tv Real Money With Ali Velshi Al Jazeera January 7, 2015 6:00am-7:01am EST
what's really going on. >>we can show marijuana is leaving colorado. [[vo]] the highs and lows of a year on pot. >> well, prices in a free fall. and i'm looking at where the bottom might be and when we'll get there. and talk about a dangerous job. a woman who makes a living smuggling oil for isil. and red states, blue states, the divide between them could put all of america's prosperity in jeopardy. i'm ali velshi and this is "real money."
>> don't adjust your tv sets. what you're seeing is real. oil prices are falling and the more they fall, the more they fuel turmoil in america and around the world. $47.43 a barrel in crude trading today. we haven't seen a price this low since april of 2009. and then the world was in economic turmoil. back then, there was a recession that sapped the world's demand for oil. but today's story is very different. new supply, fueled in part by america's fracking boom, is out stripping the demand around the world. ands is not so much a demand problem, but a supply problem. so far they have fallen 55% from june of 2014, and industry analysts warn that oil prices might have room to fall more below 30 or $40. you might be saying, i'm enjoying these low gas prices
but i'm going to tell you the other side of the story. that hit u.s. stocks that fell 1% in trading. against this backdrop, the white house promised to veto any legislation in congress that gives the go ahead to the intentional keystone xl pipeline. and that's the pipeline that goes from canada into the united states, and it would pipe an additional 5,043 barrels a day from canada into the united states, and it has been held up for years citing environmental concerns. republicans in congress reject that and they promise to introduce a bill tomorrow, the first order of business moving it over the rejection of the president. why do we need more oil coming into this country when there's already a gut? and the rest of the world is reeling from the prices.
saudi arabia started offering discounts on the oil that it sells in europe. moves like that make sure that oil prices have nowhere to go but down for now. it's great for oil customers and terrible for oil producers especially for america's shale oil producers. they spend three times more per barrel to frack oil out of the ground out of solid rock than the saudis pay for production. you can get at $47.93, they're still making money, and if you pay $52 a barrel, you're not making money. this is the saudi's endgame, to weed out competitors in the united states by underpricing them. that could be something else to bring russia to its knees, or to bring iran to the table. who knows. but for more
on it, mary snow has this report >> reporter: just as producers pipe oil, the free fall. and saudi arabia, the largest producer is not budging. analysts say that it's unclear how much further the price can drop. >> could we go to $40? yes, and we can go lower than that, we have been there in 2008 and 2009, but the thing in today's economies, they're nowhere near as bad as that. >> back then, the demand forced prices below $40 a barrel. and now too much supply is the big reason behind the price drop. among the countries adding to the supply, the u.s. domestic crude oil reached a peak production, and in iraq the highest level since 1980.
one analyst say that he doesn't see an end in sight soon. saying markets will have a considerably downside risk, and it will likely take into the year before the prices bottom. the question, what will prompt the oil market to stabilize? some analysts say that the demand won't be enough. and they expect the u.s. production to be at the top of the list. >> we think that the weakest supply picture, the north american shale producers, and exploration and production crude oil producers. >> a week late because the shale industry requires heavy capital investments, and they're drying up. and he says crude production could be cut by $1 million a day in north america alone. mary snow, aljazeera. >> and if oil prices are falling because of excess supply, due in large part because of the excess and downward prices for now.
