tv Trending Business Bloomberg November 15, 2015 8:00pm-10:01pm EST
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.
paybacks.they were the french capital is on high alert once again less than a year after the charlie hebdo attacks with its soldiers patrolling the streets in the metro. they are trying to figure out how coordinated teams of gunmen and suicide attackers evaded society. that's evaded security. the belgian connection from brussels becomes the focus of the hunt as police say many of the attackers have links with the hitting. two vehicles registered there were used in the attacks. -- a fleeing gunmen may have been stopped near the border. is the scene where these pictures are coming out live from the french capital. place de republique.
the vigil continues. people continuing to pay their respects to the deck. the city remains in shock after europe's worst terrorist atrocity in a decade. the volatility is having an effect on regional markets. juliet: it has not been a great start to the trading week here in the region. we just had the taiwan-singapore, coming in and joining in the selloff we are seeing around the region. malaysia is down 8/10 of 1%. singapore and taiwan are off by about 1%. japan is having one of the worst performances in the region. we have seen that be impacted as well. we're seeing a lot of selling. not quite the selloff we saw in the middle east yesterday.
the dubai market was down by more than 3.5%. least a little bit limited. here is the regional index. it is down by about 7/10 of 1%. every sector is lowered. we are seeing oil and gas weaken by about 1.3%. seeing the japanese yen and the swiss franc and the dollar and gold all arising. here is a picture of the yen at the moment. it is pretty flat there and that is more of a response to the expected gdp number holding at 122. a switch out of commodity-based currencies that you would expect. the aussie dollar continues to fall against the dollar. down by a third of 1% holding at 71. looking at the oil price, we are seeing a pickup in the price
because the attacks will signal concern about demand. the graphics have made a liar out of me -- looking at the oil price, it is rising by about a third of 1%. these attacks will fuel concern about supply. as we would expect, the gold price continuing to rise. the flight to safety. up by 7/10 of 1%. this is the story of the day. volatility is high. let's it over to paris. caroline connan is there for us. a shockwave across the whole of your. how different will paris be now? corey: that's "on the move" the mood -- is hard tohe mood gauge here at 2:00 a.m.
the special forces discovered the bloodbath with 89 people dead here at the bottom klein -- bataclan theater. i want to show you some of the attributes that people have an paying. -- have been paying. flowers. pray for paris. this is the message that everyone has been giving here. this is something that you can see all across the sites of the attacks. you can see hundreds of messages . flowers from all over the world. somean even see over here, flowers given by the united states. tribute to the
victims in paris. the state of emergency is still in place. we are still in the middle of three days of mourning. admit they come a french time, on monday there will be a moment of silence. monday will be a special day for parisians. this is the day when schools and -- people wills go back to the office and work and have the opportunity to share their grief with their colleagues and their classmates throughout the week. rishaad: what about the investigation? what do we know so far? there is more information that we learned about in the last hour. one house has been searched on agoay night, about an hour
in a neighborhood north of paris where one of the attacks took place. momentn headline at the from the investigation is the manhunt, an international manhunt where police have released a photo of one man who is believed to still be at large. it is up one of the attackers. he is 26 years old and born in brussels. he was controlled at the belgian border earlier on saturday however, at the time, he was not arrested because he was not a suspect at the time. this is a belgian connection. believeds brothers is to be one of the attackers. the other brother is currently in question in brussels. minister hasterior
met with his belgian counterpart in paris today. they have decided to reinforce cooperation between the french and belgian authorities. at least seven people are being questioned in brussels. this is where belgian -- it is the focus of the investigation at the moment. rishaad: thank you very much. -- on thank you for joining us this morning. first of all, this is clearly a security -- a massive security failure. they are relying on digital surveillance, is that perhaps the wrong route? >> you can have a strong but when aparatus
marauding terrorist attack occurs, it is very difficult to contain it. the main problem we are experiencing in france is that there have been several including the incident on the train from brussels to paris when an individual with weapons was stopped by u.s. servicemen. and now recently with the shootings in paris. all of the individuals have been on the periphery of the french security services, on the radar. of proof is often very difficult. unless you can actually prosecute someone you cannot detain them. there is a lot of bureaucracy involved. sometimes, that plays into the hands of the terrorists. rishaad: is this something that was done in the name of islamic state or was it instigated by this organization?
the management of savagery. the management of savagery is effectively the manifesto, the playbook of isis. it was originally for al qaeda but they turned it down as being too extreme. the management of savagery is a guide on how to commit vicious and barbarous attacks against muslims and non-muslims. it identifies countries, types of targets, going after economic and social targets. it has been something that isis has been implementing overtime. -- this isular different from past isis plots. this was coordinated. synchronized. mass casualty attack. often, the hallmark of al qaeda.
