tv Squawk Alley CNBC March 22, 2016 11:00am-12:01pm EDT
campaign trail. he called on congress to lift the trade embargo and there's that issue and the issue of brussels and fighting terrorism. quick comment. >> well, the cuban embargo is, can be lifted based on conditions of democracy and progress for respecting labor rights, et cetera. that won't happen until you see change on the ground there. >> thank you, roger. thank you for joining us. >> we want to get to the news of the day. the deadly explosions in brussels. sue is live at hq with an update. >> thank you and here is the latest on the terror attacks in brussels. president obama as you saw on cnbc a few moments ago speaking out on the attacks while addressing the residents of cuba. he called for world unity against terrorism. >> this is yet another reminder that the world must unite. we must be together. regardless of nationality or
race or faith in fighting against the scourge of terrorism. >> here is what we know at this hour. two explosions, at least one likely caused by a suicide bomber rocked the brussels airport and the train station killing at least 31 people. three were serving among those seriously injured. two key railway stations reopening right about now but the central station will remain closed for the moment. security will be beefed up with about 500 shoulders. smoke was seen billowing out of the terminal. a tv station reporting at least one of the bombs at the airport contained nails. there was no immediate claim of responsibility for the attacks and no immediate evidence leaking the key terror suspect arrested friday to those attacks. flags at the european union flying at half staff. the attacks confirming the worst fears of european officials who proclaim the continent at war.
belgium raising it's terror alert to the highest level. that's the latest on what we know now. we're monitoring the situation and we'll have updates on this developing situation throughout the day every half hour. meantime, carl, back to you. >> thank you so much sue back at hq. market's reaction has been negative to be sure both in europe and the premarket here but has recovered some what since the open. dow is down 33 points. s&p is down about 2 points coming after a day yesterday where we had the narrowest range of the year on the s&p and the lightest volume day as well. transportation stocks might not surprise you and have been notably weak in addition to other sectors but tourism to europe is going to be a focus whether it's a cruise line or airline and hotel or booking company. >> the markets have proven to be resilient in matters of this magnitude. because they have been so regular. the fact that the dow is down 33
points is remarkable given that heightened since of alarm throughout the world in paris in november. it's down 1% and will recover within five days. >> it's a recognition of the world that we live in so that life goes on like it or not and commerce continues that pattern has been proven since 9/11. terror attacks happen and market focuses for awhile and then manages to rebound as life continues. we have more on the situation in brussels. what the president just said in havana. speaker ryan, secretary carter all speaking this morning. we have john harwood in d.c. to talk about what is important. >> as you noted we he have reaction across the government and while the president was in havana delivering the speech we just carried the secretary of defense is testifying before the house budget committee and he
offered his reaction to the tragedy in brussels. >> we must do everything we can to protect our homelands and defeat terrorists where ever they threaten us. no attack will effect our resolve to accelerate the defeat of isil. >> he said we will do what we need to do to deal with the threat in those remarks although obviously his remarks were pitched to a different subject and moved on from bustles and delivered the speech to the cuban people.
>> i thought given the gravity of the situation in brussels and on the heels of both paris and san bernardino i thought he would dwell longer and say more about those attacks. >> if memory serves me correctly he is anxious not to draw too much status to for example them on the ground that we might call isis. and it's very difficult for any society to guard against this sort of attack. there's an inevident blt about it and a design not to go back into the discussion about ground forces in the middle east. >> you're exactly right. the president's consistent message has been -- we will have a strategy to deal with isis and
involves working with forces in the region and also increasing intelligence sharing and being vigilant as we can in terms of homeland security but also not overreacting. not feeding public fear and he has been criticized for not acknowledging public fear enough. but also not a panicked situation that causes the united states to overreact. he was trying to strike the balance and this is consistent with the messages he's had in the past. >> another event that will shape the 2016 presidential election. we are getting some comments from john kasich. one of the candidates. former governor of ohio. do you expect him to strike a different tone than we heard from trump and cruz condemning this attack but to condemn the president's own policies?
