tv Bloomberg Surveillance BLOOMBERG October 31, 2014 6:00am-8:01am EDT
europe and japan fight deflation. and working to get out the democratic faithful, republicans attempt to run up the score. and america, well, they do not care as long as ebola is not in my back yard. good morning, everyone. this is "bloomberg surveillance." we are live from our world headquarters in new york. it is friday, october 31. i am tom keene. joining me, scarlet "red riding greeley isnd brendan here as well. what a day. >> absolutely. let's start with japan. in a surprise move, the central bank announced more stimulus measures. the bank of japan boosted its asset buying for the first time in a year and a half. stocks climbed in asia and are up in europe. meanwhile, the yen fell almost 2% against the dollar. it is now its lowest level in almost seven years, passed $1.11. japan cannlikely that
meet the inflation target of 2% and one of the reasons -- the national sales tax increase that has slow down consumer spending. a sign of progress on one front between russia and ukraine. russia has agreed to resume natural gas exports to ukraine just as temperatures turned colder. russia had said ukraine was billions behind in payments. agreed to ahas partial payment of more than $3 billion by the end of the year. meanwhile, rebels have stepped up their attacks on ukrainian forces despite a truce brokered last month. >> new problems for citigroup. citi is facing a criminal investigation into its foreign-exchange business and a six hundred million dollar charge for legal expenses. it says it is cooperating with criminal and antitrust investigations in the u.s. and in the u.k. and switzerland. more management changes at twitter, which has seen a few
this year. twitter has named kevin wild of the head of product. he has been in charge of revenue product. he is the fifth product chief in five years. twitter has replaced its cfo and ousted its chief operating officer. ceo dick costolo talks to "bloomberg west" about it. >> managements grow and change over time and that is always the case. i love the team we have in place. we have developed all sorts of tremendous news across the country. -- across the company. thewitter use slowed in fourth quarter. >> and basketball, the new york knicks spoiled lebron james' homecoming. he played his first game since returning to his hometown cleveland cavaliers. he made eight turnovers, and the knicks be the cavs 95-90. emotionalit an
evening. >> i just try to focus and maintain, focus as much as i can. i am glad it was great, but i am also glad it was over. >> you call him mr. james, not king james. >> i think he gets four electoral votes in ohio in 2016 as well as it is great to see excitement return. has 300 ballsks this year, 400 balls. on >> carmelo anthony comes out ahead on >> summary lecture me that mr. anthony is the real superstar. i was like ok. >> i do not know that much about basketball. >> you have got to stop turning to me for sports about which i know nothing. sports"surveillance" report will be with you on monday. i will look at to data screens this morning that this is history in the making,
futures up 23. they have advanced. europe has not done much, euro has not done much. it is weaker, but nothing like the yen. we are on an $80 watch on american west texas intermediate. the vicks a lovely 14.52. what is where we are, hundred 50 points from a record eye on it, the dow. much weaker japanese yen and gold takes the cake showing deflation worries down $26, $ 1172 an ounce. ok, screen one, the money screen for pros, long-term stronger trying to dois this, trying to get a weaker yen with his action overnight, he breaks through the three points back 15 years.
>> that is years in the making of the yen. >> with all of the skill i can muster with no sleep, i'm going to try to do this right now. this has never been done before, folks, on television before, this is the first time, help me here, scarlet, with the pronunciation, the yen yuan. >> yen yuan is how i would say it. >> here is china doing better, and this is the massive japan-induced strength. remember, scarlet, this directly taiwan, singapore -- >> absolutely, especially when you consider how much japan is helping. >> is this a mercantile war? >> i do not want to get anyone in trouble, that yes, this will be a great concern. >> we keep talking about currency wars when in fact what is going on is nobody is willing
to do any of the other things that we -- >> political institutional things that >> central bankers as they make decisions are the only people in any continent that can do anything that >> the only adults in the room. says he you at ubs looks for a currency crisis in japan. it was a historic japan, capitulates further in a decades long fight against deflation, and the ramification. they are profound worldwide interview as well as. asia willall of adjust. we are thrilled to bring you this morning john herman. he works for a japanese bank and is expert in the granularity of the u.s. economy and the view from 70,000 feet above tokyo. jerry linger with us to provide great perspective on the elections coming up tuesday in the united states. john, fortunate to have you here. so nice.
inlain for us the difference the punch bowl in washington versus the punch bowl this morning in tokyo. >> i was just over it tokyo visiting my equity and fixed income accounts two weeks ago when we had the big melt off. >> what is the level of desperation in tokyo? >> where i thought was amazing as the equity accounts were very calm, and he fixed income accounts that i saw, who normally are long fits income products, i thought they were then very happy, but the fixed income account was very nervous, and the equity accounts looked very confident,'s and i can see why he we are about 10 days later it all makes sense because they said there were going to increase their equity positions in the investment, and the national investment fund, and then they're going to cut the bond holds. >> the german yield grinding every lower, the japan 10 year yield is where we were in 2003 when japan completely screwed
up. what does that signal to our viewers? >> you have long-term the eurozone and germany, they look almost identical. we think each of these will have to start sovereign debt, qe sometime next year, we thing more in the first half. that means for us german bond yields grind down to 50 basis points, and they sort of equate with japanese yields. i think that should be the single for the rest of the world that we are in a very sort of a low rates more moderate growth, low rate environment for extended period. >> we're looking at exchange rates like this, this is all a monetary problem, but what about the other two arrows of abenomics? structural reform and stimulus. >> it is very hard to enact the structural reforms first hand second thing is just the actual
implementation of getting traction on it is a long way in coming. just look at the euro zone economy as well. in america, we have our own problem, by the way. 90 million people outside the labor force, and over the next a hundred, that is 50 million people outside the labor force. theears and older out of labor force. we are not the only ones that europe, same deal, even worse. >> i want to stay on the overseas market. now that kuroda has done this, does it raise the bar for mario draghi? is anone says this explicit currency war going on, but obviously it is a tacit currency war going on. it suggests that if you are the first central bank like janet yellen, if you are the first central bank to start hiking rates, you are going to get a hammy. wher >> we will continue with mr.
herrmann here on japan in a moment. there is an election on tuesday. we have great and even and confident perspective on this strange thing called polling as we go into this tuesday. what is your confidence and midterm polls state-by-state, governor by governor, senator by senator? it is different than a presidential race. >> absolutely. you have to take each one with a grain of salt and look carefully under the hood. right now, things overall are looking strong for the republican party. the request and i have is whether or not it turns into a wave. when you look at the staples, level, isat the seedy this simply going to be a generalized to strong election but caught in the trenches state-by-state, district by district? >> senator from kentucky feels regret, he says run up the score. as you go into the weekend, can republicans run up the score?