isis is now about -- borrowing it. other individuals involved. it could not have just been a bunch of lone wolves. the french president described this as an act of war. doesn't that legitimize what is really a ragtag band of fanatics? >> keep in mind that isis is effectively a terrorist organization, a criminal enterprise that uses oil proceeds, antiquities on the black market, and human trafficking to keep its lifestyle and existence. said that president this is a declaration of war. he made a bold statement and now it needs to be followed up with tangible action. airstrikes alone will not dismantle the isis infrastructure.
the reason why these attacks are escalating against the west is because isis feels emboldened. i do not leave the west have the appetite to really tackle isis is infrastructure -- isis' infrastructure on the ground. until those words are put into action, we could potentially see more plots in europe. rishaad: are you seeing -- are you saying that would have to be put on the ground? >> i don't see any alternatives. the airstrikes are not effective. the isis infrastructure remains intact. if it loses an individual, it replenishes them very quickly. doing nothing is also not a solution. the only way to dismantle the inside iraqby town and syria. look at the recent example of the operation in northern iraq. that resulted in them taking a
strategic town, occupying a vital road. that isis depends on and it has now been severed. these types of operations are critical. more of them need to be done. rishaad: thank you very much indeed for joining us from london from the asia-pacific foundation. just go to bloomberg business, it brings together the best of the bloomberg news. also on bloomberg.com, how the markets are reacting to this latest terror incident. we also have world leaders responding from turkey. we also have more coming on these attacks. -- people arens
rishaad: we're back with our special coverage from the events of friday night in paris. we have asian equities having a cautious start after the attacks. japan has also slipped into recession. let's get more on the market action. george, great of you to join us. how do these events really play out when you look at what is going on market wise? it is very tragic and the market is very somber and will be for several days.
most people i think will understand that there is a slowing global growth pulse and a slowing earning profile in the developing world. we are looking at the federal reserve lift off as well. a defensive start of the past few months would imply from many people's views. that is turning into a consensus. the terrible event do not help confidence at the margin in the short-term and markets have remained a little bit somber for a little bit longer. thosed: we also had terrible numbers out of japan as well. another recession, their second since prime minister shinzo abe took control. george: exactly. terrible numbers coming out of the third largest economy in the world, contracting is not a good thing. the consumption is nearly two thirds of their national accounts. the capital expenditures continue to miss on that part of the economy.
pragmatic andre structural reform -- aggressive structural reform will be stimulating for the foreseeable future. a very big mess and a disappointment and a function of that slowing trade momentum coming out of china as well. a bit of work cut out for the boj and the japanese government. you structural reform if can believe it is required and quickly. rishaad: they need to do some more structural reform. you mentioned china. that brings us nicely onto what is going on in australia with this commodities route to going on again. how much further do we go or have we hit rock-bottom? for a number of reasons. bulk commodities in general -- australia is a largest exporter of iron ore.
supply continues to expand and the curve continues to move to the right. the big companies continue to export that bulk commodity at a low price. that is not going to go away. that will continue. lowering bulk commodity prices. metals are more cyclical. that can have a short-term bounce. thatoint being structurally come there is no impetus for sustained mental rally. -- metal rally. we have not seen the bottom of energy for that matter. with the feds lift off very soon coming remember the strength of the u.s. dollar and the yen, commodity currencies -- gold, kiwi, canadian, we still see weakness there. weakness in commodity economies. the weakness --
rishaad: japan has entered a recession for the second time following a negative growth in the third quarter. let's go to jodi schneider who joins us from tokyo. what were some of the big contributors to this contraction? it was way worse than the calculations. somewhat worse than the calculations. business spending was way down. 1.3% in the quarter which was a very negative figure. the record holding, the record cash the companies have from good stock market returns are not being translated into investment in the economy and that was a big driver of the negative growth in the quarter. thatad: that is the thing
have people very concerned. some are saying that this could therefore be prolonged and not just be a one off. usi: economists are telling there are signs that things are picking up and there may be good gains in the fourth quarter that would make it a short recession. technically, we could come out of this in the fourth quarter. exports are looking good. if the u.s. and european economies continue to recover well and the export growth is good, this could be a short recession. the largest issue of business that it raises a question whether prime minister abbe and the bank of japan need to do more. rishaad: we have the boj policy meeting taking on later this week. the pressure is on the bank governor to do more. what are you hearing? say that theres
are factors in place for the boj to act. somber gdp report and the technical recession -- this could give them the amp the tests -- the impetus to further ease. his comments after the last policy meeting where the boj did theact, he says he thinks inflation trend is in the right place and they moved up the inflation target. that is the open question. there is certainly a large expectation that the boj will hold steady and not act even with the gdp numbers. rishaad: thank you for that. the gdp and the third quarter contracting a tense of 1%. let's look at some of the stories. richest man is going to shake up the country's telecommunications industry according to a fellow billionaire. expects his said he
you're watching bloomberg television. our special coverage continues. french war planes have bond targets in the northern syrian city, a stronghold of the islamic state group. friday'scials say attacks were ordered from syria. and these were paybacks. in a situation where we are attacked by the islamic state, it is quite correct that we respond.
