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tv   On the Move  Bloomberg  March 22, 2016 3:30am-5:01am EDT

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guy: welcome to on the move. it is 7:30 here in london. we are counting you down to the european open. i am guy johnson. here is what we are watching. european oil companies traded their highest premium versus the market in over a decade. is it time to sell? -- if --to ceo of april could still be on the cards as the markets down as a result -- how brave is it feeling? what would brexit mean for
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credit? some analysts see prices in junk in the u.k. leads -- if the u.k. leaves. let's update you on where we are. let's take you to the market it let's show you what is happening. let me tell you how the market is in position. wti, you're-- looking at a fairly negative picture. the market looks like it is going to be flat. down by .2%. we have reports coming out of it brussels that's coming out of brussels that there has been -- coming out of brussels that there has been two explosions, north and northeast of the city. we have reports coming from ap that we have two explosions and we can see smoke over one of the terminal buildings. let's get to ryan chilcote. there are these two explosions at the departure hall it we are getting reports that there are injuries in the
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departure hall. north of brussels. we understand that the train link from the center of brussels to the transition has been shut down. the police trying to limit access to the airport right now. more people arriving into the airport. there may be some interruption. that is something we have to think. very few details other than we had two explosions at the airport in brussels. in addition to that, there are injuries. ryan, we will come back to you throughout the program as we get details. in the meantime, let me update you on what is happening elsewhere. there is plenty of news going on. we wait for the markets to open the focus on what is happening with the story in brussels. the futures looking still a little light. at this point, they seem to be pricing much in the realms of
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terrorist attacks at this stage. we do not have details of what is happening. the market is look -- the market looks like it is wait and see mode. here is with the roman often. kumutha: -- here is to move the roman often. agreed: now a judge has to cancel a court hearing set for today over the price -- over the case. the justice department suggested a third-party has suggested a way to access the phone's data. apple says it has no information about the claims. meanwhile, apple has unveiled a new, smaller iphone. it seeks to jump start the sale of its flexing product by upgrade -- by enticing more of its users to upgrade. s e has a for-- its screen.
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it incorporates a faster processor that runs the large iphone 6 s. a distressed barack obama and cuban president raul castro shaken hands at a press conference and event. both men expressed hope for the improving relationships and highlighted some deep disagreements. what's the relationship tween our governments -- >> the relationship between our governments will not be transformed overnight. we continue to have some serious differences. including on democracy and human rights. global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . guy: thank you very much indeed. i want to check in on oil. $41 a barrel. opec says it sees a price recovery to a moderate level. whatever that means. and if iran does not join
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output free spirit that comes as stocks -- output freeze. that comes the stoxx -- as you can see we have seen a significant spike. the rally we have seen in oil stocks has been spectacular. to shed a bit little bit of light, we are happy to be joined by the ceo of one of europe's largest energy companies, claudio descalzi. european energy stocks have been on a tear recently did this is a bite -- recently. energy stocks are trading at their highest premium and more than a decade. would you be a buyer? claudio: i assume the situation is changing. demand, of supply and
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there is an anomaly because the supply is going down. is increasing in assume there is some recovery and the situation will be changing. it is still abnormal. -- itysical stock is during 2016 we can reach a balance in september october. he physical stock is still high. manus: -- guy: i'm curious to bring you back to the equity stock which has gone straight through the roof. analysts have downgraded earning estimates for energy companies right now. claudio: because of the price.
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guy: the prices going up and earnings are going down here something is not right. -- going down. something is not right. claudio: [indiscernible] action because we cannot do anything about the price. you have to be resilient. cap to be strong also when the prices are $30 or $40. trying to understand what is going to happen, you are wasting your time. you have to focus on your company. caroline: but you have projections. it is difficult to forecast.
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are you confident that it has bottomed out? claudio: we think so. we have projections. had projection of $15. we went to $26. you have to be able to react and ate a company that can lead $40 or $50. [indiscernible] $40 per barrel. caroline: one thing we have been trying to figure out is exactly how you benchmark the price of oil. whether it is a demand problem or supply. it is a lot more complicated. how much more difficult is it to forecast the price of oil that was for a five years ago?
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wasrice of oil then it cointreau or five years ago? -- it was cointreau or five years ago? -- recently russia was quite important event. nobody took about that. understandogether to how to navigate the market. it is much more difficult than before. we started the demand. the offer -- they can impact the oil price.
