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tv   The Pulse  Bloomberg  May 19, 2016 4:00am-5:01am EDT

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francine: an egypt air flight disappears with 66 people on board. we have the latest from cairo. june's happening with caveats. defending deutsche. ceo john cryan has his first investor meeting since last year's shakeup. and an almost 50% drop in the share price. welcome to "the pulse." here in london.
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i'm francine lacqua. it is an extremely busy day. let's get straight to the markets. we have the fomc meeting yesterday. the fallout from that and the fact that investors had to read price their expectations of a possible fed increase in june. a lot of the immersion marking currencies -- emerging-market currencies are down. 0.6%. down travelf the focus is on stocks. a lot of the airlines -- the stocks are going down. news,we had that terrible egypt deploying naval ships to search for this egypt airbus. they went missing overnight. we have news that it may have crashed near one of the islands in greece. this has not been confirmed. highlymeantime, i
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suggest if you are a bloomberg . go to live gordha this is our up-to-the-minute blog. there is a press coverage an hour and a half from now. we keeping up-to-date with the and the crisis meeting that france is having. nejra: the missing egypt air flight from paris to cairo reportedly crashed in egyptian airspace. a-320 came down there a greek island. communications were lost which has 56 people on board at about 2:30 a.m. cairo time. earlier, egypt deployed naval ships to search for the plane. federal reserve officials are looking to raise interest rates in june.
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to the u.s. economy to confirm -- that slow growth in the first quarter was temporary. minutes of the april meeting use the word june six times. that signal follows several fedches by regional presidents warning investors not to dismiss a midyear hike. bayer shares are lower after monsanto said it received an unsolicited takeover offer from the german company. bayer has confirm the offer and the world's biggest -- says the proposal is nonbinding but has not offer any more financial details. is $42o's market value billion. is exploring a potential zeal. monsanto failed last year and a forbillion deal syngenta. you can find more stories on the
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bloomberg at top . francine: we will keep you up-to-date with anything that we here in terms of breaking news on the back of this egypt air, paris to cairo fly. it has not been confirmed that this plane may have crashed near one of the greek islands. onto our biggest corporate story. off ase bank's -- kicks we speak. the meeting comes amid plunging revenue. shares down almost 50% since last year's meeting. john cryan is due to address investors any minute now. we will bring you those headlines as they break. matt miller is on the ground waiting for the agm to kcick off. i can't convey how much pressure mr. cryan is under. he speaks to any ceo in london,
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and they say, i'm glad i do not have his job. what are they expecting today? matt: you spec to hear his plan to turn this bank around. we know the broader details, he has got to convince toreholders and he's got convince potential shareholders that this bank can survive at all. i mean, he has got to cut costs so deeply that it is going to cut into the bone of the investment bank. not to mention the fact that he's got lawsuit after lawsuit. we heard again this morning about a new lawsuit for rigging some fixed income assets that is going to cost billions and billions of dollars. and already has cost them billions of dollars. this is a company that needs to raise capital again. and in the last three capital increases they race $22 billion. the market cap is less than that now because the shares have lost
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50% of their value in the last year. this is a bank that is certainly in crisis. john cryan, however, is seen by most of the investors i have spoken to as may be the one person who is capable of doing this restructuring and getting this bank through the crisis. thequestion is, can he be visionary leader to get clients to come back to start the bank on the path to profitability once again? that is what he has got to convince shareholders of today. francine: he certainly does. we will keep a close eye on the agm and get back to matt miller with breaking news. matt miller on the ground at the deutsche bank agm in frankfurt. let's get to the latest on the egypt airplane that disappeared. we are joined on the phone from cairo by bloomberg's north african bureau chief. if you look at the up-to-date situation, it we are having conflicting messages about what could've happened to this plane. are you hearing anything about report suggesting there