we have done so in the past and again today because it is the headquarters of the islamic state. yvonne: french officials say that chief suspects in the paris killings were stopped afterwards by police near the belgian border and then released. 26-year-old said to be the man who drove the group to the concert hall. belgium is the early focus of the investigation. he was born there. one of his brothers is among the seven dead attackers. another brother is under arrest. leaders of america and russia talked 121 or more than half an hour at the g-20 sir mick -- summit in turkey. the paris attacks have dominated the agenda of the summit. rishaad: you are washing -- watching this extended coverage.
we're taking you to the live pictures coming out of the french capital. people are still holding vigil with candles and flowers. we are seeing a lot of volatility when it comes to some of the market action as well. you would expect that. let's get over now to the hong kong and china open as well. the nikkei volatility index up by about 11%. that is the order of the day. we are seeing a lot of volatility in the markets as you would expect. theshanghai compass it and therethe hang seng index, areout of the 50 in positive territory as we would expect. petro china shares are down by about 3% in the early session. the shanghai market also coming
under pressure. we saw chinese stocks lifted in hong kong and the asian share market. a six week low on friday. there is some positive move but generally, we are seeing weakness as we of already seen in the rest of the region. south korea down by about 1%. japan's week gdp number is also factoring in there. we are seeing -- what we are seeing is volatility and caution and markets. and not the big falls that we, out yesterday in the middle east. we are seeing investors flee to bonds. down.eld to bonds
as we've been talking about all morning, the flat -- the gold price continuing to rise by about 1% there holding at 1092. seeing that flat safe haven asset and volatility is incredibly high. rishaad: the attacks in paris dominated the first day of the gdp meeting taking place in turkey. ryan chilcote is there. if they stick to the schedule, day two should be very different for the g-20 countries. they should be talking about the topics they normally talk about like boosting growth, cutting unemployment, and what to do about the banks and climate change. that is after day one which was entirely consumed i conversations about paris and terrorism and syria and the migration crisis. witness the fact that the 'dinner -- where the
focus was on syria and terrorism. is that a distraction for the members of the g-20 who came here to discuss the global economy? i asked that question of the canadian prime minister and he said no, it is just focused minds. the g-20 leaders agreeing that they will do more collaboratively to work on cross order funding for terrorism, trying to shut that down. also, closing borders and strengthening borders. how a lot of talk about inequality in the world needs to be addressed because ultimately it is the lack of hope. many g-20 leaders have underscored that lack of hope may be fueling a lot of this terrorism. the most concrete or -- example or manifestation was the most talked about meeting of the day
was the meeting of the russian theiran president very first conversation since 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 assembly after which the russian president blind-sided the obama administration by beginning military intervention in syria. the united states called the meeting constructive. the u.s. president even said that russia's military intervention in syria, and military strikes there that are focused on isis were helpful. a real change of tone and tact from the obama administration. huge differences remain on the issue of terrorism and the issue of syria which many people believe are very linked. paris,ven the events in not least the russian president's support for andident a side -- asad how to go about the political process. there is a sense that today ball
consumed by the events in paris, was helpful. the first day was a helpful start to what was a very meaningful and needed discussion on the issues of the day. ryan chilcote, bloomberg news. g-20 meeting -- leaders there will be going to the apec meeting. hans, the things in paris change the entire tone. david: we're just getting started. we will have to wait and see how the agenda changes. that will be one of the key talking points. it was not on the original agenda. what has changed is security. if you are part of the delegates , and we have to make an important this thinking. if you are part of the summit, you do not feel it. b,get from point a to point
and the different venues, it is fairly easy. lanes across the major thoroughfares here in manila have been cordoned off for the the summit. if you are a resident here, you do feel the heightened security. the leaders will be meeting at the convention center. you will be seeing increased security preparations. there are a lot of numbers out there. i am thinking of an average -- between police men, military, emergency services, and fire services that have been deployed within the city to make sure things went loosely. as far as the attendees, we have heard from the foreign affairs ministers earlier that they do not affect -- expect the turn out to be affected by what happened in paris.
