down where we stand, there have been multiple attacks in brussels. .wo explosions according to the news, there are currently 28 dead. many more are injured. authorities have confirmed the airport attack was a suicide bomber. jon: let's get you up to speed on the market reaction this morning. futures in the u.s. of little softer. s&p 500 index down by eight points. the ftse 100 down by around .5%. the stoxx 600 travel and leisure index down by 2%. air france, the airline, one of the biggest losers.

the other, --. bund yields down by three basis points. 1.h the pound at 42. increase the argument to leave the eu. the pound or reacting clearly. i want to go to london and bringing guy johnson. bring us up to speed on events as they unfold. a lot of news. started before the market opened. we saw the attacks taking place at the airport to the northeast of brussels. two bombs going off. we have seen the pictures coming out of the departures lounge at the airport. the second attack took place in the metro. the metro then shut down.

all transport nodes in and out of brussels being shut down. going to catch people's attention is the metro station attack. from theards away european commission, the european council. you get onto the main road and you want down 200 yards and you are at where this attack took place. this is right at the heart of europe. david: give us a sense of the timing. we know the two bombs that went off for about 8:00 a.m. local time. when were the attacks in the subway? little bit later, 45 minutes to an hour later. did not happen instantaneously. it was a staggered attack. there was a third explosion probably planned at the airport, which did not go off. devices may have been

discovered and been detonated by authorities. gap between the two. the concern was once we saw the first attack taking place, there would be further attacks. people are going to question if we saw the euro star being shut down. it was a staggered attack. stephanie: concerns around the world. as it relates to markets, as we look historically as we look at paris, san bernardino, we see markets selloff. it turns into a risk on environment and investors digested and in the past, it becomes a day later, a risk on moment. while we are not looking at a scene like this, it is a time when the market digest, buys more and moves forward. with the parisr

attacks, the market was shot in may land europe. -- in mainland europe. guy, you have been speaking to guests all morning, investors, the fx strategists. how is the set to develop? point, itephanie's took a month for the smp to get back to where was post 9/11. reaction takes around the day. that is what happened after the london attack. here, stoxxening 600 falling and then bouncing back. completely recouped our losses. we look at the volatility gauges, a gap higher. the lasting point is going to be this last one. be the going to

interesting one. this is euro-dollar at the bottom. we did see a selloff. we saw the euro being bought against the pound. the spread is going to be the lasting effect of the market, for the markets, as it makes it more clear and difficult for the u.k.eron to keep remaining as part of the eu. these attacks may make that job harder. may be look to sterling and not the euro for the effect and how this is being priced in. from a currency trading perspective, this time is different because of the impact those investing around the possibility of a break that, this will have more -- possibility of a brexit, this will have more impact. jon: an incident like this will

be used for leverage. stephanie: without a doubt. david: time will tell. sometimes these things rebound. johnson in london, thank you for joining us. for more on security six yearns -- security concerns outside, we are joined by greg. you are in paris. what is the reaction in paris? g: to put up a high state of security here. we had two attacks last year in france. are still officially living under emergency control. that has been put up a notch. another 1600 police will be deployed at borders and transport facilities.

be securityll checks and if you think about security, through anyone can walk into the terminal. that is clearly what happened in brussels. in theory, that will no longer be the case. it is interesting that the security perimeter will be moved to the outside of train stations and airports. in terms: what is open of airports and train stations? what is working? greg: everything in brussels is closed. the high-speed train line and brussels is

not running. trains are heading back to paris. the euro star from london to brussels is also closed. outside of brussels, things seem normal. been ant like there has belgium, bute of anything connected to brussels is not working. there is no metro service in brussels. it is the easter holiday, when many people would be traveling. if other airports and train stations are open and once reopens, couldn't we predict a much bigger slowdown? wouldn't people simply stay home? possible. if they are wise, they will get to the airport earlier. almost immediately, the paris airport said people should give themselves an extra 45 minutes

