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tv   Countdown  Bloomberg  November 16, 2015 1:00am-3:01am EST

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anna: stocks in u.s. equities features decline. is,ce takes the fight to launching airstrikes and syria. european police have belgian born suspect. return to recession. japan's third quarter contracts by more than expected. what is next for all they not mix -- all they know mix -- abenomics? ♪ anna: i am anna edwards.
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guy: i am guy johnson. a city getting back to business. let me tell you about what you need to know about events overnight into today. what we have seen is an early attack from france and the middle east. french warplanes bombing targets in northern syria in the city of raqqa, islamic state stronghold. let me introduce the reporters for you and tell you what will be going on around the europe. nichols.ot hans she is at the bataclan. we have zeb eckert in asia giving us the latest from reaction. have a reporter in brussels. we will deal with those guys talk about what is happening in marketas a larger reaction. french warplanes have been bombing targets in the northern and islamic state stronghold targeted by french officials. those officials say that tax in paris on friday were ordered from syria and islamic state --
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islamic state said it was payback for france's intervention in the middle east. police say 2 of the attackers had links to brussels. brusselsl cars for were used as seven people have been detained in connection with the investigation. a manhunt continues for abdeslam saleh. you can see a picture of him. he was involved and considered him dangerous. in the paris attacks, dominating the agenda of the g-20 meeting. president obama and putin spent hourlked for more than an and syria was the main subject. the german chancellor angela merkel said refugees fleeing the conflict must not to be blamed for what happened. let's goodbye to our reporters and talk about the story that is developing fairly quickly. zeb eckert is out in asia for us
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handling the market story as we close down asia. zeb, what is going on? zeb: negative sentiment, a somber day in the markets across the asia-pacific. you see this feeding through nearly every aspect clients. rotation out a risk and clients taking risk off the table and looking to the safety of japanese yen and treasuries. let's start there. a lot of action. yen is advancing. that reflects the risk profile of the markets right now. and investors want to put their money and say places. that is why gold is advancing. 1% advance. ounce.n crude oil is moderately higher. $44.77 areaing at the treasury market.
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what is happening here. his government bonds are moving substantially. check out the u.s. 10 year. a ten-year note, we saw a decline three basis points to 2.25% and the demand for japanese and australian bonds and what worsen with a u.k. guild. the 10 year and the japanese as well as the australian and that's what you have on the 10 year government in australia. quite active today among others. the equity markets, what we see declines across the major markets today and equities really reflecting the state of affairs globally. this new risk profile that had is brought to bear in the markets as a result of the tragic events in paris. selling off commodity related shares and industrial metals, the concern that perhaps this will have impact on global growth, china's growth in travel and tourism which we will get to in a moment. check out the hang seng.
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shanghai composite off the lows and the session. australia and new zealand today seeing the client. among the stopovers, airlines and travel are among the biggest decliners across the asia-pacific. warning to itsa citizens not to travel to france. that is eva airways, one of the main carriers, down 5%. another airline, down 3%, the main korean. qantas down. travel agents getting hammered today. line in phoenix falling -- lion and phoenix falling. finally, we will end with commodities. chemical related shares did very well today. 11% gain. new press mining, showing just how much investors are rotates
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them into gold right now. asrible uncertainty persists a result of these very, very tragic events in paris. back to you. guy: thank you very much. the market's reaction. the politics will take a longer to unwind. we do not know the applications of what the paris attacks are going to mean in europe and around the world. global leaders have been speaking and it is what they have been saying. strong and even if it gets hurt, it stands up again and nothing will bring to hit it even though grief is all around us. france is strong and active and brave and will try -- trying over barbarism. german friends, we feel so close to you. we cry with ul and we will fight and you -- we cry with you
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will fight with you against something so inappropriate -- and comprehensible. the family and relatives, let's make sure you germany feels with you and your pain. president obama: was dead prepared and ready to provide whatever assistance the people of france need -- we stand prepared and ready to provide whatever assistance the people of france need. french reversed a shoulder to shoulder with the united states time and time again. we want to be clear we stand with them in the fight against terrorism and extremism. guy: such a early stage in those comments are really predictable. what ultimately will be the net result of what happened in paris? hans nichols, our international correspondent, is out of the bataclan. ns, as we wake of this monday and paris against back to
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business and try to understand what happens next, what is clear is the french have structurally and struck back and that's predictable. nevertheless, potentially the french president announcing a state of emergency for three months. we could see far-reaching implications into the elections recently and also what will happen may be the longer term in terms of progress. hans: yeah. ministry called for a meeting of eu interior ministers and will likely be a gathering in the coming days and were confirmed. what we're expecting from the french president, on the political side, the french president is expecting him to ask for additional powers according to local press. we know he will be meeting at 4:00 today to declare a state of emergency for another three months. right now, 12 days. anything beyond that, he needs
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parliamentary approval. let me bring you up to speed on the investigation and where we are on the security aspect. of the seven attackers that were killed, french authorities and the prosecutor's office have identified three of them. there are looking for one which either believe to be an ace command. not to see the number has been limited to eight. they do not actually have a full handle. it is unclear how many actually, how many cutlasses their work. the focus is on finding saleh abdeslam. he is potentially the 8th attacker. there is a manhunt across europe. he did cross from france into belgium. he was let go. and if they have had a total of seven in detainees in brussels after that. just beyond me is the bataclan of omar --inger
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mostefai has been identified. a story's have gone all -- does -- and that the words have gone to his family. will see the increased cooperation between the u.s. and france on airstrikes. that annexes between france's involvement in the attack here is made clear by the islamic state in french authorities who say this attack was designed and orchestrated inside of syria. guy? elements significant of what happened in brussels of being part of the story. the cross-border element, the manhunt across the border seems to, back to the idea of the free movement of people run to europe is a problem for the security problems per in the immigration story to mix in.
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we do not understand how that is in diagram will work. diagram will work. what are people saying in brussels about the long-term implications of this? is at the cross-border story, the free movement of people, going to sit side-by-side with increased security is that will develop around the paris attacks? can see already that there are problems with that. one of the first results out of france was to make their borders more secure. to agreement is supposed have a visa free travel throughout this area. have provisions of the allows temporary, was supposed to be temporary controls and france has initiated these. it is in the middle of the refugee crisis in several other schengen countries. germany is put in place restrictions within the schengen framework.
