[bell] alix: u.s. stocks had the worst week since august, s&p 500 falling below their average. joe: the question is, "what'd you miss?" hittingtail woes, it is retailers. what it means for the shopping season. joe: and a bright spot in mexico, emerging markets may be getting clobbered, but there is promise in our southern neighbor. scarlet: and the rise of the robot, will it take over so many jobs and how will we find work if they do? scarlet: we begin with the market, the s&p and dow closing at three week lows. you could argue that the drop in equities is reflecting a disappointing retail sales today, and we had disappointing chinese growth numbers in an oversupply of oil, but these are the same themes, recovering

could see more tense. joe: the stock market did come a little bit off the last couple of days were ugly and we are in a down streak now. credit,ointed out, that which has gotten a lot of attention before the big selloff in august, that has been weakening and there have been trends on higher yields my back to where they were in october. people often say that credit is a leading indicator, that is something to watch. scarlet: my indicator, commodities. alix: take a look at oil versus the s&p 500, that tells the story. march down the most since and it is closing for the week at his lowest level since august 21, so read around that horrible sell off that we saw a related to china. joe: some numbers and amount of supply that is in the world that is staggering. keeps is like the u.s.

pumping oil. scarlet: that leads me to my deep dive, i was interested in that report from the iea. wti, that is the white line. and you can see oil for the yellow line. alix: to me, if we are looking oil notlion barrels of being used, that would be a negative, but u.s. got hit a lot harder than brent, which makes no sense to me. this is a particularly weird divergence where you see the u.s. get hit a lot harder and i don't have an answer for that. joe: and both got clobbered all week. alix: but overall, if you see inventory across the globe, that would hurt brent, they should be down 3%, not just wti. we should point out that the long is with the bti, but also with brent.

it is not necessarily a long shakeout, because it was half it both of the same -- it would have hit both the same. joe: and we are looking at retail sales, a disappointment. we are waiting for the spending surge that is not happening. here is a fascinating chart that are chief economist pointed out, this is the divergence between non-store retail sales, online places, and department stores. absolutely clobbered. these are two different lines going in opposite directions. non-store retail sales are over 9%. department stores, once they mattered, now this is a backwater. about 3% of retail sales. two very sharp changes. scarlet: only 9%. alix: there is so much more growth. amazon is sowhy

high. scarlet: i want to piggyback off of your theme and continue at home because look how it plays out with equities. it is pointed out the divergence between these retail epf. this a redline is tracking consumer companies and is looking at internet retailers. amazon is at 10% and it has gained 4% since october. the start of october. the xrt has more exposure to brick and mortar retailers, that is falling 4%. , butnsumers are spending in different ways. the data we used to rely on may not capture that any copperheads of way. joe: this is the only one of those challenges, you have to dive into the retail data to know. alix: and i want to point out the cisco shares have been down all day long because of the disappointing forecast. scarlet: this afternoon, there

was a report that it was looking to take over erickson, which they had announced a partnership. erickson saw a big bump in stocks in the u.s., it came back down a little bit. talksindeed with -- in with a venture partnership. alix: i want to bring in our guest, the chief of global equity strategist, helpless break this down. -- help us break this down. ,e will start with retail sales it looks like americans are saving the money that they save at the pump. doesn't the risk off trade show that investors are pricing it at a disappointing holiday season? >> i think they are cautious, very cautious about u.s. earnings, that is the issue here and there is a we are so focused on the retail numbers is because the industrial numbers have been week for a while, so it what is keeping us going is the consumer

and retail numbers, so we are very sensitive to any negative news. joe: something you pointed out in a recent research, investors globally are highly exposed to u.s. stocks right now, higher than in the past. can this go higher, but is -- or is it inevitable where there will be a shift to other regions? -- seeing seen nation money back from japan and other places, and the u.s. is that a five-year high here. the valuations, 20% above average and the fed about to raise rates, which usually puts multiples down, this is why we are cautious. scarlet: we want to think that oil stabilized mainly from here, does that wind up saying, yes we should be in u.s. stocks? >> i think it is supportive, but looking at europe, we are looking at earnings and they'll and surprises valuations, and in