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had been an accident, that this plane crashed off one of the greek islands? >> right now to egyptian officials have not confirmed anything. they have been very pointed in keeping allthey're options open at this stage and that there is no official confirmation that there was a crash. they don't know what brought it down or what happened to the plane, i should say. they are classifying it as missing. and that is pretty much all they are willing to say. there had been an earlier report, or statement from egyptair saying there was a distress signal received from the plane by the egyptian military. the egyptian military subsequent leak came out and said they did not receive any distress signals. subsequently came out and said they did not receive any distress signals. it has not been confirmed. it is an of course, ongoing investigation. we know that egypt has deployed some naval ships. do you know how wide the perimeter for search and rescue
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is? >> right now, no. the plane went missing about 180 kilometers off the egyptian coast or about 10 miles into egyptian airspace. that is unless we have heard. you know, where -- how far they've really spread the search perimeter out, i am not entirely sure at this point. 's difficultknow it because we are altering to find out, we have people on the ground gathering information. the situation is very fluid. there is also a number if you have relatives in the region that you can call. the us a sense, this is not first time there have been incidents involving egypt and airplanes. >> no, not at all. and this is really kind of unfortunate for the country. in march, there was a wasacking, a domestic -- it hijacked to cyprus by a guy who said he had an explosive vest.
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turned out he did not. it was a domestic issue. in october, and this is the major one, there was the metro russian passenger jet. about over 220 people dead. he islamic state's affiliate in egypt claimed responsibility for that. it just in officials have yet to not said, they have terrorism was the cause and they are saying the investigation is ongoing, even though britain, have reached u.s. this conclusion that this was in fact an act of terror. francine: thank you so much. our north africa bureau chief. just some, a little bit of information. we had the headline about 20 minutes ago saying that the plane may have crashed - if you look at the flight path, it is possible it had crushed there.
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although officials on the ground are telling bloomberg that it is way too early to reach any conclusions about the plane, including calling the incident an accident. for the moment, we don't know. greeks been speaking to officials on the ground and saying it may have crashed in one of the islands off greece. it does seem to be on the flight path. in the last 10 minutes we have the egyptian stock exchange open, down 1.2%. if you look at the travel and leisure stocks, they are down around 1.5%. .an follow this on ty cairo flight that finished with 66 on board overnight. it still has to do a lot with a fed. if you look at the industries that are losing the most. travel stocks are under pressure. they are down overall as an industry by as much as 1.5%. basic resources -- they're down
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3%. we will have plenty more on that come on egypt, and on this stillir flight vanishing. we know 66 were on board. you can, of course, not only follow the blog but tune into our radio and television. we will have plenty more on that possible flight crash or flight -- we don't know. on that egyptair flight. stay with "the pulse." s oil has towards $50, kuwait's acting oil minister says opec's strategy to defend marketshare is working. we will bring our exclusive interview next. as more details emerge about the missing flight, we will keep you up-to-date and bringing the latest from france and the middle east. as police use tear gas on protests, we will report on the growing political and economic crisis gripping venezuela. ♪
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francine: welcome back. this is "the pulse." let's get straight to the bloomberg business flash. $1.4: tesal tla to sell billion and stocks to help pay for an expansion that includes an upcoming electric car and boosting production to half a million vehicles in 2018.