>> it is not out of the question. this is another election of the public's discontents, the ramifications across the globe in the united states, the economic discontent in this country is profound and is continuing and is impacting our politics again and again. look at the last several elections. we elect a president and then deliver a karate chop to his political party. then we do it again, and we are bound to do it again. and reason as we are discontented with the way things are going economically and through that is political the satisfaction. >> tom, just to echo gary's thoughts come i put up a chart that ran twice this week and i looked at the real income recovery in wages and salary and i looked at it, benchmarked it versus every economic cycle since 1950, and this is by far -- we are 78 months, by far the weakest since the 1930's first thing, and secondly, we are rarely above break even point. rates thet hiking the
way some people are thinking about next year, you risk rolling that over -- >> and this is a follow on of all we are talking about this morning. >> all of the issues we are talking about are completely irrelevant. this is a general frustration with stagnation that has been going on for 25 years in median incomes. it is not anything that any president or congress can do. it is a double punch, and it is about that economic discontent but also about political discontent as well. rudderless ande washington, that these guys cannot get it together and get anything done. the central bankers, the only grown-ups in the room, that is part of public sentiment. >> does he know we have commercials? [laughter] >> tom, listen to this window if you look right now at the share of employment that people 50 years and older have versus people young age people from age 16 -- >> never been wider. 50 and older outnumber
the people employed as a share of total implement versus young people from 16 to 35. it is on believable. and herrmann with us, history and japan today. coming up, we will continue our conversation. in our next hour, julian robertson joins us with tiger management. what a perfect day to speak to mr. robertson. we have a twitter question as well. >> here we go -- what scares you the most in the markets right now? tweet us @bsurveillance. this is "bloomberg surveillance." >> brendan is going as elsa. >> i am going as the snowman. >> that is no treat, that is just tricking people. >> we still have singing after halloween? ♪
>> good morning, everyone. pretri ofhomas petrie partners, looking for that scum of the 10:00 a.m. hour on "market makers" this morning to get you ready for your halloween, your hydrocarbon weekend. this was so stunning out of japan. >> absolutely. kuroda threw everyone for a loop by adding to stimulus. and of course after that another big announcement, which kind of gets buried here, japanese pension funds that it would put half of its holdings in local -- stocks. start john herrmann with us from securities. j
>> this looks like a very coordinated action because it is a one-two punch, the bank of japan says i will be buying more debts, and then the pension funds as we will be investing more, selling the debt to you and investing more in the equity universe, so it is a good thing. >> what kind of questions do you anticipate, what you speak to today when you get off the "surveillance" set and answer questions about the economy? >> i think this policy announcement, i'm not going to say a little bit discussed behind the scene in japan, but it looks like it very much was because when i spoke to the largest equity accounts 10 days ago in japan, they looked very confident and very calm during what was a very volatile time in the equity markets globally. now i can see why. looked verys nervous and now i can see why because they are being pushed out in the universe to be biting other product. >> we saw that with the
nikkei to 25. >> i will review an announcement from last week -- the risk of the inflation targets come into sight, disorderly rush to the bond market, exits will ensue that the result is yields will have far-reaching consequences. japan's angst, major holders, and bonds will face a major loss. you'll not get something for nothing. are you worried about that? >> the banks in japan are insanely well-capitalized -- >> you have to talk about the future challenges of mitsubishi ufj? powerful. ry >> a quick question here for gary. you are here to talk to us about how voters anticipate the election next tuesday. we have artie seen futures up right now. voter sentiment particularly. >> a lot less than you might -- >> a lot less than they used to.
>> why is that? >> most people who are invested in the stock market are there passively. they will check it when they retire, and they are not trading on the market, therefore they are a sphere thing life, if you will come outside the market, and what they are seeing instead is a still sluggish labor market with more dropouts than job growth and flat wages come in a flat wages are critical. americans feel as if they are doing less well because for about seven and 10 over the last generation, it is true, real income is not flat but declined lack arican ts who college education. it impacts their attitudes about how the country is going about how the politics are going, and the answer is not well. the late great marti said don't fight the fed. should we not fight the bank of japan? thing.ink this is a good we need to see it make some
traction is in terms of the real economy. we saw what we'll do sales have done. we need to appreciate the currencies. up 23, dow futures up 200 points right now. tuesday, they're getting ready, "with all due respect cong," an election special with complete and different coverage for you starting at 5:00 p.m. on tuesday. from new york city this morning, this halloween, it is "bloomberg surveillance." ♪
they create massive further stimulus this morning. all of that of course wrapped into the european and u.s. economies. it is part of my morning must-read this morning, this is the late great president of citigroup who writes a scathing op-ed in the "financial times," rescueioning four measures, the instinctive anti-keynesianism of the teutonic french a masculine's countercyclical fiscal policy. domestic political parallels lysis inhibit structural reform. john maynard scans, yes he was a row person, -- >> you should put kuroda's face on it. >> you are enthralled by some dead economists. >> stimulate this. they the way, amen about
bonus bank and the teutonic french. -- fringe. they are obsessed with meeting, balancing their budgets. >> they are savers by nature. public and private. >> is janet yellen boxed in? than shek more realizes, and i think more than the market actually realizes because the key thing is we have a flattening in the u.s., what we have is financial oppression abroad and at home, we have low demographic -- >> is janet yellen going as elsa or anna? >> we have researched this morning from goldman sachs. i want to ask you about inflation japan now, however, in the risk assessment of the outlook reports, the price
outlook are to the downside, attaining 2% price ability target still looks very challenging. >> in the u.s. we will not even see a to handle in terms of inflation, 2016 at the earliest. >> gary langer, this goes right to the angst of the american people. >> nobody is coming home and saying hey, gdp is up, let's party. [laughter] >> that is the quote of the day. >> we are going to come back with the humorous gary langer here on the polls as well. >> out twitter question of the day the following -- what scares you the most in the markets right now. tweet us @bsurveillance. ♪
>> good morning, everyone. "bloomberg surveillance" in the store. surveillance markets really moved in japan. we've also got other top headlines. here's scarlet fu. >> but we need to start with the main one, japan -- actually, let's start with sony. narrower than expected second quarter loss for sony. demand for is playstation game four consul limited the impact at the writedown at the smartphone business. sales surged 83% thanks to demand for the p.s.4. profit rose at anheuser-busch. third quarter results were hurt by weakness in russia and china. the makers like bud light is the latest brewer to miss estimates.
