tv Squawk Alley CNBC November 16, 2015 11:00am-12:01pm EST
we need to get ahead of their capability to make sure their messages are secure and not read by our intelligence community. that was a huge void. >> we'll leave it there. thank you. brigadier general mark kimmitt joining us in the wake of that speech from president obama at the g-20. >> we've been hearing from president francois hollande, the president of france, in a rare address to both housings of parliament just outside of paris in versailles. we want to go to our chief international correspondent michelle kcar ruse sa cab berra. we heard about the changes in his effort to fight terrorism. again saying france is at war, this time with jihadi terrorists. >> yes, sarah, he is asking for a change to the constitution. a dramatic step. where he made the speech today at the palace of versailles. he says the reason he needs an amendment is because the current
legal regime of france does not allow him the tools he needs to fight the war against the jihadists terrorists. he says the legal regime just isn't adapted for what we need at this point. that's likely to be controversy. second thing that was news is he's announced he's moving the aircraft castier charles degal to the middle east. he says that will triple the country's capabilities in its efforts to fight isis with air strikings in syria. he's going to extend the state of emergency for three months. or at least he'd like to with the permission of parliament. he would like to do that before the end of the week. he also wants to be able to increase the amount of surveillance that is done on individuals who are identified wi within intelligence reports. this is an incredibly rare thing to happen, for the president of france to address both houses of parliament at versailles. the only previous time was by nicolas sarkozy in 2009 in the financial crisis. the reason it was so rare is it used to be illegal. it was prohibited by the constitution for the president
of france to address both housings at the same time because of the very jeffersonian concern that it would give him too much power and make him look too much like a monarch. remember, thomas jefferson never made a state of the union speech in person. he did it in writing. he was the first ambassador our young country to the country of france and he was deeply influenced by france and france was deeply influenced by the american revolution. remember, they were our first ally. so this speech you see today is a very dramatic change from the early beginning of this republic of france. back to you. >> i'm just curious, michelle, you're there in paris. did parisians go back to work today? what was it like on this day after the weekend that changed the world? for them and for the rest of us? >> they're very much trying to make it back to work. business as usual. they announced that everything was going to reopen today. people are in the streets.
there's plenty of traffic. we do see thousands of people coming here to what has become the center of mourning for the incidents and the tragic events because it is very close to the bat la can theater and the restaurants where the attacks took place. if these people weren't there, you would be able to see thousands of flowers and thousands of candles and thousands of notes and photos and homages to the people who died. so there is definitely a feeling here and it was a very, very heavy moment on this plaza today during this moment of silence that happened about noon local time, 6:00 a.m. in the united states. so yes, back to work, back to normal, but certainly with a heavy heart here. and a tinge of fear as well. >> there's a huge debate about what should happen with refugees, particularly with syria, particularly on the sourp border. one point that may not have been
reflected i don't think in the reporting from my friends in paris and that is the belief these guys that have the vests on at the stade de france were refuse ed d at mission and were searched to a greater degree than normal simply because hollande was attending the game and had he not been attending the game, it is possible they would have gained access to the stade de france and been able to blow themselves up to a far greater extent. in terms of where we lack in security measures, what we understand from the paris attacks, to me, that seems huge, particularly for big public events on both sides of the atlantic. >> yeah, i wouldn't be surprised if that final concluding point you made there, simon, is correct. i mean, the reporting we do know. this is from "the wall street journal" is the only place i've seen it, is that one of the bombers arrived with a suicide vest and he was frisked and when
they discovered it, that's when he detonated the bomb. that's the reporting we have from on site. the particulars as to what happened or why it is they stepped up security, i'm not aware of what you're discussing. but i think the ultimate conclusion about to what degree are they going to influence security at events like that, i don't think there's any question about that at this point. >> thank you very much for the update and all reporting. we'll check back in with you later. our chief international correspondent. joining us now, former homeland security assistance secretary for infrastructure protection bob lokowsky. we left off on the plant you are doing so much work on. that is, how do you ppare and protect citizens from that kind of attack? the french people are being warned isis had threatened more. the cia has warned there are more attacks in the pipeline. is there any way to prevent and protect people from this? >> these types of attacks are
