the second attack at a metro station in abdeslam -- in brexit -- in maelbeek. aftertacks occurred belgian police apprehended one of the only surviving members of the france attacks last year. we will be covering the president's speech in just a few moments. let's get the latest on the aftermath in brussels. jones, tell us what the latest is right now that we know about these attacks. jones: we just heard from the mayor in a press conference here a few minutes ago. now in the subway attack which occurred after the two bombs went off at the airport, the subway attacks, there are at least 20 people dead now and bringing 100 injured. .he total to 31 mark: do we have any idea of who carried out the attacks? that's the big thing that the investigators are focusing they are sifting through the debris to see if there are any other a next loaded devices they need to deal with and they are trying to get clues as to who planted these moms at the airport and the subway. they seem to be connected and in ofribution for the capture salah abdeslam on friday. the terror alert has gone back up to the highest level. more police and military are being deployed on the streets. we are back to the lockdown situation we had in november. betty: jones, go through the significance of the site of these attacks. obviously at the airport, it disrupts travel. certainly that's a big transport hub. what about the subway station? there are a couple of things going on here from their point of view. security has been beefed up massively at the airport. in brussels they don't have the security until after you check in. these bombs were placed at the check-in area, at the departures lounge. it was before the security. the subway is notoriously difficult to keep secure. this is why they locked it down. they shut it down completely back in november. it is difficult to have in a police. this is the same plan as the terror attacks -- paris attacks. bombed areas being simultaneously. same kind of job from paris here in brussels. betty: how long will the city be in lockdown? what exactly is closed? when other going to open? the airport says they will reopen tomorrow. we don't have a timing on that yet. the european institutions that stopear the maelbeek metro have asked the people not to come in today. in, they arelready telling you stay in the building. open more or less as normal tomorrow. it will depend on what happens for the rest of the night. what's going on in this area that has been cordoned off around the building. jones, thank you for joining us there in brussels. you can follow all the development in brussels on the go for allusing tliv the latest updates. we have three industry groups rising on the stock 600 today, which itself is down by 7/10 of 1%. the industry group is at travel and leisure. i want to put that into perspective in a second. before i do, it's worth noting that stocks have proved resilient to terrorist attacks in the past. initial selloffs were raised either days or weeks later in the following of the incidents. 9/11, madrid, london in 2005. in 2015.bdo coming back to one of the worst performing industry groups, this is when we saw the killings on january 7. this index rose that day. it rose 20% for the following six months. parisare the following attacks when shares did decline in this industry group i roughly 1% in the days afterwards. still after one month later, shares were at a record high for the industry groups. telling us that initial selloffs don't particularly last. this is their steel index. volatility over the last nine months, it rose 11% earlier in the day. we are nowhere near the highs that we saw in february, which of course were the highs that we saw since august of last year just after china devalued its currency. the big currency impact has been for the pound. many are saying that this could boost the case of campaigners who are reportedly campaigning for britain to leave the eu. we are seeing sterling fall, all of these currencies are rising against the pound today. many saying that this is giving ammunition to the brexit campaigners. stirling is the big move today, not the euro. clearly a lot of implications. by the way, here in the u.s. our markets are coming back just a little bit. we have one sector in the green, utilities. a closer look at u.s. trading in reaction to the bombings in brussels, julie hyman has the latest. julie: as marc was talking about, the performance in the speaks to stock resilience in europe and in the united states, where stocks are down now by one quarter of 1% and the nasdaq is little changed. function of the geographic area in which the attack has happened today, but also the idea that these attacks are becoming more common in the west. as we see stocks selloff, we are so-calledns in the safety areas. gold is going higher in today's session. we are seeing treasuries go higher in the session. you heard mark talk about the currencies, where the yen has been gaining strength. another area where people flock as they perceive areas as more safe. seeing declines in travel stocks, airline shares selling off today. delta, american airlines, united continental going lower. we are seeing it spread to other types of travel and leisure stocks. .oyal caribbean, marriott trip advisor. one exception, wynn resorts is trading higher after it got an upgrade from morgan stanley. it's interesting that even within travel and leisure, there is a resilient stock. you so much. thank let's check -- check in on the bloomberg first world news outside of the events in brussels. i want to bring in vonnie quinn. vonnie: in a few moments president obama will be delivering up televised speech to the cuban people. he met with raul castro and spoke with reporters afterwards. mr. obama made it clear that they did not reach common ground on key issues. president obama: the relationship between our governments will not be transformed overnight. we continue to have some serious differences, including on democracy and human rights. castro denied that they hold any dissident leaders or prisoners. -- is urging the republicans to accept him as the nominee, suggesting that a delegates should be enough. he said that an open convention would be unfair. the race for the white house moves west today to arizona and utah, featuring contests for both parties. idaho democrats are also holding presidential caucuses. today's showdown between the fbi and apple has been called off. they may be able to unlock the terrorist iphone without the help of apple. they wanted help for accessing data on the phone. to forceosed efforts them to undercut security features. 