Transcripts For BLOOMBERG Bloomberg Surveillance 20160322

Network is. Tom just in the last 90 minutes. To go back and look at the different panels, frustrations, the studies of terrorism experts in the recent months after paris to move forward. You really wonder how they will adapt, how europe will adjust to now london and paris and now brussels. Francine yeah, and there are questions about the authorities, if there was anything they could have done. Lets get straight to vonnie quinn for the latest on this terror attack. Vonnie thank you. Multiple explosions reported in brussels; a number of dead and wounded. Two explosions the departure hall at the airport. There are local reports that say at least 13 were killed. As of now, the official death toll is just one. The airport has been evacuated, the archers stopped, incoming flights diverted to other airports. Brussels has closed all their subway stations after a report of an explosion. The city has been on high alert since the weekend; it had been on the highest alert following the man believed to be a participant in last novembers attack in paris. His capture happened on friday. He is alive and awaiting extradition to france. Tom the latest headline coming across the first word aggregate. We will give them to you particularly the european new services, the Dutch Ministry will meet here later in the morning. Let me touch on the two words we use to show a minimum Market Reaction. Futures and negative seven, 7, 9. These not linked into acts of terror. Onto the next board. A big showing a relatively good equity market. Well move on francine, you have much more of the Market Reaction around the airline stocks. Francine yeah, we do. There has been increased volatility in european stocks. Airlines under pressure. Travel and leisure down to. 2 . Down 2. 2 . I also want to show you, if we can go to the bloomberg terminal, the pound. I underestimated the impact it would have on the pound, because we are seeing more and more economists and analysts saying theres a growing perception that the eu is failing on charity, and that may play into the campaign. Its putting a little bit of pressure on the pound. Tom it will be interesting to see, with the guests we have coming on, to get perspective here on what has been accomplished as london, and certainly since paris. Francine yeah. The problem is that when people fear, it may be an easy choice. Lets get straight to our Brussels Bureau chief, jones hayden. Jones, we tried to understand exactly what we are seeing. This is not the first time belgium was at the heart of such investigations of terror. Talk us through exactly what we know so far. Jones well, you are right. Ever since the paris attacks, that investigation quickly came back to brussels, and to the maalbeek area here. At one point in november, we were on lockdown because of the threat that something and that it was about to happen. Now it looks like we are going back on lockdown because something has happened. This certainly seems like a coordinated attack, and certainly appears to be in response to the apprehension on friday of the main suspect, the main living suspect in the paris attacks from last november. So people, i think, are really guarding for another intense period of soldiers on the streets, police on the streets, not knowing exactly what kind of terrorist threat is out there. Thats what we have in these two bombs going off this morning at the airport. In the departure lounge, not on the airline, at the airport itself. That was followed very quickly by an explosion on the subway. Francine jones, why are terrorists drawn to belgium . Way why do they seem to be drawn to belgium . Our authorities under pressure because it is difficult to see how big the network is . Jones yeah. Belgium, they are still try to figure this out. There is a large middle Eastern Community here in brussels and in belgium as well, but the fr ench are looking into it, the belgians are looking into it. Its a joint operation that helped to uncover the terrorists last week. We are still trying to figure that out. Those are the kinds of questions you really need to have answers to. Of coarse, the belgian government of course, the belgian government has been under continual criticisms is november in terms of its antiterror campaign. Why did it take four months to apprehend him . It seems like he was here, if not in maalbeek and at least in the greater brussels area. But they did give him on friday; they made a major breakthrough in the terror campaign, and this seems to be a big setback today with these multiple explosions. Moment,n i look at the i think what a lot of people want to know is the comfort that the people of brussels have had to paris. Has daytoday basis, how belgian life changed . Jones well, the main thing is that there is a much greater presence of military and police on the street. People just Walking Around in brussels, youre aware there is some kind of threat hanging over the. T over the city. There are soldiers that key installations here at the European Commission. There have been soldiers daily since virtually all of last year, because of the terrorist threat, ever since charlie hebdo, things have been raised and there is a threat hanging over the country. We feel like there was always something about to happen, but it hadnt happened. And then there was criticism that it was too much; maybe the lockdown in november went to o far, by now there will be even more questions raised. Tom the timeline this is something jones hayden knows london in 2005, ten years onto hebdo, then ten months later, november 15, the paris attacks. And now, four months later, new attacks in brussels. What would you expect to see from the belgian government and authorities in the coming 24 hours . Well, you want to know exactly who is responsible for these attacks today. That is the main thing. Is it really retaliation . It certainly looks that way how else would you interpret it . We want to know who was responsible. And if it is the same gang, the same network of people, which presumably it is, then we want to see them neutralized. That would be the main thing. I think it might be difficult to thehat, given what situation looks like at the airport. We havent been into the metro yet, so we dont know how it looks, but there was smoke pouring out of it earlier, and the police had cordoned it off. There is still a lot to sift through to figure out who was responsible. Francine thank you so much. Stay safe. Jones hayden, Brussels Bureau chief. The eus death has been told to remain indoors or stayathome after these blasts. We will have more when we come back, coming up. And of course, european stocks under pressure. A lot of airlines are losing 2 3 . Francine lets get the latest on brussels. Two explosions and airports the number of dead and wounded. At least 13. The official tally is still one. We know bonds went ouff in the Brussels Airport, and we know that the Prime Minister says they are treating it as a terror attack. The terror level in brussels has been raced to the highest; it is now at four. Meanwhile, transportation is shut down in all of brussels. All subway stations, trams, and buses are not running. There was an explosion at one of the subway station. It has been on high alert since the weekend. On friday, authorities captured the ace attacker, the only surviving participant in last paris,attacks in were 89 were killed. According to our experts here at bloomberg, it has been relatively rare that attacks happened at airports. Scotland in 2007. David cameron says he will hold an Emergency Response committee on brussels, in the cabinet is convening in the italian cabinet. American Airlines Says it will provide information when it can, and European Parliament is suspending eu staff. It happened quite close to the European Parliament building. Tom thank you. Lets look at the data. Minimal reaction in european stable. Stocks, 