president francois hollande are meeting on the heels of the terror attacks and paris, taking place 11 days ago. a shot ofoking at vice president biden taking his seat among dignitaries. this press conference adds significance because president establishs looking to an international coalition to fight the islamic state. let's go live to the white house where the president on bloomberg television. it has been an honor to welcome you to the white house -- president obama: it has been an honor to welcome to the white house, but as americans, we stand by our friends in good times and in bad, the matter what. on behalf of the american people, i want to express our deepest condolences to you and all of the people of france for the heinous attacks that took place in paris.

we are here today to declare that the united states and france stand united in total consolidated day to deliver justice to these terrorists and those who sent them, and to defend our nation's. in that spirit, with heavy but strong hearts, i welcome you here today. , with yourllande understanding, my statement today will be longer than usual. i have been traveling and this is an important moment for our nation and the world. group,rbaric terrorist dash, and their murderous ideology poses a series that all of us. he cannot be tolerated, it must be destroyed, and we must do it together. this is the unity of purpose that brings us together today.

on your visit here lost you said the french love america, well, we love the french. sometimes, we americans are too shy to say so, but we are not feeling shy today. americans love france because we dedicate ourselves to the same ideals, that all people deserve life, liberty, and the pursuit of happiness. france is our oldest ally. you helped us win our independence. we helped liberate france from fascism. we are our freedom -- vor freedom to each other. we our freedom to each other. since the attacks, americans have recalled their own visits to paris, visiting the eiffel ther or walking along streets, we know these places, they're woven into the fabric of

our lives and our culture. i am grateful to the french people for the hospitality they have always shown me. the show andcomed our daughters on their first visit to the city of lights. by my bed in the residence is a picture of me and michelle at ,he luxembourg gardens, kissing those are the memories we have on, i hadnd earlier no gray hair. when tragedy struck that evening, our hearts broke, too. in that stadium and concert hall, and those restaurants and .afes, we see our own in the face of the french people, we see ourselves. that is why so many americans have embraced the blue, white, and red, and that is why americans have joined together sing the french national

anthem. we never forgot how the french said with us after 9/11 and today we stand with you. it has been noted that the did not direct their attacks against the french government or military, rather, they focused their violence on the spirit of france. by extension, under all liberal democracies. this was an attack on our free and open societies. where people come together to celebrate and sing, and compete, and targeting venues where people come together from around the world, killing citizens of nearly 20 countries, including america. this was an attack on the very idea that people of different races and religions and backgrounds can live together in peace. in short, this was not only a

strike on one of the world's great cities, it was an attack .gainst the world itself the same madness that has slotted the innocence from nigeria to lebanon to iraq. it is a scourge that threatens all of us, and that is why, for more than one year, the united states, france, and our coalition of some 65 nations have been united in one mission. to destroy these isil terrorists and defeat their vile ideology. and i president hollande reviewed our coalition progress. more than a thousand airstrikes combined with local partners on the ground have pushed isil back from territory in both iraq and syria. and i president hollande agree our nation's need to do even more together.

u.s. assistance has supported recent french strikes in syria, and he will keep stepping up the coronation. male saw with the attacking i the terror threat goes beyond, isil. airlift and intelligence is sustaining our support, and allies like france are working together to root out terrorists networks in africa. he will do even more to prevent attacks at home -- we will do even more to prevent attacks at home. building on our recent intelligence agreement, the united states will share information with france, and in the wake of paris and with threats and belgium, there is a growing recognition among european nations that they need to ramp up additional efforts to of foreign flow terrorist fighters. as part of that, i am calling on the european union to implement the agreement that has been long in the works that would require airlines to share passenger information, so we can do more gn terroristi

fighters undetected and i am prepared to send teams of our experts to work on this with our european partners to make sure we are redoubling our efforts together. regarding the broader crisis in and i president hollande agreed that russia's strikes against the moderate opposition the foster -- only bolster fuel to the rise of isil. we believe russia could play a more christ -- crucial role if restrict. we agreed the best way to bring peace to syria is through the principles reaffirmed in vienna, which require active russian support for a cease-fire and political transition away from assad to a democratically elected government that can unite the syrian people against terrorists.

finally, we understand that one of our greatest weapons in the fight against isil is the strength and resilience of our people. directly toto speak the american people. is trulyened in paris horrific. i understand that people worry something similar could happen here. know that we will continue to do everything in our power to defend our nation. since 9/11, we have taken extraordinary measures to strengthen our homeland security , our counterterrorism, homeland, and law enforcement professionals, federal, state, and local our tireless. they have prevented attacks and they have saved lives. we working every hour, every day for our security. paris, theybefore

do so now, and they will not stop. they are the best in the world. it is not just our security professionals who will defeat isil and other terrorist groups. as americans, we all have a role to play in how we respond to threats. groups like i so cannot defeat us on the battlefield. they may try to terrorize us at home against soft targets, civilians, innocent people. even as we are vigilant, we cannot and we will not succumb to fear. allow fear to divide us. win.is how terrorists we cannot give them the victory of how we go about living our lives. the good news is americans are

resilient. we mourned the lives lost at fort hood, the boston marathon, chattanooga, but we did not .aver our communities have come together. we have gone to ball games, concerts, shopping, and men and women went to serve our country and to continue to go to military recruiting offices. we are vigilant, we take precautions, but we go about our business. to those who want to harm us, our actions have shown that we have too much resolved and too much character. americans will not be terrorized. i say all of this because another part of being vigilant, another part of the feeding isrorists like isil

upholding the rights that the defined by two republics. that includes freedom of religion, equality before the .aw there have been times in our history, in moments of fear, when we have failed to uphold our highest ideals. it has been to our lasting regret. uphold our ideals now. each of us, all of us must show that america is strengthened by people of every faith and every background. related to this, i want to note that under president francois hollande, france plans to welcome thousands of syrian refugees over the next two years. refugees in the united states go up to two years of intensive security checks, including

biometric screening. nobody who sets foot in america poster more screening than refugees. we are prepared to share these tools with friends and a european partners. said, ares hollande humanitarian duty to help desperate refugees and our duty to our security go hand-in-hand. gifte statue of liberty, a from the people of france, there are words we know so well. ,ive me your tired, your poor your huddled masses yearning to be free, that is the spirit that makes us american. that is the spirit that binds us to france. that is the spirit we need today. in closing, i want to salute the people of paris for showing the world how to state strong in the face of terrorists.

even as they grieve, or they have begun returning to their cafes, riding the metro, going to stadiums to cheer for their , includingds gather a mother who brought her children, she said to let them see that we should not be afraid . as a parisian said, paris will always be paris. next week, i will be joining president francois hollande and world leaders in paris for the global climate conference. what a powerful rebuke to the be when thet will world stands as one and shows we will not be deterred from building a better future for our children. ande, my fellowan

americans, let's remember we face greater threat to our way of life before. fascism, communism, our first world war, the second, along cold war, each and every time, we have prevailed. we have failed because our way of life is strong. because we state united. we are relentless in the face of evil, we draw on what is best in ourselves and in the character of our comforts. there -- it will be no different this time. make no mistake, we will win and groups like isil will lose. standing with allies like france, we continue to show the world the best of american leadership. god bless the united states of america.