and an exciting game seven allows a 2014 world series to escape an unwanted distinction. least watched world series of all time. 23.5 million people watched as the san francisco giants held off them. it is the least watched in history. i should add one viewer that didn't get counted is my husband who was watch its overseas through slingbox. >> on we go. we have breaking news right now, folks, on russia. this after the actions by the bank of japan in what we've seen through october from other central banks. putin and russia reacting and raised their rate that's central bank. in europe, in japan, in the u.s., russia not at the zero bound.
that's not even merge market quality. that's frontier economy crawling. this is what the bloomberg does for the pros. you look at dollar ruble. here's the anticipation. >> that was yesterday. >> this is a normal reaction that you see, but again, the pros reactsed to this but you wonder what it means to the ussian people. >> you can't fix the fundamentals with the policy. >> this is the defense of the currency and it was real ramifications on the russian people. >> i'm going to break some news right now. we have a coordinated stimulus for japan, not just the central bank but also tom is here with his sony camera. and not only is he here with the
sony camera which he gave forward guy dance on, by the way. he's been talking about its for two weeks. his screen saver is a picture of the camera on his iphone. >> oh, god. don't go there. we're on air right now. not now, tom. [laughter] >> ok. we're going to move back to the u.s. four days until the midterm election and 68% of the voters say they are closely follow the racism that's still high to me because they feel the outcome would make a difference. 56% don't like the president. 67% don't like the democrats in congress. >> 105% don't like "surveillance." this is crazy! it's crazy! [laughter] >> gary langer, you've been running polls for a quarter of the century. you're the head of the "abc news" polling. it seems like the get nothing done strategy that the republicans have been pursuing
since january of 2009 has been really effective. voters hate everybody. >> exactly. what the republicans have most going for them is that they are not the democrats. and that's about it. but look what the pattern we've been in lately. we elected a republican president in 2004. and then in 2006, we like the democratic congress. and we go for a democratic president and congress -- we keep going back and forth and the reason is dissatisfaction with the way things are going in this country. people don't come home and say g.d.p. is up. the job market is allegedly better. it's going to be a great day for the markets. people come home and say how are we doing? can i get a job? can my uncle, my nephews getting in the garage because he got laid off? what about the houses getting closed because of foreclosure. and that reduces this dissatisfaction with the political status quo. and that's where we're at.
>> i want to jump in. this is really important. people don't think like economists. all these economic models, one of the reasons they failed in 2009-2010 was because they assumed that people sort of have access to liquidity and think about the future. people think about cash flow. >> absolutely. and i think what i found amazing, i was up a couple of weekends ago visiting my alma mater cornell -- >> you and me both? >> yeah. rolling along in the southern tier with my mother-in-law in the back seat and my wife in the front and we were traveling along and i was just amazed at how little activity i was seeing street-wise on all the little towns along the southern tier. and boarded up stores and so on. there's just a lack of enthusiasm. >> within this conversation, we are having an esoteric discussion on the macroeconomics of japan and fancy bow tied
economics and none of it matters when the nation is struggling like this. >> because people don't think this way. i want to pull up a chart of dissatisfaction with the congress. the inflection part is 1998. through everything we've been doing since then, every election cycle is spitting in the wind. we talk about issues, people are dissatisfied. is there any one point, gary, that can focus, this dissatisfaction? >> well, here's one point. while we've had this economic discontent, it has turned to sharper political disconsent and there are a few reasons. we can look back to the shutdown of the federal government and we can look in the botched rollout of obama care. they didn't create the perception that the government was incompetent but it reinforced it in a really powerful way and that's where we're at today. looking for solutions and not seeing any opportunity for
political leadership by either party to lead us out of the wilderness. >> there's also an issue of are we getting increasingly polarized as a nation? into who are republicans only vote republicans and we're thinning out the middle ground people's willingness to be open-minded? >> actually, no. what we've seen is the departure, a pull-back from both party where is we have fewer democrats, more people in this country identify themselves as independents because they're rejecting both parties. and that's been predominant longer than we've ever seen before. these people are less anchored by partisan predisposition and that's why we're swinging back and forth. >> when you have -- is that incumbent? >> i wouldn't say it's apathy. it's a crisis of confidence in ownership political system. it's different than apathy. but in some ways, it has the same effects because it means
people start to tune it out. >> because it means you're not registered, right? >> oh, i'm registered. my political affiliation is disgusted. >> gary, in a month, we're going to have this time honored american tradition of going home to our thanksgiving dinner table and arguing with our relatives about politics. does your polling tell you what is going to be the thing we're arguing about? what gives shape to this general dissatisfaction? >> well, again, the biggest issue facing the country if you ask americans, they will tell you still is the economy. it's not as overpoweringly the economy as it was in 2008 and 2010, but it is still far and away, the concern and issue and will continue to be talking about not how we're progressing forward but why we've got this political gridlock which prevents us from doing so. it's not just the economy. there's a lot to worry about in the world from scary diseases to scary terrorists. and for all of this as well as
the economy, we need and want political leadership and we're not seeing it. >> it's not about who has better policies. it's about who can give better shape to frustration. >> exactly. and i think i would just say that the democrats have had some opportunities. they're afraid of nationalizing midterm elections but they could have in this case on the issue of economics, fairness, an issue which the democratic party have the answer. >> amen. >> as we go to tuesday, again, with all due respect with their c-plex coverage, tuesday night, breaking headlines this morning. the set of headlines from ussia. >> rubles decline is at a low. >> g.d.p. close to zero for the next six months. >> all right. our twitter question of the day -- what scares you the most in the markets right now? is it what's happening in russia if what's happening in the
people think about the government response on ebola. it is from the latest "abc news" and "washington journal" poll conducted by our guest host, gary langer. most americans still feel their local hospitals are not prepared to deal with this. 61% of those suede say it is inadequate. 29% say it's sufficient. as for restricting entry to people who have traveled through affected countries, 70% say that is the appropriate policy response. a quarter oppose it. and we've seen all the highlights of the nurse in maine who has gone rogue, right? >> this also shows that the importance of communications in disease control. one of the things that nigeria got right is it has a robust internet infrastructure and it talked to people over the internet about what they should expect and what they're doing. we're seeing analogous here in
the u.s. gary, you want to jump in? >> the best predictor in our zeta is not being panicked and ot being concerned about it is knowledge of how it's transmitted. so education is critical. >> we saw this with h.i.v. 20 years ago. how short can question compress that time that it takes to let people know this is exactly how the disease works? >> ebola first showed up in africa in march so we had all of six, seven months -- >> no. december. >> earlier this year, ok. were yeah. >> we had 10 months to get prepared for it. and how much education was actually done in the united states over how you contract it and how you don't contract it? >> right. but it can happen fast. a lot of the hysteria we've been seeing is frankly, the media's hysteria. but the good outcome is it gets information out and that's
absolutely essential in this story. >> all right. well, the nurse biking through is trying to make her point in a different way, right? she was forced to be quarantined and refused to do so she is now out in the open making sure everyone knows that you can contract ebola just because she's out riding her bike. >> it's unfortunate this is happening during an election season. that brings up the silly in every governor. >> it does. tonight at 5:00 p.m. -- let's look at our top headlines. >> we're staying in africa. citizens were angered by the president's bid to extend his 27-year rule over the west african country. he laid a bill to extend his trip on thursday in the face of violent protest and the burning of his family's homes. his apartment building was also set on fire. >> this is upper revolting. >> from who's childhood?
