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tv   Bloomberg Markets  Bloomberg  November 16, 2015 11:30am-12:01pm EST

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york in the next 30 minutes. mark: equities showing resilience after paris suffers the region's worst terror attack in more than a decade. the european close starts right now. ♪ betty: we will take you from new york to london to paris and turkey in the next half hour. kick things off for us, mark. mark: it has been a remarkably resilient day for stock markets. in one stage, down by 1.2%. money flooded into the european bond market. as equities rose, money moved .own from the safe havens earlier, we have the french to
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your touch a record low. the euro falling to its record low. most would be encouraged by the article on bloomberg that after bouncesuch as these do back as they did in 9/11. incourse, the london attacks 2005. betty: indeed. there was a reassurance. he saw the reflected market. you just said, and some of the trade here in europe. there were some stocks, luxury stocks that were pretty hit. obviously the worst hit subsector of the stoxx 600. i want to show you one company, europe's's largest hotel company. 7%.stock was down about 20% of its earnings come from paris and the surrounding region. thatis a concern,
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friday's's attacks will aid in tourism and consumer spending. all decline today. france set for spending on luxury goods. we have to say it was a givenably resilient day it was the worst terror attack in the region over a decade. isty: that resilience shining through. i want to give a check on the bloomberg first alert news. courtney donohoe has more from the news desk. courtney: president obama says the u.s. has no specific information that a terror attack was imminent in france. the president was in turkey for the g-20 summit and he says the u.s. and france are working closely on to -- on counterterrorism. president obama: france is already a strong partner in
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today, we are announcing a new agreement, which we share intelligence and military information with france. this will allow personnel to pass threat information including on ice all -- on isil more quickly and more often. dozeney: more than half a what are described as islamic militants. >> french authorities have arrested for than 20 suspects and belgium police conducted a major raid, but it is not clear if they rested anyone. prisoners held for more than 13 years at guantanamo bay. authorities say they no longer pose a threat. population, 107.
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the high rejected an appeal by abortion proponents -- opponents wanting internal documents from the organization. in $1 million grant to a planned parenthood chapter in the state. whipped up aont damaging tornado in central california and it moves south. gusts topping 60 miles an hour. light snow and hail fell at elevations as low as 4000 feet. wind knocked down tree branches and power outages all across southern california. that is a look at the first alert news now. you can get more on these and other breaking stories 24 hours a day at i am courtney donohoe. betty: thank you. those attacks came at a volatile time already for global markets. investors were already jittery about slowing economic growth in china. the future of the eurozone and
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mark had the data out from japan showing they slipped into a recession again. mark: you said it. .wo consecutive quarters attacksthat the terror would pose a risk to the economy. >> this sort of event has an effect on the economy. not a reason to change the way we see the evolution of the economy, but it is also chew on ae other hand that we have fragile recovery, a cyclical recovery, fragile and these sort of events do not help. mark: much more on that exclusive interview tomorrow. do not miss it or joining us is the former global cio and managing director of global advisors.