the u.s., markets relative to the u.s. it is much more favorable in markets like that. joe: today, it we got some data, it does not look like they are getting the economy going, but to you it is still cheap enough to justify political risks? isi think the european story run by two things, the week euro at 110, and the others wages. wage growth is benign in europe. , markets arerowth expanding and usually it is very low. maybe three points lower than the u.s. and we have a double consensus. scarlet: let's talk about sentiment, just to dive in, the

chinese evaluation and a tumble around the world, equities another risky asset, but will that prevent a bear market, is this what ambivalence looks like? x is in there, individual investor sentiment, as you can see, we touched a six year low in august and that was a huge signal in hindsight. now we put it in reverse, coming down. this is to be expected. it looks like the fed will raise interest rates and you have a dollar strength, that has put commodities back under pressure. so this is natural and healthy, frankly the sentiment is back. scarlet: the 50% double consensus -- 15% of a consensus that you mention, what is going to be the trigger for that? we see europe as more exposed than china or the u.s..

>> you need stabilization. the containerization -- continuation of this growth. for a while, they were just letting it rolloff and looking at the benefits of a weak currency. you are going to get 8-9% earnings out of europe this year, one of the highest numbers globally. scarlet: in terms of how cheap it is, you pointed out that the u.s. is actually much more expensive than europe. with -- whatxpect, should that be? u.s. you look at the versus europe, there is a 10-15% discount. in the where we are cycle, the u.s. has expanded significantly. european earnings still very percent -- 30% below where they were before the crisis. p is closer to 35%. joe: i want to get your take on

the credit situation, the exposure to credit is at one of its highest levels ever, yet funds are stuck to credit. we talked about whining the spread -- widening the spread, is this another area for a weakness in the u.s.? >> people are looking for extra return, but they do not want to take equity risk. and it is a blowout in credit valuation. it is deftly concerning. scarlet: so hybrid funds, with a be dumping equities, because they are eager to sell those off, instead of corporate credit , which a lot of people argue is in a liquidity funk. >> frankly, they have gone into everything. you see a lot of money going into credit. a lot of money going to equities. so it is a simple answer, a lot of money going to all assets. go, what is the

single biggest risk you see in 2016? >> lack of earnings, you make money when the fed raises rates, which is multiple and earnings accelerate, but we do not see this going into exhilaration, so we worry. alix: you are staying with us and we will discuss this further. scarlet: and wimax ago could stand out and imaging -- and why mexico couldn't stand out in -- could stand out in emerging markets. ♪

♪ we willhat'd you miss?" get right to it. abortion caseirst

in nearly a decade, the supreme court will hear arguments over texas law that regulates abortion clinics. the high court blocked hearts of -- blocked parts of the clinics, -- it should come for month before the election. and officials say that they are fairly certain that jihadi john was killed in an airstrike in syria. he is a british citizen who was seen in several videos beheading hostages. a spokesman for the u.s. coalition fighting the islamic state says that an assessment is still being conducted to confirm his death. vienna forrry is in international talks on syria ahead of saturday's meeting, carry held discussions with the foreign ministers of turkey and saudi arabia. he also met with an envoy for syria, the civil war has left more than a quarter million

people dead and allowed the islamic state to take over parts of syria and iraq. has reverseddge his decision to take a baby away from lesbian foster parents and place her with a heterosexual couple. the judge signed in order that would allow the nine month old baby to stay with the two women, a married couple. utah officials and the couple filed court challenges it demanding that the judge rescinded the initial order, which he handed down yesterday. ♪ you can get more on these and other breaking stories 24 hours a day on bloomberg.com. back to you. alix: we have breaking news, the associate press reporting that there was a shoot out in a paris restaurant, ambulances are on-site, there were fatalities reported. we will give you details as we get them. scarlet: there are some casualties any paris restaurant