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the sale will be $2 billion with the rest of the shares to be sold by elon musk because of tax obligations he is exercising. haves in france's -- jumped this morning after it said it would merge with fmt technology in a $13 billion tie up. the all stock deal will see shareholders get to shares in the new company for every technip share. the company says they will deliver $400 million in annual pretax savings in 2019. merck has reported profit that beat estimates. earnings, and exceeding some cause, rose 27% to 1.1 billion euros. thiss are higher in morning straight. thomas cook shares have slumped this morning after the travel operator said underlying earnings before interest and
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taxes will be at the lower end of estimates. the company says that summer bookings have fallen 5% after terror attacks in turkey and belgium. that is a bloomberg business flash. francine: thank you so much. as oil approaches $50 a barrel -- opec's strategy is working. that is the view of kuwait's oil minister. we go live in kuwait city. tell us more. will the seven-month high hold? he seems fairly definite, the $50 level is going to hold. but i certainly got a sense from deputy prime minister, oil minister and finance minister -- the opecat for meeting. we are perhaps underestimating that thus far. is a theoryt share that was implemented by opec the
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last, coming down from 2014. to me, i believe the theory has been working well. see better prices in the market. demand has been increasing. part of production in canada, libya and nigeria and the shale oil. it seems that over 3 million barrels a day has been cut already. as the reports coming out. to maintain 92 million barrels a day, you have to have a strong investment. and seems that with over the last two years, 30% of this demand has been diverted or canceled. this tells you that demand will be picking up. and this is the forecast everybody has been talking about. so, probably will see more stabilized markets, the meeting of the june 2 is coming.
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yet, to have a dialogue in that meeting is very important and then we can determine our steps forward. manus: would you agree that the market is rebalancing? would you use the phrase rebalancing? if so, do you think that rebalance is by the end of this year or the first quarter of next year? >> clearly. now, some of the -- of rary, but its tempo helps the price now. now, i think the forecast everybody has been talking about heading towards the end of 2016 should be thae balancing of markets between demand and supply. it came early only because of these, in no, the fires in canada and the issues in nigeria and elsewhere. is thathe sense i got
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he wants everyone on board he wants full commitment from everybody. the kuwaitis are not waiting for everybody. they are building up market share, going for 4 million barrels a day. they are going to spend $60 billion between now and 2020. this is a nation with a huge sovereign wealth fund, the son nation with a deficit, and this is a minister on a mission to reform and knock that deficit into the past within five years. a lofty ambition. francine: lofty ambition, and of course, this is something that a lot of kuwait's neighbors are trying to do as they are so relied on the price of oil. now, before we talk a little bit more on oil, before we go on to what we heard from the fed yesterday, i want to bring you up-to-date with what we heard from the egyptair plane. egypt still confirming they deployed naval ships to search for this airbus. earlier this book to gree --
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they spoke to greek officials that'saying it may have crashed off a greek island. we cannot confirm that. the share price reaction. the egyptian stock exchange is down 1.2%. travel stocks under quite a lot of pressure on the back of fears that investors have what happened to this plane. we will bring you all the news conferences. we are expecting one in an hour from now, and into our spirit one from the french government. one from the egyptian government. there was a little bit of pressure -- down 16.5%. this is linked to what federal reserve saidk how you price risk. the fed yesterday says it wants to raise u.s. interest rates, possibly in june. minutes of the april meeting use the word "june" six times in a policy context. now it is up to the u.s. economy to confirm the view that slow growth in the first quarter was
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temporary. on the bloomberg, the market is signaling a 32% chance the fed will move next month. our guest for the first part of the show. ubs global market strategist. thank you so much for coming in. a very quick comment. it's very difficult as an investor or market participant to talk about this possible egyptair plane vanishing, but how is pricing risk? if we have a geopolitical headwind or something like this which we do not know what it is, but feels uneasy, how should markets react? thesehink generally terrorist events tend to be very short in terms of effects. even 9/11, we saw markets fall but it was just a blip. to 1930, that was a real event. 2008, a real event. but terrorist events tend to be fairly short-lived, particularly
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because they have to -- impact earnings. to impact earnings, it will take a catastrophic event. francine: overall, this basically links us back to the fed. maybe we are not pricing risk the same way we did 10-12 years ago. do you think the fed can normalize in june like they have hinted many times? but it is the first time, despite official saying they are ready to act, that the markets are sending -- >> it is amazing. june look at the possibility, it was 30%. finally we have got the market moving up to meet what the fed is telling it. the fed was quite perplexed as to why the market was not picking up on their close. many of the officials have been saying that june is live. this is good. it shows that when they actually do hike, it will not be such a n impact.