and that means that we should see falling prices for much of 2015. our next guest, john, good to have you here, and everybody wants to know about the prospects for oil prices, but i want to ask you a couple of questions. i grew up in canada when oil sands were a big deal. and it was never profitable. it was for the future when the prices were higher and the cost of the technology went down. but what it's hard to understand, what price oil has to be apt to make money. because as we described earlier, if you were just drilling a hole in the ground and oil is gushing out, it's cheap, $20 a barrel and if you have to go to the hardest places in the world to get t. >> a lot of people have been looking for one number that tells the whole story, and unfortunately, there's no number. if you've been out there in say north dakota for a while, and
the costs are low, the production is going to be down. and there are places up there in eagle texas, they have probably a break even price at $60, and we left that a long time ago. so they're in deep trouble. and you see companies doing what they can to survive. dividend cuts and a lot of things go down. there's not that number. and obviously, if you're at 47 now's, you get into a number that starts with a 3, it's very difficult for shale producers to make money. so we're going to balance ourselves out. with 1 million barrels a day we need the shale production and we have to find a play where shale meets demand. >> 90 million barrels a day and china and india is going up, but we always used to have a pretty good matchup between what we would produce and what
we would use on a daily basis, and now have we have lost that. as much as people don't like opec, they had control over that, and now you have norway and canada and the united states, and we don't control anymore. >> the idea of when opec was formed back in the 60s rather than let the market take the marginal barrel off, they up. >> because the average company doesn't want to do that. >> for years, they would do it and they did it well or not well. >> and publicly or less publicly. >> this time they said we're not doing it, and you get to what i refer to as an order book strategy. whose order books are going to fill up and who is going to have excess crude? if there's excess crude, in the second quarter in particular there's a large amount of excess crude. it can't go into storage forever. >> where does it go? some of it goes on ships?
>> for years, there was a lot of additional storage capacity put in, which is the main crude. and that had drained to a large degree for a variety of reasons, and that's going to fill up. and they will find every place they can to fill it. it makes sense to buy crude now and put it in storage and sell it. >> because most think that it's going up. >> it's a question of they think it's going up, and you can sell now for delivery 12 months out. >> if you can store it, you can make money on it. >> you can easily sell it. so these markets do balance themselves out, but the problem is, we're not sure how. >> let me ask you something, if the saudis are trying to get some americans out of the market, how low -- what number can they keep oil that will cause wells to close down and make sure that nobody drills new ones? >> if this market is able to go to 30, or drop below, there's
going to be a lot of pain. it's what the saudis want to do, not necessarily drive them out of the market, but if you look at u.s. production in 2008, it was at 5 million barrels a day, and the market can't have that disappear, we need that. and they want to know what the pain point is. what is the point at which the u.s. shale producer cries uncle. when you start to see not just rig cuts, or dividend cuts, but cease production. >> so it might be a game, and it might end one day when they see what the price is. >> or you might call it a research prompt. >> john kingston, the oil prices could hurt communities that count on drilling and refining crude. >> we're going to be like a water snake. we're keeping a refinery -- it doesn't have enough oil to
towns. tom achermann visited one such town. >> reporter: outside of a mcdonald's restaurant in pennsylvania stands a relic of the oil industry's dawn. in an area where the first industrial well was drilled in 1859, this one is still pumping. and so are hundreds more scattered around the town. these so-called stripper wells can draw up to a couple of barrels a day from the huge pool of crude that lies beneath the surface. >> it will probably go another hundrediers if we're allowed to do it. we don't get regulated out of business. >> looking at them individually, the wells don't seem impressive, but there are more than 400,000 of them operating in the u.s., and they account for 11% of u.s. total oil production. in 2012, by comparison, these marginal wells
matched owl of qatar's output. and the latest in hydraulic fracturing could extend the working life of these wells, but as the price of crude has fallen by almost half in the past year, many operators are not shutting down. they say that the profit is not there, and burdensome government rules threaten their long-term survival. >> at least at $100 oil, this was some possibility of compliance, but losing almost 50% of the price of your product over a 3--month period it's stifling and suffocating. >> the steep price decline has forced big companies with expensive fracking costs to detail their retention plans. in the u.s., dropped by 40% in just the month of november. bill klein spent 40 years in