>> ladies -- in line -- nde: ladies anddn gentlemen, immediately as we found out about the terror attacks, he was the first one to call me. it was very late in france, 2:00 a.m., the president of the united states. i am glad to express his emotions, his compassion to france. night, he meant to tell me that the united states stood by france, that the help that could be provided to france with have no limit and that we had a

joint duty to pull our forces together and fight terrorism. all ofot forget either the messages that the american people sent to the french people over the past few days. the french colors, the french flags, all around in many candles andth places that represent france here in the united states, the rca -- our national anthem, it we all felt 9/11 american, but after the 13th of november, americans felt french. our two people together, emerged as one, sharing the same emotion

also the same willingness to fight for freedom and defend our values. too similar people, we each have our history, culture, background, but we , the samesame trust faith in freedom. it is france i came under attack on the 13th of november. france, for what it is, a country which we consider unique in the world because france france himhe world, under attack for what it represents, what it stands for, , asculture, a way of living well as our values, our principles, but by targeting weree, the terrorists

targeting the world. in these restaurants, cafes, as well as the concert venue, there were many women, most of them came from 20 countries at least. they shared the same passion for life and that is the reason they were murdered. thoughts are with the friends and family of a young american shared aho came as a moment of culture and joy. thehoughts also go to american band that was playing at the bataclan. occasion, wen that

were together to bring the same enthusiasm and they were hit by terrorists. group facing a terror which organized itself on the territory to have some substantial resources. smuggle drugsg to human beings. since the beginning of the year, they hit many countries and -- denmark, asia, lebanon, co. eight, egypt, as well as russia by taking down a russian plane. together, with president obama, today, we wanted on vacation of that meeting for the world to share. determination --

relentless determination to fight terrorism anywhere and everywhere. we also wanted to tell the world allow those who want to destroy what was built, we will not allow them to do it, to destroy what we built generation after generation. we will not be able -- they will not be able to damage the world. we need a response. france and the united states joined together to bring that response. it is about destroying them no takingwhere they are, out their financing, hunting down their leaders, dismantling the networks, and taking back the land they tried to control. we decided, president obama and scale up our strikes

both in syria and iraq to broaden the scope, to strengthen our intelligence sharing regarding the targets. the priority is to take that key locations in syria. it is also a matter of emergency to close the border between turkey and syria and prevent terrorists from crossing the border and coming to europe or other places and to avoid terrible attacks. we also need to work together with our partners on the coalition in iraq and to support all of those who are fighting on the ground. the aim is to make sure that these forces can be supported, helped, and all the countries

that are willing to act militarily to destroy. on friday,animously after being introduced, this resolution provided with the clear basis to act. this is what france is currently doing with the aircraft carrier in the east of the mediterranean and allowing more capability. , weerday, for the six time tracked back out. in addition, we have been providing some assistance to the framework in of the coalition. diplomatically, president obama have strengthened our corporation as early as the night after the attacks, and i

would like to commend what everything that is being done said that intelligence and information can be used to tackle terrorists and followed itir movement, said that will prevent them from doing what they want to do, because beyond syria and iraq, but they want is somehow to spread fear , soywhere so that we doubt which areke decisions exactly contrary to what we want in terms of freedom and rights, that we will not give in. that being said, we have to defend ourselves and use intelligence. to grammatically, we are working on -- diplomatically, we're working within the framework and i commend the work done by the ministers to agree on a timeline

that will enable a cease-fire and it will go as quickly as possible and to open up to process that will need [indiscernible] imagine themnnot getting together, gathering the leader who was responsible for the most of 300,000 deaths in a .ew years that must lead to their departure. the syrian crisis is relevant to the terror threat, but also because there are millions of refugees fleeing the regimes bond and after atrocities. if we were to abandon them, we

would betray what we are. this is the reason why i reject identifying migration and terrorism. at the same time, we must enforce the borders. today, people are risking their on the travel between turkey and greece. role, plays an important and it is together with turkey that we must find a position so that the refugees can stay close to the country of origin and we need to make sure that the are commencedols at the border. i will be talking to moscow's president vladimir putin and i

will tell them that france will work with russia if they concentrate military accent -- military actions against isil and if russia fully commits to the political condition in syria. this is what we want to do. ,e went together our countries all those who are willing to find and implement a political solution in syria, we do not want to exclude anyone, but we want to make sure that these political solutions can eradicate terrorism. lastly, next week on monday, we will hosting, in paris, a climate conference. i certainly could not imagine that this conference would be taking place against such a background. at the same time, i think they

cannot be any better symbol or response, but to hold the conference in paris where the weacks took place, where took the right measures in terms as wellity, protection, as defending our values. there is no greater symbol than holding this conference on animate in paris the with some 150 heads of government. never before did france coast so many leaders of the international community. coming to talk about the climate challenge and to work and find the right agreement so that we can limit greenhouse gas emissions and make sure that our children and our grandchildren live brother or simply can live,

but they are also coming to express their support for freedom, the fight against extremism. against radical islam which is becoming dangerous. coming to matter their background, no matter their religion, their convictions to express the same principles, the same values, with the same work, life. yes, simply life. i am pleased that president obama will allow us to succeed. statementsis recent over the past few weeks and months, but i also commend the commitment he has made in the

name of the united states as well as in the name of the world . it was very important that one of the most powerful countries -- if notld is not the most powerful, and therefore, with the highest level of emissions, could also likeere to face the future we have been facing history. what we will be doing early next week in paris means that we can continue to live as well as ourcked our life and children. friends in the united states, and thee history founding values of both our duty to weibo have that .ct as a matter of urgency against terrorism and at the

againste, to prepare that background, even though it is a very dire one, i am pleased to be sending that message to the entire world. thank you. president obama: we have time for a few questions. >> this is the question for both of you. where it is your reaction to turkey shooting down russian plane today? does this draw nato into a confrontation with russia? hard to keep this from spiraling out of control? president obama, what does this mean for future prospects of military coronation, more military coronation -- coordination with russia? ,nd president francois hollande what are the prospects for military coordination with