24 hours per day, powered by 2400 journalists around the world. taking a hit today after today's attacks in brussels. history does show that stocks usually recover within a few days after an attack. the travel and leisure index shows that shares of both companies have been resilient. a closer look at the markets, let's bring in the chief market strategist at jefferies. david, do you expect history to heat -- repeat itself? as i showed, stocks have proved remarkably resilient to terrorist attacks over the last 10 to 15 years. david: i think you are exactly right. first of all, it difficult to talk about markets after such an awful event, but in the end we all have to focus on our portfolios. the general reaction to these events has been initial risk off followed by a relatively large movement the other way as people begin to understand that there is probably relatively little negative economic impact from the story and in fact sometimes these events can galvanize some thate economic situations are more politically problematic is it sad to say that are almost becoming immune, sadly, because of the regularity of these incidents? i think -- david: i think that's true. i think a lot of the elections coming up in the u.s. and europe are going to focus on that, but in the meantime it's less and less of an issue for the markets each time this happens. less and less of an issue, but perhaps of the markets priced in this kind of risk anyway? given that we have seen a frequency to these attacks, however random they are? david: i think that that's consistent will -- with what mark is saying. it doesn't change the outlook on central banks or the economic data. if anything one could argue that it does create some political galvin's asian they could be positive in terms of bringing people together to try to fight off a unified enemy. when you have different political factions in each of these countries, here in the u.s. or europe fighting for headlines and for their positions, if we all have a common enemy it somehow maybe stems the negativity or the competition that goes into that, because everybody is really on the same side with this one. betty: seeing as how the markets have been consistent with what we're watching in europe -- they went down but are coming up a little bit. that after this long winning streak, feels like a long winning streak since october, right? there is tell you that definitely some fundamental reason for this rally and that stocks have further to go? we certainly believe that. we have been writing a lot about the idea of a bit of a truce in the currency war that came from the g20. that has been a big topic here. we believe that the actions to stop the dollar from rising, the dovish delivery, as well as what mario draghi did to focus on credit thing as opposed to traditional interest rate easing place to that idea. we mostly what happens with the japanese on april 27, but i think they will follow suit. i'm pretty positive on that view and i think that's a positive backdrop for risk. stay with us. we will continue our coverage on the attacks in brussels. we are waiting for president obama and his remarks, live from havana, cuba. you can see that that is the .oom right now president raul castro attending of course, welcoming the president to this great theater in havana. ♪ mark: we are waiting for remarks from president obama, who of course is continuing his trip in cuba. obama topecting address today's events in brussels. today's attacks in brussels, which have caused the deaths of it seems at least 30 people. at -- inl be speaking havana, cuba, momentarily, and as soon as he does, we will bring you that. asty: we will bring you that soon as he addresses his remarks to the people of cuba. the markets, fed officials, keeping traders on their toes a bit after john williams and dennis lockhart both said that these numbers may justify additional policy tightening. april, looking to perhaps, and i am being told right now that the president is walking out to the podium. there he is in front of the podium. he came at the great theater in havana, cuba. president raul castro also there. let's listen. president obama: thank you so much for the warm welcome that i my familyved, that has received, that the delegation has received. , please indulge me, i want to comment on the terrorist attack that has taken place in brussels. the thoughts and prayers of the american people are with the .eople of belgium we stand in solidarity with them in condemning these outrageous attacks against innocent people. do whatever is necessary to support our friend and ally, belgium, in bringing to justice those responsible. this is yet another reminder that the world must unite. we must be together regardless of nationality, race, or faith in fighting against the scourge of terrorism. we can and we will defeat those threats to the safety and security of people around the world. to the government and people of , i want to thank you for the kindness you have shown to me and michelle. melia, sasha, my mother-in-law, marian. [speaking spanish] applause]and poem, hose aamous se marquis made this offering of peace to his friend and his enemy. people offer the cuban salute. that was president obama offering condolences to the victims in brussels, speaking at the great theater in havana. earlier today donald trump gave his thoughts on the attack in an interview on "the today show." trump: this subject is near and dear to my heart. about it moreing than anyone else and probably it's why i'm number one in the polls, the fact that i say we have to have strong borders and be very vigilant and careful who we allow into our country. i know brussels well. brussels is a total mess. i not talking about the attack today. talking but generally speaking. it used to be the finest, one of the most dutiful in the world, now it's a catastrophic and dangerous city where the police have very little control. are going to dig more into those comments, particularly the u.s. reaction. stay with us. ♪ time for the big -- bloomberg business flash. a look at the biggest stories in the news right now. u.s.,deral agency in the the finance agency said that numbers were up 5%. year-to-year prices were up 6%. that belgium says will probably miss the deadline for delivering the first of its new generation of aerial tankers. officials don't expect the initial tankers to be delivered until march of 2018, 7 months late. knowing disagrees, saying that they should deliver the planes on time. the sparkle role group is in with undisclosed amounts of luxury consumer electronics. they sell rolls-royce and bentley cars. trading at half the market value of others. have a look at what's happening to european equity markets. not as low as it was when the session opened. that was just after we heard about the first of these explosions in brussels. the first of three. two in the airport. one in the underground and in the metro. been retracing much of those losses. it will be no prize to you to learn that travel and leisure stocks have been the most heavily affected. forget that stocks are often resilient in the face of terrorist attacks. 9/11, bali,after madrid. this is what's happening in the currency markets. we have seen some interesting movement today in the pound. falling against all 60 of its major peers. speculation that today's attacks in brussels could boost the case of campaigners that one britain to quit the eu. bank of america merrill lynch says that any of that could be arguments against migrants and - ugees, including a brexit risk. i am: keeping our brussels, also watching the latest in the battle on encryption between apple and the fbi. ♪ hohey s w'oiit ghong, estcak ?estcak .th hyso wn' aret't ey llseca hotkes? hkeca cwithstomcain business rntefidd e.ju ddst aus a czetomimed ytowioua llseca hotkes? hkeca u'd yo 'll yeachstr somer eie esr a adylr - diresevic ddst aus a czetomimed ytowioua llseca hotkes? hkeca .or upder 'it'ha tstn jui, wif c odintrg ucin pwifiwiro, fi hthatpsyow usur bs.ines u 'doe t eth dvery.nebusiss. ascomcbu.ss t builbufor sssine betty: president obama speaking today, at the top of his remarks he expr attacks in brussels, saying brut he stands by the people in belgium and will do everything to support the people in belgium. doing everything he can in every way to find out who was behind these attacks. let's get back now to our coverage in belgium. we have had three explosions in brussels today. two locations. beginning first at the airport. we had a second attack at the metro