Transcripts For CNBC Squawk Box 20160324 : comparemela.com

CNBC Squawk Box March 24, 2016

Down another 1. 7 to 39. 07. Also, the u. S. Governments Energy Information administration said stockpiles climbed by 9. 4 Million Barrels last week. A couple other stories were following. Starboard reportedly now ready to finally launch a proxy fight to remove yahoo s entire board. The furm has now been a vocal critic of the tech companys management, most recently asking yahoo to sell its core business. Starboard owns less than 1 of the company. The wall street journal saying they will nominate nine directors to yahoo s board. Also, yum brands is reportedly in talks with private equity firms kkr and hopu inforvestmen to sell a Minority Stake. Reuters reporting the possible stake sale values the China Business at about 10 billion. And app sl reportedly expanding its Payment System into mobile websites. Its going to do it later this year. Recode says the move will happen before the Holiday Shopping season. Apples Payment System will be integrated with its Safari Browser to allow purchases from mobile websites for shoppers using iphone and ipad models with fingerprint security technology. Now the latest from brussels. The deadly attacks we saw this week. Michelle carusocabrera join uses from the capital there. Reporter good morning, joe. Overnight authorities are saying they now know of definitive connections between the attack that occurred here in brussels two days ago and the attacks in paris. First, the two belgianborn brothers who were suicide bombers, one who died at the airport and one who died at the train station, they believe they were accomplices to the paris attacks, providing safe houses, transportation, and ammunition. In addition, the man believed to have been the bomb maker in the paris attacks, najim laachraoui, was believed to have been the bomb maker. Theres been a lot of talk about whether theres been enough intelligence sharing. For those of us who have followed the eurozone financial crisis, its a very parallel discussion about whether or not there should be more of a crossborder institution. The way we talk about it with the Banking System in europe, thats how theyre talking about it with the Intelligence Services here in europe as well. That every single country has their separate intelligence service, and there are complaints there isnt enough sharing. This is the counterargument we told you about yesterday where the euro skeptics are saying whats happened here is proof that there have to be closed borders, that each country has to take on their individual sovereignty and protection of themselves. So once again, the Key Development being that there is a definitive connection between these two attacks that were so prominent in the last four months here in europe. At the same time, the other thing that i want to tell you about is its knot linot life b normal here in brussels. Theres only one entrance theyre allowing people to use at the train station. Theyre frisking people as they go in. This is still very much a city that feels under a state of siege almost. Back to you. Its connected to paris, so who knows where the tentacles are right now in belgium, in brussels. It would be frightening even just to be there, i think. Even just to be there for you. Something else oh, because of the will, because of what the one bomber said, it looks like that was the case, that they felt the heat because the other guy got caught, and they said if were going to do this, we better do it before im in a jail cell sitting next to the other guy. Yeah, youre referring to the capture of Salah Abdeslam, which happened last week. So this attack occurred almost immediately after his capture. The question was, did that capture incentivize this attack . What kind of implications did it have . Theres one local report, nbc news has not confirmed this, that they were planning something much bigger. This has frightened people here. That they were going to try to attack nuclear facilities, but that was changed as a result of the arrest of Salah Abdeslam and led to this improvised version, perhaps, of what we saw here two days ago. Michelle, is the prevailing view that it is worse because its an intelligence failure that this is a Similar Group that is very much attached to what took place in paris, or is it more worrisome or would it have been more worrisome if this was a completely separate cell, if you will . Look, its a very good question. I cant give you an answer to that. I can tell you that because of the stateless nature of the people doing the attacks, the fact that they were cross border, whereas the Intelligence Services dont appear to be working cross border, gets to a very core question. How do you answer that, or how do you respond . Remember the open border policy here in europe came in the wake of the end of the cold war and the peace dividend that happened as a result of it. Nobody anticipated this, what were seeing now, these stateless actors. So what do you do . Your question is a very good one. Im not sure i have an answer to that. I think theres arguments on both sides happening here. Europe is no different than the United States. The pundits are on television. Theres all kinds of opinions in the paper about what went wrong, whos to blame, et cetera. Well, its almost semantics. Theyre all isis. Who knows. All the cells might be have some knowledge or coordination with the others. Theyre all coming from the same head, the rotten head on the way down. Maybe they dont have any contact, but its weird. Maybe theyre all interconnected at this point since they were trained at the headquarters. Probably better if you were isis to keep them separate in case one gets caught so they dont know what the other ones are doing. Who knows. Michelle, there was there are a lot of recriminations, im sure there in the media, here as well. Im sure the two that rise to the