even before the attacks in paris took place, the president here and the president of indonesia had already begged off. 19-20 heads ofg state or economic leaders coming in between today and tomorrow. the chilean president is already in town. some others are already in. tomorrow is when the bulk of those leaders will come in. 15 of them are expected to arrive including president obama and the chinese president. point, will you feel any inconvenience if you are coming in with a delegation? they canceled hundreds of flights so the airport could accommodate a lot of the scheduled flights coming in. or part of the media covering this, it is fairly smooth so far. i am not sure if the residence
around these areas can say the same thing. rishaad: tell us a bit more about the security measures that are in place now. i will give you a good example. coming in, and we are standing here in the lobby of the hotel. you have to pass through several security checkpoints. driveis one when you through. there is a metal protector coming in. i don't know if you can see, but there is a lot of security here in the lobby. when it comes to metropolitan manila. summit wasme this hosted here in the philippines was about 20 years ago. it was held at the former military naval base. logistics were a lot less involved back them. compared to now. they have shut down schools and offices this week very -- this
week. the major thoroughfares are closed down to traffic. it is really in a lockdown. they have to strike a balance between trying to get these delegates feeling welcome as well as avoiding the feeling that manila is under a lockdown. if you have a license to carry a weapon or not, there is a gun ban. rishaad: thank you very much. they may also be discussing china's currency -- it is taking a big step towards global presence. the imf is suggesting it be included. it is a pretty powerful vote of confidence. >> it is high on the agenda. it is the strongest sign yet that getting the yen in is a significant thing.
currency has met the criteria of being freely usable and shows -- it is not fully convertible. it is meeting the criteria. whether the board members for the imf will share that opinion, we will have to wait until november 30. the u.s. has 20% of the voting rights on that board. it will be interesting to see how they feel. there are some expectations -- it is only reviewed every five years. this is now or never. if it gets the nod, it will be the first developing country's currency to make it into that basket. it is really significant. people are asking if it is purely political. tell me a little bit about what happens next. >> talking about it being political, on the other side of the point, there are political
implications because the u.s. and china have had diplomatic issues over activities in the south china sea. a u.s. warship has been sailing through and drawing a lot of anger from china. there are some suggestions that that will come looking things. at the g-20 meeting, the u.s. treasury secretary came out and needs theif the yuan criteria, the u.s. will be voting in support for its inclusion in the basket. in terms of what it means for anyyuan is itself -- outside move that we will see will be in the short-term and what traders will be wanting to see in the longer-term is great volatility in the yuan. we do not yet know how the pboc will manage that because they do still decide that. rishaad: heidi, thank you very
much indeed. ofwill continue our coverage terror in paris. that will continue after this break. we will see what happens next and what will be the french governments response in the longer-term. we have already heard them launching attacks on the i.s. capital. images -- the skyline of new york and people around the world are coming out andupport of the parisians the french people. ♪
thank you very much indeed for joining us. exactly a power performing economy in the first place. the attacks in paris can only have negative implications in the short-term. >> in the short-term, yes. these attacks in paris are negative however fundamentally, nothing has changed. i.s. is a known threat. this is an escalation but fundamentally, the threat remains and i think the solution needs to be found, not in europe and in the middle east. from an investor's point of view, i think there are other notably, the softness in the emerging markets which is going to impact europe. talk of courseof
about debt and the debt overhang that we have in these emerging markets right now. that leads to china and elsewhere. how does that play out? sure that debt is as important a metric -- i think countries are short on their balance sheets. they have less of a currency mismatch compared to 15-20 years ago. i think what is really wrong with emerging markets is their business model. in the last eight years, we have been in a trade or. every country has tried to export its way out of trouble. you cannot have every country eating an exporter. someone has to be an importer. one of the strongest dynamics has been the relationship between the u.s. and china. the u.s. has clearly become much more in sealer and self reliant in terms of production and energy and china has responded
to that. china has responded into kuwait. it has turned to its domestic consumer base and on the international front, it has sod to join or create new clubs. what happens to the emerging markets is that they are a link in the chain between the u.s. and china and both the u.s. and china are turning away from each other. i think it is quite a dire business model for the emerging markets. rishaad: when you talk about likely clubs, it is more that at the end of this month, we will have an announcement from the imf that we have the yuan joining. to other currencies to be -- become part of this sdr as it is called. bryan: it looks like it is a done deal. america has shown its support. has said it is compliant with all of the conditions. i think it is an eventuality and
it will happen. i don't know what the implications are for the currencies. if you internationalize a currency, you lose control of monetary policy in a sense. rishaad: what is occupying your attention? where you seeing positivity in -- where you are likely to see some growth and asset price movement in the right direction for you? bryan: we still like europe in terms of credit. we think that earnings will take a hit but on the other hand, european companies are still improving their balance sheets. they are deleveraging unlike elsewhere where companies are leveraging up, notably in the emerging markets. therein u.s. high-yield is opportunity. that opportunity is in the last three months, we have seen
spreads widen out to recession levels or close to recession levels. when that is clearly not the case in the u.s. there is an opportunity there that can be accessed by biting high-yield corporate debt and by buying bank debt which is something we have been accumulating over the months. bryan, thank you very much indeed for joining us. telling us about the investment opportunities and where they see those opportunities. we have loads more to come. you're watching a special report on the terror in paris. .e have the latest on that we will leave you with some of the images of people paying homage and keeping vigil after at least 130 people were killed on friday night and hundreds -- and hundreds injured. ♪
rishaad: -- >> france is strong. it always stands back up again. to hit itll be able even though grief is all around us. france is solid and brave and it will triumph over barbarism. merkel: we, your german friends, we will cry with you and fight for you. to the morego out than 120 people whose lives were taken and their families and relatives. let me assure you, germany feels with you in your grief and pain. >> my message to the french people is simple. we stand with you. united. president obama: we stand prepared and ready to provide whatever assistance at the government and the people of france needs to response.