>> fazzo. ine. >> all right. moving on. an explosion at the stafford fireworks factory from england. it took 50 firefighters three hours. >> and this is taken from an iphone camera, this video. a bystander was standing and whipped out his iphone and was filming the whole thing. one person is missing and four are injured. they still don't know the cause of the explosion. still unclear. >> it's almost a punch line and joke, a fire at the fireworks factory. >> number one photo. >> this was -- this is the greely family heading out to a halloween party. >> this is last night. >> yeah. i'm in the middle of the cowboy hat, by the way. this is froze, free.
he ratio was 0-zero. -- 0-0. the real decides subsidying factor was not their desire but our desire to not spend any money on costumes. >> speaking of costumes here, our halloween costumes today on the set of "surveillance." happy halloween, tom! > macro economics is a joke! >> oh, no comments. >> we're going in as anna. >> gary what, are you dressing up as? >> i'm a pirate every year. simple to do. an eye patch. >> i'm a cowboy every year. >> are you going in as janet yellen? [laughter] >> no way. >> who's the political character that everyone wants to be this year on halloween?
>> governor of maine. >> lepage. ok. >> after the uproar yesterday -- >> sit down and shut up! >> doesn't seem really presidential, does it? >> i'm asking. does it resonate with the troops? >> i don't know. christie has so many problems at the moment not only outside but even in his own state. he would be a great candidate in a general election but getting through the republican primaries is very tough. >> that video yesterday was something. look at you two. you like idiots. [laughter] >> actually, it's very important that i take off my glasses as i make an important point. >> this is what's happening. this is pay attention. i really think it channels -- christie channels the republicans in such a good way. i would think it helps him get through the primaries. >> the elections are not just about issues but who shows up. and think about who shows up for
republican primaries, particularly in the southern state which is have a lot of very conservative republican primary voters. the party base, the party loyals are not built in chris christie ans. mid alternate elections are different animals. that's why we're seeing a different outcome. >> i'm going to take us out as tom keene. [laughter] momentous day. bank of japan haven't seen this since 1972. milton friedman. anna, elsa, carlisle hotel. [laughter] john maine in regard said this 45 years ago. deveaux ! [laughter] >> all right. we'll be right back on "bloomberg surveillance." ♪
the russian central bank. they raised rates. julian roberton in our next our. >> basic anger with education and iraq and syria. 90% of americans don't know there's an enrollment period is coming up. peter joins us from baltimore. welcome, peter. >> thanks for having me. >> what is it that your challenge is to make sure the people know that the affordable care act still exists and they have another chance this year to sign up? >> well, i think a lot of it has to do with education of the public and there's been a real lack of that going on from the administration and the state governments partly because the fear of re-creating what
happened last year. it looks like it will be a much better year on both the federal exchange and the different state exchanges. >> the state exchange collapsed and they had to adopt connecticut's software, right? do you feel like the states are ready this year? >> i think the federal exchange in which it operates in about 30 states or so is going to be working much better. it worked much better at last year's enrollment period. most of the exchanges worked pretty well. maryland's did not work well at all. it was one of the four significant problem states. we're going to connecticut. it looks like from the testing that's been done, it will work much better. the question is people's cynicism of what happened last year going to be able to overcome and is there going to education about the renewed enenrollment period? >> what are consumers still struggling to understand when it comes to the affordable care act and their options? >> it's a rude goldbergesque
machination on the affordable are act. so people just don't know what's going on and there has to be a much better selling job by both the administration and by state governments to do that. it can happen in a quick period of time but time is running out because november 15 is the next date at which enrollment begins and about 89% of uninsured people in the united states of america don't know there's a new open enrollment period starting. are you it just so happens we have a pollster right in the studio with us. gary langer, is the democratic party embarrassed to roll that out? >> yeah. the most impactful piece of social legislation, certainly in the last generation was popular with the majority of americans for about 15 minutes in june of
2011. it's really never resonated. but don't forget. it's 80% of americans aren't paying any attention because they don't need to if you've been getting your insurance through your employer, you're all set. you may be unhappy about its impacts but directly, you don't need to go to these websites and why on earth would you? >> just come accumulates things. >> it is true. people who lack insurance need guidance and help and education and information about how to work this system. and that is not as forthcoming as it should be. >> peter, thank you for joining us. he runs a nonprofit health insurance at evergreen in maryland. >> this remains a challenge for the obama administration. i mean, they put together this legislation. it was supposed to be this signature work of the administration and now they have to pretend it doesn't really exist and shuffle it. >> we were looking for about
>> the bank of japan stuns markets. is japan, is europe, fight deflation. the president works to get off its democratic face or republicans attempt to run up the score. and in this hour, julian robertson on this great american bull market. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> this is "surveillance." it's friday october, 31. i'm tom keene. let's get to our top headlines. stunning news from japan. >> that's right. overnight, japan rocking the markets. japan central bank unexpectedly moved to increase the money. the bank of japan boosted its assets. the impact was felt immediately. stocks are up in europe and u.s. equity index futures are higher. the yen fell two% against the dollar. -- 2% against the dollar. the b.o.j. insisted the stimulus
would be adequate but it's been clear that japan is unlikely to meet the inflation target of 2%. it's a deal that comes just in time for ukraine. russia agrees to turn the gas back on. ukraine has reached an agreement for the exports. 245 ukraine has now agreed to a partial payment of more than $3 billion by the end of the year. rebels have stepped up their attacks on ukrainian forces despite a truce brokered last month. >> federal prosecutors are now taking another look at citi's face agregation into its foreign exchange business. and the bank is taking a $600 million charge for legal expenses. citi is cooperating by the justice debt. it's also facing probes by regulators in the u.k. and in
switzerland. more management changes at twitter which has seen a couple of them already this year. twitter has named kevin wild the head of product while he's been in charge of revenue product. he's twitter's fifth product chief in five years. twitter said this week that user growth slowed down in the third quarter. >> very good. in basketball, someone forgot to tell the new york knicks that the night belongs to lebron james. mr. james played his first game since returning to his hometown. cleveland cavaliers, he scored 17 points and he made eight turnovers and the knicks beat the cavs. lebron called it an emotional evening. >> i just try to stay focused. to focus as much as i could and obviously, it's a special night for me and myself. and i'm glad it was great. but i'm also glad it's over. >> you think he got nervous?