the oil drilling business, and he doesn't know how long his town can keep it in business. >> the refinery doesn't have enough oil to run. god bless bradford, because there won't be anything left. >> but if the price of crude doesn't start recovering soon, no amount of oil that's still left to pump here will be enough. >> by the way, ali, that refinery that you just saw is described as the oldest continually running refinery in the world. burr it has had a few close calls. company went bankrupt, and until it was sold a few years ago, they thought this it was going to close for good. >> i'm glad that you did that story, and a lot of people don't know that a lot of the first oil wells in this country came from pennsylvania. but i just had a conversation with john plat about the
numbers. the average, $17 a barrel, they drill into the ground and the oil comes out and the frack, it's in the 50s. so 47 bucks a barrel, they're losing money, but the stripper wells that you're talking about, they have been there a long time. and there's no capital cost and investment. and how come they're not making money at 47 bucks a barrel in. >> you talk to them. and they continually talk about the stifling cost of regulation, and this is not federal regulation. they're talking about the state of pennsylvania, which has been rather welcoming to fracking and they complain about that. but moreover, it's the fact that their -- you notice the refinery there, it's captive to that local refinery, and if the refinery doesn't find it profitable, and profit margins are thin, and in this case this is lubrication oil that they mine there, then the refinery can't use their
product, and they have no place else to go, and that really is one of the determining factors of whether they can continue to stay in business or just choose to shut down. >> and then you have the situation that got us in america, where regions and towns are built around particular industries, and the gentleman said that, if the refeignry doesn't have enough oil, god bless bradford. >> one exception, they have the world headquarters of zippo lighters, and that keeps them on the map. but you can't tell how long they will last as well. but they have been in business for more than 80 years. >> all right, tom, good to see you, tom achermann joining us on the story. one group not concerned about falling oil prices are consumers, and i get tweets from people, who say, why do you spend so much time complaining about lower oil prices? it means that drivers are
paying less at the pump. another thing, a gallon of gas is more than a dollar cheeper than last january, and in a year's time, $10.10 a year, that's a substantial economic stimulus. $150 billion worth. joe bynes works with the retail, and he joins me now. i'm obsessed with putting numbers up. how much oil costs, and how much people can survive? how much money is in america's pockets? and your guys have calculated, just on the driving side, home heating and everything it's $150 billion if that $1.10 drop were sustained for a year. it's a lot of money. >> it's a lot of money, the way you might break it down, it's about $50 a month per driver forever, until the prices go
back up again, ands this the consumers. >> and we know for instance that we don't have the yo-yoking between small cars and big cars anymore, and it's not as if somebody is going to go out and buy a less fuel efficient car, we don't drive a lot as a result of it, so where does the money do? >> a substantial portion of it does go to the retailers, and unless you happen to be a consumer that works in the oil and gas industry for the vast majority of consumers, this is a pure economic stimulus, and it benefits people disproportionate. so an additional $50 in the pocket of an affluent family is less relevant for a family that's working paycheck to paycheck, and there are lots more of those people unfortunately, and that's where you see the real impact of the low gas prices. >> are we in a place where it's
a real gain, it's a boon, and people are going for dinner and making renovations and buying appliances and cars, or are people breathing a sigh of relief, an extra $50. >> you laid it out. the bass prices are like carbohydrates, and the first people that benefit, convenience stores and restaurants and places like that. and over time, as consumers believe that they're here to stay, and the prices may be low for a long period of time, which is sounds like that's the case, they begin to treat it more like a wage increase, and less like a bonanza that they got at the end of the month, and that's when they start thinking about repairs and consumer electronics and durables and other things, and we're starting to see some of that as well. >> so when we have the official government stimulus, and that's a big one. don't think that the $787 billion, that was an out liar.
retailers were getting excited, spend your rebate here. but if people saw the money, they would spend it as opposed to receiving more money. i'm not seeing that, but are there retailers thinking about how they capitalize on this? >> . >> absolutely, first and foremost, twice a big a drop was the last half 2008 and the big difference was, we were in recession then. now it feels like it's a real win to the consumers, and the question mark to the retailers is, how are the consumers going to change? so the ones putting impulse purchase items in front of the consumers on a much more regular and pervasive basis. if i were a retailer, that's exactly what i would be doing. the easy to reach, easy to buy no matter the category that
you're in, that's the first thing that they will do. over time, over the next weeks and months, you'll start to see some shift in consumer behavior, and move toward durables and other purchases because they feel they have more money. >> that's me, by the way. i'm that consumer. >> we love you. >> good to sigh you, joel, the managing director at partners. most americans didn't have the chance to see it until now. you were going to meet the foot soldiers smuggling oil for isil. >> where did the oil come from? >> it comes from syria, they bring it across the river to their village and homes.