>>. >> i wouldn't expect anything dramatically different. he has not emphasized as much as ted cruz has the fact that it's a threat from radical islam. ted cruz in his message this morning just outside the building where i'm standing this morning in washington said this is part of the problem here is the president won't say the name of the enemy. he won't envolkswagen the term radical islam and john kasich's message has been different he said water boarding could be fine. this is something that has distinguished him from hillary clinton. hillary clinton said torture isn't the answer to the problem. closing boarders isn't the answer to the problem. so we do have a pretty clear.
>> she has opinion at the airport throughout the morning and is based in brussels and she is there where one of the terror attacks happened but before we get to gabriel we want to get back to headquaters where sue herrera has an update on the situation. >> this is from nbc's richard engle that said investigators are making progress. a senior u.s. intelligence official tells him that belgian police are searching a residence in brussels that they believe was the launching pad for this morning's attack. they believe this was a staging ground for the attacks that occurred in brussels this morning. in addition, u.s. intelligence is coming through the
intelligence and chatter and they're still attempting to determine if there were other imminent threats and attacks. there's an active search underway in brussels according to richard engle and senior intelligence sources. they believe it may have been the launching pad for this morning's attacks that occurred at the airport and also at the train station. subway station. they are also going through the chatter and they are trying to see whether or not there's more attacks planned and whether those attacks might be imminent. we'll keep you posted kayla and everybody i'll send it back down to you. >> thank you so much, sue. let's get to gabriel, the wall street journal brussels correspondent that joins us on the phone from the brussels airport. you have been there throughout the morning. we have seen these pictures and these arresting images, what have investigators learned since you have been there? >> well, what happened here this morning is that shortly, or just around 8:00 p.m. two explosions went off inside the departure
hall of the airport. very busy at 8:00 a.m. lots of people flying in and out of brussels in the heart of the european union here. one of the witnesses i spoke to that was very close to the blast that he heard somebody shouting in arabic just before but i don't think that's been confirmed by the investigators. the situation is very fluid. as your colleague just said there's house searches going on throughout brussels and obviously 30 minutes after the first blast here at the airport there was another big explosion at the metro stop. it's the part of town where a lot of the paris attackers lived. it's a subway station right next to the european commission and next to the european council where all the eu institutions are. at least many of them. >> yeah, that's the artery of diplomacy in the heart of the
city. as you have been based in brussels, the city for months and perhaps even for years has been under this elevated terror threat and i'm wondering how the mood city wide evolved since paris. since the manhunt that resulted in the arrest of salah abdeslam on friday and now with more manhunts and searches underway throughout the city. >> we had heightened security in brussels since last january already after the attacks and that was expanded dramatically after the november attacks of course. and we had the four day lock down here which of course was worrisome for many people but we haven't really felt the impact. there was a shooting a few years ago but it was much smaller and much more localized and i think that these attacks today with so many dead of course will slip the mood.
i think overall until a year and a half ago, brussels is like a calm little international city with not that much security until then. the institutions have very much moved security over the last six months with more checks, more controls. >> gabriel. >> this will change the mood dramatically. >> we're obviously in very early stages and details will become available and then be retracted and we await nbc's confirmation as to the exact complexity of what went on at the station but we already reported that belgian television is suggesting that a nail bomb was used there. other radio stations within europe have been reporting that there were two bombs. a small bomb to get people running and then a bigger bomb effectively to hit them as they were on the move. are you able to give us any color or details on that as we await some form of official
confirmation. what's the belief of the new services on the ground. >> what i can say is that we've also been speaking. >> i believe we're having some audio problems with gabriel. the brussels based correspondent for the journal. we know, simon, that the cell phone networks have of course been incredibly busy as people try to use them to reach their family members. to reach their companies and verizon to that end has actually decided to make calls to belgium free retroactively. >> what was interest as good the belgian authorities urged people and companies to text. when we have the london -- >> social media. >> when we had the london bombs they cut the cell phones completely. so obviously the security cautions that you take in a city are moving on. the highlights and security control at airports in this country and around the world.
