francine: whatever it takes. mario draghi says he will do what is necessary to raise inflation as quickly. the euro falls on his comments. manus: abn amro raises 3.3 billion euros and it returns to private ownership. shares are trading above the ipo prices. francine: the challenge. the french prime minister once the sing in system could collapse. -- the sink -- the sing in system could collapse. ♪ francine: welcome to the pulse.

i am francine lacqua. manus: i am manus cranny. mario draghi says the ecb will "do what it must." where have we heard that before echo "do what it must to raise inflation quickly." francine: downside risks have increased. his remarks are the ones we heard from governing council members. manus: hans nichols is in frankfurt. we just finished hearing that speech. echoing what he heard -- what he said a year ago. this time it is about inflation. hans: he is concerned about inflation not rising high enough. the risks are manifest. the most important thing we heard was him talking about what he may do on deposit rates, signaling their level they can

empower an increase the bang for the buck that you can get for asset purchases. a pretty strong hint that you are going to get something on the deposit rate. confidence." ius circled it because i was looking for evidence on what he could be confident. he didn't give much confidence -- he didn't give much reason for any confidence. we are going to have the slowest global growth this year since 2009. he talked about the length of recovery for this recession. in europe, he expects it to be anyone quarters of recovery. it took 14 quarters in the u.s. they gives you an indication. -- that gives you an indication. all in all, he is signaling he is good to do more. we saw the euro drop.

my big question is why did not i foresee this and transferring euros into dollars ahead of time. that would probably be unethical and inappropriate. mario draghi is sending the euro lower. guise? y confident.utiousl what other names are we looking at? hans: there's going to be discussion debate on capital market union. you need to have stronger capital market union if you want to have increased lending and more lending going out to businesses. he talked about quantitative easing on what it does on easing liquidity. he says quantitative easing is working in the direction that we want. he didn't say working in the magnitude that they want. now comes time for the calibration. like he is good to

turn up the hose and put a little more volume out there and then he can get the desired result. he criticized critics of quantitative easing. we will see more quantitative easing, more on the deposit rate . maybe a little more on capital markets. what we are expecting, he did not directly mention paris and what the attacks there could do to confidence levels. what it could do to overall growth. what it could do to risks it this is more macro. more economic than medical. francine? manus? manus: hans, thank you very much. let's bring into the conversation and introduce our next guest. cluse, chief european economist at ubs. listing to draghi, i have to correct myself. it was july 2012 when draghi

said he would do whatever it takes to protect the euro. today he is talking about inflation. what if you make of this? you're talking but the wickets global recovery since 2011. months,: over the last their risks of china have increased. commodity prices are lower. this inflationary environment will be with us longer than anticipated. that means the ecb is under pressure to do more. francine: do more in december? something atl do the first opportunity. reinhard: the ecb conference was clear. we had very strong guidance that more policy action would come on the third of december. since then we have had a number of speeches. this morning speech results there is a clear guidance that more policy accommodation is coming. manus: the euro-dollar responded

quickly. when i look at the bond market, there is less dramatic reaction. already draghi is putting foot percent of the german bond yields. the markets are almost -- who is pushing who? the bond markets are really stretching out for a more significant drop in the deposit rate. what are you looking for? reinhard: our basic scenario is on the third of december we would get 10 basis points cut in the deposit rate. the ecb will decide on that day to lengthen the maturity of the quantitative easing program by three to six months. it is clear the ecb has a lot more screws and levers at its disposal. rhinehart, we've got some sad news because we know that that -- we understand there is another attack and molly. -- attack in mali. there is an attack at the

radisson hotel where many foreigners are probably staying. asp, -- the operation is ongoing. the attackers are in the hotel and have automatic weapons. when you look at this horrific human story, it is difficult to put numbers. the first instinct is not to do so. as there is so much security concern, as the intelligence and europe comes under scrutiny, how difficult is it to understand what europe will become? will talk about recovery. the worst attacks and the more we have, people fear. does it underline the chances of --overy tackle ryan: recovery? reinhard: it is ok to say that the risks -- consumer sentiment

pulled back a bit. like to noteuld that the stimulus we have in the pipeline in europe is enormous. we have accommodated monetary policy. we have low oil prices. we have fiscal austerity. there is still a lot of stimulus in the pipeline. powers the european recovery ahead. mecca 50% below target. manus: 50% below target. reinhard: oil and commodity prices be solo means more purchase being so low means more purchase being in people's pockets. cluse, thanknhard you so much. there is a gunman attacking at a radisson hotel and molly -- and