at the airports in paris because of additional security. that is going to be the case. this is a big travel weekend coming up. security. be extra will bethink there plans to stop traveling in europe. you have the border between , there mustelgium be 100 country roads that cross that border. there will be added security. comethe three explosions days after salah abdeslam was arrested, the man considered to be at the center of the paris attacks. the country this morning increasing the threat level. well ask why this

happened and why the threat level was not increased and how a city under intense surveillance, this happens. people will be concerned about that. many people will be looking at this and saying this was not good enough. ae belgian a 30's did not do good enough job. to that?our reaction how widespread are those accusations? we will see that. you have to separate how did the attacks happen? why were the not police at the airport? you have to accept not everything can be protected at all times, particularly public transport. on the other hand, you have the intelligence. behind the attacks last november was wider than people thought. salah abdeslam was on the run and had a support group of people moving from one apartment to another. ring was larger than we

presumed. they have other people going on in carrying out these attacks. there is acovering wider ring around the paris attacks. that is an intelligence failure. decided -- they have put a lot of the blame on belgium, saying brussels seems to be the staging ground for all of the attacks in paris. the belgians are not happy at andg lectured by the french say they have not always gotten all of the cooperation they want from the french. that is all behind the scenes. in public, they say what a great job they are doing. there has scenes, been sniping back-and-forth between the french and the belgians. and he time you have an attack like this, it is an intelligence failure. forgetgo forward,

the requirement nations of the past. there was this capture last friday. they don't believe they have all members of the cell. there is one specific member they are looking for. are they getting assistance to make sure they have everything they need to have? : there are several people they are looking for, one man in attackers inho the paris seem to have been in connection with. there are some other people who draw salah abdeslam around, people who put him up in apartments. there were french police with the belgians during the raid that arrested him. there is cooperation, hopefully salah abdeslam will talk so they have some information. up all sortsy pick

of information in the various safehouses they have discovered, whether it is fingerprints or cell phone numbers. the investigation is going to go on to try to track down the remaining members. every time they find someone, they find out the group was larger than they imagined and there are new people they are looking for. i presume we will see more of that. joining thisu for program. for more on the security concerns, we are joined by julia on the phone. she is near the site of the metro station. thank you for joining this program this morning. we heard of the two explosions that took place at the airports and later the news the subway had been under attack. bring us an update of what you have learned so far. it is tricky. i was in a parliament hearing and we were told to stay in the building. the committee chairman almost

called everything off. more on the streets where everyone is told to go home. i left the parliament and am trying to get near our offices near shuman. lots of ambulances are going by, roads are blocked off. authorities are trying to keep information under wraps. that is in terms of security. they do not want information to get out on where operations are going down. us a sense of the geography. how close is this metro station to the headquarters of the eu? is this something workers at the eu would be using this time of day? completely. it is about five minute walks to the commission. it is probably the most packed time of day.

most of our employees take that metro to get to work. what is the sense on the ground, with the exception of police and other security streets empty?e is there calm at this point? julia: completely empty. have our police vehicles. you have confused people trying to get to work. the police are not helpful. they are saying go home. people are saying -- but i need to get to work. there is some confusion. the streets are 80% to 90% empty. this is a city under intense surveillance. has the city grown used to how intense the surveillance is?

on weekends, people don't notice it. you have one of two soldiers. today is different. it hit more with the lockdown because we are people who are wounded, people who don't know how to get home at this point. to get anywhere without the public transport system or your car. today, there is a different tone. there was a sense that they were not going to strike here. being done on home turf. that is the surprise and the change in the belgian mentality. used toe: they are having so much security and brussels, is this a story of not of security not doing their job, but insufficient intelligence? julia: the question is the intelligence, not security.

