>> from bloomberg world headquarters in midtown manhattan, i am erik schatzker. putin says turkey faces serious consequence is after shooting down a russian warplane along its border with syria. french president francois hollande will meet with president obama in the white house moments from now. bankers do not want to hear. the head of one of the world's they are stillay overpaid. let's check in on the first word. here is vonnie quinn. vonnie: french president francois hollande meeting with president obama to discuss the fight against islamic state shortly. minister --e

already the u.s. and france have agreed to share more intelligence. kamran prime minister will begin the vote to decide whether they will bomb the islamic state. jeremy corbyn was elected because he opposed british involvement in any conflict. but many in his labour party supporter attacks on islamic state. the threat of a terror attack has not diminished, belgium says. alert is extended into last week. but the lockdown will be eased starting tomorrow. the turkishin says "stab in the back" led to a shot down warplane. turkey says they shouted down along the border with syria after the pilots ignored repeated warnings. accused turkey of being

"accomplices those quote to terrorism. john kerry is meeting with benjamin netanyahu. he so -- he hopes to stabilize relations with palestinians after two months of violence. incidents, three were hurt when a palestinian rammed his car in the west bank. from the you bloomberg first word desk, i am vonnie quinn. erik: thank you. now, julie hyman has the latest on november consumer confidence -- confidence and more. seeing a drop to 90.4 in consumer confidence and thus far. by5 was what was expected economists. what has been driving markets events in southern turkey with the a plane being

shot down and the war of words between russia and turkey. you are looking at the e-mail he's -- e-mini's overnight. you saw the drop in the futures after we got the headlines. quite a bit of volatility sense then on the commentary that has come out back and forth between the two nations. as analysts try to extrapolate for thes will mean commodity markets and the european union and nato. a of talking about these repercussions of what has happened. in terms of how this is being felt another aspect passes, i want to look at the etf for russia and turkey. a selloff in the etf's that track the markets in those nations. offre seeing this risk scenario. also watching in their currencies. the japanese yen on the rise.

interestingly enough, the euro .as gained as well it has been an interesting reaction to what has happened. >> let's look at oil for a moment. whenever there are geopolitical tensions in the middle east, we see a response in oil. julie: we do, because there are concerns about supply. oversupply is one of the big issues with the oil market now. we saw a spike in oil prices that is continuing. about 3.5%. i want to check on the treasury market in the u.s. be aould think there would buying of treasuries, yet that is not necessarily what we are seeing. the yield in the 10 year unchanged at 2.23 percent. a little confounding, but the caveat is it is a holiday

shortened trading week. erik: thank you for the update. as he mentioned, president obama and president francois hollande of france will meet for the first time since the paris attacks. here as wellhy is bloombergirilli of politics. kevin, what do we expect from this meeting? will: president hollande meet with president obama to discuss the united states and its efforts to join the international coalition. is growing pressure for the u.s. to increase its lead terry presence in the coalition. the presidentor to authorize u.s. troops on the

ground. and polls indicate the u.s. people are growing frustrated. erik: so there is obviously a drop to what the president may say to frost hollande. fill us in on that. republicans are now attacking president obama, saying he has not had an adequate strategy in dealing with the isis terrorists. they would like to see a larger military effort from the u.s. evenct, hillary clinton distancing herself somewhat from president obama, saying now is the time to stop isis. being abernie sanders little more apprehensive of boots on the ground -- of u.s. boots on the ground. polls indicating frustration with the president's handling of this. erik: thank you.

we will turn back to you once the president and francois hollande are due to meet. doug heye's here and so was megan murphy. welcome to both of you. simmeringat least two issues affected by their .iscussion one being this bill passed in the house to impose a stringent checks on those who would come to the u.s. from iraq and syria. thethe potential impact of debate may have on their visa waiver program. what is more -- which is more economically consequential? megan: in the round, the latter is. when you look at limiting or putting more stringent checks on syrians, they already go through stringent checks. it takes two years for an applicant to be resettled. that is a small number of people now.