difficult to protect against. we've got so many targets in the united states that are classically not hard targets. we would look at the category of soft targets and the terrorists really have the ability to define. it could be a small restaurant, it could be a movie theater. we've had threats like this since 9/11 across these decades now that we have to respond to. we've done a good job at training law enforcement both local and federal law enforcement on how to deal with them. on how to be able to interdict them. regrettably, as we've seen with shootings even such as sandy hook and other types of cinema shootings, movie theater shootings, these are difficult to prevent. a terrorist attaining like this, in terms of its planning cycle, execution is a different level of execution. we have methods and technologies we can employ to help us in this fight. >> bob, we're now getting information about the degree to which this was a cross border effort originating in syria,
planned in belgium, executed in france. i'm wondering how these countries go about coordinating their intelligence. if it is possible to prevent future attacks. >> so in europe in particular, very strong agreements and very strong ties between the authorities both in france and belgium because belgium historically over the past decade has really been a hot bed for terrorist activity. we've seen a lot of things coming out of belgium that has ultimately been perpetrated in france. so the belgium authorities and the french authorities i think cooperate pretty well. we've got all sorts of agreements between the countries that do that. i think it just poses -- it really highlights the threat that the refugees have posed to europe in general, you know, while 99% of the refugees are seeking asylum and status for very legitimate reasons, it's on the backs of those refugees we'll find the terrorists be able to come in. it's difficult to identify these
terrorists and they come across the border. we can't identify their backgrounds. they're letting people come en masse. therefore, they have a very easy way to be able to hide into a society that they can't be detected. >> bob, what is your sense of how the intelligence gathering capability is different perhaps across different countries in europe than it is here in the u.s.? we've had lots of conversations about the degree, especially post the snowden revelations, to which the u.s. government is scouring all sorts of communications. are the europe governments doing the same? even if they are, are they sharing that across their borders? is that going to come into a discussion here? >> well no doubt, i think the snowden revelationings have hampered our security efforts and our ability to partner with our allies abroad. particularly in europe. we've seen evidence of that, in germany for instance. when the revelations came out that the u.s. may have been spying on german officials there. consequently, it's come out that the germans have been spying on german officials there.
it does hamper it. because the population, you know, will also rebel against that type of, you know, investigative approach. in reality, we need to have very that row and -- you might call them invasive, but nonetheless, we must have abilities to detect these types of attacks. the snowden incident really did a significant amount of damage to our efforts to partner with our allies there. ultimately, it's hampered that. many of our ally also relied on u.s. technologies to share information. >> it's much more basic for many people in the united states at the moment. it's a question about who you let in and whether you shut down the borders. particularly for -- this is with your oemland security, hats on if you would, the perception is the border mexico is porous and people can come over saying they're syrian refugees, get access to the united states and questions are asked later. the governors of michigan and alabama have both separately
overnight rejected the idea that there should be resettlement of syrian refugees in their states. how do we react at home? what do we do now, here, in this country? >> i think what we can do -- we have to separate this a little bit. yes, recognize our immigration policy is failed and as a consequence there may be gaps there. when i look at it from an inf infrastructure protection standpoint, however, i'm less concerned about the immigration policy, i'm more concerned about making sure we have the right methods to protect these targets. intelligence isn't perfect. if we wait for threats to come along, we'll never have the information we need. there wasn't good threat information in paris that could have foretold these events were coming. you have to expect they're going to always occur. you have to be prepared. we need preventive measures. >> sir with respect, the logic isn't quite following there. we weren't able to protect paris from what happened. we didn't have the intelligence. whilst you might argue for greater intelligence, what
happens, you know, one of these guys that perpetrated the attack was clearly traveling as a syrian refugee. what do you say to the people in this country who are concerned that the same may happen here, that people, particularly from mexico are being admitted now to this country on the basis they're syrian refugees without due diligence and checks on that? >> i agree, simon, again, we do need more stringent and more effective background capabilities that we can check on immigrants coming into the united states. both those trying to come in legally or those trying to bypass the system as you mentioned going through the borders. it's very difficult. i think we do need to enhance our border security. there's no doubt the problems we've experienced in the past, whether it be from terrorists or drug traffickers, are problems that exist today. i'll go back to what i was saying earlier though. we can't wait for that policy to be in place. we actually have to protect these targets today. both local governments, the private sector, have to step up.