mary thompson has more. >> in the wake of the belgian attacks. and they said the news didn't have any impact on the plans or notions about flying domestically however if they were traveling abroad that might be a different story. >> i wouldn't put myself in that position too soon without a problem. there's added security at
airports and cities like new york and washington d.c. cancellations of flights into and out of brussels today. and giving you updates on what's happening. back to you. >> thank you so much. meanwhile as the entire world swatching the events unfolding in brussels, let's get to nancy in london with the latest. >> what we know now, federal prosecutors in belgium have confirmed two separate attacks with two explosions taking place at the main airport around 8:00 a.m. at least one of the explosions was likely from a suicide attack. overall at the airport they said at least 11 people were killed as the attacks together were talking about more than 200
injured and 20 killed at a central metro station located very close to important eu institutions there and this happening just a half hour after the initial attack at the airport at the key rush hour levels there. let's get a reaction from what we're seeing here in europe. outside of brussels there's been an outpouring of support from european leaders. the french president still coping with the members of the terrorist attack in paris came out and said this is an attack on all of europe. prime minister david cameron said they were willing to offer security support, intelligence support as needed but at the conclusion of an emergency cobra meeting in london they will not raise the security level here for now which already stands at severe. pl >> we have seen equities pair some of the sharp losses we saw and the reports of the atrocites
in brussels and now we're lower by a half of a%. and we saw into gold and the currencies here and sterling one of the worst performers in the currency space against the dollar and there were some suggestions that when we talk about the repercussions going forward from the brussels attacks that this could weigh on antiimmigrant sentiment here in the u.k. as we get closer to the referendum in june but simon was speaking earlier mentioning it could have the opposite effect as we talk about the outpouring of grief and support and bringing those together in support of european unity here. back to you.
transportation largely to a halt. meanwhile the markets have done their best to trim their losses. the dow is down 12 points and s&p is basically flat and so much about the attacks we don't know. >> we're still watching what's going on in brussels and arnold the world. mayor on any other day we would be discussing foreign policy but given what has happened this morning, in your situation, you are no stranger to violence in your own country. what are your thoughts as you watch this? >> first of all condolences and it's heartbreaking. we want to wish all the people wounded a fast recovery. i think that everyone understands terror is not local. terror is global and it's a threat for all demonth cracies the world. it's to have great intelligence
and the world has to cooperate and the best defense is offense. go after the bad guys. with no mercy with terror. if you have mercy, you pay a price. brussels has to open up and not stop and return to life as quickly as possible. >> you mention the best defense is a good offense and as we see brussels raise it's own security threat to severe we see the eu raise it's security threat to orange. is that reactive? should we be doing something more proactive than heightening security after each attack? >> definitely. i think -- but it's not a short-term thing. you have to look long-term and understand that terror is here to stay for awhile and you have to go after the heads of terror. you to understand that there's a direct connection to the people funding terror and that is iran
and others. people that are supporting terror. the people that are hosting terrorists. they have to pay a heavy price. we have to get our act together the whole world and understand that if you don't cooperate and be very aggressive with the terrorists and the people that send them, then eventually you're paying a heavy price and it's all about defense and you don't want to be in that position. >> how would you characterize europe's response up until now? have they been behind the curve in everything you just said? >> i don't think we're there yet. after the terror attack in france and we took my chief of police and went to paris. maybe we can convey that message to other majors around the world. you have to understand who the bad guys are and it's a infrastructure that you have to put in place and cooperate and learn from others and my best advice to brussels right now, open up public transport and clean up as fast as possible and
move on. you want to show the terrorists that it's minimal damage. so unfortunately loss of life but fast as possible go back to normal life. >> i hope we get to come back to talk about you running marathons and how important that is to jerusalem but to come back to brussels, you say you went to paris, there is the european union buildings where sala salah abdeslam was hanging out for four months and they found out he was there on friday because of an oversized pizza sord. it's slightly different for the europeans because they have self-radicalized nationals that have the right to be there. they were schooled there. it's their home. it may be different for jerusalem. >> it's not different. >> would you go into this area? what do you do with an area like that? what do you do? >> you get your act together. you take some brave forces and