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we have some cracks, if you will , in the schengen framework. this terror story will added to it. in the mix is the suggestion, the idea that one of the attackers in paris came through the immigration process and through greece and made his way further into europe. argument, ais a big big problem for how the schengen framework is going to go forward. how does this leave angela merkel? to trying to send her policy saying we cannot draw the line between the 2 and would need to make sure both migrants are not being blamed for what happened. the pressure on her must be increasingly there to change policy and change attack on this. the question, where is the pressure going to come from? maybe public relations and there
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already are when you read a german press. will it find a head in a challenge to merkel? will it manifested by political challenge within the coalition or from outside? approval rating is down but she seems to be holding her coalition together. angela merkel reacts well in crises. this could be a potential crisis that will challenge her authority. guy? finally, we are looking at what the reaction for brussels is going to be. when we look at what ultimately guys like mr. juncker are going to be reacting to this. what are their stances going to be? are they going to defendant the union? sure i -- try to defend schengen? or see what happens? trying to play a quiet role in a pivotal one down the road. a arehayden: i think is
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going to try to defend at the system. they want to defend the system, a cornerstone of the eu virtually from beginning there ofld be this free movement people, free movement of workers within the euro area and ever closer union. this is a fundamental right, fundamental tenet of the eu and mr. juncker will defend a desperate what they are going to save in the implementation of the border controls has not been as it needs to be. as they have put proposals out there to strengthen especially the external borders of the eu and the schengen system to make sure the refugees and the asylum-seekers coming in are properly register and we know who they are and what exactly is going on the borders. thank you hayden, very much for the hans nichols. so many other angles on this story, anna.
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look at what potentially could happen as a result of this feeding into the ecb's thinking as it decides what to do in a december and the british political story as we watch what happens. will this be back in the debate surrounding europe and with are not the u.k. should leave? all of these stories related back in to what is happening in paris. paris it gets back to business. it faces are very different world of this monday morning. anna: thank you. guy johnson in paris. we'll get back to him later. another voice. and carn, founder of carn investments. he joins us now and the studio this monday. great to see you. what are the broad implications that matter to you and would you look at what happened on friday in paris? which lens do you look through? nick carn: as your
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correspondents were saying, quite a lot of angles. centrally, the implications for europe, particularly what happens to the schengen agreement, which is already in a ragged retreat. -- and much oracle however much more wants to distance this from the refugee crisis. that many people's minds things will be closely connected. the evidence for one of the attackers was an europe as a refugee through greece is certainly going to testify that debate. anna: if we get full confirmation that was indeed the case. is that of the reich, something that has material implications from here? nick carn: yes, from a more market point of view, the biggest as essential store -- existential threat would be a le pen presidency in 2017.
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that is not all that terribly far away. back to work after christmas, that will be next year. likely, rapidly increasing problem and again rightly or wrongly, this kind of horrific event plays into the hands of the reich and in one focus on immigration as a central part of the debate. you inc. it will lead to some kind of breakup of the eurozone? it seems like a tail risk. we have not really had time to digest the political implications on friday. nick carn: it remains a tell risk and the rise of the extreme and places like greece and the form of -- one of the consistence stories and europe as we both know if the infamous
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phrase, europe is france and germany and everything else is just trimmings. if you're looking for something risk, the existential yet the look of something that of facts either the german policy or relation between france and germany. and le pen presidency, would be one of those events. against currently membership in the euro. anna: nick carn, thank you. he stays with us. we will continue our coverage of the parisian terror attack. , we from paris developments will talk about the global economy and japan as a enters its second recession since shinzo abe took office. a four recession -- a 4th recession in five years. ♪
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guy: this is bloomberg television. i'm guy johnson. what you need to know. frigid jets bombing -- french jets bombing islamic targets in raqqa, an isis stronghold. the attack ony friday was ordered by isis. isis said it was payback for military interventions in the middle east. brussels is increasingly the focus of the investigation as police say 2 of the attackers had links to the city. two rental car for a belgian were used as seven people detained in connection with investigation. a manhunt continues for saleh abdeslam. police believe the 26-year-old brussels born man, this is his picture, was involved.
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they consider him to be dangerous. and understandably the paris attacks are dominating the agenda of the g-20's summit in turkey. president obama and putin spoke more than half an hour and a syria was at the main subject of their conversation. chancellor, angela merkel said refugees fleeing the conflict in syria must not to be blamed for what happened in the french capital. couple of just be with what you to know about paris and will be back to business day for the french capital. 20 what to talk about it we will do that later. back to you. -- plenty to talk about and we will do that later. and abound thank you. the global economy. -- anna: thank you. japan is officially back in recession. after the economy contracted and the third quarter as business investment fell. rose domestic product fell.
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death gross domestic product fell. economists estimated a 2% decline. -- gross domestic product fell. forji okubo, thank you joining us. what are the broader implications? do you see this triggering furthering quantitative easing from the boj? takuji okubo: before that, i would like to extend condolences to the victims in paris from japan. it is a tragedy and should not happen. gdp, itjapan, japanese was weaker than expected. most economists expected a week numbers anyway. turnednce production negative for the july-september quarter, most estimates expecting negative growth. it should not have surprise anybody. anna: indeed. looking for brighter spots in the data, perhaps at there were
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some especially around consumer spending or the extent of the businesses were running down inventories and it means more production in the future. what were the positives he took away from the number? takuji okubo: right. side, i would say results were actually positive, up by 0.5% quarter over quarter. the fundamental for consumers not bad. starting to rise. a very small amount, but rising. greatergy prices is a consumers for a private consumption, number is positive. part, weon the capital said that seamlessly japanese topany managers reacting invest in japan and a very bad sign for abenomics.
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anna: what this is mean for prime minister shinzo abe and his agenda? the second recession under abenomics, isn't it? the fourth in five years in japan. takuji okubo: indeed. has beenid, japan recession prone in the last five years. 2011 and againn in 2014-2015. i do expect the japanese government to take some countermeasure by formulating stimulus package to the end of this year. you: stimulus package, think the emphasis will be more on fiscal policy rather than more quantitative easing? takuji okubo: i think for japan for point of view, not easing any further. yen is at a historical low. issign of the japan that back into deflation from a gdp report this morning, we saw domestic demand going up.
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view, non's point of reason for them to intervene. government,zo abe shinzo abe is targeting 2% growth rate and is negative number is certainly not consistent with his target. he has to respond. anna: looking at the market today, work out what his reaction to japanese gdp data and macro news and what his reaction to the dreadful events of friday in paris. the when you look at where the currency is right now, the japanese currency, where are your expectations from where it heads to hear? it is perceived safe haven door times a geopolitical -- safe haven during times a geopolitical risk. still okubo: in terms, i think the direction is for yen to weaken as long as the u.s. fed is expected to hike in
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deskber or the very new near future. the direction of the yen and we never know. if there's any more publications on geopolitical side, yes, risk could drive that yen higher. the main outlook, the majority is for the yen to weaken. aunt what he or -- anna: what are your expectations of the draft will events of friday and it seems market expectation around fed's interest rate seem to lessen a little bit since friday. this plays into the thinking at the boj and other global, central banks. takuji okubo: yes, i think of the fed is data dependent. if we see any massively negative employment number in early december, fed may decide to postpone it. we never know.
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the chances are still that of the fed will go for height in december. at a bank where do you see the japanese economy going from here -- anna: where do you say the japanese economy going from here? to have success? well, in at the long-term, i am still a pessimist on the success of abenomics. and everybody in the financial market knows we have to distinguish the short to medium term and long-term. and long term. in the short-term, 2016, i expect the year will turn out positive for japan. the fundamental for japanese for wagesare positive are starting to grow. no people being unemployed. corporate profits is at a historical high. weak, a yen is very great advantage.