russia given what happened today? we arent obama: first, still getting the details of what happened. i expect to be in communications potentially directly with the president sometime over the next several days. turkey, like every country, has a right to defend their territory and their airspace. i think it is very important for us right now to make sure that both the russians and the turks are talking to each other, find out exactly what happened, and take measures to discourage any kind of escalation. points to that this an ongoing problem with the russian operations, in the sense that they are operating very close to a turkish border and they are going after modern

opposition that are supported by not only turkey but a wide range of countries. if russia is directing their energies toward dash and isil, some of those conflicts are potentials for mistakes or escalation, are less likely to occur. i also think this underscores the importance of us making sure we move this political trek forward as quickly as possible. beeniew from the start has that russia is welcome to be part of this broad-based coalition we have set up. there has never been a point in time where we said we do not want russia or other countries that may have differences with this on a host of other things to avoid working with us against isil. been russia'shas

focus on propping up rather than isil. i had a conversation with president vladimir putin in turkey, and i indicated to him at the time, to the extent that they make that strategic shift, focus on the vienna process where they have been instructed to bring parties together, try to execute a political transition that all parties would agree to, and refocus ,ttention on going after isil and then there is enormous capacity for us to cooperate. until that happens, it is difficult. it is difficult because if their priority is attacking the modern opposition that might be future members of an inclusive syrian government, russia is not going for a the support of us

range of other members of the coalition. but i do think there is a possibility for operation. the sooner we agree to this political process, the less likely that you have the kinds of events that took place, apparently, today. hollande: the event that took place was a serious one and we can only regret it. turkey is currently providing all of the information to nato so that we can find out what really happened and whetherturkey's airspace -- and whether turkey's airspace was indeed entered into, but we must prevent an escalation.

that would be damage of -- that would be damageable. the only fight is against terrorism. this is what we must do. all of us. , and what, russia means that we must find a solution to the syria crisis because we can see what the risks are of escalation. i, therefore, will be traveling because wehis week have this resolution of the security council, and it does show we must take action against terrorism. that resolution has been voted unanimously carried in a way that was the broadest possible coalition.

then we will ask president , as i have them before, when i told the russians a number of times already, that the strikes must be against terrorism. those who are threatening us. they are threatening the russians like ourselves and europe. coordinate ourselves, but on that basis and with all acting against daesh and that we are part of the political process that leads to a solution. the parameterst of the solutions are and are not. isnote that there [indiscernible] today.

the aircraft carrier is in the east of the mediterranean now. as a matter of fact, there are also russian forces, therefore, i agreed with president putin that we must share our intelligence so that we can act in coronation and not contradict ourselves -- active coordination and not contradict ourselves. >> mr. president, the americans have some special forces in syria beyond -- and beyond what is happening, are you going to send special forces as well to syria? are you considering ground intervention there question mark mr. president, beyond the emotion we can feel here, beyond this beautiful statement, for more than one year, we have heard all of you saying the

political transition is necessary in syria, mr. president, can you share in front of us and tell us a specific deadline? i can't speak in english if it is needed. i got theobama: no, transition, but you said president and there are two presidents. hollande: i will not becauseyou with a date it must be as soon as possible. that is one of the requirements. at the same time, allow me to underline something. there is a new mindset now.

the crisis in syria has been going on for four years. there are probably more than 300,000 deaths. this is not just relevant to the countries of the region, which are seeing the refugees, it is relevant to europe and the entire world not with the refugees. those who believe that we could wait some more and that in any case it was far away, they now realize that we have an influx of refugees and the risk of terrorism is everywhere. we therefore, must act. you also asked me what we were .oing to do, what more we will intensify the strikes, we will have to move specific

targets to make sure that their includingcut off, their command centers, the centersarrying, trading . we will continue and we will intensify our strikes at the heart of the city's which are currently in the hands of daesh. france will not intervene militarily on the ground. their forces to do so. we have been supporting them for a number of months and we will continue to do so, and they will do their job on the ground after our strikes that will enable them to do so. it is absolutely necessary.

me maket obama: let some broader comments about the operations against isil. , we have takend thousands of strikes, thousands including toprs, commanders and leaders off the battlefield. squeezed their supply empowered and our local groups that are pushing injar,t them, including s we are providing training and assistance to the iraqi government as they prepare to thate places like ramadi have been overrun. we have seen some success, but the question now is how can we accelerate it? in fact, even before the tragedy in paris, i have gathered

together my national security forces. it had been one year, to review where we have made progress, what worked, what did not, and we put together a plan to accelerate and advance the pressure that we can place on isil. to execute on those plans, but we also think, as francois hollande said, there may be openness on the part of other coalition members to provide additional resources and assistance to the coalition and to local forces on the ground. aside, irespect to mr. think we have to let the vienna process play itself out. it is our best opportunity. the notion that they would be an immediate date in advance of us getting a broad agreement on that political process and details i think is not make

sense. as soon as we have a framework ,or political transition potentially a new constitution, collections, i think it is in that concept that we can start tuesdaywith mr. assad ing to run and eventually see a new syria a merge, but it will be hard, and we should not be under any illusions. syria has broken down. it began to break down the moment that mr. assad started killing, indiscriminately, his own people. isil was able to move in, in part, because of the thorough rejection of the syrians on the assad regime and that emerged.

it is going to be a difficult, tog, methodical process bring back together various factions within syria to maintain a syrian state and institutions and to create the kind of stability that allows people to start coming back in and rebuilding their lives, but it is possible. the urgency that we have seen, eitherfore paris countries like russia, realize that cannot be there too long and winning the military battle successfully. olivia, next. >> thank you, mr. president. mr. president, could you tell us where the russian plane did reach turkish airspace and giving the fury of aggression response on diplomatic and rhetorical fronts, how concerned

are you that there might be a military component, if not in turkey, but expanded inside syria? with newesident, measures when it comes to strengthening the corporation on military intelligence, have they been taken months or weeks ago, did you think they would have prevented terror attacks? obama: we do not have all the information yet, so i do on want to comment specifics. we will gather that information and we expect turks to provide information, and i'm sure the russians about information. we will be able to confirm what happened to our own intelligence and tracking of the border area. as francois hollande indicated, my top priority is going to be to ensure that this does not escalate.