it is an airport. that is the area where there is supposed to be the most security. that is probably the last place i would have expected something to happen because it is a place where there is so much security. it is more an intelligence story than a security story. stephanie: thank you for joining us. you are watching "bloomberg ." attacks thaton the took place in brussels in the airport and the metro station. you are looking at a live shot of people leaving the city and people being sent home following the attacks. we will be back with more. stick around. ♪

vonnie: there are reports of at least 26 people were killed and dozens more wounded. the numbers are certain to change. the airport was evacuated. incoming flights were deported -- were diverted to other airports. stationsols and train were closed. belgium has been on high alert since the weekend. captured the last remaining surviving member of the attacks in paris. banks are down. hsbc the biggest drag on the stoxx 600. airline stocks are down as well. mentioned air france is a

big loser. we are seeing airline stocks down as well. hotels are falling as well. if you look here, you can see cook, itok -- thomas is a travel company. travel sites are falling. tripadvisor has come back. a lot of these companies have .ome back if you look at the bloomberg terminal, i have a chart that shows european travel stocks throughout different terrorist attacks and the resilience, within days or weeks they come back. if you look at the treasuries, the yen, the drops were significant at first and they have recovered. this be another

sign that will push the european markets to be sluggish? we have been waiting to see real business investment and this is another thing. when people are concerned, it is not that they are pulling money out, but they are not spending. what you have seen in germany, under these and the eu, 20 members cannot get together. stephanie: you don't think something like this could force more unification? it should. look at the german state elections and what is happening. , the: joined now by thomas ceo of barrels men. thank you for joining us.

you woke up this morning to this news coming out of belgium. you are the leader of one of the major european companies. what do you think the impact may be for you. my initial reaction was a reaction of shock hearing i know brussels well. lives iny family brussels. i know the city well. and sorry for the people and the relatives affected. it is far too early to talk about ramifications on business or the like. a negative element. i find it hard to talk about the company and our numbers, knowing what has happened in brussels. a question i will ask of you, borders will be strengthened.

as a businessman that operates within the european union, how important is -- as an agreement? you consider it under threat? what does it mean for business? thomas: open borders are extremely important. clearly it is in our business interest that the borders remain open. very clearly, despite everything and concerns about security, borders remain open and people continue to travel stephanie:. this or inack like

paris get those governments are europe to point fingers or try to act more in a unified way? i hope the latter. we have seen a weakness of europe in the last weeks and months. one positive thing, incentives will lead to a more unified approach combating terrorism. as you look to cover this what are your thoughts about covering this? the more we cover it, the more we serve the interests of the terrorists. i am not sure. people want to know what has

happened and they want to know what is happening. what the police are doing about these situations. there is a demand for information. media has a role to play. we have to get this in the right balance. difficult times, in times of turmoil and terrorist to put what is happening into perspective. stephanie: thank you for joining us. rabe, ceo ofs bertelsmann. ♪

are just tuning in, two explosions have ripped airport.russels

another explosion rocked the downtown subway station. fatalities have been confirmed. the market reaction initially, equities lower. equities lower and future softer. futures off by 33. you see the dax down as much as 1%. then, coming back. the ftse 100 off by 4/10. the dollar yen, a little lower. the pound weaker through the morning. the initial reaction was lower for equity markets. joining us now from bloomberg radio is tom keene. for now, i want to get to vonnie quinn. here is the latest on

the top story. explosions ripped through brussels' airport. at least 26 people were killed and dozens wounded. the airport was evacuated. outgoing flights were canceled. incoming flights were diverted. shut down the subway system. high alert been on since the weekend. they captured the man believed to be the only surviving participant of last november's attacks in paris. david: thank you. tom, you have been covering this quite early in the morning. up this morning, fairly early, it is a shock when it happens. yet, it happens with some regularity. om: this is game changing.

we have london 10 years ago and a ten-year gap to hebdo, then the attacks in paris, and four months later, this attack. is a major city. brussels is not. it is a small city. airport inrgest europe. it is a small city. everyone is coalesced there. is a small city, but it cannot be protected in terms of terror, what does that say for broader europe and these countries who are asking themselves what do we want to do in terms of border control? tom: the distinction is not only terror, but what we have trouble speaking about, suicide attackers. you have daniel benjamin coming up, the most qualified person in america to talk about this.