mali.-- in you can find out if the people you love are safe. manus: 170 hostages is said to have been taken. we'll bring you to -- will bring it to our viewers. -- caroline, we had news about with actually killed. do we have any progress in this investigation? thisine: i am in front of tree where this operation took place in the early hours of the morning. of delhi meet -- he blew himself up over the he was killed by the police

involved in this operation. he was seenmation, on the video surveillance camera at the two station, east of paris on friday night around 10:00 p.m. at that time the attacks on the but the klein concert venue was taking place. the police investigating whether the two possibilities is he participated in the attacks and then took the cube -- the tube. he was the mastermind behind the attacks but did not participate. eight people were arrested and are still being questioned. police can keep them for questioning for up to six days. the police is also checking the dna samples. body.could be a second

a possible female suicide bomber . the police are investigating whether there could be a third body in this flat. the investigation continues into belgium. nine people working -- were arrested in connection to one of the suicide bombers. they promised her vows yesterday on national television saying that we do not know how he managed to come back to france. kerley, think he so much .- caroline, thank you so much an update on some of these raking headlines from mali. francine: we have extreme he said in his good a gun battle is still taking place at the radisson hotel in the malian capital. violenceunged into

after a two happened in 2012. we understand there are no more is a large number of casualties. the situation is ongoing. don't know if the operation has ended. we will keep updating you on this. we'll see you in a couple of minutes.

manus: will come back to "the pulse."

we are live on bloomberg tv, radio and striving life -- streaming live on the radio. francine: it was just a few weeks away of -- from the start of a price collapse. it had profound applications for the global economy you'd manus: as we head toward 2016. what does an oil price of near $45 mean for the world? oil --telligence senior we also have the ubs chief economist, reinhard cluse. philip that's come to you. your outlook for 2016, are the oil companies talking about $60? we just traded through $40 in brent. what is going to be the scene for 2016? it is still about unconstrained supply.

>> how much oil will come in from iran. how much how things will develop in libya. how russia will react. what will shale do. shale is the new stability in the oil market. it is a structural change. something that opec cannot really react to. opec was made for temporary shocks. shocks, theyegic were able to balance the markets quite well here it -- quite well. for a long-term strategic structural change to the oil supply like shale, opec has little to conjure to them. francine: what about the north sea? >> the north sea is one of the most extensive places to produce oil from. should the prices stay at this level for the next year or even

longer, the north sea is going to be in trouble. to bel places is going places where it is going to be all right. some legacy production will be at risk. medical let's bring human, -- manus: let's bring you in. lower cost in terms of filling in the car. economically, this place to draw the, doesn't? thehard: we should say in context of europe, lower oil prices is a good thing. -- this helps the recovery. in the current content, it is a mixed blessing because it will mean the recovery in inflation will be further delayed. this forces the ecb to do more. it is a headache. francine: they need to figure out, they are looking at the present oil to understand whether it is inflation. this will depend on the prolonged or not prolonged glut. gut -- supply

is it more difficult to predict oil prices now? philipp: we have our broad rules of thumb. forecasting oil prices, i leave this to the expert. geopolitical environment seems to very complicated. manus: one of the big events that francine is going to be attending in paris is climate change. have inact can that terms of the energy market? philipp: not immediately, in the midterm, there could be some kind of legislation that would make it very expensive to use fossil fuels. al, butking about co

also oil will be affected by that. there will be an emphasis on gas. yes will be more looked at in the future. will be more looked at in the future. it is oil that is already developed right now. it may never be produced and that there will be a lasting supply gut -- supply glut. manus: the look -- philipp, thank you. up to 170 hostages in a hotel in capital. these attacks are all going according to the united nations. francine: mali was plunged into violence after a coup in 2012. the attack is ongoing. we will have plenty more on

that. we will monitor the situation and bring you up-to-date.