station. over 30 people are dead. belgium is at the highest level of alert. there is transport disruption across europe. france is halted. the city's airport is closed until at least tomorrow. caroline, you literally just arrived in brussels. you traveled from paris this morning. give us a sense of what it's like there. this is a city that is of course in lockdown. it said the highest terror alert implemented. caroline: that's right, it happened shortly after 9 a.m. .ocal time here in brussels this is rush hour. imagine just behind me the commission and the eu council where the leaders were meeting just a few days ago on the refugee crisis. haveurse, with russia you a lot of people going to the european institution. the area just behind me is in lockdown. about 300 meters from us here it's been closed. the streets when i came here were rather empty. here, not manye people in the streets. highway,s on the officially near the 710 airport. is about 10 miles north of brussels. this is the international airport where the first explosion happened. this is where you have a lot of flights going to the u.s.. at the moment right now in the commission things are a little tense. it -- betty: is it unusual that no group has come out to claim responsibility? jones: you have to understand the context. , salahur days ago abdeslam was arrested here in brussels, the only believed to be surviving member of the paris tax after this manhunt had been going on for months. they have been on high alert. they were at level three, now they are on the highest level, level four. of course, many of the terrorists we have seen in the past few months came from brussels inlived in this area, not very far from here either. thank you for joining us today in brussels. you can follow all of those news go for following tliv first coverage. let's check the news outside the events in brussels. vonnie quinn has more. u.s. and nato forces in afghanistan apologized for a deadly attack on a hospital back in october. 42 people were killed. they met with local leaders and those who died in the attack in the northern city. officials in the u.s. military reported on the incident. saying that they don't care ,bout the european union calling for every refugee who makes the trip to be returned. syrians in turkey say they don't care and are willing to take the risk for a new life. in canada, prime minister justin trudeau pushing the country deeper into the deficit, defending a $3 billion shortfall for benefits for families, financing spending on infrastructure. dayal news, 24 hours per around the world. now to a stunning twist in the apple encryption battle with the fbi. saying theyxpert may not need the help of apple at all. ceo tim cook spoke about the controversy yesterday at the apple event. >> we don't expect to be in this position, at odds with our own government. but we strongly believe that we have a responsibility to help you protect your data and protect your privacy. we oh it to our customers and we oh it to our country. this is an issue that impacts all of us. we will not shrink from this responsibility. betty: chris strong joins us with more. chris, did apple get off the hook here, given what they are saying? chris: i think that they did get off the hook. this doesn't look good for the justice department. to theitially argued court that they needed the assistance of apple. that they had tried other ways to get into the phone and it they had found no other ways. on the ep are they go to the court again and say that some third-party approach them and now they believe they might have a viable method of getting into the phone. think that this doesn't look good for the fbi's legal argument. betty: he -- here's the question, who is the third-party? chris: all along different companies and individuals have said that they have methods and technology to be able to break into iphones. need to bee claims verified. that is what the fbi is doing right now. we have known that there have been bugs that protects the operating system. and there have been companies and individuals who say that they have had the knowledge to bypass the security features of the iphone. will the government share the nature of the security vulnerability with apple, chris? that's an interesting question. if they know about the vulnerability, are they other companies know? this has been an ongoing controversy, where people inside u.s. intelligence agencies have said that they need to on occasion keep vulnerability secret. of that creates a lot tension with companies and apple has already said that if there is a vulnerability in their iphone, they want to know about it. mark: can this be applied to other cases? i guess that is a matter as well. i spoke to an official last night who said it was too early to tell. that if this method that has come forward serves as some kind of a template to be able to break into many different phones , that's a very large vulnerability. of course apple would want to know about that. betty: what if this method doesn't work, or doesn't work in the fullest? it would be interesting to see. they have said that they are going to have a definitive understanding by the fifth, if they can actually get into the phone. i think that this definitely points to the idea that doj and the fbi on looking for a way to get out of this court case. remember, when it first came felt they had a very strong case. since then there has been a lot .f pushback a lot of different technology companies and privacy groups, individual security experts have come out against the government's position. they said that doing what the government would want to do would jeopardize security. on the evethat again of the court case, doj backing away and biding for more time. on april 5 they are going to respond. mark: chris, thank you for joining us, bloomberg national security supporter, chris in washington. we are going to continue our coverage of the attacks in washington, special coverage, terror in europe, straight after this. stay with us. ♪ this is "bloomberg markets." continuing our coverage of the brussels terror attacks, bringing us to the broader question of border security, let's go to alan crawford, joining us from our berlin bureau. ,hat has been the response allen, of some of the other governments and leaders across the european union to today's attacks in brussels? alan: obviously across the world they have in fact strongly condemned these attacks in the strongest terms. they have also expressed solidarity. amongst some there has been a certain tone of defiance. it's notthey said that enough just to tolerate terrorism, but we will have to stand up against it. today, theyparis said that now was the time for all of europe to stand up and fight terrorism together. to -- mark: i want to play you a sound white -- soundbite from november in which they spoke about the difference between sovereignty and security. >> it is about sovereignty and security, there's a choice. union is really committed to saying that security is more important than sovereignty and that it is necessary to have more security to protect the citizens while, maybe, a little bit less national sovereignty is possible. is that what it's coming down to? sovereignty versus security? it's obviously part of the big debate taking place here in the u k now head of the upcoming referendum in june. alan: absolutely. and if that's not the question, it raises all sorts of follow-ups and corollaries. the most instant one for me is what then happens with the refugee crisis, where we had last year more than one