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francine: are markets mispricing, or they do they believe just janet yellen? >> we seed across all markets. a level of risk appetite which is like 2009 in terms of the ability to buy equity -- we see it across all markets. people are pricing in a recession in europe. in the u.s., also, quite bearish. francine: june hike seems very punch, because we have the brexit vote after. >> that's right. there are lots of potential bombs in terms of volatility around june. we have the referendum on june 23. just before that, june 16 we have got the fomc meeting. it mentioned it in them meeting this time that there would be the referendums. we also have the spanish elections. many interest-rate hikes are you expecting? does it mean that dollar rally
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resumes? are we finally going to see the diversions we have talked about so much play out? >> we think so. we are expecting two hikes. as long as they hike in growth, that is not such a big deal. if they hike with weak growth, that is a big deal. we have goldilocks inflation moving towards 2%. that's fine. francine: let me bring you over to the bloomberg. you to talk for about containers. sluggish local demand. you see -- sluggish global demand. year decline in the past and a half. if you look at what this means, basically, we do not have that much trade. when you look at the dangers of politics and you look at the container ship and lay on top of that a fed that's normalizing, what kind of growth are looking at?
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>> we think there will be fairly good growth in europe and the u.s., because both of them have a lot of trade generated by internal trade. the eurozone, for example, a lot of the growth if you break it down by region, it is due to trade internally. so, it doesn't dependent on external demand to generate growth. u.s., also, fairly close economy if you look at the numbers. in terms of dependence on e.m. from the u.s., it's nice to have it, but it is not crucial for growth. we are still improving for 2016 and 2017. francine: there is no risk of bring us back into recession? >> unless it's a mess of policy mistake. francine: what would that look like? it is not at 15 basis point hike from the fed? >> it is hiking into we growth. that is a mistake we saw previously and we saw the effect
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on markets. i think that is what we should be looking at. francine: like a temper tantrum. >> potentially. as long as markets are not surprised by the world -- the world the fomc sees. we have seen that synchronization over the last week. maybe that will not be a problem. francine: no matter what happens, volatility is here to stay. how long is it here for, 12 months, 18 months? >> as i said, there are lots of known-unknowns. june will be a period where there are lots of events that could cause spikes and volatilities. it is something you need to learn to live with. francine: great pleasure to have you on the program or the latest on world growth. of course, all of this volatility -- he'll be joining us a little bit later. when you look at the main story that we have today, it's one this egyptair plane. egypt saying it is to point naval ships to search for an
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that went missing overnight off the coast of the north african country. we know there were 66 people on board. we will bring an up-to-date -- on that. we have a news conference coming up next. ♪
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welcome to "the pulse" live from bloomberg's european headquarters in london. get straight to the bloomberg first word news with nejra cehic. aira: the missing egypt flight from paris to cairo reportedly crashed in egyptian airspace. according to an unnamed source, the airbus came down near the greek island of carmakers. communications were lost with flight 804 which had 600 people on board. earlier, egypt deployed naval
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ships to search for the plane. federal reserve officials want to raise interest between june. it is up to the u.s. economy to confirm their views that slow growth in the first quarter was temporary. minutes from the fomc meeting used the word "june" six times in this context. the central bank warning markets not to dismiss such a move. bayer shares are lower after it made a takeover offer for monsanto. the seed maker says the proposal is nonbinding but hasn't offered details. earlier this month, bloomberg yer wasd that ba exploring a potential deal. monsanto failed last year in a $46 billion bid for syngenta. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus
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around the world. francine: thank you so much. markets down this morning. let's head to the bloomberg with mark arkin for your asset check. we are seeing a lot of pressure on leisure and travel because of this egyptair flight. mark: the worst-performing industry group, basing resources declining. only two industry groups are rising, banks and insurers. travel and leisure among the declining companies today. stocks are down by 0.6%. the june meeting is live. the minutes showing that most officials judged it would be appropriate to raise rates in june provided incoming data were in line with the second quarter pickup. the labor market continued to progressed.d
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noted that their view rested on three points, inflation, labor markets, and their sense of the risks around that outlook. that is the hardest one to define. this is our lovely function, interest rate probability. look at june. 32%. i'm going to change the date to monday and you will see how that percentage changes. 4% on monday. we had stronger than expected retail sales data, regional fed presidents suggest that this year, two rate hikes might be warranted. the icing on the cake, the minutes last night, the april minutes which said very clearly that fed officials want to raise rates in june. fascinating to see how the dollar fared. it jumped. this is the bloomberg dollar spot index in 2016.