francine: welcome back to "the pulse." tablet, youryour phone and bloomberg.com. manus: abn amro has raised 3.3 billion euros in its ipo. the dutch government recoup some of the funds it spent bailing of the banks. with the details, it it is rude

david. -- ruth david. we also have reinhard cluse. this is one of those release moments. it is a business that came from the phoenix of the fire. we are back into the private markets. the dutch must be relieved. the stock up this morning. >> the bigs financial deal. that's the biggest financial deal. and the next year, the government had to bail them out. the biggest banking ipo since the financial crisis. the stock is done pretty well. it is up 3% in the market where they euro stocks market is down. the government must be heaving a sigh of relief. one of the key issues for the government was they did not want then cost too much because they would be accused of putting too much money on the paper,

write? francine: this is great. this is a great financial crisis story. this is closing a chapter because it was directly linked to the financial crisis. ruth: if you can draw from this. also investors, this is not a market where investors are putting money on the table for everything. market, therepo have been a few deals that have not done well here they are going to look it abn but they are going to draw their own conclusions based on the model. one of the people i was speaking to says it like the fact that it is simple. it is a's small bank -- it is a small bank. an interesting comment as we bring it back to economics. if another process is velocity to me, i don't know what i'm going to do. getting the ax to lend, they have more -- getting the banks -- simple five banking

and getting banks back to is a part of the raison d'etre. say it was aould basis, nation of supply and demand problems. with the cleanup work that the ecb is doing, i think the supply problems are being pushed into the background. the lack of demand remains the binding constraint good for that, what we need is a lot more prolonged recovery in euro. francine: when you look at these new banks, what does that tell us about eu versus u.s.? a concerned that the banking system will have an impact on the macro stuff? most experts would agree that the u.s. has been

faster in addressing its banking sector. we need more time. asre moving forward but not fast as everyone would like to see it but we are moving in the right direction. mental the japanese had a large -- manus: the japanese had a large barnstorm a few school. give us a sense of the ideal market this year. ferrari which is been doing extremely well. reduce thebuyers size of the deal. it is not an easy market for ipo's right now. it is not a market where you can get everything done. this quarter has been tricky. you are probably going to see some more volatility. david, europeans

chief economist. manus: coming up in the next part of the pulse, where the to recap everything coming from mali.

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we'll credit your account $20. 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. francine: two gunman had taken 170 people hostages during an attack on the hotel radisson in the malian capital. we spoke to the consulate of france and the u.s. on the ground. there are troops at the scene. the attack is ongoing. understand,g we because at the moment, the situation is fluid and we are trying to figure out what is

going on. molly was plunged into violence after a military coup in 2012. that was back in 2012. there are over 1000 french troops in mali. they are urgent -- urging staff and citizens to shelter anywhere they can find a place to shelter. the shooting situation at the hotel isel -- the mali ongoing. in march, there was violence that killed five people. we have 1000 troops there. onto the terror attacks in paris. he has told the -- the prime minister has told his people to gear up for a long fight against terrorism.

>> this war will be long. manus: he is calling for tighter security. carolyn, it has been a week. what else did he say? carolyn: he said we do not know the attacker managed to escape all kinds of control at the borders. he said we do not know the of the attacker.

we are still looking for him. this is putting at stake the -- that could collapse. within the eu, especially the ones neighboring , do not take responsibility. the prime minister, who did not rule out further terrorist danger he mentioned the of possible chemical attacks. francine: there are so many questions on why intelligence failed so badly. carolyn: belgian authorities began tracking abdelhamid abaaoud when he was seen dragging bodies behind a truck.

back at leastcome once since january. laptop werene and found in greece, 2015. that is also where he gave an interview to the islamic state newspaper, boasting about his presence and belgium. french authorities and the interior minister said they did not receive any intelligence about his presence on french soil until monday. >> we received no information from the european countries in which he might have transited, indicating he may have reached your desk reached europe and headed to france.

carolyn: the intelligence may have come outside of the country. -- has arrived in brussels for the special summit. decisions have to be taken today. manus: thank you. francine: let's get more on the response to the attacks. from jim more hertling. when you look at the flaws in security and the intelligence

system, was there any particular country or a fact that we did not have information sharing? there are multiple police and television forces tracking guys. in france, you had -- it began under nicolas sarkozy. there is a merger of the intelligence and domestic security forces and their work bureaucratic issues there. 9/11, hadbefore questions about information sharing. now you have 28 sovereign nations. we have been talking about design flaws. --s is one that few people it was on few people's front burners. there is a massive design flaw in terms of domestic sharing. manus: many people would say the

,ery concept of free movement that was the ultimate paradigm, borderless europe. i thought the comments were double-edged in that neighbors do more because borderless europe is potentially a threat. take us through your thinking. how big a threat is a borderless europe? it is such a common part of people's lives, it is easy to underestimate how huge a change it would be. ,eople who work in geneva people who work in luxembourg, think about train travel. a train runs through belgium.