million people coming into europe. in terms of the questions about border security, most of europe, remember, is part of the schengen trashed -- passport free travel zone. there are no effective borders and many of these countries. ,or example, belgium and france you can travel between without a passport at present. will that change? the other issue is that we are already seeing some politicians coming in, seeing that this applies to the whole debate. stay in the eu? or do we vote to leave? the argument is that the u.k. is safer in the eu, but we are now seeing politicians that want to leave arguing that that's not the case. it's already descending into a relatively bitter argument in the u.k.. that europe has been on high alert since the charlie abdo massacre. and the attacks in paris. the fact that this happened already in a heightened state of alert, how disturbing is that? alan: that's another huge question, how could this happen with the highest state of alert in brussels and france? on top of that what's particularly disturbing is that just four days ago the belgian authorities were celebrating the fact that they had arrested the chief suspect outstanding over the paris terrorist attacks in november. they arrested him successfully alive and were proclaiming that fact four days later. if this is in any way related, these attacks today, it would indicate an extremely sophisticated, coordinated network that can quickly rebound and cause these kinds of atrocities. betty: alan crawford, thank you so much. you can follow along on these events in brussels on the bloomberg terminal using tlivgo for updates. today, the travel shares abigail doolittle has the latest from the met -- from the nasdaq. abigail: priceline is one of the worst performing traders. interestingly, going back six months, we see a lot of volatility and that the stock is trading above the levels of before the paris attack. lots of resiliency here. i reached out to our bloomberg travel agency to say what's going on and they said that these tend to have short-term effects and that investors could be concerned with driving the bigger volatility with company , fending off asia competition from air bnp. will pricing be affect by consolidation in the hotel's race with the recent announced or planned merger between marriott and starwood? we did see the nasdaq term positive. driving that strength is apple. a bit of a postevent glow. a lot of bullish commentary from analysts, including rob hall, who likes the $390 price of the new and smaller iphone, saying that expectations are low for the current fiscal year and that the company could possibly be those numbers, saying very definitively that now is the time to buy apple. all right, possibly. thank you so much, abigail. we are continuing to follow these attacks with our special terror in europe. we will be following the move in the markets. stay with us. ♪ betty: welcome back your special coverage. terror in europe. the president is still speaking from havana, where he remarked right off the bat and gave his condolences to the victims in brussels. president obama: living with dignity, achieving their dreams right here in cuba. the history of the united states and cuba encompasses revolution and conflict, struggle and sacrifice. retribution and now reconciliation. it is now time for us to leave the past behind. it is time for us to look forward to the future together. [speaking spanish] not be easy, there will be setbacks and it will take time. but my time here in cuba renews my hope and confidence in what the people here can do. we can make this journey as friends, neighbors, altogether. thank you. [applause] ♪ presidentk: -- mark: barack obama, speaking in havana, cuba. addressing the atrocities that took place earlier in brussels. he said that the world must unite. his thoughts were with the families of those who lost relatives and of course, he expressed his support for belgium, for the people of belgium as well. responset see what the has been to the bombings in brussels across european markets . the initial response was of course a decline of 1.6%. 100will see that the ftse has come to positive. gainers include radical resorts that are both gold companies. ind is of course a haven times of days like these. as is the japanese yen. gold, yen, and government bonds benefiting from a flight to safety because of these three explosions at took place, three at the airport, one on the subway earlier today. the big industry group that has taken the hit today has been travel and leisure. it's worth remembering that in did see an initial pullback in travel stocks in times like these after 9/11, bali, london, madrid, to name a few terrorist incidents of the last 15 or so years. those travel and leisure stocks have retrace those losses, wiped them away within days and weeks of those incidents. really quickly want to show you what's happening in the bond and currency markets, betty. one of the most interesting places to look today is in the currency market. the euro falling against the dollar. the pound declining against 16 of its major peers. many suggesting that today's news boost the case of campaigners who want britain to be -- quit the eu. no surprise to see the german 10 year yield falling as well. betty: in the u.s. several presidential candidates of it making remarks about brussels. trumpularly with donald was on nbc earlier this morning and asked -- what would be the first thing he would do as president in the event of a terrorist attack? trump: as president i would do probably what i have been doing for the time i was president. i would be tough on the borders and i would not be allowing certain people to come into this country without absolutely perfect documentation. we are already allowing thousands to come into the proper who don't have documentation. we don't know where they are coming from. they happen to come from perhaps syria, but nobody really knows. senator ted cruz sent a tweet -- our hearts break for the people in brussels. make no mistake, these attacks .re not isolated incidents they are perpetrated by those were waging war against all who do not accept their extreme strain of radical islam. radical islam is at war with us and for seven years we have had a president who refuses to wenowledge this reality." will have more in a moment. ♪ find fantasy shows. when it comes to the things you love, you want more. love romance? get lost in every embrace. into sports? follow every pitch, every play and every win. change the way you experience tv with x1 from xfinity. betty: from bloomberg world headquarters in new york and betty liu. mark: from london i am mark barton. this is a special edition of "bloomberg markets" -- " european close." brussels is on high alert after 180 are injured in three bombings. the military has been deployed to secure the capital. the prime minister called this the deadliest attack on belgium soil ever. he called it a violent and cowardly assault. stocks in your grout the most in no week. the latest on how markets are reacting to the attacks in brussels. governor cuomo ordered stepped-up security measures for mass transit systems and airports. the chairman who is responsible for subways, buses, and rail lines that carry millions of people every day. betty: let's continue our ongoing coverage of the terror attacks in brussels. it started at 8:00 a.m. local time with two explosions at the airport. then, a second attack at the maalbeek metro station. belgium is at its highest state of alert. said the u.s.a stands side-by-side with belgium. thoughts