across europe. investigators revealing up to 20 jihadist sleeper cells scattered across the continent. some plotting eminent threats. they have been tied to the paris terror attacks. we are breaking down the developments overnight. good morning. welcome to "early start." a lot to get to. i'm christine romans. >> and i'm john berman live in paris. we want to welcome our viewers in the united states and all around the world. it is 4:00 a.m. in the east. 10:00 a.m. here in paris. breaking overnight. new information of a terror threat spans four countries. western intelligence source tells cnn it involves 20 sleeper cells. police in belgium shattered a cell thursday night in a raid. you see police walking by here. secretary of state john kerry has just come to this location. he is now leaving. we'll talk about that in a bit. a raid in the city of verviers. belgium officials say that was one of several raids. in this raid foiled a major attack. authorities will not say, they do not confirm any link with

because of the recession in europe. i was in paris staying at the most expensive hotel in paris. you walk into the lobby and see -- >> hold on a minute, brian moynihan. good morning. did you just hear that? >> we get great discounts ok? corporate travel. >> you see two red giant basically, polar bears. you don't know if it is christmas decoration or art. it was explained to me by the manager there may to basically attract russian tourists. except, there were no russian tourists because of the collapse in the ruble. the dining room was empty, the lobby room was empty. the russian crisis is basically hitting hard for luxury travel especially in europe. >> let me talk about air travel. ♪ every night in my dreams ♪ it is all titanic. it is jack and what's her name rose on the bow. there is the madness of what the business class ticket costs. >> i will take your "titanic" and raise you. i think there was -- megan is right about this. if there's sufficient competition. i don't think we know there is sufficient competition

this is a europe wide problem, issue. and a europe that is 10-15% foreign board. first, second generation. foreign generations. these are issues that europe has time. >> the united states has been 10-15% foreign born. we have tensions over it. different? >> you know, i hear this all the time when i was at the department. the american model. it is a dream for many countries. you guys figured it out. what is the secret. what have you done. the answer is the same. it's not that we figured it out. but long ago the political leaders decided the direction that the country would go is multicultural, military ethnic and face. that's a tradition of separation of church and state. there are systems, a framework put in place that i think supports that kind of approach. these are issues that many european governments have yet to grapple with. there are certain governments - belgium, france among them that have not fully politicly absorbed what they are dealing with. i think, you know, with all due respect to the integration, not integration debate. french muslims, to some ext

it's breezy europe closer together -- it brings europe posted together. it is bringing people together. >> that's evidence of the last 24 hours. you need to go back to the economic story and the lower- middle-income limits of society at the moment. you cannot exclude the 2, not mutually exclusive, and that will be one of the critical debates. the economy, how to integrate minorities and the french parties, part of the same story. this is part of the story. it is going to have a meaningful impact. >> caroline has arrived at the deck and shooting site -- has arrived at the second shooting site and she will join guy. equities are up. gains by tesco. if you want to continue the conversation, i am twitter. good luck for the rest of your day. ♪ >> a massive manhunt underway in paris. french authorities continue to search for the two main suspects in yesterday's shooting. prime minister manuel valls says preventing another attack is the main concern. another shooting this morning, two police officers said to have been shot in southern paris. the authorities ar

in europe it has been 3% of gdp. when you're in a situation in which credit is not going to work the same way as it did before, we cannot have debt the way it was before. the interest rates to bring down debt service payments cannot decline. you can spend with debt or you can spend with money. we need to have more money into the system. money can produce more purchases. it also means that when the two levelers are interest rates and currency, when the interest rate lever doesn't work, currency becomes more effective. we must see more volatility in currencies. the average cost of structural reforms, structural reforms are important. the average cost of eight southern european, after adjusting for the amount of time that they work, vacation time, the workweek, retirement age, is about twice what it is of an american worker. so it is expensive. either that will lead to structural reforms in the form of changing to make that more efficient. there is a lot of potential in europe to make things more efficient and more econ

syria and iraq brought home to europe. those returning fighters attempting to carry out jihad on western soil european soil following training and experience on the ground in iraq and syria. >> absolutely. although of course coulibaly expressed allegiance to isis. it's all kind of a confusing mess. jim sciutto, thank you so much. let's bring in former secretary of homeland security under president george w. bush michael chertoff founder of the chertoff group, a global risk management advisory firm. secretary, thanks for being here. this was the big fear that's been talked about ever since isis was born is that these foreign fighters going over there from europe from the united states would come back and obviously there is still so much we don't know b according to belgian authorities, these individuals went to syria, came back and were plotting something. >> we have seen for months now a steady flow of westerners going to syria and iraq and fighting there, and then coming back and that's been a pattern literally over decad