shooting, that is the headline right now. alix: we'll be monitoring headlines and bring you the latest as we get them. emerging market stocks had their biggest drop since september. the index falling to a 50 day moving average and that is coming as it grow over china's credit. one place that they like, is mexico. then is back with us. joe: a lot of people like mexico, it the closest thing to a consensus when people say what is the one bright spot, but if so,look at the pay so -- pe it is not performing credit why is it not performing and why hasn't not met what analysts suspect and will it turn around? >> there was a lot bill into the reform agenda and it did not merely produce. -- immediately produce. there is a lot of frustration, you are finally beginning to see

that come through. you see mexican earnings growth really picking appear. in thei mentioned previous segment, the scarcest thing out there right now is growth. we have 20% earnings coming out of mexico, you do not see that across the world. alix: if you track the peso versus oil, the two have closely tracked each other and that is the reason why mexico have not been able to participate in a rally, is this correlation justified? oil producer, big that is part of the story. mexico is good at restraining spending. they have done a big energy reform, opening up the sector. this is the third round -- alix: bad timing. >> that timing clearly, you will see projects being sold soon. that will be a big driver. and clearly, bad timing, but

they are making the best they can of a fairly tough environment. scarlet: what about the cost of corruption, it is difficult to quantify, but there was one report that estimated the cost is 5% of gdp, what level of progress have they made in recent years since the new president came in 2012? >> you will not find another country that is even close to the amount of reform that they have done. reforms that have been done, including energy. education reform. it you put it all together and the potential growth in the next three years will rise by two percentage points. that is the story. joe: if you look right now, this chart shows business measured by the world bank on the mexico clearly one of the best in latin america. >> we think it is improving. big step change,

you want to see it accelerate over the next three years. joe: right now, there is an impressive rally in a mexican consumer spending, the consumer is doing well. what is driving that and how far can i go? >> one reform is the labor reform, making it easier to join the sector. one of the things the mexican government is trying hard to do is incorporate work in the economy, training the more, better security. i think part of it is that, inflation is coming down, that is part of the reform story, energy prices, utility prices, they have all come down. so a combination of a stronger labor market and lower inflation is giving a boost to mexico. alix: why have we not seen this reflected in stocks? >> emerging markets is under pressure, because of lower prices, because of the sentiment , it is a reasonably owned

market, put it all together and it has held the market back. it has outperformed emerging markets, but is still down. m, oil is bad. >> that is certainly about the currency. it is, it tends to be the first --ng sold, so i differently definitely see it with the currency. and the equities story, the pension fund has grown in mexico , they have put a lot of money into equities, they are buying in the market. alix: we have seen financial stress. scarlet: we have seen and fall off the cliff at the end of the day. alix: borrowing cost is high, usually we look at the credit

market to see were the stresses. -- stress is. >> if you look across a merging markets, they are sensitive to weaker currency, especially -- clearly, very sensitive to expectations about what is happening with u.s. treasury's, that has had an impact. --: is the weekend pe weakened peso playing out in the data? >> you mentioned china earlier, mexico is the opposite of china, right next to the united states, they are importing into the u.s.. much of the gdp is driven by the u.s., so this has given them an advantage. scarlet: the moment that they will turnaround? will it be december, january? >> i think if you get a move up in oil, that is when the fed

will raise rates and that could be the trigger. alix: thank you very much. scarlet: we want to give you an ,pdate coming out of paris police officials in france say there has been an explosion at a bar near a stadium. also a shoe out in a paris restaurant. it is not clear whether these are connected events, although there is a local television report saying that many people were dead in the restaurant shooting and you are looking at pictures out of paris ritz -- r ight now. we do not know if the shooting and the explosion at a bar are connected. these are photos from twitter. there are casualties and we will give you more details as we get them. alix: we'll be right back. ♪

alix: more details on breaking news out of paris. the french president is evacuated near paris after two nearby blasts. there was an explosion at a bar near a paris stadium and a shoot out at a restaurant in the 10th district. we will have more detailed and pass them along as we hear them. alix: the university of michigan reporting sentiment today, showing that people are much more willing to dip into savings. this is a standout for me. people are more willing right now than they were in the late 1990's to go into savings and spend, is that a good thing or bad thing, it is what it is. joe: i was a good. debt, i am all about. predictions about long-term inflation, where people think