he and others know is this is different than terror. about suicide attacks, attacking at will, as they choose. david: we want to bring in daniel benjamin. he is a former counterterrorism coordinator. he joins us on the phone from nor rich, vermont. vermont.h, hamburg was the seat of the cell responsible for 9/11. is this largely because this is where there was a cell? it is a pretty good guess that what we are seeing is the aftermath to the crackdown on the molen back -- the mall molenbeck cell.

the last of the attackers was there.rested this is what happens when a safe haven is cracked. they decided they had to use or lose the explosives and weaponry they have. that is what they have done. belgium has had a large problem with extremism. it is the country that has spent to a rock anders syria to fight with isis. belgian's what is budget like?

you are coming off of a sluggish european economy. brussels may not be the city, but it is close to the european headquarters. belgium has under spent for many years on security. that was an issue of great concern. it will have to improve its spending. it has begun to do so in the wake of last fall's is thence and the various crackdowns in molenbeek and elsewhere. they have a learning curve and before they a while have dealt with the extremism problem. this comes days after an attack in turkey.

putting that together, in your counterterrorism coordinator, how difficult is it to get a coordination for intelligence, the eu, turkey, and beyond that. how difficult is to do that? daniel: we have policy ties with all of these countries. we coordinate with them routinely. the problem has been coordination between turkey and some of these countries. to say thereate was any coordination in the attack. those are probably more or less independent streams. my guess is this was an independent action, taken on the

basis of the pressure on the cell. you were to write a book today, what would you say about suicide terrorism? that seems to be the constant theme. the newld you say about feature of suicide terrorism? is not that new. suicide terrorism began to , in then the 1980's muslim world, in lebanon. it has been diffusing for some time. suicide terror was the weapon of choice, modality of choice for al qaeda back in 1998, when it attacked our embassies. an enormous challenge to defend against. weaponsems focus on

more than people. it is a challenge. that said, we have improved our capabilities tremendously. it is important to work on that and continue doing so around the world. know: we do not really what happened yet, but if this is related to the november attacks in paris, talking about islamic state rather than al qaeda, has there been a shift in the islamic state. the approach has been to carry out attacks against targets of opportunity using low-tech means compared to what al qaeda did,

al qaeda focused on complex, covert, long-range attacks meant to cause and norman's numbers of casualties. isis has essentially said attack whenever and wherever you can. that is why you see the kind of thing we saw in paris. a terrorist group using rifles and semiautomatic machine guns. something al qaeda would never do. thatleads to the paradox we are probably safer from catastrophic attack, from planes are flying into buildings, attacks that would kill many hundreds, if not thousands. we have done a good job of defending against that attack. we will see more of these

low-level attacks. is going out there and encouraging the homegrown extremists to take matters into their own hands. that results in a greater likelihood of these low-level, but damaging attacks. doesn't mean anything in terms of the number of refugees who could be seeking asylum? greece has said they are in a state of crisis. tomakes it easier to pass places like greece. does this attack mean anything? potentially more refugees trying to get to europe? havel: the attack will not any impact on the number of refugees. the recent deal with turkey is meant to give europe the ability fromturn new refugees europe, one to appear. there is a problem in europe,

one that does not exist in america, extremists being hidden among these refugee flows and continue to beo a problem because it will be hard to turn off all of the refugee flows. the agreement with turkey, should it work, will reduce the danger. a problem.en some of the people have been involved in the paris attack and other activities. they came in through those massive flows of people coming into greece from turkey. joininge: thank you for us. daniel benjamin. a former counterterrorism coordinator, and tom keene from surveillance radio. social media taking some action. facebook has activated a feature that allows users to inform their friends that they are safe

from these attacks today. it is a safety check feature that has been put in place from facebook. we will have more on the attacks in brussels next. you are watching "bloomberg ." ♪

jon: live pictures of president hollande speaking after the brussels attacks. he says the war on terrorism must be waged in all of europe. all of europe must take part in the fight against europe. this is more sensitive for the people of paris and france. just to bring in our colleagues, this has ramifications across .he whole of the eu