obama: the and prayers of the american people are with the people of belgium. we stand in solidarity with them condemning the attacks against innocent people. necessary what is to support belgium in bringing to justice those responsible. betty: let's go to the brussels for the latest developments in the city that is reeling from these attacks. is it like outside? what is it like outside the bureau, on the streets? is it relatively quiet? are people staying home? toes: people have been asked stay home, but a lot of people were already in the city when the bombs went off at the airport. outside of the office, we are across the street from the eu commission headquarters. there is a lot of activity there. there is a lot of police and military they are to make sure it is secured. there is a lot of media trying to figure out what is going on. this is near them all back metro station where the bomb went off. they have pushed back the cordon thatcess to that area so everyone is congregating around the commission at this point. people are still walking around. it is not a clampdown. there is certainly an aura of threat in the air. what connection is being made between the arrest of the paris terror suspect, salah abdelslam, over the weekend, and today's attack? anys: that is not made concrete connection, but that is the assumption. that these attacks are connected. that together, they are retaliation for the arrest of salah abdelslam on friday. that is the premise. we do not have anything concrete among those lines. it looks the case. they're digging through the rubble how will looking for clues and unexploded devices in case there is something else on the train in the metro or in the airport. , we were talking about this earlier with our other bloomberg reporter about how porous the borders are in europe and what security security -- measures were already in place. is there anyone questioning, how could this happen? we are already on high alert. how could this happen? jones: there are lots of , those andeing asked many others, about how these things could happen in general. who caused this, the perpetrators of these explosions. we cannot make all of the connections that the investigators would like. they're digging into that. as do the borders, after november -- the november attacks in paris, there are a sealed them to a certain degree. you always want to have an openness. there is a balance between openness and security. today, people are thinking we need for it to be more secure. mark: thank you for joining us. no doubt we will come back to you later. follow our developments in brussels on the bloomberg terminal. function.e the tilv this is the intraday chart for the stoxx 600, proving the theory that we have looked at in recent decades of how investors react to terrorist incidents. the initial reaction was a 1.6% decline. we have replaced two thirds of those losses. the stoxx 600 is down .5 of 1%. if you look at london in 2005, charlie had though at the -- charlie hebdo at the beginning of last year. all of those losses were erased. look at the travel and leisure index. that isl, airlines -- the hardest hit interest regroup on the stoxx 600. a chart that highlights the point i was making. even after charlie hebdo of january of last year, we saw stocks rise. the gauge rose by 20%. especially in november when we saw the paris shootings there was a one point 1% drop in the following two days, but then a record high of month later. we do see a resilience among investors after incidents like we have seen in brussels. really quickly, i want to show you what is happening to the pound. many are saying it gives those campaigners who want britain to is playingu, that out in the currency markets. sterling is falling. all of the 16 major currencies are rising against the pound. the pound is faring worse than the euro. it is interesting because belgium is in the euro area. the u.k. is not. julie: we are seeing similar action. that is through the resilience in markets in the face of what has been going on in brussels. still have the s&p and dow lower, but not much of a hit. the nasdaq is slightly higher. this is true if you look at the s&p 500 over the course of the session and the past two days. yesterday we climbed dies been the end of the day, lower opening today, but since then we have been pairing declines. we are seeing money flow into .ssets perceived as more safe cold, for example, is higher today as you would expect. when investors are nervous, they gold.o buy treasuries is another area of safety. we are seeing the yield on the 10 year go lower. despite the fact that stocks are not down that much, we are seeing money flow into the safety assets. mark: helping the market rebound? apple. the stock has turned higher. now up by nearly 1%. we learned the government was backing off of its demand for apple to help unlock the san iphone,no shooter's because they got help from a third party source. has turned higher. raymond james actually downgraded the stock today. the shares have turned up by three quarters of 1%. travel stocks in the u.s. do remain lower, airlines, cruise lines, or other travel-related shares like priceline, they have not come back from the initial declines. betty: julie hyman from the markets desk. matt miller has more from our news desk. : president obama says he has gone to cuba to bury the last remnants of the cold war. in havana, the president spoke to the cuban people in a broadcast address. president obama: what the united states was doing wasn't working. we have to have the courage to a knowledge of that truth. a policy of isolation designed for the cold war made little sense in the 20th century. the embargo was only hurting the cuban people, instead of helping them. matt: later, the president and president castro will watch a race while game between the cuban national team and the tampa bay rays. donald trump and hillary clinton will try to pad their delegate lead. contest for both parties and the democratic caucuses. the fifa ethics committee says it is open to bribery investigations. and the others have been linked to suspicious payments and contracts during the bidding. global news --global news, 24-hours a day, powered by our 2400 journalists around the world. for more on how the markets are absorbing the news about the terror attacks in europe, i want to bring in david kelly. david, markets have been pointing out in the charts that the markets usually have been, in the past few years, pretty resilient. david: it turns out that that is the right thing to do. it is the more profitable inc. to do. we should not be terrorized. the actions of a few so paths, it is horrible and we had people in our team in brussels -- he is fine, but it hits home. the reality is that it does change the o'brien movement -- is that it doesn't change the overall movement. people should not overreact. betty: it seems like they are for one, taking that to heart. in your view, this might be a one-day loss in the markets? that we will continue the winning streak in the u.s.? david: i think the focus will turn to other things. the pace of economic growth in the united states and around the world. things like the pmi indices are quite important. i think the attention will move. we also need to look at how this affects politics in europe, politics in the united states. the key is to not overreact. that is what terrorists want. for you to take a political or economic move -- an overreaction to what they do that serves their ends. is the presence of central-bank soothing the impact when it comes to these types