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thank you for joining us today. market equities have been remarkably resilient today. will the french and eurozone economy prove as resilient to the worst terror attack on european soil in over a decade? >> it is a good question. we're definitely in my view at a turning point. that turning point is already, you can see it from a geopolitical standpoint. different blocks around the world are getting together and action is taking place quickly. from a macro economy standpoint, there are different factors. there is a direct impact on terrorism but 10% of global gdp, 9% of the french gp, quite large around the world. if we had more attacks, i clearly think the industry is susceptible to weakness. the psychological factor in
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terms of business and consumer confidence, it is something interesting because there is a number of times where there are isolated cases and isolated events. at some point, they get link .nto a pattern i am not sure if we are at a tipping point but we are close and this is hard to judge. it is something we have to be careful about. people are quite confident, we are having a lot of action taking place and that is good, but we have to remember we are a fragile global environment. in europe,waiting where the environment is weak. japan is showing us negative numbers and even in the u.s., things are slowing. it does not take much. i hope i am wrong and i hope the
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turning point is only in geopolitics. betty: i agree it does seem like we're at a political turning point and it comes at a fragile time when people are wondering whether the fed and the gdp continue to alter their policies. them it is too early for to do so? >> i agree and that is the last point i wanted to make. janet yellen has made it clear that looking at the global ,nvironment was very important feeling that the u.s. economy is possibly ready to have the normalization in small steps, but that she wanted stability around the world. if other potential events bring financial markets into a much more volatile stage, it could have an impact on her decision. mark: does the chances than of a fed rate hike in december come of events in paris on friday? they were hovering just low 70%. do they deserve to come down or
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not? personally, think since we do not have any terror attacks, they are still on track. if we had more between now and december, chances are, it would come down. still cameecb, is it on? what variety, what sort of stimulus? >> it is hard to say because we have had the guidance that mario draghi gave us. probably other instruments. probably longer. probably not equity would be my debt. just on the last know that mark mentioned, i'm looking at fed futures and we are just sort of stuck here at the 65% range on whether the fed will hike rates. do, if we do see more terrorist attacks, could they plunge the u.s. economy or the
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global economy into a recession? >> whenever you are in tight growth, chances are, let's put it this way. chances are higher that we go back into a difficult environment if we have more attacks. know global growth is already slowing and chinese growth is theing and we know europe, last quarter numbers were not stronger than before. we know we have a slowdown pattern. possible. i think it is not the central case at this point, but it is possible. mark: thank you for joining us today. great to chat with you. the founder and managing director of global pfizer's. of the mostwas one interesting pieces of research i've read today, posing the question, what happens when a succession of isolated events creates a pattern. it is something we will have to
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address in the coming weeks or months. that is right. to price it into our outlook. is -- on theahead bloomberg markets. the latest on the ground in paris. that is ahead. ♪
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betty: welcome back live from london and new york here this is the european close. mark barton is joining me. isis time now for the disney -- the business clash -- business flash. starwood hotels and resorts for stock,illion in cash and
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the new company will have more than 5500 hotels. willing on and bowling sell more than $100 billion worth of smart bond and to saudi arabia. the state department approved a deal. persian gulf allies who support iran. the new star wars movie will have an impact far beyond the box office. it is estimated imports will arrive almost 11% this year, a lot of that due to light sabers and action figures and other toys on by the star wars franchise. winners, the u.s. retailers and toymakers in china and vietnam. you can always get more business news at let's go back to turkey, where president obama spoke at a news conference at the close of a g-20 summit overshadowed by friday's attacks that killed at
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least 129 people. president said all nations need to step up their efforts to combat the islamic state. president obama: ice -- i is a.l. is the face of evil. our goal as we said many times is to degrade and ultimately destroy this are barrick terrorist organization. joins us now with the latest from turkey and the g-20 summit. 's remarkshe president been received? leaders would20 have hoped the president would have said more, would have been more ready to take more action in syria. what the president said was there will be more airstrikes , therere already are will be more intelligence sharing, in particular with france. he highlighted that and spent a lot of time talking about it, but there will not be ground troops in syria. those were the main issues, isnting out as far as he
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concerned, putting troops in syria would be a big mistake. in addition to that heut the criticism is not willing to do more. the bottom line is he is doing what he thinks is best. that means not putting ground troops in syria. putin, the g-20 summit, had to leave early. he was under pressure because of ukraine. how things change. obama and he were in a huddle earlier. back in the full? -- is putin back in the fold? report -- ietter asked him and he said he did get the sense that some countries in the west wanted closer relations in russia and were prepared to deal with russia appeared he said that is understandable because some issues no matter
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how powerful you are or capable you are, you cannot decide on your own. he said he had sensed there was a readiness to work together, at least he put it on the expert level. perhaps not president obama or him personally, but there was a positive message from the russian president that he and rush are ready to work with the west. back to you. betty: thank you, ryan reporting for us in turkey. i want to go to france but first, mark. mark: the french president called on the french people to show perseverance and dignity. joining us now is our very own brendan greeley. you were out on the street yesterday far from the clan and france. how would you say paris is coping with the second terrorist attack in the space of 11 months?
