Ecb president. He suggests the eurozone economy is likely to remain stagnant and the central bank stands ready to act. T speaking of Central Banks, here at home, the fed is launching a review of how it oversees the major banks. The review comes after a series of critical reports. The fed is asking its Inspector General to help with the probe. Andrew. Weve got stocks to watch this morning. A lot of stuff moving. Gamestop earnings and revenue falling well short of estimates. The company blaming the late relief to be assassins creed unity game and slowing Video Game Software sales. Joseph kernens family always usually havent been big on that. But i read through the Analyst Report trying to figure out what happened. And there was worry that it was in digital, but its older software. Also, believe it or not, the west coast port situation is part of the forecast. The kernen family has no, no. Its strange that the west coast Court Situation would affect things. And they also use games. Also, resorts, now saying it is not aware of any investigation into Money Laundering. A wall street journal reported the casino operator is being probed by federal authorities for possible violation of laws. Let me make two notes on this. One is in their statements, they do acknowledge or at least seem to sort of highlight this idea that they might have been asked for documents by the government, but they say that that doesnt indicate that the government is necessarily telling them there is anything wrong going on. What . The other thing is, steve chu sued jim chenos for comments that he made out avenue berkeley. He was quick to sue chanos for even saying that. Maybe that tipped off regulators . I dont know. Thats what were talking about. Were not talking about Money Laundering in vegas . Theres the macau stuff and then theres this stuff. Thoold be like cass blaablan me. Wouldnt you say i assume a certain percentage was not declared money . I dont know. Im naive, but isnt there a lot of money that is in the i think there is. Right, that there is in this other economy. But if you did it systemically, snet of i dont know. We dont know. Theyve denied it so we should not cast aspersions until we know more about the case. Even if there is a case. Also, valean is cutting its stake in allergan to nearly 10 coming days after it beat its cost for the company. I think december 15th they have to get that money. Sothebyss ceo is stepping down. Its been about a year since activist investors including dan loeb began naming investor at the auction house. John tagg, the activist investor had been pushing towards a different county. But tagg had the backing of carl icahn. And autodesk switched to a cloudbased subscription model. And gap falls short of expected earnings. Banana republic may do well at any point, navy may do well, gap may do well, but they never seem to do well at the same time. Have you been to gap in a while . Im going to go to the mall today because every bone in my body hurts from running. My head hurt, my right heel hurts. I have to run today because im just so let me show you, this much stretch. Thanksgiving is coming. Christmas is coming. We just had halloween. Lets check on the markets this morning. I was kidding about as the sun comes up every central bank sort of eases and stuff. With draghi today, hes not a drag on the markets. Hes helping. And now Caruso Cabrera is here to tell us about china. It doesnt matter what our economies do, look what the dow does. Santa claus rally, up 116 after yesterday, that 80point weakness did not pan out. Up 117 today. That is well into new high territory. And Jeremy Siegel is getting closer and closer to that 18,000, right . I think weve had our 27th and our 44th highs for the year for the s p and for the dow. I remember you said 26 the other day. So it sounds like you just are like a genius of something. Month, no, i actually you remember 26 and 43. Anyway, well take that on a friday. Were hoping for santa claus to arrive at some point. Oil, once in a while with it goes up, that is bullish. China, all of a sudden, its 77 bucks. 1. 24. Okay. Thats good. Keep going. Keep going. 119 coming up. Gold, which is back below 1200, but up a little bit today. China cutting rates and the ecb president mario draghi says the central bank is ready to react in europe. Lets start with china. The other significant i think its significant thing out of china is the central bank is now going to allow banks to raise how much they charge, pay for deposits from 1. 2 times from 1. 1 times the rate, the deposit rate, to 1. 2 times. Okay. So its notice a huge move. But one of the things economists say the central bank absolutely needs to do is liberalize that set by banks. Its believed their set too low, you push people into investing in many other things that perhaps are questionable and leads to a lot of distortions in the economy. Havent we done the same thing here . Right, right, exactly. Lets move on to mario draghi who made a speech this morning in frankfurt. Thats whats pushing the euro lower. And lets play the sound bite youre going to its going to sound like youve heard it before. We continue to meet our responsibility. We will do what we must with Inflation Expectations. As fast as possible as our price stability mandate require us. Were going to do what we must to raise Inflation Expectations. He he then goes on to say if what theyre doing now doesnt work, theyll increase the size of what they buy, the pace at which they buy and the composition which is a hint. He said it explicitly last week, that they would be willing to buy government bonds if necessary, but once again, thats pushed the italian yield on the tenyear down to a record low. As you saw the euro moving lower, as well. And that is helping the stock markets across europe. Does he have the authored to do all this . Thats is same conversation we can have over and over again. He can say yeah, we bought bonds before. When they bought those bonds, they didnt allow the Balance Sheet to expand, which is by definition quantitative easing and that is what and remember, during the last two times that they did those things, the germans protested those moves and they werent nearly as big or significant as what is being compensated at this point. So we dont know. And the other thing, the European Central bank would say if on our current trajectory, our policy is not affecting, it hasnt been. This should have been done a long, long time ago. What hes talking about what hes going to do should have been done a long time ago. You see those market moves . 