the french president pushes for a new alliance. we are live in paris and brussels with the latest. asian stocks held on the rally in the u.s.. markets showial resilience in the face of the paris attacks. pound deal.n we speak to the company ceo later in the program. ecb executive board member says

the central bank could lose credibility if inflation goals slip. welcome to bloomberg television. anna edwards. deadliest attacks in paris continue to make the headlines. belgian is where the plot is said to have hatched. wasfootball friendly canceled with spain. the french president called on u.s. and russia to form a new alliance. we will have the latest from guy johnson in a moment. with hansbrussels

nichols. what is the mood like there this morning? paris lastg in from night, security is higher than usual. if you have ever been here for a summit, there is quite a bit of security around the eu corner. that has been extended through the train station and town. here is what we know. the big raid they carried out yesterday led to no arrests. there were some reports that saleh abdeslam was captured. that is not the case. the and to making a couple of the, but that was seventh they detained earlier in the weekend. five of those seven have been released. the football match against belgium has been postponed. the football association is for heightened security

reasons it is best not to go on. atre is still a suspect large. we don't know where that suspect is. we know that suspect potentially crossed into belgium. we heard from his brother yesterday and this is what his brother had to say about the two terrorist attacks committed from his family. whymmed: i cannot tell you or how they did what they did. we are at open-minded family and have never had a problem with justice. because of the tragedy, my parents are in shock and don't quite realize what has happened. hans: yesterday, the prime he hasr of belgium said not ruled out closing problematic mosques. it is a concern. they have had problems for it while now. there are no easy solutions. anna?

mark: speaking of the broad implications, many countries are tightening their borders. merkel is sustaining her liberal policy. heard of any not challengers within her own party. most of the criticism has been from outside the cdu, but it is a problem for angela merkel that one of the suspected terrorist came through greece, macedonia, and then austria. that is a challenge and a problem for angela merkel. if it turns that the migrants are coming into europe through this open door policy and committing atrocities, that is a conversation that will start to take place in berlin and across your money. guy in paris.t to what is the latest on the investigations being carried out

in paris? they are trying to piece together exactly what happened and how this process ultimately ended up with the attacks friday night. the forensic examination that is ongoing and will continue for many days and weeks. security will remain tight for quite some time. we heard from the president yesterday. he called a state of emergency that will last for at least three months. the paris hands will have to get used to a higher level -- the parisians will have to get used to a higher level of the security. for saleh abdeslam continues. they think this lot was planned in syria, organized in brussels, and carried out in france. are looking for, abdelhamid abaaoud, is a said to have put the entire thing

together. authorities in europe and the are aiding.s many someone h unanswered questions. the french president gave a fairly defined speech in parliament yesterday. implications of that? some of the commerce agents yesterday suggested he was using that phraseology very advisedly, fully aware of the implications. guy: yeah, i think he is using those words advisedly. the president of the united states tried to draw a line, talking about the idea that the is is not a state.

think there is a little subtlety involved. the nato line is one of that will be explored carefully. they call to arms that was delivered yesterday, mr. hollan de is talking about that single purpose and structure he is working for and who he will call in. the call to arms he delivered was very clear. we need more support to all andhe fighters against isis that is what we are doing and france. gather need to together all of the people who are able to fight against the terrorist army within a single, united coalition. we are working to that end. it is within that approach that i will meet president putin and president obama and ask to join

forces. french will be spending a lot of money both on the armyies, and the security. fund remains somewhat of an open question. tos economy is struggling deliver at this point in time. he said security is more important than stability. it will be interesting to see how that works out as well. the french have been under a large mother pressure to reduce spending. now they will be increasing it. back to you. anna: thank you very much. et's see how u.s. markets have reacted to the terror attacks. we have more from new york. markets have near session highs in the first trading day after the deadly attacks. the s&p and dow's other biggest

jump in three weeks. since 9/11, there is proof that markets are becoming more resilient to terrorism. 2% and then it fell 1.8%. stocks rallied. also, after the attacks, defense sector stocks rallied as the french president called for more security funds. higher on the potential for more surveillance crafts, fighter jets, and missiles. travel stocks ended lower. starwood fell. ais after various announced $12.2 billion deal to buy the company to make the world's biggest hotel group. online looking companies also felt of the travel pain. france was the most visited country and the world.

the fear is tourist will hold off on their travel plans after the attacks. anna: that is how things performed in the united states. a fairly strong session with many of those markets up by 1%. i have a picture on the terminal that shows what we see in asian equity markets. you can see the selloff in the markets yesterday. this is the agent index, bouncing back -- this is the asia index, bouncing back. me give yout's another graphical representation of what is happening in the markets. time, we at this showed you this screen, which was full of red. today we have a little bit of red and it comes from sri lanka. the rest of the markets are advancing today, a gain rebounding from that six week low.

i guess you could say that today, we see resilience in the market. vote of confidence among global investors over this terrible terrorist threat. take a look at what is happening. the hang seng is advancing 2% today. asia, you canast see healthy gains. 1.5% advancement with jakarta. we are seeing a nice advance for the index. look what is happening across asset classes. the safe haven that empowered the yesterday's trade in commodities, today we see gold lower. trading at $1082 an ounce there. we have lingering concern about the chinese growth story. today.is down 1.4% quickly checking in on the yen.