6, francine were seeing a little bit of money into safe havens like the yen this is a picture of european stocks. There you go. Down. 7 . For more on this and these Terror Threats, belgium raises its threat level to the highest. We saw smoke coming out of the brussels metro; lets get to the house director who joins us on the phone robert, great to speak to you. This is not the first time that Something Like this has happened, but this seems to be much more coordinated. It seems to be more substantial than other attacks we have seen in the past in belgium. Are you concerned that this network that operated today is bigger than we think, that it has spread across europe . Robert i think what is clear since the paris attacks, and even going back further, is that the center of many radical groups going back to al qaeda to 2001, partly because of its very disaggregated and somewhat dysfunctional system of government between different communities, with space in the heart of europe as well as transport links belgium is from which cells have organized. The fact that the authorities have been able to go in and take out the terrorists in maalbeek has created a context in which some of the cells are being unleashed to act, probably before too much information is taken out of the terrorist they rested on friday. Francine does this support the work of the eu . Robin [laughter] well, i think this place two ways. The british are concerned about the spread of terrorism. I also think that the british people are standing in their hour of need to the extent that this is a terrible attack after paris, the instinct would to bnot abandon people. Tom you have done a fabulous job he thinks the idea of perfect security is a fantasy. You have done very smart studies on International Law. How will alaw in, and for that matter in france, change . Robin i think what you saw after the attacks in london, what you saw was a much closer coordination between intelligence services, police, and different ranges of the police, and the tightening up of International Law in terms of the amount of time you could hold people. This is going to be belgiums bataclan. You will see some real steps to coordinate, national coordination, and more european levels. Andle realize the extent, you will get some nationalization in countries that have not been present. Tom it has to do with security but i am much more interested in individual rights. This is becoming an ugly habit. How will rights change across europe as the good authorities try to get a handle on preventing the next attack . Robin different parts of europe have different attitudes. In the u. K. , people are very relaxed about the kind of cctv coverage that was used routinely around london. In countries like germany, people tend to be much more suspicious. They will have a coming together with your balance. Other European Countries have not gone through the kind of attacks i think this will bring europe a little more into a u. S. Mentality. Francine robin, we are also hearing from David Cameron, the Prime Minister of the u. K. , tweeting that he is shocked and concerned by the events in brussels. Hes tweeting that he will cochair the events later this morning. You seem to suggest that you think europe will come together on this. Lan whenbatac you think this one is different . Anin well, there has been amount of confusion on the issue of counterterrorism on 5 bataclan. But these two things will start to be seen as much more linked, as we have discovered that a associatesther is those h there is a coming together of the risk, the flows of immigrants from syria, refugees, and ultimately you may end up ath a harder nose, tougher line in terms of drawing up orders and preventing people to come in. Thatspy days europe disappearing. Now the neighborhood is interfering in europe. Europe has always come together best when it is threatened from outside, and its not good at getting together when it is trying to do things without that external pressure. Thats the only basis of my somewhat optimistic outcome. Francine thank you so much. You will have plenty more on this brussels breaking news. What we know so far two explosions ripped through the Brussels Airport, a third rocking a downtown subway station. They are still counting the injured and dead. We will have more, next. Tom good morning, everyone. Bloomberg news in new york and in london. Francine lacqua in london, giving you continuing coverage on the explosions in brussels. Let me go quickly to the map. Its difficult to see, but you can helsee with various airports of london, paris. For those that are unfamiliar, brussels is an hour and 45 minutes. Vonnie they havent close down. Tom russell is here, and duesseldorf is here. Vonnie frankfurt and other airports they are very concerned. Tom theres a look at the planes. Look at what decades of experience greg, its unfortunate that we speak to you too often get these terror attacks. We move on after only four months in paris. How will law change now after the repetition here of death and wounded . Clearly, we are going to have many more restrictions on travel stop the days of free and open borders it has already been put to the test by terrorist attacks in the refugee crisis. I think we will see a continuation of that. When you take the train from paris to brussels, an hour and now for the past few months you have had to go through a security check, your bags through an xray machine. Back into france, there are Armed French Police who check peoples passports. I think we will see a lot more of that. As it is right now , you just walk into the airline terminal. In someity, but countries like turkey you have to go through security as you enter. The first time, as you enter the terminal. Maybe we start to see that. I dont see any other solution than just a lot more security on transport. Greg, how much we are still trying to find the detail. Belgiums threat level is at the highest, lockdown, people cant move in and out of the city, a lot of flights have been canceled. Give me a sense of i know this is speculation whether we think this is retaliation for the capturing of the mastermind of the paris attacks. Greg its kind of hard not to feel a link between what happened today and yesterday. Whether this is just whether he was arrested yesterday and was planning more attacks, and attacks, ore whether his crew presumes they will be arrested and rounded up, and are now ripping off their terror vests wherever they can find a moment, i dont know. Its kind of hard to imagine that there is no link between yesterday and today. Francine thank you so much. Tocontinue our coverage of explosions ripping through a Brussels Airport departure hall, a third rocking a downtown subway. Tom chaos in brussels. We will get to vonnie quinn in a moment. Joining us in a moment is Charles Lichfield. Right now, to vonnie quinn. Vonnie brussels rocked by a series of deadly explosions at the airport and in the subway system. The airport will be closed until 6 00 a. M. Tomorrow, according to brussels airlines. Two explosions at the departure hold today, local reports put the death toll at as many as 13. Many flights have been canceled or inverted. Or diverted. All European Council meetings have been closed this morning, and the Terror Threat has been raised to the highest level, level four. They recently captured do last surviving man believed to be responsible for the paris attacks. We know that there are several emergency cabinet meetings going on around europe, including in london, where David Cameron is holding a cobra meeting this morning, an Emergency Response committee meeting. Brussels isassy in urging all u. S. Citizens to shelter in place. No transportation, no trains, no buses. No trains are running to her from brussels. Tom i dont know if you saw this they shut the airport until 6 00 a. M. Tomorrow. Headlines coming fast and furious. Minimal reaction, but we did see a modest weight to the market futures, 8 to 10 year yield. Oil really doesnt move. On to the next screen. Showing the work we saw in a four day workweek. Francine, this is your board with a view of european stocks. Francine i wanted to show you travel and leisure. Air france is under pressure. Most travel and leisure is down about 2. 