hopefully, this is a moment in which all parties can step back and make a determination as to how their interest are best served. the russians had several hundred people of their own killed by isil. the flow of foreign fighters the russian areas and into syria, poses an enormous long-term .hreat to russian territory there is a potential convergence of interest between the various parties. it requires us working with them to make the kind of strategic shift that is necessary and i for talked to putin about five years now. it requires a recognition that the existing structure cannot gain the legitimacy to stop the

war,and until you stop the you will have a vacuum in which these kinds of terrorist organizations can operate more effectively. let me say one last thing because i tracked the question you posed to the president hollande on what could and could not have been prevented. all of our intelligence personal here in the united states, across the atlantic work tirelessly to disrupt plots and prevent the terrorist attacks. the vast majority of our disrupting plots are not advertised. you never hear about them, but were it not for the dedication of those intelligence and law enforcement and military professionals, this would be a much more dangerous world.

you have to be careful about speculating about what if and could have and would have in situations like this because it is hard. you have eight individuals with light weapons and that is a hard thing to track. what is true is that we can do a better job in coordinating between countries, and i have been talking to our european partners for quite some time now about the need for better intelligence sharing, passenger name records, working to ensure when people enter into europe, particularly now, that the information across various orders is shared on a timely basis and you have biometric information and other

technologies that can make it more accurate. it does not mean it is always l proof, be 100% foo but we can do better on this fronts. beenf those challenges has , frankly, in the past several years, you have different legal traditions, concerns about privacy and civil liberties, all of which are legitimate. i do not think those can be parted now because that is -- those are part of the values and that us who we are we have to adhere to, but i do think that this is a reminder that this is a dangerous world, and rooting out small bands of terrorist groups who maintain good operational security and are using modern technologies in

ways that are hard to track, that is a tough job and we are going to have to put our resources much more effectively together than we have in the past. i think when francois hollande goes back to europe, his leadership, the leadership of other presidents and prime ministers around this issue is going to be as important as anything we do. hollande: allow me to is.ack to what daesh truly it is somehow an organization , a terrorist group occupying a territory in iraq and they wantling dishonor rules that

humanity. this is what they are doing their. this is what they are trying to do in other countries everywhere . family have to deal with the number of networks -- and then we have to deal with the number of networks in different countries that are being used to like withr attacks the case in paris. they had dreadful plans that were prepared in organized in a and therecountries, were some accomplices and france -- in france.

those who committed these acts of war. if we want to tackle terrorism, we must act not only to destroy daesh, where they are in syria, iraq, but we must also dismantle destroyed their networks. how can we proceed? first of all, militarily, by intensifying our strikes, taking thanks toerritories the local forces on the ground and we can find a political solution in syria while making sure that the territorial integrity of iraq is restored. this is what we can do. iven it comes to protect measures to protect our people and our territory, this is what -- have toeradicate

do to eradicate the networks and their accomplishments -- all of their accomplices. arrived, and others have been there a long time, and they are not necessarily identified as a threat. it is therefore necessary that we cooperate in terms of intelligence. generated atacks lot of emotion, but that is not enough. , i take note of it, but we must act. for a number of days, i have been trying to convince all the countries that can act to do so. i met with david cameron yesterday. he announced that he would take a number of measures into this parliament.

that is important. so we can actre with greater intensity and coherence as well. withrow, i will be chancellor angela merkel, so that european countries, including germany, can face up to their responsibilities in terms of military intelligence and police corporations and may be more, and we also traveled to moscow -- and we will also travel to moscow so that russia can take action against daesh. receive the head of the italian government and we will have an opportunity to talk to all of the european leaders given that the european council of turkey will be held on

sunday. it is all of that where we must get together and enable us to implement coordination, corporation interactions so that daesh and the networks they use. it is that strength that will disable it to succeed. today have to develop coordination. >> does it make a single coalition, which you mentioned inconceivable to have the russians and the americans to work together under a single command? and you said you cannot put a date on it, doesn't mean his departure is not a prerequisite for the future of syria? : regardingollande

the coalition of international community, i believe the coalition is approved by all of the council and enables us to say that now, the entire world is committed to fighting against daesh. this is what i will check when i travel to moscow. we need one single goal. that is to tackle terrorism and fight against daesh militarily so that we can have further corporations and coordination militarily. at the same time, we have to be clear when it comes to the political solution. andone that will enable us likely have said, i can't repeat it, it cannot be the future of syria.

in vienna, they are working with all of the countries, even though they do not have the same defense, turkey, iran, the gulf countries, the united states, france, and all of those who are committed to find a solution that we must work on that transition. sad transition where as plays no role because he has been the problem and we need a solution. president obama: we have a coalition of 65 countries who have been active in pushing back against isil for quite some time . france has been a central part haveat coalition as european countries, arab

, countries as far-flung as australia and countries in south east asia that a part of the coalition. russia right now is the , iran andof two russia, supporting assad. russia's military capabilities and given the influence they have on th the a ssad regime, then cooperating would be enormously helpful in bringing about a resolution of the civil war in syria and allow us all to refocus our attention .n isil i think it is important to remember that you have got the global coalition organized. russia is the outlier.

we hope that they refocus their attention on what is the most substantial threat and that they serve as a constructive partner. if and when they do, it will make it easier for us to go after isil and daesh. i think it is important to recognize that the types of airstrikes there carried not, just like the ones we are carrying out, in and of themselves and not sufficient. the work that we do to bolster the local fighting forces, the cutting off of supply lines, il, reducing the flow of foreign fighters, the intelligent work that needs to be done, all of that is something that we are doing now and that they can supplement. processgoing to be a

that involves hard, methodical work. it will not be something that it's not going to be something that happens just because suddenly we take a few more airstrikes. and that is the kind of hard work that i know francis prepared to do, the united states is prepared to do, and perhaps in the future, russia will be as well. ok? thank you very much, everybody. >> the president of the united states joined by the president of france, president along. -- hollande. he says we stand by our friends in good times and bad, he continued that u.s. and france stand united in total solidarity. for his part, francois hollande

said france in his words had been targeted because those who were killed share the same passion for life. terrorists must be eradicated, and he added that radical islam is becoming, in his word, dangerous. bloomberg's kevin's early is standing by. i was struck by the town, particularly as relates to russia. mr. obama says you got a global coalition organized, russia is the outlier. is the sense here that the united states and others can build a coalition, but they really need russia's help to get this done? president obama said there was a new convergence of , asrests regarding russia well as the broad 65 nation coalition internationally. the planef course, crash between turkey shooting down a russian plane just hours ago. for thisckdrop

dramatic one-hour press conference between president obama and president åland -- president hollande. he spoke bluntly about really it's only russia and iran going alone, if you will. that, of course, they do need their support. it would make it a lot easier, president obama argued, to defeat the islamic state terrorists, they would be able to do it without their help. -- mark: kevin joining us from washington, d.c. -- they said they share the same history, but the fight against islamic terrorists in this interest, particularly isil must be waged on a global front. day."ow for "market alix steel and scarlet fu standing by. scarlet: more reaction from turkey's downing of the fighter

