President obama said there are larger issues to be resolved and they wont be fixed by throwing bottles or breaking car windows. He spoke last night. The situation in ferguson speaks to broader challenges that we still face as a nation. The fact is, in too many parts of this country, a deep distrust exists between what enforcement and communities of color. According to prosecutors, the most credible witnesses told the grand jury the teenager Michael Brown charged that the Police Officer just before he fired the fatal shot. Turns out that chuck hagel did not put up a fight with president obama asked him to resign as defense secretary. One pentagon official said he was ready to go anyway. White house officials disagreed with hagel over policy. Hagel was frustrated with the white houses management style. None of that came up when the announcement was made yesterday. It has been the greatest privilege of my life, the greatest privilege of my life to lead the most important, to serve, to serve with the men and women of the Defense Department and support their families. I am immensely proud of what we have accomplished during this time. Among his possible replacement, former defense undersecretary Michele Flournoy and jack reed. Honda may face a record fine for failing to tell u. S. Regulators about injuries involving its cars. More than 1700 claims are involved. Honda could be fined up to 35 million. This came out of the investigation into those airbag incidences. We have a story of Insider Trading that comes from the files of the fbi. In analyst at the hedge fund giant citadel told agents he made millions of dollars trading on information from an insider at del. Neither the analyst or dell employees were sued or prosecuted. People familiar say the authorities did not have evidence to charge the analyst but nine people at five firms were eventually convicted for trading on tips inside dell. Buffalo, looks like a snowstorm in the east may make thanksgiving travel miserable. As much as eight inches are expected to fall from virginia through new york, north of new york city. It may be worse by the time the storm hits western and central new england. Those are our top headlines this morning. Let me do a data check. I am gasping. There we go. Futures up 2. The markets are barely moving. Crude oil sort of returned. On to the next. A better performance by the russian ruble. Over to the mac monitor, something to i cant get the right word out. Forget it. Draw your attention . Yes, in india, the regular currency is weaker, weaker, weaker. It is really not that bad. It is back to average on a trade weighted basis. You have to be careful about the certitude of what currencies do. India thanbetter what you would see most of the time. I have no idea why did that chart today. Come on, tell me my bow tie is out of work. Your bow tie is just the start of your problems. Thats true. Ok, lets look at ferguson, missouri. Very serious for the nation and watched around the world. Chaos erected last night with reports of heavy automatic gunfire coming later in the evening as well as protests across the nation. In new york city, protesters walked from union square up 6th avenue north to times square a verylice monitoring peaceful demonstration in new york city. Is a point of discussion this guess. , with us, to this really goes to a year geopolitical unrest, whether it is ukraine or whatever or ferguson, missouri, there is been a lot of surprises this year with unrest. On the ferguson issue, i want to say i think theres really an issue here that protesters are concerned about inequality, concern about racism, and i think we can do more as a country on those two issues and i think we should do more. Lisa, when you look at this idea of inequality, everything i read says, yes, it is getting worse. Is it getting worse for good reasons . Or d. C. Real step back for the nation . Fundamentally when you look at history, there has been a lot of income inequality whether it is in the United States or quite frankly in other countries. Certainly as we look at the recovery this cycle, it has gotten somewhat worse. Is it reaching outside the u. S. . Globals absolutely a story. It makes the u. S. Look very bad on the global stage. We do need to keep our house in order. We need to project a positive image of america to the world if we want to lead on human rights issues, on democracy issues globally. We have got to have our house in order here in the United States. Did obama misstep last night and his remarks calling for peace, asking for people to retrench with the people who is beaten to were in the streets, not watching, like we were come in their homes . I think obama said exactly the right thing in terms of asking for peace. Think wee same time, i as a society need to take the steps necessary to combat racism and to improve decreased inequality in the country. It is something you see when you live abroad and travel abroad, people are shocked that there could be race riots in this country. They think of this country is the one effort got to abolish slavery for next 80 years. Feds responsee to the crisis has been fueling any of this inequality that were now seeing in action of fury toward . I dont think so. I think the feds responses been extraordinary. I think history is going to in in herggest that done road job. Outorgan stanley has been in front of this as well. 20 or gdp of 3. 6, 3. 