tv First Up With Angie Lau Bloomberg November 15, 2015 7:00pm-8:01pm EST
it is 8:00 a.m. here in hong kong, 1:00 a.m. in paris, 7:00 p.m. in new york. wherever you are, one story is dominating. the attacks at the french capital and the regressions around the world. this is our special report, "terror in paris." yvonne? yvonne: french bombers attacked islam estate state in syria. they say it was payback for france's actions in the middle
east. another become the focus of the investigation as police say several of the attackers were based in brussels. the world response. paris dominate talks at the g-20. this is a scene live in paris where it is just after 1:00 in the morning. people continue to pay their and thereo the dead are 99 in critical condition, fighting for their lives. as city remains shocked europe's worst terrorist atrocity in a decade. fallout inthe financial markets right now. trading in japan just getting under way after getting confirmation that their economy was entering a recession in the third quarter. >> we are seeing falls coming through, particularly big falls on the nikkei 225. we knew today was going to become.
certainly that miss on the third-quarter gdp number also weighing in on equities. south korea coming online as well. down by 1.4%. we already had falls coming through in australia and new zealand. although they have pared back some of their losses. europe in the u.s. and starting to pare back a little bit. we have seen the u.s. futures index actually come back a little. that is the regional index, down by .5%. u.s. futures down by .5% as wealthy -- as well. perhaps investors taking this a little in stride. we are watching data out of japan. it has continued to strengthen against the dollar. a course, also being seen as safe haven. of course, also looking at gold because gold continuing to rise.
it has had that really big pickup in its early session trading. as we start as he investors moving to the dollar, the swiss .ranc, the yen, and gold let's check out the oil price as well. there has been a little bit of a pickup in oil as well. this is on supply concerns. still below that $41 a barrel mark. quite a significant fall on friday but looking like it is going to be a tough day for investors. certainly a lot of short-term volatility in equities. angie: thanks. connan ino caroline paris. what is the mood like there? caroline: the mood has been pretty strange in paris the whole weekend. we have obviously reinforced
security forces, 10,000 soldiers and special forces by tuesday will be across paris and the big cities in france. this is, however, failing to reassure the french population and especially the parisians who were shocked about these attacks that took place in the center of paris in this popular neighborhood of the 10th and 11th district in paris, where many young people were going out on friday night. there have been various scenes of panic across the evening on sunday in paris. as you can see, at the republic square, people started screaming after hearing some firecrackers. that created a scene of panic and caused a clearing the square in just a few minutes. that was a false alarm, but it
gives you the idea of the level of anxiety that there is at the moment amongst the french population. the same scene of panic was seen in the center near one of the busiest metro stations. people started laying on the floor in the café after hearing some screams. all of these have been false alarms. there were no further events happening in paris on sunday night. however, the level of anxiety is at its maximum despite the reinforced security measures, despite the state of emergency that has been declared since friday. the schools, the public buildings, and many museums and cultural centers will reopen on monday in just a few hours. so far, even though people have
been banned from gathering, there have been hundreds of parisians still coming to pay the tribute with flowers and candles across the different sites of the attacks. angie: we understand the interior minister has told french 2 television that the extremist group which and responsibility for the downed russian airliner says that -- they are urging people based in belgium to act on french territory and other european cities as well. what is the response domestically and what do we know about the investigation so far? caroline: that is right. confirmed on french television that the attacks originated in syria and use a terror network in brussels,
committing crimes than on french territory. what do we know about the investigation so far? first, there is one attacker still at large. the french police have released his picture on sunday night. old and was born in brussels. to have been controlled at the belgian border. at that time, he was not considered a suspect. we also know that two of his brothers may have been also involved in the attack. one of them is believed to be one of the attackers on friday night who exploded himself. the other one is currently being questioned in belgium. course, the investigation between the french authorities and the belgian authorities,