that we waiver program, have with more than 100 countries around the world to if youhe u.s. visa-free, put a check on those, there is a big knocked down on terrorism. bubbled upnt has not yet because so many people are focused on the terrorists and the strategy they will take. i think we will hear more on that. stringent the real limits on syrian refugees is the focus. erik: it is not just in washington, we see it on a state why state level as well. doug: we know individual governors can not's top people from coming to their states, but they can affect the rhetoric. paul ryan has put out a reasonable approach. it has gotten democratic support. that we are hearing from

residential candidates and governors has not been helpful to the political debate and has not been helpful to republicans trying to get things done in washington. we hear from congressional republicans in washington and republicans in state legislatures -- is it about smart policymaking? you would like to believe so when it comes from paul ryan. megan: in a day, the one thing he said he did not want to do and then they push this through. erik: or is it really populist positioning in an effort to potentially a certain residential candidates or themselves? no surprise. politics plays it a role in everything. i think they put together a reasonable approach. that is a wide chasm from donald trump and ben carson, who are driving the conversation with alarmist rhetoric. does it seemsue is

reasonable on its face to have more stringent tax on refugees when we still do not know if there was a refugee involved in paris and brussels? is this where we should be devoting political attention? this is a very small thing in the broad scheme of things. ist the american people hate the politicalization of this. there are fears to address on both sides. both are reasonable. they are not getting airtime because it is falling into the tips for tat. erik: as the latest results from will see why. you they show people care more about terrorism right now then the economy. the question is whether this reactionary response lasts the yard a week, because that is as long as people will care more about terrorism.

megan: we will have to see if there is another attack. brussels still on lockdown. we have the russia-turkey situation. we have planes diverted. people on super high alert on the thanksgiving holiday. in traditional elections, the economy carries the day in the end. ways benefitn many hillary clinton, if she is the nominee. but with the barbarism by the themic state that cuts to fiber of what america is and how people define themselves as humans, it is creating an opening for candidates like donald trump. benefits marco rubio or articulate a strong stance that obama is getting criticized, whether or not it is true he does not have a coherent response to fighting the islamic state. doug: as long as we things -- as

long as we see things like a the daying diverted, after the attacks, there was a bomb set in boston -- these have economic activity. the visa waiver program was expanded in 2003. portugal had a major benefit for the u.s. and portugal, any expansion of that is doa. erik: thank you both. as megan mentioned, tensions flared between could be allies in the fight against isis went turkey shot down a russian fighter jet. turkey claims the jet violated airspace. plane crossedthe the border in the first place. russian stock sunk. and turkeys currency fell. the way we chart it, you see the

dollar lira. ryan chilcote has more. you have to break the events into two groups. what happened on the ground, you are just describing. the turks saying they downed a russian jet that had been in turkish airspace and that they had warned the jet and then took action with two f-16s. than the russians saying that jet was always in syrian airspace, never in turkey's. the russians saying that was taken down by surface-to-air fired by the turks. very different stories. the other part is you have to look at their reaction from the russian president. that came about one and a half hours ago. a lot of people expect and vladimir putin to dial back a little of the escalation, the rhetoric we had heard from russian parliamentarians. to really make sure that

tensions did not boil over. he went for it and accused the turks of effectively aiding the islamic state, saying they were buying oil for the islamic state. saying the russian plane never posed any threat to turkey. that turkey had backstabbed the russians and that this would have serious consequences. it was a surprising and strident , from the russian president, who happened to be meeting with a keen of court -- with the king of jordan at the time. erik: if i am not mistaken, the russian foreign minister was due to travel to turkey and has canceled that trip now? ryan: that is right. it was supposed to be a friendly trip. the russian president and foreign minister were in turkey for the g-20. not only did he canceled the trip, he also said russia and should not go to turkey either. that is a manifestation of what we can expect will be an

economic front that the russians will pursue against the turks. we have seen it when responding to eu sanctions, with ukraine. a lot of russian politicians talking about how air links should be seized -- ceased. seeingthe reason we are the weakness in the turkish lira , because russia is a big trade partner for turkey. erik: beyond the economic consequences, what does putin prefer to buy serious consequences. two isition between the complicated in syria since the russians are backing bashar al-assad. enemy anda common isis, but beyond that, there is little, ground, right? ryan: there are two things to watch for. and i for an eye approach. a turkish jet that somehow ends

up in syrian airspace that russia decides to engage -- let's hope that does not happen. the second would be the economic front, where russia seeks to punish turkey for downing the jet through economic means. i would point out the russians have all of the means to punish turkey through turkey's proxies. the ethnic turkmens that are fighting bashar al-assad's regime. the turks have been saying do not bomb our people in syria, the ethnic turks. we have not heard much from russia. they have said they are going after islamic issue missed -- after islamic extremists in that area. it would not be surprising to saying theseans syrian nationals, ethnic turks, forget that. we think they are terrorists, we will go after them. erik: ryan chilcote, thank you

on the latest on a russian jet shot down by turkish forces. coming up in the next hour, we will be taking you to the joint news conference between president obama and french president lond -- president hollande. and nicholas burns. ♪