inflation will go, fell to his close level since 2003. so the extent of inflation driving the economy, that is not good. and i love this quote, tell someone on the street gas prices are down and of the dollar is strong and they will be thrilled to tell it to somebody at the equity building and you will get something about inflation expectation, meaning, forget about inflation exposition, they are spending money, do not fret about low gas prices. alix: it is weird that people notice it, usually people do not notice until things go up. scarlet: people's expectations are dictated by the most recent have, prices have not gone anywhere. the hyperinflation top that people warned about, has not come to pass. in terms of what people said about media and household -- meeting in household income, one point of percent, that is the

rate for october and as the second-highest -- november i should say. that is the second-highest in the cycle and it is a strong rebound from the last couple of months. householdsy of wanting to dish out for big household items. a washing machine, people looking to buy. now back to the highest since summer 2005. alix: and a doctor at the university of michigan, i was on a call with bloomberg intelligence, they're discussing the report and he said that is what my position was in september when i reported a decline. i thought it would be a bad time to move ahead. i think december is probably ok. do it when people are feeling good. joe: he said he was giving the fed a green light. scarlet: we will see if it has an impact on retail sales. alix: coming up, we will discuss why global inflation is set to rise and an author of the report

tells us what it means for the fed and the markets. ♪ . . . the only way to get better is to challenge yourself,

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it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. "what'd you miss?" i'm scarlet fu. the associated press is reporting two explosions were heard from the paris stadium during a football match. said there was a separate shootout at a restaurant in the city. the french president francois hollande was evacuated from your paris according to local tv networks. the a.p. says it was not immediately clear if the incidents were connected. they did cite police officials who spoke on condition of anonymity. they are looking -- you are looking at pictures from twitter on the event that took place. we will give you more details as

we get them. let's head over to mark crumpton. mark: the national transportation safety board says it may help in the examination of the engines from the crash of on metrojet plane egypt's sinai peninsula. the agency is also helping the egyptians with software to read the cockpit voice recordings. earlier, egypt said it was farming out the effort to analyze the final seven seconds of the tape. the investigation tape said it includes a last-second noise. russian news reports moscow is banning egypt's national carrier from flying to russia to that van starts tomorrow. angela merkel is making clear she is still not prepared to name an upper limit to the number of refugees who can come to germany. chancellor merkel said the only way to reduce the number is by tackling the reasons why people are fleeing to europe. she said germany must work cooperatively to solve the problem.

india's prime was greeted like a rock star in the u.k. as he addressed a huge crowd. he was introduced by prime minister david cameron. earlier, he met with queen elizabeth at buckingham palace. the visit by a hindu nationalist has prompted demonstrations. protesters say he has failed to stop growing religious intolerance and violence in india, including the lynching of muslims for allegedly eating beef. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. back to you. scarlet: thank you. let's get a quick recap on how u.s. markets closed. it was another down day in a down week for the major indexes. the s&p 500 closing at three-we close. the retail sales number for october was disappointing. you add that to the slowing

credit growth numbers in china and oversupply of oil, it was a risk off-season for the financial markets this week. joe: it was not just stocks. it was commodities, credit. spreads for some of the highly holding stuff getting back to where they were in early october. pretty ugly across the board. alix: is it viable yet -- is it viable yet is there more shakeup to come? instructive to look at key indicators. we had major indicators this week. on wednesday, the s&p 500 fell to the 200 day moving average. that is the yellow line. today, it dipped below the 100-day moving average, the green line. the next level of support is the short-term trendline, the 50-day moving average, roughly at 2007 in terms of the index level. we talked to chris earlier.

the u.s. stock market is in a tough spot. there are seasonal tailwinds this time of year, but they were probably pulled forward given what happened in october with the big rally. if we are going to sustain improvement, the 50-day average needs to hold. joe: you can buy the debt. we saw in august and september how fast the selling can emerge. you talked about the increased volatility of volatility itself. you can buy something and next thing you know you are getting crushed. alix: the vix is over 20. it is back on the up. that happened in a matter of days. that was a huge shift. joe: one of the big questions is, are we going to see signs of inflation? goldman had a call earlier this week predicting health care would start to be an upwards force on inflation. iflesale inflation today, you look at healthcare services, we got the strongest month over month number since summer of last year.

