The European Central banks in physic and not fix the economy on its own but ready to take more steps to help. Here is ecb president mario draghi. It is necessary to further longss risks of too periods of inflation. The governing council is unanimous in using additional instruments within its mandate. One of those unconventional measures is buying government bonds. That is something that has not been mentioned before, at least not officially. His comments come less of three weeks before the next ecb forecast, which is likely to show weaker outlook for growth and inflation. In jerusalem, and attack described as the deadliest in years. Palestinians armed with guns, knives, and axes killed four israelis in a synagogue. At least six more people were wounded. Police still be two attackers. Jimmy netanyahu says the country will respond with an iron fist. Toyota unveiled a new car that emits only water vapor. It is toyotas bid to compete with teslas electric car. Only a few hundred will be sold. Toyota once to limit to those located near Hydrogen Fueling stations. Missouri is preparing for more violence in the shooting of an unarmed black teenager. Michael browns death led to weeks of protest in ferguson, missouri. Sometime this month, a grand jury will decide whether to indict the white Police Officer who shot him. Governor nixon has declared a state of emergency and activated the National Guard in preparation. Officials say they will Cancel School the day the decision is announced. Theyre asking people to treat as a major storm event and stay home. This are our top headlines morning. Let look at stocks, bonds, currencies and commodities. Futures at negative two. Yields have done nothing since time began. The euro advances. Crude oil trading 75, 76. On to the next screen. A 117 on yen. Above 1200. S back brent crude still under 80. How bad is the pain in japan . Here is the animal spirit of japan. Nominal gdp. The collapse in 2008. Ugly, ugly, improving. His is good news for abe i still feel like every time we talk about this, we talk about japan as if there is no secular problem that they have, the demographics of the country and the problems they have getting women into the workforce. We keep looking at fiscal policy of Monetary Policy of forgetting theres a cultural policy that has to change their there. Getting out of home depot without multiple purchases. They have earnings. They have been doing better than good. They have been doing better than good. Earnings per share at 1. 13 one dollar 15 cents, analysts have predicted 1. 13. Yearoveryear sales, stores open at least a year, up 5. 8 in the u. S. Were not seeing a lot of retailers with those numbers. Overall, sales up 5. 2 , which is also better than had been estimated. Life is good. I got out of home depot and spent less than 100 earlier this month. How did you do that . A list and i left. With the way m a is, maybe we have home depot meeting with walmart. I think it is a good merger. Walmart and home depot . Maybe not. I think theyre going smaller, not bigger. That to japan. It is widely expected to be nymex needs a reaffirmation abenomics needs a reformation. Our guest host this morning is with Rbc Capital Markets. Also on the phone, Carl Weinberg who has been way, way out front on the struggles of japan. Carl, frame the import of the moment. How serious is the moment for the people of japan . From an Economic Policy point of view, this is a critical juncture. Japan needs people, it doesnt need more debt or need to print more money. It needs people and it cannot get them. Printing money is just bad policy. May win the election in control of the government again, but he may lose the economy as a consequence. Explained the importance of japan in the modern world. We know it is the secondlargest economy. We learned all of this in school, but things have changed with china. Why should we care about japan this morning . We care about japan because a lot of investors, a lot of people listening to your program may have investment in japan, particularly in japanese stocks. The japanese stock and it has been doing well. Is surged last nine in response to this news, although, it did so in a little bit yesterday in news the condo me economy contracted. That news will dominate. We have a bubble. Betweent want to fly the clouds because there are storms lurking on the other side. Right now we have a bubble going nikkei on optimism and policy and that optimism, in my opinion, is misplaced the economy can deliver what people are hoping it will. You say japan to its people. Is all of this just whistling past a specific graveyard that japan is not interested in immigration . Thats right. Japan is absolutely doomed by the fact its population is shrinking. You dont have to be an economist to know if your economy is increasingly fewer people every year, you can expect those people that are going to demand increasingly less stuff and they will produce increasingly less stuff. In our lifetime, weve only seen economies growing with rising populations and this is the first time were confronted with a major economy with a declining population. Carl, on the currency and currency debasement, how we can the yen get . A technicians can tie you better story on that than i can, but the final medals are in place for the yenta continued to weaken. Deal the offset is japanese pools of money are going to be pulling money home. This is a medium time story. That will offset some of the negative factors on the yen and break its decline. I think we want to look for a cheaper yen. Carl weinberg, thank you for your expertise. Were thrilled to bring in morsels sunshine. It is not that you are on the japan watch, but i think it is simple to say everybody is intertwined the hydrocarbons. Where does japan look to, indonesia . One of the things were concerned about with japan, and you mentioned sliding crude, this underscores a bearish sentiment. Japan is an importer of crude. All of the negative news about japan will reinforce very bare sentiment