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the only producer now is saudi arabia. the capacity has been lowered. it is 2%. gulf and saudi arabia. [indiscernible] they can increase production. it seems they have decided not to do that. other producer. guy: we will carry on the conversation in just a moment. thank you for your time. is good to stay with us. i still need to update you on what is happening in brussels. let's get back out to ryan chilcote. ryan: what a bit of information since we spoke a few minutes ago. several wounded in the explosion. two explosions at brussels
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airport. the airport is now closed. the transport links have also been closed. we also learned they are now evacuating the airport and these two explosions according to the very last flyer just six east -- 60 seconds ago went off to the explosionsrlines -- in brussels main airport according to culinary reports. next to the american airlines registration desk. several wounded. the airline being evacuated. all transport to the airport being closed. situation inoving brussels. all of the information come to us from the new service. to continue going to monitor the situation in bringing all of the things you need to know throughout the program. we will take a break it will have more on what is happening
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in brussels. we'll carry on our conversation with the ceo.
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guy: welcome back. you are watching "on the move." if you're thinking of going to brussels, the advice is do not. following the two explosions that have been reported. claudia disguise he is still with us. claudio--aussie -- claudio descalzi is still with us. his is more of the world we live in -- is this more of the world we live in? claudio: we have to protect our people. this is our first hierarchy. -- first priority. we are just offshore. we're in iraq, nigeria. we have to's band -- we have to
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spend a lot to protect our people and workers. considered theis 25%, -- the cost went down 26% on average. there is a gap between inflation drop and within the oil price, 70% of oil prices drop [indiscernible] gap ifhave to fill the want to be able to continue investing. that is to be able to invest in oil price with some margin. caroline: how much of an opportunity is iran? windy
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expect to win contracts -- when do you expect to win contracts? claudio: from our point of view, we're still there because we work. we stayed there to recover our money. withpportunity is there the right contract. caroline: are you at an advantage because you are already there. claudio: i don't think so. think we have to find the right way to invest millions good everybody's cutting investments. when you have to start again in a new country after years of embargo, it is not easy. focused to develop users.
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positive that iran is coming back. cfo and heed to the is tried to sell plans to iran. to banks that were willing provide credit finance. how big of a problem is the financing side of the iran story echo -- story? claudio: not just in iran. product to look for a that is good on returns. it will not be easy. you can show the bank that you can get your money back, in our case, it is different because we work with our equity. invest in the upstream business.
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risky so the injury is too high to test ricky -- it's too risky. the injuries too high. caroline: talk to us about asset class. 7 billion is up for sale per it his first? how do you choose? sale.up for how do you choose? claudio: we have a big stake. that was arduous because we are very successful. working in mozambique because they are 50% a big investment and it makes sense to
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reduce our stake. mozambique, we have other big assets. we own wanted to percent. -- we own 100%. guy: you are cutting investments. together? still fit claudio: we are a good production. invest, it is not now the right time. we had a discovery last year that we were developing a field offshore. it is not the main investment. our main investment in egypt now , mozambique and west africa where we discovered billion in billion of oil. better andon will be
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we are going to invest again. you just can ik ask you about the dividend? -- can i ask you about the dividend? bp is 8%. do you think it is a good idea to give your balance sheet the dividend? claudio: we cut the dividend last year. [indiscernible] the dividend in each company is very important. [indiscernible] it may not be a priority for the company. dividendid is kept our [indiscernible] our balance sheet is sustainable , we are shifting
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investments on assets less costly. we said that we are going to grow by 3%. caroline: you're competing with the likes of bp, right? i don't know someone chooses to have a in oil major in their portfolio. chill pays this much. is there any pressure -- shell is this much. is there any pressure? claudio: i don't think so. you look to future of the company. you look the system of the investment. the yield on your dividend. it is deeper than the dividend. caroline: thank you so much. what a great conversation. guy: thank you so much for your time.
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we are following news of the brussels. the airport evacuated. let's get the latest. let's join jones hayden. -- jones: we have had two explosions at the terminal here. they happened in the departures lounge. we are trying to get the information as reports there are several wounded. several injured in these two explosions. there were not exactly simultaneous but the happened very close to each other. they have been reports of some people being killed in these explosions. we have not verified that yet. those reports are out there did they have evacuated the airport. they have cut off all flights. they have cut off all access roads to the airport. only emergency vehicles are getting through at this point. we are still trying to see what is going on out there and what is happening. jones, flights diverted,
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airport closed. what iswe know happening within the departures lounge? do we have any details of how serious these -- on how serious these exposes were? jones: we do not have exact information on that or verification. this comes shortly after the belgian police apprehended one of the main suspects in the paris bombings of last year. certainly people are thinking about that as they are looking at these images onto the of what is happening -- on tv of what is happening at the airport. guy: has there been a raise in the security level around brussels which is been high? jones: we are at the second highest level after they friday.ded absalom on they decided to keep the terror level at the second highest level.