train, instead of three hours, it will become five hours. the passport checks. it would be an inconvenience, it would add cost to everyone's life. francine: we are getting news from the hostage situation in mali. we understand, from the chinese chinese may bet trapped or are trapped in the hotel. when you look at the political early to, it is too comment, but if there was a big -- chinesesidents presence there, with the president get involved? so far, he has held back. it seems like he would continue to hold back.

they have their own issues in that they are trying to deal with and their focus will remain domestic. manus: 170 have been taking. reservoir hotel -- residor hotel also confirming. stay indoors. as we get more on this breaking news story, we will bring it to you. ♪

francine: welcome back to "the pulse." sad news happening in mali. two gunman have attacked a radisson hotel in the capital city. manus: 140 hotel clients and 30 hotel staff have been taken by two gunman so far. is infrica bureau chief london and he joins us. thank you for being with us. just chatting in the break. this is an attack on france.

the french have 1000 troops there. mali is the third largest gold producer in africa. france has been there and didn't support the government has needed to repel the onslaught. they set up their base so they could push back different groups of militants. cap malibeen what has from falling apart. francine: there was an attack in march. the situation has been ongoing. what do we know about security protocol? >> this is a shift. it was the first of its kind. most of the violence had been limited to the north. this kind of attack in the middle of the capital city and west africa is a huge

change, which we do not know who is responsible here. in mali, there is al qaeda and islamic militants. force, ithe dominant is on which side in terms of these groups? >> we do not know yet. there has not been confirmation. we have seen what is happening in paris, what could happen other places, this seems to be more of the islamic state way of attacking and they have been more active in the last six to eight months in mali. francine: or does it mean for the rest of the surrounding countries? >> it is problematic. the big worry is it will spread

west and the groups may or may not be sharing information, weapons, money. you had weapons flowing, money, fighters. is a triangle, where there is a lot of poor governance, a lack of stability, politically, and a lot of weapons and cash going around. that is the big concern. will that spread to more powerful pockets where there is capital? manus: how important is the french president in mali? presence in mali? >> it is important. it became the base for west african operations.

the troops were moved over to a different mission and it became regional. there are about 3000 to 4000 troops, age run base that operates with u.s. help -- a drone base that operates with u.s. help, as well. the french are leading the way. they are doing more than the u.s. is doing, more than any other force. francine: thank you. we will update you. for the moment, there are 170 hostages. the attacks are ongoing. the u.s. embassy telling citizens to stay indoors. we will have more on that next. ♪

manus: the bundesbank president is scheduled to speak. >> we do not fight or provide information. is testing, identifying

whether there is a bubble in certain markets. try to see what are the incentives in the system. systems. misaligned francine: brendan joins us live. identifyingsay bubbles is not the task of the central bank? that got my attention, too. if you remember "minority report," they were looking for pre-crime. .er focus is on pre-bubble mario draghi just spoke. something slightly different, which is data. a massive amount of data. how do you take that and turn it

into policy? there is a new data set europe is building, which is a credit register of every transaction europe-wide. it allows you to see a picture of what is going on. how do you turn that into a flashing red light? what they are going to do is use it to figure out what it is going to be. they are not focused on managing bubbles. alan greenspan said it is hard to see a bubble when it is there. aboutre talking possibilities of bubbles before they become a problem. lot inyou squeeze a there. well done. we are turning you into a european yet, yet. -- a european man, yet. france is the ecb president

warned on low inflation. is not something we can be relaxed about. in the past, it has been a good forecaster for where inflation will stabilize. -- will receive support from the depreciation of the euro. manus: let's talk currency with our next guest, he is the head of global strategy. when you listen to mario draghi i listened to him. he talked about a tepid recovery. he is still concerned. when you hear mario draghi very dovish.ing

these guys are throwing everything they can at the exchange rate. francine: a lot of it is priced in. in terms of pricing monetary has been our argument for quite a few months. that is the reason that mario isghi knows that and that why he is talking dovish. to make sure he does not see an upward spike. they are driving a bus through expectations, saying they have tried to tell the market what they're doing, when they are doing, trying to get everyone ready for it. the market is fully priced in terms of the hike. are we at equilibrium? and thes fundamentals

momentum. as far as fundamentals are concerned, i have little doubt in mind. the dollar has created a massive more., it has priced this can carry on for a few more months. francine: what dollar level do you have? >> we have it at $1.05. they are talking very dovish. probably, we are going to see weakness going into the next year. from a fundamental perspective, we speak from our scenario.