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this measures the dollar against 10 major peers. in twohighest level months. there it is, highest level since march. it fell to a one-year low on may 2. and then, it has rebounded. the fed is in a bit of a bind. if the dollar rallies, it could undermine growth. it could he rode the case to boost borrowing costs. at the back end of last year, the dollar surge since the middle of 2014 hurt the outlook for growth in inflation, contributed to the fed delaying raising rates until that december hike, the first hike in almost a decade. the fed in a bit of a bind when it comes to the dollar. the big question when it comes to bond investors, where they caught napping?
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when you look at the monday interest rate probabilities, bond investors were pricing in pretty much a 0% chance with the rate hike in june. the yield on the two-year has risen to the highest level since march. we are at 0.89%. last march, we are 0.74%. we've risen 16 basis points. it,'ve said, i started with i'll finish with it, because of the fed minutes, june live. francine: thank you so much, mark barton. deutsche bank shares dropping in the past year, erasing 20 billion euros in market value. today, we are still seeing that. live news conference with john cryan and his management team. we just heard from john cryan that deutsche bank is committed to the markets. otto dichtl joins us now for
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some analysis. great to have you on the program as always. we just heard from john cryan and his team, saying the markets unit is essential. there has been so many questions about the viability of deutsche bank. what can john cryan say to reassure the markets? otto: i would imagine that he's not going to reinvent this restructuring program that he has started late last year. but still, regarding the global markets unit, there's been some debate, whether deutsche bank organizationally split that from the investment banking division last year, people are thinking maybe this is a bit of a precursor to some much more aggressive cuts to that unit. i guess giving a commitment that it is and remains core to deutsche bank is certainly a significant step. francine: will it be enough to
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reassure the markets? they are shrinking businesses, a lot like their rivals, like credit squeeze. there's not much good news coming out of it. how do you get a to do -- give a definitive, we are on track, we are not going bust? deutsche bank certainly has a lot to prove at the moment. my take would be that it is now a matter of study, gradual implementation of many of the steps they have outlined. at the heart, it is essentially a cost-cutting program, making progress on that, which has not really been a strength of deutsche bank, i would say the cost control would certainly help a lot. i thinkame time, and that's where this earlier comment comes from, the concern, if you cut cost too much, too
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aggressively, do you impact your franchise? revenuehen impair your generating ability? that will be the strong balancing act, especially in the markets. valentin -- francine: balancing cutting the fact without cutting any of the muscle. let's go to frankfurt and get an update from matt miller on the ground. john cryan saying that accusing the bank of hiding something is simply absurd. will all these rumors be put to rest? i'm not sure those rumors could he put to rest today, but john cryan does have a chance to put his case forward to shareholders. shareholders are angry, but they are willing to listen because he's a new voice on the board. they are angry with the previous management board.
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all the shareholder groups i've spoken to send they will vote not to discharge previous members of management but they will vote to discharge john cryan, giving him the vote of confidence he needs. still they have reservations about supporting this bank and they want to hear a plan to cut costs, to restructure the bank, and a vision for the future after he gets through the lawsuits and the cost of the problem of bonuses and remunerations. they want to know he can point this bank on a path to profitability and start to gain clients and build revenue. francine: thank you so much, matt miller in frankfurt. otto dichtl also, thank you so much. then's conference that we will continue watching and bring you the very latest from deutsche bank. probably the ceo most under pressure when it comes to the european landscape right now.