stephanie: if you think about what this could mean for brexit, wake up, britain is heading for brexit. when we were talking about greg's it, you have this banner you had the european markets yo-yo. , all are faced with brexit of that uncertainty. you would see the sterling get hit. when you look at a time like this, we are seeing not just hollande, but more political leaders trying to bring calm and coordination to people. david: and a sense of unity. extent, moreome generally, are we europe or individual nations? we ares to say

europeans. we have to unite against this force. jon: eurasia group out with a report this morning. likely reinforce already anti-immigrant sentiment. stephanie: not just germany, but here in the u.s. donald trump has been active on twitter, saying he would close borders in response to terror. that sentiment he has tapped into in the united states could only strengthen or get louder at a time like this.

it is a natural reaction. stephanie: that is the action you get from the donald trump contingent who was saying things are uncertain and unsafe, shut it down. the tech community has been so outspoken in the last you years. if we had it mean donald trump sitting in the oval office? more: the way they have radical islamic fighters may be to let them sit in the refugee camps in the middle east. cesspools, of the where it feeds these young men, who have no future. squalid sitting in conditions. that will be the source of terror for the next generation. resources, no future, they are angry, and they are looking for a community. about belgium being a small country and brussels being a small city. this is the heart of europe.

the eu headquarters in the heart of the city. the attack on the metro is very close to the eu headquarters. whether you look at the market reaction, you have a leg lower, then you come back, what is clear, in the weeks and months ahead, political fragmentation matters for the future of europe. stephanie: if you look at the markets, european stocks are back in the red. stoxx 600, euro, ftse, all down. >> we have confirmed 26 dead.

there are more than 100 injured. we don't have a full total for that. no one has claimed responsibility. they are thinking it may be related, in the aftermath of the apprehension of the capture of the main suspect from the paris attacks. a fourthports of incident, perhaps a device that did not go off successfully. do you have more on that? we don't know if it was a real bomb that they detonated or if it was a suspicious package they set off protectively. we don't have information on

that yet. we have three bombs, two at the airport and one at the mouth maelbeek metro station. confirmation that 11 so far dead at the airport. 15 at the subway. stephanie: over 100 injured. jon: the death toll is horrific. are going to ask why the threat level was raised after this, considering this was days after salah abdeslam was arrested. the criticism this morning of the authorities, is it there as far as you see things? jones: they have been criticized for the last year or more

because of everything going on terror-wise. it was a big goal for them to catch salah abdeslam on friday and they achieved that. they are hoping having him alive will give them more information about how the network operates. you could suspect a retaliatory attack like this. the way it has happened, it is , it happenederent outside security, at the airport. metro is difficult to have security at. they are vulnerable targets. last: after the capture friday, did you see evidence of increased security around brussels? jones: there was more presence of soldiers and police on the street. theaturday, they kept threat level at three.

the thinking is that they had gotten the main man they were afraid of. in being on the loose november is the reason they went on lock down. there was a feeling they had at lessening of the threat. there was another individual they believed was with salah abdeslam. you know anything about that story? jones: they used fake ids. they are still piecing together evidence exactly who was with salah abdeslam when. the investigation is ongoing. a new one onned the brussels attacks that we just saw this morning. this comes days after an

attack in turkey. the eu is trying to come to an agreement over the refugees and where they are going to go. jones: it heightens the awareness that something has to be done in terms of security and anti-terrorism. not doingwe are enough. we had a series of wake-up calls in terms of attacks in paris. the lockdown in november, obviously there are signs that something was going on and we need to do more. the situation in turkey is even worse. the eu needs to talk to turkey more. since those conversations have happened, the need for more intelligence and security is on the table, what

could the impact be in terms of finally seeing xena phobic sentiment rise and there be a hard line in terms of immigration, no more simple conversations. it lets talk about it more and make it more important. that has already happened. jones: you cannot help but have that kind of sentiment happening. this was the big problem from