>> good morning. welcome back. french president francois hollande now arriving at the white house for his meeting with president obama. we will take you to a joint news conference they're holding next

hour. they are said to be in the oval office. president aland seeking obama in retaliation against isis. time for another market update. here is julie hyman. julie: i want to start with valeant. today, bill ackman is raising his stake in the specialty pharmaceutical maker. it is going to 9.9%. it started in october. he continually has expressed his confidence in the company, even as it has been added i different fromations and pressure congress in drug pricing practices. shares up 1.3%. getting involved in xerox. he amassed a 7.13% stake in the company. they are already revamping,

trying to improve its operational performance. said -- code for potentially seeking a sale. erik: thank you. still ahead, the commodities route is triggering a wave of defaults on debt. ♪

erik: the distressed debt world is getting more distressed. many of the firms investing and distressed debt getting more thisessed and a time when was supposed to be easy. laura keller covers this. we are talking mainly hedge funds. it is worth pointing out -- i have a chart on my bloomberg --

everyone can see what has been happening in the last five years. the performance all over the map. during 2013 and 2014, these funds were doing nicely. since then, it has fallen off the map. the pieces ofput the puzzle together. we know there is a collapse in energy prices and in the prices of energy related debt. why is that hard for these managers to figure out? laura: can you and i call oil? part of this problem is a lot of people who jumped into the oil trade. this mean the -- this meaning the bonds of the companies who jumped an early. anyone who did that have seen those loans collapse. that means your return is not good. in a couple of years

when you can sell that off, that works for you? erik: did they job into early because they had dry powder -- did they jump in too early because they had dry powder? laura: yes. people were wondering where are the ideas? people have been waiting and really jumped on it. erik: we see there are distressed credits outside oil and gas. laura: yes. you start with energy, but we have seen her precipitation of other industries. materials.sic all of these sectors have trodden down. anywhere in distress you cannot find good trade. rate at orefault near historic lows now.

is this express reputation it will rise and how quickly? laura: moody's will have it rise to the highest level in four years next year. it is usually around 4%. distress that means he will see moredistressed -- that means you will see more distressed opportunities. maybe we will not see it in the first quarter. it may not start right away. erik: thank you pay laura keller covers distressed debt here and at bloomberg. still ahead, the debate over banker pay heating up after john cryan sounded off at deutsche bank. ♪

erik: breaking news here at "bloomberg markets." a sovereign wealth fund controlled by a blue dobby is considering the sale of global

foundries, a contract semiconductor manufacturer. la anticipating a sale price up to $15 billion. global foundries got its start when mubadala by the of -- turing sector the back drop is the drop in the pute of oil which has pressure on governments like abu dhabi. we turned the vonnie quinn. vonnie: french authorities questioned a top suspect linked to the paris attackers. he is the only person in french -- in france facing charges linked to the attack. he was handed to an anti-terrorism judge. he is accused of allowing the suspected mastermind of the attack to stay in the sain t-denis apartment last week.

police in minneapolis are looking for three white males after the shooting of five overnight. the victims were among demonstrators who were protesting the killing of an leased black man by the nine days ago. the wounds are not life-threatening. some protesters do not intend to stop protesting despite the shooting. four killed after the crash of an army text -- after the crash of an army helicopter in fortitude, texas. the army is investigating. a new study highlighting the prescription drug epidemic in the u.s. for about six or 6 million adults in the u.s., the opioid crisis is personal. this is a clip saying car accidents as the leading death of accidental deaths.