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this is the latest from that egypt airplane that we've been talking about today. shipshas deployed naval to search for an airbus en route to paris. 66 people were on board. a little bit of treasure on this egypt stock exchange -- pressure on this egypt stock exchange. thomas cook down 17.6%. if you are a bloomberg user, check out our life blog on this egypt airplane. they've just posted some marine traffic. this is a graphic that shows the ships closing in on the reports of lost position of the plane. we will bring you that as soon as we have breaking news. ♪
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francine: this is "the pulse." let's get straight to the bloomberg business flash with nejra cehic. nejra: tesla to sell stock to help pay for an extension that includes its forthcoming model three electric car and boosting annual production to have a million vehicles in 2017. the total sale will be about $2 billion, with the rest of the shares to be sold by ceo elon musk. shares in france's technique have jumped after it said it will merge with smt technologies.
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the all stock deal will see shareholders at technique get to shares in the new company. the company says they will deliver at least $400 million in annual pretax savings. has reported first-quarter profit that beat analyst estimates. earnings excluding some costs rose 27% to 1.1 billion euros. that was believed by the acquisition of sigma-aldrich. slumpedook shares have this morning after the travel operator said underlying earnings before interest and taxes will be at the lower end of analyst estimates. the company said summer bookings have fallen after terror attacks in turkey and belgium. that is the bloomberg business flash. francine: thank you so much. let's get more on the
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disappearance of that egypt airplane. the minister has already said it is too early to call the incident and accident. let's get more with our middle east editor, in dubai. i guess we are getting conflicting reports. we know there's a huge search-and-rescue operation. this is the graphic released by marine traffic. these conflicting reports come from afp, saying they found out about a crash, something egyptian officials are saying it is too close to say. >> egyptian officials are trying to stick basically to what they know. right now, they don't know very much. there's a little confusion coming out of egypt as to whether the airplane managed to send off a distress signal. initially, they said the pilot since the signal, then they said the automated signal send it. there's a lot of confusion and a
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lot of lack of clarity on what exactly happened. all we know now is the plane has disappeared. the egyptian navy and the greek navies are converging on the point where the plane has disappeared. the french have offered their military services to help. francine: how much do we know about the plane and the pilots? we understand that airbus had accumulated about 48,000 flight hours. it seems like, and i'm speculating, like the plane was sound. >> as far as we know, yes. it wasn't a brand-new plane, but it wasn't old. it is one of the newer planes in the fleet. the pilot and the copilot have many hours of flight time, so they were an experienced crew. i think the airbus plane was
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delivered to egypt air 2003, i believe, so there's no hintation that this might at a technical problem or anything like that. francine: this of course brings us back to other security concerns involving egypt. egypt extremely reliant also on travel as a destination and tourism. >> right. i think that's really -- either way, whenever this was, whether it was a technical problem, imam, or whatever it was -- a was, thishatever it is bad for egypt. this is the third incident for egypt involving a plane since october. you had the bomb that destroyed a russian airliner. you had the hijacking in march of a domestic flight to cyprus. and now this. for somebody who's thinking about calling on a trip to
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egypt, this is obviously going to be worrying, and tourism is very important to the egyptian economy. francine: thank you so much. was mentioning, this is a blow to the tourism trade. seeing pressure on travel and leisure talks. for the latest on that missing egypt plane, bloomberg customers can head to top live. and it shows you not only stock prices but also postings from the marine of already in various governments involved. stocks, bonds, and commodities are sliding as investors react to the possibility of a june rate rise. european government bonds dropped. indian stocks declined. bloomberg's tracy alloway is in
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abu dhabi. great to have you on the program. how have markets reacted so far? emerging markets, not great. >> you pretty much summed it up. we had a hawkish statement from the fomc which sent the u.s. dollar up about 0.8% yesterday. we also thought -- also saw oil down, now below $50 a barrel for brent. when the dollar is up and oil is down, for emerging-market assets, particularly stocks and in the middle east region, we see a bit of a selloff. the msci emerging market index is down slightly today. the abu dhabi stock market index is down. saudi arabia and stocks have been open for a few minutes and they are down this morning. that risk off sentiment feeding into the region. francine: tracy, thank you so much for the update.