is our oldest ally. the french people have stood shoulder to shoulder with the united states, time and again. we want to be clear that we stand together with them in the fight against terrorism and extremism. rishaad: president aland and other leaders -- president francois hollande promising to do whatever is needed to combat terrorism. london,d leaders -- in many thousands of people are posting support on social media. we are taking a look at some of the trends that we have seen on facebook and twitter. >> millions of people posting information on social media. the hashtags we have seen and the last few days include #parisattacks offering information. #four peopleo a
who were left homeless because of the attacks. are things that people have flocked to over the weekend to find information. we very quickly saw from a google chart that people would go and look for more information and then it falls away. i kept seeing people being marked safe in paris. >> this is something that facebook has rolled out. for the first time for a human disaster. it is a service that allows you to check in wherever you are safe. facebook will monitor, looking at where the last place was that you checked in, perhaps looking at places where you have been. it offers you the ability to say that you are safe. facebook is getting some
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terror attacks in raqqa were payback for military interventions. >> in a situation where we are attacked by the islamic state, it is right that we respond. we have done in the past, and that do so again today, because raqqa is the capital of the islamic state. brussels is the early focus of the hunt, as many attackers have linked the city -- links to the city. the fleeing gunmen may have been stopped by police in the belgian border but allowed to go. the terror attacks are dominating the agenda of the g-20 summit in turkey. russia, the u.s., and turkey talked one-on-one. syria was the main subject.
angela merkel said the refugees fling the conflict must not be blamed for what happened -- fleeing the conflict in syria must not be blamed for what happened. let's look at the market action. there is a cautious attitude. we are having a look, and we see some of these chinese brokerages, we've had a lot of things going on with them. juliet: let's look at some of the movers. we are seeing a lot of move rich -- movement from them. after friday. .s a race from 100% to 50% people are wanting to borrow into the market will only borrow what they have or to put up. files are coming through from
some of the energy players in hong kong. china is down by 2%. taiwan has come through. the travel warning into paris has seen major leisure companies fall heavily. is good to see a bright spot. there is a safe haven asset in australia. this is the picture in the region. there's not much apart from the gold stocks happening. the volatility is high. the futures index in the u.s. region.he a region markets are down in australia. estimates ind japan, contracting by .8%.
we are seeing a second recession under shinzo uabe. you can see all the markets in the region are following suit. today of safe haven assets. the yen, the dollar, gold, all of them are getting activity today. a shockwave through the city here. also, across the whole of europe. what is the since you're getting about how different paris will be? caroliine: paris wakes up very differently this morning. locals have been paying tribute to the victims. bataclan show you the
concert venue were 89 people where 89 people died. you can see tributes all over the sidewalk, some saying, "we are proud to be french, out to the parisian--proud to be parisian." many of these are for relations, showing that we should not mix terrorists and the muslim community in france, which is as huge as 5 million people. you can see some pictures of the victims have been put on the , for thomas,ing for natalie, we will not forget them. all of this solidarity and unity has been shown all across the city on different sites. among the cafes, among the public square. security has been reinforced. paris soldiers will be in
and the main cities across france by tuesday. ande's a state of panic anxiety among the french, for example, on the republic square, where there was a scene of panic after some screens were heard that screams-- after some screams were heard. tomorrow, just a few hours from now, the schools will reopen. the louvre will reopen. the eiffel tower will reopen with full security. that will be a very, very special start to the week for paris. what about law enforcement agencies. what are they saying about what happened? what do we know now about the investigation? headline ine main
the investigation is still this international manhunt. one of the terrorists is at large. he is a 26-year-old. he was born in brussels. at the time, abdeslam -- abdeslam was not arrested. abdeslamer of salah died in the attacks. another is being questioned in belgium. there are as many as seven people in custody in belgium.