>> is the question that we cannot afford to have you week in europe? -- qw ine in europe. it is necessary, but is not sufficient. >> are you saying that we are not as imaginative as the u.s.? i am joking. i think it is an emerging market in terms of growth. i'm very positive of the u.s. i'm a lot less negative on europe than most americans. allow me to use this example. we waste $9 billion, a lot of that came from the american, and may i say very smart money. we see a lot of investment in europe. i think the biggest challenge is unemployment and getting the recovery to be broad-based. when we do structural reforms and i was happy that i was not want to bring it up, we have , spain has created 3000 jobs. growth is up to one half 2.5%. we need complementary economies. we cannot all do the same. talking to my customers, i make loans to companies that create jobs. they have aspain has a very robust motor market. we have more productive factories of the same company in spain and in germany. i don't think all is lost. we need to do more. i am confident though that europe will ma

how does europe confront that? >> well sweden has had the most liberal policy toward welcoming migrants from syria and from iraq and as a consequence, the swedish democratic party which is swedish, but it's surely not democratic, like the french national front, vigorously anti-immigrant and is now working very hard with the position in parliament to change those policies. you see this with the uk independence party even though the british economy is doing better. across europe you have the growth of these parties that are fundamentally nativist. they're also very euro skeptic. i wouldn't say they're working together, they all focus on the national basis. but this is really making it much more difficult to govern europe. and it's not as if they're doing well economically they need more political cohesion between germany and the periphery to deal with their broader economic challenges. this year is the year it precisely will not happen. and the headlines we see coming out of france today make it much harder. >> ambas

not in europe. what happens in europe after the first world war. essentially, yes the losing empires lose and they implode. right? russia ottomon empire hungary in imperial germany. obviously those guys didn't get the good part in the deal. but even if you sort of think in terms of the french and the british who won, yeah, essentially what happened in europe and africa well their empire basically vanished. this is the largest extent of the british empire is after 1919 not before. and even though woodrow wilson is trying to talk about self-determination and move beyond the era of ottomon empires, it's not happening immediately. in the east, not in the middle east certainly not in africa. but i would argue that it is very much happen inging in asia in a way that's quite shocking. you see this -- remember this quotation. just remember, again, the degree of interest in asia in the modern 19th century. the degree to which these great european empires are plugging on to the chinese economy. it's not a formal empire. but they're excited about the growth p

europeans against islamization of europe. yesterday people felt that it was sort of outrageous because one of the main representatives of the anti- muslim movement in germany, they tried to capitalize immediately on what happened. i think that many people understood the game. they really understood the game and they felt really outraged by this. in my opinion this is outrageous, to use this horrible massacre for political reasons to try instrumentalize it on the same evening, it goes a bit too far in my opinion. >> interestingly, they were a bit wiser there. they in fact issued their grief and condolences to the victims. i would like to come back later to the larger european issues. let us now take a look more closely at france. france does have the largest muslim population in europe and it has, as you mentioned seen islamist violence in the past. let's take a brief look at some of those incidents. >> it is not first time that france has faced severe terror attacks. in the 1990's a group struck repeatedly including at a jewi

>> hello and welcome to "focus on europe." thanks very much for joining us for our very first program of 2015. 2014 was a tough year with plenty of challenges facing europe, and this year, there's no sign they are going away. on today's program, in serbia, fighting for russia over ukraine. in poland, fighting for a living wage. while in britain, fighting for more re-time -- free time. as tensions grow between europe and russia because of the ukraine conflict, european countries with close relations to moscow are finding their loyalties split, and that is particularly the case with serbia -- traditionally a close ally of russia, but the country is also keen to join the european union. some of those who have fought on russia's side are serbian nationalist. reporters got exclusive access to some to find out why. >> dreaming of a new and more powerful serbia. at 21, he is a bookseller by profession, but like many young serbians, he is out of work. he does many odd jobs to keep his head above water. >> i want a better life and for