they are looking at cooperation between the two countries because the belgian connection is clearly there. at least seven people are in custody, being questioned at the moment in belgium. two cars had license plates from belgium. this is what we know so far. live fromoline conan paris. thanks for that. the attacks have led to increased security around the world. asia is no exception. securitylking to a expert from the australian defense force academy. he joins us now from canberra. professor, we are reminded of events that happened in australia just a year ago, where we had that standoff between andcalized terror suspects police. issueswe know that these
have been addressed properly in asia? what more needs to be done? it varies from country to country, but in those countries with a large muslim population, there are hundreds of recruits that have left and gone to fight with isis or other groups in syria. because theyorry are radicalized and may return home. would-be events like paris, which happened in australia, where a café seat took place -- siege took place and individuals were killed the -- were killed. throughout asia, there are destinations for foreign tourists from countries whose governments are fighting against assad and isis in syria and could also become targets of attacks. .his happened in 2002 in bali
it is not necessarily a direct attack. other asian countries are not in the war against isis, but they could serve as places to attack, places with western tourists of countries who are engaged in syria. where might that happen? attacks from isis, they are directing it against assad regime and foreign countries that are fighting isis itself. the attack could occur -- bali was the site of an al qaeda-affiliated attack. australia is probably a likely target because australia has a muslim community and security
forces here have been relatively successful. paris, -- what happened in paris, it could inspire others to follow through. isisuld -- it depends on using propaganda to encourage others to take action and they could direct them to do certain attacks. attack civilians, tourists, and the most recent security alerts in australia prior to paris was the isis was targeting military police and intelligence officials. has proven in paris that the general public is now at risk. in countries involved in suppressing isis, there could be problems. angie: is it fair to say that countries with bigger muslim communities, indonesia, malaysia, and even india, that
they have a better understanding of how to work attacks -- thwart atatacks? or are these hotbeds of radicalization? guest: they are both. australia worked very close with the u.s. in the aftermath of the terrorism that arose then. there are also grounds within the muslim community for radicalization. there have been attempts at counter radicalization. if we go back a decade, terrorism has been suppressed basically be but this new phenomenon of isis, large , how wellom indonesia do you know that they are not going to keep recruiting? that is the problem. countries that receive ,mmigrants from syria, refugees there is a question of the security forces.
it is relatively good. you cannot stop an attack when the attacker is willing to take their own life. that is the problem. angie: al qaeda, we saw the worst. isis seems to be more extreme than that. what is next? things -- if these am not going to say paris was a one-off. it took a lot of planning, but what would paris or america have been like if other groups had been active shortly after in the months that followed and carried out other terrorist outrages? when people gathered in paris today and the firecrackers when , isis isnt off inventive. it has taken the struggle outside of syria, directly at the heartland of a country.
any of the major countries supporting the suppression of isis could become targets of opportunity. picks up onds, isis the web people who are radicalized and asking for direction. they aid and assist them and within a country or nearby countries, we have a terrorist outrage. angie: thank you so much for that. as we continue our special coverage of terror in paris and the response right now in syria. globe as g-20 the gets underway. you are watching our special coverage. coming up next, a lot more details to come. these are pictures of the response around the world. unified in the response against these attacks. unified as one from new york to london to tokyo. ♪
>> i think the events in paris are on everyone's mind, but how we were or would towards greater understanding across the g-20 nations is going to be an important discussion to continue to have. >> we not only worked in paris, our headquarters, but we have many people who work and love paris. we are all very struck. i am canceling my trip to the onc summit and going back monday to paris to join all our teams and all our staff who have already secured where we work. we are taking very strict measures. but the most important thing is that we have to continue. life has to go on.