in the argument. Do you affirm the new mediocrity . I took a vacation. The world has changed. Abenomics isnt working. Is that the new mediocre . Im curious, when he talked about this Global Demand problem that youre discussing, where is the biggest demand problem right now when it comes to oil . One of the biggest problem sibleys with north american production, we dont have the need for imports coming into this country. Oecd, europe,g at japan. Chinas numbers have recently been a bit better, but we have about one Million Barrels of crude overhang right now in the markets. That is the fundamental problem, why we are in lower prices. Here froml, youre sunshine partners were you advise on mergers. Those cares about the phrase car weinberg used, a sucker hole in the clouds. Is that what you see right now . It is the new term of art. Sector hold. Hole. Ker do you see that . I think the United States is in a strong recovery mode. Japan is not. Parts of europe are not. I think it depends. Lets get a shameless plug. What you hope to accomplish at your conference. Every year,d of her because we love having you speak, we bring all of the m a folks, lawyers, bankers, private equity folks and at the end of the year a usually issue a paper and we talk about you issued tomatoes and they throw them at you. Where are we now . This is the year that m a for real. For year at some point it is going to stall a little bit because a lot of what is driving it at the last remnants thank you. We will get to those. What was it, 100 billion of deals yesterday . Unbelievable. But what does it all mean . It means nothing. Today, our twitter question i know i could not. Tweet us. This is what we are going to be talking about later in the 7 00 hour. Good morning, bloomberg surveillance. This guy is interesting. If you dont know him, you should. Hes from the fourth Congressional District in oklahoma, chickasaw indian and he is a really smart, interesting republican. He will join us in our next hour. Really looking forward to speaking to dr. Cold this morning. We say good morning. I am tom keene with her and in greeley and Brendan Greeley and julie hyman is in for scarlet fu. Activists are one of the 10 largest pharmaceuticals and the company are going to buy elegant for 60 billion and with that botox. And they will stop growing, cut costs, and focus on it salesforce. Marshall sonenshine, tom and i agree about this. I feel like when we see a couple , i always wonder whether it means anything. Is a possible to draw a thread between those two and say it means anything about the markets at all . Twoes, i think you can draw threads. Number one, cheaper stuff. Activist is about generic drugs, taking costs out of rmb, out of sales so you can smell so more drugs. Halliburton is about cheaper oil, meaning fewer projects need to cut costs. The second thread is both of these jets are about expensive stocks. Can you see the botox, is it leaking. Youre holding up for now. Clearly, you take it for migraines. Talks i noticed the price of stock. Yesterday was like a typical bubble m a reaction to halliburton. We finally reached the stupid season . Tough ona little halliburton because baker hughes is a prize and stupid season would be tough on actavis. Where you saw that, last week i was here and we were talking about the rumor about hasbro buying the movie studio. Dreamworks. Remarks was up quickly 15 and hasbro went down 5 . I said, i think hasbro shareholders are saying because all. I think there is a lot of that right now. You have to pay up to get these companies. What are people paying with . As much stock as humanly possible. Lets bring up a quote. Actavis does it make stuff, it buys stuff and sells it. One of the things with the planes they have is theyre going to drop 400 million in r d. How long can they keep cutting on r d it is financial engineering. At the moment, youre seeing the buying companies because it is hard to about yourself of new opportunities for patent expirations. It actavis makes generics. They were built on the foundation of summit elses patent is expiring, we can rush in there with a cheaper product. Just to clarify, they dont do r d for new stuff. They dont. You cant blame them because you have to come up with a hit him a little bit like dreamworks. But if you can makes up that competes on price, taking costs out of the hospital chain. Going back to connecting the deals we have seen. This looks like it will be another record year for deals. It is. We see when the market rises on days when you get a lot of takeovers announced, well, it is because people are optimistic. But in many of these cases, are they not coming from a position of strength . Arent they doing this defensively or because their core business isnt growing . Yes, julie, youre right about that. Lets take the baker hughes situation. Both of those companies are playing defense right now. For exactly the reason helima croft was giving. Wehave less demand for oil, have an oversupply, u. S. Is going energy independent. Guess what . Fewer options. Where is the Tipping Point on oil . We heard from Stephen Short is 72 a barrel. Does halliburton and baker hughes signal a behavioral change . I would watch for the opec meeting in terms of potentially where there is a floor. Are you going to it . I wish. It is on thanksgiving day. Helima croft has a higher floor and oil for saudi arabia, 100 a barrel. I look atdo, because the defense spending. So many of the projections on saudi arabia and the budget do not include defense spending because it is not probably disposed. That is 31 of their budget. I think break evens are much higher in saudi. Lets get back on script. What does halliburton mean for the oil business from your economic purview . In terms of the notion that the low oil price. Is this going to become the new normal . I guess i take a bit of a contrarian view because i do believe there is phenomenal support for higher prices out there from the middle east, but right away, im looking for this opec meeting. If you