Expected. 0. 6 percent. Down still waiting for the dax to open. And at the minute, into looks like the reaction so far, here we go cac down more than 1 in fact but not as much as the 2 some people were predicting. That is how equity markets are opening across the board. What was seen so far is a theme of classic, risk aversion. The euro at some point, during the greek crisis, kind of treat like a safe haven but not happening today. We see it hit a sixmonth a lower versus the dollar. At the moment, pretty much flat. We were seeing a drop my moore earlier. Moving on to gold, traditional safe haven asset, up more than 1 . We have seen as rise the most in a month today. Also, of course, the other safe haven asset money moving into is bonds. U. S. Treasuries, seeing them rise earlier, yields coming down of course before the European Market opened. You can see yields on the french and the german 10 year as well. By clicking muted the to the german bond and you can see the 10 year down well, pretty much flat almost. Look at france, flat. What we have been seeing as a little bit of a muted reaction. In the past when we had terror attacks, talking about september 11, madrid bombings, bali bombings, the reactions have been sharp but shortlived. At the moment, not quite seeing the sharp here today. Are they going to be short lived , is the question. Investors have had the weekend to digest the awful events. The big question is to distinguish how much are down to the paris attack and how much of a general melee in the Global Market . Manus very complex. Manus okd, your market open. Europe is getting started. With had two days of imagery to discuss the terror attacks, the worst in over a decade paris in terms of the specific market movers, he is perhaps it is perhaps the biggest, where will it be found . Troublethe biggest names under pressure. Air france, ryan air, easyjet, pretty much focused in terms of what happened for the Inbound Tourism industry from connecting routes from air france. Iag done over 4 . That is the immediacy of the individual names being felt. The worst terror attacks in over a decade. World leaders have the attacks and promised to support france in the wake of fridays attacks. Is strong and even if it can get hurt, it stands back up again and nobody will be obtained hit it even though grief is all around. France is solid and active and brave and will triumph. Merkel week, the german el for you. We will cry for you and will fight for you. My thoughts go over to the more than 120 people whose lives were taken and family and friends. Germany feels with you and your pain angry. President obama we stand prepared to provide whatever assistance the government and people of france need to respond. France is our oldest ally. The french people have stood shoulder to shoulder with the United States time and again. We want to be clear we stand together with them and the fight against terrorism and extremism. Manus for moore the latest news out of paris, we are joined by guy johnson in the french capital and france now and has nichols is outside the bataclan concert hall. You. Lets begin with paris is going to try to get back to work this morning. Give us a sense, three days of mourning which began yesterday and a memorial yesterday evening. Hans a mixture of heightened alert and returned to have it. Schoolchildren walks of by their parents to school this morning and heavy Police Presence and on the radio, we heard from the Prime Minister. 0 searchesabout15 since the Violent Attacks here in paris on friday night. In addition, overnight, there were some three operations being described in local reports as preventative operations. Suburb of north of here in paris for a total of nine individuals have been detained. There brings the total and france by my count to 16. Seven detained and some of them ostefai, themar m guy who blew himself up and he was identified by a severed finger. That led to several family members. In belgium, seven detentions but we have mr. Abdeslam saleh still at large. And the french officials are warning he could have potentially fled to spain. That is the latest on the investigative side. One quick note, we heard from the Prime Minister of belgium, he says he does not rule out closing problematic mosques in the suburbs. Manus stay with us. The broader perspective of a what does it mean for europe . Varietyeeing a a wide of opinions in terms of the reality of border controls and central europe. Guy all of this, it is going to be an interesting few days. European politicians use this opportunity may be to try and finesse of their policy. We are hearing from Angela Merkel as saying to do not blame the migrants, do not blame the migrants are what happened. We have the incoming polish interior minister saying, saying refugeess inviting must change. Policy. Extremes a when it comes to the schengen agreement, thats under pressure. Later today, the french president will go in front of the proletariat and ask for a threemonth extension to the state of emergency and that is border controls and shutting down schengen and other countries have taken the action visavis the policies. Starting to see schengen under pressure. And politics will be changed as well. Is trying to take politics out of his response to what happened. He met at the other leaders of the Opposition Party on the weekend. We have Regional Elections of the next few weeks, months or it is very clear what of the big winners from what has happened in terms of political numbers, mike and i what to see it is marine le pen. May not want to see it is marine le pen. She is against the open arms policy towards the muslim community. That is something mr. Hollande would try to stand a desperate it will change everything in terms of political story and the wider political story in europe, manus. D hans. Guy an stephen. Ur guest, thank you for coming in. ,he market initially reacted stephen, in terms and 