we cannot let them beat us. we cannot let them make us go back with fear or disrupt our lives. we just have to keep at it. it would encourage people to postpone any activity of that nature. in other words, it would push back the idea of increasing rates. again, increased uncertainty. the level of activity in europe has improved. not so much in france, but certainly in germany, italy, and spain. have probablyn rebounded as strong as germany and italy has started to improve. these events are not good news for western european recovery. angie: business as usual, the best response to terrorism. these attacks in paris dominated the first day of the g-20
meeting. ryan chilcote is there. it should be very different for the g-20 countries. they are supposed to talk about the bread-and-butter issues that the g-20 usually focuses on, things like cutting unemployment, what to do with the banks, tackling climate change. they won was entirely consumed about conversations -- by conversations about paris. there, the last , the of the evening official agenda was paris, terrorism, and syria. is that a distraction for the members of the g-20 who came here by and large to discuss the global economy? i ask that of the canadian prime minister and he told me no. of that we evidence already got today. g-20 leaders agree they will do more collaboratively to work on
cross-border funding for terrorism, trying to shut that down. also closing borders or strengthening borders. even a talk about how inequality needs to be addressed because ultimately, it is the lack of hope many of the g-20 leaders have underscored, including the host, the turkish president. perhaps the most concrete example or manifestation of the of theas the meeting russian and american president, sincefirst conversation the russian jet exploded in the skies above the sinai peninsula, killing more than 200 russians. their first sitdown meeting since they met at the general which theafter russian president blind-sided the american administration by beginning military intervention in syria. the united states call that meeting constructive. the u.s. president even said that russia's military intervention in syria, russia's
strikes that are focused on isis , was helpful. a real change of tone from the obama administration. huge differences remain on the issue of terrorism and syria, which many people believe are very late, given the events of paris. that leads to the russian president support for president assad and how to go about a political process. today,re is a sense that while consumed by the events that took place in paris, was a helpful start to what was a very meaningful and needed discussion on the issues of the day. so what is next? continue with us on bloomberg television as we continue our coverage of terror in paris. the response now extending to syria. of the 352 people injured, 99
the first response outside the middle east to react to a global event in paris. how will things play out in your opinion? obviously,t-term, markets in a fragile state before the attack. the damage to investor sentiment is showing on the opening of most asian markets, down quite heavily. given the economic point of view, it is unlikely to have a major impact. whether europe is going to be warged in an act like against syria, that will remain on investors' minds and lead to short-term weakness. angie: how is that being
factored in right now, especially on the commodities space? there is a lot of fear already priced in to the markets , especially after the august-september selloff. but we had a very strong october and most markets became overbought. now you have the fed in the background. indications are there will be a rate hike in december. on top of that, now you have the terrorist attack. all of that really -- the terrorist attack was not priced in to the market. having said that, we are in a world that is getting increasingly used to acts of terror. september 11, the market reaction was much stronger. this time, the reaction is likely to be just short-term, but it will have an impact. angie: very quickly, japan, second recession or shinzo abe.
what do you think the market response to that is going to be? are thatl indications japan will go through a technical recession. look ataid that, if you the data that has come out recently, sheena reorders, they have been quite strong. all indications that the weakness we have seen in the past few quarters is going to be followed by a strong rebound. the boj meeting coming up. it is unlikely that they would look at these numbers and increased the quantitative easing. globally, growth is picking up. angie: thank you so much for that, live out of sydney as we continue our coverage. .esponse is one thing more coming up. ♪
welcome back. you are watching bloomberg television's special report, "terror in paris." yvonne man is here with the latest headlines. officials have told the associated press that key suspects in the paris killings were stopped by police after words near the but -- near the belgian border and then released. a 26-year-old identified as the man who rented a car that took again to the concert hall. elgin is becoming the early
focus of the investigation. he was born there and one of his brothers is among the seven dead attackers. another brother is under arrest. french warplanes have bombed targets in the syrian city that is the stronghold of the islamic a group. the attacks in paris were ordered from syria. a command center has been hit as well as other sites, including a training facility. president obama and president putin talked one-on-one for more than half an hour at the g-20 service -- summit in turkey. the paris attacks are dominating the agenda of the summit. chancellor merkel said the refugees must not bear the blame for the bloodshed in paris. we are getting the first reaction in asian markets to the paris tragedy. rex as expected, we are seeing falls in the region today,
particularly in japan. the nikkei one of the worst performers in the region, down by 1.3%. helping,of japan not showing that japan has slipped back into a recession with third-quarter gdp missing estimates. weakness coming through in korea, down by 1.3%. australia continuing its fall and australia down by .6%. a look at what we are expecting on the futures in europe and the u.s. in middle eastern markets yesterday, we saw july down by about 4%. -- dubai down by about 4%. this bright spot, some of these gold players. we are seeing very much a flight to safety. new crest mining, australia's bygest gold player, up nearly 6% in the region. some of the other players looking good as well.
bhp billiton is switching into positive territory as well. the gold price has continued to rise today, up by about .6%. certainly a flight to safety. the oil price also getting a kick up because there are going to be some supply concerns. dip,tle bit of a get -- below theices still $42 level that we saw last week. currencies in focus. the japanese yen, another flight to safety. again is losing some of its gains from the early session, but still stronger against the dollar, up by around .1%. as well has been falling against the dollar, down .5%. certainly that story of
investors fleeing to safety in assets, the order of the day. we are expecting some short-term volatility. the japanese volatility index up by about 14% at the moment, angie. angie: thank you so much. let's head over to paris, where we have caroline connan joining us live. she is in front of the concert hall where so many died. 89 there. what else can you tell us about the investigations as they intensify? caroline: there is one piece of information that we learned in the last few minutes. one house has been searched in a suburb north of paris. very close to the stadium where one of the attacks took place. neighbors have been questioned. we do not have any more information about the search at the moment. that means that the investigation is progressing.
