francine: a fight to safety. global markets react to friday's terror attacks in paris. manus: paris -- france takes the fight. french police carry out a series of raids across the country. francine: return to a session. japan's gdp contracts i'm more than expected. what next that go -- what next? ♪ you are watching bloomberg tv live from our european headquarters. i am francine lacqua. manus: i
am manus cranny. some big news on the terror attacks. the identification of another one of the attackers. to guyet straight johnson. he is in paris. guy: in the last few minutes we have had a series of these attackers being identified. he was born in france and the known for terrorist links. he was meant to be under supervision of some kind. may have skipped that. he was involved in the attacks. that was one of the attackers at the buttock on. aclan.the bat have been in grief as early as october. his nationality is still being checked.
if he was part and parcel of the migration process, that would have a greater cross back into the way the migration story is developing. we will wait and see what details we get. is getting clear that french authorities are beginning to work through the terrorists and gain an understanding of their background. beginning to form a picture of the cell operating in paris on friday night. in terms of other news, we have seen french jets bombing targets in northern syria. that is a story that is being closely monitored. this man here is believed to be at large. he is 26 years old. belgium andin police are still trying to track his whereabouts. he is considered to be highly dangerous. belgium becoming increasingly the focus of attention as we watch the manhunt develop across europe.
that is where the story is now. the focus on this man front and center. pictures ofng at french jets -- of french jets took part in raids. part in that rate. to targets were hit. we understand the targeting of those jets were held down by u.s. intelligence for the u.s. and french authorities working hand-in-hand to provide targeting information for the jets as they flew into northern syria. , thettacks are the night attacks in syria, are part and parcel of the agenda of the g 20. that is a story that is being closely followed. the political reaction to the story is front and center. that meeting between president and obama -- president putin and obama hugely significant.
fran, manus, back to you. francine: you are falling on the development quickly. a understand there might be link. in terms of the assailant, police have identified five of the dead attackers. there is a manhunt. do we know anymore? ? we do not at this stage. if you look at what is happening do not at this stage. if you look at what is happening -- the first terrorist that was identified was identified by one of his severed digits. it is time-consuming. one of the terrorists that they greece -- came to came through greece. it makes it more difficult to
track down where these people have been. they have been working with greek authorities as well to ease the story and make it easier to identify some of these assailants. it is going to be a forensic process. it is good to take the rest of the day, maybe even longer. that it appears some of the attackers were born here in france. others were born here in france and based in belgium. others may have come in via the migration progress. a little bit of conjecture involved in that. we are going to wait and see. francine: guy, think you so much. it work. guy johnson. -- great work. guy johnson. chilcote got ryan covering the g-20. ryan s.: good morning.
it is proving strangely resilient. it fell 1.2%. this is france's and smart. it is almost at zero for the day. it is -.03%. the french cac 40 is barely changed. the ftse 100 as one of the gaining markets in europe. we saw asian markets fall overnight. global stocks are measured by the country world index. the worst performing industry group today is the travel and leisure index. it is fallen by 2.5%. if you come in close, you can see some of the individual moving constituents for obvious reasons. air france down by 6%. hotel operatort is down 2%. lufthansa down by 3%.
we've got i.e. a which owns british airways. into not -- internet -- we are seeing european stocks coming back off their lows. as is the euro. in earlier fell to a six-month low against the dollar. investors assessing the potential impact from the euro areas. fragile recovery. growth in the region slowed in the third quarter. the ecb is weighing up adding sincetimulus, trumping 5% october. the currencies that investors are pouring their money into, the yen, the u.s. dollar and the swiss franc. the other haven are u.s. treasury's and u.s. bonds. gold has been falling in recent weeks. four consecutive weeks of decline.
the fed will raise interest rates. gold has rebounded from its five-year look today. it is up by eight dollars at $1092. this upswing may not be because investors are going to focus on the fed. assets like gold, it doesn't pay a dividend. gold rebound might be short-lived. francine: mark, thank you so much. hans, describe paris as it returns to work? height --s a mix of of heightened concern insecurity. you just heard in and let's go by. a return to happen. with seen school children walking to school. to light stopping here a candle.