the soft target community has to step up and actually provide more enhanced security to protect those targets. because we'll never know when a terrorist is going to be coming across, is going to be targeting an area that is susceptible and vulnerable to that type of attack. >> that is the challenge at the moment. bob, thank you for your analysis today. the former homeland security assistant secretary for infrastructure protection. >> in the midst of all this news overseas, a mixed day for the markets at home. >> very modest reaction, let's look at the major sectors here on the s&p. there is a slightly defensive tone to this. consumer staples, utilities and technology. by and large, very modest. even over in europe, france, the cac 40, was never down more than 1%. it was down at 1% right at the open. then we moved into positive territory. that's similar for the rest of europe. germany was also not done more than 1%. airlines not surprising are
weak. air france was weak over in europe. even here, declines of about 2%. again, down, but not dramatically so. not surprisingly, at the open, we saw some moves up in aerospace and defense stocks. even now, those have moderated a little bit. still on the upside. rockwell automation up here. ita, the aerospace etf, that is seeing heavier than normal volume. this has not been an outstanding performance. basically flat on the air. oil is a big topic of discussion because it moved in the other direction. we were dropping towards $40. it would have dropped below that. we are moving in that direction once again. if we broke through that, it would be the first time since august. surprisingly, energy stocks got hit badly last week. most of them are flat to slightly on the upside. as you see with some of the big names. either side, a positive or
negative. i think this is because of the tremendous problems they had last week, all to the downside. if you look at the retailers, these were the worst performers last week. your kohl's, your macy's. speaks to the idea that these groups, badly beaten up. people are at least trying to find some kind of value right now. guys, back to you. >> thank you very much, from the floor of the new york stock exchange. when we come back, we'll have continuing coverage of the response to the attacks in paris and its impact on the global economy. mixed response from the markets here in the u.s. art cashin will join us.
in washington, the attorney general loretta lynch is holding a press conference addressing law enforcement implications of the tragedy in paris. here's the attorney general. >> i spoke with the president and the rest of the national security team at the white house on saturday prior to the president's departure for the g-20 summit. justice department attorneys,
the fbi and other agencies are currently working closely with french authorities through our international legal assistance channels to obtain further information that may be relevant to these attacks and we are working on an expedited basis to ensure that our office of justice for victims of overseas terrorism is available to assist any american victims and their families. we are indeed working aggressively with the french government to ensure those responsible for the carnage are brought to justice. as this work goes on, we will continue to stand in solidarity with france, justice as france has so often stood with us. our thoughts and prayers are with the victims and loved ones at this heartbreaking and incredibly difficult time. today, i'm here, however, for an announcement. and i'm joined by secretary duncan from the department of education, u.s. attorney -- >> that was loretta lynch, who was already scheduled to speak about this issue of for profit education, but starting off,
talking about the cooperation u.s. agencies are dealing with when it comes to paris. says that the fbi and other authorities are helping in the investigation with the french government and also she says america is, quote, working aggressively with the french government to make sure those who are found will be put to justice. we want to take a look at the markets right now because the dow is up 25 points. stocks mixed on a day where we are watching the global economy and of course reassessing the geopolitical risk of terrorism. art cashin joins us. art, never easy to make the link between a human tragedy and how to factor in what kind of risk that has when it comes to the markets, but history shows us that there is a never reaction. it can be sharp. but it is short-lived. >> and in fact, if you go back to the previous paris shooting, charlie hebdo, we rallied the day after that. not because of it, despite it