rishaad: the killings will be dominating discussions for some time. they really took over the g-20 in turkey. it also has taken over the apec meeting in manila. has it changed the agenda? >> no official word yet. will be expected to change here at aipac. they're trying to find ways to boost trade. 21 economiesmies-- are expected to discuss global trade. post the paris attack, it is likely to change.
southeast asia, some of the bebers are said to recruitment ground, training members.or isis indonesia has had a long history of terrorist attacks of the past philippines, the in the southern part of the country, there's been a long-standing history of islamic extremism. these attacks in the capital of it on the've not seen scale, but it's happened before. the fear is the resumption of attacks in this part of the world. is that terrorist cells are asia may be linking together to be more effective. you can imagine, security will be foremost in the minds of apec
when they meet manila. -- in manila. rishaad: we are seeing images of a greeting there. this is going to be front and center, isn't it. how difficult was it for you to get to the venue? haslinda: this is the first time the philippines will be hosting the apec meeting in 20 years. acquino wouldn't want anything to happen. security has been tight. it is red alert, as far as manila is concerned. there are security offices.
there is a band of arms. we know that 18,000 military and police personnel have been deployed. special--lled for a acquino called for special security meeting. naturally, posted the attacks in paris, security has become quite front and center in manila. rishaad: thanks for that, our southeast asia correspondent, joining us. there are fears that this will only strengthen the appeal to recruit new recruits. more on that when we return.
rishaad: welcome back to our special coverage on the terror on the french capital. is an honorary fellow of the university of melbourne, focusing on religion in this conflict. with theset, dennis murderous actions, what groups are responsible? this group--e got denis: you've got the scoop on the iraqi side.---- this group on the iraqi side. there is a disenfranchisement of the sunni population. that's on the one side.
the other side, that has been neglected, is the islamic theological motivation. a jihadistrom perspective that aspires to pursuing the end of time. it is important in devising a strategy. rishaad: the thing is, there have been immediate calls for revenge, for more attacks. we've seen the french air force attacked positions in raqqa. there are calls for people to get boots on the ground. you're saying that would ultimately end up being counterproductive? in a rockis: what we learned is that we struggled to differentiate between the different tribes, sects, religions.
we get sucked in, and we are played. this has to be led and coordinated by local troops, who understand the local lay of the land. western troops would not understand the difference between the sufi, the sunni, the shia. we align ourselves with different groups we do not understand. what i agree with is the continuation of the existing military campaign. containing the spread of islamic state is what is needed. allowing theis kurds and the iraqi government to push forward, to make sure there is some effort to defeat them on the ground. we cannot do that. we can only support others doing that. rishaad: it is hardly containment if we have events in paris happening. denis: these events will --
conducive, it is enticing to a lot of people. regardless of the military success on the ground, or frankly, a lot of failures, is the ideology that has been appealing to a lot of people. they are the ones we have to be wary of. that has to be tackled differently. that has to be tackled by the arab and muslim communities, shaping the counter-message being sent. --shaad: you mentioned
what does this have to do with saudi arabia? while there's been a lot of criticism for russia's involvement, the fact is, since they become involved, there has .een clarity you can tell who are the players, who are the ones we can align with and who are the ones we cannot. saudi arabia is a player. they have a geopolitical interest in the region and the coreligionists interest. that has to be brought into the open. through this process, is being considered. --it is being considered. rishaad: and being demystified. what about refugees in europe? some are saying, is a good thing. others are saying, hang on, throw open the borders, that sounds counterintuitive.
that will make things worse in syria and the long-term? denis: there is one camp that is the security side. in ones risk of bringing million refugees for family reunions. the other side is the humanitarian side. "we need to support them in one way or another." you canargue meet both by understanding the fundamental issues that drove the refugees into europe as opposed to the previous years. one of them is that the international community has not been able to provide necessary resources to the host countries, jordan, lebanon, turkey, who are hosting the vast millions of refugees. the support has been cut in half this year alone. people living in communities and jordan, they are getting, as individuals, $14 a month as
support. refugees areer the saying they cannot survive with dignity or hope. they look for other solutions. that is why a better solution for them and the security of europe is to ensure that agencies involved in providing humanitarian assistance, education, food, shelter, in those countries, are adequately financed. at the moment, only 45% of this year's appeal has been funded. that is in part contributing to the exodus. rishaad: thank you for that. i will play what we have coming up next. newsacebook helped spread on friday night. over the weekend as well. friends and loved ones sort of that information about those in paris. ♪
the french, the israelis, the jordanians, the egyptians. we use local intelligence. everything to see what was there in the past, what we can anticipate in the future, what steps can be taken. it is not possible to have two coalitions in this region of the world. is.need really to kill the we need to be there not just with the russians, we need to be with the americans. israel. but happened in france on friday can happen in every other country. logically, it would encourage
people to postpone any activity. it would push back the idea of increasing rates. increased uncertainty, the level of activity in europe, indeed, western europe, has improved. not so much in france, but certainly in germany, italy, spain. spain has probably rebounded. germany is in the strongest position. italy has started to improve. these events are not good news for the western european recovery. millions have turned to the site of social media to get information about what happened in the french capital. we take a look at the trends we have seen so far. one of the hashtags, paris attacks, and many others, we also are seeing something quite new, a development on facebook.