of events? it is only been the last six -years or seven-years we have seen tanks introduce extraordinary policies. does the fact that investors know that central banks are there give them comfort and the more, or having more appetite for risk when these types of events take place? david: i think that in the past 10 years or so, particularly after 9/11 and the nieman brothers, we are in an era of more active central banks that will step in and use tools to deal with a financial crisis should one emerge. we should take comfort in the fact that central banks are there to fill the role is markets freeze -- if markets breeze. central banks are running an inappropriately easy monetary policy and fighting a covert currency war, distorting prices around the global economy. the ongoing policy is detrimental to global growth. but, -- currency warvert is not working. the euro is rising after the ecb introduces stimulus. the boj is having a similar impact on the yen. is the covert currency war working? some are saying since the g 20 meeting in shanghai a month ago there has been some sort of agreement between the g-3 nations to allow the dollar to settle, and stop trying to target currencies. do you believe that? david: no. i don't think you can explain the actions of the european central bank in cutting their rates again in an economy that is growing steady. you cannot explain that without saying there is a currency element, nor can you explain the fed's dovish statement last week . the federal reserve should not limit themselves to to rate increases. .t best it is a zero sum game at worst, it distorts prices and incentives for the global economy. there is a reason why having appropriate interest rates is important. it funnels capital to its most important destination. i think central banks are making a mistake i keeping rates across economies, even though the economies are growing. betty: i want to bring up this yard on my bloomberg. it shows that bond market volatility, which had been rising in anticipation of the tightening cycle, they have dramatically come down in the last few days given the sense might be waiting until june before we see another rate hike. what do you make of the sharp decrease in the bond market volatility? david: i think that is right. does the federal reserve told us that they were --ng to be data dependent and that always makes a volatile because you don't know what the data will do. they are not data dependent. they are keeping rates as low as they can to fight the currency war. if that is the case, if the data will move the federal reserve, markets might be less sensitive. betty: we you say that all the data has been strong to support a rate hike? david: not all of it. the global pmi indices in feryk. the freak out that we were approaching a recession in the first quarter was unjustified. betty: blame the stock market and jesters. -- blame the stock market investors. mark: we believe that there. david kelly, the chief global strategist a jp morgan asset management. coming up, the u.s. government might not need tim cook's help to unlock a terrorist iphone. we will follow developments of the terror attacks in brussels. stay with us. ♪ ♪ live from london and new york time betty liu with mark barton. a surprise twist in the showdown between apple and the u.s. government. the department of justice received a delay and a court hearing in riverside, california. at issue was if the government could force apple to help it hack the iphone of a terrorist. you were about to drive to riverside last night and had to turn around because this happened. walk us through the details. .> sure and another reality i would have been in front of the riverside courthouse. that was not to be. what happened was the fbi and government filed a motion for a postponement. it was three pages. focus of theo the fbi and the department of justice saying that they have for hackinga method into the iphone of the terrace sayed farook. they do not necessarily think that they need apple's help now. i want to read a couple of key lines. this happened on sunday, saying on sunday, march 20, 2016 that an outside party demonstrated to the fbi a possible method for syed farook's iphone and that it should eliminate the need for assistance from apple. if the government can get into the iphone, we will get the status update on april 5. we have two weeks to wait to see what happens. mean fort does this the court case? is that it? ramy: a lot of people are asking that. there is one of two major scenarios that could happen. one is that if the government is able to hack into the iphone, potentially, we will not see the hearing that was set for today. if the fbi can crack the iphone, we could be back at square one and be here in a couple of weeks if the fbi tells apple we do need your help and will have to force your hand. if that happens, a ruling would be expected. it would probably escalate to and to thet court ninth circuit court of appeals headquarters in san francisco. then, potentially to the supreme court. the parties do not want to go to the highest court in the land. that could potentially be what is happening with the fbi pulling back saying, let's see what we can do first. betty: what about updating legislation? needs to beation updated. there is a movement time many congressmen and women looking ahead to setting up a national digital coalition headed by a couple of senators and congressmen. one is senator mark warner from virginia and the representative from texas. they are saying that these logs need to be updated. i did speak with the representative from california. he told me the fbi pushing apple's hand is based on the law in 1789. he was saying that a law from that far ago isn't supposed to deal with the 21st century. he going back to 1789, and they were not anticipating cell phones. be anticipating the compromises. until then, april 5 is the day that we look forward to. betty: thank you. ahead on bloomberg television, countering terrorism and transportation. governor cuomo is saying the state stepped up security in all major transit hubs. we will hear from the chairman of the nca and the chairman of the port authority of new york and new jersey. ♪ ♪ mark: you are watching bloomberg markets. i am mark barton. betty: i am betty liu. looking at the egg's business stories in the news. housing prices -- mark: looking at the biggest business stories in the news. housing prices keep rising. of five tents of a percent in january. pricesg estimates as were up 6% in the united states. boeing will probably miss the deadline for delivering the first in a new generation of aerial tankers. they do not expect the initial 46 is to be delivered until seven months late. that is your latest business flash for this hour. ready? ahead, on bloomberg television, mass transit on high alert. we speak with the chairman of the nca. ♪ ♪ breaking news. intel, theo the islamic state is taking responsibility for the attacks in brussels. it started at 8:00 a.m. local time. two explosions at the brussels nirport, then a metroion at the maelbeek station. president obama says allies around the world are fighting back against terrorism. is adent obama: this reminder the world must unite. we must be together, regardless , inationality, race, faith fighting against the scourge of terrorism. we can and will fight against those who threaten the safety and security of people all around the world. betty: today's attacks are the most recent in a series of attacks that hit western europe, inluding the terror attacks november in paris where 130 