Prices are down more than 30 percent. Saudi arabia pushed back. Here is the secretary general. Last four years and a half, we have a price decline. Theave to wait and see how market will set. I have said many times you that we dont want to panic. I mean it. Federal regulators are now formally debating a nationwide recall of 40 a faulty airbags. They have told japans to Cott Corporation to recall by december 2. So far, they have recalled the devices in areas with high humidity which is blamed on making bags malfunction. Gains in Consumer Prices fell for a third month in a row. For the first time ever, yield on the twoyear note fell before below zero. British prime mr. David cameron is raising the prospect of britain leaving the European Union over immigration. Cameron wants leaders to restrict welfare payment to immigrants. He also wants to reduce immigration levels. Immigration benefits britain. But it needs to be controlled. It needs to be fair. And it needs to be centered around our national interest. That is what i want. Speeches an attempt to counter the rise of the u. K. Independence party which focuses on immigration. Some shoppers got an early start to black friday. Bigbox stores, including walmart, work among the openings last night. Yesterday, thes secondbiggest day ever for online sales, only last years cyber monday was bigger. To equities, currencies, commodities. If this werent the first after thanksgiving, he would be a huge market day. Oil, we will cover that on surveillance. Well under 70. There is complacency and the dow is now near 18,000. European yields, which we will touch on here as well, stunningly low yields. Joe, help me out here. Here is opec. Heres the crash of 1986. We are doing it again, arent we . We have been in a longterm. Rend for arguably 20 years now it feels like there is the possibility that we could go for a very long time in the other direction. Trichet, it is not just that oil is down but the abruptness. The speed. 25 in a matter of weeks. 39 since early 2011. Is sin,tithe particularly focused on the 10year. Ryan, the news is the news. What was different this time in vienna . What was shocking for most of expected thewe cuts and most investors expected the cuts, what no one expected was that they would take another to meet again imperative that was the real surprise. Everybody thought there would not be a cut but they would agree to meet in a few months. After all, with these kind of declines, wouldnt they want to get together in a couple of months and reconsider their decision . But no. You look at the headline opec going after north dakota. What is the real story . What is the why of what saudi arabia did . Truth tois a lot of that. He mentioned 1986. That is when the saudi arabias took on texas and houston the last time. I think that is a desire by the saudis to shake out some of the show producers in the United States. As you get to 60 a barrel, that is tough for them. Also are not big fans of the iranians. The iranians cannot sell their oil to many people. They have very low production, very low sales. Now the price of oil is falling for them as well. That is good for the saudis, too. Weekend d over the thursday was not the weekend. Im sorry. Olks, is the tryptophan i am just coming out of it. When you look at the oil markets, they were down in new york and london. We saw that on thursday about bad oil loans. When will these low oil prices catch up with the city and with wall street . Thats a good question. It will filter through, right . No one was anticipating this kind of decline this quickly. I think you are looking at three to six months. , we havebeen so sudden to realize that it does take a while to filter through. The normal business cycle. So it will take a little while. This is really a game changer for years to come, not just for oil really. Clearly, the saudis and maybe the other gulf countries within opec, are comfortable with low prices for a long time. Thank you so much. There is a huge market story that joe and i will get to. Retail, you are sick of it and we are sick of it, stories of black friday. ,ut there is a certain frenzy better income growth, greater confidence, but lurking is amazon. I like what martin lidstrom says in his book. Truth and lies about why we buy. Here to provide psychiatric study, martin lidstrom. You see the frenzy in the media over black friday. What do we get out of the stupidity of people breaking into a walmart . People are not here anymore. They are going online. The concept doesnt really exist. People are spending more money on cyber monday. We are clinging on to black friday as an icon. What is the appeal . Why do people line up at midnight for these doorbuster . Is a segment of the population that enjoys it. You have to remember that people are addicted to gambling. This is the media keeping it alive because it is almost as simple to tell the world this is the moment for you to shop. People hear that and then they go online. Are thea video joneses shopping the same way 2014 than they did 10 years ago . No, but there is one similarity. Wordofmouth. The majority of what we do when due to wordofmouth. Only 6 because of social media. That has not changed a lot because we fundamentally do not believe what we see online. Talked about how nobody believes what joe tweets out. [laughter] retail and internet has changed because of this trying elation between bloomingdales or next to it was. There has not been any change in the influence of social media having an effect on what we buy. Exactly. Social media right now is the big sales. E nots driving traffic but is lifting the whole bucket. If you see great deals at walmart, a big screen for 200, these are big deals. Is it going upscale . This will be a theme with Gilbert Harrison in the next hour. Is it going upscale . Yes. We see people preparing very carefully to buy a couple of expensive items. But those people going out shopping on black friday and cyber monday are not the big spenders. Those who stay a lot of money, they stay home. Are they profiting . What will be the factors that determine how strong the season is . Prices, number one, and unemployment rates. Yes prices going down a lot, that means the average consumer has 30 more a month. That is why walmart was announcing they are going off 0. 