>> i know that i'm being surveilled >> people are not getting the care that they need >> this is a crime against humanity >> hands up! >> don't shoot! >> hands up! >> don't shoot! >> what do we want? justice! >> when do we want it? >> now! >> they are running towards base... >>...explosions going off we're not quite sure... >> fault lines al jazeera america's emmy winning, investigative, documentary, series... >> almost we told you that the terror group isil has reportedly put together a budget of $2 billion, part of its effort to create legitimacy. but it rise heavily on stolen oil that it's no longer selling at the premium price that's it was. and it's going to be difficult for the group to make it's financial goals. think of isil ending with a financial benchmarks. but as any schiffrin reports
isil has other ways. the story that you're about to see contains graphic midges. >> down a bumpy turkish road a few feet from the syrian border, we set out to find isil's income. our guide, a female smuggler her tools, jerry cans earmarked for gas. in a discrete hotel room in a nearby city, we see how isil recruits. he's a 27-year-old it expert. his tools, a keyboard and mouse, over cups of tea. we learn how isil is organized. our expert, a syrian, once employed as an isil salesman. >> . >> isil took over factories, and they needed civilians not connected to hem. >> the three people all demanded anonymity, show how
isil's management and organization and wealth, depend on foot soldiers. they work for a self proclaimed islamic state that might claim to fly the flag of islam, but it's heart is corporate. our journey begins on the road with 22-year-old setting. >> were a lot of people smuggling, and was it easy to smuggle through this area? >> every night for 18 months she would take this tushish road to the syrian border. the turkish town, on this day, our car had this road to itself. hajibaja is so close to the syrian border, they can drive across. it's best-known as home to smugglers. tractors used to transport and the jerry cans used it store isil's main income, oil and gas.
town smells of it. smuggled across the river. >> where did the oil come from? >> it comes from syria. they bring it across the river and take it to their village and store it in their homes. >> inside of syria iraq, isil has 30 oil refineries, and they sell it every day for 1-$2 billion. and they sell to turkey. the turkish soldiers found out how. the gas is pumped flu underground pipes or the smugglers move it across the river in jerry cans. buses. >> they will construct a gas tank, and make it bigger so it can hold 45, 50 gallons, and if there's no army, you can make good money. >> for these people, it's not ideological, it's business. >> the people are like outsiders. >> not so
much to buy december ill. >> the town didn't like it. after we filmed the jerry cans smugglers stopped our car. we tried to get away. >> okay, okay, we're stopped. >> they released us only after seth convinced them. anyone interrupting their business, and profits isn't welcome. >> how much money did you make? >> your income depends on how much gas you bring. if you bring a ton, you bring 400, 7900, 1300. and if you bring ten, you make $10,000 a night. and it depends on good you are. >> the only thing that separates syria from turkey is a thin river, and it has been a haven, not just gas is crossing the border, but fighters.
>> we have brothers from uk. >> foreign fighters fueled isil and fueled it's rapid rise. they star in isil's unprecedented social media campaign. hundreds of propaganda videos, well filmed. and many showing photogenic protagonists. >> . >> i'm from south africa. >> foreign fighters proudly have their citizenship from the united states, and a few dozen are american. >> after iraq, aljazeera, we're going for you, barack obama. >> and this is the man who helped vips them to join. >> how easy was it to recruit all of these people on line? >> they will follow anything you tell them. they have been brainwashed. we talk to them about religion paradise and virgins.