the new passenger space vehicle reached -- it executed a landing at the launch site in west texas. that is a look at our first word news now. you can get more on the new bloomberg.com. erik: thank you. oil prices are higher today with tensions rising in the middle east after turkey shot down a russian warplanes on the border with syria. you can see the international benchmark. a little really for energy investors but not much. -- down 40 degrees earlier, we spoke with a, who expects better earnings ahead. >> the economy is growing. prices -- thel rate of change has been dramatic. we were at $100 last year. now it is at $50.

inh a flat level of profits the oil prices, that still leads to growth in energy earnings. modest positive. erik: for moore is tim guinness, chief investment officer at guinness atkinson funds. good morning. a lot of investors have steered clear of energy because they have watched what is going on with oil and decided they do not want to catch a falling knife. but you have to be in energy. how do you invest when you are forced in? tim: the first thing i want to say is the current situation is uncannily like that when i started investing in energy in november, 1998. were 12,rices then fell by the end of january 10 nine, and between january of

1999 and the first quarter of 2000, it rose to $30. so what did we do then? thatied to find stocks could ride through the volatile price environment they were in but with then recover strongly as the oil price recovered. that is our start. do you anticipate we will see a similar rebound in the price of oil to what you witnessed in 1999 and 2000? tim: i do. both situations involved a supply shock. the supply98, we had shock. there were 2 million barrels in the market in short order. this time, we have u.s. trail

oil, where production has risen by 3 million barrels a day the last three years. we then had saudi, the uae, and kuwait deciding they do not want to give out market share. they do not want to have what happened to them in 1985 happen again. they ramped up their production by 2.2 million barrels a day. and demandillions only grew by 2.8%. is one wheret demand is poor. small amounts of shortage can cause the price to go up sharply and demand will literally drop. -- liberally drop. when you have a lot of oil supply. so the market begins to rebalance. so we have seen horizontal rigs

come down to below 400. -- has caused u.s. shale production to roll over. they will be doing one million barrels a day six months from now. you whatant to ask some of these quality companies are. the ones you are taking shelter in and anticipating the oil rebound in prices? tim: i do not really like talking about the particular companies we own. you mind if i talked -- duck that? erik: i can see some of them on the bloomberg. the gagx. tim: you can see them all. are still ind you them, you have valero, a patchy. state oil. bp.

let me ask you about valero. refining going to remain the best place to be in the interim? been a goodg has place to be. frankly, i wish we had more in the second or are -- in the sector. we hold many of the large integraters. erik: good to see you. tim guinness, chief investment officer of guinness atkinson asset management. the age-old debate. our bankers being paid too much? deutsche bank's co-ceo says they are. turning investors are to roble advising. betterment ceo of will be with us. and we have the latest on

turkey's downing of a russian and why vladimir putin says there will be "serious consequences." ♪

erik: welcome back. this is "bloomberg markets." to europe where european stocks are declining amid concerns over global growth. >> it is a classic white. across europe. only greece trading higher. 18 out of 19 industry groups falling on the stoxx 600. it is only oil being dragged up then increase look at

decline is, particularly on the ftse 100. the travel, the laser -- the leisure companies suffering. the geopolitical news is odor shattering -- is overshadowing some economic data out of germany. ,usiness confidence rising signaling the economy is robust enough to whether the slowdown in emerging markets. and we had gdp data from germany. you have to say thanks to the domestic economy. it pushed the german economy forward in the third quarter, offsetting a drag from net trade. to a two-week low against the dollar. mark carney testified before u.k. lawmakers. he said the u.k. will have low interest rates for "some time"

and the pace of tightening will be "limited." the boe's chief economist warns have a downside. look at the turkish lira pay the last time i checked, it was declining against every major currency. all 31. ted cruz my flight to safety point, look at the government bond market in europe. to prove my -- flight to safety point, look at the government bond market in europe. erik: here's a question, our bankers getting paid too much? deutsche bank's john cryan things that appeared he says "i think bigger in banking are paid too much. many people in the sector believe they should be paid entrepreneurial wages for turning up to work."