perhaps. you don't get these direct connections. there is a growing fear, at least on trading desks and some of the traders down here, that they might take a shot at something in the united states. it would appear that what they're trying to do is respond to the people who are launching flights against their operation and they've got the russian plane and then they went to paris and it would seem almost logical that there might be some other attempt against the united states. >> but we don't know that and we can't price that. coming into the trading today, there was a concern maybe the fed would be less likely to raise interest rates, that the european central bank would have to do more because it was so slow growth. if you look at the trade today, even with some of the french stocks recovering, that is not as live a concern as we thought. >> no, it's not a great concern, but it's difficult to gauge. you look at the yield on the
10-year is down. is that because they think the fed is less likely or because it's a partial flight to safety and people looking for something more security? i would opt for the latter part of that. >> there's been an expectation that where we could see this play out is in the oil market, especially with the news overnight that now there's been a change in strategy and there's now a focus of the attacks on the oil supply for the islamic state. how does that manifest itself in the price of oil? if at all? >> i think the if at all part. it looked like the middle east would get more unstable and that should put upward pressure on oil. but there continued to be rumors about tanker after tanker heading this way. iraq is apparently going full steam as much as they can produce and sell. so it's going to be very interesting. bob noted that we got very close to $40 on the near month. i think if you break $40, you
might see some dramatic impact and certainly could see the market go south on that. >> art what does it tell us, if anything, about this, health of the market overall, that we're having the kind of morning that we're having? when, granted, there's every excuse i suppose if stocks were going to tank for them to do that. >> ordinarily. think about what you saw before this news came out. and that's a heavily oversold market. you had two minus 200 point days back to back. so there is some minor support here. but i think the controlling factor will remain what happens with oil and if it sells off and breaks 40. >> one place you are seeing a sharp reaction is the currency market where the euro has reached 6 1/2 month lows. whether they're buying the dollar as a safe haven in reaction or factoring in some european weakness in terms of the economy, quantitative easing, whatever it is. we're seeing what kind of havoc a strong dollar is having. are you surprised at the
resilience of u.s. stocks, being the dollar keeps going up? >> again, stocks are oversold. i think the bounce has to do with looking at the currencies. half and half of what you spoke of. i think they see half of it at least as a flight to safety. and the other half is some slowdown in europe might force dry heave, to force even more with the quaint ittit a tative easing. vo: know you have a dedicated
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we're coming up to the close of the european markets. it is of course the day of the reaction to what happened in paris on friday. whilst many people in the market may find it difficult to tear their eyes away from what is happening on streets of paris, well, the implications of what happened on friday night. it's interesting that the stock markets have not really reacted that badly to what's gone on despite all the obvious concerns you might have about growth moving forward, particularly obviously what might happen in france to economic growth and therefore profitability and therefore valuations. may have been picked up and more back to normal.
the airline stocks, they notably were falling out for obvious reasons. the physical locations around europe, though it is off its lows, you see them all in negative territory. a lot of the hotel and travel agencies are also down. a huge french centered hotel group, again, it's off its lows. carnival, the cruise line operator, also on a knee jerk reaction, trading lower as you can see. say, the chinese traveling to europe and spending their money on luxury goods there. if the chinese aren't going to travel then presumably their levels are down but we've
supported the lows. you see some of the oil and gas engineers higher. the big multinationals, repsol, bg, they actually were higher earlier in the session. it's kind of a sideways move for europe. everybody's very concerned about the aftermath of friday in paris. >> when we come back, ambassador who has been a key figure in the knee gosnegotiations in the mid. also, reaction in commodities. what you need to know as crude hovers above $40 a barrel.