>> in a hotel room near the syrian border, half a pack of cigarettes. a 27-year-old who wants to be known as salam, reported isil's media strategy. they spent days online, and they painted isil as populous and popular army. and the syrians who opposed them were incomp dent infidels. >> what you said was it true? or false. >> almost all of it was lies. >> americans are always trying to hack into these accounts, and how did you avoid other accounts? >> we changed the passwords every 12 hours, and we hand wrote all of our contacts, so if the accounts are attacked we can reach everyone again. it
worked. every month, more than 1,000 foreign fighters join isil, and propaganda shows foreign fighters who brought their entire families. >> i'm here,. >> the foreign fighters who already joined isil gave their friend's contacts. media is the important thing for them to attract foreign fighters and popularity in iraq. >> and try to create popularity that expand t expand
dearly cherished right in france. and few people as a society as a whole would in any way support the idea of censorship or an silence an organ of the press. this is a country that values of principle of freedom freedom of speech. while those may say there needs to be a limit or restraint i do not believe that many in france will support calling for the closing of this publication or any other. >> hold on the line for us much. we are looking at pictures of paris, and see a lot of police near the headquarters of this magazine. we have seen people have been
taken out, one person in particular taken out on a stretcher. we know that is number of fatalities have occurred people have been injured. if you have joined us on al jazeera, developing news that occurred in the last half hour. the french media is reporting that a number of people have been killed at a shooting at the headquarters of the satirical weekly magazine "charlie ebdow." we are presuming this is outside the magazine. these are live pictures outside the magazine's hours.: a lot of security and emergency personnel gathered there. we have been told that several people have been killed and several injured. we have jacky rowland on the
line here at the moment. from where you are, we understand the roads have been blocked. if you could describe what you are seeing. >> i would like to bring you up to date on the latest figures that we are getting in paris. we are told the death toll stands at at least 11 dead including two police officers killed during the shoot-out. we are also being told - the reports here say there were two armed attackers, and it's reported that they stopped a motorist basically grabbed the motorist's vehicle and scoped. according to the reports, there are two armed men able to escape in a vehicle which they seized basically by stopping and threatening a motorist.
that's the latest in terms of details of the attack and it's similar to what you are seeing a lot of police standing at the end of the boulevard which they have cordoned off. more police vehicles arriving all the time. obviously a great sense of shock. that an incident such as this would have taken place in the center of a major european city. and also shock at the idea that in fact these two assailants who we were told were addressed in black with faces covered in masks, using automatic weapons apparently succeeded in escaping from the scene. so that is the latest i can tell you in the 11th hour in paris. >> give us a sense from where you are, and what you can see, give us a sense of paris.
what is this area like. we are, of course as i mentioned looking at this 1 narrow street - and these are the latest picture to come out of paris. we are looking at 1 narrow street. lots of people there. as i mentioned earlier on we saw one person taken out on a stretcher. give us an idea of whether this is a built-up residential area or is it a business hear that has been crowded at this time of the day? >> this is a very busy or in the center of paris. television paris are pretty much focussed on the end of the street. this is close to bastille. it's an intersection with several roads spanning out from it. it's a busy area there are shops, restaurants, officers and residential areas. paris may be different to other western cities in that
commercial premises and residential premises are mixed together. you don't have areas that are just one or just the other. this is an area where a lot of people come to wok. it's a place normally at this time of day where you expect lots of people to have lunch. there's lots of shots. it's very busy. it's the first week back at work. many shops have begun sales today. a lot of people have been out on the streets. it's a very very busy neighbourhood. maybe i would compare it to something like piccadilly circuit, london. not as busy as that. it is a big intersection. it's in the center of paris, the heart of paris. not far from the river siene. this is not a quiet suburb. the fact that something happened, it's the heart of the city and the fact that the attackers were able to flee from the premises force a motorist