do you think he was nervous? >> no. it's lebron. >> come on. it's been so much anticipation. so much build-up. >> i have to say i was completely suckered in by his essay in "sports illustrated." >> you bought it hook line and sinker? >> it's so gorgeously written and of course he didn't write it but i read it. >> we all grow up and when we do, it's time to go home. >> a day to check. dow futures up 180. and the currency markets are something on the spit board which is more interesting. for those of you on radio to explain the bloomberg terminal this morning is something. gold plunges under 1200. $24. it's been three horrific days for deflationary gold. 1.75, the ounce. the yen is absolutely stunning. japan, they act this morning's
truly historic action by the bank of japan. nderscores the dependencies. tension between china, japan and korea. julian robertson is a tiger manager and he is the chief investment officer at tiger pacific capital. we didn't know that the bank of japan was going to cooperate and give us some news. it's never a dull moment, is it? >> never a dull moment and this s quite a thrilling one. can japan extricate itself from those many decades of malaise? >> they're certainly trying hard. they're doing everything they can. i think maybe they can. >> i mean, as an optimist, you were in this daily. how do you adapt to what mr. kuroda did this morning? >> we are very much a stock picker and we are just focused on individual companies and how they can benefit from all of
these and as long as we do a good job and pick companies that can benefit, i think we can still -- we still perform. taiwan, korea and japan, the knock on effect is massive. >> yeah. the japan government pension fund said it would put half of its holdings in local and foreign stocks all as a way to seek higher returns. >> what does it -- it's game changing, isn't it? >> yeah. for the economy, definitely. and as julian said, they're definitely very determined to give a fighting chance for japan to get out of inflation. >> julian, from where you sit, have we achieved escape velocity out of this crisis? >> well, i think japan is certainly doing everything they can and they're making progress. >> julian, you can't fix
fundamentals with monetary policy. and one of japan's biggest fundamental problems is its demographics. do you see them fixing that in some way? what has to happen there? >> well, it's not just japan. i mean, the whole monetary authorities all over the world are each trying to cheapen their own currency. it's a race to cheapen currencies everywhere. and i'm not sure that's the best thing to do in the long run. >> you nodded when i said demographics in japan. is that fixable long-term problem? >> it remains to be seen to be frank. right now, time is on japan's side and they're doing all they can to monitor. do they need to do more to improve their long term chance? and the time frame, i worry. one concern is equity markets may have a shorter time frame.
whereas in reality, it may still take quite a while. >> and jeffrey, you on bloomberg radio with that comment of a currency crisis. he mentions no word about it. we're there. do you see japan weaken through 15 years on the offense? >> do you degree? do you see the dollar continue to rise against the yen? >> i don't think it's a currency crisis. i think it's a deliberate effort of the japanese to cheapen their currency. and, look, the government all over the world are trying to cheapen their currency and cheapen bonds. i mean, we have a bubble now developing because we have forced bonds to almost no yield. and it's really, i think, the thing that is the most dangerous going on in the -- >> can the hedge fund world the
entrepreneurs looking for alpha, can they play in a bubble economy? >> we can play in a bubble economy. i think it would be easier for us to play in it than the average american who is really going to find -- to try to find good companies to live with them. >> run ye you looked company by company to make decisions. if this is a conscious attempt to drop in the currency, are you confident that that's going to have an effect on any of japan's exporters? >> exporter's not something that we focus a lot on. well, definitely. if you look at interregionally, not just japan, but korea, korean companies are definitely at a significant disadvantage and will continue to be and will be interesting to see how the market see. currency -- i don't know if you call it wall, but it is happening. >> have you been making money in
korea? >> yes, we have. actually, korean, we've been making money many korea by finding some companies especially in consumer retail space but leveraging a bigger market beyond korea mostly china. chinese really like korean products and they're shifting away from japanese products for a lot of political reasons and embracing the korean products and that's a sustainable trend, we believe. >> we talk about this a while ago on "surveillance" that the value of cultural soft power that korea has and particularly in china, do you see that driving demand in china? >> it's very obvious. and i think china is still an economy. we have a bigger demographic of consumers but the cultural aspect is not fully there. so korea is filling that spot. so it's definitely a good opportunity for korea. >> julian, none of this is in our textbooks. this wraps into our finance
about you and the hedge fund business. do you wake up in the morning in a new world in 2015 or is it a world that we can all participate in? >> well, i think george shore taught us that there was profit to be made in currencies from time to time. and you talk about the japanese automotive companies. will they do better? just by fiat today, the lexus was reduced in price by about $1,500. >> we have to break. buy arlen suss today. >> what are you scare offend the markets right now? ♪
>> this is "bloomberg surveillance." it is time for our morning must read. and my morning must read is from a columnist talking about china's move to loosen its one-child policy. he said in chinese city, last feeling in the quality of life that has grown unsuitable for raising children -- the government can do what it can to get fertility rates up
and to increase population but it's not having much effect because it can't fix basic problems. >> i think the majority of chinese, they live there. if they want to have one child or two children it's not really a decision based on pollution. but in terms of the young people, about 30 years old who are having second child, it's a very clear trend. >> the wealthier are moving to other places to have children. >> this is really the tip of the demographics. the riches, really. you still have to look a the upper middle upper class. the majority still have to live in china and they are having second children and that's a very clear trend. >> the government in china, the party has really made a concerted earth and said -- effort and said it's focusing from pollution. can you do that on the top there? >> it can be effective in certain ways. the infrastructure is put there
and especially on the local government in terms of the incentive system for senior government officials, it will have meaningful impact. it's still just the beginning. so we still haven't seen the effect yet. >> run ye of tiger pacific with us and also we have julian robertson. when was the last time you were in china and were you able to breathe the air? how did you get through that? i always have to hold my nose when i walk through. >> it's pretty stuff. but i do think the government is very conscious about it and is going to be making big strides to improve it. >> i don't know. every spring and winter, you can't even see past your hands. >> i worry. you can't have a top-down environmental movement. most successful ones have been empowering local people to make local lawsuits. >> i got to admit the last time we talked to an analyst, she was not all that optimistic about the institutional changes in