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i'm sue herera. president obama holding a news conference at the g-20 summit in turkey. he says the paris attacks were a setback but the coalition is making progress in bringing down isis in syria and iraq. he says he thinks it would be a mistake to put u.s. ground troops in syria. meantime, french president hollande speaking to his nation's parliament. he says france's constitution needs to be amended to better deal with the crisis situations. he wants french law to allow dual nationals to be stripped of
their citizenship if they're convicted of terrorism. agreeing on a broad process for achieving a political resolution in syria. this, as the president seeks to ramp up the approach to isis in response to friday's terror attacks in paris. cia director john brennan says the paris attackings were planned over several months and he believes the islamic state has more attacks in the pipeline. he spoke at a national security summit in washington. and that is the cnbc news update at this hour. john, back to you. president obama, as sue mentioned, addressing the news conference, saying he's doing what much of his critics say ought to be done differently and is not advocating for a lot more boots on the ground. in washington with the latest on all that. >> so much of the focus turns to the question here in the united states, at the homeland. the president talking today in
turkey, raising all sorts of objections to his critics who say he doesn't understand the isis threat and is not doing enough to stop it. one of the things the president said bears notice, as you think about the threat here in the united states, you talk about the difficulty of stopping determined and suicidal attackers. here's what the president said just a little while ago. >> one of the challenges we have in this situation is that if you have a handful of people who don't mind dying, they can kill a lot of people. that's one of the challenges of terrorism. it's not their sophistication or the particular weaponry they possess but it is the ideology they carry with them and their willingness to die. >> that is a pretty stark assessment. but i spent part of the weekend over this past weekend talking with former fbi officers and former cia about their
assessment of the threat to the u.s. homeland. i want to bring you a snippet of what one told me. a longtime cia officer who spent a lot of time in afghanistan with the mujahadin fighting the soviets in the 1980s. he said there are a million soft targets in the usa and an abundance of available firearms. we are extremely vulnerable and are a high-value target. what we've been lack is the will to take the fight to us at home. that may have just changed. john, when you look at all of the different ways in which americans businesses and law enforcement and local authorities are responding to this, you see a lot of stepped up security across the country. saw a statement from the cincinnati bengals about tonight's monday night football game, saying they will have enhanceped security there as well. the stark reality is there's not much we can do once an operation gets to the point where suicide bombers have the belts on and the guns loaded and are ready to go. what the experts say is you have to stop this before it gets to
that point. >> thank you so much. aymon in washington. joining us with more on the attacks in france, former ambassador to egypt and former undersecretary of state and defense, frank wizner, now an international affairs adviser. it's great to have you this morning. i'm wondering what your perspective is on the comments that we heard this morning from both president obama and france's president francois hollande. obama seems to be saying there's an acceleration of an existing strategy which itself has been putting enormous pressure on isis, sh renking its territory. whereas the french president seems to be taking a little bit of a different tact. what do you make of this? >> i do not believe that the french and ourselves are operating from different scripts. both of us take this event most seriously. it is a direct threat not only to the united states and france but to all of europe. we're looking at a change of tactics on the part of isis.
and we have to now be ready to face those tactics and deal with them. we're dealing with determined fanatics who are not prepared to stop short of being check mated on the ground militarily and the ground under them deprived politically. i think the president and the french are on the same wavelength in both regards. you have to get an international coalition of dealing with the syria problem and iraq problem politically and you need a concerted military and intelligence effort to deal with the physical threat. >> how does that look, am bass do in the coming days, weeks and months, as we are dealing with an increasingly choreographed group that now involves local citizens of these countries in this area with free travel?