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the feeling is the threat had gone down a little bit, but it had not. they kept it at the second highest level we had no indication that there was anything imminent today or that the airport would be a target. it was a general terror threat level for the whole country. is the euro still being affected? are we seeing other notes being affected by the attack? jones: i have not heard the euro has been affected at all of the trains and assets to the airport itself is affected and -- affected. i think the other airports r.o.k.. ok.irports are they are trying to contain it and figure out what went on and deal with the situation. guy: jones, thank you very much indeed. joins hayden joining us from our brussels bureau following the attack. i want to see what is happening with the market as we head into the open.
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did you session softening over the last 15 minutes. what has happened pushed 9/11 -- if this is a terrorist attack has become lower and lower. equities lower.
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guy: before the european market opens. i need to update you on what is happening in brussels this morning at the airport. ryan chilcote is on set with me ryan bring us the details. ryan: two explosions when to stand and brussels airport. one dead and several injured good these explosions happening at before 7:18 this morning. that is when we got the first report at london time did the two explosions -- london time. the two explosions happened next to the american airlines desk inside the departures lounge. that caused quite a bit of disruption as you can imagine. guy: the airport is closed now, isn't it?
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like all of the transfer links have been shut down. several flights that were headed for brussels have been diverted. people very concerned that this was a terrorist attack it officials have come out -- attack. officials have not come out and said that. guy: down just a touch. the market is opening up. mr. details with caroline hyde. harris: there is some risk aversion -- caroline: there's some risk aversion on the back of these tragic events that is happening in brussels. the european stock market, the ftse 100 down. we're going to be keeping our eye on the airline did easyjet is the worst performer. iag, and on the downside. the hotel stock thought they hit. airlines, a concern. yet to confirm what is behind these two explosions. there have been two explosions
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in the brussels airport. we have seen the ftse 100 open lower. it is the hotel stocks on the at -- on the downside. clearly keep an eye on those industry groups. not only stock -- not one single stock rising in france. you are getting pmi data coming out of france. that is the manufacturing data and we are expecting growth. europe unchanged. look at this in terms of risk aversion, your singled rounding up higher. -- you are seeing gold rounding up higher. then turning around as we head toward initial report from the belgian press that we are seeing an explosion in brussels. down goes the dollar, up goes the yen. you're seeing gold on the downside this morning. it was in the green. saying they are going to see some sort of moderate
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increase in price. these to end on some of key things to watch out for, we are going to be looking at the move on easyjet, ryanair. currently down 2.5%. down 4% on easyjet. .uy guy: caroline mentioning the pmi figures. we will work on what is happening in belgium. we are going to be going to the events and talking about what is happening there. emi figures out as well. the data out of france looking pretty strong, 51.2. a forecast of 49.5. impressive data beginning to emerge from the european economy. let's bring in sharon bell. sharon, i read your notes. you talk about investors sitting on the sidelines waiting for the data in europe to improve before they start to make a call on whether or not they want to put money back to work.
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is this the thing we are looking for? sharon: yes investors have been investing -- u.s. investors have been investing. beside flood of money into your -- you saw a flood of money into europe. it started to slow down, that buying. it hasn't come back at all. they have been skeptical about the european data. you have had lower inflation data. you have had more action by the ecb. that is helpful. you have had credit easing aussie and that is helpful -- credit easing policy and that is helpful. it is a question of whether it is enough to make america back into europe. guy: how high is the bar? sharon: the bar has gone up because of these global risks. because you have had. it's.
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-- you have had full stops in japan and europe. thing investors are worried about. i think because of that u.s. has been quite skeptical. guy: is it just the data that is spooking them? you have exit -- you have brexit. we don't know what is going on in brussels this morning, the potential terrorist attack. sharon: i completely agree. there is plenty of global risks out there. premium concerns about the eu referendum. the applications of that for europe. the miner crisis which is back again in the summer in a large way hit the headlines and hit investors concerns in the u.s. it is how europe deals with
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these things. so far europe has not been able to completely deal with all of these threats from terrorism and the migrant crisis. guy: what is the muscle memory of u.s. investors when they look at europe? we came to greece and out the other end. we found a way of muddling through. the migrant crisis feels bigger. the brexit is very binary. sharon: i don't think every thing has been bad. they started investing heavily in 2014 after draghi committed to keeping it together. i think investors have not been -- for a long time in europe. they came back, started investing in europe. to some extent they have been right. they do quite well. you have seen quite a bit of policy action by the ecb.