to stop and steal his vehicle, as well seems to be shocking the fact that they managed to escape. through the busy traffic in this part of the city despite the traumatic and deadly incidents that took place in the headquarters at the offices of the magazine at the 11th hour in paris. >> thank you for that. we'll leave it there for now, and leave you to find out a little more about what is happening where you are. and for those of you who just joined us on al jazeera, developing news out of paris. french media reporting that several people - we are told by our correspondent, jacky rowland, who we heard from there, 11 people at least, have been killed in a shooting at the hours of the satirical weekly magazine "charlie hebdo" in paris. these are the latest pictures to
come out, just outside of that headquarters in paris. i believe we can go to lawrence lee who is standing by in london. what can you tell us about this particular attack. of course it's very early hours yet, i suppose. minutes you can say. but what else can you add to the developing news. clearly it's a major incident in its own terms, and a live incident. two gunmen managing to escape in a car. then it's not over. that is just one level of it. clearly the other level entirely is what it says. it's politically incendiary as well as being violence. two days ago people would have seen a large march in eastern germany where there's a growing mood among germans on what they
see as an islamization of europe. many of those views obviously are echoed in for instance. here as well in the polls, where right wing parties are on the march, and it's - it lends into the argument that says that some people inside islam will not have a religion criticized on any level. it will play so much bigger political arguments. >> if you can stand by. let's now go stefan an independent journalist in paris at the moment. i believe he is on the line with us. i'm told you were on the scene when the shooting occurred. what can you tell us. >> i was not at the scene where
the shooting occurred but i'm there now. 11 people were killed from satirical "charlie h, dbo." a weekly in paris. a number were killed. people with automatic guns entered the floor of the magazine and started to shoot arrangement. then there was a shoot-out with the police and there's currently no information. stefan what can you tell us about the security that is usually in place in this area where the shooting occurred. >> the security is huge. there are tens of police cars and ambulances on the street.
the minister has arrived and the president francis hollande is on his way as well according to my information. there's a huge investigation into what happened. the teams are clear that it's an attack attack on journalism and the freedom of press. >> we saw as we are talking to you. we saw someone carried out on a stretcher. have you been able to see an ambulance, and if so how many people have been in out of the ambulance? >> one ambulance, and one wounded carried inside the ambulance. there are 20 or 30 ambulances on the side. people are being - taken away. and a member of the police. the office - it's a person 200
people and already there are journalists here. >> thank you for that. an independent journalist live on the scene there. describing to us what is actually happening. a recap for those of you who have joined us - french media reporting now, several people have been killed at the hours at a satirical magazine "charlie hebro." we are trying to ascertain as to how many others have been injured. let's go to lawrence lee joining us from london. what can you tell us about charlie hebdo. >> the reputation partly saying what it feels about anyone regardless of the consequence, and the characterisitions of
islam. while it's true that they conducted the attack... >> can i interrupt you and tell what is on the scene. one person is being stretchered out, put into an ambulance. these are the latest pictures coming out of paris. we spoke to an independent journalist saying that this scene - there's a lot of security on the scene at the moment. we saw some - we saw a police car riddled with bullets on the front screen. we are told the french minister is on the scene and francis hollande is on his way, calling for an emergency meeting of the cabinet. with this dash before we get to
you, let's go back to paris, and french francis hollande is about to speak. let's listen in to what he has to say. we are trying to get a translation on what the president is saying but he's there on the scene, as you can see now, speaking to the press. we were told that he was making his way to the scene of the shooting in paris. we are going to try to get some translation for you. let's go back to lawrence. francis hollande has called for an emergency meeting. what do you think would be his next steps? >> well i think he'll - clearly the first thing will be to ascertain who did this. as i said before while we don't know for certain, there i think, going to be an element of