>> i think you underscored the key point, which is this isn't a threat that spikes and recedes, it is a threat that's reached a new plateau and will continue for some time. that means you have to accelerate and deepen intelligence cooperation, cooperation among police and law enforcement authorities in this country between this country and the europeans and to be able to defend our citizens over a long period. we're looking at a fight that will last years. will not end very quickly. >> ambassador, clearly, it's a battle for hearts and minds, both at home and abroad. the president spoke about their ability to create a caliphate is also dragging sympathizers in because it makes it look like they're a nation state when in fact they're a bunch of murderers. an article that appeared in "the new york times" a week before
the paris attacks which suggest the arabs may not be actually as involved in the syrian campaign as we thought. a lot of them, saudi, united arab emirates, jordan, they put a lot of their resources into yemen for quite obvious reasons. but actually it's now an american fight. in syria. more or less as things stand at the moment. is that your reading of it and how dangerous is that potentially for the perception of this war moving forward? >> perhaps i see it a little bit differently. the soldiers who have to fight this fight in the final analysis will be syrian soldiers, iraqi soldiers. it shouldn't be outsiders, be they arabs or outsiders like ourselves. we can all provide financial assistance, air combat, assault force, logistics. we have to create the political conditions under which iraqis and syrians fight for their own country. what secretary kerry did last
friday with lavrov, what the president and putin have done today, begins to lay groundwork of political cooperation that can end with syrians facing a common threat. >> ambassador -- there's something that raised my eyebrow, listening to the president. a big part of his thesis seems to be that inclusive democratic governance in the middle east is the only long-term solution to this issue. but i mean, inclusive democratic governance is exactly what hasn't emerged in the middle east. it's tended to be very strong, some would argue, dig ta torial governments. if that is the only long-term solution, is that realistic to see that emerge in our lifetime? >> well, i think the answer is you have to deal with reality. and the reality at the moment is you have to get a common
groundwork among the powers that surround the middle east. russia, ourselves, iran, turkey, saudi arabia, to be able to contain and bring pressure to bear on the parties to the syrian and iraqi conflict. that's the way it starts. then you have to get a degree of political cooperation between syrian infarctions, iraqi portions of the country, to focus on the terror threat. the biggest threat today is the terror threat. over time, we will be able to turn our attention to the building of long-term institutions, including democratic ones. but the short term, you've got to get a political basis and a military basis to face a terror threat from daish and isil. >> we're looking at live images from paris where the parisians continue to mourn the loss of hundreds of their fellow citizens. people are sad, ambassador. people are angry. people want a solution.
i couldn't help but think while the president was speaking in defending his strategy, i wonder what the u.s. has accomplished since last august. since we saw the brutal beheading of my former classmate jim foley and the president said he would be relentless in attacking and defeating isis. what exactly has been accomplished? why should the american people have trust that we're going to be able to be kept safe from what seems to be an expanding terror threat? >> well, the united states alone has invested hugely since 9/11 in domestic security. and we've made major progress. we've got to do more. we have to intensify our cooperation with europe. but, as i said, this is not something that will be addressed and solved with the wave of a magic wand. it's going to take time. since the last -- over the last year, we fashioned the political coalition and the military
coalition, but we've also seen in the last weeks the coming together of some understandings of a political nature that will really help contain isis. provided that the diplomacy moves forward. and russia, iran, the united states, saudi arabia, turkey, all cooperate together and the europeans and get on the ground in syria. political settlement. and the matching settlement among iraqis. so that iraqis and syrians can fight this war and bring it to an end. it won't happen tomorrow morning. but that's the direction we need to go in. >> ambassador, you have been one of those very diplomats in some of the most tenuous regions in the world over the last several decades. we thank you for your insight this morning. ambassador frank wizner. >> up next, u.s. markets resilient in the face of geopolitical worries overseas and here at home.
we are live in paris and washington today with the very latest in the aftermath of the paris terror attacks. we'll speak to retired four star general barry mccaffrey about u.s. strategy. plus the market reacts both here and abroad. what the events in paris could mean for the fed. we'll discuss that with black rock's head of global strategy russ koesterich.