2 . Breaking from the belgian crisis center. This is the center that monitors crises. Its asking people to avoid calls and texts and social media, because they are saying that the communication links are being overloaded and they need to deal with the situation that is to be very fluid. For more on this brussels terror, we are joined by Charles Lichfield. Also with us is ubs is cohead of fx and rates energy. Thank you for joining us. Lets start with you when we first heard about a possible explosion futures didnt do much,. Yhen we saw a clear but sh sh riskoff. Our people dealing with this in stride . Are we mispricing terrorists . It is one of the hardest surprises. Typically, the shortterm tends to be quite visible, but the economics of things always point to the fact that economies and societies tend to survive these things. Markets dont estimate a persistent, longterm impact. But your term we do see price action like the ones we are seeing at the moment. Francine we are also getting breaking news from the italian Prime Minister, saying he will chair the coburn meeting at 3 00 p. M. , according to the National News agency. Are we going to see a more coordinated European Response to this . We dont know this feels like a network because there were various attacks in the subway. But we dont know the extent of this network and whether it also has branches in europe. Charles there is already a high degree of cooperation; i am sure they will do everything they can to communicate, to help them with what has happened. Is that we, i think, are witnessing a repetition of the attacks, because the stress is high. It will be difficult to communicate that there is more that they can do, that more cooperation is needed. Tom charles, with your study at cambridge, by a curious about how close we are to responses that we more associate with war. The limiting of rights, limiting of law, limiting of the movement. Are we any closer to that after four months on from paris . Charles i think after the events we have seen today, tom, you will see that kind of debate subside. People understand why governments are limiting peoples freedom for a short while. The degree varies depending on European Countries, and overall, people get quite impatient. In france, you have already seen demonstrations against the state of emergency. There is a backlash, and there is a feeling that europe is going down the track that is not what people feel. Tom with your discussion with ian bremmer, how is Eurasia Groups tone on terror changed since november of last year . Charles i think we have changed. As i was telling francine, the problem is that as we follow the political side of it, how politics responds, it is becoming difficult for politicians to find good talking points. All they can do is the same old mantra that they are working together. What we are seeing is a repetition and a problem for the politicians they cant find a new thing to say. Were already seeing this terrorist threat and the perception of the threat affecting other policy decisions. We have seen it on the migrant crisis, people saying we cant be generous because they could be terrorists. And for the Brexit Debate, the ndited kingdom a whether or not it should stay in the European Union. I think you will see David Cameron stressed that the terrorist threat is already read high and will remain high. What they can do is help to how we cooperate. Francine look at my pound chart. The pound suffered the biggest impact in the currency markets out of his brussels explosion, amid speculation that the tragedy may boost the case of campaigners who want to britain to leave the eu. This is a mishmash of everything. The problem with the referendum is that you see refugees scared. They see a Terror Threat in brussels and they say, well, the eu can deal with it, so we need to regain our sovereignty. Is this right . That you see the most impact on puound with the airport gets attacked . Thats a good question. I think the Biggest Issue we need to keep in mind is that the pound has symmetries with brexit. Out of all the assets, this is the one that has probably been the most effective. But should it happen . Particularly because there is this huge deficit in the u. K. , which makes it vulnerable. For us, with brexit was to happen, with a less than 50 probability, youd probably see yoursterling go to parity. Given the big distance we have in the exchange rate, even a small change in the perceived probability of brexit can cause a big market move. Francine does this play into the psyche of britons traveling the eu . Rationale says you are stronger together; you can fight terrorism if you are a block. Charles certainly, and that is definitely what the Prime Minister will try to argue. They say they will remain a target whether or not they are in the eu. The problem is that it is difficult to make an attractive case out of remaining in europe when you have seen several terrorist attacks on european soil, and the perception that european ideals, opening borders, working together, causes a backlash. As we have seen, i dont find it very surprising because of the deadline. Tom we are trying to do our coverage. Vonnie has the most distressing headline so far. This is a reality. Vonnie village and prosecutor confirming that it was a Suicide Attack. Two explosions killed maybe as many as 30 or more people. Tom charles, to that point, what have we learned about protecting ourselves from people willing to give their lives for whatever their cause maybe . Charles weve learned that there is no situation where you can face no threat. When isis is targeting europe, we can try to minimize the threat, we can try to arrest some people, we can try to put them under surveillance, but there is no situation in the foreseeable future where we will face no threat. We have discussed this before, and i think it is becoming a regular future. Tom four months on from paris this morning, brussels will continue. Francine lacqua in london; tom keene in new york. Greg is in paris, jim in brussels. We will try to get to him earlier this morning. Attacks this morning and many dead in brussels. Tom good morning. Special coverage as brussels sees at least two explosions at their airport and reports of dead in the metro. Multiple attacks vonnie quinn has aggregated all the news. Vonnie the belgian prosecutor is saying that it was a Suicide Attack that happened today brussels had been rocked by a series of explosions through the airports, and a third at a downtown metro station. All travel in and out of russells has closed out of brussels has closed. Euro store is not running, in trains and local metros are not running. Europe, andround there are cabinet meetings being held. Brussels isin urging people to stay in place; the u. S. Embassy has also urged citizens to shelter in place. We know that the death toll officially is just one, but local reports put the death toll at as many as 13, and there are also reports of death at the metro station, but we will keep you updated with the latest, official numbers as soon as we get them. A Suicide Attack at Brussels Airport. Francine shares of European Hotel Companies Falling after the report that we had throughout the morning. These two explosions ripping through brussels, and the third explosion that we saw and heard in the metro. This is the picture for european stocks. Travel and leisure are down 6 . I want to show you some of the individual movers. We contacted Heathrow Airport in london; they are stepping up security. We understand that all major european airports are doing at