jet over syria has heightened tensions and collocated the international campaign against the islamic state. alix: joining us from paris is , he gardner -- hall gardner was just in istanbul two days ago talking about turkish and russian relations. thank you for being with us. i know it's quite late at your hour. what was your biggest take away from the press conference we just heard? hall: russia and iran are the outliers, that was the last remark. why is that? union, the former soviet establish this fear of influence in syria. russia is worried about losing a sphere of influence as political , economic influence, it's naval base. but most important like, it's anried about the fear that islamic movement would take over the syrian regime and spark further revolutions, islamic

resolutions -- revolutions in the northern caucasus and central asia. therefore, russia's holding a strongly as i can and backing a d as strongly as it can to prevent this fear of an islamic territory. russia's backing a loser, and it's time to find a new coalition government. what i propose here is that russia begins to reassociate itself with some of the syrian nationalist party, begin to forge a new coalition government inside, and invite a sod -- assad back to russia and forge a new government. this would bring russia on boarded syria, and protect this national strategic interest. it's based in the eastern mediterranean. goals forto make

their strategic interests. there is a way to work things out. alix: do think resident holland -- president hollande can convince president putin? hall: it depends on what they say. the russians only been working for four years. hitting them to realize they are in a losing battle in supporting us on -- assad. no one in the syrian nationalist organization will work with the coalition government as long as assad is there. position the central in syria and iraq, it's in a position now they can strike it terrorists, they can strike at the russian jet in sinai,, etc. the russians have to understand that they don't fight against isis, they're going to lose out

there too. they have to adjust their policy. russia's mentioned sphere of influence and want to hold onto that. part of the vulnerability has been nato increasing its -- making headway into russian borders. what role does nato play in this kind of coalition, and vladimir putin? this is where i'm against nato alone going into syria the way some people have suggested. it's absolutely essential the russian be part of the coalition. the problem is russian has seen nato expand all the way to its borders, the balkan states in particular. part of the crisis with the turkish -- turkey shooting down a russian jet is that russian jets have been going into nato just turkey but the baltic states, and even non-nato members like sweden and finland. the canadian border, the u.s. border, they have been

overflight and testing our defenses. so when the turks shot the plane down, that was in part in fear that russia might be investigating its command operations inside turkey, or just testing its defenses. it could have also been a plane flown by the syrians. create -- well need to de-conflict russia and turkey, find a way to bring the two to talk about this in common down as much as possible. turkey went immediately to nato to talk about it, and said why did they talk to nato first, not to us? it's the kind of thing that blows things out of proportion. scarlet: neither president would give a deadline for a solid -- assad to go. what is likely to happen behind the scenes as they push for his exit? hall: russia proposed an 18

months -- he could stay in 18 months once they got organized the french have been pushing for a sooner date almost immediately. there is a copper mine is going on, it's impossible to get -- a compromise going on. it's impossible to get assad out with a timeline. the syrian demolition -- coalition will not work if as sad is there. it can be someone from his government who doesn't have the same responsibility for war as he does. what kind of leadership did you hear from president ,bama and president hollande and what would you want to of heard? hall: the two of them really were moving closer together. i feel that intelligence sharing

is important, the french are asking for more american military assistance. i do not believe that boots on the ground is the right way to go, and therefore i agree with obama on that point. i feel that boots on the ground --/--spark an islamic backlash that would create even more danger. that's why some of the proposals i'm hearing are not appropriate to the crisis today. pretty much on board, but i think that they really have to work on rebuilding the russian relationship. inma has to take the lead negotiating with russia, not only on the syrian crisis, but on the ukrainian crisis, finding a way to perhaps propose a neutral ukraine, for example, to assure the russians that nato is not going to expand any further. this would help break the ice and perhaps bring the russians on board with syria as well.

what i need is a more general settlement with russia, not just a focus on syria alone. gardner, thanks for giving us your reaction to the presidentrence from françois hollande. scarlet: we're right back with more "bloomberg markets." ♪

scarlet: you are watching bloomberg, i am scarlet fu. alix: i'm alix steel. scarlet: mark carney testifies on the health of the economy. what is the have to say about outside pressure to make a move on interest rates? alix: deutsche bank's co-ceo

gave a warning that a traditional structure and bankrate has to change. scarlet: nestlé uncovers of uses from a supplier in thailand. what does the company plan to do going forward? let's start in the u.k.. bank of england governor mark carney testified before the treasury select committee. he says the u.k. will have low interest rates for some time and pushed to resist external pressure on the central bank's actions. >> we will always be subject to pressure and we will always be subject to pressure from banks, insurance companies, from other interested parties. it's our job to resist that pressure, and to ask when our actions to people of united kingdom. deutsche bank code chief executive officer john cryan said bankers still learn too much money, and are often promised rewards to quickly. speaking at a conference, he said the bank needs to recalibrate the way it pays staff to reflect the time they

generate value. the us is that managers that slow down the bonus process so employees are rewarded before their work comes to full fruition. alix: the indian prime minister is pushing to strengthen investment ties between singapore and india. he says reforms have been made on his watch as the two countries elevated their relations to a strategic partnership. i.e. global insight chief asia economist spoke on bloomberg from singapore. >> increasingly, singapore is becoming the natural international financial center for india, in a way that hong kong played that role for mainland china historically. i think that's the direction we're heading as india becomes more and more important. as a key global emerging market. i think that will be one of the biggest ranks in the future. nestlé uncovered abuse and forced labor by seafood suppliers in thailand. migrant workers are subjected to hazardous conditions in the

country three the report, commissioned by nestlé and found signs vérite of forced labor, trafficking, and child labor are among sea-based and land-based workers. earlier this year, the european union threatened to bandit ties seafood imports if the country failed to improve regulation of its fishing industry. alix: as crude oil continues to slump, abu dhabi's investment arm is continued -- considering selling a part or all of its chipmaker. they've held early talks with potential buyers than a value that business at up to $20 billion. scarlet: that is your global business report. for more stories, visit bloomberg.com. let's head over now to the market is where julie hyman has been checking out individual movers. certainly while the president of france and the president of the u.s. holding a news conference, we were looking at the market, but not by a whole lot. julie: we were lower earlier. it represents a recovery from

earlier. as everything's been going on with turkey and russia, as we heard the president -- presidents, i should say, speak, we had investors assess what exactly the downing of this russian jet is going to mean for the economy in the region, for the global economy, and as they've done that assessment, and it seems as though there were at least some optimism that it will be contained, we have seen stocks recover at least to some extent. the dow has been the upper former of the day. if you look at the stocks that are doing best within that index , confirming most of the games coming up to oil stocks. oil prices are higher, we get to that in a moment. and apple is rising after rbc said the company's new ipad pro be a winner for the company, and could generate $2.4 billion in revenue for apple. the shares appear to be rebounding on that. on inms of what's going the s&p 500, take a look in my bloomberg terminal. withcting what we saw exxon and chevron as well, energy stocks were the best performers for away.