europe. >> thank you very much. >>> massive terror attacks disrupted. we have new information on what the united states knew about the plot. >>> how easy it is to make the deadly explosives found in the terror raids. >>> we're learning more about the sleeper cells. as many as 20 of them. there could be 200 militants. efforts to develop a more sophisticated bomb to elude western screening. she inspires you. no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink al

the new europe the former u.s. defense secretary donald rumpsfeld once proclaimed seems as divided as the old one, the only difference now is russia is proven willing to throw its weight around in places it still wields power. up next, the new cold war continues as i go one on one with the man who helped ends soviet communism 25 years ago. so why does he still fear russia today? answers are just two minutes away. >> because i was african american i was trying to fit in >> misty copleland's journey wasn't easy >> dancing gave me the opportunity to grow into the person... i don't think i could be without it >> now, this trailblazer is opening the door for others >> i wanna give back to ballet what it's done for me... >> every sunday, join us for exclusive... revealing... and surprising talks with the most interesting people of our time... talk to al jazeera only on al jazeera america >> a crisis on the border... >> thery're vulnarable... these are refugees... >> migrent kids flooding into the u.s. >> we're gonna go a

we have sort of steadily made our way outside europe. i am going to try my best to get us even farther. i do want to thank the mcarthur memorial also the hampton roads naval museum and old dominion to inviting me here. it is a personal honor and privilege for me and i think it is a personal honor and privilege for asia to be included on the program of world war i. thank you for that. you guys thought of it because you have mcarthur. i should have made my pilgrimage a long time ago. for us i do realize he is important in the first world war. for us we think of him as the asian general and one who was very much involved in the united states going global and going asia pacific in the 20th century. i think it is very apropo. i do want to speak of the larger issue of war in asia and why we should be worried about asia today. i think we will ultimately get there. just to begin here with my frame of some of you already know of what the japanese are up to during the war. this is one of the enterprises. we will get there in a second. it's not jus

we are going to come to europe and more operations across europe. cnn could not independent confirm the authenticity of the video. unnerving set of events and the enormous amount of terror activity. john. >> isa soares for us in paris. of course the biggest operation we saw overnight was that raid in belgium in the town of verviers calling it a terror cell planning an imminent attack. the belgium media reporting that the target to have been belgium police. all of this happening as secretary of state john kerry is visiting paris. meeting with the french president and foreign minister and discussing the fight against extremism. the secretary was behind me here shortly ago for a memorial at "charlie hebdo." the secretary of state came here and laid a wreath with the french foreign minister moments ago. this all happening as we understand there were 12 new arrests or detentions overnight of people in france believed to be connected to the attacks here in the city one week ago. i'm joined by terror expert fabrice magnier. 12 people believed to be tied to

and the security in europe is going to come up. the controversial issue of encryption. what the governments, how much visibility they have into the internet and social media communications the president saying if law enforcement and intelligence services can't see those communications that is a problem. the president also said something very interesting, comparing the threat in the united states and europe as well. talking about the unique situation in his view in this country, the assimilation of muslims, because of the melting pot tradition in this country are, assimilation of muslims in mourn society far greater perhaps than that of europe. there are going to be people that will disagree. let's listen to what the president said on that score. >> the united states has one big advantage in this whole process, and it's not that our law enforce or our intelligence services et cetera are so much better although ours are very very good and i think europeans would recognize that we have capabilities others don't have our biggest advantage is that our muslim populations, the

especially in europe. it works through exports and the wealth of fact and the credit impact are still not there. it is a limited impact. corporate's investing or not. there were cfos and i asked them which will be using more capex next year. two out of 40. >> what do they want to see? >> they want to see more reforms and something happen on the fiscal side. everybody thinks it will work in markets. they see it as a temporary measure. until there is not governments you will not see investment starting. >> markets are being complacent. >> i think we have to avoid things like greece. we were shorting greece and portugal is on the ends. they have kicked the can. spain has done reforms. we like investment grade. we do not like high yield. we see troubles for the smaller firms and the current sees lowering with fundamentals and deflation's. we like to stay on the higher-quality part of the market. >> the head of credit research, i pleasure. coming up, what happens in vegas does not stay in vegas. samsung and son