china. >> does it take a back seat as china tries to keep its economy growing at around the 7% level? >> around this level, i think it doesn't take a back seat. if the economy goes to 4 p.c. or 5%, maybe. but at the current level it's not a back seat. environmental issues is very important. >> run ye and julian robertson joining us. "bloomberg surveillance" will be right back. ♪
a currency rigging probe. the income of $1.4 billion after a loss a year ago. analyst expected profit of less than $1 billion. profit growth at anheuser-busch short. third quarter results hurt by weakness in russia and china the maker of brands like bad light is the latest. consumers overall rain in spending. 10 months into the first term of de blasio, the horse-drawn courageous are alive and well. candidates said no to courageous calling them inhumane and said he would limit they want but tourists still pay $50 for a trot. and no one there is saying why. >> we turn to "surveillance." horseback riding expert julian robertson. withd his late wife, josie
amendable charitable rebuilding of central park. julian robertson on the great new york city horse debate. [laughter] what do you think? >> down. >> down? what would you do? just be clear. what would you do, julian? >> well, i would restrain them to the park. >> keep them limited. >> keep them limited. keep temperature in the park. and i think they pose a little bit of a health hazard and certainly a safety hazard. >> it gets crazy. this is not london, folks. you get out in central park south and it's buses, limos, cabs. julian trying to walk his dog across the street. the whole place stops when bear and julian go across the street and then you've got the horses. >> it is truth. -- true. i used to bike.
and they're unpredictable. >> the little bicycle rick shause are very competitive. >> yeah. >> there it is with your central park south view. >> speaking of competitive, we are four days away from the midterm elections. julian robertson, you have donated quite a -- contributed quite a bit of money to mitt romney saying that you want a great president of the united states. this time around, you've donated to super packs. what do you want to see happen? >> well, i like to see a republican majority in both houses try to get something done in the country. >> what kind of things? >> well, i think that we just have to make some decisions on what we are doing and move ahead. we just can't go along here without deciding on social security. we've got serious problems coming up and people aren't even willing to discuss them. i think we're going to have some
observe leet in the labor force. and americans are not going to let other americans starve. we ought to be talking about it. how do we resolve this? >> julian, the republican party has spent the last five years on protest votes. how do you get them to focus on let aing? -- legislating? >> they were legislating, they would get control and can do something, they would put down anything they do now. >> gary langer, you published abc/"washington post" poll. what julian said and what people feel are, there's a big split there >> jewelian's comments would esonate there. there's a lot of frustration. and the republicans have a good shot at taking control of both houses after this election but
they're still going to be a democratic president so seeing that as a solution as in and of itself producing progress is a long shot. >> julian, how do you feel about the influence of the packs? a lot of people taking shots at rich guys influencing american elections. this goes back to madison? can we go as far back as washington? the right to donate and to contribute, everybody has that right but do we go too far with these super packs? >> i'm not sure that we don't. i think on the other hand, we probably go too far with unions and a lot of other things. so maybe it all equals out in the long run. my feeling is as long as there's a possibility of me influencing things for the better, i want to try and do it. >> what about the failure the previous elections? what do republicans need do to get to victory in 2016-some
>> i think they need to pick an attractive candidate and really go behind him and -- >> you get behind governor christie? >> well, i could get behind him, yeah. but -- yeah. >> ok. >> gary langer? >> yeah. you know, eggheads care about campaign finance reform but voters don't give a tinker's curse about it. this is not an issue. >> no. this dun go all the way back to harrison but this is a poll in which 9-10 americans say the spending has become excessive. that poll was conducted in 1973. [laughter] that has not gone away. that attitude is the same. and by the way, juletian, when we ask people, they're talking-a-spend by unions. other polling is showing that campaign spending is seen as a form of political speech as the supreme court argued in citizens united which 80% of americans
>> this is "bloomberg surveillance." i'm scarlet fu. let's get you some headlines now. actually, you know what, we are still monitoring the markets because the yen is this remarkable story where it continues to leak in. now approaching 112. >> continued pressure you wonder will with go through 112? >> surprised everyone. >> dow futures up 182. >> back to the campaign. isis is coming across the border. ebolas the republican's faults. all americans wear flannel. these are some of the things that you might now believe if you turned on the television at all in the last six months. bloomberg's peter cook joins us from washington. peter, you've been watching campaign ads. are you wearing flannel? are you scared? are you terrified?
>> i had to put on one of those hazmat suits. they've been so painful to watch. be have been some good ones this campaign season. all in all, we're seeing in the federal races and gubernatorial race, 2.2 million arison around the country. and the one that stood out came early in the campaign season hat introduced joanie ernst. take a listen. >> i grew up cast nating hogs on annie farm scott. when i get to washington, i'll know how to cut pork. >> now, again, you don't see that very often on family television bit worked. it got her name out there. and people are still talking about it today. >> working right now, we're in the studio with julian robertson. he just wrote a check just now watching that ad.
>> what's -- what else do you have for us, peter cook? show us another castrating hogs. >> if there was a theme to this campaign ad season, it was run as far away as you can from president obama. if you're a democrat. and if you're a republican, link your candidate or any democratic candidate to obama. this is a crossroads g.p.s. ad against kay hagan in north carolina. it was re-created across the country. take a listen. >> are you hurt? >> kay hagan was the deciding vote for obama care. > hagan o-b-o-m-a. >> spelling bee again was reproduced. multiple space talking about mark pryor in arkansas. an effective ad again. funny, trying to link these candidates to president obama. >> julian robertson, you donate
to crossroads, right? you paid for this ad. did you get your money's worth? >> well, i can't be sure of that. but if we did, i'm delighted i've contributed to it. have you ever cast at it fromed a hog? >> no, but i look forward to it. >> peter cook what, are you going to read about? what are you going to think about as we go to tuesday? >> i'm going to be thinking, tom, mainly about the get out the vote. >> right. >> both these parties claim are better than ever. they've invested millions of dollars senate democrats argue that they've spent $60 million over the last couple of cycles to get the vote campaign. >> right. >> and we're going see whether or not that's the case. we'll see that on the ground. that's what i'll be looking forward to the most.