christmas is supposed to be a happy time for bankers. it is bonus season. here we have michael moore and guy moszkowski. how much pressure is there on compensation? it varies from firm to firm. broadly speaking, a lot of pressure. had not been as good a year, especially in extend come. fixed income uses a lot of capital. it also consumes a lot of personnel costs. if revenue is not there, the compensation pressure is there as well. deutsche is in a tough spot, as are some of the other european banks. credit squeeze as well. both have new ceos and are asking whether they really need to have as big a footprint. erik: given that european banks are so much further behind

in rebuilding capital and raising it to higher levels, does it go without saying times will be tougher for employers of european banks than four people on wall street? guy: that is certainly a big part of it. fixed income is the focus. erik: fixed income. there is dispersion in what people will be paid because of the fact some businesses are doing poorly and some are still doing well, like investment banking. michael: yes. equity derivatives was very active. there are some bright spots. part of the equation is there this year.the bid the buy side had a tough year. across the board that people are either staying be same or shrinking. there may not be the bid that forces things to pay up. cryon not justke

warning people about what to expect this bonus season. they are talking about the future as well. this trend will not let up anytime soon, is it? guy: i do not think so. these firms have been under pressure in respect to the returns they can give to shareholders. return on equity's is a flawed measure, but that is what matters. a lot of these institutions under the new capital rules that came in under the crisis are generating low returns on equity. a lot of european banks are struggling to break into the high single digits, even. erik: the full-service investment banks like goldman morgan stanley and jpmorgan would have been paying close to 50% of revenue in compensation. where are we now? banks,: in most of those

the 30's. some high 30's, some low 40's. certainly, it has come down traumatic late. it is hard to justify a 50% compensation. erik: how low can it go? five years ago, i cannot think any of these guys would have that we would be in the 30's. goldman had already got into the high 30's. they are in the mid's. how low can it go? we are probably approaching and asymptote of some sort, but it can probably go lower. erik: into the 20's even? is very low, but it will depend on the business mix and supply and demand of people. erik: are boutiques more insulated? michael: in some ways.

a lot of the capital rules, they avoid some of those. toy are a little more tied the m&a cycle. right now is a good time for that. a few years ago, it was not nearly as good. guy: that is their business point. the boutiques you talk about, mostly they do m&a. they have a higher labor component and a lower capital component. something thing -- most people do not know is what do these guys get paid today? what does a senior banker in m&a make? very senior banker who has an active role in is actually making a lot of the business happen can't will be can still bens -- making millions. erik: double-digit millions? guy: there are certainly some. erik: how about a junior trader

at a fixed income desk? i will speak in percentages. i think somebody who is early career but has a few years experience and is good is 40%,heless probably making 50% less than they would have at the height of the fixed income bubble. erik: which is to say they were overpaid that karen or are underpaid today? firms are usually good at paying what they have to pay and try hard not to pay any more than they have to. comparedre being paid to the business they were making. erik: people graduating from mba schools are being forced to think strategically, structurally. if you're looking for not just a good wage but a stable wage,

where are these people going? michael: they are probably going into the programming and electronic trading jobs. that is where the secular growth has been. some of these tech jobs in the banks. divisions will be tied to the revenue performance. aret of the junior people somewhat insulated from that. there is not a huge movement year-to-year. but when you get to the mbe level, you can move 20% to 25% up or down depending on the type of year it is. moore, and guy moszkowski. always great to see you. for a look at the u.s. financial markets, we will talk about stocks and take you to abigail doolittle who is live from the nasdaq. >> thank you. here is the nasdaq. travel related stocks trading

down after the state department issued a travel alert due to terror threats. to -- due expedia went down. but when i looked at the revenue by expedia's urography is more geared to the u.s. priceline is more towards the international scene. considering these thoughts on the international scene, investors could see priceline as more vulnerable than expedia over time. this is also true of the airlines, including american airlines and jet blue. jetblue's revenue is 100% domestic. american airlines is 50% with the u.s. 44% of the international. american airlines now trading below its 100 and 200 day selling averages. today, jetblue was above those averages, suggesting

buyers were there. it is now below its 50 day. investors may see american airlines is the more vulnerable of those stocks. at thebigail doolittle nasdaq with the latest on travel stocks. still ahead, would you trust a robot managing your money? biggestof one of the robot advising companies will be here.

active versusbout passive. sure your money manager be a real human being or a robot? more firms are using robo advisors. automated financial services. estimates $3 billion by the end of 2016. of stein's founder and ceo one of these firms, betterment.

