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tv   Asia Edge  Bloomberg  November 15, 2015 10:00pm-11:01pm EST

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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. another thing hurting sentiment
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in the region is new brokerage rules coming through from china. officials are tidying market -- margin debts. we are seeing brokerage firms into hong kong and shanghai coming under pressure. certainly some moves via 30's to really try and ensure we don't see what we saw in the summer due to the $5 trillion equity route. elsewhere, sentiment following through from the terror in paris, hurting every sector in the region. markd the original ranch -- regional benchmark index down. gold place -- price is holding. a littleese yen also bit of a boost. it has been rising as well.
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currently holding at 122.47. investors staying away from equities today. rishaad: let's look at the latest developments following the paris attacks. french warplanes are targeting the province of raqqa. friday's attacks were ordered from syria in paris. they say was payback for that military interventions in the middle east. french officials say key suspects in these killings were stopping at the belgian border, but allowed to go. 26-year-old salah abdeslam is said to be the one who drove them to the bataclan. he was born in brussels. one of his brothers is among the seven that attackers and another brother is under arrest. dominateds have proceedings of the g-20 in
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turkey. the leaders of america and russia taking more than half an , andto talk one-on-one aides say syria was the main subject. the first meeting since president clinton surprised the west by sending his own warplanes into syria. putinesident surprise the west by sending in his own warplanes into syria. bring me up to speed with what is happening there. this is still an international manhunt, we are talking about at the moment in paris. this man, salah abdeslam born inrs old, brussels, the object of an international manhunt. the police are missing -- looking for him. he's probably the world's most wanted man at the moment, believed to be one of the
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attackers responsible, are responsible for the attacks. one of his brothers was also one of the attackers, believed to be a streetside bomber. mohammed, iser, believed to be questioned and belgium. that is what we are talking about tonight. the belgian connection. the focus of the investigation is moving to belgium. two of the rental cars involved in the attack had belgian license plates. salah abdeslam is believed to have been in control at the belgian border. he was not arrested because he was not a suspect at the time. last night, the dirt tells us that concerns the attack originated in syria and has a terror-based network in belgium. rishaad: the thing is, how will this change paris?how this
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transit -- tragedy manifests itself when people go to work later on today? it is after 4:00 a.m. here in paris. in about four hours, schools reopened. hours after that, museums will reopen, the eiffel tower will reopen. everything has been closed all weekend, and parisians will wake up in a few hours to a very different world, a very different city. thatd me, all the flowers have been put outside the bataclan concert venue where 89 people died on site. this is a different start to the week for parisians, who will go back to work him a go back to school today in a totally different environment. the state of emergency has been declared. it may be extended for three months by president
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hollande. he will gather the parliament in a special congress in versailles to decide the state of emergency. rishaad: tell me about what happens next politically speaking. of course, the refugee crisis in europe is front and center. of course, the refugee crisis will be in question. germany, other countries have been welcoming hundreds of thousands of refugees, including from syria, after the war. -- according to greek officials, this is one of the attackers, could have been a refugee who arrived from islands increase -- in greece.
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to be concerned. the syrian passport that was found next to the body of one of the attackers at the stadium has not been totally verified at the moment, but of course this will be at the center of the next political discussions in europe. the interior minister says he wants to have another meeting of the interior ministers on friday. this will probably be a very important meeting to decide on the future of the refugee response. rishaad: thank you very much. angie: let's get some regional reaction to the paris attacks now. let's go to our southeast asia correspondent, haslinda amin in manila where the security alert has been raised to red. what is the latest? you said it, red
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alert. the highest level of security in manila. the president himself, called for security meeting to ensure that everything is in place, that all emergency circumstances will be dell with appropriately. we know 18,000 military and police personnel have been deployed. they are not leaving anything to chance. the leaders from aipac economies will be arriving on. thursday .that account for 30% of global trade . security will be key. the eurasia group to put everything in perspective.-- what is the appropriate rea -- response? reporter: syria itself has been an incredibly severe -- slippery slope and everyone recognizes that. but it has also been not so been tryingey have
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to ensure every time they escalate, they don't escalate noh, the reality is there is on the ground for the americans to work with in syria. goingon't believe it is to make life better because he's responsible for killing the river -- refugees to begin with. while the u.s. has nominally said we want to distresses, how do you actually do that is -- unless he will put tens of thousands of troops on the ground, which no one supports the you are going to see, appropriate response is the french just did 20 bombs against an isa stronghold. they said it was a massive attack. it's more bombing. i'm sure there will be more. enough isbut not being done, that raises the risk of more attacks from isis. but now? -- what now? fromisis is very different
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putting troops on the ground. you have enormous numbers of disenfranchised, mostly young men. they have no economic sense of being able to improve themselves. oil prices are near $40 right now. you had a war in syria for five years. they have been leaving the country because of a side -- assad. refugees into of europe. none of this will get resolved by the americans destroying isis on the ground. i think there is a necessity of looking at root causes, some of which we can't do anything about. the one thing i think americans in french need to pay more attention to is allies in the region, the gulf states, who have tolerated the product civilization -- process radicals we.
