not always been thus. It seems when we begin to accept the new mediocre, we have to reconsider history. The forgotten depression. This is about tuition payments. My kids are through school, so im done with that. With a lot more coming up on bloomberg surveillance. Were just getting started. The worlds busiest Online Shopping day is underway in china, completely manufactured, by the way. Tom is celebrated by buying a couple of new bow ties. Is your necklace from cree winston . Nice try. J. Crew. It was on sale. This is bloomberg surveillance. We will be right back. Hour,ing up in the next Abby Joseph Cohen will join us from goldman sachs. Also, blackrocks looking at with201k, where are you Retirement Planning . That gets us to our twitter question of the day on retirement we need your many answers. How are you preparing for retirement . This is bloomberg surveillance. I am tom keene with scarlet fu and Brendan Greeley. We go to china because they are shopping right now in china. It is november 11, their singles day. What i find fascinating, it is a completely manufactured shopping day. A couple of students in the 1990s had invented it to celebrate their singlehood. It is because 11 11, when you hold up the numbers, look like bare branches, which is a andrence to spinsters bachelors. Yes, tom, im looking at you when i say that. What is interesting, alibaba began commercializing more of a bachelor, dennis than a spinster, really. Commercializing this five years ago and last year he took in 5. 7 billion in sales. That is more than cyber monday and black friday combined. It is like mothers day, right . Mothers day, valentines day, everything combined. 60 margin. I think that is 3 billion. I was in india couple of years ago when youre trying to invent valentines day there. The stores had recruited ball he would stores to Record Videos explaining what they did on valentines day that you could accept it was actually a thing. Anastasia amoroso, is this enough what has to happen to stimulate to mystic demand . Is is a symptom or tried to nudge it along in china . It is been happening for that number of years. It is not a fiveyear plan. We have to boost the average quality of the chinese consumer. But over the last year or so, it has felt like it has been his constant struggle to get it there. Nevertheless, since september, i think the Chinese Government for the central bank, have taken a lot of steps in that right direction whether it is relaxing mortgage requirements, whether it is relaxing some of the home purchase restrictions, whether it is boosting lending from the banking sector, i think it will see through the economy as a go through the Fourth Quarter and eight into the First Quarter of next year. What is interesting, now that alibaba is a publicly traded company, it is looking to make single stay much more than just a chinese event but a global event. Yet amazon promising five day shipping for anyone who buy stuff from its website to china. , you fabulous photos in your book. One is of a young harry truman in a store in a different time of consumption in america. What can china take from us to boost their consumption . Do they have to lever up as we did . They have done that. But has the consumer benefited from that leverage up . The next major holiday in china to be announced is debt day, which will be much bigger than single stay. As gdp andce as big growing twice as fast as gdp in charliecording to the shoe. We talk about consumption, but consumption is constrained by an overleveraged society. So you did not buy yourself anything for single stay . No, i am a happily married father of four. Speaking of debt in china, it is true the debt levels have accumulated, but it does not necessarily benefit the average chinese consumer. If you look at mortgage debt a percent of gdp, it is not what it is in the United States or canada but theres a lot more catching up to do from that standpoint. The debt burden we see is in the local government sector and local corporate sector. I do agree the rate of growth has been staggering their. What are you looking for . Due to have a feather landing or a bowling ball landing . Im looking whether the Chinese Government wants to achieve the corporate sector or whether they want to be selective as far as which issues are allowed to go, which are not. We have seen the past couple of years, we have seen default and not performing loans go higher, but i think china has been very selective as to which key local governments can or cannot go under. The local governments, that is the real scary thing, right . But Corporate Jet as well. If you look at who is to the larger issuer of corporate debt over a number of years, it has not been the u. S. The fastest growth is happening in asia corporates. There are still five more hours of shopping. I wanted to highlight a couple of things, the different chinese websites are selling. Things to our Production Assistant for coming up to this. You of a tshirt that translate into single forever, bachelor forever. Boiler also a double that is been discounted heavily. Also, a house on jd. Com. Ra is should point out joff our secret weapon. She is. Every day with the drip of data from china. She does a Chris Christie thing. I can see her offset doing it. Thank you for that. Alibaba will tally up the