issues are your brief. markets and according expect to open a low this morning as traders move away from risk assets to safe havens. let's get a terror father european equities are opening. nejra cehic: global markets were fraught both for the events on friday. in europe, european stocks the worst week in two months, eurozone gdp missed estimates and were down to concerns of a rate rise before the end of the year. lots of things plain dental a bad week for european equities last week. let's see what is happening at the open today. point equity futures lower earlier. a cac 40 not quite reacting, it is down just a 0.6 percent. some analysts are saying we can move it down as much as 2%. a more muted reaction than some

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 six-month 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 short-lived. 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: ok'd, 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 friday's 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. let's 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, that's under pressure. later today, the french president will go in front of the proletariat and ask for a three-month extension to the state of emergency and that is border controls and shutting down schengen and other countries have taken the action vis-a-vis 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 i've 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 longer-term 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 presidential 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 merkel's 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 friday's 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 26-year-old brussels born man was involved in the attack and consider him dangerous. and understandably the paris attacks are dominated the agenda of the g-20 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. let's 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%. bloomberg's 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. pio's. 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. that's 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 pre-into 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, it's 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

rolls-royce's figures and you can see a lot of businesses were reliant on long-term demand from emerging markets, things like aviation. house long, long cycles and therefore still have the follow-through 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 g-20 and talking about deficits. -- prime minister of canada arriving at g-20 in talking about deficits. we will talk to ryan at the g-20. 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 long-term bear market for emerging markets. developed markets are now catching up. a bubble bursting, an incredible burst, 10-15 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. g-20 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, spring's 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 i'm asking all here, thebig guys presidents 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 you're 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 friday's attack. 30 minutes into the trading day. let's 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 euro-dollar 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 understanding of who these attackers were. we don't know any details beyond the fact that they have been identified. sammy.ame, french police are working their way through this process, trying to get an understanding of who

was behind these attacks. clearly a number of these attackers were killed by police. a number of others or themselves up, i did find the bodies is more difficult. the first attacker being identified by one of his digits. that is the process we are going through. this is critical stuff because it is going to have an impact as the debate to develop tests as the debate develops as to what was behind this? who was behind this? and what are the applications for wider policy? where did they come from? belgium? or where they homegrown? did they come in by the migration process from syria? the difference is going to be critical in terms of how the policy story develops. from thelready heard polish interior minister making it clear he feels that osler

merkel must change her -- that angela merkel must change her immigration policy. let me bring you up to speed. some of the details we learned overnight within the last hour. we got because of the attacks that have taken place in northern syria in the city of rocca -- raqqa. hidden doests have have hit -- have hit two targets. a knee-jerk reaction you can call it. directly targeting i.s. i.s. saying that these attacks were a response to the military action that is been taken by the french in northern syria. we have also been getting details of what is been happening in the manhunt.

we are getting a full name being put forward by the french officials as to who was responsible. the focus is shifting toward brussels where we understand to vehicles.- two several people have been detained at this stage. there is a series of ongoing manhunts. one of them for this man. we should be up to show you some pictures. saw --ot so lobbed the salah.ot of the salaam the g-20 the focus of attention as well as to what is happening in turkey. g-20 meeting dominating proceedings. paris is the focus in mind at that meeting. president and obama, these two

men -- president putin and obama, these two-minute talked. their attention on what is happening in syria. the events in paris maybe focusing minds as to what happened in that region and the political process and how it moves for. body language not great, but maybe more of a meeting of minds between russia and the u.s. as to how best to proceed. we'll bring you, manus, more news as we get it. we will a series of briefings throughout the morning. we are likely to learn more as the process develops more. from me in paris, back to you. manus: every thing you need to know about the geopolitical developments. i want to bring you some breaking news headlines from that g-20 meeting.

david cameron saying a little bit earlier he would not commit to syria action without a common vote. this is something that is been focused on a great deal over the weekend. willon says that he discuss in turkey with putin. this is a step forward. rapprochement. to work, russia together. more of those headlines. we will bring them to you. let's bring in our next yes -- our next guests. he is mark farrington. thank you for joining us this morning. theurn our attention to

market reaction. we had the equity market reaction. some of the luxury stocks. we are seeing the euro decline. we do your thinking. i think the macroeconomic trends are powerful enough it will continue to be main drivers. the knee-jerk reaction was more of one you would expect. the euro yen sold out sharply from early morning. it was quickly reversed somewhat due to the worse than expected japanese gdp. in any case, the weekend's dayts will be a one or two market reaction at best. -- manus called some -- manus: somen people have been talking about the risk of recession. that you make the point

the magnitude of market is much smaller than historical test events. that is to be expected. we have grown to understand implications of these cuts. in the beginning, it was hoping so new it was hard for us to guess what it meant. now it is more of a known quantity. nonetheless painful. it is a fact of life these days. people will discount it as such. there are a number of major currency moves. one is the return to recession in japan. that is something that has set behind the overall new for this morning. the development for the canadian to them sitturn let's start with the bank of japan. surprise and reaction? don't think it is a

surprise. the world we live in is one of global demand, efficiency. we see the manufacturing sector is weak. it is carefully managing its inventory levels. we get one or two bursts of output. the story as was highlighted earlier if the draw down inventories. as long as the proper profits are -- it like they is about managing the oven flows -- overhangs that building up and we can look forward to a recovery in the next quarter. the otherus: conversation was with the south african prime minister.