november, the paris attacks were planned. this is a hotbed of where this kind of activity has been going on. the government has been trying to get a handle on it. as of friday, they were congratulating themselves for having done so. now, we are taking a couple of steps back today. what have we heard from the belgian government itself? jones: they have said they are investigating. in ande going to dig find out who is responsible and step up security. at the same time, they are trying to reassure citizens that things are ok and things will go forward. stephanie: thank you for joining us. this morningacks have killed 26 and injured at least 130. we will have more on the

terrorist attacks. look at the markets. 21 percent below the 30 day trading average in the stoxx 600. if you look historically, after t terror attack ever, 9/11, it took one month to rebound. today, just hours later across the board, we are seeing markets trade down. more coverage on brussels is next. ♪

stephanie: continuing breaking news coverage of the explosions in brussels. i am stephanie ruhle this is bloomberg though. joint by david westin and jonathan ferro.

you are seeing a live picture right now in brussels. we have reports that there is now an increased police presence right here in new york city. the terror attacks that have taken place in brussels have garnered the attention and fears around the world. jonathan: let's get you up to speed. at least three explosions in brussels, 26 dead, two explosions taking place around 8:00 a.m. local time at brussels airport leading 11 dead and at least 81 injured according to preliminary government numbers. the explosion at maelbeek metro led to 15 dead and as many as 55 wounded according to provisional figures from the system operator. belgian prime minister says no one has claimed responsibility so far. david: all flights have endeavored to other airports. belgium has raised their terror level bash while we do not knowt it has all the harm hallmarks of terrorism at this point.

jonathan: u.s. futures a little bit softer. we stay in the red. s&p 500 futures around nine points this morning. dow futures down about 50. dekes up by 4/10 of 1%. at the board, ledger stocks a come under pressure throughout the morning. the traveler -- travel and leisure index down by almost 2%. that safe haven bid as bund yields go down. a weaker euro and perhaps more significantly to the fx market a weaker pound as well with cable --n by 6/10 of 1% at 140 283 1.4283. stephanie: when you mention the travel and leisure index, put into perspective europe coming out of a very sluggish economy. tourism is one place especially for peripheral countries in

have awhere they look to rebound. places like spain, portugal, greece, following an attack like this for what is it mean for them? after the paris attacks, david and i sat down with the ceo of delta and the one negative spot parisad was following people not want to go there. even after attacks we have seen markets rebound overtime as it relates to travel. we are a few days away from the easter holiday when so many people travel. they will look to sa -- look to stay home. jonathan: tour operator in europe down. let's continue the conversation and i want to bring in a u.k. member of the european parliament currently in lockdown in russell's and joins us on the phone. a lot of discussions about why brussels, why belgium. what is your view? thoughts aremy with all of the victims and their families on this terrible

day. about the likelihood of an attack happening. this could happen in any mar city, not just in europe but anywhere in the world. it is not something that is unique to brussels or peculiar to brussels. in the wake of recent arrests this is something that has caused a lot of shock and people are extremely worried. david: give us a sense of where you are right now, mr. dance. is it the case that you are in lockdown? i am in my office at the european parliament. in that sense things are proceeding as normal. a lot of colleagues are not in --k because they have either they were either on their way to work when the attacks occurred

and obviously the transport system shutdown. a lot of colleagues have been in a meeting where he had been unable to locate one of the people who is supposed to be coming into the office. there is a problem i believe with the phone networks. difficult to get some messages through. i understand e-mails and social media are working fine. in line with what the saying i would encourage people to use social media to communicate rather than overload the phone network. david: as a member of the european parliament, what information have you been given by the authorities about what has happened? seb: we have been told to avoid crowds. the streets but they have been for some weeks now, ever since the paris attacks we have seen an increased military presence in and around brussels. perhaps as a reassurance as well

as a security measure itself. increased.e is looking up the window there is a number of armed soldiers at the moment. i should stress that people are also going about their business. there are people in luxembourg just outside european parliament. people in some of the surrounding cafes. clearly fewer people. no traffic at the moment because most of the main roads have been blocked off. it is not as if life has come to a complete standstill. stephanie: from a political perspective this is a moment in time where coordination is eminent. does it feel we will get that while we hear from francois hollande that country's leaders need to be working together? doesn't you like that or more of a moment when people of the kick xuit of their own and brage being more on the table.

