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tv   Worldwide Exchange  CNBC  November 16, 2015 4:00am-5:01am EST

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good morning and welcome to "worldwide exchange." we're live from london and paris. here are your headlines. >> reporter: we are at war with terrorism. that's according to the french president. the french prime minister as well saying these attacks originated in syria and that more attacks could be on the way. >> translator: faced with this war on terrorism, we can't disregard any piece of information or any tools to help protect the french people. we will act on all fronts in order to destroy isis without respite.
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>> french police carry out a series of overnight raids across the count try as the manhunt for more suspects continues. the u.k., u.s. and russia said to hold talks with syria after french responds with 20 bombs dropped on the isis strong hold. european stocks have early losses. ecor and euro tunnel are trading sharply lower today. french president manuel viles warns more attacks could occur over day claiming, quote, france is at war with terrorism. he said friday's attacks were planned from within syria and the government has foiled five other plots. >> translator: facewide this war
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against terrorism, we can't disregard any piece of information or any tools to help protect the french people. we will act on all fronts in order to destroy isis without respite. >> french police have carried out over 150 overnight raids across the country in counter terrorism operations and the searches were confirmed by the french prime minister manuel valls with five main locations being targeted. this as an international manhunt for a belgium born man believed to be directly connected to friday's attack. he's described as affel temoins. he was stopped in the immediate attack. the tragedy marks the
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deadliest terrorist attack in europe since 2004 and the worst peace time attack on france since world war ii. now today french president francois hollande will honor a moment of silence. he has summoned both houses of parliament to a special session in congress in which he will address at 1600 cet. will. >> carolyn, thanks very much for that. we got a flash coming out of the paris prosecutor's office. one of the paris attacker's fingerprints matches a person coming out of greece. let's get the latest on the ground in paris. hadley is there for us. hadley. >> reporter: wilford, basically what we learned over the last few hours is that an eighth suspect was allowed by french authorities to leave the country, essentially stopped, he was questioned, then he was allowed to go.
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so some serious questions for french authorities. we're learning from a member of the french senate who had been briefed on these events, but i also want to talk to you a little bit about the mood here in paris. what we've seen since friday is a sense of mourning, subdued city. people on the ground telling me that they're worried about their security and they're very, very worried about what the government is going to do to keep them safe. take a listen. just days after the worst terror attack in france's history, the city of light remains a city subdued. the monuments of paris once again covered with flowers and candles as the nation attempts to understand how this could have happened again. >> people really, really afraid. they are shocked. they don't understand. >> we couldn't expect something like that happening in paris and people being killed for having done basically nothing wrong. >> reporter: even as this city continues to mourn, french officials are moving quickly.
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they're talking about changes to the shangan agreement, intelligence sharing, flight database, as well as a crackdown on terror financing as well as the sale on illegal firearms. world leaders pausing for a moment of silence as they opened the g-20 summit in turkey about to step up border controls and increase aviation security. now as details of the attacks continue to emerge, e.u. leaders are already facing tough questions over the region's open border policy and many critics now say it has to change. >> translator: shengen is under threat, not because of this recent attack. it's because our exterior border controls don't work or function poorly. emphasis must be placed on the reinforcements of the exterior borders. >> reporter: but for france's president, the message was clear. this is a country at war.