5 percent spending because consumers are driven by gas stations at walmart. However, will it influence black friday . Not really. Our twitter question goes back to black friday. Are you spending more this black friday . I think the answer for all across america is yes. So kleinman will join us. Brian cornell of target, the chief executive officer live at 10 00 a. M. As they try to get through black friday. The turnaround at target after a challenging 2013 and 2014. Look for that on Market Makers later this morning. We will do a dated check every 20 seconds. Joe weisenthal of Bloomberg Media with me this morning as we look at markets, futures, negative five to what was the gle market sister stick market statistic that captured your attention . I am paying, attention to the incredible collapse of european bond yields. ,he weakness, the booms obviously french yields, this endless bid for government bonds. , i just saw that u. K. Deals are at a 16month low. People are always calling for the end of the bond rally and now they are getting proven wrong aggressively in europe. The synthesis of everything we read his lagardes new economy. To me, the real economy has the upper hand this morning. Its not good. Hopefully, the world can benefit from this collapse in oil we are seeing. Hopefully that provides a some breathing room, provides more opportunity for Central Banks to youulate further because dont have to worry about hitting their efficient targets. Ou do think the accommodative stance of Central Banks is the belief that that is not going to change anytime soon has been helpful. In the u. S. , the economy is getting better. More people have jobs than they have had in years. There is real this. There is realness. We have Martin Lindstrom. In juxtaposition of gloom the market, the financial system, versus breaking down the doors in retail, does that surprise you, that you can have both . No. We see the Retail Sector desperately trying to find a way to persuade consumers to spending money. The margins are getting smaller and smaller. To juicy margins . What we did you say margins . What we see is spreading the product categories. The big winner at now is online. Youoe mentioned europe and mentioned the french yield. When you look at copenhagen, which produces beautiful women and great sound equipment, what is the mood in copenhagen when they see the Greater Europe experiment disintegrate . Economy is going up right now despite what everyone was predicting. The second thing we see right now is they couldnt care less about what is happening in the rest of the world except russia. There is no doubt about it that russia is beating europe a lot. You talk a lot about the effect on line and the whole idea of going on to the. Tores is there any hope for a retailer that will thrive . They have to wake up in the trend we see in japan is interesting. Retailers finally get it. Trends ine rt dubya japan. The first is you go into a brickandmortar store. You look around in Department Stores but you cannot buy a thing. You get a secret code. You go home and you buy the stuff. The second thing is that secondhand products now displayed on the shelf next to the fresh new products, people buy it just as much as the old products because you can really feel, while, i have to support the environment. I cant see that in america. To you think it will come to america . Yet, in a niche way. There is a Company Called pass the baton. There is a story attached to the product. So i go to the nike store on 57th street. You and me. We look at some of these old socks. [laughter] he ran in the new York City Marathon in the socks. More and more. Es you basically by an old chair and it has a story about the owner and the antique aspect. This is being done in japan . One of the biggest Flagship Stores in japan right now. It is fantastic because you buy a new and old at the same time. Only on bloomberg surveillance. Martin lindstrom and joe with me this morning. It is an and no tradition. Chief executive officer of macys will join us. Question of the day, we need to hear from you. Are you spending more this black friday . Good morning, everyone. Joe weisenthal with us. You came on a train last night. Quarks yet, latenight train. Very nice. I guess people do not travel much on thursday night. Was the tryptophan express. Yes. Very sedated. Markets really on the move. Stay tuned to bloomberg to see the market debris. Mr. Brooks in the new york ambition istalist an energizing gale force. David waxing philosophical on the good and bad of capitalism. There is good and bad and so much inequality at the same time. The entire story defines everything, from the fact that markets are at record highs all around the world and yet this morning we saw italian unemployment hit its highest level ever. This contradiction between those who are durham extremely well and those who are out of a job. Lindstrom, the polarity of capitalism seen through retail is luxury versus everything else. How is that skewed right now versus 10 or 30 years ago . Luxury segment has become extreme. People are paying outrageous prices for luxury items. They dont want to have the mainstream luxury anymore. Luxury hasnstream been cut down. So that is a polarizing trend. Not want toople do have mainstream luxury. Correct what is the major trend out of china . What is the major trend out of china . The is still falling. Sickan people have become and tired of locke street. The second trend is they invent their own Luxury Brands come up tent like they are western. You can go to shanghai or beijing and see 50 or 60 different brands you never heard before. They can pretend they