this is a safety check, which sends a message if you are a .acebook user it will identify if you're in paris and send a message, allowing you to reply and send out a message to your facebook saying that you are safe. it allows friends to get a notification. you get a notification saying you're safe. there is criticism. rishaad: it has been useful for before. rosalind: yes, for natural disasters. the bowler wondering why this hasn't been used for other terrorist attacks-- people are wondering why this hasn't happened for terrorist attacks. they chose to activate it in
paris come because of the activity -- in paris because of the activity on facebook. rishaad: there are some people who have marked others as safe. they seen them and said, well, they are safe. rosalind: we will see how facebook decides to roll out and further develop this. is another symbol, and eiffel tower in a circle. it has been taken up as a symbol of solidarity and support. piece for paris has been shared ,000 times alone. rishaad: we will take a break and look more into this as our coverage of pierce continues. -- of pierce continues. paris continues.
we have done so again, today. aqqa is headquarters of the islamic state. rishaad: the key suspect of the paris killings was stopped by police knew the belgian border. salah was born in belgium. his brothers were among those dead. of russia and america talked one-on-one for over now are. they say syria was the main subject. refugeesrkel said the fleeing syria must not be blamed for the attacks in paris. the attacks to dominate the first day of the g-20 meeting in turkey. is with us.e
were supposed to talk about bread and butter issues, like boosting growth, cutting unemployment, what to do about the banks. they plan on tackling climate change. that is after day one, which was d withly consume conversations about paris, terrorists, syria, the migration crisis. agenda wasl paris, terrorists, iand syria. distraction?a i asked the canadian prime minister, and he said no. g-20other opinions, the leaders agreed able to shut down terrorism.
even a lot of talk about how need to address this, because it is the lack of hope many g-20 leaders have underscored, including to their host, the turkish president, that might be tooling -- feeling the terrorism. the most talked about conversation or meeting of the day was the meeting of the russian and american presidents, their first conversation since the russian jet exploded above the sinai peninsula, killing 200 russians. sitdown meeting since they met at the general assembly, after which, the russian president blind-sided the obama administration by beginning intervention in syria. they call the meeting constructive, even saying that russia's military intervention in syria and strikes there that are focused on isis were helpful , a real change of tone and tact
from the obama administration. differences remain on the issue of terrorism and syria, which eve are linked given the events in paris, not the least, the russian president's support for president assad. there is a sense that today, we'll consumed-- while consumed with events that took place in paris, was helpful. it was a helpful start to what was a very meaningful and needed discussion on issues of the day. ryan chilcote, bloomberg news. volatilitye market in hong kong and japan is rising today as investors shy away from risky assets in the week of the attacks--wake of the attacks. juliet: not much buying is
happening. i want to show you impact to the airline players. these attacks are causing fears that this is going to curb tours and to france. china airlines is listed as coming under pressure. hong kong is weaker. fellinly, the airlines quite a bit. couple warnings from both australia and taiwan. with the are concerned citizens traveling to paris and the surrounding areas. lyon travel and phoenix tors in taiwan, two major companies, are falling quite heavily. flight centre is weaker by 2%. across the range, it is a risk
of appetite. falls are coming through for all major industries. in hong kong, there's a fall, not just in relation to the fallout from the attacks in paris. we are seeing the falls from the brokerage firms, as china moves to leverage the equity market. we are seeing margin requirements raised to 100% from 50%. down--ia is fx 200 is afx 200 is down. .apan went down by 1% playing into the region was the weaker than expected third-quarter gdp number. japan isas expected, back in recession, the second time since shinzo of a became-- shinzo abe became prime
minister. 1%.next, this is a tense of the contraction. economists were looking for only 0.2%. this is bad news, is it not? nick: if you look at the numbers, with got a 0.8% decline. in other words, it was all about cutting back in. that is hardly a thing to go out and panic about. . -- two quarters of a decline in gdp. you got to remind yourself that you can buy a piece of-- can't buy a piece of the gdp.
rishaad: went to those profits translate into proper investments, which in turn translate into solid gdp numbers? numbers aree gdp for me, neither here nor there. has aing on is japan labor market driving up wages, and increased wages and increased job security should drive up retail spending. that is one of the things we're seeing at the moment. conditions are good inside japan. even the global trade, which has us, a massive drag on is worth taking a look at. rishaad: your being very positive. positive.being very some are suggesting there will be an increased stimulus program. do they need to?