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now the french president will be meeting with members of both houses of parliament at versailles later today and he's expected to ask for a three-month extension to this period of emergency lock here in paris. >> hadley. thank you for that. do stick with us. we will continue discussion. we want you to weigh in. the latest of the flashes from the paris prosecutor's office. as we said already, the finger prints of one of the attackers match the prints of a person registered in greece in october, however, the french prosecutor says it's unable to authenticate the syrian passport found at the sight. the fourth suicide bomber was known to french police since 2012. now the greek government has confirmed that the syrian passport found at the stat of france was registered on the greek island of letos last month. they believe the passport belongs to one of the perpetrators in the latest
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flashes. do continue to confirm that. the attacks have put extra security any on the e.u.'s borders and particularly the block's handling of the migrant and refugee crisis. a joint statement said, quote, everything that can be done at the european level to keep france safe will be done. speaking at the g-20 gathering in turkey, german chancellor angela merkel said the perpetrators of the paris attacks must be found in order to help both the victims and innocent refugees. >> translator: in france, together with other security forces and authorities, it is now about finding out who the perpetrators, who are the organizers, and which connections might exist. we owe that to the victims and their relatives in particular. but we also owe it to our own security and to the many innocent refugees fleeing war and terrorism. joining us now to discuss further is marco and hadley is
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still with us. marco, very good morning to you. thanks for joining us. first and foremost, why paris? why has paris been targeted? >> paris is a symbolism and obviously it's a center. it represents worldwide freedom. the concepts of freedom, equality, fraternity, the ideals of the revolution. it goes to the essence of the western mind set, not only that, also the fact that france is on the front lines of the anti-isis coalition. they're involved in anti-jihadist activities n. that sense france has represented a target. france was one of the first western countries to ever experience this form of jihadism in the 1990s as a spillover of the algerian civil war when people were bombing metros and france and paris was on high alert. this is nothing new to paris, this form of terrorism, but it's just a level and magnitude of these attacks. >> for the likes of the u.s. and united kingdom and many other
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countries represents similar things as france and paris does. is there a sense that france is more exposed, that paris was an easier target perhaps than london or new york. >> continental europe is an easier target. basically by year's end they'll have a million refugees. a majority were fleeing from the syrian conflict. currently right now is an entire debate in europe about the migration crisis. last week there was a big summit in malta which was all the european heads of state, african heads of state and turkey but the most important element was a meeting between european leaders and erdogan of turkey. soon will be an agreement. eminently there there be an agreement to stem the flow whereby turkey will give you easy access to europe. they'll be given money and will
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resume activity. the idea is immediately to stem that flow. if it's authenticated that this individual went through letos, that changes the entire dry nam mick. it's no longer about a humanitarian issue. >> a lot of commentators have said this is different from "charlie hebdo." this is europe's 9/11. what do you think? >> 9/11. the sickle largest attack in france since the second world war. an attack on one smem an attack on all. that's exactly what was done in 9/11 in the united states and that began the whole operation in afghanistan, but i think right now all the euro penal nations who can participate and contribute to an anti-isis coalition are already doing so and present. the whole thing is to bring it up to the next level. it's not just about bombing. bombing you can achieve so much. you have to have effective, reliable partners on the ground and you have to have some
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special forces, advisers. boots on the ground are already there. this doesn't necessarily mean they have to go to the front lines but they have to be more effective in coordinating with reliable forces on the ground. we saw the fall of the city of sinjar. it's a connected route between raqqa's capitol and mosul in northern iraq. that is an example of more that should be done. >> you've seen the g-20 pictures and you've seen the conversations that obama's having with putin right now. what does that mean for the assad regime? does that mean they get more support in order to fight sis sis and syria? >> the day after the attacks on saturday, november 14th, there was an important conference in vienna. the first one was held on october 30th. at that table -- what happens is that these attacks in paris can also indirectly basically serve as a catalyst for the diplomatic process for syria -- for a syrian accord to be reached,
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resolution. so they're talking about having some form of integral government. before january 1st there will be talks between the assad regime and the opposition. possible cease-fire and opposition. one is, who is the opposition? secondly, the status of assad. in my personal opinion down the road, assad is expendable but the regime is not. what i mean by that, russia, the person of assad, eventually they may give him up, but the regime itself within which russian interests lie won't. the same with iran. >> let's bring in our middle eastern expert on the ground in paris. hadley, do you have a question for marco? >> reporter: susan, i have to agree with marco, on the saudi at least. whether assad goes or stays, that regime will be the main sticking point in particular. i do want to ask what's happening in france. the lawmakers that i've been
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speaking to, all of them telling me there are going to have to be major changes to the way france does business in terms of the security implications going forward. is this the end of shangen as we know it? >> it's not the end of shangen. shangen has to adapt to new realities. you have thousands of refugees coming into europe. it's been uncontrolled migration. in a sense there's a reaction politically in europe, not only from the mainstream parties but the populus parties will exploit this issue. it gives energy and life to the populus parties. what a lot of jihadists seek to do is they thrive on division and polarization. within the european societies also you have the fact that there is an existing wedge between mainstream society and considerable elements of the member -- citizens of the muslim faith. what these individuals try to do is expand that gap and to give rise to the populus parties.