at the moment, the main information of the evening here in paris is this international manhunt that is underway. one man, his picture has been released by the french police on sunday night. one man is still at large. the is 26 years old and was born in brussels. he is believed to be one of the attackers. in fact, he is believed to be the person who rented a car that was found abandoned in front of the concert venue after the attack. is information that we have that he was control that the belgian border in a car with two other passengers earlier on saturday. however, he was not arrested at the time. he was not considered a suspect. of course, this is the main
information of the evening. he is believed to have two brothers from the attacks. one of them was killed and the other is currently being becauseed in belgium emerging from this investigation is the belgian connection. that france and belgian are going to be giving the cooperation because there are many links to the attacks on friday. angie: as you said, free of the seven attackers who died during .he attack were french citizens one was found to have a syrian passport on his body, whether it is fake or real. no doubt, there are a lot of
political implications here. all right. we have lost our connection to caroline connan, who was joining us live in paris. we will try to establish that connection as we continue our coverage. as socialack here media has played a crucial role following the paris attacks in getting information out and showing support. we have rosalind chin monitoring events. what has the responsibility on social media? >> many people turned to social media to look for immediate answers. #paris attacks have always very popular. millions and millions of users. people try to get more for lovedn real-time
ones that may be missing. this is one very commonly used for people who may have friends and family who were in paris and looking for them. in terms of looking for information, google allows you to track the trends for certain searches. paris and paris attacks. just a simple term, you can see and you can see the spike is as asia wakes up to it. termone is going under the paris on google. you can see the competition of words not quite peaking so much at that time. facebook,so looked on where many people have seen
pictures of their friends changing the profile pictures to put the red, white, and blue french flag over their own image. this has been used in the past to show solidarity. has started using it safety check feature to help locate people. this is how it works. you get a message and facebook will look at your last city that you use internet or if you have used the friends nearby feature, where you have listed that you are. it will send a message to your friends as well. since it started in october 2014, it has only been used or natural disasters.
facebook saying they will use it for human disasters as well. fore: it was incredible people reporting real-time events as they occur. an hostingne in batacl that he was shot, whether or not that was verifiable. that was posted in social media as well. grexit you have to be very careful about what you are looking at. angie: there is a growing number of journalists starting to verify that on social media as well. a number of tools out there. q so much for that. let's get back to caroline connan in paris. we have reestablished our connection with her. you are standing in front of the concert hall where 89 people were killed, taken hostage and many killed. many of those attackers died. citizens,hem, french
one with a syrian passport on the body, whether that was fake or real. there is no doubt of the political implications that this has on a policy level, right? caroline: exactly. veracity of the syrian passport has not been verified quite yet, there is suspicion that one of the attackers may have been a refugee who sought asylum in serbia earlier in october after passing through greece. this could have an implication on the european policy towards the refugees. hundreds of thousands of refugees fleeing syria and trying to come to europe. the interior minister has called meetings ofeu-level interior minister's. that should happen on friday.
response, the first from the french defense ministry was in airstrikes on sunday night. the airstrikes targeted to places in the so-called islamic state. event center and the other was a training center for terrorists. according to the defense ministry tonight, the targets have both been destroyed. one analyst we have been talking to is saying that the airstrikes might intensify in the next few weeks and months. the french and the u.s. defense ministers spoke on the phone friday night. they said they would increase their cooperation and the sharing of their intelligence. they also described these attacks as a turning point
covered last week was the astounding amount of transactions that took place. jack ma is coming in this week. behind the curtains, when it comes to things like that, is the payment system. i am joined by someone who can talk in depth about this. the copresident of mastercard for the asia-pacific region joins us. thanks for your time. we were talking during the break and you mentioned something about us moving to a world beyond cash. what does that mean? >> it means people do not have to rely on cash for their everyday transactions. it means people can be included in the financial services. a cash economy is not the most efficient economy. crime,tentimes causes tax evasion. none of these things are good for us.