you enter the premises. you enter the place. >> you go house to house. is that what you're suggesting? >> i'm not saying that. that wouldn't be the smartest way to do it. >> you define what the thet is and you work it out. by the way, the majority of the residents are good people, for sure. you find the bad guys. >> but isis has these incredibly fragmented networks across the world. if it were so easy the governments would have already done this. >> you take extra measures. i think we have to learn, israel if i could sort of say what we're doing, the quality of the
human intelligence and electronic intelligence is the most important thing. you want to figure out who the bad guy is and cooperate that. television is the same. these guys are usually working in one way shape or form together. it's the same kind of pattern. it's share knowledge and experience and move on as fast as possible. >> final question just a few seconds left. do perimeters at airports need to be standardized around the world the way they are. >> if you want better kwaul tie of security, probably so. you know, it's not a simple thing but there's lessons made and we love sharing that with the rest of the world. >> we appreciate you time this morning. >> we're back in a moment. vo: know you have a dedicated
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some leads. u.s. intelligence is combing through the intel and the chatter still attempting to determine if there are other threats of attack. here's a time line of what happened. 8:30 a.m., two explosions rocked brussels airport and then at 9:40 an explosion hit the metro station near the eu headquaters. and at 10:20 the french president held an emergency meeting and at 11:55 the federal prosecutor called the explosion a terrorist attack. 31 people were killed in the explosions. 200 more injured. three american missionaries in paris were among those seriously injured and two key railway stations are reopening but the central station and the airport remain closed. politicians in the u.s. are condemning the attacks during the republican leaderships weekly news conference. speaker of the house paul ryan weighed in on the tragedy. >> these are countries have always done we must confront
this democracy. our prayers are with brussels as is our solidarity. >> and that is the latest on the attacks. we'll have updates on this developing situation throughout the day on the half hour and the hour and breaking news as it warrants. i'll send it back downtown to you. >> sue with an update of the situation in brussels. let's get back to the ground in brussels where a bronchusel's based reporter joins us now on the cnbc newsline we're so appreciative as you work to cover this story. how have you watched this situation unfold. and brussels time, i spoke to
people near the ticket counter. one man saw a woman's leg -- it's just -- there was blood. one person called it an apocalypse. it was just so horrific and, you know, i was able to talk to some people that were there. one man i spoke to works at the swiss port. he was lucky to have made it out with only a few bruises. it was a very dramatic experience this morning. now i am back downtown near our offices actually located in the eu bubble in the capitol of europe and the metro that was bombed this morning. that's where i am right now. >> we want to talk more about the situations where you are now but we need to get back to sue with breaking news. what do you know now. >> basically what we know is
that a news agency that is close to isis is claiming that isis is responsible for the attacks this morning in brussels at the airport and the metro station. the train station. once again the islamic state news media outlet that is apparently close to isis is saying that isis is claiming responsibility for the attacks that occurred. several attacks that occurred this morning in brussels. kayla, that's all we know right now. nbc news obviously working to confirm that story. richard engle reporting a short while ago about the raid on going in brussels at this hour. they think they may have found the launching pad and now a news agency is claiming that isis is responsible for those attacks. back to you. >> thank you, sue, i believe we still have tara from politico on the phone. obviously it's going to take awhile for brussels the city to return to business as usual as these manhunts continue.
we know that the eu, they're still letting staff come into the buildings if they have badges but all meetings on premises and outside have been cancelled. what have you learned from the eu which you traditionally cover for politico about when they will return to normal. and i know in this eu area that many of them have been advised to stay and some are trying to car pool to get out of town but if you weren't home you are to stay home. and the flags are at half mast right now out tps side of the circle which is mean by where the attack happened and that's in the location of the eu
council and the commission. people move very, very freely. it's not a city that really lives in fear and when you look at this, to an american audience, it looks like a major attack on major institutions in europe. in fact, if suspected you're on the ground it's a terrible thing and it would appear to be a much lower level assault. does that make sense from somebody that spent so long in brussels? >> i have been here for about a year.
and it's been waivering on and off honestly. the situation. after the attacks in paris in november, december time and we were under lockdown there were military personnel and tanks coming down the streets and police everywhere. then it let up a little bit after new year's eve when there was another planned attack on new year's eve. so we all let our guard down a little bit thinking this situation was diffusing. we weren't hearing about it as much through our sources. and obviously there was another attack. so it just seems like the intelligence that they were able to gather that took wasn't useful enough or maybe they should have raised the alert after that, at capture.