let's talk about robo-advising. i find it fascinating you can either actively outsource your money management needs -- it is an algorithm, really. how does it work? jon: this is realizing the dream many of us have had. have our money managed in an automated way even better than we can do ourselves. some people think of it as robo advice versus human advice. but most americans have no advice. it is robo advice versus nothing. erik: the principle of robo-advising or the foundation for it is about passive is better than active, right? jon: that is a piece of it. there is more to it than creating a portfolio. hand over money management to an algorithm, it cannot really outperform the market? can if you factor in

taxes and behavior and how much you can save -- how much you can be saving. erik: but the products themselves art passive? jon: most of the etf's out there are passive. would behe robos passive. all of the data says passive outperforms active on average and over time. erik: wide turn to a robo turnor instead of -- why to a robo advisor and set up putting 60% in two vanguard or into an index etf from, say, lack rock -- black rock? jon: portfolio creation is the easy part. anyone could come up with that. than that.ch more

we give you holistic financial advice. we take into account your social security benefits, pensions, we tell you how much to save in your roth ira versus a traditional one. how much to put into your 401(k). we look into your bank account. if there is an axis, it will sweep it automatically into investing. we have over $3 billion under management now. erik: by the end of next year, you expect what? jon: let's say three times a week have now. thank you. jon stein is the ceo of betterment, a robo-advising firm. we will be back here with former defense secretary william:. -- william cohen. ♪

erik: welcome to bloomberg markets. ♪

from bloomberg world headquarters in downtown manhattan, good morning. here is what we are watching this hour. accomplices of terrorism, that is what vladimir putin calls turkey after they shut down the shot down a plane -- after they shot down a plane. a meeting of the lines on islamic state. president francois hollande asks president obama for help. we are 90 minutes into the trading day. let's take it to julie hyman with that of date on stocks. julie: declines have a great hit -- have exiled right he likened the major averages. -- celebrated in the major averages.

the nasdaq is the worst of the three major averages down nine to the. take a look at my bloomberg terminal. a cyclical selloff. on a morning where we got gdp for last quart to revise hired to 2.1%, in line with economists estimate. cyclical groups, financials, industry all doing the worst. the soul group in the green is seeing an increase in oil prices based on what happened in the speculation that perhaps when you see these types of june 11 that there will be a creeping and supply -- crimping in supply. you mentioned consumer discretionary. as goes amazon so goes the market. julie: there is concern about

that is and what that will mean for travel. the latest travel belongs to the latest discretionary. spirit airlines, even love they do not have international business, but still dropping. downing did we have the of the russian jet, but there have been a number of incidents over the past week or so because of this heightened concern about terrorism. you of planes being delayed for people being pulled off of planes. what this will mean for travel, it is a concern. if you look at online travel companies they are seeing a substantial selloff. and amazon is selling off and netflix. there is this momentum stock selling off today. and is a record yesterday. terror ass been on a well, the rest of performing stocking the s&p this year. these stocks have followed along

with momentum and are now following the downward momentum. erik: thank you. let's bring in some news from the first word. the french president is at the white house talking with president obama about how did defeat islamic state. anis trying to put together alliance 10 days after the terror attacks in paris. he goes moscow tomorrow to speak with president vladimir putin. -- presidentdent b in theurkish sta fact led to the job of a russian -- the downing of a russian plane safe. himaid there would be serious consequences.

the lockdown in brussels will start to ease tomorrow. schools and public transit systems will start to reopen. the number of refugees arriving in europe is set to fall in november. that is because the weather has gotten worse and members of the eu are tightening their borders. 23 100 16,000er refugees crossed the mediterranean and that is half of october's total. here is a first. vehicleshepherd space successfully flew to space the meridian altitude of 130,000 feet and then executed a landing texas. the launch pad in

that is a look at our first word news. you can get more on these and other writing stories at the new bloomberg.com. thank you. president obama and the french president are leading for the first time since the attacks in paris. they are due to hold a joint news conference less than 30 minutes from now. our global team is covering the story for us. we're at the white house, and in paris. let's begin in washington. calvin, let's talk about what results, if any this meeting may produce. the president wants something that president obama wants? isi think that this meeting largely symbolic for the white house as well as president obama, to show continued france,ng support for particularly as president