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i do expect japanese economy will show better than average growth next year. anna: takuji okubo, thank you. joining us there. nick carn is with us and has been for the last half hour or so and with us for this hour. looking at the global economy, it seems the macro situation is nervous enough bowl for the events of friday. japanese back in recession. nick carn: absolutely. pleadingose special each time is disappointing economic data. the truth as the world's economy has been limping along for a number of years it has stayed on the right side most of the time with of the u.s. as of the only place where there is a kind of plausible narrative about inflationary pressures and rising wages and so on. it has been with us for a while you.
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euro, this horrible stuff in paris is pushing in a direction which we were already going in. seen thelly, we have survey of cfo's this morning showing a drop in the way of u.s. business -- european business confidence. pushing the direction that will robbery moving in. as far as france is concerned, rilling from the failed socialist experience. annabelle that situation -- and bank that and a situation in a bit, back to guy johnson. guy: paris getting back to business. frane getting back to business. websense french jets -- we have seen for two jets in syria over stronghold that we
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are good team this manhunt for abdeslam saleh, who is the 26-year-old within probably was involved in the attack and that's what authorities are telling us. you're looking at the jets to bomb the northern city of raqqa in syria. we will continue to monitor through the morning as we try to understand the political implications of what will happen not only in france but wider europe. the french president is going to go before french parliamentarians from a very rare event and asked for three-month extension of the state of emergency. suspended shank in a given for lean more power to deal with the aftermath of the attacks and prevent another one. that's what we will be watching a probably hear from marine le pen later and watch for commence -- comments if she decides to talk. the market reaction to all of this. it tends to be short and sharp. is that what we are seeing?
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>> the reaction we are seeing is a little bit more muted at the moment that what we've seen in previous years after, for example, the september 11 attack , the bombings in london and barley and we some equity dropped the most -- most in years of what we are seeing are moves are waiting for european equity markets to open, the biggest moves in months as opposed to years. let mr. the euro, analysts were split. lately, been acting like a bit of a safe haven asset particularly around of a greek crisis. not today. we are seeing classic risk aversion across the markets. the euro dropped to six month low versus the dollar, raising its first weekly gain and a month. that is at the yen,
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rising against all of the major peers. and other safe heaven, u.s. treasuries seeing them advance for a fifth the day on the longest winning streak since july. the 10 year yield down about 2.6 basis points after the moment. gold climbing for the first time in five days. up at the moment more than 1% risk the most in a month today in fact. brent crude, again, analysts were split on the oil price and how that might react. it is gaining, shy of 40 my dollars a barrel. -- $45 a barrel on concerns a geopolitical risk. if we look ahead to the equity market opening in europe, ftse boldeatures, sap features pointing lower, suggesting we could see the equity markets and europe and the u.s. open lower. back to you. guy: nejra cehic, thank you very
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much. the market reaction to what where are seeing in paris. the wider political stories. the g-20 is a meeting in turkey. we have our records for the deck correspondent ryan chilcote at elliott gotkine standing by. ryan, let me start with you in turkey at the g-20. these things tend to be overtaken by events such as paris. we have seen the events dominated events. will that continue today? look, if they stay to the agenda, today will be very different than yesterday. boosting growth, cutting unemployment, what to do about the banks, the issue of climate change, very ambitious. yesterday was almost entirely consumed by what happened in paris, the conversation about terrorism and syria and migration crisis. agenda for the leaders' dinner last night.
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does that mean the world leaders were distracted from the normal bread-and-butter issues they discussed? no, it does not. i put it the canadian prime minister. take a listen. allertainly, these it's paris are on everybody's mind. how we continue to work former to greater understanding and cooperation across the g 20 importantll be an discussion to continue to have. agreed ong-20 leaders very specific issues to combat terrorism, one was agreeing to work more closely to make sure do notnding and finances make it across borders to terrorist groups. another was working to tighten security at borders. and even discussed the idea of supporting growth in countries where there is not. increasingly, a feeling that inequality and social economic
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deprivation is one of the issues fueling terrorism and maybe the attacks in paris. of this notable example newfound focus and collaboration between the g-20 leaders is when the russian and american presidents sat down for a full 35 minutes to discuss syria. back to you. guy: let me explore that meeting a little more. it could end up being significant. paris attacks and the jetta downing and other attacks around the region. seem to be changing the dynamics between the u.s. and russia a little bit maybe putting them on the same page on key issues. is that what we are seeing here? ryan: the russians said as much as a been the paris attacks may be a game changer for russia-america relations. the first on facebook since the
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russian jet exploded over those -- the first time they have spoken since the russian jet exploded over the sinai. theafter the meeting, russian president left and blind-sided the obama administration by beginning to bomb syria and sending his military. the administration was caught off guard and said it was counterproductive and more of the acrimonious relationship we have seen between the russian relations of the year. this is different for the obama administration saying it was a constructive conversation. saying it is very useful the russians are bombing isis. , youis not to say that know, they particularly in a joint speaking with each other. you look at the bottling which and no report and no love. -- rapport and no love. it looks like they may be prepared to work together which is a big difference from last year with the g 20 meeting.
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president putin was more like a pariah than a player. what a difference a year makes? guy: such a big shift in terms of the politics. elliott, let me bring you in. elliott dokken. talking about a game changer in terms of the relationship between russia and if you're in the states. where does the middle east sent into that changing game? -- russia and the united states. elliott: one of the impacts of the attacks on friday night which has been overlooked a little bit with all morning them and aftermath -- mourning and aftermath in france ramping up bombing is also making a going on in vienna. yohn kerry was there and serge countries sitting
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around trying to work out some kind of way to resolve the syrian civil war has left more than 250,000 people dead. in contrast to previous meetings , 17 countries and among them countries now between whom there is no love lost, iran, saudi arabia, turkey, russians. they reached an agreement on a timeline to try to resolve the syrian civil war to provide for representatives from the syrian government and opposition to meet with and six must am expect a -- within six months they expect a cease-fire. and allow the opposition to draw a new constitution and a new government in place by 2017. thething really spurred by french attacks. something that could very well change the way that the syrian civil war is played out in the coming months. beyond that, we saw a lot of
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solidarity and 70 in the region for the french. we saw the example and the united emirates, the same happened in israel and jerusalem as their parliament. sympathy and solidarity. let's not forget to region expressed many terrorist attacks in lebanon, islamic state bombings the day before the frigid tax leaving more than 40 people dead and previous bombings in iraq and as well. hurt andttle bit of many parts of this region because they feel the world is much more sympathetic and what were saddened and outraged by what does happen in paris then for example what happen in lebanon where the world barely batted an eyelid. guy: is that are growing sense of where you are that it is going to be hard for the authorities in washington and paris and maybe london as well and other capitals around the world to avoid putting boots on
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the ground and escalated the situation further? there seems to be a growing movement toward that end are hard to resist in some of those capitals. very much so. in contrast to for example the iraq war were nato members voted in joining, now, the european union and a lot of solidarity with other members. and also a member of nato as well. one, if one member is attacked, all other members of nato needed to join with that country to counteract that attack. you could in theory see other members of nato joining in, attacking islamic state. one reason why we saw this market reaction yesterday. the coal mine in the middle east because markets and trade in the sunday and we saw the client and concerns the war in syria could escalate.