go into it opec meeting with one million barrel cut potentially, you could be up 10. Im sure they want the price to be higher. I want my salary to be higher. But do they have the negotiating power to do it . Compared to 1986 whenever 7 million extra barrels out there in capacity, we are at 3 Million Barrels before this our ins, im going to get you to tell me what this means for exxon mobil. She always goes to the opec in is still from 35,000 feet. Isnt that where we live at 6 00 in the morning . What does it mean the u. S. Is producing a lot of fracking and opec is meeting on thanksgiving . I dont know. Conspiracy theory. Were going to come back with helima croft, and of course, listen to her carefully on opec. In the next hour, the discussion on the middle east will stop look for that on radio and television in our next hour. We say good morning to you from new york city. It is bloomberg surveillance. Good morning, bloomberg surveillance. I am tom keene with Brendan Greeley and scarlet fu is off today, we have julie hyman. My morning mustread comes from lucy marcus. She wrote more generally about investing in the public sphere and infrastructure, but also the private sphere she writes goes back to financial engineering. We were just talking about this. You said this is a totally legitimate strategy, which makes sense for a company. Overall, as this worry you about the industry . It doesnt worry me about pharma because i think we have had an extremely level of investment in pharma. I think right now the consolidation is necessary to take some cost out. There are other industries we are underinvested. I suddenly think in infrastructure, this country is simply missed the boat. We had an opportunity to build and we didnt. How do we fix it . I dont think you can because politically it is not popular to build. The earlier point, if these companies are just buying other Companies Rather than investing , doesnt that signal a lack of confidence in Economic Growth . I think you to take a piece by piece. Situation,ughes there isnt as much as for oil rigs now. They have to cut back. These two companies did not really want to get together. But they had to. When you start 2015, what is on income statement . Is there a lot of fat to cut . In corporate america, theres always that to cut. I was teaching yesterday and we had this discussion with ted shell and we were saying, you see Large Public Companies always have a little too much fat. I think less of today than what have been the case a decade ago because activism has worked. We are ready have our quote of the day. , i think when bridges fall again, you will see fixes. Im thrilled you think that is quoteworthy. That is sort of depressing. Do we have to get to that point . Ande get a d infrastructure when we did not rebuild. Is opec going to make it . With 1986 upon them, are they going to learn . I think many market dissidents would say, no cut. But i think of weak growth with the Iran Nuclear Discussions coming up there it is, helima croft on opec. Nuclear talks, we will talk about that and opec. Good morning, bloomberg surveillance. Lets get to our top headlines. Hong kongs government starting to clear away barriers during the seven weeks of prodemocracy protests. Authorities met little resistance from the demonstrators who knew about the move ahead of time, but there has been no action to clear barricades in a more volatile protest zone. Sony is hoping for a new growth and turning its eye to a superhero for help. The company says it expects new spiderman movies to drive growth as much as 36 in its pictures unit in the next three years. Sony is pushing the idea of growth in its entertainment business or than your after rejecting the push to spin a part of that unit. A recordsetting deal for baseball star don carlos stanton, the 25 year old center deal withs 1320 59 the miami marlins. It is the most lucrative deal ever for an american athlete and averages 25 million per season. R more than 154,000 a game he led the National League this season with 37 home runs. I have not done the math to see how much that is per home run. Unbelievable. Remember how we were having his discussion about how baseball was becoming a niche sport . Your son is playing baseball . Our youngest son is the outfielder for a city college. The oldest is a harvard large school in the middle guy is at usc. We love city college because he owns that turf. These are tying into media deals. Are they goingn to learn about extending it out five years, tenures, 13 years . And yet the sport continues to prosper. Well, i guess it does. Im worried about baseball. I thought this year was a real Tipping Point of disinterest. What we have, data check . Lets take a look. Shinzo abe saying, give me another chance. Future saying, we have been burned before. Nymex crude ticking up a hair. Conveniently, were talking about oil today. Will be talks between iran, america, and europe with a selfimposed deadline of november 24. Minimal Common Ground. Helima croft is with us with Rbc Capital Markets. Has theeverybody question of, why are these talks important to america . It is the big question of, can you get a final settlement on the iraniannuclear issues . I think this is very important. The notion there is no Common Ground i mean, in the last year, significant, ground has been reached. There are some big hurdles remaining. What is the biggest hurdle . Sanctions. Can you pull off the yuan sanctions, how quickly can the u. S. Sections be removed . Also what kind of Nuclear Architecture iran should have. The white house once a deal. Before tew before the new co of course. Once you have Mitch McconnellSenate Majority leader, the transfer new sanctions is really on the table. Over the summer we saw estimates of whether a joe kennedy reached by the 24th whether a deal can be reached by the 24th. Where is yours . 35 . And the iranopec Nuclear Negotiations are tied together. I think if you get a deal on iran, that puts the pressure on opec will stop people will start to say,