>> is karl rove happy this friday? >> i think republicans in general are happy. they should feel good about where they stand but not as expect even just a few weeks back. there could be son-in-law surprises and as we talked about yesterday, i do not believe republicans getting control of the senate is a lock but the odds are in their favor. >> peter cook, thank you so much in washington. the republican party, what do they need do to coalesce to take 1600 pennsylvania avenue? they just can't get there, can they? >> 1600 pennsylvania avenue is going to require a great candidate. >> can they get through the primary process to win the election? >> well, that's a good point. their primary process really hurts their candidates. and there will be less debates among the republicans next time. they already settled on that. that should help in some ways.
>> we've got to run here. we'll come back. julian robertson with us. we need a day to check -- data check right now. >> futures are up and risky assets are up. the yen continues to weaken. ♪ >> good friday morning. good halloween to all of you. markets really on the move. an historic friday. there we are. what a year for that matter, what bull market from the depths of early 2009. julian robertson has seen all this before, complete and total doubt about the future of america, the future of american capitalism. you go long and strong when that happens. many of those themes are us as we go into november and into 2015. mr. robertson, with tiger management. julian, i want to go back to investment 101. how do you pick a stock to buy? >> well, i think you pick a stock to buy that has good
management and that has a good product line and that is moving ahead and it is stock holder oriented. those are the sthreer big factors. >> everybody's a genius in early 2009. it's harder to mutt new money in the market. where do you get the courage to nvest today? >> sometimes, maybe it's a from good to move away your normal bill affair, say stocks and all that and maybe look at yirns. they're very interesting to alies. -- leys
>> i don't think we have a particularly strong dollar policy at all. >> japan has a weak yen policy. >> exactly. >> julian, yesterday, we had an honest man on "surveillance". he said you can't get 15% returns without tremendous risk. that seems sober and a responsible thing to say. what are the returns that you think one could reasonably expect in the next two or three years? >> well, in the stock postal, i think it's going to be -- portfolio, i think it's going to be very tough. we have squandered a lot of our future on policies through here. and i think what's happened is that the federal reserves throughout the world have tried desperately to depreciate the currencies throughout the world. and we, of course, have tried desperately to keep our bonds low and so is everybody else.
so, we've got a big bubble brought on by bond yields being so ridiculously low that it's forcing people who would otherwise be in bonds -- to be in stocks. >> julian, you mentioned before this, your affection for apple computer. we saw yesterday, an historic moment of tim cook announced he was gay. i thought the response. thank you so much for their response yesterday through twitter and through e-mails as well. first, your comment on a cort leader of america saying that he is gay. >> well, i think america has adjusted to the gay marriage thing better than anything practically in history. and people who would have thought they would have thrown up at the idea of gay marriage are all with it. so i think we've come a long way
on that. and i think that it's good -- ut i think tim cook has been acknowledged homosexual for some time. >> he made a formal statement on it yesterday within bloomberg business week. julian, if we look at apple computers, is carl icahn your best flebled new york city this holidayen? >> i think these great companies like apple and google would be selling it in two and three times their prices if we were in the 60's and -- 1980's and 1970's again. all these great companies have sold their earnings. >> if you didn't have the fed involved. >> well, i don't think it's so much the fed there. think it's the fact that
surveillance." linked in earnings. third quarter results. beat analyst estimates. this comes the same week that twitter and facebook reported a eakening in user growth. it's always been nearby and it's been building on that nearby categorization as opposed to twitter and facebook which are mainstream. >> that's right. there's a little bit of an identity crisis at linkedin user growth was up about 6%. so that was decent. not as much as you've seen in the past for linkedin. it was basically the social media platform for professionals, right? very simple and straight. they've got three very distinct businesses now. they have the social media side. they have their content business. and they have their talent solutions, which is one of the biggest drivers of revenue. >> which h.r. people use. >> right. it's an effective recruiting tool but as i say, linkedin is going through a bit of an
identity crisis because content is not growing as fast as they would like and the social media platform is good but kind of flat. they want to become more of a company that indicators to -- caters to marketing professionals, become a tool for those types of executives. and linkedin also using that platform overseas in trying to grab more users. >> like everyone else. >> like everyone else. china is fast becoming their second biggest market. and i spoke with the c.e.o. of linkedin last month. and here's what he said about china and its growth potential. >> to do so means complying with chinese law. and at times, that means doing things that we're not comfortable with. and where we've had to compromise on some of our values. and we think that the value that can be created in china is worth doing business there.
>> pretty frank admission about doing admissions there. >> -- doing business there. >> julian, this is something that we've been hearing there a lot of companies that they're not going to do business over there because they're losing their intellectual property even though the mark is huge it's just too much of a risk. is that something that you see as well? would you advise companies to not deal with it? >> i think they're going to have deal with it. it's just too big of a market. you know, there are really a lot of great new chinese companies coming along. allah baba is a -- ali baba is a worldwide company that should help that situation. >> and you think they can play well outside of china? other markets are so different. >> i think they will play very well outside. >> do they have to do that through acquisitions or could they do that organically? >> both ways.
>> and china is such a big market that as julian says. you can't ignore that market and you are going to have to play well in it. facebook, which is banned there, you saw mark zuckerberg trying to charm the chinese with his own chinese. >> wait till they hear julian robertson and his own chinese. >> i have a pretty elaborate flop right on the table. >> betty lui "in the loop." we'll be right back with more "bloomberg surveillance" and julian robertson. ♪
>> good morning, everyone. "bloomberg surveillance." dr. brammer will join us on monday with a geo politics of 2014. ian bremmer on the many fronts of our new world order. we say good morning. with us, julian robertson and mike bloomberg has joined us as we talk philanthropy in new york. mr. robertson and mr. bloomberg go back many years figuring where to spend the next marginal dollars. mike, we were just talking about the horses on central park. julian just talked about the congestion on industrial park south. without getting into this -- no,
i don't want to have get mike into trouble here, but it's one of the great things of new york. >> i'm a believer. >> the tourism of it. >> the spca watches them. they're great for tourists and great for the public. yes, it's crowded in central park. >> it lights up beautifully. >> mike, are you going to run the new york mayor on? >> no. but we are giving candy out tonight. i love your orange tie. i wonder what it was like on this side of the camera. >> pretty cool, isn't it? >> we've got a global reach this morning looking at the news out of japan. just stunning news from the bank of japan. >> all the best. >> thank you for joining us. >> a phenomenal fran tropic guy and knows a little bit about money management. you should ask him where the money's going to go. >> mike bloomberg, thank you so much. speaking with us, thank you. >> julian robertson, we need to get back on script here. here's scarlet fu with top headlines.