people were killed. -- with this new information coming out saying the islamic state is responsible for this, what is the reaction? it doesn't seem to be very surprising. we had several eu officials in brussels saying that this appeared to be the islamic aate, given that they had coordinated attack. you had two explosions first around 8:00 a.m. local time at the brussels airport. another explosion that killed 20 people at the metro station near the european commission, where i'm standing. a cordoned dated attack. the paris attacks, there were three bombings at the same time on the tragic evening of november 13. islamict surprise the state has claimed this attack. mark: this is a city that has been in lockdown before, notably after the paris terror attacks in november. are there differences to then? yes.ine: brussels has been on high alert because a lot of the terrorists that committed the attacks in paris came from brussels. they were born here or at some point lived in this area northwest of brussels of maelbeek, which is a center for radical islam in brussels. they are on the highest alert, which is level four. earlier, the alert was already level three. there have been a lot of soldiers in the streets already for the past few months since the attacks in paris. the brussels airport is closed. they have not said when they will reopen. mightussels train station be reopening later today. there might be train traffic later in the day from brussels. betty: what security measures are being put into place? not just today, but going forward to make the city safer? caroline: the first thing, the eu officials are having talks. you can see the flags are at half mast at the moment. people in brussels are being told to stay home. at the paris border, there was -- in the last two hours, they have reinforce security measures at the borders. thank you. you can follow along for developments from brussels on bloomberg using tliv go. going on inhat is brussels, let's get more with matt miller. matt: -- hans -- president obama is leaning on cuba to open up on its human rights record. he said the u.s. policy toward cuba wasn't working. obama: our government settled into a seemingly endless confrontation. in a world that remade itself was and again, one constant the conflict between the united states and cuba. here to bury the last remnant of the cold war in the americas. the president is meeting with cuban dissidents today. he will also watch a baseball game between the cuban national team and the tampa bay rays. evidence collected by isetapping nicolas sarkozy illegal. it paves way for a trial against the former prince president -- former french president. a russian court has sentenced a ukrainian military officer to 22-years in prison in the death of 2 journalists. they say she was an artillery's -- artillery spotter who directed the mortars. global news, 24-hours a day, powered by our 2400 journalists around the world. i am matt miller. betty: commuters are expecting more visible increases insecurity in the wake of these attacks in brussels. erik schatzker is joining us for an interview with the metropolitan transportation authority and the port authority of new york and new jersey. thank you. clearly, with the attacks in brussels, front and center, new yorkers and citizens of the world want to know about the safety and security of the transportation infrastructure of this city. is it safe, secure, are you satisfied with the communication that has been improved since the attacks of 2011? >> yes. we work closely with the intelligence agencies, police agencies, and board authority. we have since 1993. it is part of our day-to-day work. we have the see something say something campaign. it is a priority. itboth governors have made clear to me that there is no higher priority of what the port authority needs to do than keep its people safe. in terms of sharing resources, intelligence, gordon dating security forces, i do not think anyone does it better than new york. erik: you're satisfied that those words translate into necessary action? guarantees,an give but i cannot think of things that should be done that we are not implementing. erik: we are fortunate in the nine it states that for the most part on this continent we have not dealt with that kind of attacks europe has been confronting over the past six months -- for more than six months -- going back to charlie hebdo, the attacks in november, and the attacks in brussels. the have you learned about vulnerabilities of public infrastructure, public transit infrastructure -- the target of today's attacks -- and public infrastructure and the vulnerabilities it presents because of what you have observed those attackers to have done? >> we learned our lesson in 1993. it was ratified in a horrific way in 2001. we have been hardening assets, cooperating with our partners in the homeland security division, the new york and new jersey police departments. we have spent more than $1 billion since 2001 in that effort. we continuously learn new mentalities being used. the way explosives could be transported, where they would he set off. we try to educate our employees and commuters to say something if you see something. if you see a bag alone, tell someone. do not think you will be troubling anyone. it is a cooperative effort. >> john said a lot. when you have incidents like this it rekindles in your mind the importance of this. runningow, as we are transportation for large groups of people that are visible, we are targets. the investments that are being made, there is no need to restate that, but it is the employees and a look at large not taking anything for granted. >> anyone who wants to commit a terrorist attack can if year she chooses to be diabolically creative. isn't incident like this going to force us to reconsider things like open access to departure lounges in airports? >> the public should know there have been dozens of incidences that have been stopped by intelligence sharing and intervention. it is not inevitable that someone with mayhem in mind can commit it. we will need to rethink points of congregation. how much access is allowed to an airport on a pre-security basis to let people assemble. if we were not learning from each attempt, we would be less likely to thwart new ones. we are learning. erik: more broadly speaking, maintaining the infrastructure you are responsible for is a very extensive proposition. each of you has to battle with government for funding. there is the battle for raising fees for users in order to keep your organization's going. if you had more money to spend, what would you spend it on? >> i do not consider it a battle, i consider it to be a dialogue. it is a healthy tension dialogue to make sure we communicate the needs of the assets we need to maintain. also to make improvements, and improvements, , and expansion. we do have to spend money on expansion. would not beney spent in any one stream as much as all of them on a priority basis. we know what projects we need to build, a new bus terminal and a gateway terminals. i do not auto with the governors, i am in a dialogue. getting them to reconcile their perceived priorities, and what we need in terms of regional transportation infrastructure is part of an ongoing dialogue. tengion built into the regional authority like ours. erik: the tunnels under the hudson river are part of the gateway project the governor announced. a 24 billion dollar price tag. for we see it completed? .