nicholas: absolutely they don't need to. excluding energy, prices are up on% your on your.-- year year. people are complaining the prices are moving up too much. you've got to remember, shoppers have not seen prices go up in 20 years. this unsettled people. that is worth considering in the run-up to the house election in july. i cannot imagine prime minister put pressure to on the bank of japan to increase monetary stimulus. what is needed is more fiscal stimulus. that is another thing. rishaad: what about structural reforms? there has always been pressure on mr. abe to do more. rishaadnicholas: absolutely.
there's a certain amount of frustration that mr. abe has spent too much time dealing with the geopolitical situation. that has meant there was not enough time in parliament for moving ahead. structural reforms are moving ahead. you have to remember, the person we most associate with supply-side reforms is reagan, and the person who got to take care of credit for it was clinton. these things take time. a lot of things have been pushed through parliament. is got changes to corporate government, changes to agriculture. there is liberalization of the power sector, and so on. there's always a belief in the stock market3 --market. there's a belief the government has things to do to help their.
those who did something so incomprehensible. my thoughts go out to the 120 people whose lives were taken and his families and relatives -- and families and relatives. obama: we stand ready and prepared to provide whatever assistance 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. we want to be clear that we stand together with them in the fight against terrorism and extremism. were leaders they're condemning the paris attacks, promising whatever is necessary to combat terrorism. this is a french council general in hong kong. thank you free much for joining us--very much for joining us.
your boss children's newspapers to look at-- you brought us children's newspapers to look at, why? berti: the french newspapers have prepared special editions. rishaad: so what are they saying? what have they told the children? they are talking about what should be done. it is important you do not discriminate in your community. is a message of peace and solidarity. fight makes us act cruel.
bes morning, we have to together, we have to discriminate terrorists from other communities. those in these communities are the first victims of violence. rishaad: a survey came out saying the number one biggest fear that french people have is unemployment and number two is what came to pass a few hours later. among them, they ofe highest level vigilance in france. we are vigilant of these attacks. rishaad: as consul general, you
are up is a native of the french government here in hong kong. what are the instructions you have got from paris? the french secure community. we acted immediately with the agencies in hong kong. they responded very quickly, .fficiently, to ensure rishaad: it is a big group. eric berti: we have 80,000 french in hong kong. places.a school in four --have a all the communities have been taking care of. rishaad: the danger is a backlash against the muslim community in france. that is something that actually islamic state wants to happen, does it not?
it would radicalize more people in the group. we have struck in syria, and of course, we have to think of war. but in france, we have other communities, and this will divide people, to break society, to create difficulty between communities. this will encourage violence. what we want to do is to have more dialogue. prevent this violence which has nothing to do with them, nothing to do with god. rishaad: it should be mentioned that there's a lot of foreign preaching thee,
you must be in touch with other ambassadors. is the message in paris to be vigilant, or is this not seen as an area of the world which you are concerned about having french citizens coming under attack? rishaad: obviously, china, hong kong, these are cities were violence is a concern. ecuree trying to be s and have very good protection. we have to be vigilant. you never know what can happen. we must be a very -- always, cautious. rishaad: thank you. eric berti: thank you very much.
♪ they're standing between two restaurants hit in the friday night attacks. people have come to pay their respects. there are a lot of people out. it is somber. it is incredibly quiet. you can almost hear a pin drop. are alsoar, there cafes and restaurants where people are going to drink coffee and have meals with their friends. there is determination to continue with life as much as they can. >> we are not afraid. no. we want to go back to life as
normal. >> i've lived in france for 23 years. the mood is very somber. people are resilient. they are determined not to let this get them down. there's an expression little kids use when they get beat up say somethingy not evens, "i'm afraid." tom: there is no unity and defiance. unity andunity and defiance. rishaad: this is the presence of a eurasia group that is part of riskf the largest assessment agencies. phillips we will be
angie: it is 4:00 a.m. in paris. it will not be a league like any other in paris. what it all means for the world. ♪ how did the gunman and made the police and launched their attacks and one of the most security conscious cities? less than a year after charlie hebdo, parents in stock. whats on the street after
is being called an act of war. the belgian connection, the links to brussels. highlighting once again, that countries links to extremism. ,'m angie lau with rashad markets around the region are awayng as investors shy from risky assets. juliet has been following the markets. how bad is the damage? juliette: fortunately it is not quite the follow-up in the middle eastern markets when they opened. they were the first to react. as you can see, we are seeing failing across the region. japan's nikkei 225 when on the lunch break down by 1%. also hurt by weak economic data. ,,sewhere, we are seeing particularly, a lot of those terrorism stocks. the airlines under pressure, also a number of operators.