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tracy alloway in abu dhabi. bold move.yer's the company makes a bid for monsanto. we have that and the latest on egypt. ♪
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francine: bayer shares have taken a dive after the company made a takeover bid for the world's largest seed maker, monsanto. let's get more with nejra cehic. this is a huge deal, tens of
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billions of dollars. nejra: absolutely. we don't have any financial details, but if we look at months and does market cap, -- market cap,anto's we are looking at $42 billion. the takeover could surpass china's purchase of syngenta to be the largest acquisition globally this year. this industry has seen a record-setting pace of acquisitions this year. it is very big, but we have been seeing bayer shares tumbling. last i checked, down the most since 2009. they are concerned that this big purchase could weigh on its credit rating, and forced the company to sell more stock. when bloomberg reported the possibility of this deal, there was speculation they might have to sell units. francine: then there's regulation concern. there's concern that the numbers don't add up. how much do we know about regulators? tend to beergers
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blocked because you almost have a monopoly. nejra: of course this deal could come across regulatory hurdles. china anding at chem syngenta, dupont and dow chemical. also what we've seen is deals in other industries stopped in their tracks. haveestingly, analysts been speaking to bloomberg about monsanto and saying even though the management might not be keen on this deal, this is a company that is ripe for a takeover. shares down 19% in the past year. it has been locked in disputes with governments in argentina and india. it is heavily reliant on seed technology. this deal with bayer could allow it to diversify. francine: nero, thank you so much for the update. nejra cehic on what could be the biggest m&a story of the year.
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let's bring you up-to-date with the breaking news from egypt. bloomberg users, i urge you to go to tliv. this is the latest log on that egyptair flight that vanished. a lot of the stocks in egypt are under a little bit of pressure. 1.7% for the egyptian stock market. we are seeing pressure under travel and leisure. 50 minutes ago, we had breaking news from afp that they've been speaking to people on the ground in greece and they think the plane crashed off one of the greek islands. this has not been confirmed. we have been talking to officials in egypt. we spoke to our managing editor for the region and he said the situation is very fluid. what we know so far is that -- we lost radar, lost contact with the plane at 2:45 a.m. cairo time. since we know that a lot of naval ships have been deployed
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to the area they've lost contact with. this is a graphic of the ships closing in on the last reported position of the plane. i'm counting some of the ships and there are at least seven or eight that we know of. it is a joint operation between the egyptian air force, the navy, and the french government. we are expecting two news conferences on both sides. there were saudi, u.k., french, and egyptian citizens on board. the first news conference may happen in the next hour or so. we have a second news conference in about two hours and a half from now on the egyptian side. we just know there was this egyptair plane that vanished overnight with 66 people on board. communication was lost at 2:30 a.m. cairo time. we also have conflicting reports on whether egyptian armed forces
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received a distress signal. it is in operation, search-and-rescue, that is ongoing. we will bring you any breaking news. there is a number you can call to check if it is safe. "surveillance" is next. ♪
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♪ francine: the minutes show a fed prepared to hike interest rates as the data improves. defending deutsche. the first meeting since last year's shakeup and i almost 50% drop in share prices. and egyptair flight disappears with 66 people on board. we have the latest from cairo. i am francine lacqua in london with tom keene in new york. we will talk about the meeting. for

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