$1.12 looking for about for the next year. manus: where does all of this stuff -- start? >> this is uncharted territory. there is no doubt about that. having said all that, next year will be extremely important. plummeting,not keep this base effect is going to wash out. seeinggoing to start what is happening with inflation. francine: we look at central-bank diversions, the fed, how would you play all of

this? >> people are getting tired and bored with the bank. people do not want to touch this. right now, short term, there is some euro down side. think an awful lot is in the price. manus: thank you for coming in. francine: bloomberg the first word is up next. for our viewers, surveillance is up next. we will cover the situation in mali, where there has been an attack on the radisson hotel. go live on the ground and have the view from our west africa bureau chief.

manus: and they are urging staff and citizens to shelter in place. ♪

francine: terror in mali. 170 people have been taken hostage. warnsench prime minister a borderless europe is at risk. mario draghi says he will do what is necessary to raise inflation. good morning. this is "bloomberg surveillance."

we switch again to paris. i am struck by it. we have known this was coming. to come so soon on this friday, one week later is something. mali has a strong french link. 1000 troops from france are still there. let's get the bloomberg's first word news. gunmen have attacked a radisson hotel in mali. a new jeh johnson has said the gunmen are holding 100 70 hostages. in mali's happened capital. russian citizens possibly taken hostage as well. the french interior minister took a stab at belgium after

three brussels relic -- residents took part in the attacks. president obama and the vladimir putin agree they can hurt a lot -- hurt islamic state by bombing the terror group's oil. both.s. and russia are targeting islamic state oil facilities. the senate has not indicated whether they will take up the -- to keep syrian refugees from entering the u.s. the white house says if the bill becomes law, president obama would veto it. greece, a setback for alexis tsipras.

his parliamentary majority has gotten lower. it raises questions about his ability to -- to the european bailout. francine: thank you. two gunmen have taken 170 hostages during an attack. the situation is ongoing. the attacks are being carried out by jihadists according to local reports. joining us now, our bloomberg news reporter. the radisson hotel is a hotel you know well. from the latest on these attacks? there are about 10 gunmen in the hotel keeping people hostage.

it is a hotel used by foreign troopss people and u.n. to lodge people there. it is very central in the city. in 2013, when the french offensive started, most of the foreign troops and foreign military were staying at the hotel. it was seen as a target for a possible attack. doing know anything about security at the radisson? security was fairly good, but even then, it seems like a place you could easily attack because the army was deployed in the north. there were not that many security people to secure time locations. was -- att the time the entrance to the hotel.

some people were patted down to check luggage, but you could walk in and out. it is an unfair question now, but i am going to ask. do you see this as coordinated as part of the islamic state and jihadists reacting to france and the operation of 2013, or is this about domestic mali warfare? a bit of both. there are no known connections between the islamic state and jihadists's. the jihadists of targeted mostly u.n. peacekeepers. peacekeeping mission in mali is known as the most deadly

peacekeeping mission. this mostly happened in the north of mali. as much ashappened often, or as severe as this one. francine: thank you. we will have more of an update. our guest host for the hour, thank you for joining us. you know the area well. how unusual is this sort of attack? good as security is as it can be in these unstable states. to suggest this was an attack on the french values. the two in 2012 --

the coup in 2012. ,ou start seeing some attacks but very few and isolated. earlier this year, we did see one on a restaurant back in march. some people are already dead. is a huge leap. theoes open up sympathy to islamic state. francine: germany and ireland had promised to support french troops in mali. i am notam -- andres: familiar with the different

statutes france and vote, but part of the sympathy is different governments expressed in -- expressing support. anti-islamic state campaignislamist france has around the world it has been primarily centered in west and central africa. it has been a huge focus for them. the battle is older. the battle is older. we are thrilled to have you in our london that. explain to all, the domestic warfare. of 1950 nine in 1960, basically it has been a civil war since 2012. the french parachuted in in january 2013.

what did they parachute into? andres: mali is the third-largest gold producer in south africa. there is a lot of prospecting going on. people are battling for licenses. there is a lot the country has to offer. the north is a huge cultural center. it was the center and capital of many large empires. empires that has given great traditions of oral history, music. there has been a lot of instability. mali had been a picture of success.