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>> paris is quietly angry and i think the terrorist attack is profoundly different on the other in the way change people. asterday, i was talking to group of parents watching the kids play soccer. for said they whenever vote him as a national but they want wanted to see whether or not france -- france all on would give a speech. that is exactly what he gave, he talked about stritch -- stripping the passports of those condemned of terror attacks. changing the constitution. i think we have seen a change in french society and what i heard on the street yesterday was a lot of support for exactly the kinds of moves that he suggested. betty: we have a report the eiffel towel will be real it in blue, white, and red. of how a quick sense much normalcy has come back. is it the much back to normal in paris?
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brendan: it is. there is traffic all around me and that is true elsewhere in the city as well. a normal and healthy commute this morning and also on the way home. what we are looking at is events have been canceled or u2 and the foo fighters are not holding concerts here. events around the summit have been canceled but the stores are open. stores are back open again although they were quiet and hushed. inhink we will see commerce paris and i do not think people were that excited about gathering in large places together and they will not be for a long time. thanks to brendan greeley. coming up next, the european close, airline and transport stocks are taking a hit today in the wake of attacks in paris. they ramped up security around the region. what is next for the industry is next. ♪
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mark: you're watching bloomberg markets. the european close, hello to you in the wake of the paris attacks. an impact on the industry as security wraps up. bloomberg's u.k. and aviation and transport first london carry out joins us from london. thank you for joining us. the impact is being clear. can they withstand another terrorists attack question mark carey: -- attack? -- carrie: -- kari: paris is an important destination. it is one of many destinations for these airlines. the airline's most impacted are the likes of air france, easyjet, about 11% of their
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total capacity. is definitely something to keep in mind tomorrow when they report their results. what are that point, the airlines saying about beefing up security. are they doing anything special in the wake of the attacks? kari: they are very much taking their point from the government. board,seeing across the they're telling people they have to come in an hour earlier to the airport. i understand people are flowing through the airport more smoothly than before. the prime minister david cameron this morning actually announced a doubling of funding for airport security and interestingly enough, he is actually saying some of those people will be going to airports in the middle east, in the gulf, and actually looking at security in those airports outside the u.k.. to some extent, pushing borders beyond europe. evacuating 4000 passengers
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, 20% of capacity in france. it was only a month or two ago to what will be the impact on profits for companies like this? as i was saying before, moscow cut flights to moscow not because of the terrorist incident but because sales were not great in the economy was not great. they have really been pushing and developed themselves as a business carrier and going to like paris to ec after 9/11, everyone said, what will be the impact on the travel sector and there were -- there were four or five or six weeks where sales were down. it bounces back. people want to fly and do business in person, not over the phone or using facetime or whatever.
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mark: are we expecting more nervous incidents like we saw, evacuating to the north terminal for seven hours? yes, he did have an air gun. it makes sense that somebody like that be removed from the premises. you saw over the weekend and air france flight and it was evacuated because of a twitter alarm. he do wonder if those sorts of incidents are not going to be on the rise. those are caustic for airlines to do with. thank you so much, carry on the travel industry in europe. remind us how the european markets fared, pretty resilient after the latest terrorist attack. muted response to the worst terror attack in the region in over a decade. .1%.hed a mere
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at one stage, .2%. the stock 50, benchmark for the euro area actually closed higher. stocks, throw in luxury stocks, which were also hit the hardest. it was a remarkably resilient day. here is what i am looking at tomorrow and here is what is coming up tomorrow. the political fallout from , leadersterror attack including obama to the asia-pacific economic cooperation summit and also, a discount carrier easyjet releases earnings, speaking to the chief executive. do not miss that interview. ♪
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>> it is noon in new york. >> welcome to "bloomberg markets. " ♪
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scarlet: from bloomberg world headquarters, good morning. i am scarlet fu. i am alix steel. here's what we're watching of is watching at this hour. >> our goal is to destroy this barbarous organization. alix: putting grantors is not part of the strategy. scarlet: emerging markets the a selected -- is seeing a selloff. alix: marriott is becoming one of the world's largest chains, buying a selloff. scarlet: let's get a check of the markets with remy and it's a mixed br


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