it is a noisy thing. maybe there are signs there is one area that had been muted in terms of inflation that is starting to pick up. alix: you need these signals when you continue to have commodities fall off a cliff. joe: headline inflation is obviously gone. alix: you need the non-transitory items to rise. joe: joseph lupton is a senior economist at j.p. morgan. he said fears about global deflation are overblown. all the deflation talk is garbage. why do you think it is not as much of a thing to worry about and inflation will pick up next year? >> i think there is a large impulse working through the system that is coming from commodity prices. over a year ago, and line inflation rates have fallen about a percentage point in line with the huge collapse in commodity prices. that is a pretty easy call to say you are going to start to see things bottoming. we think they are bottoming in

september-october. those over a year, inflation rates should start moving up with significantly. at the global level, a percentage point over the coming year. commodity fluctuations are driving a big part of the headline numbers. i think they are part of the fear. i don't want to be so dismissive of the underlying fears of deflation or disinflation, but the big moves are a commodity story unless we are talking about another 40% collapse in the price of oil. i think that is going to start to move out of the system. joe: you can see going back several years, it has been all about the commodity index. even pretty well accepted, people who buy into the disinflation concerns, that headline inflation thanks to the base effects are going to move up because we are unlikely to get another 40% collapse in oil. what really matters is core inflation in terms of what is driving things, what central banks are looking at.

what are the prospects with core inflation around the world? >> at the nitty-gritty level, you touched on one of them a second ago in the u.s. with medical care prices starting to move up. that is a sign core inflation is going to move up a little bit in the u.s. more broadly, it is a story of demand fundamentals. for the developed markets, the u.s., the u.k., japan, we have been running above potential growth. fees are closing the negative output gaps. lack is being absorbed. eventually should see that pass through and the core inflation rates. core inflation rates have been drifting up slowly. they have not been catching much attention because the headline numbers have been so impressive to the downside. but you are seeing core inflation in the u.s. near fed targets of about 1.9%. core inflation in euro areas drifting up a little bit. they are low around 1% but taking up. watching those over the coming

year is what we are going to want to be watching as the headline numbers converge to those cores. joe: what is the market getting wrong? if you look at market-based measures, inflation expectations and so forth, it is all about commodities and so forth. is the market getting the story wrong? is something going to happen in the next year year that will take a lot of people by surprise? >> far be it for me to second-guess the market. five-yeare idea that forward-looking inflationary expectations tracks the year ago numbers on commodity prices as closely as it does, does raise eyebrows of what the market is looking at. again, i don't want to be too dismissive. i think there are legitimate concerns. the risks around china, emerging markets more broadly with the credit bubble. these are legitimate concerns. the degree to which that is going to spill over into a weaker developed market and weaker u.s. economy and the

feather will have to stay on hold, is disinflation concerns are real. and don't think they are missing the story in that regard. joe: in the earlier segment, we were talking about the university of michigan report. consumer expectations of inflation over 10 years have fallen to the lowest level since 2003. the work in research you have done, do these consumer expectations have any particular predictive or economic value? should we kind of ignore them? >> i don't think you want to ignore any of these. as the fed says, they will look at anything they can get their hands on to give some inkling of inflation expectations. the michigan survey is one of them. the survey of professional forecasters is another. looking at lack movements in core inflation is something to be watching. these are the toolkit the fed is watching. the move down in the michigan number was striking. as you probably know, this is kind of a low point. it is a big move we have seen. i think it is related to the

fears around the tail risks, with china devaluation in august raised a lot of headlines. this is a survey of people reading the newspapers, kind of mom and pop, middle america. in the story of disinflation percolates through. i think if a recall is right iat growth is picking up -- think if our call is right that growth is picking up, the labor market is doing well, we are starting to see wage inflation, i think you will see that turnaround. joe: joseph lupton at j.p. morgan, thank you for joining us. scarlet: want to go back to the breaking news we have been tracking anna perez. athletes -- at least 18 people are confirmed dead. we reported earlier there were two of incidents. there may now be three incidents that occurred. there was an explosion at the stadium a germany-france soccer match with local television citing several dead there.