a 2012 coup wasted a lot of that. you have a military that is still not happy with the government and the resources that it has. francine: when you look at these concerns around the world, how should we view them. >> it is more the latter. it plays well with the second story you mentioned. what is the scale and reach of

this organization. the global corporation would comment on the war. as you look at the mix of geopolitics, even before what we saw a week ago, does your up -- -- an independent africa, with their own african problems. outside, this is a story .bout individual nations

we can argue whether it is a store says -- a source of instability. mr. martinez giving his perspective. the headlines now are simple. situation isthe worsening. 170 hostages taken nine a mali. this is an ongoing story. we will return from london and new york. this is "bloomberg surveillance." ♪

francine: live pictures in paris. days since theen attack. we had the raid on the jihadi hotspots yesterday. -- and the dutch bank its ipo, it allows the government to recall some of its money it spent bailing out the bank. abn amro transformed itself to a consumer lender focused on the netherlands. mario draghi says the central bank will do what it must to raise inflation. his comments underlying concerns that inflation is slipping further from the goal of just under 2%. policymakers are deciding to

expand the quantitive easing program. we have hans nichols in frankfurt. what else has mario draghi been saying? hans: good morning. he gave a hint they may fiddle with the deposit rate to empower more transmissions for asset-backed securities. it is a way of saying the euro is going to go lower. it is clear quantitative easing, we are going to get more of it. mario draghi said they must act. we will dohifted to what we must. talked about the state of the global economy. when you look at the average rate of recovery, normally it is five to eight quarters. , 30 onel take 31 months quarters, excuse me, to get back to precrisis output.

the ecb: we have meeting next month, when mario draghi tells us he wants to raise inflation quickly, is it a done deal we will get something in december? you and i can take december off. it is clear he is going to raise or do something with quantitative easing. it,hould wait until he has but it is a clear telegraph. the size is 60 billion a month. it will increase and potentially the length of the program. i will take december off. you guys can work. tom: angela merkel is not going to take the month off. she has an important meeting in germany with her party. is she threatened as she goes into 2016? existentially by the

crisis. there is not an obvious coalition or structure to replace her because she is governing with the spd. if you are looking at the refugee crisis, she may challenge by the cfu. you could see some sort of outcome where there is an open revolt. i still have a hard time figuring out who is chancellor. it is easy to see what the threat is. it is hard to see how to resolve it in a way that works. francine: thank you. let's get to our guest host. you look at mario draghi, he is trying to work on the euro . how much of that is priced in? only target the euro because interest rates are low, equities are not expensive, but not cheap, either.

this is why we have seen the impact. that is why we will see it continue. the composition of what we are going to get is designed for that. not just an extension of the program. rate is aimed at currency. thank you. we will have more from david after the hour. we will have more on the mali terror situation as two gunman take 170 hostages at the radisson blu. ♪

francine: our thoughts are with the people in the radisson hotel in mali. 170 people have been held hostage at the hotel in the malian capital. a twitter post, they now say a mali hotel gunman has started ,o freeze some hostages including those who can recite verses of the koran. we are trying to figure out the situation. we do not have any clarity. what do we know about the people carrying out these attacks? very little. what we have seen from

the attacks in paris on friday, there has been a resurgence in nigeria, the boko haram attacks, for example. they said they would destroy boko haram by the end of the year. it does see there is sympathy for the islamic state, if not islamic state operating in these parts of the world. this is a huge change in tactic. it was where the coup was led when al qaeda backed groups were there. we are seeing a huge change from these isolated attacks in the north to a capital in the south which had been safe. tom: when i look at this, i look

at algeria to the north. thecomes to the rescue of west in helping with the jihad. i am really unsure of who the coalition is in mali. there is a regional body , some quite large like ghana and nigeria. ghana has a respected military part of you and peacekeeping missions. there is little appetite to go there. ghana has a muslim minority population. that is one of the few in the case. most are muslim majority. , in senegal, where they have been discussing the idea of banning or limiting the or of the his job -- hijab

burka. tom: andres martinez with us. we look to the northeast of ghana. ghana and between algiers. a hostage situation. more than a situation is tangible. 170. many westerners in the hotel. paris and syria unknown. we will come back with more on this and a look at the markets. from london, new york, this is "bloomberg surveillance." good morning. ♪