ollanta is trying to build a broader coalition of support to defeat the isis terrorist. but it comes at a time are some of the european community where -- are asking u.s. to do more. foods onase, even u.s. the ground. president obama has said this is not something he wants to do, despite polls suggesting that there is growing frustration with the president's response. erik: what is the president prepared to do? >> he wants to increase the military. he wants to monitor the isis terrorist. he wants to provide more assistance to the coalition. he also wants the europeans to better cohesively provide information sharing amongst themselves. he believes that the european allies have more they can do together without the u.s. intervening even further. erik: to what degree does this shooting of this russian plane by the turkish change the

setting for this meeting? something different in the mix. >> definitely. time, nato is meeting as we speak to discuss the plane going down. day before thene french president is set to meet with vladimir putin. what is going to be a topic of authorization -- that is going to be a topic of conversation. thank you. now to paris. the focus has been brussels because it has been on maximum terror alert and on lockdown. bring us up to speed on what is happening in paris. not the same lockdown is brussels, but still very high alert here. for theof emergency next few months. earlier today as many as five metro lines were partially closed due to possible terror alerts around the closet the public.

-- the plaza. this is the square that is very close to the place of the attacks on friday night. despite the heavy military see around you tourist sites and around metro stations with people are still on edge. ,here were signs of panic scenes of panic around the republic square and around different places across the capital earlier this week. we saw as many as 124 people have been charged, and many more have been questioned and arrested. hundreds have been placed under house arrest across the country. that is only in paris. vests were found , the man who is still at large was found earlier last week -- his cell phone was

found earlier last week. we're still very much on high alert. erik: the french president was under pressure before the attack. how important is it for him to make progress with his allies? the will be speaking with angela merkel and vladimir putin. >> of course it is probably the for his busiest week entire presidency on the diplomatic front. he will try to act as the bridge between the united states and russia. support for the french. the french aircraft carrier charles de gaulle has arrived in the region. they want to provide the naval forces of the french in the reason -- region. countrythe only

along with the united states to directly target isis in syria. erik: thank you very much. you the news conference that is coming your way 11:30 eastern time. for more on this bilateral meeting, former secretary of defense william cowan is with us. he is the founder of the cowen group. mr. secretary, you have a sense what thisown work industry shoes prepared to do. -- what this administration is prepared to do. isn't likely to change course in any way based on the request he will make a president obama today? think you will find

much change on the part of president obama. president hollande asks for various attacks being intensified i think that can take place and will take place. if he will ask president to put boots on the ground i think the president will resist that. thepe they will discuss possibility of doing something they should have done at least two years ago. theet up a safe haven along syrian border so that those people who are being killed and rendered homeless and on the run can have a safe haven that can be protected by a nato country or a coalition of the willing. to simply have hundreds of thousands of people on the run trying to escape the bombing being carried out by bashir al-assad and his supporters is acceptable. president obama should of a his own tofe havens

protect those people as they are rejected by european countries. that is something that would be very constructive. i would hope they would discuss that. erik: is it on anyone's agenda? mr. cohen: that should have been on hours for a long time. 2.5 years ago it was a real possibility. i had argued them that it was something we should have considered. right now, what can they do? they are trying to flee a war zone to give into europe and the europeans they do not come here in the united states is do not come here. where do these people go? i think we have to at least safe havene form of for people who are innocent and not involved in warfare but are being slaughtered. that to me is very least we should be doing at this point in time in addition to identifying intensifying

attacks against isis. russia has made it very clear that their goal is to protect bashir al-assad and not to take a isis. if they should should did say we are with you, we are with the french, we are with united ace to go after isis, that could change the dynamics of what but we have to remember that president clinton is not interested in a new relationship with the united states to become best friends. he intends to pursue his interest with syria and iran. and now i think he hopes that befriending president hollande will break this relationship states and united the sanctions that are being imposed. erik: if president ollanta does not get what he was from president obama, he make it somehow from the british, somehow from the germans. what can they accomplish on their own? they can accomplish

much on their own, that is why it is important to have a coalition of the willing. this is where the united states could take a leadership role to say more has to be done. we have underestimated the reach of isil. the president and the administration, and for that matter congress is not willing -- what to then? mr. cohen: then you will see the slaughter that is taking place today. he will see tens of thousands of people -- erik: because the europeans do and that firepower on the wrong? -- enough firepower on their own? certainly individual members who have military capability to be willing to provide some kind of relief to people who are in need. is it as simple as that,