was also a shooting in a restaurant in the 10th district in paris. we are reporting separately there was another incident as well. i will have more details as i get it. the french president was reportedly removed by security services from the stadium. alix: a little more color on the shooting in the restaurant. the a.p. is reporting the restaurant is in the same neighborhood as the charlie hebdo shootings we saw before, so that is something to keep in mind. bank and hasright two of the busiest train terminals in europe. there is also a lot of activity in that paris as well. i should also point out france has heightened security over the past be weeks due to a global climate conference in just two weeks. this sort of coming right before that. scarlet: there appears to be a hostage situation underway. we are not sure if this is at the restaurant, bar, or stadium.

this is according to local television reports which site police. there is a hostage situation underway in paris following grenade explosions, some kind of explosion at the stadium, as well as a shoot out in a restaurant. there was a france versus germany match taking place. the president of france was removed from the stadium for security reasons. alix: we will be monitoring these headlines closely. where going to take a quick break. we will be right back.

with ourwe continue live coverage of what is happening in paris right now. there was an explosion at the piers stadium north of paris. there was also a shoot out in a restaurant.

there are at least 18 dead in multiple attacks according to the a.p. which site local police. more context has on this. we are continuing to follow several news sources. we are following the associated press. there were reports of bombings near a bar and perhaps either in or near the stadium. there were reports french president francois hollande was on site, but that he was taken away from the site. that stadium is now in lock down. i scarlet mentioned, the death is about 18. an untold number of people have been wounded. there were late reports from the associated press of there being a hostage situation as well. whoever is responsible for the shooting, the authorities do not know, this situation as you can well imagine is very fluid. it happened in central paris.

from reports we are receiving, it happened in a very popular area of central paris around the mall. the death toll is 18. untold numbers are 100. we are hearing from the associated press there is a hostage situation as well. understand, most of the carter's took place in a restaurant. an untold number of shooters entered a restaurant with what is described as automatic rifles, russian kalashnikov rifles, and began shooting. deaths not all of the are believed to have taken place inside the restaurant. there was a bombing at a bar not far from the restaurant as well. also bombings took place either inside or outside the soccer stadium. those are the facts as we know them now. we do not know who is responsible for this violence. there has been so far no claim of responsibility.

france has taken a lead in europe in the fight against isis, islamic state, with the french president taking the lead on this. this of course after the horrific shooting at the magazine "charlie hebdo." since then, french officials have taken the lead in europe in trying to combat islamic extremism. france, according to officials there, knowing they have been a target, that there have been threats made that the fight would be taken on french soil because france decided to take the lead in europe on the fight against islamic state. we will continue to follow this and bring you more developments as soon as we get them. back over to you. scarlet: thank you, mark crumpton. you are looking at live photos from paris. excuse me, this is not live. this was taped earlier. it gives you a sense of the chaos in paris. alix, you were talking earlier

about how one of the incidents took place a couple of hundred yards from the former offices of "charlie hebdo." the location -- alix: is something to note we would say. it is hard to make conclusions because there is so much we do not know. we do know according to the a.p. that the restaurant hit is in the same neighborhood as the "charlie hebdo" offices on the right bank of the sein. it is home to two of the busiest train lines in europe. a lot of traffic and people. this would have been around 10:00 at night as well. locationng to note the of this one shooting, not the others we have spoken about. scarlet: joe you were looking on twitter to see updates. one of the explosions was at the stadium in paris where there was a soccer match between france and germany. joe: none of this is confirmed

yet. that was in the middle of the soccer match. it was apparently a friendly match, so it was not a competition match. right now, no one has confirmed beyond the 18 dead. people are talking about the chaos in paris. you can see that in the images. alix: i should point out france has in recent weeks heightened security measures because of the global comet -- climate conference in about two weeks. that is another context for you. we will keep you updated on these headlines as they cross. we will be back in a few minutes. ♪

shot you are looking at a of paris and we have been hearing reports of three attacks . we are unclear if they are