>> we hope that you'll stay safe and we appreciate again you calling in to share your perspective. >> thanks. >> for more coverage on the attack in brussels we're joined by mark kimmitt. aga it's good to have you. good morning. >> i'm good, how are you? >> a lot of discussion in light of the last conversation about whether or not this was a last gasp for isis assets in brussels as general clark suggested this morning but on the other hand we don't know whether they're in full strength. how are we supposed to evaluate that? >> i think general clark is a little bit closer to the issue than has been suggested. it is clear that when these types of attacks happen, not only do you, are the groups able to create a lot of causalities but they leave a lot of tracks and intelligence and as a result that's why you are seeing the subsequent captures and it could be that this group that did the
attack today knew that the nus was tightening on them so they, in fact, did an attack, potentially earlier than they had planned to. >> so the notion that this is a use it or lose it style attack makes sense to you? >> well, the issue is that every time we would do it. but all the sbintelligence and that lead us to more and more targets and that may be what these terrorists are recognizing is that with the capture of salah abdeslam and others that the news may have been tightening and they were giving up information as that was found but that will not stop future attacks. it may be the last gap of this particular cell but not this
organizati organization. >> you may not be aware that the breakfast shows here were alive with these events and also with donald trump suggesting that the united states should double down on water boarding. given that you raised the fact that salah abdeslam is in custody and that may itself have precipitated this attack, how do the europeans go about interrogation? how able are they to extract information in your view and would you expect salah abdeslam to talk and reveal details? >> well i'm not going to get in the middle of the controversy in terms of torture and intelligence gathering but and who he was working with. obviously if he wants to survive
to move on for a different day and not spend the rest of his life in jail, he's going to provide information and intelligence as well. >> a lot of discussion this morning general about, i guess you would argue about a relative lack of coordination when you compare european law enforcement to american law enforcement. and you can be right and still have an attack of this size. >> in terms of security perimeters we keep discussing whether or not this attack is a reaction to security protocols that have already put into place. >> in some airports you can go into the departure hall with a
suitcase which carries a significant payload. does that need to change? >> it's clear that terrorists two after soft targets. they do a significant amount of information. they know where the security is tight and loose. that he requires self-examination by operational organizations to make the determination whether they're one of the soft targets or the hard targets. >> but general, can you actually win that game? if you're watching these events at the city or the state level, if you make the airports more secure, don't they go for the next target down which is a transport network or other places where people congregate.
>> they reaffirmed our country's support for belgium offering assistance necessary to investigate these attacks. what sort of assistance could we offer. >> there's more and more intelligence between the companies is nothing but helpful. we have tremendous expertise in our transportation safety administration and our intelligence collection services and third it could well be material. we have some of the best scanners and some of the best trace detectors and we have some of the best barriers in the world and it may well be that the belgian government asks for assistance at all three levels of that. have spent three years in bell jam and frankly it is an airport
that could have used more security. it had much less security than heathrow and other airports around europe. >> thank you so must have for your time on an important day. mark kimmitt talking prbrussels with us. we're back in a moment. don't go away. you pay your car insurance premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call
>> 31 dead and well over 100 injured. the airport closed. very crowded space in cellular networks. some of the pictures here this morning. the markets had a tight reaction to it. opened with a loss of about 60 points or so. a loss of 24 on the dow and flat on the s&p. we talked a lot about the weakness in transportation names. we'll take a short break and check in with art cash about the market's response in a moment. we needed 30 new hires for our call center.
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these are terror events. horrific loss of life but no great structural damage. and the assumption is there's no follow on and as the mayor of jerusalem said on your air the attitude in most of those areas is we have to get on with our life and some order. >> what if this have greater political ramifications? what is the impact of those votes on the market potentially? >> that would be very important. the vote in britain is not until june so you won't begin to see that reaction. as you get closer they will be looking at the polls. the feeling is that it may
adverad adversely effect britain. >> many would argue against that. that it would be in britain's best interest to stay in the eu and it would be stronger. let me ask you specifically about where we are with the terrorist attacks. does the market reaction depend on where it is? i'm trying to remember what happened after san bernardino. the market says it's terrible. our prayers and thoughts are with the people that were injured but we're going to move on. >> back to regular business. >> and i guess the question of military reaction, do you have a lock step change in the world' response and therefore an escalation of the military situation which clearly you don't have in this instance.