1. 75 . Pretty significant moves in the market. He signaled continuously about them doing what it takes, essentially, to try to move the inflation needle. Joe, this story is for you. Nigel felagess Independence Party in the uk picked up a second seat in the parliament. The euro skeptics are gaining seats everywhere. Yep. Why wouldnt they . Does it seem like this is working that well . Every couple of years, it seems like theres more trouble. How do you get 28 speed economies, they all have the same Interest Rates, they dont all have the same currencies. Right. And the uk uses the pound. Believe me, i know now. I wasnt going to mention it. There are 12 different currency nets eu and in the eurozone theyre all easier. But why some places would have adopted the euro is beyond me. Even though trading partners at some places are mostly in sterling or in dollars. Yet they somehow got hoodwinked into adopting the euro. Sometimes its political. And you end up with the same Interest Rates as germany, so you have this huge property move and the unelected technocrats tell you to accept the bailout. Mario monti tells the story about meeting with Margaret Thatcher and she says to him, tell me, mr. Monte, why are you fascinated with the euro . He says if we dont have the euro, our politicians arent going to do a, b, c, d and e. We need something to force them to do the right thing. And Margaret Thatcher says, oh, i understand. Now i understand why the people dont need the euro. They have me. Telling you a thousand miles away that you need to you know, look at what happened with greece. Those Interest Rates that greece had. How did that work out when you allow a country not is in the greatest the Balance Sheet knot the same as germany and theyre borrowing and regulations. Youve got all these different its like herding cats. Supporters of the Currency Union would say greece on its own would be it would be they would do nothing but rely on devaluing the he was a comedian, right . In italy. I think last week he said its just a matter of time. Were getting the hell out of here for italy. Is that possible . Oh, if David Cameron wins again, thats whats promised. Theyre going to vote on whether theyre going to be a member of the european union. Although they dont have to go to the euro, right . Lets see what happens with this china Interest Rate having a ripple affect across markets today. Especially in the commodity markets, if they are making moves and theyre signaling making moves to improve the economy. When they were talking about it in the 90s and doing it, a euro skeptic. And then i always thought it was how is this going to work . So i dont know. I shouldnt be cnbc has no opinion on being a euro skeptic. This is just me talking. Do you feel like you might we have no, no, we have operations. We have cnbc europe and everything. Im not speaking for the firm. I always assume youre speaking for yourself. The stage where the durability of the euro is still very much on the table. Right. Not for the last two years. Did you read what nigel frost says . He doesnt pull in it any punches. It could be greece again. Marine lepenn, she said the first thing shes going to do, shes going to go back to the franc. That stupid symbol, too, and that ugly thing in frankfurt. That stars were missing for it. We used to talk about how its an allegory for the euro itself. Yet its still hanging in at 1. 24 this morning. You know what . A lot of what i just said was sort of just so Everybody Knows with sarcasm in europe, its not well understood at times. Im just making a point. I didnt understand it. All right. Because ive got to go really slow. With me, you have to go slow. Sometimes i dont. And then anyway. And then you look befuddled to me. The other big story this morning, president obama announcing hiS Immigration plan and the gop is not happy about it. I dont know you know what . I dont have strong feelings. I dont know what is right here. Normally i know exactly how i feel about things. No, michelle and i were talking about this. In europe im surprised. I thought you would have had a very strong view. I actually theres a right wing nut where are you . I would have open borders. As long as you can prove who you are and you can come into the country. If you believe in you believe in the Free Movement of labor, capital and goods, capital and goods, weve got that down. Nobody seems to differ. Labor, everybody goes bananas. And if you go back far enough, you know, there wouldnt be a whole lot of people here. Theres the tactical argument, theres the political argument. Its not an argument. 