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need them cutting off the radical clerics who have been tolerated within their own countries. there's a lot of support for that conservative religion, and giving the ideology something for the kids to join arms with. the state of religions he has been expanded to three months. that shows there is still imminent threat. ian: of course it does. this is christmas season. france was just starting to improve economically. this is a hit they cannot afford. there is no way he would do that and open himself up to weakness. this implies that they believe, or they know with some certainty, that they are able to stop significant additional threats. france is the logical place you are going to see not 19/11, but many. they had the largest percentage of muslim population in all of europe. they have done the most directly to go after radical islam in
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north africa, libya, mali, in the middle east. you put those things together, clearly there is going to be vulnerability. after charlie hebdo, we had 6 million french on this reads, demonstrating ends selling -- and showing solidarity. now you have panicking and a three-month state of emergency. radically different risk wants. haslinda: on the impact on the migrant crisis in europe. sad, even though it looked like there is only one potential refugee in the group, everyone in europe thinks you have to do something radical to stop these people from coming in. they are not willing to differentiate. the polish government saying, we are not going to abide by the agreement to resettle the refugees unless we had complete security guarantees. effectively going back on the
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agreement from the germans. angela merkel is in a lot of trouble. you will see a significant populist backlash. haslinda: ian bremmer with inside on the attacks in paris. of course, security remains tight in manila as we await the arrival of aipac leaders. .ngie: husband alive thank you for that -- haslinda amin live in manila. our coverage continues after the break. ♪
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we are trying to see if
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there are any attacks planned for the future and in doing that we are also discussing it with all of our allies, the french, the british, israelis. also using local intelligence. new york city police department. aa, fbi, everything, this is recall to see what was there, what was there in the past, what we can anticipate in the future. >> i think we needed a coalition there. it is not possible to have two coalitions in this region of the world. kill thed really to islamic state's there, we have to be together. not only wait the americans, but with the russians. theave to be with t is aground, because it war. what happened in france on friday can happen in every other european country.
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angie: lawmakers reacting to the terror attacks in paris. has entered recession for the second time following negative growth in the third quarter. let's bring in economy editor jodi schneider from tokyo. butler some of the big contributors to this contraction? reporter: business investment was a large one. it was down 1.3%. that was even more than had been anticipated. that is showing that companies are not spending, and the economy is stockpiled. record stockpiles of cash that they have gained from stock market gains. it's a real concern, especially since prime minister abe has made business investment one of the key points he wants to see, one of his key goals for recovering the economy. is, can wething
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expect this to be prolonged for japan? reporter: probably not. there is good signs. first of all, a lot of economists think that science had already been pointing upward so thatfourth quarter, could make it a short recession. also interesting that business inventories, stockpiles companies have in warehouses and elsewhere, were somewhat depleted in this quarter. that hurt gdp for the third quarter. that may help for the fourth quarter, if it shows that they are using up the stockpile. and they will need to increase production. economists think that is a pretty good find, and things like exports, in the u.s. and european economies do pretty well our continued the recovery, that is a good sign for japan. of course, china and the effects of continued slowdown in china will weigh heavily on japan as well.