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it has not been a disaster for them, but in the last year they have not seen a lot of returns. european companies, you pointed to the pmi data which is been ok, but european company earnings have been very poor. it was in line with expectations but expectations have been down. that.e will talk about sharon bell will stay with us. we have to think to bring you what is happening in brussels. we have some of the shocks coming out of the equity did we see the smoke in the background of the shot. you can see people running away from the terminal building as well. this has been taken from the catwalk overlooking. i encourage you to go to top live. we have people running on this event. we will bring you everything on
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what is happening at the airport . the airport has been closed. we have seen an evacuation. transport links have been cut. we don't know what is happening elsewhere in the belgian capital. we will bring you details of this year it we will get more on what is happening in belgium. we'll bring you more on what is happening in the markets. equities have opened down. we will head back to brussels when we come back after this break. ♪.
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guy: 10 minutes into the equity market session. news that there has been an explosion at brussels airport. let me give you an idea of what the market reaction to all of this has been. at a headline level, markets are trading a little bit softer. certainly softer than they were when the futures we were predicting for we had news of these attacks. the market is trading lower, down by around .7% did if you take a look at -- .7%. hasou look at how history worked its way through the stories. it has been diminished as we worked our way through a series of terrorist events. if you look at what has been happening with the airline stocks, they are taking the news a little bit more badly than the markets, understandably because you will see a ripple effect.
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it is going to be interesting to see how each of these airlines, hotels groups deals with this event. let me make that clear, you want to follow this event? let's go back to our brussel bureau -- our brussels bureau. an event and what details can you bring us? jones call at least -- jones: at least 11 people have been killed. the explosions were early this morning. the were about in departures lounge did -- lounge. we are still investigating. we don't know who caused the explosions. who is responsible. we have reports of several people being injured as well. traffic into the airport has been diverted to other airports in belgium.
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traffic into and out of the airport has been cut off as well . only emergency services are allowed in at this point it it is up -- at this point. it is a bit chaotic. they are still trying to figure out what was the cause. who were the perpetrators. guy: this follows on the heels of the events only a few days back. our people drawing a line between these two events? jones: i don't think you can help but draw a line. on friday, they captured after participantthe only in the paris attacks from last year who was still alive. molenbeek.ed him in the security forces made headway in that investigation. now this certainly seems like it is connected. there is no evidence at this point of who planted the bomb.
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that is what people are thinking about. it adds to the climate of fear and panic. that had settled down in brussels but now it is sparking back up. fromwe are getting reports local media that a third bomb has been found at the airport. that one did not detonate. jones, what else is happening in brussels? talk to me about what is happening around the office? at the euro stoxx terminal? are things being shut down? jones: at this point, it seems like other things are operating ok. we don't have an indication that the euro store has been affected or the trains from brussels to brussels -- to paris have been affected at this point. it is only the traffic into and out of the airport that is shut down.
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that includes the planes as well as the ground traffic. we are still trying to get more bombmation on the third that is not been confirmed at this point. we're looking into that. over the past four months, brussels has gotten used to this kind of stuff. a year ago or in january of 2015, when they had the scare out in eastern belgium, it kind of got on everybody's radar. over the last year or so, we've kind of come to live with the terror scare did -- scare. this ratchets it up even more. you don't want to have this kind of stuff happening at the airport. people are not panicking on the streets, they are just trying to look and see what is happening. we have not connected the dots between the arrest on friday and this attack today at the
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airport. guy: thank you very much indeed. jones hayden joining us out of brussels bureau. sharon bell, i'm going to ask you to do an analysis. -- i am not going to ask you to do an analysis but i am going to ask you about the reaction function. my experience in watching these events has been that the kind of knee-jerk has become smaller and smaller. the market not immune to these events, but certainly understand better how to price in and function around them. sharon: i think that is fair. we have had a lot of instances in the last couple of years. the markets active neighborly to all of them. up, you have more safe assets at the time. it is indicative and we have had a lot of volatility this year. it is a part of the risk
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generally that we see globally. political risks, geopolitical risks, terror risks. not this be delivered but just general risks. guy: how good is the market at doing that? i have never seen political risks as high as it is now. when you sit down and you build your models and plug in numbers and you try and rationalize and understand and quantify some of this risk, how easy is it to do it? sharon: it is extended to go risk to price in. have -- you look at equity market volatility at the back end of the year, there does not seem to be much priced and yet. brexit a little more priced in. how good is the market at dealing with this? sharon: it is difficult to price