the same. Air france, klm down. A lot of these european stocks, hotel stocks and travel stocks are trying to a gear out how they can protect their passengers and travelers. Chris litchfield is from eurasia. Thank you for sticking around. When you look at what we found out today, this was in some ways expected but it is always surprising and always hurt when you talk about human loss. But this was expected because the belgian internal minister said we are concerned about retaliation, and we have always been told that europeans are on a hitless for terrorism. Are we going to see more types of suicide blasts . Chris i think it is unfortunately likely. We are showing some of the markets which havent even reacted that strongly, becoming something that we expect, and it will remain part of the territory. Francine until we find out exactly how big it is . Chris yes. We have some estimates of how big it is, but it is difficult to put everyone considered to be a terrorist under surveillance. It is impossible to have a full grasp of what is going on, this point everyone putting in their best efforts. Last week, they managed to arrest the mastermind of the paris attacks, and there is a good chance that there will be retaliation, or at least a symbolic message from the organizers. Theyre still targeting brussels. Tom charles, i believe yesterday, mr. Trump, campaigning for the republican nomination to be president of the United States of america, said nato was of limited value. I dont have the exact quote in front of me im sorry help the with the institutions that can coordinate the balance of law and security in europe. Is nato one of the actors . Charles i dont think nato as the main actor. I dont think nato has a very big role in prevention of terrorist attacks. Is aiously has mechanism through which countries cooperate, but not all European Countries, and not all eu members, are members of nato, and you wouldnt want to have a situation where nonnato members are left hind. Left behind. May see more pressure to intervene further a field, into syria for instance. For the moment, nato isnt the main mechanism. Tom brief us on the vulnerability of belgian. This is the most interesting cultural experiment and has been that way for years. There with some tumult. Is village the easiest target for these terrorists . Charles well, there are many people in belgium, belgian citizens, who are expected to have traveled to syria and been trained by isis. That makes it one of the biggest targets. They had the biggest proportion of people who have gone to syria and come back. Ownreally mention belgiums identity problems that started a to years ago, and failed put a government together because the frenchspeaking community couldnt agree on what direction the country should go in. I think it is arguably true that it set them back for a few years, and that there are some parts of brussels where communities have been integrated as much as they should be, and that has created Fertile Ground for terrorists. But they do not have a government that is active, that has managed to arrest some terrorist suspect. The main point is that the level of threat is extremely high. Francine and i guess the location. Belgian, geographically, is strategically good. Will the belgian authorities come under fire because of this . Are they at fault . Charles we dont know if they are at fault, and i think they are making a big effort to reach some sort of control of the situation, in maalbeek and in belgium. They did come under fire after people arettacks; not used to belgian being the blackhole of the center europe. Butink there is some truth, it can be exaggerated because people like the fact that belgium doesnt have the government it is a lawless, but it is a place where there are a lot of terrorists and recruits. Tom Charles Lichfield Eurasia Group. Hell continue with us. Explosions today not only at the airport at the metro as well. These are multiple attacks. Good morning. Tom good morning, everyone. Explosions in brussels. Headlines. Vonnie what we know is that the belgian Prosecutor Says it was a Suicide Attack; two explosions at the airport. Local reporting suggests that at least 13 have been killed. There was also an explosion downtown one of the metro stations close to the European Commission headquarters. There are reports of fatalities there, too. Brussels;in or out of the airports will remain closed until tomorrow. Eurostar is not running in planes are being diverted. The premier is telling people to stay indoors. Thats what wefar. Threat level four. Tom la monde has a great inture, and i saw a headline american airlines, saying all their staff in brussels is safe. As on he mentioned, explosions in the metro. Jones hayden has served over 30 years for dow jones and bloomberg in brussels. He is deeply experienced in the culture and pace of the city. Tells of the metro in brussels. How do you compare it to what you know in new york, london, or paris . Jones well, normally its fairly nice. Its not quite as big as new york or london or paris, and its usually pretty efficient and gets people where they want to go. We have had a couple incidents where it hasnt been the case. Back in november, they had to shut it down because of the terrorist threat. And today they shut it down because an actual terror attack, a pair of them, one that is fairly close to the center of the eu district here in brussels. We dont have a report of how many casualties yet, but they have cordoned off the area and are investigating quickly. Tom a metro is awful close to the citizens of the city, the airport is something you visit every once in a while, maybe a few times a year. The metro has daily use. Tell me how the metro serves the European Community center of brussels. Jones as in any big city, it is the main way people get into work, into their job. To get home or to go out in the evening. Of theery much a vein life in the city, and it is not just the metro itself, not just the underground system but the surface system. The trams and buses have also been discontinued, and they have shut down the three main heavy rail stations in brussels. It looks like you will have to take a taxi or walk in order to as long as this investigation is going on. Francine as i remember, a couple days after the paris attacks, brussels was in complete lockdown, especially in maalbeek where there were a lot of terrorist threats. Does it feel the same . Is brussels now completely shut down . Jones no, it doesnt feel the same, not yet anyway. The European Institutions havent completely shut down. The lockdown earlier was over a weekend, so we didnt have that aspect of it. But here, the European Commission said it is still open, but has advised people to stay inside. The parliament paused its hearings after the explosion at the maalbeek subway, which is fairly close to the parliament building. But now they have resumed ended his business kind of as normal. Its not a complete lockdown, like we had back in november, but we will have to see things develop. Because if there is more going on and the investigation leads to house searches and arrests, we may have even more disruptions. Tom jones hagan will stay with us through the hour, our bureau chief in brussels. We have many other guests to speak on the terror and tragedy of brussels. Francine lacqua is in london; im tom keene in new york; vonnie quinn aggregating all the headlines across bloomberg from the various interNational News services. A very minimal Market Reaction, may be a little bit of a lower yield and flight to quality. We continue our coverage of the tragedy in brussels. Tom from our World Headquarters in new york and london, our coverage from brussels, without bureau chief with our bureau chief as well. Thissions and many deaths morning. Francine lacqua, you have been to brussels many times. Tell us about the airport. It is not heathrow, is it . Francine it is not. It is