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rishaad: angie: jodi schneider live from tokyo. thank you for that. continues as we terror,n the focus on continuing after the short break. stay with us. ♪
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the attacks and paris
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dominating the first day of the g-20 talks in turkey. we were sent this from anatolia. if they stick to the schedule on day two, it should be different for the g-20 countries. they are supposed to talk about bread and butter issues that they normally focus on, like boosting growth, cutting unemployment, what to do about the banks. even climate change. that is after day one which was consumed by conversations about about terrorism, that syria, and about the migration crisis. the leaders dinner was the last event of the evening. talk was about paris, and syria and terrorism. is that a dissection for the members of the g-20 who came here by and large to discuss the global economy? i asked that of the canadian
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prime minister, and he told me no. in fact it has just focused. some evidence of that we got today. the g-20 agreeing they would do more collaboratively to work on cross-border funding for terrorism, trying to shut it down. also, closing borders or strengthening borders, and a lot of talk about how inequality in the world needs to be addressed, because ultimately it is a lack hadope many g-20 leaders underscored, including the turkish president, that might be fueling a lot of the terrorism. perhaps the most concrete example or manifestation of the focus was the most talked about conversation are meeting of the day, the meeting of the russian and american presidents. the first conversations since the russian jet exploded above the sky in the sinai peninsula, killing more than 200 russian. s. the russian president blind-sided the obama
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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, the military strikes, focused on isis, was helpful. real change of tone from the obama administration, huge differences of course, remain on the issue of terrorism and syria, which many people believe are linked, given the events in paris. not least the russian president support for president assad, and how to go about a political process. but there is a sense that today, while 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. bloomberg news, anatolia. did turn tony
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social media for information as well. facebook rolled out a feature that was both welcomed and criticized. rishaad: they have done this before. no really when there is a disaster, people get themselves safe. it is facebook's safety check feature. they have used different natural disasters, typhoons, storms. but paris was the first time they spoke activated it for a human disaster. you get a notification if you're in the paris area, this base that thinks you are in the area, and then you can check in and you get a posting on your facebook page saying you are safe. your friends will also get a notification saying you are safe. this was welcomed and many people said it was a great feature, but others criticized it saying what about other tragedies and disasters? as ithuman disasters were. facebook replied, saying it is is still int
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development. they are still rolling it out. it was activated in paris because it saw a lot of activity on facebook as events unfolded, and decided it was needed. from now on it will continue to roll out the safety check feature. of course, the question is, who decides? what kind of disaster is big enough for it to be implemented? angie: emergency services in other nations are thinking of using this technology, it is not just facebook. reporter: that's right, but someone has to make the decision. angie: thank you so much for that. rishaad: terror in paris coverage continues after this very short break. ♪ buddy- nice place, nice car what happened?
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what's my credit score? your credit score is 650. that's magic! no, that's credit you get so much more than a free credit score so do more with your score at credit havead: french planes bombed islamic state. uck targets. >> 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 we have done so again today. it is the headquarters of the
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islamic state. they include 26-year-old, said to be the man who drove the gang to the bataclan concert hall. one of his brothers is among the seven dead. another brother is under arrest. rishaad: the leaders of america and russia talk 121 and over -- talk 1-1 for over an hour. angie: asian stocks are falling today in the wake of the attack. has been watching all of the action. investors are shying away from risk.
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atiette: let's take a look the nikkei 225 as it comes back online. japan asdata out of well today. third quarter gdp fell. japan is technically back in another recession. the shanghai composite down by half of 1%. and mixed game -- a mixed game of things. jakarta down by 1%. hong kong down by 1.7%. there has been a pickup in china resources, and lenovo group. down.tralia, the asx 200 we have seen a lot of energy and mining players coming under pressure apart from gold players.
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there has been a slide to safety in gold. let's have a look at some of the major stocks we are watching. mainly in the industrial and tourism space. the paris terror attacks could traveling hastop impacted airline stocks. certainly leading the decline in that space. china airlines also listed, coming under pressure. korean air down more than 2.5%. -- we are seeing japan airlines fall today as well. there have been travel warnings from a number of countries. taiwan and is trillion urging their -- and australia urging their citizens to avoid any unnecessary travel.