after friday's attack, many turned to facebook to make sure their family and friends were safe. at the same time, there was a backlash online with some of facebook's choices. live in l.a. with that story, julia. >> that's right, john, facebo facebook's safety check feature within the first 24 hours after the attack, notifying 365 million people that their friends were safe. facebook did drop backlash for not offering the safety feature after other ait was including suicide bombings in beirut just the day before. the paris attack was the first time they implemented this feature for a manmade incident rather than a natural disaster. facebook responded by saying it will change its policy around safety check, saying we want this tool to be available. twitter also played a useful role. paris residents used the hash tag to offer those stranded a place to stay. twitter saw a flood of updates
about the attack. about 10 million on saturday according to topsy but there was some criticism that twitter allowed people to share misinformation. google made international calls to france from its hangouts apps free through the weekend as did skype. and though social media certainly played a positive role, president obama just mentioned the potential negatives from social media, saying isis is unique in its use of social media to draw new recruits. we'll have to see how companies crack down on those kinds of activities. guys, back to you. >> or what if any involvement they would have. for now, julia, thank you very much, on the social media angle. let's get to rick santelli. >> thank you, sara. of course, we all know our hearts are heavy as to the aftermath of the occurrences in paris. with regard to the markets, they're still going to be
investors that have to deal with markets. there's going to be institutions that have to deal with the movement in markets. my job is to recant all of that to you, the viewer, or listener. it's been a phrase maybe overused, but i think it is the exact phrase when it comes to the aftermath of the occurrences in paris. i truly think it will be data dependent. whether we like it or not, behavior may change. tourism may change. maybe instead of traveling, people will stay home and watch movies. that may give you an investment. in the end, if we look at markets, really very normal proceedingings with regard to trends. yields have already been moving down. no different today in the ranges. really fit and dove tail with the type of volatility and price action we've seen. now, when you look at the s&ps, many believe that we have reversed to some extent some of the downside but it was starting to occur on friday and it made
sense. if you look at data dependent, many are looking towards europe. there is going to be some type of data response to what's going on. just from the potential of tourism potentially alone and how much people go out. all these thingses are going to be affected. it's going to take months for the data to slowly come out. with regard to the cac, bob desanny's done a great job. yes, there was some reaction, but as you can see on the chart, it also fits very well with friday, the last foreign exchange. sara's been spot on all day talking about volatility in foreign exchange. volatility has been in foreign exchange because central banks are moving on different strategies. specifically the uk and the u.s. so these trends also make sense. i don't mean to downplay any of the activity, but i think markets, and i've covered all of the events that have affected markets in this negative fashion, and whether we like it or not, markets have grown to be
able to accommodate and actually accelerate what type of trading and how it's affected by these issues. simon, back to you. >> difficult morning, rick, thank you. up next, abe waiting the latest developments in france as the french president said his country is at war with jihadi extremists. we're live in paris in a moment. come on in pop pop.
and him. a choice to take brilinta. a prescription for people who've been hospitalized for a heart attack. i take brilinta with a baby aspirin ...no more than 100 mg. as it affects how well it works. it's such an important thing to do to help protect against another heart attack. brilinta worked better than plavix. and even reduced the chances of dying from another one. don't stop taking brilinta without talking to doctor. since stopping it too soon increases your risk of clots in your stent, heart attack, stroke, and even death. brilinta may cause bruising or bleeding more easily or serious, sometimes fatal bleeding. don't take brilinta if you have bleeding, like stomach ulcers. a history of bleeding in the brain, or severe liver problems. tell your doctor about bleeding, new or unexpected shortness of breath, any planned surgery and all medicines you take. i will take brilinta today. tomorrow. and every day for as long as my doctor tells me. don't miss a day of brilinta. police raids in france and belgium continue after friday's
attacks in paris. president francois hollande addressing the nation, just an hour ago, saying the country is at war with extremists. rachel is "the new york times" european culture correspondent based in paris. rachel, is the reaction after these terrible attacks similar to the aftermath of the charlie hebdo attacks or is it different? >> i'd say it's a little bit both. it's the same in that people just feel like they're not safe. and it's different in that it's much bigger and many, many more people feel they could be targets. one of the things that happened after charlie hebdo was a sense that this was a provocative magazine newspaper. as you know, hundreds of thousands of people rallied in the streets and says we are charlie. what happened now is you can go to the cafe and be a target.