materials also doing well. and you have a drag from utilities and financials through the push and pull that we see in today's session. ath energy up, take a look oil prices. we are seeing the biggest today gains in september. 3% today. even the stock investors are not expressing that much concern over the events in turkey, we some perhaps optimism or pessimism, depending on how you look at it, that there would be some crimping of the oil oil prices heading higher. but take a look at currencies. we've seen a little bit of a desire for haven express today, and that means the dollar has been going lower than the japanese yen. the euro has held up relatively well. has been goingnd lower as well after bank of england governor mark carney said that changes in interest rates they are will be gradual. and finally, the treasury market here in the u.s. looks like there is not necessarily the haven demand to be expressed

there. we're not seeing buying of treasuries, the 10 year yield a steady at 2.24%. actually some selling on the shorter end of the curve. i believe this is now the seventh straight session that we've seen a selloff in the two-year with those yields going higher. scarlet: a very interest-rate sensitive to your treasuries as well. julie: lost in the shuffle, we got gdp data. a higher revision for last quarter. scarlet: 1% versus the original 1.5%. alix: will the demand really be there? will manufacturers have to produce more? thank you, julie hyman. scarlet: 72% of traders believe the fed will raise rates in december. how should investors act when that happens? ♪

scarlet: welcome back to

"bloomberg markets." i'm scarlet fu. alix: alix steel. drew -- gdp indicates a strengthening economy. scarlet: as we approach the summer fed meeting where many are predicting the central angle will raise rates. let's check in with carol massar and cory johnson. cory: we're joined by heather ghe.is ti fed indicated likely a hike in december. it went up to 74% today. bet saying the hike will happen in december. heather: the market in fed officials of finally gotten on board the december rate hike. i think there's been a shift in sentiment in the market, it was

starting in september. up until september, people were the market view the rate hike as something that would put a damper on growth. it was really viewed in terms of the u.s. beginning the height while europe and japan continued to simulate -- stimulate their economy through central-bank policy. in september we began to see the market when the fed failed to raise rates saying what does the don't?w that we these job numbers, there's something we are missing. i think that sentiment has become more pervasive, so much so that i think a december rate hike will be met with less volatility than we previously expected. i think the market now views it as a sign of economic stability, versus and ending. --cory: theed said fed said the job growth is arguably not a strong now as it was nine months ago. think about way i this is we are and basically a

0% fed bond. we are at some of the strongest consecutive levels of job additions we've seen in like 40 years. we don't need to waste perfection for the first rate hike. that would be something that's a more advanced stage of the rate hike cycle. if youre good enough, strip out energy and food, which that's not necessarily what you do, when you look at, they are important, their big components, we are running about .5% below the fed's expectation. if you consider energy to be a volatile field, which the fed has seemed to say, that could be what they are looking at. jobs coupled with -- carol: the fed has a dual mandate, inflation watching the labor market. in marketlk about it sentiment and market psychology, i'm curious if you think that the fed mistakenly is watching too much into closely the market environments, and what investor sentiment is, or do you think that's the right focus by the fed? heather: i think they do take

into consideration, to the cannt of market sentiment drive volatility, can drive market prices, and can drive outcomes. heldthink that when they off in september, when they saw that sentiment shift to more of an expectation in the hope that the fed would see that the economy is good enough, that has probably bolstered confidence in the markets ability to withstand a rate hike, which we been waiting for for so long. carol: does it with the market and investors in the driver seat? is that a mistake? heather: that's a tough question to answer. there is certainly been enough data on either side to keep the fed in a position where they held off in september, that was a tremendous amount of volatility in the markets. i don't think it is safe to say they held off because investors did not want to see a rate hike or because they could be more volatility. i do think it was because of a we were seeing going on in global markets at that time and the dollar. but definitely has an impact.

cory: where will the first impacts be felt? bige talking about a very increase, it's been historically low. we do expect a change. where will we see a first show up in the economy? one might have normally set housing. in this case we see banks starting to loosen up and linda moore. even in rising environment, they may still lend more. heather: you'll probably see this in two places. the first place will be the bond market. hawkins ofk about the market which of experienced a tremendous amount of appreciation in value, potential overvaluation, it has been governments bond market in the u.s.. that's one place which i think you will see some deterioration in pricing. the second place is potentially the u.s. equity markets. should we see a rate hike or consecutive rate hikes, and showed that push the dollar even

further from here? even though we are ready experienced a good amount of dollar appreciation, it's one of the best-performing asset classes of the year. we continue to see some weight on earnings. cory: heather, thank you for coming by. back to you on the tv side. scarlet: thank you for all johnson -- cory johnson and carol massar. upx: how retailers dealing -- gearing up for small business saturday? we have a preview. ♪

scarlet: from bloomberg world headquarters, welcome back to "bloomberg markets." let's start with the headlines.

mark crumpton has the headlines from the news desk. mark: the leaders of the united states and france say they agree they must do more together to defeat islamic state. president obama and french president françois long address -- francois hollande addressed reporters and called an attack on paris an attack on the world itself, and say the terror group must be eradicated. president obama: this barbaric ,errorist group, isil, or daesh is a serious threat to all of us. it cannot be tolerated, it must be destroyed, and we must do it together. men held talks in the oval office. that meeting as part of a frenchtic push by the president who wants to form a national coalition to fight islamic state. francis file charges against 124 people since the state of emergency was issued after the paris attacks.