numbers. David rubenstein, coceo of the carlyle group, today at market makers. Will be contemplating which real estate were buying for single stay. Morning, good veterans day. This is bloomberg surveillance. With scarlet fu and Brendan Greeley. It is time for our morning mustread. It is a neutral mustread. This is from the legislative airs senior be the at at t vp at at t. His legendary for making everything bend at his will. Everyds cupcakes out to telecoms reporter. His cupcakes. D i just look at them. Heres what he wrote yesterday when the president announced to is going for title ii regulation on the internet it is such a rich, deliberate obfuscation. It is amazing. If you take nothing for else from this, the regulation is not on the entire web. It is not end to end on the internet. It is regulating the last mile, just the copper that goes to your house, the monopoly. Current regulation designed in the 1930s for bell phone monopoly that no longer exist, yes, does, because at t has recreated it. You agree witho this . Are we recapitulating Herbert Hoover . No. That is all you have to say . Can we get some coffee for mr. Grant before we get to his book . This is the test pattern time of day. No big insights. We have some of the responses. It is been a day since the president has announced this is what he wants to do. So too did her so senator ted cruz says youre the expert. Can i size this up, is facebook and google versus comcast and at t . That is absolutely what is going on. And the president is backing mr. Page, mr. Schmidt, mr. Zuckerberg. Basically, the fcc regulates at Mitigation Services and looks at information sorry, looks at Information Services and telecommunications. Very different things. Scarlet fu, will her 400 a month cable bill go up because of what or will i be buffering . The president with is proposing is at t and be about to charge netflix so that netflix has to raise rates. So netflix goes up to 10 . Youll have to go to another country where there is competition, like socialist france. My cable bill is not going down. No, but your netflix bill is not going up. The is so huge with president said. If you follow internet regulations, it is like the sox won the series. Tom is interested. Ofcoming up, we have more Brendan Greeley. Stay with us. Good morning, this is surveillance vortex has mean of you look at a polar vortex a little bit early this year. Lets get to the top headlines this tuesday morning. That is not actually going to happen until thursday or friday. 36 Year Prison Sentence for the captain of a doom south korean ferry. A judge said he could have saved lives had evacuated passengers before he himself a bin and ship. Prosecutorss had sought the death penalty. Only 172 of the 476 people on board survived. Vodafone reports a smaller decline in Service Revenue than expected making at the latest wireless carrier to show signs of recovery in european markets. The company narrowed its fullyear earnings forecast citing what it called stabilization in commercial performance and operating trends. Shares have jumped on the 6 in london. Mirsky reports of Third Quarter profit higher as the worlds biggest Container Lines cut cost and boosted box wine. The company said earnings rose on the 3 to 3. 2 billion. It moves almost 1 6 of the worlds containers of the world. Shares are up 13 this year. Those are your top headlines. Split,tte the brick india joyce to diesel and kerosene russia announced a plan to squeeze ruble speculators, a sign only russia is not a control of the ruble. Brazil sits and waits for china. , she believesoso in growth. You wrote us an email yesterday where you said if you believe in growth, you believe in emerging markets growth. Why should i believe in growth to begin with . It is a conditional statement. Youf you believe in growth, believe in emerging markets. I believe in growth because what we saw in the first couple of weeks of october, i think it was a growth scare. What we came to realize over this subsequent few weeks, growth in the United States is still very much intact, 3. 5 percent gdp growth is above consensus. Maype, i think the ecb debate this later on, but ecb is to the right thing to support growth over a twoyear time frame and bank of japan stepped up to the plate and boosted growth expectations, boosted inflation expectations. Because of that, there is definitely a case to be made for g3 growth. Because the of the export link, it tends to be more cyclically expose that even the u. S. Market. To the ecb and the boj make or what the fed takes away . They really do. If you look at the Balance Sheet expansion for bank of japan, for example, it is actually above and beyond what the fed has done in the United States. The gap, the deflation problem they had, is above and beyond what the fed had to contend with. So i think for the bank of japan, the answer is yes. For the ecb, one interesting thing, everybody expects a trillion dollar or i should say trillion euro expansion for the Balance Sheet. One interesting thing that is going to happen, if the banks do in fact borrow in the second round of targeted return financing operations, part of that borrowings, significant part, will go to pay the previous ltro borrowing, so you may not see a significant pop in the ecb Balance Sheet. But i think over the next c