all through europe. so while we happen to be canadian, and we have canadian assets the impact that canada has on our portfolio is not all that substantial. >> great to chat with you. i've mentioned it before. we have to take a quick break but coming back we will be speaking to enda kenny. what's his sense of what mario draghi is expected to do and will it work is the crucial question. stay with us. we're back in a few moments time. >>> well we have been talking about it closing at a new all time high but traders watching the move in egyptian stocks closing at a 6.5 year high yesterday settling above a major technical barrier. the economy is benefitting from a drop in oil prices which eased the pressure on egypt's trade balance and inflation. now hadley gamble spoke to the president of egypt first on cnbc and asked him about his outlook for his nation. >> the optimism in egypt is a result of the failing of future stability and of a better tomorrow after a difficult period egypt went through during the pas

is this what europe needs? >> well, europe needs a kick, and this is what is going to give them that kick. at the same time, we need global growth, the imf, the world bank have lowered growth. commodity prices lower, deflation is the real issue at the moment. what's going to happen, this is going to be a good start to get the ball rolling and from there, we need our economy to pick up, more consistent data. housing data today, what was lackluster, positive and negative side of things. very important to watch. tracy: john, what's your take on all this? i mean a lot of us don't continuing was worth it all the money we spent. here we're doing the same thing to europe. does europe need that or get under control? >> a combination of growth. europe has the fortunate able to take the good parts of it, strip out the bad parts of it and put it in a program that works for them. they need a kick that gets them going, to make sure they monitor it and manage it the right way. tracy: how my little brother learns how not to g

these weapons could not be coming from western europe but from eastern europe to western europe. in eastern europe it is much easier to obtain the weapons even in places like poland and hungry hungary hungary. >> you were talking about how easy it is to travel to syria and yemen to train and come back with the same passport. talk to us about the role turkey plays. >> it is almost 90% of the time they have to go through turkey in order to get specifically to syria from the north. i think turkey has been lax in its security measures. it has allowed thousands of individuals to cross the borders. they mentioned earlier about the suspected wife of one of the paris attackers that she might have crossed turkey into syria. it didn't seem that turkish authorities really had a great zooming on her in order for them to figure out where did she end up after she left turkish borders. same for thousands of fighters who crossed by arriving in the south or going -- it is really important to figure out where the fighters are arriving to turkey from. are they going into spain or germany before the

there is a kind of rage muslim rage in europe. >> no. we do need to understand there obviously are some people among that community very angry. people committing anti-semitic attacks on journalists and terrorism. these are individuals motivate bid anger. the question is does that reflect the community around them? is that born out of the community around them or imported a foreign value they have adopted as a political movement. what's interesting muslim countries in europe despite marginalized marginalized educationally seem to be more contented with their life than the normal population. there's not a level of discontent with the society around them or lives they lead among muslims in europe compared to other kbroops. it groups. it's not something that exists in the larger population. >> let me ask you about sean hannity's specific claims which, again are mentioned as well. no-go zones where not even police and fire are allowed. sharia courts established, prayer rugs in every hotel, are italy of these things true? >> this is the sort o

we want to change europe in order to have a nearly liberal -- a neo liberal europe and a social europe based on equality to >> georgios katrougalos all member states. -- based on equality to all member states. >> georgios katrougalos a member of the european parliament. in egypt two sons of ousted president hosni mubarak has been freed four years after they were arrested along with their father. they still face a retrial on corruption charges. their release comes as at least 15 people were killed sunday in antigovernment protests,4 years to the day since egypt's arab spring. more from cairo. >> concerned that the sons have left the prison. we had a false alarm last week and it appears they have been released. one day after the four-year anniversary of the attentive resolution in egypt -- the attempted revolution in egypt in 2011. they have been acquitted on two of the three charges leveled against them, embezzlement and corruption. there is an insider trading case outstanding and they will be back in court in march to face charges paid the symbolism is clear. the revolution has come --

it is already europe's islamic finance center. islamic banking shows interest of banks loans. >> luxembourg gets around that by buying real estate, for example, which is rented out. >> commercial real estate. that is mostly what we deal with. >> the bank of china's european headquarters are also located in luxembourg. one big reason for that is the countries relaxed attitude toward banking regulation. >> for luxembourg, for example, if they felt that they need to to be in europe, it was a perfect hub for them to the eurozone. in addition if you compare to a city like london or frankfurt, if you go there, it has a stronger political standpoint. maybe they don't want that. luxembourg is more neutral from their perspective. >> the country is attractive to fund industry not only because of political considerations, but also because it is small. that's right home to genii capital, for example, an investment in management and financial advisory firm. one of its specialized areas is motorsports. >> if you look at the german automotive cl