800 years, it was all true. There would be no quotas of anything. I dont know where i come out. I have valley. If you want to let everyone in, immediately levy a wealth tax and give everyone obamacare. People were 30 billion whose swiss names begin with w. Because they focus so much on just the ages, the high tech users, and i tell should be for every strata of i agree with you. With max a degree needed. And we need uneducated workers, we need educated workers. This is what makes republicans sound very cruel is it helps bring down labor costs, right . And thats a very helpful thing if you want to start a business thats based on services, etcetera. And the job creator, right . Because you build the restaurant, you hire the distributor, you sell the food. Lets bring in john harwood and he can explain it. Is it you look at the opposition, john. Is it visceral . Is it its not monolithic across the gop. Is it . Its not. Jeb bush. Where is it primarily and what how do you explain it . And this is what now i can actually sort of feel like were we can talk reasonably together on this. Joe, before i do that, i do want to clarify one thing that from the intro to this topic earlier in the show. This is not giving legal status to everybody who has been here for five years. This is people who have been here for five years who have a child who is a citizen or a greencard holder, okay . So its a much Smaller Group than everybody who has been here five years. There are two basic actions in what obama did. One is extending the right to apply for that legal status, which gives you a work permit if you are a parent of a kid who is a citizen or a greencard holder. Thats about 4 Million People out of the 11 million who are now here undocumented. And then 270,000 were is the expansion of the dream program, the program which removed age restrictions on people who came here as children. So i just wanted to make that clarification. In terms of the spread of the Republican Opposition, you know, a lot of this, there is substantive opposition from people who dont like the idea of amnesty and as a principal, as a criminal justice principal. And theres also a lot of anger over the idea that the president is acting on his own. And those who things are driving the republican reaction. Its not monolithic, as you said. Jeb bush put out a statement saying republicans now have to demonstrate that theyre the party that can tackle this challenge. But there hasnt been much sign, in the house, at least, that theyre willing to do this. But i want to play this thought from the president which takes this debate and puts it sort of in a nutshell, given the criticism and the pushback from the white house. Here is the president last night. The actions im taking are not only lawful, theyre the kinds of actions taken by every single republican president and every single democratic president for the past half century. And though those members of congress who question my authority to make our immigration system work better or the question of me acting where congress has failed, i have one answer. Pass a bill. So hes framing it as a direct challenge to a congress that has not been able to get this through. Thats not going to calm down the Republican Opposition and the question now is whether Republican Leaders can manage the anger of a lot of their base that think the president is out of control and try to figure out how to channel that into political victories, either doing something on immigration or finding some way to advance their agenda otherwise. I did ive seen it parsed so many ways. I saw what president reagan and the first president bush did. Both of them sort of adjusted legislation to include a couple more people that they sort of forgot. Remember . Well, yes, more than a couple, but yeah, they did. I know, but there was legislation it wasnt just lick its own 5 million person edict. It was like something that had already helped two or three Million People stay and then it added their kids or their spouses or Something Like that. It was sort of like an oversight to use executive action. It didnt break as much ground. I see what both sides are saying. Pelosi, someone said something and she said youre a history row, ronald reagan. And its the most disparaging condescending way of saying, you remember that idiot you like . He didnt theres so much nastiness and acrimony on both sides. It is definitely a bad situation in washington and i think were in for a rough ride over the rest of the year and early next year. And as i said john, when you say rough ride, what does that mean . Well, i think a smooth ride would be keep the government open and not do very much. I think the question is going to be now is there a shutdown . Is there brinksmanship, are there games played with the debt limit . Is there some sort of by some small group an impeachment drive that Republican Leaders will have to swell muquelch . And when you look at where we were at in the lame duck, you would have hoped that all congress would do was fund the government, get out of town, have the holidays and start afresh in january. That prospect got more difficult. I am on a little bit of a mission to get to brinkmanship. I dont think theres two ss in no web looked it up. You can do either because people have mistakenly said because if you take someone to the brink, youre fought taking them to the brinks. Yeah. You probably say nuclear. No, i know its nuclear. I might say ebunclear. They go up to a different brink. If you look at washington, theres been more than one brink. Becky, thats very good. I like that. No, youre doing more brinks. Brinkmanship. You look up the definition. Joe, i do want to thats the alternative. Where would i say nuclear . Thats a slam against w. Are you still trying to not just you and all your friends blaming everything on him . No, no, there are a lot of people who say nuclear. But ill tell you one person who doesnt say it is jeb bush. Look at jeb bushs response last night. That was a model. He criticized the president , said it was ill advised, that it was political, said its divisive, but he sketched a constructive path. Thats why hes a grownup in this. Is it divisive or devicive . I like that. Is it a primarier or a primer . That sounds british. This is good, joe. I like the supplements youre showing here. I think its a primer, by the way. Im uncomfortable when you say you like it when its supple. Not that theres anything wrong with that, but, john, i am supple. Watch, i can do a lot of oh, not really. Im not supple, in fact. I cant get anywhere near my toes. Brinksmanship . Its brinkmanship. Go with me on this. With an s. No, you sound like were going to have brink he ismanship with the producers in