> you will, erik i hope i will. everyone has come to the table with a recognition this has to be done. i happen to believe with the benefit of hindsight that governor chris christie was right to kill the ark project. to the plate, along with governor cuomo, and torched a consensus around the rail tunnel system, which will actually have multiple benefits beyond what ark would have had. erik: are you confident 15 years from now, in 2030, that new york city will be prepared for its citizens? spent theson i majority of my career in new york is because when the issue came to the forefront of finances to run the transportation system and expansion, the dialogue got us to a place where we got money. we have a second largest economy in the world. i think we will remain that way. the changes are being met by legislators. i am confident. we need to make sure we husband are resources in a way that we have good repair, and in a way where we can get as much useful life out of that asset. the decisions we are making no we aren't leaving on the floor. the original plans for the , they knewr tubes, they needed 4 when they built the first 2. erik: the chairman and ceo the nta, and the chairman and ford authority of new york. back to you. betty: more ahead on "bloomberg markets." continued reaction from the terrorist attacks in brussels. ♪ ♪ mark: you are watching bloomberg television. i am mark barton. betty: i am betty liu. here's what we are watching. the terror attack in brussels reverberating. the case for those pushing for a brexit. deutsche bank faces a possible credit downgrade. they say the credit plan is not working fast enough. a luxury electronics maker has fell to make a profit in three years. a chinese group still has a an ear or the company and is negotiating a takeover. mark: the british pound declined earlier today amid speculation the brussels explosions will boost the case for bread and quit the european union. they have argued that migration leaves u.k. vulnerable to terrorist attacks. exit, thetish referendum on june 23, the likelihood that you vote for exit is going up. it is hard to get the british to get emotionally behind supporting europe, even though they know the economic dangers are great, on the back of terrorist incidences like this. mark: prime minister cameron says being part of the economic and political union makes the country safer, and criticizes those trying to use the terror attacks were political purposes. moody has put deutsche bank on creditwatch. toy think they will struggle carry out an overall plan and improve profit. the operating environment for deutsche bank has gotten worse. hasluxury electronics maker found a buyer. it is in talks with the chinese distribution partner. sell rolls-royce, bentley cars, and the luxury watches. they make a thousand dollar plus televisions and have struggled to win buyers for its products as prices tumble and more people listen to music on smartphones than home hi-fi systems. one of the giants of silicon valley has died. he was a hungarian refugee that escaped postwar europe to become a cofounder. on how tohe book overcome a corporate crisis. a bestseller "only the paranoid survive." was 79.ve matt: a quick take. the african national congress swept power under nelson mandela in the first multiracial elections in 1994 on the slogan "a better life for all." one quarter of the workforce remains unemployed. 22% of the population does not get enough to eat. president zuma's government is to theg from one crisis next. south africa's credit rating is approaching junk status. money is pouring out of the country at a record pace. prices of platinum and gold have plunged. the made south africa a colony in 1902. white colonists this and franchised blacks with constitution. decades ofa endured sanctions and an arms struggle by the amc before the government from prison in 1990 and hold multiracial elections. every election since. the amc government can point to successes. the poverty rate has been 37%ced from 45% in 1993 to in 2014. the economy has grown only 1.3% last year. less than half the rate for sub-saharan africa. the failure to add power plants has led to rolling blackouts that if it manufacturing and many are losing patience. they still have support things to ending apartheid, but they are nervous. one official says that if they do not deal with the crisis, they will degenerate into a mafia state. that is your quick take. for more stories visit bloomberg.com or bloomberg.com /quicktake. betty:5 more to come, including the latest over the drama overvalued. that is after the break. ♪ ♪ betty: shares of valeant are rising for the second day after word that ceo michael pearson will step down. after that, pearson is said to have been side-by-side by bill ackman to address workers. joe armstrong has been following that story. beenew armstrong has following that story. how unusual is it that bill ackman is standing in front of employees in bridgewater, new jersey? months ago, ackman was talking about how they were interested. bill ackman himself is on this board after yesterday's announcement during a town hall style meeting with mike pearson has been touted as the ceo and chairman. they're looking for someone to replace pearson as soon as possible. a bit of a rally, the troops had a bit of the q&a session. betty: no layoffs. ramy: some, just no major layoffs. betty: some asset sales? drew: they have been talking about getting rid of non-core assets. was built through acquisitions. you pile up all sorts of things. they're not talking about selling off a profitable division. they floated the idea of gradual ipo in bausch & lomb, the eye care business. maintaining stakes there, but selling 20% of the shares to raise cash and pay debt. they are sitting on $31 billion in debt. they have to do something. mark: what is happening to howard schiller? can he be made to leave the board? drew: it starts to get messy. howard schiller, the former cfo and current board member. they accused him of impropriety in some of the restatements. they have asked him to resign. he has refused. as long as he is considered an "qualified" board member, which as a former manager and cfo of the company, he is, it is difficult for them to get rid of him. they need a super majority or the shareholders. he is sitting on the possibility that he has $26 million in bonus. it is easier to fight a claw back to that money from inside the board than from outside. 7%k: valeant shares up by yesterday. european stocks are trading lower, but they are off of their lows of the day. ♪ oh, hi! micky dolenz of the monkees here, getting ready to host the flower power cruise. (announcer) we're taking the love generation to the high seas and reliving the '60s. we'll celebrate that unbelievable era with the music that made it so special. there'll 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. you'll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 fun-filled 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. don't miss the grooviest trip at sea. ♪ mark: it is noon in new york, europe, 5:00 p.m. in brussels. they are on their highest terror alert after a bombing killed dozens of people and injured hundreds. in london, i am mark barton. this is a special edition of "bloomberg markets" -- terror in europe. scarlet: if you look at the reaction we have been seeing, you are seeing a shift into safe haven assets like gold and treasuries. it is not as extreme as you would have thought, waking up at 6:00 a.m. they do not seem to be reacting too much to the events that happened early this morning in the u.s. and 8:00 a.m. in belgium

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