smaller, tom. There are a lot of questions that need to be answered after the deadly attacks at the subway and the airport. How big is the network . We need to ask ourselves what exactly it means for belgian authorities. You can see these pictures as people are trying to count the dead and injured. Tom the 23rd largest airport in europe by one count, showing manchester, as they confront this new terror attack. We need a summary of the many headlines with vonnie quinn. Vonnie the belgian prosecutor is saying it is a Suicide Attacker two explosions at the departures lounge at Brussels Airport killed people. As many people as 13 and possibly even more people are dead. At aer explosion downtown metro station close to the European Commission headquarters. Elbeek station. Flights and Train Services have all been canceled. Brussels airport will remain closed until at least tomorrow morning at six clock a. M. Europe meetings around today. David cameron will hold a cobra Emergency Response meeting on brussels. The European Parliament suspended all operations today and has asked all staff to stay at home. Is u. S. Embassy in brussels urging citizens to shelter in place. And once again, no travel. Euro star is not running, and neither are flights or trains. As boy, has it ever changed you move from november into march of 2016. Our data checks we need to look at the markets, and the story here is tragically that there is Little Movement in markets. Futures negative seven. Right on to the next screen with euro stability. The german twoyear has migrated lower in the last number of days, maybe a little bit of flight, strong swisse versus euro. A little bit of a od. Koff mo if we individually look at, for example, some of the hotels but also some of the airlines air france, the biggest loser overall in today plus trading session. Lets get that board up for you. When you look at air france there you go down to 5. 2 . I want to show you the pound as well. This is the picture for pound versus dollar. 1. 4284, the pound suffering the biggest impact on this currency market with the brussels explosions. Heathrow out with a headline, limited flights from heathrow to brussels. Thought he mentioned earlier that brussels will not vonnie mentioned earlier that brussels will not open until 6 00 tomorrow. Charles lichfield working with ian bremmer and willis sparks. At the top of this hour, as people join us particularly in america, we need to summarize the new effect from moving from hebdo in january to the paris attacks in november, and only four months later this attack. This will forever change the dialogue, wont it . It certainly changed it for a very long time. This is happening again and again, no matter what politicians and leaders say. Extra cooperation and collaboration, some measures in syria that we take and some measures we have taken at home. There is the sense that there is not much they can be done and we have to get used to this kind of threat. Tom within this kind of threat is the idea of a suicide bomber, and this is complete speculation, the people who want to cause harm, wondering into the departure gate at brussels or into metro really without any security with full access. Would you suggest we will see dramatically new limitations to access at european airports . Charles i think it could happen. Someone you had on earlier said european airports you can enter without any security checks before you board the flight. You might see that changing in places where some spot checks are happening, but there is a balance that you have to strike between extra security and people zone daily lives of the relative comfort of use that the various services have. I think it will be difficult to strike that balance. People have an emotional reaction and that tends to be a backlash fairly soon. People do not want their lives encumbered, and that is letting the terrorists win. Francine no one has claimed no ones ability has claimed responsibility for these attacks yet. How much do we know about this network . Is it automatically i. S. . Is it big . Does it spread across europe . Charles i think the assumption is that it will be i. S. , and it is spread across europe. They have cells everywhere. Belgium is a particular safe haven i should not say safe haven but a place where they do have a base and a place where they have recruited a lot of individuals. There is a part of brussels where investigations have been acused, where they did find suspect on friday. There was a degree of triumphalism in the way that the government found him and arrested him. Tos may have been a response that, saying we are still here and you have not completely done away with us. How much do we know about these homegrown terrorists in belgium, in brussels . From thehe terrorists november attack came from a neighborhood in brussels. Charles the problem for the authorities is that a lot of these terrorists are citizens of the countries where they operate, so it is much more difficult to Pay Attention when they are entering because they are entering as any other citizen would, and they have their own networks, people who will help them, places where they can stay. These people know they are operating here, so essentially are of has become one, and it is more difficult for the government to track them. Tom tony dwyer is with us as well. These are such difficult times to speak of your core ability, which is to be optimistic on the markets. But i wanted at the filter i want to have you filter when you see these tragedies, it just dampens the tone. That is an irrefutable statement, isnt it . Tony it is surprising and unfortunate that there is not a bigger Market Reaction because unfortunately i willand citizens never become numb to this kind of thing, but the markets have less of a reaction each time, unless there is some kind of cataclysmic economic event. Move to othertal geographies when you see this . Belgium has had a fragile government, to say the least. And of course we had paris in november. It has got to be a driver for corporations. We saw that, completely removed completelye, removed from this, General Electric moving to boston. There are micro divisions that we do not see. Tony a good friend of mine who works for Emergency Management in new york city reminds me that this stuff does no one asap and that this stuff always happens. The thing that i think will have an impact is to reinforce the political environment that surrounds brexit and also surrounding Donald Trumps antiimmigration message. That is really where you are going to it is going to be political rhetoric that will heat up in a dramatic way. Come winter at nbc mentioning the new York Police Department will put on ettrick resources today after the attacks in brussels. Coverage on more International Relations and the politics of europe. Francine lacqua in london. Tom keene in new york. Coming up, we speak without Brussels Bureau chief, with our muscles bureau chief, jones hayden. Stay with us. Tom good morning. Inticularly for those of you america, is delta 42 has diverted from Brussels Airport. This is the last flight in, flight 80, which has landed in brussels and has removed from the airport terminal, sitting on the tarmac away from the terminal this morning. Much is going on in brussels after two sets of explosions at the airport and at the metro as well. Frenzy lapine is in london. Francine lacqua is in london. Francine brussels was rocked by two explosions this morning. The third explosion, we understand, was at a downtown subway station. Lets get to jones hayden in brussels. This feels like an operation that is ongoing. How much do we know about the casualties and the dead . Jones at this point it seems like 10 people were killed in the two explosions at the airport this morning. We do not have the exact number on those injured there. Eek, there are reports that 10 people or killed at the metro station, which is near the