a little bit more we have he may have been born in syria in 1990. but the prosecutors are saying they need to check his passport. he may have been in greece in october. if there is a migration pattern , that is gone to come to take the political discussion. one other thing about that individual, they have identified five of the seven bodies that were shot and the other six self exploded. the two that were at the start the france had a connection. we should hedge that. one was carrying a passport. the other, the one they just released, may have spent time in inece and may have been born syria. the others are french born. addendum,d him -- one
where heard that there is a fourth attacker on the loose. it is unclear whether he was a part of a different cell. is still on the loose. ande has been a manhunt intensely extending as far as spain. guys? guy: there is a movement in terms of focus of this investigation. into belgium where the biggest concern is the population of extremists there. -- ryan s.: -- hans: if necessary he is compared to close down mosques in that area. we do know the individual mr.
salah traveled from france to belgium. he was controlled which is to say his papers were checked, but he was let go. he was in the presence of two other individuals. we are piecing together bits of this. there are large parts of the story that we do not know. we don't know how many of these perpetrators were french. we don't know how many of them may have had a syria connection. we don't know the total number of attackers yet. winona how big this was. there arenow if multiple interlocking cells. french officials have been telling us that they don't have a handle on that aspect yet. that is a crucial point. they gives you an indication about the three overnight rates, this is an ongoing preventative operation as well as an investigation. francine: hans, think you so much. let's go over to the g-20 summit
in turkey. guy: ryan chilcote has been there the whole weekend. ryan, what are you hearing? ryan: it is more about paris attacks. about syria and about how to work together. the g-20 leaders showing we just had the russian president meeting with the british prime minister. you know how acrimonious the relationship has been between british and russian since ukraine begin. coming out of a meeting, a real change perhaps in the tone of the relationship. the british prime minister saying the two countries need to work together on syria. the russian president thanking the british prime minister for intelligence. couple ofows you a things. one, how the russian president has gone from pariah to player. how we had lunch by
himself. he left early. irrespective of their difference, we are seeing leaders come together to work on terrorism, despite the fact the g-20 is where they discuss economic issues. we had the russian president meeting with barack obama. that was a hugely significant meeting. a couple of months ago in new york city where the russian president surprised the u.s. president by beginning his military intervention in syria. they say they are going to work together. a political process that may lead to peace someday in syria. there is a real change. while the events in paris have overshadowed what they were intending to talk about here, it has been very constructive. there are now tackling the real issues that they need to be talking about anyway. back to you. francine: ryan, thank you so much. there at the g-20 summit where a
franko let's talk about the paris attacks in the implication for europe's chance for dish network. -- europe's transportation network. manus: we are joined by bloomberg's correspondent, terry --dgren -- terry lundgren kari lundgren. kari: we are to see passengers going through delays. there is going to be nervous is over the weekend we saw the north terminal at gallic terminal closed for several hours when there was suspicious activity. you also saw twitter warning result in a air france flight getting the boarded at amsterdam.
general nervousness across the board. francine: what is the market reaction. i: the stocks are down. over the weekend, airlines were telling pastors if they wanted to change their booking they could. this country weighing on bookings into and out of france. air france after charlie hebdo noted that was affecting their bookings. you have to think it is going to be a similar story. for airlines like air france, easyjet, ryanair. kari, thank you. wrapping giving up in terms of the meeting of those airline markets in shares. a little bit.d it is the french stocks in the deutsche lufthansa which is the real focus. francine: let's bring in peter toogood. he judges for market reaction.
guys, think you so much. peter, let's kick it off with you. when you look at the market reaction, we are shocked, but we are not surprised of these attacks. market reaction is fairly limited. peter: you are already weakened from last week. itthere was a day later, would've been more instantaneous. we have had two days to think about it here at -- think about it. -- cine: peter: last week was a very weak week. manus: let's bring you into the conversation. this really has shifted all of the focus at the g-20. to -- we'velking -- >> talking to obama
and will continue to do so. there is not an obvious policy solution for this. .here are options they can be identified this intensified. -- intensified. iscountry including russia going to be prepared to put troops into syria soon. we will continue to be the standardbearer of -- -- cine: what a number of agencies have foiled plots on numerous occasions on the last year in the united states, as well as eu. the truth is the people seeking
to perpetrate only need to succeed once. where's security services need 100% success rate. that is the mathematics behind this type of situation. this is not a response to a broad change in environment. this a demonstration that threat continues and will continue to exist. batches in france, u.k., but in -- not just states in france, u.k. but in most western states. manus: local elections are coming. politics for markets matter. within that dynamic we've got an anemic recovery in france. give me your interpretation. >> france is in trouble and still is. verymployment rate has
little structural reform. france is not participating. there are some hard decisions to take. things that needs to be done which is not happening. it is not a business for any country and it is in trouble as of that. germany is booming in france is not. francine: germany also has painted the moment. it has full employment. franca if you let the productivity numbers, the fact is in germany, it is focusing on the export area. the point i'm try to make, i was asked about the applications of france, i think it is marginal. there is a fundamental problem. that will have to be addressed.