2, even up to 4 in boom times. My kids dont know that. Theyve never lived that in the business world. There is an urgency to getting Economic Growth going. Do you see that urgency in washington . I dont. Point, weve got to the point where Monetary Policy is absolutely everything. It is time for fiscal policy to step up. You have been critical about the president s leadership. What would you like to see them do to actually spur Economic Growth away from the emotion of ferguson . What can a president six years in do . I think a smart reconfiguration defense spending would be something. And i think in terms of backing off from afghanistan, backing off from iraq, those are very ensive wars and i think we did that nine months ago there was a column headline, we will take the Defense Budget back to 19441930 nine. Chuck hagel said, wait a minute, we do have these things going on. Was he thrown under the bus yesterday . The inside politics of the chuck hagel issue, i have no idea. What i would say is Ashton Carter and Michele Flournoy, the most likely successors, jack reed i think is indicating his not interested, but those two are great choices. Are strong on policy. I dont see how you can affect a defense policy and cut the budget at the same time. Youre talking about complete easy gridlock were nothing is happening anyway. More and more people at more senior levels are pointing the finger at one another. Lisa, when you said you think it has been heroic efforts in terms of the fed and saving the economy from a great recession, do you think your average american would say that . Clearly, professional investors benefited from it, but if you walked on the street of st. Louis, missouri, would one agree . I dont think the vast majority of america believes that the recovery has been what may be some of the data says it is, but i think we are at the brink of it. When i say that, our perspective is were just at the point where we are really one to see employment tighten up, that 5. 9 of employment rate, just at the point where we think wages are going to start going up. Starting to see gasoline prices at the pump come down. That is something that benefits every single consumer in america. I think were right at the brink of it. We are about 183 point rally on the dow away from 18,000. Fury,u not surprised the the chaos were seeing unfold in the midwest is not readily investors . Not being reflected in the stock market . I think the markets have been extraordinarily resilient this ande to geopolitical exogenous shocks. We have been able to shake off everything from ebola to russiaukraine do things that have happened whether their protest in hong kong and etc. So im not surprised that the markets are looking to yet another upset. Lisa shalit with those, underscores as well looking at international relations. We have a twitter question on ferguson. Tomtom, we have to take it to social media. It will be fergusonfocused. Us bsurveillance. Good morning, bloomberg surveillance. Withis ferguson, missouri too many elements of what i witnessed in 1963 and 1964 and another time as a child, the firetrucks are out putting out fires in ferguson near st. Louis, missouri. That image from a this morning. Good morning, bloomberg surveillance. I am tom keene with Olivia Sterns and Stephanie Ruhle. Scarlet fu and Brendan Greeley demanded to have this tuesday off. Olivia, with the discussion on ferguson. Are you claiming you were a child in 1964 . I was deadly serious. I let that go. You could feel the sweat. It was totally different than ferguson. You could feel your parents shaking. It was like a pen dropped thing. I remember the sound of guns. I remember the helicopters, which back then sounded different. You could smell the smoke. Did you ever think 50 years later, no offense, we would still be having absolutely not. It is a polygon to be different levels. Ferguson is burning. Kay also rubbed it in the Missouri Town after grand jury declined to indict a white Police Officer for fatally shooting an unarmed black teenager. Businesses were looted, police cars burned, dozen buildings went up in flames. We go live now from the streets of ferguson. You were there. Describe the chaos you saw unfold last night. What was your experience . It was very similar dow time described the 1960s tom described the 1960s. It were smoke, fires, gunshots in the air. A couple of police cars were burned down. Several businesses were broken into. There was generally a sense of chaos on the streets. There have been nightly protest for more than three months, but last night was unlike any previous night here in ferguson. There was significant damage done all across the city, including, as you mentioned, about a dozen buildings that were burned to the ground. President obama came out about two hours after the indictment is the to the country. Or his comments heard by the people on the street were his comments heard by the people on the streets . The situation on the ground had are ready changed by the time the president began speaking. As soon as the decision was announced by the prosecutor, people at taken to the streets, some of the looting had are ready begun. Some businesses had a ready been attacked. I dont think people were listening to the president at that point. As you say, there were not listening to the president. There were looking at the immediacy. What is the catalyst to see a continuance of this violence and protest into tonight and the coming weekend . People have been waiting for this decision for several months , and what we saw was kind of a now spelling of emotion that has been pentup. I get the sense that will be continued demonstrations. People will continue to take to the streets. There will be more National Guardsmen being brought out. We have a potential for more significant clashes between the police and the activists. What does it look like right now . There are still businesses that fires are trying to be put out, and there are still fires at several businesses. A lot of people have cleaned up the streets, but there are ready calls for 7 00 a. M. Demonstration here at the courthouse in clayton, missouri where the grand jury met. It looks like people are gearing up to come out to the streets once again. What do you think we will see today in terms of looting . In the light of day were people could be arrested, how do you compare that to what we saw last night, the rage, the fury . That was midnight. At 9 00 a. M. , people will be back in the streets. Do you predict it will be