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that's a reality but purely on the migration front the meeting that was held, the summit in malta, was a catalyst whereby there's an agreement signed. there's a rethink about shangen. possible suspension of certain elements for a certain amount of time. it has to be revisited in the sense it has to adapt to new realities and new security realities. europe has to wake up to these new security realities. >> marco, thank you so much. >> thank you. >> marco vincenzia, director at the global security projects. just in the past hour prime minister david cameron said his country should work closer with russia in order to defeat terrorism. cameron said he will speak to putin about the situation later. he's still hoping to convince u.k. lawmakers on the need to bomb sir yeah meantime, u.s. president barack obama and
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russian president putin have agreed on a political position. g-20 summit in turkey, the two leaders conclude that had a syrian led transition that includes u.n. mediated talks is the best course of action. meantime, president obama has described the paris killings as, quote, an attack on the civilized world and said the u.s. would work with its allies to hunt down those responsible. >> we will redouble our efforts working with other members of the coalition to bring about a peaceful transition in syria and to eliminate daesh as a force that can create so much pain and suffering for people in paris and other parts of the globe. >> reporter: a wide variety of countries attended the sirp yeah talks in vienna in weekend, which included america, russia, iran, syria, arabia.
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absent were representatives from syria. no representatives from assad's government or the opposition but the diplomats who were there underscored the need to resolve the syria crisis and double down their efforts in light of what had happened in paris, but the fact remains, there are many different players involved in these talks with vastly different efforts. it increasingly looks like a sectarian battle. iran backed by russia supports the assad regime. iran wants any deal to be very tehran friendly so they can maintain their strategic importance in the region. syria is strategically very important to iran. it's the gateway to hezbollah. they don't want to lose the ground that they have made there over the years. so it is very important to them to have a tehran friendly government there, whereas, the saudis horsebacked by the u.s. want the removal of assad and have made it very clear that they're not very happy about iran's presence at these talks
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nor are they very happy about the 13reds of the wider influence since the nuclear deal was made. these issues are complicating a comprehensive solution on the syria talks between many, many different sides. what they have agreed on in vienna is to reconvene in the next month. they said by january they want formal talks between the syrian government and the opposition. they want a cease-fire within six months between the two sides and a drafting of a new constitution and within 18 months free elections monitored by the u.n. it's all going to be a very tall task. back to you. let's bring you the latest facts coming from the paris prosecutor's office. they have identified another suicide bomber as sammy ami moore. they're saying that he was one of the attackers of the bataclan. his name is samy amimour.
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they are touching on the different attacker with the syrian passport. that was initially in the name of ahmad al muhammad. the prosecutors are investigating whether that passport, though, was authentic. still not confirmed. as we head to break, we leave you with some of the images from paris as people mourn the lives lost in friday's terrorist attacks.
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hi watson. annabelle, your birthday is tomorrow. i'm turning seven. what did you ask for? a princess. and a pony. you like things that begin with p. i like pink frosting too. will you have a cake? yeah. i was too sick to have one last year. the data your doctor shared shows you are healthy. are you a doctor? no. i help doctors identify cancer treatments. i want to be a doctor someday. i can help with that too. watson, i like you.
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welcome back. a european equity market is now in the green. it's up half a percent. it did open down .6% on the back of the paris terror attacks. a nice little rally throughout the first hour of today's trading.
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of course, it follows a decline in european markets last week. down just under 3% for the week as a whole. the u.s. down a little bit more than that, the s&p is down 3.5%. bouncing back to the open. bouncing back from a decline. ftse 100 up about 0.7%. the rest of continental europe eking out gains after the first hour of the rally. france up .25%. the travel measure sector has suffered the most today as might be expected. it is down 1.3%. it's down a little less than it was. the likes of air core, air france, lufthansa. lvmh suffered licks to where we'll get lots of overseas travelers into europe spending money. as i said, mostly european markets have recovered after the first hour or so. >> despite that we're still seeing a lot of money flowing into the traditional safe
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havens. bonds in germany. want to show you how these trading. we're seeing the yield dropping for the ten year bundt. dropping to 2.257 and we're also seeing some yield compression for the ten year u.k. 1.39. the german yield hitting another record low. it's continued in the markets. the euro is dropping to a 6 1/2 month low. now this was an interesting one. we got gdp numbers out of japan. it was more of a response to the safe haven flows once again for the yen and we're seeing cable at 151.99. in the commodities market, volume is very, very high. big bounce back from the weakness that we saw last week. wti last week was down 8% and this morning we're seeing it
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rebounding by 0.9%. 41.11 holding steady above the 40 handle. dangerously close to the 30 level last week. once again, this is, in part, the geopolitical risk premium. spot gold also seeing a fair amount of buying up by 0.74%. 1091. let's check in on how the market action in asia folded overnight. sri is in singapore. sri. >> carolyn, as you would expect, there was a broad negative reaction after the atrocities in paris over the weekend. we saw a flight into the relative safety of the japanese yen. that's turned around somewhat with the dollar fervor. the chinese markets were also weaker today but they did turn around. there was some buying off the lows of the day so we recovered.