this is one of the worst performing currencies on the glow. and from the perspective that if we think how is the divergence is still a liquidity issue, would you concur that a fat hike is priced in -- that a fat hike is priced in? force-out abacus specific events, you could argue the worst has been discounted. -- for south africa's specific events, you could argue the worst has been discounted. we have another year of paying goanother year of pain to through. what we should expect instead of looking at currency weakness as , in this case, the currency is doing all of the work. we are going to have a super cycle low. as a result, commodity export countries should see their currencies had historical lows.

we're using the 1997 analog. a good example of where at least another 10% on the developed commodity currencies like the canadian dollar. manus: behind those headlines , which will be the worst performing if not all are equal? where will the worst affected be? mark: the first -- the worst effect will be a country who is suffering for more than one of these problems. just suffering from more than one of these problems. suffering from more than one of these problems. result is a country which is not a pure commodity exporter. it is not as open but it has a

political scandal to deal with. it has a leverage issue to deal with. it has a number of other negatives that will result in a bearish outcome for their economy. australia, canada, norway and south africa are very weak currency should be seen as a positive. manus: thank you for your interpretation of markets. that is mark farrington join us -- joining us. coming up next, how friday's attacks are affecting travel. airline industries. stay with on the move for everything you need to know. ♪

"on the move." manus: thiss is -- is manus cranny. and this is "on the move." people delivering flowers outside of one of the .estaurants a site of terror and destruction in paris.

those are the images of paris this monday morning. three days of mourning. an active war is how the president of france referred to the incidences in multiple tax --ng murders at attacks across paris on friday evening. these are flowers that have been growing. travelers in terms of what they can expect in their preparedness airlineel in rail and travel. let's have a look at some of the headlines we are getting from francis prime minister. some events. -- climate change will be this is according to rtl. the climate change is a huge global gathering. expected to happen in paris in a

few weeks. it is expected to be some talks to continue. the talks continue. they will continue. there will maybe some capitalization some cancellation. -- some cancellation. some additional security will be needed. housing going to impact markets and the reality of life. for more, we're joined by kerry london. she joins me here in the studio. -- let me start with you. security impact for us. >> we are going to be seeing a tightening of security at airports. charles de gaulle has been telling passengers to expect delays. you saw over the weekend some nervousness. wasaw gallic airport, it

evacuated. that terminal was closed for seven and a half hours. -- 7.5 hours. twitter alarm calls that airport to be evacuated. manus: those delays come back to security and issues around our passports and our border. let's turn our attention to jones hayden. the reality is a reassertion quads i border control. control.border >> you already saw that france alonginstituted controls its borders after these atrocities on friday night. the thing is other countries had already tightened their borders as a reaction to the refugee

crisis that is also swarming europe. you have these two elements coming together. it seems it is going to be pushing the whole system. people have already been calling for a rethink about how the system works. the major eu players, mr. juncker have defended the system and it is just a matter of an blue mentation. we need to have stronger control at the borders. the whole thing is coming into question. manus: jones hayden in brussels. terry lundgren in london. .his is prime minister cameron the u.k. and russia should work together. the upcoming major global events in paris may have some cancellations. the ramifications are substantial. we discussed this all after a very short break. ♪

discussed this all after a very short break. ♪

manus: welcome back to bloomberg television. let's get out to guy johnson. we are seeing prime minister vowels telling about the reality of paris dealing with the climate change conference coming up. they are going to be

cancellations. a big sporting event here in the u.k. what is the biggest highlight of the morning for you in terms of the news flow? guy: what we have seen is the response to the attacks from the french authorities, bombing targets in northern syria. 12 jets taking part in that rate. friends waking up active business. -- france waking up back to business. ofcussing the idea that some these events will be canceled. the main event will go on. we see the president going in front of parliamentarians later on talking about the state of emergency could be extended for three months. we are going to see more and more events being canceled. we're going to see receptions in place. are going to see restrictions in place. you look the stocks that are down. look at the fact that they are trading stocks lower in the travel sector, the luxury

sector. it is going to be those areas that are going to be suffer. this is going to have a meaningful impact into fiscal policy later down the road as we begin to understand that maybe this does have an economic impact. maybe not the obvious one. life is going to be that harder manus. manus: a little more breaking news. prosecutors are seeing in paris, to more of the killed terrorist have been identified. med i'll mohammed. a little more clarity around the names of the terrorist. identify more terrorist will continue. this is breaking news headlines coming from paris this is it for on the move. alongl resume programming with guy. stay with bloomberg news for

everything in regards to paris here on bloomberg. ♪

francine: a fight to safety. global markets react to friday's terror attacks in paris. manus: paris -- france takes the fight. french police carry out a series of raids across the country. francine: return to a session. japan's gdp contracts i'm more than expected. what next that go -- what next? ♪ you are watching bloomberg tv live from our european headquarters. i am francine