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the impact on oil prices taking a toll on the markets. big declines in saudi arabia and dubai and declines in tel aviv will probably because of the failed bid for companies being traded here in tel aviv. a general concern or expectation that we are going to see a ramping up in the fight against islamic state for many countries that have thus far set things out. guy: elliott, thank you. elliott dokken, ryan chilcote joining us from the g-20 summit in turkey. gettingom paris, a city back to business in this monday morning, back to you. anna: back at the conversation, nick carn. markets try to digest what was seen taking place, it seems there's a constant reassessment about the fed and
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when will see an increase in interest rates. ago, weouple of weeks got payroll numbers and looking at 70% chance of the fed would go in december. it was, the weibo for the terrible events of friday per now 62%. -- it was already down before the terrible events of friday, now 62%. what are your thoughts? nick carn: the fed narrative, random disturbances which are postponing normalization of the u.s. is getting a story which is getting a little bit old, frankly. why do they always have the same sign? in a broader context, what you're saying is interesting. the markets typically good at dealing with things within its own, disease. -- competencies, the rate hike
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is there sort of thing. markets are less good at dealing with these kind of harder to pin down things like political wholes which from this immigration, is one thing and the affect on french elections and merkel's position and pricing those things. we have seen in the past going to extremes like with the bird flu or ignore get until it happened like with the greek default. anna: et al. on the geopolitical -- and how long the geopolitical risk will be. a return of recession to japan. we are in tokyo next. ♪
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anna: welcome back. you are watching "countdown
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." french warplanes have bond isis a tax -- how bond isis targets in raqqa, an is stronghold. brussels is the focus of investigation as police say 2 of the attackers had links to the city. two rental cars from belgium were used as seven of people detained in connection with the investigation. a manhunt continues for abdeslam saleh, holies believe the 20th-year-old brussels born man was -- police believe the 26-year-old man was involved and he is dangerous. are a focus of the g-20 meetings. president obama and putin spoke for more than half an hour. the u.k. prime minister david cameron spoken about what he will discuss with the russian leader. prime minister cameron: we have
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differences and with the russians, they have the greater the non-iso-opposition to assad two people to be part of the future of syria. the conversation i will have with a vladimir putin is to say there's one thing we agree about is safer in russia and safer in britain if we destroyed and a -- degradend d grade isil. anna: the latest on paris and the g-20 conversation around the global geopolitical terror threat. let's step away from depth and talk about what is going on in japan. officially back in recession after the economy contracted and the third quarter as business investments fell. gross domestic product fell 0.8%. economists estimated 0.2% decline. the jodi schneider in tokyo with us.
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what are the key factors and the worse than expected reading? jodi schneider: a large one. down 1.3% in the quarter which is a larger number and more than expected print it shows irmpanies are not putting the money, good earnings and very hold the stock market gains but not going back into the economy. also, inventory, business inventory sure which was another -- shrunk which was another factor. anna: is it expected to last? do you see signs it is going to get a weaker from here or stronger? economists are saying and saving it as a temporary recession and a quarter in which we are in, some growth potential. might be a actually good sign even though they
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shrunk in the quarter and it hurt gdp. the fact companies are using up the inventory, their stores and warehouses that the fact is they are going to those and a sort of looking to the future that may mean they have to produce more in this quarter. it could be a silver lining if you will. is exportspating continue to be strong and the , theand european economies recoveries improve that japan will improve along with them. china remains a factor in the slow down of china, it is an open question. obviously, it offends japan and japan's imports and exports. jodi schneider, 21 for joining us. we will focus on what the boj does. back to the french story and the french prime minister is speaking as saying targets are
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communicating and targets were hit in the serene strikes. we brought you a little while ago news though french has staffed up attacks on syria overnight, warplanes. the french prime ministers said airstrikes will continue. he said islamic state will be destroyed and the u.s. work with the french to develop targets in syria. he goes on to say the french airstrikes carried out with full support of the united states. back in paris for more reaction to this ongoing story in just a moment. back to the global growth story. joinhinese one is going to the -- yuan is going to reserve global economy. it will be in the special drawing rights area -- numeral rates. more from tom. as a likely to be seen significant driver of volumes of money into china? is a hugely significant
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move by the imf, recognition china's growing importance in global trade and investment but in itself, it does not require anyone to shift for new allocation, global managers, bond fund managers. they do not have to move more into your won -- yuan. and al be a catalyst second largest economy and the biggest exporter in the world. after the moment, not reflected in global portfolio allocations for china's bond yields are pretty attractive relative to the u.s. or europe or japan and that is what is reflected in portfolio allocations. perhaps this decision by the imf to recommended the yuan going to the basket cobia capitalist, global money managers to look again at how their assets allocated. us fromm orlik joining
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beijing. as i was saying, comments from the french prime minister speaking about the attacks and took place by french jets into syria and saying the syria airstrikes will continue. target iney hit their syria and continued to talk. ended theck carn, french and domestic political situation is crucial in terms of where it goes and the rise. nick carn: absolutely. this terror attack will focus attention on of the whole issue of immigration which is intensely divisive issue within europe. very much a north/south the divide seen more in europe and partly a consequence of reverb high unemployment and weak performance. a rift between what bush called old europe and new york and we
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see that the rhetoric -- new europe and we see that a rhetoric. situation political and merkel's open-door policies seen as an open door policy to our enemies and that's very divisive. lack of real political challenge to merkel, muddies that. --was her more medical difficult position. and the implication for the french president for election which after christmas will be next year and not far off and the big rise in support for marine le pen. anna: does a driver rift between france and germany? nick carn: act the moment, is contained with the holland e/merkel accommodation, as you like. it can be very different with marine le pen, the french president is somebody else as german chancellor.