40, surprising to see the euro declining and ive gone through some of the travel stocks. Give me your interpretation. Stephen does not september 11 and not as extreme. , new york was shut down and the stock is change close to four three days. Over 3000 People Killed for in perspective even though it is tragic, the numbers and capacity for the Financial System to operate not affected in the same way. Having said that, looking at the actual effects on the economy, the same terrorist attack, not the first one. For that reason, there are some implications for the French Economy in particular. A slow down in discretionary spending. People less inclined to go to cafes, nightclubs, sporting france. Articularly in the second is more longerterm frictional costs which is undoubtedly security, time, theture, so the friction as it slows things down. Finally, more worrying and guy alluded as the installation of the process of european cooperation really breaking down here. Andspat between the polls the germans about whether or not the refugee crisis should be blamed for this. I would run through some of these risks. The big one, does this give the National Front the traction that they may need to really put them into position to threaten to take power . Regional elections coming up, the big one is a president ial election in june 2017. 18 months. Manus does it create substantial opportunity for the popularity of hollande is near a record low . In 2004 when the madrid bombings to plays, it a few weeks before the spanish elections. Events like this can have a big impact on politics. As a big impact across the atlantic in terms of primaries. I think it opens up the situation in france and we will have to see. Can merkel survive . There are big mutterings now from some for members of Parliament Saying actually shows up the policy could be a disaster. Be something to like this happening in germany and it is shown to be it was a refugee that caused it, i think even a merkels position would be unobtainable. You see the risks. Manus you will be with me through the next 30 minutes, stephen isaacs, stays with us for strike 2 for abenomics. Japan falls into a second recession as shinzo abe took office. Live in tokyo. You are right to say france is mourning and we need today and tomorrow and a long time. All of the french are reflecting and the capitals are reflecting. Ample seem the french and and money was around the world show french people sing the french at them and monuments around the world show different colors. Manus that was the french Prime Minister, manuel valls, talking about the morning them people are going through mourning people are going through. I am manus cranny. Back to guy johnson. Guy franciscus back to business, the latest. French it just bombing targets in Northern Syria jets bombing targets in Northern Syria, the city of raqqa. We understand it is Islamic State strongslamic call. It will continue as Islamic State is preparing more attacks against france and other countries. Prime minister David Cameron said he would build a case for expanding British Action in syria. Brussels is increasingly the focus of the investigation after fridays attack sprint police the attackers have links to the city britt a couple rental cars from belgium were used as 70 people were and seven people were connected. A manhunt for this man, abdeslam saleh. Police believe this 26yearold brussels born man was involved in the attack and consider him dangerous. And understandably the paris attacks are dominated the agenda of the g20 summit which is taking place in turkey. President obama and putin spoke for more than half an hour about syria and Angela Merkel said buzz nott vote be blamed for what has gone on in paris. Let me handed back to you. A pretty developing story through the morning as we began to understand both the security of political implications and talking about the economic applications. Back to you. Manus thank you very much. Toeron will not commit action without a common vote. The tenor here and the u. K. Changing. Lets turn our attention from europe to asia. Japan is back in recession as the economy contracted for the Third Quarter as Business Investment fell and Gross Domestic Product fell by 0. 8 through september. Economists estimated decline of 0. 2 . Bloombergs james joins us. Take me through, under the hood of these numbers. Worst of than expected, what is the interpretation . Worse today was a lot of than what people were expecting. This is investment was weaker as everybody was expecting a present consumption was a little bit stronger than most people thought. What attracted down the numbers were inventories. Inventories and factories and supply chains fell. That is a good sign of the economy because it Means Companies are selling what they produce. If there was a big buildup and the stockpiles, companies would cut down. Pios. It has the effect of weakening gdp. Badreport a percent looks a 0. 8 looks bad but under the hood, a good sign of the economy. That means exports are improving efforts present consumption is improving. A bad number but slightly more hopeful Going Forward in this quarter. Manus james mayger in japan. Thank you very much. Stephen isaacs back into the conversation. Talking about japan and a moment and one minute here. The refugee crisis, the debate between what merkel is saying and a host of voice in europe in terms of what we understand so far should not contaminate the response to helping refugees. Bephen isaacs it will messy. What concerns me is apparently several hundred thousand refugees trapped half way between greece and germany. With winter coming up very fast any moment. And borders going up and answer just board is going up much more quickly after the weekend had anticipated per very hard to see how it is not going to be disruptive to business the for that of a humanitarian side from a moment. Businesses relying on seamless , unfortunately going to find a thing slowing up after the least for manus the euro is moving actually some was a ironically, declining and rather peak moments a really to stress and market and has acted as a haven in 2015. What do you make of it . Stephen isaacs mario draghi hinted at it and the problems are going to make it much more likely they will extend qe the young to september next year. There is an imbalance and the fed is more likely to raise rates. Thats the real point. The politics in europe, people are concerned that we had the conference last year leslie trying to address the refugee problems. 