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they have seen their share price, under pressure following the warning from the taiwanese government. let's have a look at where we into,eing investors move and those are the safe haven assets. we have seen the japanese yen strengthen today. against theover .1% dollar. quite a bit of fluctuation today due to the disappointing data out of japan, the third-quarter gdp numbers. it was strengthening and then falling. the yen is still being seen as a safe haven. 122.44. the oil price is a little bit higher, holding at $41 at the moment. angie: we are watching closely the market reaction to those paris terror attacks.
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hard to react because we know this is when terrorism is most effective. >> absolutely. that is why it is called terrorism, it creates terror and shock. markets are trying to work out what that means. they are as confused as the rest of us are. rishaad: what do you do in a situation like this? reactionthe knee-jerk -- gold tends to do quite well. the bigger question, what happens next? what we are all doing is trying to work out, is this just want in a long series of atrocities we are seeing just this year alone question work -- this year alone?
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-- i thinksomething there is a possibility that this will mean something more. on friday, france closed the borders. in reality, it did not close the borders because europe is so open. is that sustainable? some country starting to open their border controls because of the refugee issue. on one hand, we may see tighter border controls. on the other hand, we may's -- we may need to see improved spending on military -- on border services. europe has a choice to make. if they will go down that particular road, it will take a lot more spending.
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angie: a lot more spending and in terms of the fundamental changes as well, possibly politically, does this trigger more support for right-wing politicians like marine le pen? michael: the opinion polls we that theysuggested were doing much better. rishaad: there was a poll on friday morning saying it was the number one concern after unemployment for french people, the risk of terrorism. michael: this is where they converge together. pass, 2017,come to we know what the policy is on the euro, for example. we have a huge potential impact. ashaad: even talks about
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brexit, grexit, and prexit. michael: that is one of the reasons why the market is taking a step back. what are the implications? out,ve to look further very difficult to tell what the implications are. angie: help us think it out. military intervention, more global cooperation, possibly in light of that, more right-wing governments or perhaps a grexit. what could be part of the fallout? michael: if you think of individual sectors, tourism is going to be hit. if you do have greater border controls, you will see a slowdown in overall trade and travel. moving around europe will be
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much more complicated. i've a member being stopped at every national frontier. -- i remember being stopped at every national frontier. on one hand, you could have a slowdown in economic growth. on the other hand, you could have much more government spending on security and military items, which boosts the economy. this could be very negative to the euro. ironically, that could help exporters. there are winners and losers within this, a lot of moving parts. angie: either way, it is a new day. a lot to think about. let's check in on some other headlines around the world. more than 2000 rescue workers are searching for people still missing after a landslide in china. tons of mud and rock buried homes in a village on friday night.
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the landslide followed several days of heavy rain. more than 50 people have been arrested after violent antigovernment protests in seoul . police needed water cannons. 70,000 people joined saturday's event protesting her plans to -- the main opposition party criticized what it called a violent police response. myanmar's president has promised a smooth transition of power -- hethe overwhelming said he would guarantee the handover would be systematic and calm. government must deal with
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rising ethnic tension. china's currency taking a big step toward becoming a player on the global stage. the imf recommending the yuan be included in the basket of reserve currency. it just needs top level approval now. this is a huge vote of confidence. >> this is a decision in the home stretch. that goes to a vote to the imf executive board. a lot of expectation it will go through. it only gets reviewed every five years and there has been campaigning, during a number of financial and currency -- doing
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a number of financial and currency reforms. there could be some sort of political wrangling. the u.s. has 17% of the voting power. there were some concerns that diplomatic issues that arose over the south china sea. sayinga g-20, jack lew if the yuan meets its criteria, the u.s. will support its inclusion into the basket. it depends on who you talk to. any movement in the upside of the yuan would be a knee-jerk reaction. traders want to see greater volatility. tightlying ban is still managed. on the other hand, this move could result in inflows into chinese assets.
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that would be enormous. overall, the sentiment is at the very least, a vote of encouragement for chinese policymakers, this is a reform -- a reward for the reforms you have put through so far. beijing has a little bit more time to get through some of these financial reforms. much for that. rishaad: we have to take a break. special coverage of paris continues. we will leave you with some of these images of people grieving on the streets of the french capital. ♪
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>> france is strong and it
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always stands back up again. nothing will be able to hit it even though grief is all around us. france is brave and it will try up over barbarism. >> we feel so close to you. we cry with you and we will fight with you. my thoughts go out to the more more than 100 people whose lives were taken. in yourfeels with you pain and grief. >> we stand prepared and ready 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 stand together with them in our fight against terrorism and extremism.