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anna: thank you for spending the last hour with us. nick carn. we will be back in paris. pictures of the french prime minister speaking. more coverage when we return. ♪
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anna: stocks in u.s. equity futures decline as the global market reacts to the terror attacks in paris. france takes the fight to i.s., launching at targets in syria. return to recession. contracts by more than expected -- what next for abenomics? welcome, you are watching bloomberg television. we're at a bloomberg's european
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headquarters in london. guy: and i'm guy johnson in london, the city waking up to the start of the new week. monday morning, back in business. we have a team assembled around the world to bring you the latest. hans nichols is outside the theatre in paris where the worst of the atrocities where. we are joined also from brussels, with the european angle and what we need to know about the fallout and how it will affect things like the schengen. and of course we have nejra with the latest on the market. let me bring you up to speed with what we need to know this monday morning as we try and figure out what happens next. overnight, french jets bombed targets in syria. french officials say friday's attacks in paris were ordered from syria. it was a payback for
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france's military interventions and the middle east. increasingly looking like brussels is now the focus of the investigation. police say two of the attackers had links to the city, two rental cars from belgian used in the attacks. two have been detained in connection with the investigation. a manhunt continues. police believe this 26-year-old brussels born man was involved in the attacks. the paris attacks are dominating the agenda at the g-20 summit. president obama and putin spoke for more than half an hour, and aides say syria was the main subject of their conversation. the german chancellor also says that refugees fleeing the conflict in syria must not be blamed for what happened in paris. a multitude of angles being pursued surrounding the attacks
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in france. we will wait and see how the markets open here in europe. we now know how the asian markets have responded -- let's get the latest from nejra. nejra: thanks, guy. i will start with the bond markets which are just opening. i am looking at german 10 year bonds, the yield falling two basis points. french 10 year bonds are rising as well, the yield falling two basis points. what we have been seeing is a flight to safety in reaction to these paris attacks. earlier we received u.s. treasuries rising, advancing for a fifth day, the longest winning streak since july or those u.s. treasuries, but it seems we are still seeing that flight to safety continuing, with money moving into german bunds and french bonds. of course the attacks happened in france, but france is often seen as the safe haven.
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that is what's happening in the bond market at the moment. let's take a look at the equity futures. i think we can show them on the screen. we were seeing ftse 100 futures and s&p lower. you can see that stock futures of the euro stoxx down more than 1%, ftse down 7/10 of 1%, down 1.5%.5%, cac40 as well. what we have seen with past terror attacks, weather that has been the september 11 attacks or the bombings in bali madrid,, london, is a sharp market reaction that has been short-lived. reaction today has been a little more muted.
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perhaps investors have had the weekend to digest the horrific events that happened in paris, but what we've seen in the past is markets quickly recover. will we see that again this time? the question is how much of the reaction is down to paris, how much of it is down to other global events? markets were already fraught prior to these events that began on friday evening, so investors will also be trying to distinguish how much of the reaction is down to paris. back to you. guy: it's good to see that. as you were talking, i am looking at the fair value calculations, the cac down 1 .5%, the dax a similar amount. the s&p only went down 3/10 of 1%. quite a big spread between how the european markets will open and what it looks like wall street will do later on. global are reacting, leaders are reacting to what has taken place over the last few days. friday night's events in paris drew a quick response from many global leaders. this is what they had to say. strong, and even if
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it can get hurt, it always stands back up again. nothing will be able to hit it even though grief is all around us. france's solid, it is active. france's brave and it will triumph over barbarism. >> we, the german friends, who feel so close to you, cry with you, fight with you against the ones who did something so incomprehensible to you. my thoughts go out to the more than 120 people whose lives were taken, and the families and relatives. let me assure you that germany feels with you in your pain and grief. >> we stand prepared and ready to provide whatever assistance that the government of 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 very clear that we stand together with them in the
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fight against terrorism and extremism. guy: global leaders are stoic and their response, standing shoulder to shoulder with france. it's going to be interesting to see how it seeps into consumer confidence in the economy, how other leaders like mario draghi and janet yellen have to respond to the story as well. the economic implications of what happened in paris will become clear. let's bring in hans nichols, our international correspondent, joining us from outside the bataclan. two things we need to do. first, we need to understand the short-term granular story, the investigation, and extrapolated into the wider story. the manhunt continues -- talk us through the latest on how the story is developing. hans: guy, the very latest is from the prime minister, speaking on french radio saying that there are additional
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terrorist attacks being prepared not just against france but against other countries, a very stark warning from the prime minister ahead of his speech to the national assembly later this afternoon. you mentioned the manhunt -- here is what we know happen, according to local reports. at least three raids in toulouse, grenoble, and a suburb north of paris. all of those had a total of nine detained. some weapons were gathered in toulouse, and police are describing them as preventative measures, preventing future attacks. that is what's happening right now. as you mentioned, there is a manhunt. they could be the eighth attacker. we don't know if he is the eighth attacker or -- french authorities are saying they don't have a firm handle on how
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many were involved. we know that as he was traveling from france to belgium, he was controlled at the border. his identity papers were checked and he was not detained. he was accompanied by two other individuals. one of his brothers was killed as a suicide bomber here in paris. that is an update on the investigation. one other quick note -- one paper is reporting that he could potentially be in spain. it gives you a sense of how pan- european the says. one quick note on what paris is like -- in 20 minutes, who will be starting. -- school will be starting. from these apartments right behind us, we have seen several families walk out, children crossing the streets just in front of the bataclan, heading to school down the street. also further down that street is the place de lare republique,
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where you had in the fusion, outpouring of -- had an effusio emotion thating of turn into a stampede when firecrackers were started. intent to return to normalcy and start walking their children to school. guy. guy: i will be back with you in tha moment. i want to talk about back to business in paris. jones, let me come to you in brussels. we are talking about the moment, but it looks increasingly clear that brussels is the epicenter of the investigation. we want to know why that is and what that will mean. --es: well, you are right there are a lot of questions being asked in brussels after what happened over the weekend. there is a particular district in brussels which is the focus of police raids, where seven
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suspects, thought to be complicit in the attacks, were detained over the weekend. there is more police activity going on even now in that area. it has been a source of problems -- the government has known about it. it was implicated that there was activity after the "charlie hebdo" activity, the atrocity back in january. then there was a foiled plot in eastern belgium in later january that had also connections. askedof questions being -- the belgian interior minister last week, before the attacks on friday, was talking about it and how it was a center of terrorist activity and how the government had been lax in trying to do something about it. guy: hold those thoughts -- i will talk about the wider politics in a moment. david cameron is speaking on bbc radio.