28 nations with different views as circumstance can now actually resolve this problem. And investorsy are concerned. Manus the other major issue is the fundamental driver of the euro and the value of the dollar preinto fed has attempted to shake the rattle. The value of the dollar. And in the fed has attempted to shake the rattle. Do you think the fed will be swayed in any way . Another geopolitical event. Stephen isaacs i do not think so. The only thing that was stopped the fed is the less employment report is at the last employment report which will come out in december. If it there is a weaker figure, that october was an outlier, the number was strong, its possible the fed will hold fire. If it shows another relatively strong number with Unemployment Rate at 5 which is where it was, the fed has to do something. Manus we had a report on japan and returning to recession, some would say a lot of restocking commit lot of inventories were responsible. What to do think application has an term of policy and were you surprised . Stephen isaacs japan is more vulnerable to goods cycles than other economies. That is what concerns me now. If you see what happened at the dubai airshow last week and see rollsroyces figures and you can see a lot of businesses were reliant on longterm demand from emerging markets, things like aviation. House long, long cycles and therefore still have the followthrough from the big, emerging market boom. Nouns that it has ended, this capital goods business are nominal it now is that it has ended, this capital goods business are nominal. The goldeny going to treasuries, that moment of response. In the backdrop, the new prime stir of canada rival at g20 and talking about deficits. Prime minister of canada arriving at g20 in talking about deficits. We will talk to ryan at the g20. What do you make of the emerging market . One more reading for jobs . Stephen isaacs emerging markets are leading the whole cycle down. Athink we are in a long term longterm bear market for emerging markets. Developed markets are now catching up. A bubble bursting, an incredible burst, 1015 your bubble. Lookout was wealth was created during that bubble, unprecedented when bubbles per of a of going much lower than you think. We offered are paying to come. Come. Have further pain to thank stephen isaacs, you. G20 summit and talking about what to paris attacks it mean. The potential impact for their business. Issuecourse, this kind of it is short term. Individual, i said it is local issues. I hope it will not happen to me. A material issue for your airline if you have these terror repeated. Temel kotil exactly. This is what happened. The arab from 2003 on, springs happened, flying into algeria and into [indiscernible] believe that in the effect of this kind of terrorism is minor. But it is major, you know . And this what im asking all here, thebig guys president s to sit down. And as a consultant solve it. This kind of thing to solvable. I am not saying to close of them but they can solve them. They have the medicine. Manus the ceo for a airlines speaking to ryan chilcote. Into the markets. 26 minutes into the trading day. The biggest and most significant decliners on the stoxx is under our travel and leisure stocks. Down 1. 89 a youre looking at aig down. And london is down 0. 3 . A lighthearted hit. Air france on the hope down nearly 5 . Are the markets going in terms of initial responses to paris . A look at some of the Global Markets, oil, gold, copper, all moving this morning. Oil just trading slightly higher. Supply issues dominate. Gold rising. 10 year Government Bond yields decline by 0. 1 . Manus welcome back. This is on the move. Live shotsing at outside the restaurant in paris where those atrocious attacks the place late on friday evening. Paying their respects to the victims of fridays attack. 30 minutes into the trading day. Lets see how the Global Financial markets are reacting to the tragic news over the weekend. Equity markets at the moment, the stoxx 600 down. 2 . Comparison tol in some of the Market Reactions that we saw in 2005 in london. By 1. 4 when the spanish attacks happened in madrid. That markets declined by 2. 2 . London is up. Revenue in a way markets showing moderate declines. Currency for european currency. The eurodollar down. 3 . Mayo draghi will speak later today at 10 15. Leveragedstill in positions. The next short positions are at a 25 lehigh desk 25 week high. Lett to nejra cehic us get to nejra cehic. Make oh many stocks moving into wake of these attacks in paris maiko so many stocks move meredith nejra so many stocks moving in the wake of these attacks and paris. You can see air france down 4 . It is not the only airline posting losses. Lufthansa is also posting losses. Ms lly highlighted hermes because luxury stocks have taken a hit. Some analysts pointed out the luxury sector will be impacted by the events, given that spending by tourists represent half of sales for the sector in europe. A lot of stocks moving in the wake of that news of those terrible attacks that started friday. Back to you. Meg guy, you have a breaking news in terms of identifying some more of the attackers man go guy, you have breaking we have issue of the first identification. We are getting a further confirmation of the fact that the French Police are working through getting an understa