anna: welcome back. you are watching "countdown." stocks are extending their rally in the u.s. japan, thelia to stocks have rebounded. the history of terror attacks shows market reactions are increasing. the french president has called on the u.s. and russia to forge a new alliance to destroy islamic state. 129attacks that killed syria were planned in syria,
organized in belgium, and carried out in france. they global effort was needed to destroy the biggest terrorist factory the world has ever known. president obama has arrived in manilla for the apec summit. the cure g has been tightened. thousands of police and security offices have been deployed around the area. liberty global has agreed to buy cable and wireless communications. specialders will get a three pence share dividend one at the deal closes. we will speak to the cable and wireless ceo in an exclusive interview at 7:15 london time. let's take a look at the markets. we are seeing quite a bounce back. reporter: yesterday we saw the classic risk aversion across the markets with the concerns over the paris attacks. markets areems like
back to business as usual. i will start with the yen because yesterday we saw money moving into this currency. it was strengthening. today, we are seeing it weaken against the dollar. a national traditional safe haven, gold, jumped the most in a month yesterday. now, it is holding its five-day decline. the price is moving down 4/10 of 1%. gained yesterday. that has halted its gains and it is back to concern about oversupply in the global market. bore themarket stocks brunt of the risk aversion yesterday. index the emerging market dropped to a six week low. right now, it is heading for its biggest again in a month. the only find we are seeing of the risk aversion we had yesterday is the euro still
week against the dollar. it dropped to a six month low, but a lot of down two dollars strength. the dollar has climbed to a seven-month high and is skating against -- and is gaining against its peers. at a 66%pricing in probability of a rate rise by the end of the year. we will look ahead at the u.s. inflation data later. anna: president obama has ruled out deploying ground forces to syria and iraq to fight islamic state. the white house correspondent has the details from washington dc. and domestically it is a pretty significant challenge. the most americans, he is saying he is degrading isis, that he is making progress. to americans it looks like, hey, ins used to be doing attacks
the middle east, but now they are in paris. to many americans, it seems like we are going backwards. he says he is sticking with his strategy, but in fact, he is making adjustments. he would say, an intensification of his strategy. some would say he is stepping it up a little bit. there was a commando raid shortly before this and iraq where they freed some hostages. right before these attacks, there was a drone strike in which the terrorist jihadi john was killed. it looks like he will put additional resources into the strategy, but that will not satisfy his domestic critics. anna: city workers returned to the paris financial district yesterday morning. tom mackenzie has been gauging the mood
the news came up on my phone and we were about to go out so we were very shocked by the events. >> i work from my home. anna: tom mackenzie there, gauging reaction of those in the financial community in paris. let's get back to kristin scholz at citigroup. let's talk a little bit about german politics. some think you follow very closely. angela merkel's popularity has been on the decline ever since the refugee crisis again. -- crisis began. how does she handle this?
sentimentes, public in germany has shifted. act in the summer, when merkel had this press conference and then opened the borders immigrants,for the a large majority of germans were happy and even proud of that. as of the numbers grow, we are 200,000 in flux and people are getting concerned. people are worried about this but alsonerally, specifically about things like the impact on the labor market. terrorism was a concern as well. the cultural change in germany. grow asorism issue will a major issue. the german policies have to change in response. feelingave to get the that concerns are taken seriously.
we have seen merkel move in that coalition,but in her there are so many divergent voices that you get the impression she has lost a little control at least temporarily. anna: we will be back with with that conversation in a little bit. of's bring in the founder cornerstone global. advises itsglobal clients on risk in the middle east. he joins us now from dubai. it is great to have you on the program. what are the questions you are getting from clients right now and what advice are you giving? >> the main thing on people's mind, is the impact this will have on the short-term and long-term in terms of many sectors, particularly whether it is financial, air travel, human relations, and political impact.
those are some of the main things. the impact of the european relations and the air of-western relations in general, particularly long-term business relations and investments. arab investments in europe and the u.s. and in terms of travel, i think that is the main concern of people here. anna: you advise people on risks in the middle east. our people drawing the conclusion that there are more foreignrticularly to workers in the middle east as a result of this? is there no direct read across? is an increase in political risk. it will not be immediate. this will impact both the west and the gulf. i don't think it will have a direct impact on all workers in
the gulf for the time being, that everything is connected. that will probably filter through for the months and years ahead. anna: president obama downplayed the chances for any boots on the ground in syria. did that change the dynamics at all? did that reduce the impact that these terrorist attacks have? >> on the contrary. without boots on the ground, the potential for greater attacks will increase. an air campaign will be sufficient and this can only give people less confidence. boots on the ground would increase the likelihood of more immediate reaction, but in the long-term, without boots on the ground, i cannot see this being tackled properly. anna: we had some progress in the anna over the weekend when leaders from many nations
gathered together to try and yria. a peace for s are all of the red people talking to each other to enable a peaceful outcome -- are all of the right people talking to each other to enable a peaceful outcome? or other other voices that need to be heard? >> there are still big gaps of people of interest in the arab world. i think those gaps will take much more to bridge. the end of the syrian crisis will not bring an end to the regional conflict, iran versus the arabs. the west and russia are the other two main players. isa: what about how the is financing itself. furthering of
their ability to raise financing as a result of this? or do you think their finances could be stretched by what they have done in paris? >> i think financing, without the financing, terrorist attacks --ld not have been taken taken place. financing is a big issue and it could get more difficult. we are still seeing, and expect to see, financing to continue. the finances of terrorism are evolving as fast as the regulations and restrictions are evolving. they have got investments in europe. they have got investments in the u.k. it they have investments from the gulf. they have investments. people might be more interested in putting money in. i think it might increase the tightening of finance channels. anna: thank you for joining us.