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rishaad: world leaders condemning those paris attacks and promising whatever is necessary to combat terrorism. it is terror once again making the headlines. angie: is there a threat here in asia and how real is it? the former cia chief representative of for china. we know of the leaders, the chinese problem -- it is an internal problem. could there be external forces encouraged to participate in china? >> absolutely. this is a situation where homegrown terrorist has come back from syria, come back from training to be able to infiltrate and carry out an attack. this is something the chinese
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security services are worried about. they have been worried dating back to post 9/11 and al qaeda trading in afghanistan. and certainly now with chinese muslims having gone off to afghanistan and to syria. as this overall terrorist problem -- southeast asia could be on the receiving end of this type of terror. rishaad: how much -- you have to identify these people. if this blatant security failure -- is there too much of an emphasis on digital surveillance? randal: that is a great question. certainly, the terrorist groups have shown a tremendous ability to use social media and other forms of commercially available
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technology to carry out their communications and do it in an encrypted way, which lends itself to trying to track that technically. you cannot replace physical surveillance and the type of human intelligence that will get you inside the command and control and the mindset of terror cells and tell you from the inside what these folks are thinking. that is why you are hearing a lot of folks talk about how security and intelligence budgets will have to increase because human intelligence is expensive and it is painful and something that you have to invest in for the long term. watch for do you keep somebody that was described as a nice neighbor, friendly to all, just three years ago and identified as one of the terrorists today? randal: that is the heart of the problem. it is very difficult.
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the fbi director came out yesterday in the u.s. and commented about, as of the paris attacks, close to 1000 active investigations which likely means the aunt just technical -- beyond just technical. this type of situation is playing out elsewhere undoubtedly. manpower intensive, resource intensive, one of the more difficult fights law enforcement services have had. mean we have this to get boots on the ground in syria and iraq once again? would that work? you cannot bomb an idea, can you? randal: that is the heart of it. boots on the ground inevitably is going to happen. the response that france has taken, that is where the u.s. is heading.
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that is not the total solution. frank lee, this is a fight within islam -- frankly, this is a flight within islam, and until more moderate islam takes on the fight, islam sorts itself out, this type of threat we are under is not going to go away. angie: from an intelligence perspective and beyond of graphical philosophical question, can you filter out the threat within the migrant wave coming from syria into europe into north america? is a veryat difficult thing. the syrian migration taking place obviously for humanitarian reasons, people all over the world are heartbroken at what is happening. the instant response has been
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that they will carry out security checks. the problem is, if there are no databases to pull from or boots on the ground or resources in syria, how can you carry out a meaningful background check to know who you are dealing with? the only way you get around that is by having the resources on the ground to be able to do a meaningful check and frankly, nobody is in a position to do that right now. in the near term, there will have to be an increase in human intelligence and also more of an unleashing on the digital side for communications, things that will allow you to check on previous communication by folks, whether they have cell phones or laptops. or you can check digitally, where folks have mitigated in the past. communicateds have in the past.
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angie: are terror in paris terrore continues -- our in paris coverage continues after a short break. ♪
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rishaad: the world was quick to show solidarity. the french to tokyo, flag. candles in moscow. rio de janeiro took on the lighting as well. the french community in hong kong has responded to the attacks. we are very much vigilant.
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rishaad: you are the representative of the french government here in hong kong. what are the instructions you are getting from paris? all the french community here. they responded very quickly and efficiently to ensure -- rishaad: a big group here, the french expatriates. of course, we are very much present. ishaad: the danger here
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there is a backlash against the muslim community. that is something islamic state wants to happen, does it not? it would radicalize more people. in france, we have to gather communities. this kind of act aims to divide people, to create hatred between communities. what we want to do is to have .ialogue
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us earlierining
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>> it is midday here in hong kong, 5:00 a.m. in france. you are watching our special coverage of terror in paris. the deadly attacks have dominated discussions at the g-20 summit in turkey. president obama and president one for more than aho


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