potential candidates are saying this is a time to work together with allies. most often we is a time to work together because this is an issue that no one country can solve on its own. we have to realize that the aim of terrorists is to cause next month disruption to prevent society from functioning in a normal way. i think one of the worst things we could do is to react to that by closing everything down. i think that would be the biggest signal we could give that the terrorists are winning. i think that in order to combat what is a serious international threat, we need serious international measures. jonathan: this is a threat to the european union. one of the pillars of freedom which is free movement of people across the eu. as a member of the european parliament you face a debate not just in the u.k. over the future in the european union but also the future of the european union and what that looks like.

several years and decades to come. what is your response to the attacks and increasing political fragmentation and what does this mean as far as your concerns? what are the political consequences? seb: we are a few hours after the attacks of course. we are still hearing figures coming out of the different numbers of people injured and killed at the airport and metro station. i think it is too early to start drawing conclusions about what the impact -- the referendum debate is. that pressoutrageous releases were sent up this morning as bodies were being collected from the sites. immediately drawing conclusions. until we know where the bombers are from, whether or not they were belgian citizens, what movements were dumb i think it is too early to draw any conclusions. at a time like us , itf not just to stand together in solidarity with victims but to make it clear that in order to

combat what is a serious international threat, we have to work together. you for joining us this morning. u.k. member of the european parliament, seb dance. david: we will go to jones hayden. are there any new facts we have learned? jones: the latest here is we have confirmed at least 26 people killed in these two attacks. two bombs at the airport and another at one of the brussels metro stations. a station that is near the european corridor. we have 11 killed in the two bombs that went off at the airport early this morning. 15 died in the explosion at the metro station. that was about one hour later. we still don't have any information about who

perpetrated, who set these attacks, who is responsible for this area still investigating that. the prime minister of belgium has been on tv to try to reassure people and tell them how the investigation is going. i say it is definitely a terrorist attack and are treating it as that. they are thinking -- they say it is definitely a terrorist attack and they are treating it as that. stephanie: put into perspective someone who spends his life in brussels, what is security like there? for people in the u.s. to say so many people lived -- somebody people live there and some have said it has become a breeding , ford, a training ground those who move into terrorist groups. what is it actually like there in terms of day-to-day security? jones: day-to-day for the past year or so it has looked very secure because they have brought atthe army to be posted

strategic locations to make sure that things are secure or to at least reassure the people that things are secure. today they brought in more police and more army officials. army soldiers from outside of brussels to help with the security and brussels because of these attacks. we have lived, especially since the november attacks and the fact that that investigation focused on the molenbeek district in brussels, we lived with this increased security. we have the lockdown back in november, about a week after the attacks. people seemed ok with that and there was no attack at that time. it seemed to be successful. last friday, they captured the main guy that they were looking for. the only one who still survived from the attacks in paris. things were looking good from a counterterrorism point of view. now that has been blown away. david: are there any particular

areas in the city that are receiving special police focus like molenbeek? molenbeek is the main one that is getting the most focus especially now after they found abdeslam on friday. otherwise a couple of other districts and bureaus that have been part of the investigation but they have not been focused on the way that molenbeek was. this explosion today is in an area we had not been focusing on in terms of terror, only in terms of security and defense does it is near the headquarters of the eu here. that is probably why it was chosen, to send a message not just to belgium but the wider eu about the vulnerability in situations like this. david: brussels bureau chief jones hayden. jonathan: let's turn from the politics to reaction in financial markets. we go to the city of london and bring in guy johnson.