>> no, you don't and in most of these, that's part of the frustration with it. it's not a classic military situation where you have an enemy to confront. they're hiding in buildings and they pop up and disappear just as quickly so it becomes very frustrating. even europe, you know, would think and they are muted too in their reaction and we're beginning to look at the price of oil in the market. >> it's all happening in low volume and a three day weekend coming up the week going into it has muted volume. i'm hoping thursday we may get
upward pressure because the day before a three day weekend has a 65 to 70% upward bias. >> thanks f stopping in. for more live on the ground we want to bring in chris. good morning to you. i'm hoping you can walk us through what you witnessed today and if there's any sense that going into the evening the city is going to start the process at least of moving back to so-called normal life. >> the city is in a grim mood. people are disturbed and fright frightened you had big chunks that were barred by the cops. in fact around the main train station which was completely shutdown, even though there were no bombs there there were troops
in full battle dress uniforms in force so you have a sense of things being not normal and the idea that everybody has to let's get back to normal as quickly as possible what we saw in paris is they wanted to take another shot to pull off another attack two or three days after november 13th because they know how deeply demoralizing that is and professionals are concerned that we're looking at that possibility here. >> given that, how do the belgian and french authorities now react? what do all the people with the masks on on the street and machine donees now do? where do they go? what will the politicians urge them to do? i'm referencing them again.
this area where they're able to hide out without detection by the police normally. >> they have been shaking them down for a long time. i spent the weekend there. it is neither so sinister as it's portrayed nor is it an easy target for police you have tight knit arab and muslim immigrants. they are deeply imbedded in that neighborhood. the economy of the neighborhood is based on an he elicit activity. all of that works together to make it a difficult place to penetrate from an intelligence point of view and they were not able to penetrate it if the most wanted man in europe could hide in plain sight.
>> stay with us. i'd like you to enter our next conversation. joining us is colonel jack jacobs. welcome to the program. i see that you already made fairly strong comments at the heart of this problem. you can be anywhere in europe. furthermore, europe has been very welcoming to people who come from outside particularly from north africa and european colonies and it's been an attractive place to go and in the meantime the european police forces and military have not been very good at sharing
information or being aggressive in trying to develop intelligence. so now they have to play catch up. it's going to be difficult to do that. >> they have some threat of information. officials told news out tps lets over the weekend that the cells could seek retaliation after he was arrested on friday. i'm wondering if you think today's attack is just that and how you would size up the risk for a copy cat or lone wolf attack. >> i'd be surprised if today's was a direct retaliation. it's possible to be in direct retaliation but everybody i talked to says probably not.
in some sense it may cause the latest conversation today is the u.k. to leave the european union because the boarders are too free. how would you respond from the perspective that you have? >> i don't think leaving the european union is going to make britain safer. look people are going to go to britain. yes it's an island but you can't keep everybody off. you have large muslim and arab communities there. 7-7 a horrific attack in london. had nothing to do with europe. so i don't think it would make sense for great britain to pull up the drawbridge and i'll tell you one concrete effect of that.
it may not be the best organization but it's the best one that exists in europe for coordinating intelligence is headed right now by a brit. well there won't be any if great britain pulls out of the european union so all of those have to be taken into account. the idea of pulling up the drawbridge is always an attractive one after an incident like this but it isn't, in fact, a very practical approach to fighting the kind of threat that looms ahead. >> some of these regional elections in germany, i wonder if that conversation gets fiercer even at the state level. >> no, that's right and the observation that it wouldn't be very healthy for a brexit, i don't know anybody that doesn't agree with that. it's not clearly thanking people that make those decisions.
and unfortunately situations like this has a tendency to drive them in directions that are not controllable by people in authority. if there is a british exit it's going to be very bad news from europe but also from great britain and very very bad news for united states whose single biggest trading partner is europe. >> thank you so much. our coverage of the attacks in brussels continues. >> carl, we do continue with breaking news this hour. the terrorist attacks in belgium that left dozens dead and scores more injured. let's go to sue right now with the very latest. >> scott, here is the latest breaking news on the terror attacks in brussels. the islamic state claiming responsibility t