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the talk about the nikkei 225. the japanese economy which slipped back into a technical recession in the july to september quarter. so that begs the question, what is the most prudent policy response from tokyo to address this decline in economic activity? does it mean mormon tear ri stimulus? does it mean more fiscal support or a supplementary budget? it's all up in the air right now. there is a sense that we could see more qe. we do have the bank of japan meeting on november 19th. there's also a sense they arepi diminishing returns. there is a physical support and supplementary budget. they say they're not considering that at this point. that's where we stand.
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back to you. >> sri, thank you for that. the french interior minister is due to hold a press conference. he will have details of this morning's raids. we'll monitor that and bring you any headlines from his speech, which is due to start any minute now. coming up, as paris goes dark, the world lights up. we'll leave you with some of these pictures. (vo) what does the world run on? it runs on optimism. it's what sparks ideas.
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we are at war against terrorism. the french prime minister warns another terror attack could come at any time. he claims friday's deadly attack was planned from syria. >> translator: faced with this war against terrorism, we can't disregard any piece of information or any tool to help protect the french people. we will act on all front in order to destroy isis without
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respite. french police carries out a series of overnight raids across the country in counter terrorism operations as the manhunt continues. the u.k., u.s. and russia are set to hold talks on syrian airstrikes after france responds to the attacks with 20 bombs dropped on isis strong holds across the country. european stocks pare some early losses. let's check in on the euro penal market's reaction on this monday. we had a negative lead from wall street on friday and just overnight from the asia session. looking across the board, the ftse 100 maintaining its gains. up, what, an advance of 4001%. most of the forces are holding
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steady. i'm looking at some flashes coming from reuters. the belgium police have carried out a raid in brussels district on monday according to the state broadcaster. this is the brussels suburb where authorities have said over the weekend that they have lost control. this is really at the heart of the jihadist threat in belgium. for the latest on the paris terror attacks and the continue fallout, "squawk box" live on cnbc has all the details. you can check out all the market reaction online including the analysis in the flight to safety. in the past few minutes, we just broke those headlines here on "worldwide exchange", the paris prosecutor has identified two new attackers, ahmad al mohammed born 10 september 1990 in idilb, syria. and samy amimour born 15 october
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1987 in paris. in total, five terrorists have now been named. >> the french interior minister bernard casanove is going to hold a conference. he'll have the details of the raids. those are live shots. he has not gun speaking yet. the world gathered at the g 20 in turkey. they observed a moment of silence. president obama pledged to work with france to hunt down those responsible for the attacks in paris. take a listen to some of the key comments from some of the world's heads of state. >> we will redouble our efforts working with other members of the coalition to bring about a peaceful transition in syria and to eliminate daesh as a force that can create so much pain and
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suffering for people in paris and other parts of the globe. >> translator: in france, together with other security forces and authorities, it is now about finding out who the perpetrators are, who are the organizers, and which connections might exist. we owe that to the victims and their relatives in particular, but we also owe it to our own security and to the many innocent refugees fleeing war and terrorism. >> my message to the french people is simple -- we stand with you, united. >> translator: they will never get us to renounce our freedom, our rights and our way of life. terror has never won in europe. we will remain strong in our determination in order to defeat the barbaric terrorism. >> translator: i have indicated that we solemnly condemn the
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terrorist attack that took place in paris and that we wish to share our feelings of condolences with the french people and with president hollande because of their loss. we're also getting comments from the german foreign minister. we need to look for a diplomatic solution in syria. we need to support forces fighting isis. france has launched its biggest airstrike on isis. 20 bombs were dropped on islamic state trading camps and command centers as part of that operation. the retaliatory strikes come two days after the attacks in paris. let's get back out to hadley in paris. >> reporter: carolyn, what we've seen over the last 24 hours is france ramping up the attacks against islamic state targets in syria. you can expect to see more of that in the coming days and possibly in iraq as well. this from what we've heard from french president hollande will take this to the terrorists, not
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just here in france, not just here in europe but of course abroad. that's a message that the u.s. president barack obama was keen to share and the leaders from the g-20 summit in turkey weighing in in terms of what needs to be done, what has to be done to keep not just france but europe safe from attacks like these. the chatter among the security here on the ground in france and back in the united states as well is that there are more attacks to come, they are planning more attacks and that the bigger question remains what more can these government officials do. what we've seen over the last several months in france in particular is a ramping up of security measures. the interior minister saying two days ago that he's hoping we can get the people who want to go after the financing of terror. they want to get the guns. these militia that started these attacks, they came from probably belgium themselves. questions about how they're going keep this country safe and