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he understandably is saying that the u.k. will strengthen security services. the reaction in london is very clear in terms of the response we have seen. police officers and security versus are on the street and in big shopping centers, trying to ameliorate some of the risk that london faces. obviously, paris and london are heavily linked in terms of their responses to terrorism. we will come back that story in a moment. i just want to talk about what the wider implication of all this is. hans, later on today we will be seeing the french party are going and wanin front of the parliament. he wants to extend the state of emergency. that will encompass regional elections. we have seen marine le pen pulling strongly -- he may be doesn't want this to be seen as political, but nevertheless this
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will have a political implication. id. think there is any dispute there will be political fallout. the question is where and when and how quickly it comes. internationally we need to look at how quickly there will be a coalition beyond france and the u.s. in terms of western powers that are bombing the islamic state locations in syria and iraq. it is clear that they will be increasing cooperation, increasing activity. he that moments ago that they will try to eradicate the islamic state. i look to see whether or not there are international editions, whether the u.k. joins, whether you have additional nato countries joining in. the other aspect is -- and one quick note on nato -- if you declare this an act of war, nato countries may feel treaty obligations to get engaged. more on the pan-european
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picture, we have to look at what european ministers will do later this week at a summit. what sort of restriction on the movements of good and people -- goods and people will be instated. you have border checks all throughout europe, increased border checks along with french-belgian border. that is an indication that schengen is potentially imperil, or at least pretty fragile. guy: we'll have to leave it there. hayden.hols, join jones as he brings up the issue of schengen, david cameron continues to speak on radio, mentioning that border controls give the u.k. an extra line of defense. it is really drawing a distinction between where the outside schengen.schengen anna: no doubt trying to get
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ahead of those conversations with the brexit brigade. thank you. let's broaden the conversation. we are joined now by an associate fellow at a think tank. great to have you on the program -- thanks for joining us. let's talk about what this means in the middle east. do you think this increases the chances of seeing ground troops going into syria, and if it does, who and in what form with that activity take? >> i think that is in the one question. there is a lot of speculation on how france and the eu and west will respond. one possibility that has been option.d is th enate nato francois hollande declare this an act of war, and we could see something similar to what played out in the united states n act september 11, that a
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of war against one country is an act of war on all nato countries. anna: does he use these words advisedly, trying to imply to the rest of the nato membership that some expectation is there? >> i think so. we have already seen the united states cooperating heavily in last night's attack against isis. i think we can imagine some form of joint response, potentially under the nato umbrella. anna: do you have any reason to be hopeful that things can be brought to a head in syria because of the agreement in vienna? >> i think there is ground for help. this is a moment of unity, and it brings together 18 different countries. they have come up with a short-term solution, a roadmap where, within the next two years, there will be elections identify an effort to important players of the syrian opposition.
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there are differences in how to deal with russia, but they are unified against the islamic state and that is an important step. anna: stay with us. the attacks int paris and the implications they could have on the transport network. we are joined by our u.k. transport correspondent. good morning. what have been the effects on transport? >> there has definitely been increased security at the borders, especially at charles de gaulle. inbound and outbound passengers were facing big delays. there is also been a general increase to the awareness. question thater resulted in an air france flight getting evacuated in amsterdam. thea general increase of
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tension. anna: will this turned out to be material? >> at the end of the day, paris is a great place. people will continue going there. over the weekend, they were offering passengers who wanted to change their flight the option to do so. eurostar was doing the same. they were interesting during the "charlie hebdo" attacks. they saw their earnings affected, so it will be interesting -- the airline is one destination but it will be interesting to talk to them and get the full year results. anna: interesting. kari, thank you very much. the implications for the transport sector in europe. we have ongoing coverage coming to you from paris. guy is over in paris, bringing us the latest developments, and we are in brussels as well. a lot of the conversation around what happened in paris has moved
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to turkey. let's go there now to the g-20, where paris attacks are dominating the summit. ryan chilcote joins us. bring us up to speed -- what is the latest? ryan: well, what is supposed to happen next is the british prime minister david cameron will be meeting with the russian president. it is extraordinary what a difference a year makes. he was really the pariah last year at the g-20 meeting, and now he is very much a player. he has already met with christine lagarde, angela herkel, barack obama, t japanese prime minister, and now the british prime minister will be traveling to him by car, going to his hotel to discuss both ukraine and syria, because he says while he has so many differences with the russians it is important to work together with them to hit isil in syria. it has been an extraordinary
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about-face in terms of relations between russia and the west. thatussians are saying they think the events that took place in paris are a game changer. anna: ryan, take us inside that meeting between putin and barack obama -- it has been a while since they have's token to any material degree. do they have any kind of rapport, or is this tricky functional? -- strictly functional? ryan: no rapport whatsoever, this was strictly business. neither of them really looks like they wanted to be there. they were sitting at a table together with their interpreters, but they had a very serious conversation that lasted just over 35 minutes. it was the first time they had spoken since the russian plane exploded over sinai, the first time they had met since they sat down together at the general assembly. remember, it was after that meeting in new york a couple
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months ago that president putin returned to the russian capital and began his military intervention in syria, completely blind-siding the obama administration. they didn't see that coming and were very upset, that it was very counterproductive, and criticized all russian action. really continuing the acrimonious relationship we have seen. last night was totally different. the americans came out saying it was a constructive meeting. it's positive that russia is bombing isis. of course there are major differences beyond the fact that they now agree on the political process for finding peace in syria. anna: ryan, you mentioned the differences that remain between the u.s. and russia. give us a sense of how big this differences are. there's a lot of talk today about the french airstrikes. people have been asking -- why didn't the french airstrikes
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happen sooner? why didn't they go after these training sites? one of the reasons for that is because countries are very reluctant to share intelligence with one another. atance had just gotten th new intelligence with closer cooperation, but france and the united states are very close allies. think about how difficult it is for the united states to work with russia. there are huge issues that separate them. on the matter of assad, the russians still think he could have a role, even after a political process and negotiations. who should be bombed in syria -- the russians maintain that pretty much everybody that is fighting assad is a terrorist, whereas the west saying that russia should only go after isis. then you have all the other players who also disagree on lots of matters. saudi arabia, turkey, iranians
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have a representative. there are huge divides about how to work together. they are starting to make progress. we didn't see any of that before paris. we had never seen the g-20 be such a talking shop workshop for leaders to discuss terrorism, but they have begun. anna: ryan, thank you very much. ryan chilcote in turkey. let's get back to our guest. a lot of conversation there e seeming ability of russia and the united states to find some, and ground in vienna, to get to that tentative agreement on the way forward for syria, but big divisions still remain. >> absolutely, and there are divisions of principle that are tied to bashar al-assad and his tenure as president of syria. ultimately for the syrian opposition, bashar al-assad and
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issi are two sides of the same coin. it is going to be very hard to bridge the divide as to what to howith regards to assad and he should be eased out of power or whether he should participate in elections in the future. anna: he has already been on european television talking about that, about his future role. do you think this is still the stumbling block it once was? >> i think so. perhaps in the short term there might be some effort to compromise, because he would be a band-aid while the international community, the french go after isis. but in the long run, he must go. h he is th esore sore point. anna: how does iran play in? >> iran is a longtime supporter of assad, but has been a surprising beneficiary of this shift in terrorism.
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iran no longer looks like the bad guy. they came to the table and wants to be at the table. i can imagine that iran is going to try and find, perhaps, a nice exit for assad in the long run. anna: we talked at the likelihood of ground offensives taking place -- who would be the parties involved? you talked about iran, the syrians, the saudis have an interest -- who would be involved in any kind of activity that took place, away from the nato players? >> all of those parties you mentioned are already involved, either through their financing or with foot soldiers and intelligence sharing. it is going to be important for the international community and players in the middle east to share intelligence and cooperate , because if they all agree that isis is the most important
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terrorist source and we must eradicate it, there must be cooperation. anna: it was crucial to you that the french of tories worked out that these attacks were masterminded from syria, rather than an organization sympathetic to the interest of i.s. why is that still such a crucial factor? >> i think it shows the strength of isis command central. even though they are under attack, even though they are surrounded by russians and iranians and now a greater intensity of u.s. and french attacks, this attack on paris demonstrates their strength, their potential for recruitment. france is the largest country that has sent individuals to syria. anna: thank you very much for that. an associate fellow for middle east and north africa. we will take a short break.