the parts of europe in which that is not the case. and that's probably the greatest danger that europe faces. it's important for europe not to simply respond with a hammer and law enforcement and military approaches to these problems. >> let's start with that one. we will get back to whether or not who called them islamic extremists. president obama right there said don't respond with a hammer recommending europe not respond with a hammer. i'm shaking my head. couldn't believe he said that. >> i mean, it is a caution for these countries that have huge muslim populations that you don't want to have -- you don't want to just divide that community and force them to make a decision on which side they will be on. that worries me about this. these people are making head way to a point. now it is sort of stalled here. if they get more aggressive what are they going to do? >> they just had 17 people killed on their soil. >> how many have been saved? >> we don't know. we know there is a mass attack that they may have had information to stop an

>> the messages is that europe is not the future of austerity. it is the future of denyingmocracy, solidarity and cooperation. >> at that point, the outgoing prime primary was still talking of winning. >> in this election there is unprecedented large number of people who are still undecided. they will judge the result. i am optimistic because i believe no one will risk the european course our country has taken. we will win. >> there was a huge showing in the exit polls points for a regrounding win it could leave him free to emboldinary anti-establishment parties across europe who are threatening to change the political landscape. sue turtan al jazeera, athens. >> at least 11 people have been killed in bomb blasts in iraq. the deadliest attack took place in baghdad. bob alsagi area outside a small restaurant killing seven people another bomb can in the central suba area killed three civilians and wounded eleven 11. nigerian troops have battled against boka haram fighters following several attacks across the northeast. the army has repled boka hara

. >>> also has europe been flooded with masses of hate-filled muslims? if you listen to the airwaves this week -- >> prayer rugs in just about every hotel. >> -- the answer was yes. i'll introduce you to man who disagrees and says he has the numbers to prove it. >>> and, the economy. in 2015 who will be the winners and losers? what do we need to watch out for? i'll tell you. >>> then from paris to new york'syork finest should they focus on just terror murder and major crimes? we'll have a debate on the famous broken windows theory of policing with malcolm gladwell. >>> but first, here's my take. the paris terrorist attacks were barbaric but also startling leaving many to ask what could be done to prevent this kind of terrorism in the future. well one man has a clear answer. that attack you saw in paris, you'll see an attack in the united states senator john mccain told "the new york times." elaborating on how to stop this from happening, he explained to the "times" and to cnn that it would require a more aggressive american military strategy across the g

europe is also home of the nato alliance. the future of the united states and canada are inextricably bound up with europe given the close economic political and societal ties. if there's a problem in europe and the euro currency that is bound to have an impact on the united states. >> let's turn to india, another area of your expertise, great pictures in the last couple of days. clearly a budding friendship prime minister modi and president obama. good for both countries to get closer. is china the main motivator behind this? >> in a way yes. there are lots of motte vacations why the united states and india should be strategic partners. we are the two largest diffraction in the world. a natural bridge between us. our strategic interests are congruent. you mentioned one of them. both of us have important pivotal ties with china but neither india or the united states wansdz to wants to see china emboldened. not only united states but japan in that situation. i think president obama had a very good trip to japan. to see that th

and that's a recognition of that across europe. the last point i'll make and then i'll turn it over to david is with respect to the issue of intelligence gathering, signal intelligence encryptions, this is a challenge that we have been working on since i've been president. obviously was amplified when mr. snowden did what he did. it's gone off the pages -- the front pages of the news. but we haven't stopped working on it. and we've been in dialogue with companies and have systematically worked through ways in which we can meet legitimate privacy concerns but also meet the real concerns that david's identified and my fbi director, jim comey, has identified. social media and the internet is the primary way in which these terrorist organizations are communicating. that's no different than anybody else. but they're good at it and when we have the ability to track that in a way that is legal conforms with due process, rule of law and presents oversight, then that's the capability that we have to preserve. and the biggest damage that was