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not just this country but europe. >> hadley, thanks for that. do stick with us. we'll continue the discussion now. french prime minister manuel valls has said more attacks could come in the coming days. speaking in the last hour he said friday's attacks were planned from within syria and the government has foiltd five other plots since the summit. the terrorism raids are taking place across france. they said they were taking place in a number of places. >> translator: faced with this war against terrorism, we can't forget this. we will work without respite. >> u.k. prime minister david cameron said they have foiled center ror attacks on brittain in the past seven months.
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cameron said that british interests are at stake. he will act in syria and report to parliament later. he added that the u.k. should be bombing over syria but parliament needed to be convinced first. with that pro active action, let's visit with the former a.m. bass is a dorp to the united states. good morning to you. thank you for joining us. let's explore that point that we touched on there about the u.k. action where they're still not bombing syria. do you think that changes and changes quickly? >> i think it changes. that was certainly the term in the prime minister's comments. i'm not sure how quickly it changes. we don't want a repeat of 2013 when the government went to parliament and was rebuffed. that had an impact not just in brittain but on the whole alliance, the whole solidity against syria. he wants to make sure he has his arithmetic right before you see a change there. >> do we see a change in the nature of action, not just from the u.k. but from the u.s.,
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france, other ally forces? do we see boots on the ground? >> i don't think you'll see boots on the ground except for special forces. i don't think you'll see a significant ground presence. a widening of the air campaign. more importantly, you need the political presence building. it's backed up by a german involvement and identification of german interests and wider action. >> what you've been telling us in the last minute or so, that begs a lot of questions. if not now, when would the troops actually be sent on the ground? when we would actually see a bigger military response in syria? what else will have to happen to make sure that the british parliamentarians actually vote for more involvement in syria? >> i think 2013. what i think our parliament taryns want are not actually defending them, what i think will be necessary is a lying what will be achieved by
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equality with a sense of what might be with whether you can detach bombing isis from your relationship with assad and so on. so it needs to be linked to a broader security and military. i think this is a rubik's cube. there are a lot of moving parts to do with intelligence, our relationship with tech companies which are holding information which are enabling the terrorists to communicate with each other. i think the government needs to work concurrently against five, six, seven fronts if they're going to make an impact. they're talking at the moment. they need to think about the bigger picture as well. >> you mentioned tech companies, you've been involved in that area very heavily of the british government. do you think the likes of facebook and of course google and others should be opening up their data sources to spies and
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governments in order to help stem this terrorism? >> i think selectively and where there is good cause and where there is a real suspicion i think, yes, they need to start doing that. but the problem for western governments is not just large and established organizations like google and facebook and apple, it's these much smaller apps that the terrorists and other criminals are using that need to be brought somehow into a means of cooperation in a legal and international framework. so i think that is as important point. >> ambassador, the journal is saying it's shifting the mind set. obama and putin haven't spoken in years. they're sitting on the sidelines having a cohesive conversation about going forward. some are saying, i want to get your opinions on it, whether or not you think the u.s. and even
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france which has been so opposed to backing the assad regime, they would do this temporarily to fight isis? >> i think that's been moving since the summer, maybe since the decision by russia to put more advisers and forces on the ground and to have this renewed air campaign. i think that has has been a factor internationally but more needs to be done to work with russia and i think that western leaders are going to have to find a way, it may be ugly and unpleasant, of doing a deal with russia and assad temporarily. not losing sight of the long-term objective. i say long term, not in years but in months, but i think that there has to be some sort of accommodation. i think at the moment the balance is shifting to trying to do that, however morally difficult it is to do for people. >> ambassador, hadley gamble in
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paris. >> reporter: we heard a lot of talk over the last couple of days in terms of what's going to happen with the shangen agreement, e.u. leaders meeting in brussels. over 600,000 migrants in europe. what happens next is a big question. british leaders that i'm speaking to basically telling me this could lead into the britt department. >> i'll get on to that. i think we have to be careful on how we interdugs migration. we need facts and need to know how many perpetrators were people who had come recently from the middle east. it seems a majority of them are there and some were french citizens. i think we need to get our facts right. it was a factor. how big a factor it was.