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because these are one-off events. we would tend to agree. we think the market is pricing a little too little test is pricing too little volatility in their -- is pricing too little volatility in their. it has been high because of central-bank action. volatilitya lot of -- it is high because of political risks. the trump campaign or the eu referendum indicates the u.k. or even the elections in germany. a lot of risks have led to volatility in share prices. we think volatility is want to stay high. think i will focus automatically at that point? is there a bias? sharon: a little bit maybe. u.s. investors want to invest in
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places like japan and europe if growth or veryic easy policy which they can predict from that. in the last eight or nine weeks, we have seen outflows from europe. we have seen outflows from asian markets. this is a risk aversion. guy: the market does not discount the event. we heavy discounting mechanism. is it such a thing as the market giving to down on itself. ?- getting to down on itself sharon: volatility is going to stay high but our view is that in flat on the market. lots of volatility. within the index, lots of movement across sectors. the oil sector, the mining
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sector at the beginning of the year and bouncing very strongly. people rotating and utilities because of the credit easing by the ecb. a lot of activity within the index. the index going up and down but very little if you think of the past year or 18 months. put quiteare going to a high risk premium on that. guy: thank you very much for setting some of through the breaking news with us. sharon bell joining us from goldman sachs. to update you, we are awaiting a press briefing from the police and brussels. we will have more on that next. -- police in brussels. we'll have more on that next. ♪
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guy: 9:22 in brussels. let me talk to you about what is happening in the belgian airports where we have seen that nations this morning. let's get the latest and where waiting for an update from the belgian police. ryan chilcote joins us. what do we know? ryan: conflicting reports when it comes to casualties per it wherever it reports of one did, several wounded. -- one dead, several wounded. and is part -- a newspaper reporting 11 dead, 20 wounded. they get the numbers wrong. we'll have to watch that. we're learning a lot more about the nature of what appears to be an attack. three bombs reporting --
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reported. off,nt off, -- two went one did not good -- one did not. the american airlines stand. a third bomb stand reportedly before it went off. you know how it is at the airport, all of these airlines are next to one another. --should be ascribing these very close proximity, two bombs go off. a lot of people make mistakes in their initial descriptions. within the last five minutes, we have heard there were reports of gunfire preceding these explosions. a lot of this, and no officials have said this just yet points to what looks like an attack. what we have not heard officially yet, but when you have reports of gunfire, bombs going off at an airport on the
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week following what was the detention of the suspected mastermind of the paris attacks. there will be many people saying that very soon. guy: the airport is now closed. the transfer links have been cut. belgium has been on an elevated security level anyway. still working and still selling tickets. ryan: brussels airport is a no go zone. a lot of the airlines are diverting from the airport. they're looking at diverting some of their flights. easyjet has diverted some of their flights. people are being told not to go to the airport. the airport has been evacuated. some of the highways and train link has been closed off. the children -- the belgian police want to close off this area. they want to make sure nothing
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else happens. on friday, we had eight -- we had an eu summit in brussels. stateeople, 20 heads of in one part of brussels had no idea they had this major security operation underway. see is in gaining of understanding of what happened here and make sure they contained it because the biggest concern would be this could spread. guy: we will continue to monitor events for you. equity markets have softened up. where you want to go if you are go look at top, live if you're interested in this event. equity markets have softened up. there is not physical sector in positive territory. let's go to caroline hyde. caroline: amid these events, we
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have to look at the market reaction. notably, travel and leisure stocks are the worst performers. hotel groups and airlines, apple accortel -- act core -- down on reports of the attacks. ryanair among them. look out for easyjet, air france. all of the airlines feeling the pain at the moment because of course we wonder what the ramifications are. guy. guy: i want to take you back to what is happening in the belgian capital. we have had an explosion heard at a brussels metro station. we talked moments ago about whether or not there will be other transport for structures expected. -- structures affected. the euro star was still operating. ryan: details are sketchy did it is clear that this looks like it
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was an attack. it has all of the hallmarks of a correlated effort. a lot of concerns about all of -- about whether all of brussels a safe. guy: will take a break. we'll have more on the story next. ♪
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guy: welcome back. i need to update you on what's happening in the market and in the belgian capital. equity markets continue to soften. this is the stoxx 600, the selloff now more pronounced. it is certain to drop, not by a huge magnitude, of the euro is weakening. there have been attacks on the belgian metro system. in brussels. ryan: the belgian business daily is reporting that they heard an explosion at a brussels metro station. we're also getting reports from other media that they see smoke
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emerging from the metro station in brussels. guy: this is very close to the center of the eu district. ryan: it is. guy: and that is quite interesting, because that brings it front and center. ryan: that's right. it's also further evidence, if you will, although it haven't seen any officials calling it a terrorist attack, we will get an update any moment -- guy: brussels metro are saying all stations are closing. ryan: this obviously follows the attack we have been following for the last hour. three bombs found at the airport, one went off. guy: let's go to brussels -- jones hayden is standing by. we're seeing this incident spreading to the center of brussels? jones: that's right. there is some kind of incident at the metro station, very near the headquarters of the eu here in brussels, just one metro stop away.