francine: is this problem going to be worse because of the politicians that maybe elected on the back of these attacks? peter: it doesn't help. that is clear. manus: to keep the focus on france for the moment. one of the critical issues i saw this coming through from the various pieces of news is the language about an act of war. escalating overnight, redoubling the french efforts. the very reason that has been isis for the attacks. france is e-voting -- is invoking war. is there anything in that that has ramifications for other nato nations? that is specifically one of the articles of nato. >> the use of the language. it changes the balance in a way in terms of what france's needs
now have to carry rater weight -- greater weight i setting that language. what france is not suggesting is that there is an immediate ground force response that is possible. what he is doing is galvanizing support. putting a marker out there saying we will watch her help and remember what your obligations are. metinka: this came through yesterday -- manus: this came through yesterday. isis isity is to defeat going to take boots on the ground. is that what the western world has got to face? >> it is a much greater problem than that. the islamic state is the latest manifestation of the trend that is been building over a number of decades. it is militarily very successful. it is carved out a geographical
area of control. capacity, that static territorial control, would undoubtedly be beneficial. in doing that, you would not of radicalis trend extremists activity. francine: thank you so much. ryan chilcote is at the g-20 summit. there's been a lot of talk about putin going from pariah to player. run us through that. ryan: the russian president just met with david cameron. they met at the russian president's hotel. david cameron went to see the russian president and saying they need to work on syria. the russian president thanking the british prime minister for the intelligence that written provided -- that britain
provided. last year in brisbane, the britain -- the british prime minister openly mocking the russian president. are meeting for close to an hour this time around. in addition, you had the russian president meeting with president obama. their first meeting in a couple of months. they are working together and perhaps there will be some more constructive stuff going forward. you have to keep in mind that the differences are huge. is thethe differences russian support for a side. for awsssad. metinka: the consequences of friday nights attacks. -- manus: the consequences of
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horrific attacks in paris. our team is standing by the cover all of the news. hans nichols is in paris. you have a guest, take it away. hans: i am joined by natalie goulet, the vice president of the foreign affairs center. inl us where we are understanding these groups and what it means for the future of french politics. guest: this time it will affect
politics very deeply. we had the morning with charlie, but now it is different. especially, we are facing terrorism here. and an election in some weeks. on theave elections state of emergency. afraid that itit is kind of white bread for national fronts. hans: that means marine le pen could benefit? options. have two one of us can say that we have to trust the democratic party and we will vote for the democratic party, whatever.
but they have been running our country for many years to maintain the security and we don't trust him. >> what is the likelihood? 50-50? how do you see it happening? guest: i'm not sure. i really don't know. the next fewpen in hours maybe a speech of the president. but regarding the feeling of people on the stage or the countryside, they don't trust the government, they don't trust people anymore. there frightened about that. it is a group feeling. >> what do you see this doing to the people and good? can it be suspended?
will it survive? guest: on the 20th of november we have a meeting to increase the label of security and because of the state of , we prod back all the id checks in the airport and on the border. beenor many years we have catching the budget of harmony and defense. it is appropriate stuff to fulfill this obligation. recall maybe an id. but for your people they need to be trained. everything will take some time will spend 900 million euros to
restore more staff and equipment. hans: there is more needed than that 900 million euros? how much more? guest: i don't know, but a lot more. to organize intelligence, cooperation, equipment, staff. one of thers that prosecutors is -- was under surveillance from 2012 but he slipped his surveillance. is this a failing of the french state? guest: i will not speak about failure right now. it is not the right time. is because of our regulations, where somehow a little between it. we have a committee in charge of thing, for this kind of
and we are not allowed to cross that or build a new databases without caution. monthsre asking for many a special basis for the people who had links with heroism. the problem with the statement for one or two years you cannot keep it forever. is it even possible to survey the number of suspected jihadists? >> no. >> why not? >> there is more than 7000 people who have been noticed on the verge of radicalization. it is not possible.