more peaceful . That is likely, especially given the governor has called on more National Guardsmen to show up. Were likely to see more heavy Police Presence guarding some of these businesses in the light of day. But no one knows what is going to happen when night falls. It is pretty cold, but that did not stop people from coming out last night and it is likely people will continue to come out until everything fizzles down. What happens now to Darren Wilson . He is unlikely to walk the streets of ferguson ever again. Weve heard he is likely to resign from the force. We heard yet time to get married in the last month. What happens to him now . Nott is likely he will return to the force. We also have to remember he is still the subject of an ongoing federal investigation as well as the Police Department could be hit with a civil lawsuit over how things played out back in august. Were unlikely to see him return to ferguson as a Police Officer. People are still going over his testimony. You likely may be doing interviews he likely may be doing interviews, but we dont seem likely to return as a Police Officer. But what about his personal safety . For the most part, he has not been very visible in ferguson, so we probably expect him to continue to remain in hiding. He may do an interview on television, but i dont expect to see him out and about in the community. It is likely he will relocate and position himself far away from these protests. We will leave it there. Thank you for joining us live from the streets of ferguson. We will speak to you again in about an hour. Are twitter question of the day bsurveillance. Coming up, investment in 2015. We will alsos big about the geopolitics of the moment. Stay with us. Good morning, bloomberg surveillance. Imt umpteen. I am tom greene. With our morning mustread, Stephanie Ruhle. Im going to go with a grand slam. S,od t to the headline , he intended to send a direct message to an individual but like you and me, big dog fat fingers, and he tweeted out lets back up. Having beverages of our choice, this is the one guy who would never do this would never do this. We dont know what company he was speaking about but, clearly, your some savvy startup who was scheduled to meet with the twitter top brass december 15 and 16 and they have a bid for you. Do you direct message . Ive got too much to say. I shouted across the newsroom. Morgan stanley . No. Andf i am on the sell side im saying, you dont do this, you dont do charity, you dont do personal life if you are an executive at twitter, there encouraging you to use twitter. But this is a bigoops. And i assure you his former colleagues at golden are laughing or heads off right now. He actually misspelled. What is so important, people who criticized twitter for not changing, this one event will make them change the algorithms of direct message. Ont use direct message do you think it is going by way of snapchat . Know, be your friend, if i say Stephanie Ruhle is smoking hot gorgeous today pay h ey out to the public, people may know about my crash. Terrible. Anthony noto did this . Unbelievable. Dmfail. He has never direct messaged in his life, we are honored to bring you Allan Meltzer in the next hour. Without question, the modern feds greatest critic. ,llan meltzer and David Malpass the day the fed build out the nation. It is bloomberg surveillance. Good tuesday morning, i am tom keene with Olivia Sterns and Stephanie Ruhle. They will be off thursday, i will be working. Top headlines. Your headlines, violence or rubs in ferguson, missouri, protesters looted businesses, torched police cars. Chaos broke out moments after the announcement that a grand jury would not indict the white Police Officer who shot an unarmed black teenager there last august. Police used tear gas to try to break up the protest. Several people were arrested. Feel guilty about eating a big tub of popcorn at the movies . It will get worse. The fdas moving to new menu labeling for many theaters for movie theaters, restaurants, Grocery Stores. They will have to disclose how many calories are in snacks and meals in an effort to fight obesity. A film biography of apple cofounder steve jobs finds a new home. Comcast has picked up the project less than a week after sony bailed on it. It is based on the best selling biography which was just published weeks after jobs debt in october 2011. In october 2011. Do either of you know the curse on this thing . What is it about this movie that it is so hard getting it off the ground . I heard many have turned it down. Aaron sorkin, i just saw emily chang to view him and now that i know him he takes a shower six to eight times a day, that is like taking a to another level for me in terms of it was a conjugated project. You know what else . Has been lost on me. I used to like that show. Have you seen i cant believe youre not watching it. I love it. I love that theyre using a bloomberg terminal because it was the only way to break business news. I just feel like at this point the characters are unlikable. Who are you rooting for . Um, that is a good question. You always want to root for jeff daniels. This season, he kind of a bystander. The newsroom does a bloomberg terminal. This is the secret of bloomberg. Be careful. These are individual headlines that were invented 25 years ago. A guy like anders corr can get russia andrg and go ni know what is going on. Were going to talk central banks. We are. Lets talk u. S. Stocks. They eat out record highs yesterday. Eked out record highs yesterday. Allan meltzer lisa shalett is with us. Japan is finally stirring. Are we celebrating too soon . Dont think so. European markets and japanese markets have really lagged yeartodate. The concern about Global Growth has been pretty profound. So i think the fact markets are starting to perk out, particularly outside the United States, they trend i think will characterize 2015. U. S. Markets have been outperforming for 6. 5 years. That is