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the police have cordoned off the area, so we're assuming there is another explosion that has gone off in the metro. fewmetro announced a minutes ago that they are shutting down the whole system as a result. this comes after these bombs went off this morning at the airport. we're assuming, people are assuming, that this is related to the capture on friday of the paris terror suspect. he was taken here in brussels at the center of all this terror investigation for the past four months. now it looks like something coordinated is happening now in brussels as a result of that. guy: give us a sense of the security situation and the buildup to this event. we know the country has been on an elevated level of security. describe the level of security instance, in
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and around where you work, at the center of brussels. apparently been an attack in the last half-hour, one-stop away from the office here. it's very close. the police have courted it off. hassecurity committee raised the terror alert to the highest level, to four. that was in the wake of the airport attacks, so now the metro attack is adding to that. they decided to keep it at three after they captured the terrorist on friday, but now something big is going on, and they increased it. we have soldiers on the street here, since november, since the investigation of the attacks in paris. in fact,, since earlier because they were terrorist threats last year as well. those are the soldiers, in the police, out there in force. they are being redoubled, to s
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whae what is going on and if there will be other things. guy: jones, the local media are reporting -- there seems to be a suggestion that maybe we have new an attack at a station give u. give us a walk around, the area, where the council is. these are the metro stations these people will be using. jones: right. right atan station is the center of the european commission area, headquarters here in brussels. under the european commission headquarters building, and is on the street right by where the european leaders meet every three months or so, or more often if there is
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an emergency. they were just here for the eu turkey summit last week. it's right in the heart of everything that's going on here. we haven't confirmed the reports about shuman. the malbe station is next on the line, a little ways away. we know something has happened there. it seems to be a coordinated attack, both at the airport and in the heart of the city, when this follows on the capture of this primary suspect from the paris attack. guy: jones, give me a sense of what next. a stageussels is on basis, effectively being shut down. the metro system, the airport, the core transport infrastructure. it looks like we still don't have any details about the security situation, but we
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understand -- give me a sense of what this feels like in brussels now. is this something that was anticipated? is this something that people had been expecting? we saw in places like turkey where key events have been canceled. what is the situation? jones: well, people are still coming to grips with the situation in terms of cancellations and that kind of stuff. i think we are going back to a lockdown situation; this is what we had back in november, in the wake of the paris attacks when the investigation shifted to hear. scare the week after the paris attacks and they shut down the metro. they didn't shut down the airport but they shut down the metro. went stillsically for the weekend, not much was happening, soldiers all over, downtown was very quiet. i think you will go back to that
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situation and it will be even tougher because now it looks like something coordinated has been planned. to security forces are going want to make sure that nothing else is out there, that they know nothing else is going to happen. the side ofr on being extra forceful insecure. the lockdown we saw in november that everybody complained about is going to be back, i'm afraid. i imagine there will be more .,ncellations of things, etc if for no other reason that people can't get to them due to the metro being shut down. as far as i know, the euro star trains are running, but they have extra security. euro star put out a notice to allow much more time to get through today. that may have changed in light of the recent attack on the maalbeek station in whatever is happening at schuman. we will find out as soon as we can. it looks like we are definitely
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heading into some sort of lockdown situation. guy: thank you. we will be back to you shortly coverage. into more i want to tell you what is happening with the financial markets. this is euro-dollar. the euro has fallen on the back of news of the belgian capital. what i think is very interesting here is this chart. euro-dollar selling off; i will show you what is happening here. this is euro-sterling, euro-sterling is spiking. i wonder if the market is extrapolating. they're saying this event in brussels will have a ripple effect into the brexit story -- maybe convinces more people to leave the eu because the eu doesn't have a grip on it security apparatus, right at the heart, you could argue, of the eu machine. what you are seeing is a selloff in your-dollar and a ripple into selling of the pound versus the euro, the derivative of that
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story. i think that is an interesting aside to what is happening. the implications of this may be felt a little further afield than what is happening in the belgian capital. we will have more on that story and will return in just a moment, up next. ♪
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guy: welcome back.