assumption that this is likely to have been carried out by people who are on some level or another against "charlie hebdo' characterisation of muslims over time. that is what "charlie hebdo" as a magazine is known for, it's not only that they are rude about anyone they are rude about francis hollande christians, andextreme islamists and feel that it's their rite to say what they like about anybody. they have been targeted over time by muslim groups who have felt wronged by "charlie hebdo" to have attacked their religion and they have been condemned by politicians for attacking islam
saying that they shouldn't do it because it's like holding a red rag to a bull. an hour before the attack "charlie hebb doe" put the i.s.i.s. leader on the front saying best wishes to him. it looks like at first clans it was well organiseddo" put the i.s.i.s. leader on the front saying best wishes to him. it looks like at first clans it was well organisedbut they present so many images it's difficult to know where one perceived offense might stop and the next start. most people in the absence of verification of who is behind this most will assume that the attack is more rather than less likely to have been carried out by people offended by "charlie hebdo "s characterisation of
islam. that's francis hollande's talk over this first of all, they have to stop it and find out what to do next. >> we'll leave it there for now. laurence lee speaking from london. we are joined by renault gerard a french expert from belgrade. mr gerard thank you for being with us. what is your take on this latest development on this shooting at the headquarters of the satirical weekly magazine "charlie hebdo' hebdo" it's a serious swigs... >> we seem to have loft renault gerard on the line for us and i'm now told that we can go to jacky rowland, who is on the scene for us. describe to us what you are seeing now.
>> right now the french president francis hollande is on the scene, and he is talking to journalists. i have been listening to some of the remarks that he is speaking. he has described this has a terrorist attack. he has said france is now being put officially on terror alert. which is really of the highest state of alert which the country can be put on. at this moment he has finished speaking. he's walking away from the reporters, he was saying also that he is going, within the next hour to be meeting with his cabinet, his security cabinet, the closest to plan the next hours ahead. obviously of particular concern is the fact that the two attackers were able to escape from the scene. basically they took a motorist hostage and stole a vehicle, and were able to escape from paris,
escaping towards the east. so far as we are aware, the two armed assailants armed with automatic weapons, reportedly to have rocket launchers as well were able to after carry out this attack - which we are told left 11 dead, including two police officers - were act escape the scene, got to the outskirts of paris where they abandoned the vehicle they stole. but francis hollande speaking here was saying to journalists, here, close to the offices of " "charlie hebdo" that all forces would be mobilized and security would pursue the attackers for as long as necessary. france has now been put on terrorist alert - announced by the president - following this attack on the officers of the
satirical magazine "charlie hebdo." >> this is the highest alert. what i find shocking is one that the shooting occurred blatantly in bright daylight. give us an idea of what security is usually like in the area. >> well this is central paris. it's neighbour hood baste, an up and coming gentrified neighbourhood. a few years ago it was a bit rough. now that's more investment. there are a lot of shops and cafes, and a lot of residential property here as well. you know it's really central paris, and a very busy neighbour hood. baste is a busy intersection close to the river senn and paris. it would be standard security.
what is important to question is the level of security at "charlie hebdo" because this is a magazine no stranger to controversy and violent attacks. a couple of years ago there was a firebomb attack on its premises carried out after the magazine published controversial cartoons with the profit mohammed causing offense to certain parts of the population. it's a magazine which has, in the past had violent attacks. i've been on a number of occasions, their officers moved around the premises. in my experience there hasn't been particular security there. obviously... >> we just will have to leave it there for now. do stay on the line for us. we want to bring in our guest who is also on the line. renault gerard. we are trying to re-establish
communication with him, a french expert. he joins us on the line from belgrave. as we were trying to speak to you earlier on i was trying to get your take on this event that occurred in paris. >> i wanted to say it's like a nightmare. three or four days ago... >> no it seems we have lost mr gerard once again. we'll try to re-establish communications with him. let's go back to jacky rowland ... i'm dal walters in new york city al jazeera america. we are tracking the developments in paris. 11 dead as you have seen. at the headquarters of that satirical magazine. gunman breaking into the "charlie hebdo" offices, intense gun fire we'll take a break and resume our coverage in just a few moments. from al jazeera america morning