the founder of cornerstone global joining us from dubai. we were talking about angela merkel and how her politics survived the events we saw on friday. the european project is bigger has angela merkel, but she been so crucial to it over the last decade. how much should we link two? her ability to survive this and the broader european story? kristin: i think merkel must being there anymore is one of the key risks for the european project. she has been very important in establishing this help for reform approach we have now. if the country does reform, it does get the help. that even applies to greece. she has established that rule and fought for it in various negotiations. she has always been able to
commit germany to helping in the end. who replaces her has huge boots to fill. not only in at the negotiations, but committing germany to helping. anna: you don't think she is going anywhere anytime soon? kristin: even though her popularity ratings are down, at 49% she is still above any other. much,thank you very kristin scholz. up next on the program, a rate hike. what it would mean for emerging markets. ♪
we will continue to restore confidence in the recovery. anna: it is 5:47 in london. that was the ecb executive board speaking to praet jonathan ferro about the attacks in paris. we will have more from that exclusive interview. we have more information on the french response to the attacks. this is what we understand, france overnight bombed. it involves 10 planes. france destroyed the is command center at racqqa overnight. they destroyed the islamic state command center at raqqa. aqqa is referred to often as the stronghold of the is movement.
here are the other stories you need to know this morning. stocks are extending their rally as global financial markets showed resilience. from australia to japan, stocks have risen. the history of terror attacks shows market reactions are increasingly short-lived. has calledpresident on the u.s. and russia to forge a new alliance to destroy islamic state. they global effort was needed, he said, to destroy the biggest terrorism factory the world has ever known. arrived inbama has manella for the apec summit. security has been tightened. thousands of police and security officers have been deployed around the city with more spotchecks of suspicious activity. cable and wireless was purchased.
we will be speaking to the cable and wireless ceo in an exclusive interview at 7:15 london time. the philippines finance secretary says the impending rate rise in the united states is needed to avoid famous pricing of risk. >> we think there will be an of thosempact in terms dividends. it is a long time coming. what we need to do is really the pricing can happen. reporter: let's talk about the country.
is it a good or bad thing? >> it is increasingly important in the philippines that we are diversifying the product. the good thing for the , we have always played a very big role. reporter: there has been a lot of praise over what's the current administration has been able to do. what, in your view, where did they come up short? >> in terms of infrastructure. that is with our country, and other countries.
there will be a disadvantage with investors. we need to continue to increase with education. anna: let's get back to kristin scholz, a director at citigroup who is still with us. let's talk about the fed then. we were hearing about various economies are preparing for what could be an increase in interest rates, the first in nine years from the federal reserve. are you still in the campus that this will happen? kristin: we think right now, everything points to that. an 80% chance that they hike by mid-december. anna: the markets say 66%. kristin: we are above the
markets on this, but we have to remember there are only a few weeks between now and then. the volatility of the markets came because of china. that could still indicate that plentyis time, there are of risks out there. on the basis of what we know at the moment, it seems like it is the most likely scenario. attacks, asris tragic as they have been, to they not distract the fed from what they are doing? kristin: we have to closely watch if there is an impact anna: on consumer spending. kristin: on consumer spending or consumer confidence. is the firstaction saycation that unless we more attacks, it is likely to be a relatively short-lived thing. politics, we have
discussed much wider implications. particularly, across europe. anna: back to the markets and the fed. treasuries markets, volatility has decreased to their lowest levels. when you look at currency the euro has its tightest range. kristin: i think you could interpret it that way. that's again, it may change. markets can be very fickle. the fedpeculation that will move comes into play, we have these important meetings. the december opec meeting and the ecb meeting. we will get a lot of data between now and then. there is still room for the fed to be surprised either way and change the policy. anna: we get consumer prices just this week i think.
we heard that interview that jonathan ferro did with peter praet of the ecb. the great topic of conversation is the divergence in monetary policy we are seeing on the two sides of the atlantic. he was suggesting that the ecb loses credibility if as nurses if businesses start to believe they will not meet their goal. kristin: that is a big part of the story as well. to revise theecb long-term inflation. the gap between the target and what they predicted inflation to be will grow again. for a miss the target long time, you miss the credibility for that target. that means you have to act. to actct the ecb forcefully. in december, we expect an
expansion. we expect a cut in the deposit rate. there is a chance it will go beyond september. they may do it later on. there is a discussion that they could include additional assets. they will pull every tool out of the toolbox, whether they will use it in december or not. anna: the underlying growth story in europe, where is it going from here? it was looking up, wasn't it? kristin: given what has been happening in china, it has been relatively resilient. it also has not accelerated much with the low growth and low and growth and inflation. afp is reportihad th is command center at raqqa.