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i need to update you on what is happening with the explosions that have not only happened at the airport in brussels, but also in the metro station. if you are a bloomberg customer, go to the top live tliv function; you will get minute by minute tracking. we're posting some pictures coming from inside the airport now. this is a p.a. coming off the twitter account -- you can see the devastation within the airport. we have conflicting reports as to how many people have been hurt or killed as a result of this detonation. you can see security officials here, inside the airport, but you can see the sea of devastation, the ceiling tiles that have come down into the central departure lounge. this is the check-in area in the main airport. looks like it is just in front of the security area as well. we will have more coming out, once we continue our reporting of what is happening. tliv, if you are a bloomberg customer, will give you the most up-to-date situation on what is
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happening in brussels this morning. the market reaction is beginning to ripple around the world; let's get to caroline hyde for some details. weoline: a we starts off, have every single company on the stoxx 600 falling. being hit hardest -- air france, thomas cook, aig, hotel companies, airlines, really feeling the repercussions of the immediate buildup and concern regarding whether terrorist threats are on the rise and what that does to impact our desires to go on holiday and go traveling. tragic effects, tragic events happening at the moment, and we do need to look at what happens across the market. index, the fxtp stock 600 travel and leisure index, underperforming. is clearly down 2.7%, the
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worst performing industry group today. -- to date. --s is your volatility index as to when people want to go out and protect themselves against drops in stocks. we're up 4.8% over the course of three days; this is a three day chart, and clearly, we are seeing a ramp up the nervousness. money going into havens -- into gold, and notably, a big impact on the fx market. look at what is happening to the british pound. the pouncing's, the worst for -- the pound sinks, the worst performer. already, rampant talk -- if you go to twitter, it already seems they are calling for a brexit, aing this tragedy in terrifying manner. the movement into the havens,
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the yen clearly on the rise, the only one. it is coming out of the euro, down 3/10 of 1%. this is the world currency ranker. you can get it on the terminal. it's an easy gauge of what is happening in the fx market. you can see, i leave you once again with the travel and leisure industry, air france on the downside, thomas cook, aig, hotel companies you need to be monitoring amid this tragic news. guy: thank you. as we continue to monitor the situation in brussels; we're joienned now. jones was telling me about the security situation. greg, many people will be asking about how the country on the second highest security level -- we have just seen a major security event in the belgian capital.
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give me the security situation more broadly. well, this certainly has had an increase in security on trains. when you take the train from paris to brussels, you just walk right on the train. now you put your bag through an x-ray machine. there's french police, armed police, checking passports. that was not the case before the paris attacks. there has been an increase in a lot of places, but you still -- in most places, you just walk into an airport, you go through security, but not just walk into the terminal. i wonder if that will change. some places like turkey do have police at the entrance to terminals. that's something we may start to see. honestly, there is no way you can have a filter to go to a metro station, particularly at rush hour. there will always be a risk.
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there has been a lapse of security, but obviously is not everywhere. guy: when i was last in the french capital, the military were on the streets. we saw an extension of the facilities made available to the government to make plain the security presence. i think many people will be asking is that is the new normal, that we will just have to get used to the idea that we will see the military on the streets. guys in camouflage jackets, heavily armed with automatic weapons. is that just going to become the normal for life now in european capitals? greg: i think it probably will be. it has become totally normal in stores; a major department store , even not a major store, just any store in europe now, you almost always have a security guard to open up your bag, make sure you have nothing on. i think that is probably going to be normal for some time. we have had attacks in istanbul, russia, paris.