highest level are, one, news from the turkish president that one of these brothers was caught on the turkeysyria border last summer and they alerted both the frenchspeaking and dutchspeaking authorities in belgium. Let them know about that. Still, he was not seen as a terrorist threat until very recently. Secondly, israel saying that they were very specific threats. They knew it was an airport that was going to be hit. Both belgian and other western authorities. Those are the type of recriminations that are more difficult to shrug off. Reporter sure. Yeah, absolutely. And weve already seen the belgian authorities responding, saying, so youre talking about the leader of turkey, erdogan, having said that they knew they deported one of the individuals. They knew he had been in syria. They believed he was a terrorist. They deported him back. The belgian authorities are saying they didnt have evidence of that until very recently, that they had looked into that. But those are the kientd of things we saw this after the paris attacks as well. The lead investigators in paris, for example, said look, we didnt have any indications that the ring leader, the organizer, so to speak, had been traveling throughout europe. After the attacks, we found from a noneu intelligence source, they told us they knew he had been here and entered europe through greece. Its going to be tough. Theres going to be a lot of finger pointing. We know in the United States that theres often rivalries between investigative institutions is within the u. S. Imagine that spread across 26 different country ryies here in europe. Then the outside world weighing in as well. I just cant believe the bomb maker blew himself up on purpose. All i can figure is none of them are good answers is theres another guy ready that knows how to do it or this guy thought he was going to be caught. His fingerprints were on the bombs in paris too. But why do you sacrifice that guy . Maybe he thought he was going to get caught. Reporter right. Because bomb making is a very difficult skill set. Once someone is trained, you dont want them to die, in theory, because you need further bombs. Did he blow himself up on purpose . Its a good question as to why that happened. Yes, joe, you bring up a good point. Is there somebody else . Were they comfortable letting him go because someone else could do it now. Okay, michelle. Thank you. Well check back with you. We appreciate it. Right now lets look at some of the other items that the markets will be focusing on today. Economic data and fed speak are front and center this morning ahead of a threeday weekend. Weekly jobless claims and february durable goods are out at 8 30 a. M. Eastern tomorrow. Just a reminder, the markets are closed on good friday tomorrow, but the government is still releasing the final revision to the Fourth Quarter gdp. In earnings central, signet jewelers, finish line, winnebago, and game stop are all reporting today. St. Louis fed president James Bullard will be speaking about the economy before the opening bell. Yesterday, bullard was one of multiple policymakers making hawkish statements saying an april rate hike could be possible. That moved the currency markets. The dollar is up against the euro at 1. 1172. Its up against the yen at 112. 68. Up against the pound at 1. 4092. Take a look at the price of gold. Youll see at least at this point after some recent declines, gold is down once again, another 5. 5. The stronger dollar putting pressure on stocks across the board. The dow, the s p, and the nasdaq are all on track to turn in their first negative week just in the last six. I got sucked into thinking maybe we should buy, all of us. Buy gold . I was watching one of our commercials on cnbc. It wasnt one of our commercials. It was a commercial on our network. Said biggest debt bubble in history, all around the world, every country, every central bank. The only thing when this all comes home to roost, the only thing thats going to be worth it is gold. Im thinking hes right. Got to get some. Got to get some of those coins just in case. Put them somewhere. But i dont know where to put them. In a locked box. But i have i dont want to give too much information. If its not secured, cant they steal the safe . Yes. Its heavy. Anyway, joining us for more, allison dean. I have jewelry. You know what im not buying. What are you not buying . An etf in gold. Hey, i got this paper. Im at the border. Let me through. Look, i own this gold. But if we get to the world youre talking about, where are you going to cash in your gold . You need a gun, not gold. Cash it in with the guy with the eye patch whos letting people come through. Heres a sandwich. No, this is a Zombie Apocalypse were talking about. Allison, getting serious, earlier with our people on worldwide exchange, we have a sort of more global view. Im not surprised that european stocks cant go up after this week. Not only is it just it hurts. Animal spirits are not enough. I dont think you put anybody in a buying mood after this. You got 300, 400 people supposedly trained that are still there. So there are big concerns. After six straight weeks up, im not surprised the markets cant get any headway this week. Even if you dont connect the economic dots, it affects the psychology of the market. Oh, yeah. Uncertainty, fear are not very good emotions to have if you want people to feel good about the economy, to spend, or for companies to invest in their businesses. Does it last longer this time . The time between nations we visit and this isnt in mali, no that no one visits mali. This is brussels. This is paris. You think of the european capitals where people go. Its happening. Now we hear that theyre ready to go with more. This seems like it could be different. This is the hardest thing to call, which is i do think that people will be more paranoid longer. My sense is a lot of americans will think twice before traveling