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hotel, coming rather, from the hotel. always unconfirmed. up with theting situation in mali. our first word news. vonnie: talking about the attack on a radisson blu hotel. gunman took 170 people hostage at the hotel in the capital of bamako. -- haveen have read freed some hostages. militants seized some areas of mollie after a military coup in 2012. a suspected terrorist leader killed in a shootout had been planning an attack for the last 11 months. abdelhamid abaaoud was involved in at least four of the terrorist plots that were foiled in france since last spring. authorities believe he organize the attacks last week in paris. speaks to the

biggest critics of her refugee policy. she addresses the congress of her key allies. she has rejected calls to put a limit on the number of refugees entering germany. the company is leading in about 10,000 a day. in washington, not certain if the senate will take up the bill that will block syrian and a rainy and refugees from entering the u.s. puts the -- init the refugee program for the first time in more than six months. if it becomes law, president obama will veto it. you can get more on bloomberg.com. getting headlines fast out of mali, including channel four -- several airlines

commenting or not commenting on whether they have staff there. we do not want to say any of this with certitude, other than to give you the historical perspective of why the french are in mali. decolonization of 1959 in 1960. you have parachuted into this disaster. -- are theow is french alone when they go into the eastern sudan? >> when the french came in to mali, they were initially alone. that gave them a lot of credibility and legitimacy. they wanted the french to come

in and help them with the problem they had at the time. you have been covering this part of the world for many years. what can you tell us about the security situation and whether we can link this hostage crisis? >> we had the coup in 2012, but this year has been touch and go. there have been a number of on -- sites.ly ashad an attack as recently august.

we know very little about what is going on today. the timing is interesting. francine: we understand there are u.n. forces there. >> we know the military is on site. there are as few as 10. we have even reported there are only two attackers in the hotel. we are not sure. giving the number of hostages, 170, most hotel guest. there have been reports of businessmen being held up.

we are only getting limited information from the chinese embassy, the american embassy. francine: let's get to andrew's --tinez -- andra's martinez andres martinez. we about the are security in the region and neighboring countries? you have to look at nigeria, who had resources taken to taking out boko haram. what resources are left, you have weak governments. the truth of the matter, they do

not have those kind of omissions. bass.s. has joined drone joint drone base. tom: many other nations, someone suggested nations of commodity rich africa are the corporations involved. li?ch companies are in ma companies are in that hotel? a lot of parts of the emerging world and markets, nations, this is where

business get done. the lobbies, you will meet the for of -- for a bank, making deals. these are the hotspots. they are the hotels that have the security and the comforts for the airline crews, the guys who will go into the minds for three or four months at a time australia,ack to argentina, or what ever it is in the world. they will be populated with these high-level soft targets. that is problematic. the miners in of the world, prospecting, trying to figure out where the next new license is we want to pick up. tom: we have the u.s. embassy saying be careful. to. citizens should adhere

instructions. storm going on, three dead? unconfirmed on twitter. cnn has picked that up. -- i am look at this going to give you a phrase. what does that mean for mali and northern mali? if i say boots on the ground, what does that mean south of timbuktu? in the north, you have boots on the ground, they are operating, they have drone south, that means moving into a capital in west africa, which has not been done or seen since the civil war of liberia and sierra leone. bamako is not in a crawl, but it is important. it does represent the last point

before you reach these populated areas of the region. come back with our coverage on mali. we are trying to do as much as we can. france 24, security forces stormed the mali hotel. three dead, 15 released. france 24, i am sure, with informed sources. we return. attacks. good morning. ♪

francine: we continue to try and follow the breaking news.

we try and understand the fallout and what it means for west africa as a region. we are looking at economics and how you deal with these attacks. martinez making the point it is difficult and it will be difficult to rally support to engage property -- proper security forces. when you look at west africa as an economy, this will point to the fact that they do not have the resources to be able to afford proper security. david: the quality -- the , this is not the time for this country to have the additional security expenditures. that is why they are open to formal colonial powers to come in and try to deal with the situation. francine: which country will see the biggest fallout?

david: nigeria. is a fairly small market, especially relative to the size of the economy. capitalization is half the size of the polish market. some reaction. it is not falling on this news. mali is not an investable market. such asrnalists yourself know which foreign givenhas sway in a capital in the emerging markets. sway in france has western africa. is america visible at all? in ghana, they are the strongest force there. france's front and center. they offer technical training, scholarships through embassies

and consulates. iny are powerful presences those countries. if not linked to the islamic state, a group that has pledged loyalty, it is with sympathies to what has happened in paris. the same can be said about the attacks in nigeria. sympathies towards the islamic state. that is why you have seen a ramping up. tom: those sympathies, have they changed in the last six months? french. angry at the am i wrong in that assessment? andres: that is the case. they are mad at the french. you have different groups. one led by a former algerian military man and he has