clearly we continue to have security interest in europe and security threats to europe. the recent crisis in ukraine over the last year illustrates that. but also, it's important to note that europe is a critical platform for u.s. military operations, particularly middle east and north africa. facilities, bases, and capabilities that we station in europe are absolutely critical to military operations throughout the middle east and north africa. and, in fact the world as transit points to asia and elsewhere. so i think our military presence, of course, has come down in europe significantly since the end of the cold war over the last quarter century. but maintaining a strong, robust forced presence in europe is absolutely vital to our national security interests. >> do you think with the eic process, the strategy would be better to face the infiltration of terrorists throughout europe? >> i'm not sure i understand the question. >> do you think we will expect better strategy to counter the infiltration of terrorists throughout europe? >> so there are two separate issues. th

the new europe that former u.s. defense secretary donald rumsfeld once proclaimed seems >> pain killer addiction on the rise >> i loved the feeling of not being in pain >> deadly consequences >> the person i married was gone >> are we prescribing an epidemic? >> the last thing drug companies wanted anybody to think was that, this was a prescribing problem >> fault lines al jazeera america's hard hitting... >> today they will be arrested... >> ground breaking... they're firing canisters of gas at us... award winning investigative documentary series... opioid wars only on al jazeera america >> feu countries are more suspicious of russia's actions than poland. in 1980 a new independent trade union called solidarity led protests that challenged poland's communist regime. by 1990 poland was able to transition to democracy and pivot itself towards the u.s. and nato. a quarter century later, former polish president lech walesa says, his country is on the borderline with another cold war with moscow. rchg 1980 a young elect

. >>> across europe today, officials are on high alert. the question hangs where and when might terrorists strike next. here is where the investigation stands right now. five belgians citizens are charged with links to a terrorist organization three of them remain in jail two released under what is being called strict conditions. this goes back to the police raid and shootout on thursday in which two suspects were killed. officials in greece have arrested some suspects and they're still looking for potentially others. the belgian government has requested the extradition of one person arrested in greece. more on those in just a few moments in a live report. >>> one of the biggest fears in europe right now is what nobody can see, the so-called sleeper cells, quiet terror groups who suddenly become operational. western intelligent sources tell cnn this could be as many as 20 sleeper cells planning attacked. a pair of u.s. senators also tell cnn today that it is time for america's allies outside of europe to step up. >> but are our allies doin

while europe responds the u.s. braces as the homeland security chief says today we are in a new phase of terrorism. so what is he doing and what is the administration doing and what is congress doing to try to stop the next blast or siege or some other disaster on american soil? good afternoon. i'm jake tapper. welcome to "the lead." we will begin today with our world lead. as many as 20 terrorist cells and anywhere from 120 to 180 accused terrorists could be ready to strike at any moment according to a western intelligence source. but while these alleged terrorists move in the shadows, today in france germany, belgium, counterterrorism agencies swept in on suspected jihadi units. already operational inside their borders, they say. in britain, london police detained an 18-year-old girl on suspicion of terrorism offenses. this as in france germany and potentially even ireland, police executed terror arrests of some kind or another. the breadth of this terror crackdown and the speed of these developments is just star

i mean is europe going to be ok? >> you know sue, what makes me feel about about europe and indeed global growth i think we come into this year worried about deflationary spiral. i think by summer we're going to see much better evidence of improved growth across the globe. and here's why, i think. i cannot think 2014 of a more aggressive policy stimulus year than we had last year. if you think about giving the world a massive drop in energy prices at the same time that government bond yields are collapsed everywhere about the globe, and then in europe you also weaken their currency and you do the same thing with the yen, that's a tremendous amount of stimulus a fiscal tax cut on energy like a quantitative easing policy among their bond yields and then weaker currency. we're redirecting a lot of stimulus to the eurozone and japan and even the emerging world. and i think we're going to see the globe bounce in terms of growth. might not be till the spring or summer but if we do i think that will bring a bid back to equi

today, oil prices rose on hopes that stimulus plans out of europe might help the market. west texas crude was up nearly 3% while benchmark brent crude closed just over $49 a barrel. and not to be left out of all of today's central bank action the bank of japan cut its inflation forecast to just 1% for the year also blaming the sharp drop in oil prices but the bank also increased its forecast for economic growth projecting the world's third largest economy will expand by 2.1% by next year. >>> now to another troubled economy. cuba. where a delegation from the u.s. began historic talks to normalize relations between the two countries after a half century standoff talks that could have a big impact on american business. eamon javers has more from havana. >> reporter: a small group of american tourists watched obama's speech on live television from a most unlikely location right in the heart of castro's cuba. >> it's an ironic experience to be in cuba and have cuba in the basement of the hotel nationale and watching obama's state of the union. i love it. >> reporter: people a