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when we return, the fed trading day -- the first trading day of the week. asian markets reflecting what happened in paris. no doubt that will continue. we are expected to open weaker on the european equity markets. ♪
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guy: you are watching bloomberg television. 8:30 in the french capital as paris gets back to business. this is the latest. french warplanes have been striking targets in northern an islamic statet stronghold. the prime minister confirmed they hit their intended target, and that airstrikes will continue as the islamic state is preparing more acts of terror against france and other countries.
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meanwhile, prime minister david cameron of the u.k. says he will build the case for expanding british action in syria. brussels is increasingly the focus of the investigations now, with police saying two attackers have links to the city. two rental cars from belgium were used in the attacks and seven people have been detained in connection with the investigation. the manhunt continues for one man, a 26-year-old brussels born man, involved in the attack. they consider him dangerous. are dominatingks the agenda at the g-20 summit in turkey. president obama and putin spoke for more than half an hour about .yria, accordin the german chancellor says that refugees fleeing the conflict in syria must not be blamed for what happened in paris.
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are half an hour away from the start of the european equity market trading. we have already seen the reaction in asia, the bond markets open, the futures market open -- let's get the latest. nejra: i am looking to the bond markets first -- we are seeing a little bit of a muted reaction here in europe, german 10 year bunds, the yield coming down just over one basis point. same for french bonds as well. we are very much seeing this scene of money moving into those safe haven assets. we have seen money going into u.s. treasuries are the night as well. in fact, the u.s. treasuries have been advancing or a fifth day, marking the longest winning streak since july. that is what we have seen with the bond markets, and gold is rising up more than 1%. we have seen it rise the most in a month today, in keeping with
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that moved to the safe haven asset. if you look at equity futures, we can take a look at how they are shaping up across the board. we have been seeing equity futures point lower for europe. the stoxx 50 is down 9/10 of 1%, ftse down 7/10 of 1%, dax futures down almost 1%, cac40 leaving the losses, although it is a bit of a pullback from earlier when we saw the cac40 futures down 1.5%. the question is -- are we going to see this sort of moves in the equity markets that we saw with previous terror attacks? that we have seen in the past is that the moves and equity markets have been sharp but short-lived. going back to the september 11 attacks, we saw the s&p 500 dropped 12% in five days. /7 bombings in
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london, we saw a large drop, for both those equity gauges recovered pretty quickly, within a month. will we see the same reaction in europe? at the moment it has been more muted, but investors have had the weekend to digest those horrific attacks that started on friday. guy: thank you very much. it's interesting to see the continental markets being called down more than the london market. markets standing around 1.2%. on wall street, the s&p is only .2%, .3%. leade trying to get a and an idea of how european equity markets will open. elliott gotkine is standing by in tel aviv. markets, a little bit
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softer over the weekend. but as we take a step back and look at what has happened in the region, you put together what happened in egype, the paris attacks -- what is the view from the region about whether the last couple weeks represent a real turning point? this is a region that is all too used to turmoil and conflict -- we had the arab really there are a lot of other rings going on on the markets, particularly the drop in oil prices we saw on sunday. that was one of the main factors that impacted gulf markets before those big declines in saudi arabia. dubai rebounded this morning a little bit, which lends further credence to what nejra said.
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but yes, there is definitely concern, particularly in egypt, which was the biggest decline are yesterday, and also in lib ya. already suppose, is considered one of the better places in terms of conflict, but there is an ramping up of any war against the islamic state, as president francois hollande called for, with additional strikes and perhaps boots on the ground. but that could lead to the conflict escalating and spilling over the borders to countries that are more peaceful, such as jordan, which hasn't really seen any of the carnage that has been innessed in iraq, in egypt, syria and in lebanon. guy: elliott, thank you very much. elliott gotkine joining us from tel aviv. markets softening over the
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weekend, maybe not quite so dramatic a drop this morning, starting to see some stability. the oil story is front and center as we try to factor in what could end up being a turning point and significant shift in the conflict. anna, i will hand it back to you. the cac is down by 1.2% this morning. this is definitely us and he is getting back to business this monday morning. people take their kids to school, going back to work, trying maybe to put this weekend behind them. anna: thank you very much. plenty more to come from him in paris over the next few hours of programming and into the week. top chiefs after warning that a brexit would have dire consequences. but they don't speak for everyone. a small group of prominent figures are publicly hacking a departure from the eu. tise, theem is richard
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cochair of the eu campaign. he joins us now. thank you for coming in. let me start by exploring with you, if you think there is any link between what we saw in paris and the conversations we are having around wreckbrexit. do you think is will change anyone's views? >> i think people want to think long and hard about it, but we will have to think about migrants, if it turns out to be true that one of the terrorist s was a recent migrants that came into the eu. people will be worried -- are we increasingly dangerous for our own citizens? anna: the u.k. is different to the rest of many parts of continental europe. we are not part of the schengen agreement. it means the u.k. has an extra line of defense. >> i don't think the voting public believes that. look at the numbers that have been coming in.
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people -- millions are coming into the eu, and they want to go where they can find jobs. anna: do you think the level to which the u.k. gets involved in syria from here, and david cameron was talking about expanding, will that have a bearing on the brexit debate? in or out, we are still in nato. >> for sure. and lets her member, it's not the eu that provides our safety, it is nato and the police. the syria debate for the conservatives is difficult, because he has to get parliamentary support, and even after the terrible events, i don't think you'll get that. anna: moving away, then, from paris, which could have an impact on the brexit conversation -- you found your views on brexit long before. as cochair of the labor eu movement, what is your case built around?
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>> our view is that the united kingdom can do so much better outside the european union. we have more trade to negotiate, we have more influence because we will regain seats on the wca . we can have more money per household. recent studies show 1000 pounds per household per year. we can have more control in laws and regulation. finally, control over our own borders. anna: looking at the trade situation, those on the other side would say if you go into a trade negotiating situation with the rest of europe, you are 28 countries and not just one, you have way more economic clout. >> there are two issues. one is trade with the rest of the eu, exporting over 100 billion per year. they're not going to cut the nose off to spite the face. that will continue with no
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differences. it is ridiculous that places like india -- the eu has been trying to negotiate for over seven years, and it is one of our common wealth countries. we should be able to conduct our own free trade with those countries around the world. that is a key advantage. statisticsite some -- the amount of money per household. the other side would raise you another study and throw more numbers at it, suggesting x,000 jobs would be at risk -- do you see any credibility -- >> i think exactly the opposite. we will be able to have more traded globally, the number of jobs will increase. it is just a myth that we won't be able to trade. we will enjoy good trading relations. you think about the numbers that german exports -- it is so significant. anna: are you not worried that we will see a putting off of the
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tariff? it would be very expensive to export. >> not at all. we would have two years to negotiate a friendly agreement. i'm absolutely convinced that is what would happen. at the end of the day, they export much more to us than we do to them. anna: richard stays with us. plenty more to explore with him. coming up, we will get a run-up to the market open. minutes to go until the start of monday's trading day. markets here in europe will get their first chance to react to the scene in paris. looks like we will get a weaker start to the european opening session, the cac and dax down by more than 1%. more when we return. ♪
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anna: welcome back. 7:45 in london. here are the stories you need to know. french warplanes have bombed targets in the northern syrians . the french prime minister says that airstrikes will continue, as the islamic state prepares more attacks against france. he willmeron says that build the case for expanding nuclear action in syria. the head of the imf is recommending the yuan be added to the special drawing rights. the move would yield more than $1 trillion to chinese asset the next five years. japan is officially back in recession after its economy contracted third quarter and business investment fell. gdp declined 0.8% through september. economists had estimated .2%.