related. ofre is one shooting we know according to the associated press and some kind of bombing or explosion outside the stadium. report: there is a crossing the bloomberg terminal the french president is at the interior ministry. he was reportedly at the soccer match between france and germany at the stadium, but he was whisked away when the reports of the explosion occurred. we now know he is at the interior ministry. he is presumably safe as well. mark crumpton has been tracking all the headlines. mark, what more can you tell us? mark: scarlet, i'm looking at my bloomberg terminal. the associated press is walking back the number of fatalities. at first, it was 18. now they are saying 11 people killed following explosions and the shootout at the paris restaurant. the a.p. reporting multiple acts of violence in and around

france's capital city took place. afp citing the police, the french wire service, is saying hostages were taken at the concert hall in paris. separately, the two explosions were heard from you paris stadium during the france-germany football match you mentioned. still don't know whether the incidents were related. according to police officials speaking on the condition of anonymity. again, we are hearing from the associated press the death toll killed in shootouts and other violence in and around the city of paris. mentioning moments ago, it is interesting some of this violence was taking place near the offices of "charlie hebdo." that is where the carnage took place where a gunman walked in and killed some staff members. france was put on alert at that time. french president francois hollande taking the opportunity to say france would not be cowed

by this violence and france would take the lead as it tries to track down islamic state and extremists in paris. back over to you. scarlet: mark crumpton, thank you so much. we will continue to monitor these headlines. the death count has been changed. that now at least 11 perished in the shootout and other explosions around paris. we will have more coverage when we return. ♪

betty: we are -- scarlet: we are continuing our coverage of the shootings and explosions in paris. you are looking at video from paris where this evening there were separate shootouts and an explosion in paris and outside paris where at least 11 people have been killed according to

the associated press. mark crumpton has more details. mark: we are hearing reports of more violence around the city of paris. police reporting those shootouts and at least two restaurants and at least two explosions have been heard near the stadium. there was a soccer match going on between france and germany. the french president francois hollande was in attendance. we are hearing reports he was evacuated and taken to the interior ministry. again, the death count we have so far is 11 people dead. unded. number wo we are hearing reports of hostage situations in and around paris. scarlet: thank you. we keep getting updated numbers. associated press is now reporting 26 dead in this past violence. separate incidents. there's hostage-taking a as well. at least 26 perished in shootouts and explosions.

one is close to the old headquarters of "charlie hebdo," where france saw a shoot and hostage-taking earlier this year in january 2015. alix: it looks like we are getting a response from david cameron on twitter. he is saying i'm shocked by the events in paris tonight. our thoughts and prayers are with the french people. we will do whatever we can to help. scarlet: the french president was rtedlyt the soccer match, a match between germany and france. he was taken on the stadium when the explosions occurred. he is now at the interior ministry, away from the violence. alix: to put this into perspective, it was in january the "charlie hebdo" attack occurred were 12 people died. part of the attack today was in the same area as the "charlie hebdo" headquarters. the restaurant was in the same neighborhood. it is on the right bank of the seine.

this is one of the busiest areas for europe with two of the main train lines. you have to note that connection. this is something france has been struggling with the last year. scarlet: everyone is reluctant to connect the events. this, they had not said whether this was related to terrorism. as the death toll rises, you start to wonder given the location. alix: we keep getting updated numbers from the afp saying 15 died in attacks a concert hall, a theater, and three died near the stadium. appearsnot include it any that may have died from the restaurant shooting. that is according to the afp. 15 died in the attack at a concert hall. three near the stadium. we are unclear as to how many from the restaurant. scarlet: mark crumpton, you have been following these headlines.

you are telling us what they used, rifles? mark: when this story was breaking maybe 45 minutes ago, we heard the gunmen who entered the restaurant in paris used russian rifles, kalashnikov rifles. the authorities there have not determined how many gunmen were there or if they were cornered by police, whether or not there was a shootout or whether the gunmen just entered the restaurant and started opening fire. this is a dreaded scenario that dreading foren months since the "charlie hebdo" attack in january. it had gotten to the point where the french president francois hollande had taken a hard line against extremism in the face of threats from islamic state and other groups saying france would pay for its help with