the explanation for why the west is losing the war against isis? mr. cohen: it is a complex area, to be sure. we have religious conflicts that goes back centuries. there is no easy solution. but one thing is very clear. if you allow isis to continue doing what they are doing in the region, now spreading their tentacles into europe, and possibly the united ace, then it is clear you cannot simply try to contain isis. you have to not only degrade them, you have to destroy them. you're going to have a much greater military component, and component,hat coupled with a political solution to bring about a cease-fire in syria and to bring russia joining with united states and with the french and with the british and german is the major threat. erik: when you say possibly in the united states, is that because you believe isis is

operating here? aware of evidence just just that they are, or just the threat that we need to be aware of? -- thatn: i do know not any unintelligent agency has -- i do notcredible know of any intelligence agency that has said that they are here. we have pretty open borders. we have the availability of fire fire that is second to know the country in terms of ease of access. people here who played to strike the united states when the opportunity presents itself. we always have to be prepared for that. not expect that this is something going to suddenly, out of the blue. erik: thank you very much. do not miss our coverage of the president's joint press

conference with france. we're covering the latest news as well. nato investment will be with us in a moment. and later, a former director of national intelligence. ♪

and welcomeorning back to bloomberg markets. president obama and french president hollande our meeting right now at the white house and we are scheduled to your room them in just minutes. stretched between two other countries in the fight against islamic state. the incident is between just turkey and russia. turkey claims the russian jet violated its airspace.

russia denies that they crossed the border. now we have a former messenger nato. the timing have been worse? a could not have been president a lot is trying to urge that we have a big coalition against islamic state. big outlying countries is turkey and russia. and based on what has happened this morning between them, that is going to be difficult to accomplish. s will not wantl to work with the turks and vice versa. be helped by a bigger coalition to degrade and eventually defeat isis. when ahat will happen lunchmeat -- hollande meets with putin? happen with what

happens today with president obama. they have been conducting operations for the past 18 months. will the united states agreed to intensify that air campaign? well would put more forward deployed people on the ground to help the air campaign that the restriction has been doing over the last 30 days? that is a key question that the french would like answers to. interesting to see if both president a lot and more ast putin to turn a fax against islamic state. if my jockey is correct, the russian airplanes were not flying anywhere close to it out-of-state this morning. the turkish government had warned the russians in the last several weeks that the russians have been bombing syrian target the turkishr border. they continue to direct most of their offense of airpower against enemies of the bashir al-assad government.

that is a major problem for the coalition. erik: i am sure that you saw the turkish lira sold off today. leading global stocks lower. is that a rational response to what appears to be rising geopolitical tensions, or does it feel more like quick money looking for a fast exit? >> and maybe an emotional reaction. thingct is that the first the turks and the nato want to do is establish the facts and was the russian aircraft in turkish territory? and we know they violated airspace and september and october, i think nato will have no choice but to support terror -- turkey's right to protect his national territory. interest in best of the u.s. to counsel turkey not repeated.

erik: i would like to continue the conversation. would you be so kind to stay with me. we will take a quick commercial break and come back with investor nicholas burns at the kennedy school of government. ♪

or lower. stocks european stocks are even lower than that. we are moments away from the european close. mark barton will be with me for the next half-hour as we monitor the news conference in washington the downing of the complicatings matters tremendously. vladimir putin's rebuke complicates things even more calling the attacks a stab in the back from the publicists of terrorism. he warns of serious consequences

, down pending the moon. it was a mood that was dampening by the event itself, by the downing of this russian warplanes. we have the biggest fine for equities -- decline and equities in two weeks. this has to be the chart of the day. look at the lee arrived. it has declined every single major currency today. we will have that news conference between president ollanta and president obama coming up next on bloomberg market, the european close. ♪

erik: welcome back to bloomberg markets. it is 11:30 a.m. in new york london,a 4:30 p.m. in

where trading has just ended. a joint news conference between president obama and president isne -- francois hollande scheduled. we go back to mark barton. fallingropean stocks after turkey shot down a russian jet near the syrian border prompting and move it into haze en assets. the european close a starts right now. erik: we are going to take you from new york to washington and london in the next half hour. kick it off for us. mark: it is all about turkey today. shooting down this russian warplanes. nook, putin's angry calling it a step in the back. we have the worries of serious