you can go to the stadium and be a target. so pretty much everybody feels like they're now under siege. >> that's one of the unique and most harrowing aspects of this tragedy. is that they were not targeting nodes of power, government buildings, places of business, but rather the places where civilians go out and socialize and try and have a normal life. are there people who are more reticent to go out and socialize and do these things or is it more of a point of solidarity for parisians to continue living their daily lives as if nothing had happened? >> i definitely sense that there's more fear now than there was after charlie hebdo. certainly there's a sense of solidarity, yes, we should lead our lives like normal. but it's really not normal. i mean, you know, it's kind of a strange situation. where everything feels normal but then a loud noise happens and everyone panics. there was a false alarm last
night where people started running and screaming and they thought they reheard shots and people took shelter in basements. and, you know, everyone is very much on edge. i think that it hasn't entirely sunk in. it's kind of a little bit like in the late 70s and early 80s in italy. there were the years where there were left wing and right wing terrorism in the terms of the terrorists want to divide society and make everybody feel unsafe. >> beyond the solidarity we're witnessing in paris and you describe, i'm curious about the public opinion on policy and politics in france. whether you do indeed think there will be this rightward shift. i know the country is facing some regional elections in a few weeks and then the presidential election in 2017. what's your sense of where the general public stands on the retaliatory air strikes last night and then where france goes forward? >> i think that the right wing national front has been on the
rise anyway. but i it also think there's a b majority that doesn't want to shift to the right but kind of wondered what exactly the government can do. until these attacks happened, you'll remember the debate was kind of about how hollande, the socialist president, hadn't really been doing enough for the refugees the way angela merkel in germany has been. there was a sense france wasn't taking a strong enough stance to welcome these refugees. now there's kind of the sense that maybe the refugees aren't so nice and they're out to kill us. although that is certainly not confirmed at all. and i do think -- >> well, rachel, to outside observers, it would appear to be almost completely different from that. if i look at what nicolas sarkozy is suggesting, who for want of a better expression is leading the republicans there, isn't he saying all those people
under investigation for potential terrorist links should be put under house arrest? >> yes, indeed, that is what he is saying. and so the question is what can the socialist government do to kind of maintain france as a place of civil liberties and free expression without completely making it, you know, going on total and utter lockdown with a shift towards repressive action? i mean, it's very hard to figure out how a democratic government at this moment can protect its citizens and also protect the liberties and values that france has always stood for. >> well, rachel, thank you for joining us. france facing some difficult political choices that have been quite common around the world. >> up next, a bit of news on the merger front. a $12 billion deal in the hotel space inc.ed this morning. we'll have details when we return. we've created a new company...
initially looked at the transaction in may and passing on starwood, he was drawn back to making an offer because its stock underperformed his own by an additional 15% over the summer. >> we're attracted to this deal in part because they accelerate our globalization. we have been obviously in the business for a long time but starwood is more global than marriott is. and we think it's a good thing that we will have more sources from around the world. at this moment in paris, that may not be ideal. but when you look at potential performance in the years ahead, growth in developing markets, i think we will see in the long term that that contribution is fabulous. >> no break-up in the press release today. importantly, they say they're going to keep all 30 hotel brands, 30 hotel brands still running. >> expanding portfolio to say
the least. some were surprised not to see hyatt. >> what do they say, more than 1 million rooms globally? >> i think they didn't necessarily want to have hyatt's stock at the end of the day. >> all right, well that does it for squawk alley and squawk on street as we hit noon. let's send it back to the halftime report. we begin with breaking news at this hour. the aftermath of the paris terror attacks. police in france and belgium conducting raids in both countries today as they continue to hunt for suspects who may have played a role in friday's attacks. meantime, the president of the united states holding a news conference earlier in turkey where g-20 leaders are meeting, defending his strategy to deal with isis. we have team coverage at this hour. michelle ckacar ruse sa cabrera. john harwood, we begin