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then i think we need to remember that one of the things that isis -- >> it would seem that david cameron was planning for that, wasn't it? essentially what we've seen already is that the british government said they would take members, migrants from the camps in jordan and turkey, they were visiting one of the camps in jordan to do that, but it seemed that they're already pre-planning that, right? to keep a handle on the security. >> i'm not sure that's right. the first thing to do is establish the facts. then i think we need to work out what isis is trying to do and they're not doing it. isis would like to create a move in europe which favors extremism and center phobia. they don't like the image of western europe behaving in a responsible and welcoming way to muslims who are fleeing them and other bodies in the middle east. and they want to fracture the relationships between muslims and non-muslims within our communities here in western europe. so we just need to make sure that we react as we did react
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after "charlie hebdo", as we did react after the bombings in london. we act in a way that's inclusive and keeps muslim communities like us trying to move towards a more united approach towards these things. that's been a very, very long struggle in brittain, by no means complete. we really must keep that in mind. >> sir nigel, there's been a lot of nauk her response. there's been a lot of criticism for david cameron for his hess tent response for taking in migrants. to what extent on the european stage is he now vindicated? >> i don't know if he's vindicated over the general issue of this exodus of people because brittain is of course not part of the shangren area and the border area so he's not obliged to put his chips on the table. he has been generous taking people from the camps. >> has he really? >> he's been reasonably
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generous. i personally would have preferred him to do more. but i do think in the period ahead there's going to have tore more of that kind. and he's certainly vindicated in pointing to weaknesses in the world we're in in a completely border free europe. it's clear that not over the weekend but the traffic between belgium and france and the movement of people between the two places that there's always been an understanding. where there's a real security threats you need to take action. between countries they will need to get a different balance. >> so, nigel, tony blaire recently in part apologized for the iraq war with the benefit of hindsight. this happened in recent months and years. would you say that the iraq war was a mistake? >> i'm not his spokesman, never was. i think that what he was saying was i think he would say always that he thought it was right to
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topple saddam hussein and he was -- what he was saying at that time was that those who were involved in the conflict in the invasion in iraq need to accept some of the responsibility for what's happening be. not all the responsibility. i think he's got responsibility with those causing the violence, maybe political unease today. but my own personal view is knowing what we know now, both from the intelligence and on the instability, i don't think it was a mistake. i think it was a mistake to have gone ahead in the way he did. i thought that for some time. i think that's certainly clear. it doesn't justify what's happened since. it makes the after talking of saddam hussein not irrelevant but it's not adequate in itself given what's happened. >> nigel, pleasure to see you as always. thank you for joining us. former ambassador to the united states of america. now the french interior
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minister casanove is due to start a press conference. he has not started. we will continue to monitor that and bring you any headlines as and when they come. we have gold moving away from a six-year low. more on the safe haven commodity. more right after the short break.