10 of 1$ move at 2/ % move there. investors are buying these stocks again. qantas, 6% advance. a nice move for shareholders there. we will send it back to you in london. anna: what a difference a day makes. in the u.k., david cameron has announced an extra 2 billion pounds will be spent on special forces to fight terrorism. europeansecretary says countries must work together to tackle the terror threat. >> it is imperative that europe pulls together to defeat this thread. france is one of our oldest allies and we work with them closely on matters of national

security and counterterrorism. i spoke to my french counterpart to offer our deepest condolences to france and to make clear that the u.k. stands ready to provide any additional support and assistance. anna: let's bring kristin scholz into the conversation. rest ofs us for the this hour. great to have you on the program. give us some context around what we saw friday and how this is impacting the global story. couldlieve that if this have a much more material impact on any change in european and u.s. strategy. at this time, it is different. we saw a show of solidarity, but not much change in western policy in terms of is policy or to strategy. it seemed more of a one off.

the attackers did not seem closely connected to is. and the terms of economic impact, there was not that much lasting impact. this time, it is an attack on everyone indiscriminate. it looks much more organized and more closely connected, for the time being. it looks much more closely connected to what is going on in syria directly. there is a shift in a strategy from isis, extending their reach outside. we have seen the attacks in just last week, and now, in paris. everyone will be wondering, what is next? that could affect more people. that could affect travel and tourism. it will require some kind of response, which we have already seen a some allusion to. anna: we have seen that from france in particular.

david cameron is talking about more money to be spent on security. the french president spoke about how security was more important. what does this mean for the money spent on the security bike european governments? kristin: we will see more money spent on security. not just money. existing resources. the open border policy is an issue and europe. deeperwe go into a much intervention in syria, i don't see the budgetary impact to make 1%.o the 1/10 of it is the kind of signal we have to send this point. it is not the fiscal rules that matter. it is security that does. anna: we will talk about angela

merkel later in the hour. in terms of the agreement, you referenced the open border policy. you think it will live on after the attacks? kristin: moore police checks are one of the things you would want to do after this. whether these need to be at borders or not, is a second question. is to make itdea easy for normal people to travel between countries. it is not designed to make it easy for terrorists to do that. the emergency procedures may be invoked more often, but i think the principle will stiastay. the paris story, we have plenty on the economic agenda today. a.m. time, we will have inflation data out of the u.k. then, we get to the german zew

survery. in the u.s., we will get inflation data. just after 7:00 u.k. time, we to carolynaking mccall. we will get her opinion on the recent attacks and her thoughts on the downing of the plane over the sinai peninsula in egypt. a verythat affecting troubled business right now? stay tuned for that. up next, long-distance call. rearty global extends its ch. ♪

, you arecome back watching "countdown." here are the stories you need to know. stocks are extending their rally

resilience is a shown in the face of the paris attacks. rebounded from three days of losses. the history of terrorist attacks shows market reductions are increasingly short-lived. the french president called on the the u.s. and russia for a new alliance to destroy isis. president obama has arrived in manilla for the apec summit, where security has been tightened. thousands of police and security officers have been deployed around the city with more patrols and to spot checks for suspicious activity. o aerty global has agreed t 3.1 billion pound deal. the purchase extends the reach

of liberty global's empire deeper into latin america and the caribbean's. tell us more about the deal. >> this is liberty global agreeing to buy cable and wireless in a stock and cash transaction valued at $5.3 billion. the shareholders will get a special three pence a share dividend. as part of the deal, liberty global will take on cbc's net debt. the chairman of liberty global nokno stranger -- is stranger to deals. he has amassed cable companies across europe and it looks he is willing to do the same across latin america. they received half of their revenue from the caribbean and

latin america. rse, one of the big questions is, what does this mean for any talks between liberty global and vodafone? we know the sides ended their negotiations in a september and it does same this dims the prospect of a revival of talks between them. vodafone assets for attractive, but cited challenges between the corporate aspects of the companies. you get the would banana out of a jar file getting your hand out at the same time? he will now turn his attention to content assets in europe, such as itv. anna: that storybook me up this morning. we will speak to cable and

wireless in an exclusive :15 london time. the big question for investors is, will the fed tighten as the ecb eases. jonathan ferro spoke to peter praet. your area will not reach the level it had in 2008 for its quarter before early next year. this is a long period of recession conditions. this is not a new situation, unfortunately. there is always a risk of the inflationng of

expectations. we still have a couple of weeks before the meeting of december to reassess the situation. we also see this european andomy with difficulties consolidating. decisionslong-term like investment not being made because of the insurgency about the future. that is always dangerous to do. we look also for the financial stability point of view. what are the risks of exuberance? beenmpact on inflation has disappointing so far. the battle is not yet finished. they will have to clarify at some point, what happens after september? you do with the assets coming to maturity? these are the sort of things which are important.

that will be the discussion in september. the reaction function depends on your assessment of the situation. markets do the reasoning. who leads who? i would turn the argument the other way. you have to absolutely make sure that your expectations remain anchored. that would complicate dramatically if markets with revised structure do not revise their inflation expectations. there is a high probability, that is true. see -- it depends on the data you have at the time. we are going to look at that. they are a number of things we will look at. it is holistic. it is not only looking at pmi's or confidence indicators. it will be more holistic. i think the markets know what i mean with it.

anna: up next, terror lies in the middle east. we look at how the islamic state finances its operations. more details, when we come back. ♪ you used to sleep like a champ.

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you are watching "countdown." stocks are extending their rally in the u.s. japan, thelia to stocks have rebounded. the history of terror attacks shows market reactions are increasing. the french president has called on the u.s. and russia to forge a new alliance to destroy islamic state. the attacks that killed