that's according to the country's interior minister, who told lawmakers today that more than 1200 searches have been carried out with 230 weapons recovered. he provided no details on the charges for the 124 people. november 13 violence killed 130 and wounded hundreds of others. a u.s. defense official in washington and a nato diplomats say a russian plane did enter turkish airspace before turkey shot it down. the plane reportedly flew across a two mile section of turkish airspace, meaning it was in that area only for a matter of seconds. the diplomats said the turks sent 21 mornings in five minutes. russian president vladimir putin calls the downing of the plane a stab in the back. the state department issued a travel warning for americans, the department warns that terrorist groups are likely to be planning attacks in several regions. americans are being urged to be vigilant when using transportation networks were going to public places. can get more on these and

other breaking stories 24 hours a day at the new bloomberg.com. from the bloomberg first world -- first news desk, i'm mark crumpton. there's a lesser-known shopping holiday, small business saturday. where consumers are encouraged to shop small and support local retailers. arelet: small businesses showing little enthusiasm heading into the holidays, according to the latest monthly reading by the national federation of independent business. for some perspective, we are joined by maria contreras-sweet. she's a member of president obama's candidate. competemall businesses with black monday? they have knowledge about products, programs, and services, and more latitude on what they can do in terms of pricing. and they have unique products. when you spend in a small business, $.58 of that dollar

will stay in the neighborhood. these are places where we can convene in creative live in our community, and a sense of belonging. scarlet: it's hard to compete when you see 50% to 75% off sales on amazon with free shipping. what kind of discounts do they forced to offer? be a: i don't want it to battle between large and small. but what i can tell you is as an owner, you know what your margins are, what your breakpoints are. to are in a position negotiate. when i walk into a large department store, i like those sales. but the workers there aren't empowered to give me a deal, where the business owner can negotiate with me. if they don't have exactly what i want, they can custom order it for me. they can make it for me. so i really appreciated that at the end of the day, i hope this has been a fast race to the bottom of pricing, although i understand pricing is sensitive. you will get them the unique, and you will create a sense of community, and a sense of

belonging, and knowing those small businesses are going to hire local people, and that dollars are going to stay in that community, i think that has value. scarlet: there's an attractive narrative there, and as part of the experience. i want to broaden this out in little further and talk about small businesses in general. the nfib publishes a series of indexes, and if you look at hiring plans by small business owners, it's been making a pretty steady recovery from the lows in 2009. almost back to the highs of 2007 , which of course, leads to some and comfortable parallels in comparison. do you see small businesses drawing comparisons to the days before the financial crisis? experienced the 68th month of consecutive job growth. the majority of that came from small businesses. so what we see is that small businesses have a great deal of confidence in the future. they're taking out more loans than ever. that allowed us at sba to reach historic lending levels. when someone goes into a bank, if they might be turned down,

some people don't have a wealthy sba, we havethe uncle sam. we can come in and be a guarantor for their loans. we just reached record levels. the federal government, the largest procurer in the world, reached record levels in procurement from small businesses. one in every four dollars that was spent was spent with a small business. innovating,sses are coming up with new things, they are over indexed on innovation. in fact, if you recently saw the mars rover curiosity in the movie the martian, you would have seen six of our small businesses that helps create that rover, and that's the kind of thing that's going on -- innovation and unique products. i hope that people understand that there are big corporate brands that i support and love, there is no brand better then made in america. and that's what small businesses are doing today. you are creating local brands, and in today's economy, small businesses are also exporting, which is really kind of an

exciting thing. when you asked about the state of entrepreneurship, more and more small businesses are saying how i capture the consumers? 95% of the world consumers are outside of the u.s. borders. and so that's why we are pushing really hard on the tpp agreement to help them navigate. alix: you mentioned exports. the other thing we hear in the business community's wages. we've seen a lot of wage pressure on the upside for walmart, target, and gaps of the world it's been pressuring their margin. what do small businesses do it they are caught up in the wage competition, but they are also smaller, so their margins may or may not be center? it's tough.a: i have to speak for small businesses, that's my role. small businesses say to me that they are employing their own family members. they want a little wage. they want to make sure they are competing with the corporate community. in many instances, they have to make those prices.

the good thing is that the aca allows now for small businesses to get a tax credit when they sign up under the aca program for the services and the benefits they are providing their employees. scarlet: i have to ask you a dumb questions. -- do smallsiness businesses want to stay small or do they want to be big? maria: i put them in three categories. some say want to be a gazelle, i want to go to scale. we have programs from startup to bele up, some say i want to mainstreet america and have a business that provides for my family, and that's what i'm interested in. and some just want to have a hobby. we provide programs for entrepreneurs that want a hobby or want to scale up. today that are starting businesses represent one in 10 small businesses today. and one in five people who work for a small business are probably working for a veteran. women own 25% of small

businesses today. we've seen a change, it's becoming more diversified. thank you. we really appreciate it. thanks for coming by. administrator of the sba and member of presidents -- president obama's cabinet maria , contreras-sweet. scarlet: get your light sabers ready, the newest "star wars is weeks away. toys tales -- toy sales skyrocket. alix: a baseball size droid is the toy to have. it sold 20 2000 units in the first 12 hours it was on sale. -- we what the cofounder speak with the cofounder of the company. scarlet: it's been a record year for m&a so far. will it continue in 2015? ♪

scarlet: welcome back to "bloomberg markets." the bloomberg for business flash, you look at the biggest business stories in the news right now. the u.s. economy grew faster in the third quarter than originally estimated. gdp rose annual rate of 2.1% from an initial estimate of 1.5%. revisions show the pickup in growth was concentrated in stockpiles, inventories grew nearly twice as much as previously estimated. scarlet: home prices climbed. the rating from s&p case schiller was the strong some 15 months. prices nationwide increased 4.9% overall. alix: u.s. bank profits in the third quarter increased 5% from year ago. banks earned a little more than $40 million, according to the

fdic. lower noninterest expenses were primarily behind the increase. you can always get more business news at bloomberg.com. let's head to the market desk where julie hyman has the latest, checking out analyst calls from today. having a huge reaction to an upgrade over at citigroup. , it'sas done very poorly an underperforming. today the shares are surging by 22%. citigroup is updating the stock to a by from a neutral. the price target here is five dollars. analysts are saying the operations in brazil are not quite as unhealthy as we had expected them to be. also the company has a january 21 investor day coming up, at that investor meeting, avon could announce plans to fund a reinvestment in its business. there had been liquidity concerns surrounding avon. so that reinvestment would be a big deal if it does happen.

that accounts for this game we are seeing today. u.s. steel is another we are watching on analyst call. this one from bank of america, merrill lynch. the price target being cut to three dollars a share. you can see is trading at 764. more than half where it is right now. making thisica is call largely based on its forecast for steel prices. also it says it continues to have concerns about u.s. steel liquidity into 2017. in the pricing the steel market will not enable u.s. steel to return to profitability. another call from bank of america, merrill lynch in a very different industry. box, thelving enterprise company and cloud storage filesharing company being upgraded over at bank of america. the enterprise were activity a strong, according to be of a. 1350, seeing shares at ,bout $.50 shy of the ipo price the company i feel it back in january at $14.