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let's get back to our conversation with richard tise. leave.euhair of the movement. is saying -- we won't leave the u.k. if there is a brexit, but it might influence their investment strategy. isn't that something your side of the debate needs to listen to? >> i don't think so. companies, all of o these people have said that it won't impact on their british businesses. they won't impact their investment plans. ground ince on the terms of what people are investing into the u.k. sibley doesn't back that up at all. the reality is we have such loquat for a, good -- such cooperation, there is no reason. --a: one specific reason was
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for example, electric cars. that requires a great deal of investment, and if you link together the various research activities around europe that take place on that subject, they will be able to compete with the chinese are americans than if britain was doing so alone. we don't know what the policy vacuum would be filled with if we were to leave the eu. isn't that something that holds weight, this european cooperation? >> but again, there won't be a vacuum, because there will be a simple free trade agreement between the eu countries and the u.k. it is in our mutual interest. this myth that everything will stop doesn't hold water, it is just not credible. anna: you talk about the amount of investment we are seeing going into european businesses, suggesting that it won't change -- but what about the chinese government? when they came here recently,
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the leadership was saying they wanted to see the u.k. as a strong part of the european union. with that kind of capital, should we listen to what they say? >> of course we want to trade globally and compete outward facing, but the eu is currently china's biggest export market. they don't have a free-trade agreement with china. there is no need that we have to be within the eu for investment. it simply doesn't hold water. the reason that global businesses like to invest in the u.k. is because of our very good relations, the corporation tax, a very clear and transparent legal system. that is what attracts people. and we benefit from the language of business. the leftdoes seem that seems to be quite conflicted on what start it will make on brexit.
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you say you see evidence of less voices coming out against staying in the eu, but then we have heard from the leadership of the labour party that they want to stay in. >> many people are wondering what is the real position of the labour party, but we are talking to lots of trade unions that are very concerned about the eu's stance on greece and the impact on workers rights. there are many people in the left who have real concerns about the european union and its future direction. it's not really a party divide, it's about individual concerns about the impact on their individual lives. anna: another argument says that the left will support staying in the eu because they would prefer to see a european britain than a fully conservative one. >> that is not the evidence we are's eating in terms of talking trade unions. people are much more concerned about inc.'s like tt -- about
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things like ttip. anna: thanks for spending the last 20 minutes with us. richard tise. 10 minutes away from the start of the european equity trading day. let's focus in once more on the events of friday and what has been happening in paris. hans nichols joins us now from outside the bataclan, the scene of the worst violence on friday night. hans, bring us up-to-date with what is happening around you. hans: well, we have heard from the prime minister this morning, and he says 150 searches have been conducted according to a report. not all those 150 are t directly related to the events that occurred behind me. we also know overnight that up to three operations were conducted as preventative measures in to lose and gren -- a toulouse and grenoble and
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suburb of paris. there is an eight person they are looking for. whether or not it was the eighth person, french authorities do not know -- it seems to be unclear. i shouldn't say they don't know -- they haven't revealed. earlier yesterday they said it was unclear whether eight was the limit on the number of attackers. that search continues and there is a report that he could have potentially fled to spain. was controlled -- his numbers were taken and his id was checked when he was leaving france. he was not detained. he was with two other people. authorities believe he is one of the ones that rented a vehicle that has been recovered here in paris. the hunt continues, and as we heard from authorities in the u.s. and in france,
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airstrikes will continue and they will increase in intensity. anna: hans, away from the political and the police investigations going on, we were already talking about the struggling french economy on friday, with the gdp numbers coming out. any sense that politicians will have to do more as a result of friday to prop up the economy? hans: well, i don't suspect it will be that immediate. we got growth out of france, and in some ways mario draghi is looking at cpi as much as gdp. to the extent you think there will be a filter on gdp, that could prolong quantitive easing down the line. what we are expecting from mario draghi has been pretty well telegraphed, some sort of extension and expansion of quantitive easing. whether or not you can draw a linear line from these attacks here, what this may due to the french economy, anit may be a
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little too early. but to the extent you think this will slow down the economy, that does provide more ammunition for those that want to increase the size and scope of quantitive easing. closer timewise, remind us of where we are and where we are heading today as you follow the way this story is developing. hans: so later on this afternoon, at 4:00 p.m. local time, we will hear from mosr. along for enhanced emergency message -- from mr. hollande. he wants more authorities, more right to detain. that is in addition to the state of emergency that has been declared. you have 12 days without going to parliament. anything beyond the 12 days and he could potentially request three months. he needs parliamentary approval. at noon there will be a moment of silence. to give you a little color,
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through the morning we have seen schoolchildren walking around, some just steps away from the bataclan. paris is returning to normal but there is still a heightened sense of security. anna: hans, thank you. paris scarred by trying to get on with business. hans nichols joining us from the paris. of minutes away from the start of european equity trading. european markets dealing with the dreadful offensive friday in paris. we are expecting to see equity weaker at the start of trade. paris. we saw that risk aversion trade being introduced, as we have seen before. we are technically weaker at the start of trade. ♪
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jonathan: good them -- manus: good morning and welcome, i am in for jonathan ferro. before the start of european trading, stretch your global morning brief. bonds, treasuries, the euro falls as global markets react to friday's terror attacks in paris. france taking the fight to islamic state, launching strikes in syria. belgian police hunt a born suspect. return to recession, japan's are declines by more than expected. those are the burning global
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issues are your brief. markets and according expect to open a low this morning as traders move away from risk assets to safe havens. let's get a terror father european equities are opening. nejra cehic: global markets were fraught both for the events on friday. in europe, european stocks the worst week in two months, eurozone gdp missed estimates and were down to concerns of a rate rise before the end of the year. lots of things plain dental a bad week for european equities last week. let's see what is happening at the open today. point equity futures lower earlier. a cac 40 not quite reacting, it is down just a 0.6 percent. some analysts are saying we can move it down as much as 2%.


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