>> where to begin? wal-mart enters the crucial holiday season and trying to reverse six consecutive quarters of stagnate retail sales. it is cutting prices of more than 20,000 items and matching its inventory prices with online competitors if the customer asks. more management changes at twitter which has seen a few already this year. the company has named kevin wild, the head of product. wild had previously been in charge of revenue prunths. -- products. twitter replaced its c.f.o. and ousted the chief operating officer this year. the "new york post" says the online sublet service, an official sponsor of the race racked up more than 10,000 reservation last year and appears to be more this year. it is listed first for travel and lodging ahead of hotels like the sheraton times square and hilton midtown. those are your top headline this friday morning. >> they're very good.
good morning, everyone. god.made more money than there was a boom in hedge fund. now after miserable medium performance after all bull a few disappointing investors, a lot of them think the hedge fund industry that must find the next act. julian robertson is certain there will be one just as long as you are hedged. joining us is run ye of tiger pacific. run, i'm going to talk to you. what is the state of the hedge fund business that people on the trenches managing tick by tick right now? is there a confidence going on to 2015 or is everybody under the elfa desk? >> for the industry before us, especially looking at asia where the markets are growing and getting deeper and wider and there's just a lot more companies to choose from and to find good companies to on the long side find the valuable companies on the short side.
>> where will -- >> this is the golden place for hedge funds to be is in asia. and we have two hedge funds in asia -- well, three, actually. but two. and all of our 30 hedge funds, they are one-two in terms of performance. they are in excess of 20% this year. and they can -- they really have a great field to play in. >> mr. robertson, how do you respond to the in news articles of a tough eight weeks for hedge fund, terrible october performance. you've seen all this before. you go through six to eight weeks of horrific performance in the industry. >> well, it was horrific and it was horrific for a lot of people i know including myself. but it's part of the game. >> julian, if you know, if you're urging hedge funds to move into asia, sounds like
there are lots of opportunity when there is economic growth. everybody's a genius when the economy is growing. is that link appropriate? >> no. i'm not really urging that. i'm urging people to go into good hedge funds in asia because this is a little bit the way hedge funds were at first in the united states. and now, there are so many hedge funds in the united states that they are very -- all of them are very good in general. in general, all of them are good. and they're tough competition. i would rather compete with a bank trust department. i would rather compete with the individual brokers or an individual runner -- running his own accounts. hedge funds are well run. >> run ye, which asian markets do you see that have not yet
been conquered by hedge funds? do you go to malaysia? do you go to vietnam? where are you finding this alpha that you talk about? >> well, actually for us, the brand that that you -- when the economy markets are doing well, these days, especially when you look at markets like japan and china, they are big enough not to just take on a macro approach. there are significant pull of good companies that you can pick on a consistent basis. not just that this year, the china year or a japan year, that kind of approach. for us, we're still finding a lot of opportunities in the biggest economies in asia, namely china, japan, and korea. we are not that focused on the southeast asian countries yet because as for us, we have taken a hedge approach. we're trying to make money consistently in good and bad markets. >> opportunity, gride, from greed to fear. our twitter question of the day on this halloween is what scares you the most in the markets
right now? e -- is the volatility a bad thing, run? >> no. velocityity is the manifestation of insufficients in the markets. opportunity the that that results in. >> two words. the federal reserve. julian, did you tweet in? was that your answer? [laughter] he's not saying. and do you agree? >> i think the federal reserve has been a little slow to act here. and i think they've got to come back and let market forces go their way. >> how about this one? that people think a global government stimulus equals free markets? >> julian, it's an endless -- it's academics by punch bowl right now. >> it really is. >> all -- do you expect action
now by the european central bank? the bank of japan has provided a leadership for further stimulus where draghi goes to the bank and just says japan is doing this. we've got to join the crowd. is that the next shoe to fall? >> somehow, i think that euro has go. and we just saw here that i think on your screen there, i glanced over there. german sales down more than they have been in the last four years. >> right. >> it's tough there. >> it's tough there. tom keene, you've got to head off to the radio. run ye, thank you for joining us. >> thank you. >> we are going to wrap things up with our agenda on this friday morning. and i'm going to start things off. because oil prices certainly has been a big concern of markets and investors. and two big oil companies will be reporting results later this morning. exxonmobil and chevron in the
next half-hour. julian, does the tumble in oil prices concern you? >> i think the tumble in oil prices is overall, very positive for us. >> it's stimulative? >> yeah, very stimulative. it's almost like a tax cut. and i think it's very stimulative. >> who does it benefit more? republicans or democrats? [laughter] >> hopefully republicans. >> he hopes republicans. your zeand >> my agenda is i'm going to go home, put on a cowboy hat and suit and drag the kids around in the car. we're going to search for a bull candy market. we're going to find a good neighborhood. what am i -- julian what, are you dress up as? >> i'm going to go as a great big bull. [laughter] >> bull for this year and next year or? >> no, because that's not that bullish. >> great big bull for right now. undecided for next year. not a tiger though. >> i'd love to go as a tiger.
how social media sites are fighting to keep their users engaged and buying. kevin ryan joining me. he's the founder and chairman of a billion dollar flash sale site, gilt. he's going to weigh in on that. he is my guest host this hour. we're going to look at how digital and cable television ads are joining forces to give you out to vote. according to our guest, digital ad spending has jumped 1,800% in this campaign cycle. we'll have him in a few moments. but first, here's a look at our top stories this morning. a sneak attack overnight in markets. japan expanding its monetary policy and gave a worldwide boost to markets. the bank of japan unexpectedly increased the amount of money it's pumping into the system. that sent stocks surging in japan and in europe. the nikkei 225 hit its highest level in seven years. here in the u.s., futures are surging as well. the dow industrials already have erased r