what our intelligence is doing is trying to put priorities. sometimes they are not the we give of the things up on some people in favor of some other people. are any your knowledge, of the attackers syrian nationals? >> it seems that came through a nigerian question. i want to do how we checked the idea of the migrants. you cannot expect that they get the idea. you may not carry anything.
there are even able to save their lives so we are not time,ing -- at the same we have to let them go without id. so i think it will be a real issue to let them into at europe , but we cannot let them die. hans: thank you for your time. i will send it back to london. francine: hans nichols there with a great interview. 7000 people they have identified possibly being marginalized. he cannot go to whether the need to be id than classified. this will have huge political applications over the next two years and in 18 months we have presidential elections.
manus: and the expression she is was this power -- white bread. to theat will come down local elections in the couple of weeks under a state of emergency as a question of trust. fascinating comments. let's go to guy johnson in paris in our studio. let's get an update on you. give us the latest. guy: we expecting everything wem the interior ministry, will bring you that as soon as we get it. let me bring you the latest. those briefings will start very shortly. in the meantime, french jets have been hitting targets in northern syria and we're expecting more details of that later. two targets with the
assistance of u.s. intelligence. we understand the city is an islamic state stronghold. the prime minister says it will continue. he says the islamic state is preparing more attacks against france and other countries. in britain, david cameron says he is looking to build a case to expand in syria, but it will require the backing of parliament. manus, as you were saying, we are learning the identity of some of the attackers that took part in the atrocities. two more assailants now about one suicide bomber believed to have been born in syria may have been registered by greek authorities at a refugee, back in october. we are still tracking through that story. what we understand is there is a warrant outstanding for his arrest.
authorities had lost track of him. in paris, the story very much dominating the agenda and the g 20 summit. we have a very big meeting taking place between these two gentlemen here. of the the president united states and the president of russia sitting down for over 30 minutes talking about syria. angela merkel is also at that meeting. via thean track migration story that will make angela merkel's life more difficult. get moreiting to details. we have a live shot coming to you from the interior ministry. we will wait to see what exactly the governor has to say in the next few minutes and bring you the details of that. clearly as we indicated, it is a developing story. i've also been in touch with one
of the bosses of the big airlines getting a look at exactly how the airline sector is reacting. more restrictions on travel. maybe that will have an impact. he said that over the weekend, depressing number of people turning up for flights but monday morning, back to normal. francine: thank you for that briefing. from the interior minister it is what we're waiting from because it will give us an up-to-date situation on who they are chasing, but also look out for the political fallout. manus: 900 million euros has been sent as one of our last guests said. all focus is on the political side. what happens next? in the meantime, let's get a
quick update, and the markets have responded over the past one hour 40 minutes. mark: french stocks have proved resilient. onecac 40 was down about .5% and now it is rebounded. if you look back at terror incidents over the last 15 yous, starting with 9/11, see an initial sharp reaction and the s&p sank 12% in the five days that preceded it. , the indexa month recovered. andlar to the bali bombings the madrid bombings and of course the london attacks in 2005. this is what is happening in france. the big mover today is the travel and tourism stocks. seeou come in close you can air and klm down by 6%.
wasbiggest hotel company down by as much as 9%. the concern is that the event on friday will hurt consumer spending. this is the worst performing industry group today. and the currents be space earlier moving into the haven currency. to a nearalling today six-month low. and gold is one of the big havens in times like these. last year it fell to a five-year low. rebound mighthis not last as investors once again turn to the fed on the prospect of a u.s. rate hike in december. it french stocks proving resilient. let's have a look at what we are waiting for, that all-important news conference from the interior minister due to give a news conference shortly and i cannot tell you how important this is.
manus: welcome back to the polls. we are live from london. we're waiting for bernard of the interior ministry to take the podium. that give us an update in terms of the state of play in paris. three months of state of emergency that we are getting pieces of information to the morning on the identity of some of the terrorist attackers from friday night. john frere joins us now. here just take a moment because there are many facets of play. the g-20 is not absolutely focused in terms of trying to halt money flow to isis. american political debate has now been usurped by this.