to europe. We go through airports. We take public transportation. The state department has told us to be more cautious. Yeah, so i think it does have some affect, particularly on the travel side. Some on spending. Theres always the element of the time lapse between different events. People will forget and get back on with their lives. But i do think there is an element of Global Travel that will be affected. I wonder how thats the key question. The longer it is between events. They have a stated intention. You read some of the previous warnings that this is the beginning of the storm, and theres going to be blood across europe. Things thing like that. Now were looking at this European Union experiment. Its like, so theyre belgian nationals. So they can go wherever they want, and they went this year, they came back. They can come over here. They dont need a visa to come here as a belgian national. Seems like its much more in question at this point. Youre going to accept anyone whos made their way into any corner of the eu. Whats scary is the lack of exchange of information. The fact that this person appeared in a few places. As michelle mentioned, not surprising when you have that many different intelligence agencies in 26 different nations. We had that issue. 9 11, the fbi and cia werent talking to each other. 5,000 sleeper cells in the United States. That was obviously not true, i dont think. Nothing happened. But thats where you want to walk a fine line between overreacting but also being i think the issue is europe probably needs to come in and say, these are things were putting in place as a unified force. I think seeing that happened so will these things i just wonder how long it persists in, you know, masking just regular fundamentals, whether earnings go up, whether the fed moves, things like that. I wonder how long were in this. Well, interestingly, our markets didnt react very much to the event. To some degree, i think our markets are more focused on what the fed is going to do, First Quarter earnings, which probably wont be that great. The fed might sound a bit more hawkish, which could put a damper on the nearterm results. I dont think our market has responded as much as it would have expected. Okay. It is what it is, i guess. Thank you. Thank you. Youre welcome. When we return, increased Public Security could mean big changes for the way americans travel. But how far could it ultimately go . Metal detectors on the subway . Were going to ask a former tsa security official next. Elongs t. And to help you accelerate, weve created a new company. One totally focused on whats next for your business. Accelerating innovation. Accelerating next. Hewlett packard enterprise. Welcome back to squawk box. The attacks on two travel hubs in brussels raising more questions about Transportation Safety here in the United States. Ayman javers has more from Silver Springs, maryland, this morning. Reporter yeah, good morning, andrew. Were here at the Silver Spring metro station in suburban maryland. Its an Intermodal Transportation center. That means theres the metro here. Also, the consumer rail trains, the big heavy csx trains. Buses are behind me. Theres a taxi stand over here. This is transportation in america. So much talk since the brussels attack over how to secure facilities like this one. The department of Homeland Security has already said that the tsa is going to step up security at airports, at bus stations, at transportation depots across the country. Theyve also said theyre going to coordinate with local and state Law Enforcement and share information with the private sector. But so many of the Security Experts that ive been talking to saying putting up more guards and security at facilities like this is not necessarily the answer to protecting americans in terms of transportation. If you think of a security perimeter, what youre thinking about is a giant circle with some doors in it. Those doors are the choke points. Wherever you put those choke points, thats where people transfer from an unsecure area to a secure area. Thats where theres going to be a crowd of people. Thats always going to be vulnerable no matter where you put your security perimeter. Inside an airport, outside an airport, down the street, wherever. Theres always going to be v vulnerabilities in the is the. Heres how one terrorism analyst put it. By being able to disrupt them, identify their communications channels, their financial channels, the means by which theyre accumulating weapons. If you can disrupt them anywhere along that chain, youre going to disrupt the operation. Youre going to be able to save lives. Reporter so guys, the key here is its an old cliche, but the best defense is sometimes a good offense. Thats why as were standing out here this morning, we dont see any new visible security efforts here in Silver Spring, maryland. We dont see a stepped up Police Presence or guard dogs or anything of the kind. The experts say theres a reason for that. Okay. Eamon, were going to leave it there. For more on airport security, lets bring in chad wolf, former assistant administrator at the tsa. Good morning. The Big Conversation you keep hearing over and over again is what do we do, do we push out the perimeter at an airport, but it does raise this question, are we going after the right thing . If were talking about doing it in an airport, what do we do at a train station, at a Shopping Mall . Are we looking at the right aspect of this . Yeah, i think so. I think as tsa responds to what happens in brussels, theyve got to look at a variety of different measures. What youre going to see at airports and probably train stations and metro stations is that increased Law Enforcement presence. Thats really the primary response that tsa has when we look at our transportation notes. As your earlier reporting said, the choke points he

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