the only one around europe. this is very strange because today the reaction is is the italian system is not solid and strong in the bank system. i think this is not correct but today, exactly today, we decided that in the board government and council some about popular banks. in italy there this is tradition of a system of popular banks. very closed to international market and from today we decided exactly that. the first time banks, very important some of our banks are forced to become traditional company and now they are open to international markets and international investors. this is a very radical change in the traditional system. so article 84 jobs market. fiscal system for the international brand if you are international brand you can apply the -- comply -- the compliance in relation with the physical system in italy. this is important because it's very complicated and confused. so with the compliance and relation we change the approach the change of popular banks and the idea of finally if you invest in

europe itself and not the nation states composing europe. i don't know how qe will be structured but if it moves back -- the responsibility for the assets to the nation states that would be a mistake and move in the wrong direction. >> are you confident that central banks will get it right? we see what the central bank just did last week, what does it mean being in the markets nowadays? as a become more dangerous or are they realizing just now? >> there is a lot of activity in the markets. the market is expecting things. there is qe here and the impact of rates next week and then the elections, markets are nervous. volatility is out there and we have not seen so much since many months or many years. >> is that a sign -- we were talking before and you said we have been here the last few years and roughly having the same conversation, do you feel at the moment that maybe things are beginning to change quicker? the volatility, you talk about oil prices moving down aggressively, and as francine said, some big news coming through the currency mar

revenue in europe up 17%. the reason people might be surprised, when you look at the global economy, you see north america outperforming. that is not the story for your company. >> i think europe has for us been very good for a couple of years. we have strengthened our position in europe with a stronger market share in 2011 and 2010 where we increased our footprint in europe. i think that is very important. carriers are building and transforming at the moment. that is very important. in north america, what i found at the report this morning is that in the near term, we believe that the operators will remain softer on the investment in the mere term but again, have i to stress it again in the long term we believe the u.s. market is still the most advanced. oin vegas is happening in north america. our position is very strong there. it is more about right now this is happening. >> a big, big thank you for joining us first on bloomberg. the c.e.o. of ericsson joining us live and first on bloomberg television. that

europe focuses on this. but we've had more than 60 plots here or successful terrorist attacks, i use the word successful in quotes, since 9/11. so more than 60. we had new york in december we had ottawa, we had sydney. this is the new normal unfortunately. and we have to look at best practices and what we can do to prevent these sort of taebsattacks here at home. >> we've confirmed at cnn that cornell was not in touch with isis. but does that matter? if he had been successful the end result would have been horrific no matter if he was involved with isis. >> i'm betting we'll find out he may not have been in touch with them but i'm guessing he viewed their social media. isis the islamic state, is a social media superpower. that's how they're recruiting people to their cause. you don't have to go over there for training. you can watch it on the video, be self-radicalized home-grown learn how to pull off these sort of plots. this is a real problem because the internet transcends national boundaries. >> certainl

there are parts of europe in which that is not the case. and that is probably the greatest danger that europe faces. which is why as they respond, as they work with us to respond to these circumstances, it's important for europe not to simply respond with a hammer and law enforcement and military approaches to these problems. there also has to be a recognition that the stronger the it is, -- that ties of a frenchman of north african descent to french values, french republic, a sense of opportunity, that is going to be as important, if not more important then over time solving this problem. i think there is a recognition of that across europe. it is important we don't lose that. the last point i will make, and then i will turn it over to david, is with respect to the issue of intelligence gathering, encryptions, this is a challenge that we have been working on since i have been president. obviously, it was amplified when mr. snowden did what he did. it has gone off the pages of the news, but we haven't stopped working on it. we have been in

do you see $50 europe helping europe -- if you see $50 oil helping europe, how does it help you/ >> it is good. lower cost is higher growth. we are going to export more. if you see -- one problem in the last few years has been coming down, so if you see some of the bigger economies growing, that is also helpful for brazil. >> brazil has as good a read on chinese demand as any country in the world. is the chinese economy slowing at a faster rate than the data suggests based on what you see? >> well i think the slowing down of the chinese economy is something that will happen since they cannot keep growing their external market. when you grow your message market, there are some limits so they are just converging to the natural limits for the economy that grows with its own demand. that is not completely bad for brazil. part of what we export is very much linked to rises in the income of people so their own domestic demand, food and other things. >> sure. >> we believe they are converging in a quite orderly way. >> what i'm interesting in knowing, though, is we hear or we see data that su

that's a discourse that you hear all over europe.