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yeah.k it's just, when you say the new normal, i think that describes what it is going to be. guy: how will this ripple into policy? the ongoing nature of this threat, the consistency of it now on a fairly regular basis. how does that affect policy formulation here in europe? how does it affect things like what is happening with the migration story? how does it ripple into how people -- talk to me about the wider story. obviously, these sorts of attacks always play into the hands of the anti-immigrant populist party. there is no question. ian migrants have been implicated, but the attackers in paris and the guys rounded up yesterday, they did come back from syria via the routes used by the migrants. these are not syrian refugees who have been accused, but the
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european jihadis who return, using the same routes, often with forged syrian passports. if you are pushing for a more open policy for migrants coming to europe, your arguments have just been rather tattered by what we are seeing today in brussels. it certainly will fortify the anti-immigrant parties. got this recent accord between the european union and turkey to stem the flow of migrants; the accord has been criticized on humanitarian, legal, and practical grounds, but i don't think there is much other choice. they will have to work closer together on putting some sort of order into this flow of migrants, no question. guy: yeah. we'll leave it there. just in terms of the news out of paris, greg, francois hollande will meet his prime minister
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over what has been happening in brussels, and will meet the ministers as well. we think that will have an happen at 10:00 a.m. we are also hearing that the european parliament has suspended the hearings, unsurprising given the closeness of the attack to the parliament buildings, which are aggregated around the area where we think these metro explosions have taken place. what we do know -- ryan chilcote joins me onset. ryan: we are watching two locations -- one metro station, which people are coming from. they have heard explosions and it has been cordoned off. that remains an area of concern to the police. then there is brussels airport itself, where we understand there were two explosions, and a third bomb recovered that did not go off. killing at least one person, according to new reports, perhaps many more. a french newspaper saying as
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many as 11 were killed. i would caution -- it is still early, this attack was an hour and a half ago, and one thing that happens is the casualty numbers tend to change. we understand that both of these bombs were in the terminal, in the departure lounge near the stands where you check in. one was near the american airlines desk, another near brussels airlines. we just heard from american airlines the last five minutes -- they say their personnel have been accounted for, that they will provide information as soon as they have it. of course, we have an ever increasing security operation in brussels, as the police attempt to not just to control these two areas but make sure there are neo more. as we were worrying, the fear is that this could be like the paris attacks, where you have a coordinated attack where you get
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more attacks in other locations. guy: ryan, we will get back to you shortly. ryan is going to continue to monitor the events for us and bring us all the latest details. tliv, if you are a bloomberg customer. make sure you have that open. you can open it and have all your functions open. just make sure to monitor the situation. let's get more analysis on what is happening as it develops. tucci joins us -- he joins us on the phone. good morning. your first reaction to the events we are seeing here in the belgian capital -- can i draw a line to any attacks this morning in the security situation we saw in the belgian capital a couple days ago? well, it is far too early to say for sure.
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at this point, clearly sveryone' thoughts must be with the victims. this appears to be a multiple explosives,k, with no confirmation of guns. it certainly suggests that we are looking at something which sounds an awful lot like the sort of attack that the paris attackers were taking, and the sort of attacks around them. we're planning on undertaking it -- we're going to see a lake, but at this early stage, it is difficult to say for certain that they are directly connected. guy: i ask because, as you say, this looks like something that has been planned with a certain amount of detail, putting something like this together is not something that can be done overnight. as a result of which, maybe it
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was brought forward, but nevertheless it looks like it has been sometime in planning. >> well, one would have thought so, yes. the trouble is we don't know whether this network or group of people who launched this particular attack ar are probay connected to the network's. if they were, they might have reacted to that by accelerate plotting underway. guy: yeah. when you look at what -- the question many people will be asking this morning, here we have a country that has a high level of security. it is already at the highest level of security the country has. it is the center of european policymaking. the commission and council are right next door to one of the metro stations that may have been involved. people will be asking whether the authorities really know what is happening here, and their
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level of sophistication when it comes to intelligence gathering, whether it is still significantly wide. >> clearly, i think belgium has had a problem, and it is something people have been aware of for some time. i think the acute nature of it was compared with the paris attacks and the broader network. but i think the real question is how big and deep is this network, and how far across the european continent is it spread? clearly within brussels you have a substantial problem that authorities have not been dealing with, but now appear to be trying to crack down on, but they are looking at a very wide network of people. disrupting that takes time, and it does take a long investigation and a lot of effort. look how long it took them to track down one of the paris attackers, who was ultimately hiding pretty much where he had come from in the first place. but you can't just go banging door-to-door; you have to do
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intelligence-led investigations. that takes time. unfortunately, at this point, you are looking at what authorities in belgium in particular who are overwhelmed. guy: significance of the locations that appear to be attacks in paris -- a nightclub, a restaurant. in belgium, it looks like it is major transport infrastructure. a change in tactics -- what can i draw from that? >> i mean, to be honest, it is difficult to know. at this point, we don't know who has done this. in many ways, this sort of an attack on public transportation, airports, is the classic terrorist move. airports have long been a target of terrorist plotting. if you think back to the 1970's, the hijackings we saw periodically, and the 9/11 attacks and in russia. it's always a target of choice
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of the terrorist network. guy: we need to leave it there; we are about to run out of time, but thank you very much. we will take a break -- more in a moment. ♪
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francine: two explosions at the brussels airport departure lounge. death and casualty still being counted. the metro shut down. up; thes shooting terrorism in brussels is prompting safe haven buying of yen. airline stocks slide, your friends among the lead decliners. this is bloomberg's "surveillance." europe breaksn, up to the threat of terrorism, once again indulge in, and they have to understand the scope of what w

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