e. U. Headquarters in brussels. Francine friday is the day that in belgium because it is the day salaam was arrested. Are they linked . Any firm do not have evidence, but the prosecutors in brussels say that is their main thing that they are investigating now, is what the connection is between the two attacks and if there is any some, and theh withrk any connection sol the slum. They have shut down the metro and the main train stations here, so we are headed back toward the lockdown situation here in brussels. Want to do a quick correction. I mentioned delta 42. That is what the headline said. That is wrong. That is a puerto rico flight. Leftis delta 43, which brussels and was diverted to jfk over from amsterdam. Jones hayden, i look at what this will do and forever change brussels. What have you learned, as our bureau chief, since november of last year and the paris bombings . Jones i have learned that we are going to have to live with presence on the streets. That is not going to go away. When they first started posting soldiers around brussels, it looks kind of funny having all this military might on the streets. But now we have gotten used to it, and obviously it is something that is here to stay. Jones hayden, thank you so much. Coming up, we will be live with belgiums ambassador to the u. K. As two explosions ripped through Brussels Airport, and a third rocking a brussels subway. Tom good morning, everybody. It is a different bloomberg morning with this a set of bombings in brussels. Here is vonnie quinn. Brussels is on lockdown. The Prosecutor Says it was a Suicide Attack at russells airport. Around 8 00 at Brussels Airport. Around 8 00 two exposes went off in the departures lounge area there was another explosion downtown at roughly the same time in a metro station close to the European Institutions. The e. U. President has put out a statement saying he is appalled by the bombings and that the opean Union Institutions he says the European Union will return to solidarity and fulfill its role to help brussels. We have cabinets across Europe Holding emergency meetings and Emergency Response Committee Meetings. David cameron is among those holding those kinds of meetings. All sorts of transportation diversions, and basically lockdown in brussels where the terror attack is putting the threat rating at 4, a serious and imminent attack, the level there for brussels. Ofically no travel in or out brussels. The airport will not open until at least tomorrow morning. Brussels seems to be in lockdown this morning. Its go to the belgian ambassador to the u. K. , who is on the phone now. Ambassador, thank you for joining us. Why are terrorists drawn to belgium so much . If we knew the answer to that, the problem would be in part solved. You have a conflict in the middle east, lets not forget, that is the main issue. You have a conflict in the middle east which has been able to draw upon youth in belgium and elsewhere. And the reasons are many fold. You would need a sociology out why everyone of these young persons, men and women going there, have their Different Reasons to do so. But we have a fact and we have out of belgium a large group of young people going to fight in syria. Some come back, and this is the result. Francine you live here in london. The pound is suffering the biggest impact on the currency market. Are you concerned that these terror attacks will play into the Brexit Debate . Obviously, not, because as an ambassador of belgium, and like my authorities, we are in favor of keeping the United Kingdom in the European Union. But it could be. Lets be honest, it could be that the issue of terrorism, which is often and unfortunately links to the issue of migration, might play a role. Tom your father was in the diplomatic service. You have done everything but be general consul in los angeles during the northbridge earthquake, and the tours of duty in india and beijing and now the United Kingdom. You have been quoted as saying that the people of belgium need to find out how to live in a modern world. What do you mean by that as we see these terrorist attacks this morning . First of all, you have great intelligence on where i have been. When i say modern world, i mean belgium is a country that is thriving, thanks to its openness, both politically you have the headquarters of the European Union and nato and others and businesswise. 17 of our income of what we are comes from International Relations, so we cannot afford to close ourselves down. But it is a challenge, as we see today. But even though we are facing these difficulties, i do not think we are going to change our attitude. Mean modern, i mean, pollock and, global, open to the cosmopolitan, global, open to the rest of the world. Tom do the authorities in belgium at every level egovernment do they have the will to make changes to eliminate the next attack . The will is definitely there. We have been busy with this for the last two or three years. Certainly with the syrian issue and the syrian fighters have been haunting us for more than that. So there is the will. Then you have the means and the international cooperation, and then you have for us, we can succeed 10 times in stopping a bombing and nobody is going to mention it. But if the other guys make it once happened, then it is a huge victory for them. There is the will, but it is a fight for the long haul. There is no miracle solution. Francine ambassador, thank you so much. That was guy trouveroy. When you think of the ambassador there, talking about the problems that belgium has, will anything good come out of this . We know that the level of Terror Threat has been raised but that agencies come together. Thates you have to hope the degree of cooperation erratic its eradicates this terrorist threat or diminishes it. Unfortunately, i think the ambassador was right. It will take a long time. , and iconomic openness think they will want to keep that. So therefore it just makes it even harder to balance its openness with the security threat. Francine i know terrorists are havegiving, but when we brussels in lockdown following wasattacks in november, it clear that the brussels authorities did not have a clear handle because they were not coordinated, and it was dictated by neighborhoods. Do we have any sign that that has changed . Charles not yet, to be honest. Security services are trying to i do not think they have had time to rethink their organizational structures, unfortunately. You saw brussels in lockdown after the terrorist attacks in paris, and it demonstrates that they have a hamfisted approach where they close down the city and they have not managed to eradicate the Terror Threat at all. They will try to find groups responsible without closing down the city. Tom Charles Lichfield, thank you so much. Hughes with he is with Eurasia Group this morning. We will have much more. Vonnie quinn is aggregating across bloomberg all of the different news services. For those of you with the bloomberg professional service, go fore go is a place to the aggregation of all the news. Brussels facing multiple explosions, the airport and the metro. We will have continuing coverage from london and from new york. This is bloomberg surveillance. Tom the news continues from brussels. Vonnie quinn has the latest. Another attack . After three confirmed explosions today, there has been another explosion. It was a Suicide Attack at the airport today, with two at the airport. Least 13 according to local reports. We also had a report at a metro station downtown, close to some European Institution headquarters. And reports locally or fatalities there as well. All travel in and out of rustles has been canceled. Has been brussels canceled. 