are british from the 1800s or whatever. Looking forward to dive into china. Joe, what do you see in the markets right now . You cant not go back to the reverberations from oil. Every central bank in the world just got further away from their inflation target. What about highyield . Immediate,ave an like, next week effect in the highyield market. Ride. For the last few months, people have been talking about the divergence between equities and high yields. Frequently, they move together. But the high yields are so concentrated. There is a lot of energy. Threw twosenthal hours of surveillance. China, their black friday, the linkage between china and america. Good morning everyone, bloomberg surveillance. We welcome all of you here. Markets are really on the remove. On the move. Our top headlines. For the first time in four true years the price of oil has fallen below for 70 per barrel. Fell more than 7 after opec decided not to cut production which means normally to consumers in the u. S. And elsewhere but it is a bloat to oilproducing countries like russia and venezuela. Black friday started early again with some Stores Opening last night are in an estimated 140 million americans will hit the malls and the web this weekend and they are expected to spend more than last year. Yesterday was the secondbiggest a for online sales and target had its best day ever. U. S. Regulators have made it official, japans corporation must implement a recall of defective airbags. So far theyve only recalled the devices in states with high humidity which might cause the airbags to malfunction. Much, gold folks breaking down right now, 11. 82 down from the 1200 level. A barrel to add onto the target news and their ceo in the 10 00 hour, ibm edge mark looking at a 12. 2 positive pop yesterday. To china and then russia forget chen be ablemrs. To buy Martin Lindstrom is with biology and he suggests ali pay will revolutionize not china but america. Shanghai will be will to go online and buy a trenchcoat out of new york city, am i close . This is an ongoing trend because products have a mixed integration of brands. And china first you had the now it ist and affecting things fresh out of the u. S. What is holding up the trend . Containwant to everything inside china. That is the reason why right now they have gone through an enormous process where they are developing brands. They had no idea about how to deliver a brand and you cant even mentioned one. They are going to this process of this is the last that we will see. I will go back to what you said earlier about luxury brand fatigue. Its not just an economic thing people are actually getting tired of this brand . Couple weeks ago people had huge logos on their shirt and that had become smaller and smaller. Thereafter show that im showing bagi have a Louis Vuitton but now theyre disappearing and people are looking at smaller stitching and indirectly saying i know it has. I would normally be wearing a really big logo i got it across the street of bloomingdales. I got a get a tide. ,ne more question on china luxury automobiles where is the middle class . The middle class is saving more markets that it has done before in the second thing they are doing is to start to buy household goods. We have seen that decorating their homes they did not have money in the past so that means they are not buying expensive close and where they buy expensive blenders and dishwashers and all that stuff. Do Consumer Trends look like in russia beyond the obvious weakening. Its known which russians are large consumers first of all their cutting almost everything right now but what happens is this self filling prophecy that the Russian Consumers are hit so we are seeing everything going down three georges there give us an example. One example is if you going to Grocery Stores for the first you feel like you are back in the 1980s with nothing on the shelf. Which International Brands are specifically affected, are there particular Vulnerable Industries are companies . The dairy industry in particular. Playerrdlargest derry in the world are stocking a lot those are perishables what about gap bluejeans . The problem is the government and russia is talking so Much Negative about the International Brands that people feel they are not part of the tribe and they feel embarrassed. Script forp the 9. 610 yet the 49. 69 does Joe Weisenthal have a weak ruble Tipping Point for Vladimir Putin . Have you seen Good Research . It seems like half the pendency if they were you can imagine that as the ruble gets weaker he just kits keeps further entrenching himself into the path that he set up so this hope that the week economy will somehow bring russia back to the table what do you see martin . This will continue for three years because right now he is stubborn and europe cannot come up with a solution and their wedlock. Willwill continue and you see all the western companies will continue to escape out. We could go much more on this limit do a twitter question and it is on retail America China and russia, are you spending more this black friday and ,ccording to target ceo you are well talk to the target ceo at 10 00 a. M. This morning. This, this really caught my attention thanks to adverseenthal for this, impact on the taxi business, it is here, these dreaded the dalliance are going down in price, the average price of a new york city medallion the license needed to own a cab south 17 since the spring of last year and the galyon 872,000. Wiesenthal bought two over the weekend. Taxi owners have complained about motor uber and lift. Is not justy here new yorkers evidence in Chicago Boston and washington. There is a reason all these Taxi Companies have been protesting oversold luciferase late. It seems like have been vociferously. R so headline outthat at your old shop saying that uber is thrown out in nevada. The taxi industry will probably have victories here and there but uber has become so popular so fast that it is actually not