this really is a major global shifting point. think it is one thing for a major terror attack in the -- once per year but twice in the same year -- david cameron this morning openly asking whether it is time for western leaders to go back to the drawing board in terms of domestic security. it's interesting that we saw a subtle shift in u.s. policy when it comes to the islamic state. so they talking about financing the islamic state. that theyresting change it on the ground. but we are only at the beginning and we can talk about what this -- oneor one of them up of the emotional pillars for the european union. >> how many questions will he get? are we going to see many more countries working together?
anthat is certainly inevitable easy first step. but over the weekend there was the sense of how can you stop people like this causing carnage. but we are seeing the brewing anger as people ask how could this happen again. it is very early on. this has already moved to a focus in terms of belgium when the manhunt had focused. the whole debate around europe will not reflect back on the crisis. undoubtedly, it will divide public opinion and race the spectrum of migration. much more highly for the refugees.
looking at the headlines yesterday morning for example, there was a front-page suggesting that one of the attackers post as a migrant. no surprises that would be a newspaper that regularly pushes the idea of anti-sentiment. so absolutely, leaders like cameron and merkel can try to pass the data and pass the information. but there is not getting away that this will have shifted the debate. we are waiting for the french interior minister to give us that news conference to update us on their various manhunts. are airstrikes-- effective aside from making leaders look good? >> they are extremely effective at destroying specific
locations. they are not necessarily good at destroying individuals. but france has been expanding the target basin rescheduling and bringing forth certain targeted runs. certainly enormous damage can be done to infrastructure. as you mentioned, attacking economic pipelines. these all have an impact. by themselves. they do not provide a political solution. that is a political problem. it is a response to myriad political problems in that region and beyond. airstrikes cannot and are not ever intended to solve that problem. manus: the other big movement was john kerry answering it in time plan delivered in a short space of time in regard to syria. >> it is important to know that huge progress has been made on
that side of things. in terms of finding some kind of solution for syria. it is important to point out that what we saw saturday really was full of holes. the risk really no agreement between the americans and the russians. aboutis nothing in there does he even agreed to a political transition and talk butt opposition groups, there are hundreds of opposition groups and there was no menu -- mention that which would help to write this new constitution. but itress has been made still feels like we are a long way away from the political solution that would back up the military fix for syria. >> we're just getting this breaking news. we understand from a french -- french official that they have identified the suspected mastermind of these attacks as a belgian.
epicenter of the the attacks of the planning has shifted to belgium. that is what is becoming increasingly clear as we continue to see those involved being identified. you can see the live pictures of the podium where, shortly, we will be seeing the interior minister standing and briefing on the very subject you have just been bringing to us. theringleader mainly behind attacks that did take place friday night in paris. the the morning -- over night we have learned the identities of two of them. francethem was born in and was under some can of course supervision and a few -- appeared to skip that. ofalso learned the identity mohamed, and he may have come by greece.
that is a big caveat. the french authorities are clearly becoming increasingly aware of how this was structured and how that cells were put together. the other piece of news we need to know a significance, we just john talking about some of the attacks made. also saw these french attacks overnight. and we understand significantly that they were carried out as a kind of joint expo by u.s. intelligence. aircraft and tubing targets. and that was conducted in coordination between the net states and france. so key stories beginning to develop. that will be very much part and parcel of that. back to you. covering thehnson shifting dimensions of these
terror attacks in terms of where the arrests will focus. , guy, thank you very much. crispin, we talked a little bit about the implications for the middle east and the airstrikes in the political system in france. what does the belgian link tell us? >> it tells us very little. francine: how can we have a hotbed in the center of europe? would bek it surprising were there not cells like this in many european states. securityem is that for services to succeed they need to succeed 100% of the time. have been failures but as natalie pointed out, security services operate in the real world on the real budget is for us, prioritization
always essential. this may be perceived to be a failure am a but decisions will have been taken that were completely justifiable. the money will have needed to be's and to be perceived as a bigger threat. it is an incredibly difficult theronment to manage, given extent to which this organization and others like it have been able to infiltrate their ideas into the community. manus: we have seen the markets alleviate themselves. do you think we have passed the worst point in terms of this particular terror incident? >> it depends on whether it repeats. it is terrible for what happened, but it has fairly marginal impact and if it repeats there is much more of a challenge. manus: thank you very much. director,anaging thank you very much to both of you.