225 soldiers have been sent to brussels to boost security. Is coming from the french Prime Minister and the French Interior minister who says 1600 additional soldiers will be sent to beef up security around paris. We also have the french Prime Minister speaking and saying that we are basically at war. That is a direct quote, we are at war. Tom a cacophony of headlines are coming out. New explosion, the controlled explosion of a suspect package. Let me get that up here. Belgium. Nment area of lets go into our data check. Francine, i want you to comment on this quickly. A little bit of a way to the market over the last 20 minutes. The euro has come in a little bit more. Onto to the next board, quickly. We will get to francine with her perspective on belgium. A stronger swiss franc this morning. Francine . Stronger we saw a swiss franc and a stronger yen. People are talking about extra security measures. The biggest loser here on the stoxx 600, down 4. 6 . Going back to the breaking news we understand that there may now be a fourth explosion, this be a controlled explosion of a suspect package. We understand that this fourth explosion was very close to the commission. Palace parke royal has been evacuated. In new york and london, you do not realize how small brussels is. A Risk Consulting joins us on the phone from london. Thank you for joining us. As we see this unfold, it seems that there is more and more uncertainty with reports of a fourth possible explosion, which may be a controlled explosion of a suspect package. Are the belgian and brussels authorities doing this correctly . Should we have a complete lockdown of brussels . i think it is externally difficult for the authorities right now to understand what is going on because to the same extent that we are trying to understand the situation, we face the same difficulties. What you have seen is that they have shut down the public transport system and upped the security level, and now at additional soldiers are deployed to brussels. In such an evolving situation, it is very difficult for the authorities to find the right balance between giving the sense to the population that they still have some sort of control and are trying to regain it francine we also spoke to the local London Police, and they are saying London Police are increasing their presence at key locations following the attacks in brussels. How much do we know about this network . It seems that brussels is flaring up. Do you have a sense that this is a coordinated network that spreads across other european cities and countries . Florian it is impossible to say that this is a network that spreads across countries because we really do not know yet who has committed the attack. Given the current circumstances, i think there are theories that this looks like the Islamic State because looking at what has happened that belgium over the past 18 months, from the attack on the Jewish Museum to the failed attempt on the strong informant the strong involvement in the paris attacks, there is now obviously the great fear that this is a related cell, and from what Security Services found out in the aftermath of the terrorist attacks, there are obviously very grave concerns that the that the ambition of the Islamic State extends way beyond striking Continental Europe but it could also be planning a strike on the u. K. Esteemedstudied at the War Studies Program at kings college. How do Suicide Attacks fit into war . Suicide attacks there used to be a few a year, one per month, one per week. Frankly, it is almost daily now. Tell us about Suicide Attacks. Florian i think the perception that this has changed to a great extent is a very european centric thing. Suicide attacks have been happening on a day to day basis across the middle east and also some areas of pakistan for a number of years. What is changing is that we are seeing this more and more come to europe, and i think we are still at pains to understand what is behind it. This one particular cell that has developed in europe that is now carrying out these attacks, were dealing with multiple cells. Is it link to one organization like its atomic state, or and this is still being considered is there potentially a push from other islamist militant groups, especially al qaeda, to say we are still relevant . The Islamic State are not the only ones that have these capabilities. Unfortunately, and this is really difficult, we need to know more until we can be certain of what is behind this. Tom is it a mystery about these people that will kill themselves to kill others, or do you as an expert have a Knowledge Base about where they are from, the motivation to give their life, etc. . When we are looking at the paris attacks, we know where these people are from. And of them were belgian french nationals, and they were clearly motivated by the desire to die for the cause they believe in. And it is, i think, worth mentioning that the suicide bombings have not been pioneered by islamic militants. It is something that came up first in sri lanka and then was militants in the 1980s. I think that the rationale behind it is really from the perspective of the perpetrator, ultimately the willingness to die for the cause they believe in, and for those who sent them it is a very rational act to a target to deliver bomb to the location where they want to strike. Tom florian, thank you so much. Tony dwyer has been more than patient this morning. We are going to ask him one more question and let him get his day started. Tony, once again, i am going to say it is a dampening of nominal gdp. Correlated into the equity markets . Is it one for one or does it go the other way because corporations cut expenses . Tony i do not think there is a large reaction in either direction because it is not something that is so unique that it changes macroeconomic trends. So i do not think there is going to be too much of a change with what the ecb has done toward quantitative easing, buying theorate debt will impact event that this has had. Tom what do you have now on the chancellor, francine . Francine we have a lot of european politicians speaking out. Outre trying to figure exactly the end game of all of this, the geopolitical repercussions, because if we see one Market Reaction, the pound is suffering the biggest impact, probably in the currency market because of the terror in brussels. Tom for those of you in the bloomberg terminal worldwide, top live go is the aggregation of all our knowledge on these attacks this morning. Withll continue coverage francine likewise and london. I am tom keene in new york. Jones hayden is in brussels this morning. Coming up, with the European Parliament, Richard Ashworth will join us. Stay with us. Tom good morning, everyone. If you are just joining us, multiple explosions in brussels this morning. Confusion, dead, and wounded. With a summary, here is vonnie quinn. Vonnie the Prime Minister is briefing reporters right now, so we should have more substantial figures as to the death toll in a few minutes. Local reporting is that 13 are dead after explosions at. Russels maine airport the exposures caused by a Suicide Attack, according to the prosecutor to the belgian king. There is also an explosion at a subway station downtown. Station, andmetro there are reports of fatalities there as well. There are more security measures being deployed in brussels and across europe. Soldiers will be deployed to brussels. In paris, the Prime Minister said, we are at war, a direct quote. Paris asut around well. We have Emergency Response Committee Meetings going on across europe. David cameron is holding one. And the European Parliamentary meetings may be suspended, no travel in or out of rustles right now. In or out of brussels right now. To richardtraight ashworth, a member of the European Parliament, also a member of the conservatives. The u. K. Great to have you on the line. You are in brussels, inside the parliament. The European Parliament was meeting, and then i guess the news came out of these terror attacks and you are now on lockdown. Is that right . Richard the metro station bombing was just around the corner