we have a real economic problem going in europe that europe possibly to -- europe's leaders can catch their breath, they will have to address. >> you have the u.s. economy where everything seems to be going ok. the lead up to the jobs report on friday. liz ann sonders how critical is the jobs report? >> i think a path of continued strong job growth will continue the path to tightening in the middle of the year. i think it is more about that they want to start the process now. they want to put bullets back in their gun for future use in the events that we have problems. they are not turning a problem -- blind eye to deflation. >> keep your powder try, as well. liz ann sonders think you so much. our thanks. bloomberg surveillance on radio continues. "in the loop" is up next. ♪ >> good morning. you are "in the loop." we begin with an update on yesterday's shooting in paris. two suspects are still on the run. an accomplice gave himself up to police last night. authorities have released photos of the two brothers suspected in the attack on the magazine office. they have been spotted in n

the world is not waiting for europe. we have to be competitive as europe. that is one thing which is very important. we should not lower the pressure to do reforms with qe. >> but if we don't get qe and we have deflation, we are stuck. >> first of all, deflation, why? maybe deflation becomes because of the low oil prices, which is positive for the eurozone as a whole. it gives a lot of room to people. more money in customers' hands because of low oil prices. the situation is pretty positive for the people in the countries. >> michael, thank you very much for now. stay with us. sorry, finish your sentence. i keep cutting you off. >> particularly for the u.k. you are selling oil. but for all the countries which are depending on oil imports, it is very positive. >> michael, thank you so much for now. the chairman of the democratic union comes back after a short break. we will be talking about a possible u.k. exit. >> ok, we are also talking about the finishing touches on an suv that could roll off the assembly line sooner than expected. we will talk to the ceo

the new europe that former u.s. defense secretary donald rumsfeld once proclaimed seems >> on techknow >> we should not be having earthquakes in texas >> the true cost of energy hits home... >> my yard is gone... >> are we destroying our way of life? >> contaminated water from the fracking activities come here >> they stick it to the core of the earth >> but this cutting edge technology could be the answer >> the future of fracking is about the water >> protecting the planet saving lives... >> how do you convince a big oil company to use this? techknow only on al jazeera america >> feu countries are more suspicious of russia's actions than poland. in 1980 a new independent trade union called solidarity led protests that challenged poland's communist regime. by 1990 poland was able to transition to democracy and pivot itself towards the u.s. and nato. a quarter century later, former polish president lech walesa says, his country is on the borderline with another cold war with moscow. rchg 1980 a young electrician cli

europe's top diplomats emerged from a meeting here last night calling for more cooperation within europe and within the middle east when it comes to battling the threat of terrorism. one of the measures they said they would repeat request from the european parliament was to share more information about passengers and flight lists. that is a motion a strategy that has been blocked in the european parliament in the past to protect privacy. the diplomats saying they will raise that motion again. take a listen to the foreign policy chief also calling for more outreach to arab speaking citizens in europe and abroad. take a listen. >> i think we need to improve our capacity to speak arabic and read arabic and explain our policies and to listen to the messages that are coming from the arab world. >> reporter: meanwhile, the manhunt continues, john for suspected jihadi cell. home grown here in belgium. there have been a number of arrests over the course of the last week. a senior belgium counter terrorism professional tells cnn the suspected ringleader is a belgium moroccan man. he was last trac

you have lived europe. it is not the united states of europe, is it? >> that is the point larry summers was making. until we have the united states of europe, all of this central-bank action is not going to work. we also spoke about the fed. whatever we do here in europe is going to be impacted by what the fed decides. on this, madame lagarde was saying, she still believes the fed will raise interest rates this year. >> the fed is probably going to raise rates this year. our expectations at the imf, it is more likely to happen in midyear than the end of 2015, contrary to what the markets expect in a certain way. the fact the fed is going to do that is good news in and of itself. >> i know you watch this closely, but the global point, if we look at the world, if the fed starts raising rates this year, does it mean all this good qe, if you call it that, -- that is the problem. >> in the parlor game, of when the fed is going to raise rates, is sort of bores me to death. with all of your travels, is this a europe and recession? is it a growth that is some