supposedly been killed 10 times. it is unclear if he is or is not dead. part of his group has pledged allegiance to islamic state. they were responsible for an attack in niger. andsee them operating having allegiances and switching allegiances. you see these shifts. the last six months, who is the most visibly active? islamic state. alignin your interest to yourself, even if you do not have operational communication, financial support, you want to get behind the group that is most effective. francine: we are getting the first pictures from the attack in the capital. when you look at the francestion in 2013, still has about 1000 troops on the ground. what does this attack make us

believe the french will do? is it more troops on the ground or will they retreat? have beene french clear. they were not going to step down in mali. they felt they had an obligation . it was strange. francois hollande said he would not get involved and he has continued the policy of sarkozy. 1000 troops, another 2000 the 3000 troops spread across the southern sahara. think about the resources, the drone base that is run with the u.s. they are probably trying to figure out where the attack started, where the base is, who it is tied to. there are a lot of variables and very few resources on the ground. tom: we bring in jim. he saido in manhattan,

tom, all i want to do is move to france. that was in a lighter and more happy time. let me talk about the linkage at the moment. terrorists will be forever changed. we know that. will the french government be forever changed, whether it is francois hollande or the presidents that come after? jim: the real answer is going to be, given in 2017, the presidential elections, we are going to see what kind of advance the national front party makes in those elections. this incident gives her a huge .pening there is a fear that can take over.

that is the thing -- plays on. we amateurs look at "lawrence of arabia." divide the map, the british and the french. from beirut to mali, up to algeria, are the french people engaged in the french colonies where we are seeing this islamic unrest? jim: to the extent that they and therelgia for it is plenty of tourist and commercial traffic between france and those regions, whether it is retailers, consumer companies, gas companies, energy companies. plenty of linkages remain. francine: france has demanded tougher security and more intelligence security cooperation in europe. will this attack, even if it is

not in the region, force them to do more to work together? jim: sure. mali and africa has been a french military operation in terms of working together with other european powers. inot sure you will see that in africa, but it will raise the stakes in these discussions in brussel. francine: thank you, jim. we are getting more news from that hostage taking in mali. the french in the u.s. and mali and troops are extricating hotel guests. we will bring you any breaking news we get. the first pictures from the attack in the malian capital. ♪

francine: more news from the mali operation where 170 hostages were taken. malian military are trying to extricate the guests staying in the hotel. the hostage situation has been

ongoing for two hours. the number of casualties is unknown. it is a fluid situation. we will wait for the official numbers before we start speculating. we have some great guests. we are trying to figure out the fallout for the refugee crisis. andres if you extract what we -- if you are ceo of a large retail company in europe, would you be concerned and you would hold off doing investments in french colonies? andres: it depends. if you are a french ceo, the french are quite attuned. they have experience and understand it is country by country, you cannot look at it wholesale. they have a better understanding than some american companies had traditionally. have the ivory coast opening

its first store in sub-saharan africa. what are their expansion plans? would you go into mali? would you go into senegal? has opened up a store. they want to open up a store in johannesburg. you have parts of west africa where you have to question. there is risk you have to look at. the president was briefed on this, as he was a week ago. president obama being briefed this morning. we will have more on the u.s. response. earlier, u.s.oned forces are involved in the storming of the hotel in mali, with french and mali forces. has spent a decade in paris.

as you look at the gathering of president whole lawns, a few days ago, what was the back story? is together. where will they been one week, one month, one year? jim: when he spoke to them, he versailles, the only place the president cannot speak to legislators, and the legislature -- in the legislature. he is not permitted to go in there. pieceas an interesting about why he was speaking to them in versailles. going,s of where this is we have seen previously, there is precedent for how countries react to this. there is an instant unity.

politicians and interests resume normal positions. where that goes and how that goes in france, i do not want to say it is written in stone, but it is predictable. they will go back to the red corner and blue corner and start duking it out again. stubbs,say to david thank you. i hope you have a more productive financial day. we will continue our coverage on international relations. is never dull. after speaking with joseph of harvard university, we look at the interdependence of the colonies, hostages taken in mali. stay with us. ♪\

it is as quiet as can be expected in paris. it is not in mali.

there is gunfire. hostages taken and released. the news is a cacophony this morning in the former french sudan mali this morning, under jihadist siege. b hours ago, mario draghi said he would reinflate. good morning, everyone. this is "bloomberg surveillance ." we are live from our world headquarters in new york. it is friday, november 20. as of the week ago, we are looking at international relations and the clash of religions. francine: it is exactly what we're looking at, tom this raises questions about intelligence agencies and how we can work closer together and weether the french