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the light to safety can be seen in the spot gold price. it's up 1%. we saw selling in gold. we saw weeks of decline on expectation that the feds are going to hike prices. we have the chairman of petro paplov. looking at some of the commentary, some have argued that the derisking i guess intensified with the unfortunate tragedy in paris over the weekend. >> gold is the safest place. this is sadly a very stressful time. >> has gold lost the safe haven? in the last five years there's been lots of geopolitical
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tensions and gold has not responded in the type of way that perhaps it used to decades previously. >> i think the thing that has changed is that the physical price of gold and the price of paper gold have diverged. the demand for paper gold is weak. the amount of physical gold that are being bought by the central banks of russia, china, and in india for personal savings in gold is still huge but it is not effective in the technical markets in new york. gold flow is rather strange. >> there is no inflation, absolutely zero inflation. i mean, we're going to get the confirmation here in the u.k. a little later on. there is no need to hedge against inflation, for example. i would think anything we're seeing in the price of gold is
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not more than a deck bounce. >> you're entitled to your view and i have a different one. >> you have a different one because you are a gold producer. let's talk about that side of the business. >> i've been in the gold market for 35 years. >> that is very true. you've been trying to cut costs but i just wonder to what extent you can cut costs to remain profitable? how much further can that cost cutting go? >> well, we've been lucky that the currency that we've operate, the ruble, has not been strong. we've had big assistance from that. we have cut costs across the board, both operationally and the central office level. sadly we've lost a lot of people working for us, but we are managing to drive down the costs, particularly the costs we can manage which are tons of material moved. that's where we can continue to improve it. >> what is your cost per ounce?
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is it easy to compete with the bigger players, the likes of new crest mining, for example n this lower gold price environment? >> we haven't announced our current price but we did say that it would be somewhere around $600 an ounce which is a pretty good margin if gold is 1100. >> i noticed that victor vexelberg who is russia's fourth wealthiest man. he increased a stake in your company 10% voting rights. do you think that was a fair deal? >> everybody has a right to buy and sell our shares. i'm delighted that somebody from russia has realized that we are a very -- >> do you increase your stake at market prices or do you get a good deal out of it. >> you can't think that we're giving things away because we are very responsible and respectable company. >> i'm sure you charged him. fair price. market price. >> it's what he paid -- his
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people paid by buying shares on the market. >> okay. but with his entry into the company, i mean, how does that change -- does it change the strategy going forward? >> not at all. he's just another investor. we have many. i'm delighted to see him. >> if we talk more broadly about the commodity market, gold has fallen and nothing like oil and copper. with your broader understanding of markets which you've been involved for a long time, do you feel that's adequately priced in with other global equities and gdp? we've had a huge fall of commodity prices, are they effectively marketing to market? >> i think people are trying to marketing to the market. if there was a major rise in interest rates, but, yes, i think markets are -- these
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financial institutions are now pretty transparent. >> what is the first commodity to leave all of the other commodities out of the slump? will it have to be oil? we saw more reports of oversupply of oil to the tune of 3 million barrels. that's one month's supply. is that going to leave copper, iron or gold out of the slump. >> one of the things you're most likely to see rise is the gold price. i think that is the proxy for all commodities. >> all right. peter, thank you so much for your time. appreciate it. finally your call on gold price currently at 10.91? >> oh, 11.50. >> 11.50 by christmas. peter hamburg, chairman at petropavlos. i'm looking at flashes coming through from a turkish official who says one of the suspects entered turkey back in 2013 and there's no record of him leaving
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the country. the turkish official saying that turkey only received information requests from france on the suspect after the paris attacks. various city analysts have issued a reaction to the attacks in paris. isi says they signal a new normal that could cause a substantially larger than normal impact. sotgen says it's the immediate cause. stifel says it's the likely outcome is increased political support and nomura says policy makers reaction is there. >> it's too early to talk about it. whether this was isolated. there's a lot of talk on the part of some of the brokers whether this means the fed might hold off on hiking in december, whether it actually strengthens the resolve of part of the ecb
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to actually stimulate the european economy in december. >> i'm not sure about that myself. i don't think it massively changes economic fundamentals and with it how we would respond to policy. i think if you think about the change in immediate reaction from 2011 when this type of thing was so unexpected. i'm not trying to say that these events were not utterly devastating, which they were, but there was a sense where people are sort of prepared for it. it doesn't change how terrible the fallout is. but people get on, go back to work, keep working. they won't necessarily be direct economic impact. now we will be back here on worldwide exchange with much more reaction to the paris attacks including comments from interior minister bernard casanov.
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wait and see what attacks are on the horizon. faced with this war against terrorism, we can't disregard any piece of information or any tools to help protect the french people. we will act on all fronts in order to destroy isis without respite. en

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