from the parliament buildings, so this is the closest that these terrorism events have ever come to the European Institutions. Attack, whichan is designed to take the fight straight to the heart of the European Institutions. And all the more dangerous if you are looking at the referendum in the u. K. How much will this affect whether the u. K. Stays or leaves the e. U. . Richard it will be poor judgment to try to attach it to that debate. What we do know quite clearly is that this form of terrorism does not discriminate from one nation to the next. We do begin to realize and i know David Cameron has mentioned today, Francois Hollande has mentioned today look, we are all in this together. A part of this referendum debate, realize apart from this referendum debate, realize that european tomography and freedom is under attack from these people. We need to stand together, shoulder to shoulder, in the same way we made a public demonstration after the paris bomb attacks. European leaders will be anxious to show solidarity on this, and i really think it will be poor judgment to say it will defeat this inout referendum debate. Tom you have been a member of conservative budget processes for the United Kingdom and also europe. Will you give us perspective on the resources you perceive being placed against terror, laced against suicide bombers . Is europe placed against your place ofers is a misspent money . How would you perceive that . Ever, it is easy to be wise after the event and say we have not spent enough on security. The funding is there now. We have in this year pasta budget we have in this year budget had funding. It takes time to get those systems and structures in place. It takes time to plug into the kind of networks we need, and it takes time for those networks to talk to each other. You could argue it is a little late in the day. The European Security forces are beginning to Work Together. It has taken a huge shock to make them do it. Can i give you an example . After the bombings in britain, we were equally exposed to the dangers. We were completely naive about the dangers we were living in. The unitedtime, kingdom has upped its game considerably in terms of intelligence. You could never be complacent about this. But nevertheless we can take some comfort. Success,ad a degree of but it is only success until the next time. So i think the message is, absolutely loud and clear, the European Union countries need to Work Together on this, share intelligence and cooperate with each other. Because we are all in this together. Minister, you speak for a rural United Kingdom. Elites not one of the from london, you are from east sussex, a dairy farmer. Discuss howo someone gets in a car and sends their kid to heathrow or for that matter, to jfk. How do we get our airports safer . A good question, and everybody is asking that one. I can only give the evidence that we have achieved so far and i repeat, so far, in the United Kingdom. While we are under a high level of threat of attack, we have been controlling this threat. On the one hand you have the visible, highlevel defense that is Police Enforcers Police Officers in the airport, please police in brussels. There has been a high level of security that has been very visible. But i suspect your first line of defense is never going to be that. The first line of defense has to be the Intelligence Community gathering intelligence, whether it is through the internet, telephones, whatever the case may be. Finding out where remember,s are, and most of these problems have sprung from this terrorist cell, which is in a suburb of rustles called molenbeek. The other thing that we can obviously is that these terror outrages today are, in my opinion, a response to the number of arrests we have had earlier this week on the paris bombing suspects who were tracked down to brussels. If that is the case, we have to learn that there is a Bigger Community or a bigger cell here operating in brussels. We even realize than we even realize before. Not even bigger, but it is better resourced and cable and capable than we realize. Tom please be safe in brussels. Richard ashworth. We have an update from vonnie quinn. Vonnie some official briefings, tom through the belgian prosecutor officially to the belgian king is briefing reporters right now. He says they cannot give an official death toll from the explosions yet, but they did say that one explosion was probably a suicide bomber. He is saying there were two explosions at the Brussels Airport departure areas, and another at the Maelbeek Metro station downtown. A military presence has been reinforced in brussels and the Terror Threat has been raised to the highest level of four. Getting headlines from the prosecutor, the most official word from the prosecutor is that we cannot get a death toll from the explosions yet, and that the allstigators are checking cctv footage. One explosion at the airport was probably a suicide bomber. Tom vonnie quinn, thank you. We will have much more from our brussels news bureau, from london and new york. Francine coverage on bloomberg surveillance has been focused on this series of explosions that has rocked brussels. Theie wrapping up now is the attack this morning, at least one of the suet at least one suicide bomber was involved. It is too early to give a death toll, but investigators are checking all cctv footage. At a different location, the Prime Minister gave a briefing to reporters. The Terror Threat has been raised to 4. The most important headline, the sponsor ability for the attacks has not let that has not yet been claimed. International reaction from Prime Minister abe in japan. Mysteries in the aggregation of this news has been the carnage at the metro. Dead and 55 15 injured in the brussels metro. Our latest headline as we go into the next hour of coverage. Francine, this has been extraordinary. You have been to brussels for thousand 12 times. I do not mean to make light of it. Is not the first time we saw brussels in lockdown. There are two main questions that have not been answered, and it may take months or years. Why are there so many fighters terroriststs and here, and do they have connections outside brussels . We willne earlier continue this coverage this morning. Do not forget, for those of you with the bloomberg terminal, this is a good aggregation of what you can see and we will continue coverage across all of Bloomberg Television and bloomberg radio. Oh, hi micky dolenz of the monkees here, getting ready to host the flower power cruise. announcer were taking the love generation to the high seas and reliving the 60s. Well celebrate that unbelievable era with the music that made it so special. Therell be over 40 Live Performances featuring eric burdon the animals, micky dolenz, the monkees lead singer and cruise host, the 5th dimension, the lovin spoonful, rare earth, spencer davis, three dog night, and many more imagine enjoying all that great music on the fabulous celebrity summit, leaving Fort Lauderdale and making ports of call in jamaica and the bahamas. Youll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 funfilled celebrity interactive events. Cabins are filling up fast, so come on, relive the era you remember so well. The flower power cruise, february 27th, 2017. Let your freak flag fly. Dont miss the grooviest trip at sea. David welcome to bloomberg. We have seen a series of terror attacks in brussels, belgium. Down whereto break we stand, there have been multiple attacks in brussels. Wo explosions according to the news, there are currently 28 dead. Many more are injured. Authorities have confirmed the airport attack was a suicide bomber. Jon lets get you up to speed on the Market Reaction this morning. Futures in the u. S. Of little softer. S p 500 index down by eight points. The ftse 100 down by around. 5 . The stoxx 600 travel and leisure index down by 2 . Air france, the airline, one of the biggest