recovering to near those levels today. scarlet: thank you, julie. call it the jedi effect. retailers are counting on star wars toys to knock sailed out of the galaxy. can the star wars franchise deliver? alix: by toys, you will. bloomberg's ramy inocencio digs into the force awakening. ramy: the force awakens in the dark side returns. billion a potential $1 in star wars toy sales. in the heart of new york's time forre, toys "r" us is ready star wars fans to storm in. driver fora huge consumer products, and for the toy industry overall. we are seeing great sales now, we're going to get a big peak around 1218. i'm excited about what we will see next year when kids see the movie. the kids collecting across the

whole star wars world. berry led the unprecedented star wars rollout. two years in earnest in planning for we have executed in the stores. we settled our space and the majority of our stores. toys "r" us is packing the shelves with historic characters like and reintroduced r2-d2, and a reengineered the owner with robotics technology. along with new characters only teased in trailers. >> star wars is the biggest property in the toy business history. we are talking about $1.5 billion worth of toys sold this year. ramy: jim silver says it's because star wars fans span generations. you can have star wars fans that want star wars toys, and then you can have collectors from the 70's that neither action figures. as the customer base has

grown, so have the number of toymakers looking to profit. >> there are over 100 licensees, you have mattel. less and you have well-known toy brands rolling a blockbuster toys. them ispany like getting a huge about. not a lot of people has heard from them, and now they are on everyone's radar. you're lucky if you can get it. ramy: the millennium falcon thrown is another hot toy. >> it won't be around when the movie comes out. it will be sold out. ramy: retailers are positioning themselves to be the destination for star wars toys. >> we want to say the place to come is toys "r" us. the countdown to star wars and christmas, retailers will be battling for customers, hoping the force will be with them this holiday season. [laughter] ramy: ramy inocencio, bloomberg

news, new york. gardet: did you say en before you battle each other? he has never seen the star wars movies. you just attack. nothe point, it's really about the movie, it's about all the toys you can sell, and the paraphernalia after the fact that going to make that such a blockbuster franchise for disney. scarlet: do you know anything about the characters? my son was a character for halloween, and i don't know anything about him other than he is bad and has a scary mask. alix: they're a great conspiracy websites, but we don't actually know anything. the thing is, you can sell toys even if the movies are good. jar jar binks sold, and that was not a good movie. scarlet: no one will confess to having jar jar binks paraphernalia. alix: speaking of selling, coming up on "bloomberg markets," one of the hottest bar wars toys, that roly-poly

b8 the company. benefiting from teaming up with disney. ♪

scarlet: welcome back to "bloomberg markets." the most popular star wars toys has been the app controlled version of the droid bb8. is showcasingany the marketing power of disney and star wars. joining us now is adam wilson, the cofounder of the company. welcome. how did you team up with disney? adam: we were robot people, making robotic walls that people

can play with on their smart phone. tech stars holding a accelerator program. our company was like we are really good at robots. it would be amazing if we could give it some character. without disney was the best in the world we apply to their program. we were accepted. we knew what we were making, they knew what was coming. alix: how long did it take for you to get started on the process of coming up with the bb 8 droid? adam: we had a meeting with bob iger, and he said do you even know what's coming out? we were blind to that. he said star wars seven has a rolling ball of pedroia. dr we said -- rolling ball oid. and that's how it all came together for us. alix: we have one on the table right here. adam: it's not currently hooked

up to my phone, we could get it. alix: let's show how it works. did you have total creative licensing over this? where did disney have a strong hand? all disney. lucas told us how to make it. alix: we will show it after the commercial break. scarlet: philip -- fill us in on how much disney informed you about the plot line bears cause -- because we don't know much about the story line. adam: they were very secretive about this information. it was like 20 questions. does it role like this, doesn't move like this, it was yes and no. thelet: you asked them questions, they told you what you need to know what i need to know basis. adam: exactly. we know about as much as everybody else. we've seen some animations of the thing and a lot more noises than other people might hear just put it in the app. scarlet: you didn't see the movie ahead of time? adam: we get to see it early.

we rent a whole theater out. alix: how does the revenue sharing work out? adam: is the standard rev share of the license deal. they get 12% or 20% based on how over many we sell. alix: do you feel like you will have more cooperation with them in the future? we heard there might be two more, these are just the nerd rumors. adam: i feel like the nerd rumors are pretty true. it solidified our relationship with disney. this isn't the only character they want brought to life. and we are really good at bringing things to life through robotics and smartphone technology. andlet: how does the droid this excess around it or buzz around it help your funding? did it make you instantly more recognizable? adam: before we joined the tech stars, we just secured $50 million of funding. in the pipeline

would just shelled and we are going to make it much better and do this. alix: i was going to ask what your revenue mix is, how much of revenue will come from bb8 versus others. adam: currently at 75%, but after the movie, i expect to go up even more than that. scarlet: i think of working with disney being like a lot of people familiar shoulder and making sure you don't turn the wrong way or apply the wrong color. did you feel like there was a lot of oversight, not a lot of handholding, but a lot of scrutiny? adam: absolutely. this is never been seen by anybody before. r2-d2, you've seen that. you could go look up with movie references. for this, they wanted us to get it really, really, really perfect. if you look at the declaration, it took over 200 handprints, the manufacturing technology of how you make every little design on there, it just took a lot of work to make it all perfect. i think it was worth it.

as they did make sure we got every angle right. scarlet: how many people worked on the bb8? adam: 45 people. alix: what are your plans for your business? star wars is going to be a huge thing coming out, what is next for you guys? adam: before this, we had a whole other world of home robotics. was a veryall popular thing for kids to learn that a, and for people to play with. but then we were like how we make this even further into the future? home robots that have personality and creativity. they're not just utility. it's just a little character that you hang out with. so we have some cool stuff coming that was like that. this is just when you play right into it. we will just make more characters, and some of them will be licensed and some of them won't be. balls?: why adam: we wanted something you could throw in your backpack, a

kid can't break it, they are almost indestructible. it's a new mode of transportation most people haven't seen. you've seen walking robots, you've seen ones with tread, all this other stuff, but you never seen of all robot. alix: this is entirely true. we will see it at "star wars." adam wilson, cofounder of spiro. scarlet: highlights of resident obama's meeting with francois hollande. formerupdates from the director of intelligence. that's coming up on "bloomberg markets." ♪

>> welcome to bloomberg markets.

♪ >> from bloomberg world headquarters in new york and a good afternoon. here is what we're watching this hour. president says they stand united against islamic state. it has been a record year for than $3.4ore trillion. star wars toys are already divorced to be reckoned with. a look at how big a business they are expected to be this holiday season. first let's go to the markets desk. i would rather talk about star wars toys. imagine i will be a shopper of those items. a recoveren