i think what mastercard is looking for is a society beyond cash, a world beyond cash, where people can grow profitably, being financially included. we are looking for things like not only a can be payment device, but a device to receive payments. challenges inthe asia, southeast asia, parts of china, a lot of people are not part of banking. how do you get them involved in things like this? they certainly need a mobile phone at some point. how do you reach that? >> if you look at the world, it is still 85% cash. there is still a huge opportunity for electrification fication.oni
nowadays, it does not have to be your mobile device. it can be some other payment device. if you are a small merchant, it can also be a device where you receive payments. that is what mastercard is all about. we are looking towards new innovation and other technology. one more nation that to technology is china. they are opening up markets there is slowly for you. what exactly are you allowed and not allowed to do in china? >> we have a sizable business in china today. primarily the cross-border space. when travelers like yourself go to china, we serve you. and when chinese car horns -- cardholders go overseas, we also serve them in our networks.
david: so you can issue cards on shore. >> we do, but we are not able to process those transactions. that has to be done by a domestic player through a regulatory mandate. hopefully that is changing. david: when do you see that happening? what the timing is a little bit unclear, but soon. we hope the final regulation will be out soon. we would be able to implement the whole domestic switching on soil play that we were promised. david: at the end of next year? say. is hard to i do hope it is only one year away and not two or three or four or five. david: let's talk about risk. the level of cyberattacks have become much more sophisticated. how are you adapting to these attacks? >> it is a very good question. consumers do not want to make the trade-off between ease-of-use and security.
they want both. safety and security is a very important thing. we spend millions every day upgrading our technology and system. this is where global technology really matters. we spent a lot of investment and people resources into this area. let me give you an example. -- mandate around the world cardsandate is making much safer. biometrics is another area that can be used to protect information. david: final question. to me and a lot of people, these credit cards are all the same. i am sure you have spent lots of your time trying to make it different for distinguishing how different your card is from your competitors. what is different about mastercard? grexit the only way to
differentiate ourselves is through innovation, smarter products, smarter people. no one else has is our priceless promise to our consumers. offer where people can go to places like london or japan where some things, money can buy, but some things, money cannot buy. david: on that positive note, thank you for joining us. oft was the co-ceo mastercard joining us to discuss where we are going when it comes to global payments and such. that to you. angie: good to see that business in lightthere at apec of the events that happened over the weekend in paris. bloodshed, bullets, explosions now replaced by response, mourning, and resolve.
>> france is strong and even if it always stands back up again. nothing will be able to hit i t. brave,is solid, active, and it will triumph over barbarism. we, the german friends, we feel so close to you. we cry with you. we will fight with you against the ones that make so incomprehensible to you. my thoughts go out to the more than 120 people whose lives were taken and their families and relatives. let me show you that germany feels with you in your pain and grief. >> my message to the french [speakingsimple -- french].
we stand with you, united. >> we stand prepared and ready to provide whatever assistance the government and the people of france need to respond. france is our oldest ally. the french people have stood shoulder to shoulder with the united states time and again and we want to be very clear that we stand together with them in the fight against terrorism and extremism. world leaders condemning the paris attacks, promising whatever is necessary to combat terrorism. you are watching bloomberg special coverage of the attacks in paris and the aftermath. a recap of what we know so far. yvonne: the city is still stunned, shocked, and wounded by this attack, the deadliest attack since world war ii. we continue to see these makeshift morels spring up at many of these sites just a couple of days after these atrocities. the latest that we have been reporting on is these french
airstrikes in syria. 10 french fighter jets striking targets in syria. they did hit a command base, a training facility among other areas. france is the only european our conducting major combat operations over iraq and syria. and just officials have said that isis has claimed responsibility for the blasts in beirut and the downing of a russian passenger jet in egypt. in terms of the implications it will have on the ground and what is going to happen afterwards, we still need to see what happens. president francois hollande has said that this is an act of war. they are going to counter this in a merciless way. this as the manhunt continues in belgium as they search for that one suspect. a 26-year-old considered dangerous. as the investigation deepens, thank you so much for that.
rishaad: my name here in hong kong, and it is 2:00 a.m. in paris. wherever you are, this story dominates. the attacks on the french capital and the repercussions around the world. this is our special report," terror in paris." yvonne man has the latest on the developments. : french planes have attacked islamic state positions in syria. it is the group's headquarters in syria.