right have you with us. initial reaction, equities lower and a safe haven bid as well. has that changed? guy: a little bit as with all of these things. we have seen that really every since 9/11. you get reaction that sends us down and then you start to retrace some of those early losses. it is in that period that we are now in. let me take you to the bloomberg and show you what is happening in terms of the stocks 600. we get lower, we come up, we retraced and are now down around 1%. you are seeing a similar story when it comes to what is happening with volatility as well. which is -- there is the volatility chart. initial spike higher. retracing that. a couple things worth noting, one is the dollar turkish lira

spiked higher which is interesting to see that happening. the turkish lira, you think about the explosions that of the happening, the terrorist attacks that have been happening in turkey as well and also this recent deal on the migrant story that has come together as well. from an emerging market perspective, what is happening there. the other trade is this spread. euro-dollar down. that is euro sterling. this brexit spread we are now seeing emerging as people say this is the capital of the eu. one of the attacks happening within yards of the european commission and european council it. maybey cannot secure that this is not the club we want to be a member of and that seems to be priced in at the moment and that brexit trade is going to be one of the lasting legacies of what we see today in belgium. stephanie: can we stay on brexit? we have seen shorter and shorter

time spans following a terror attack. the market being risk on and pushing back into positive territory. given the threat of brexit, the very aggressive political climate facing the u.s. presidential election, could this time be different? guy: what you are going to see is these events being not taken , certaintain instances politicians in the u.k. are using it to justify the brexit cause. i think most people will take best id use that as the do not think most people will use that as the prime message but it will resonate in people's minds. every piece that makes the brexit exit people's jobs easier. i think the market will look at and say, maybe we need to trade the discounts wider on sterling. maybe the possibility the 250 should trade at a bigger discount for the ftse 100.

i think it is an incremental story that is going to make life more and more difficult for those that want to stay in. people's minds may change. a huge undecided element. a like today may make it harder for the u.k. to remain. jonathan: guy johnson from our european headquarters in the city of london. two explosions have ripped through brussels airport departure hall. another explosion rocked a downtown subway station in the belgian capital. this is bloomberg go. ♪

david: here is what we know now. at least three explosions in brussels, 26 people dead. at thelosions took place brussels airport leaving 11 dead and at least 81 injured according to preliminary numbers

. explosion at the maelbeek metro near the european union office buildings led to 15 dead and at least 55 wounded. belgian prime minister charles michel says no one has claimed responsibility the spar. for a look at other stories, let's go to vonnie. vonnie: today's scheduled showdown between apple and at the fbi has been canceled. to test a possible method for accessing data on the phone. apple has opposed the government's efforts to force it to undercut iphone features. o of the biggest names in offshore drilling and the services that go with them say the oil business will take longer to recover than expected. transocean says you have to wait another it will have to wait another three years before charging more for its rigs. of nintendo rose as much

as 8% in japanese trading. the company reported more than one million users for its smart phone app. nintendo is trying to bring back players. stephanie: i would like to pull bianca, president and founder of the youn -- from bianco research. whether we're talking san bernadino, paris or 9/11, the markets take a leg down following attacks. we have seen a strong rebound. we are asking, is this time different. donald trump, who howard marks has said, donald trump, the or mongering and igniting of xenophobia sentiment in the united states has pushed markets to feel panicked and take a leg down. do you think this time is different?

jim: i think it can be different in that it will be more political. if you look at the markets today -- i do not want to dismiss it but the standard knee-jerk reaction. the market that seems to be reacting most is what we will call the brexit trade, the weakening of the pound. well.ng markets as that is because they have an election coming june 23 whether or not to stay in the euro. now you have political sides that can take advantage of this. if this happened a year ago there is not any political opposition that could take advantage of this but now not only do you have it in the united states but you also, because of brexit had it in europe as well. they will take advantage of this and that's why you are seeing the political trade having a bigger move than a standard playbook. david: we have been talking on this program about something you talked about, how long does it take for the market to rebound.

it turns out even after 9/11 i think it was 31 days before the s&p 500 was back to where it was originally and it seems to be taking a shorter period with each downturn, with each of these attacks. the question is -- matt: after 9/11 the new york stock exchange was closed for four days. a different story from a boston marathon bombing, when it was down on the day of the bombing, up on the next day. or san bernadino, down on the day of the shooting, up on the next day. oklahoma city, down on the day come up on the next. in each case where the markets have been open come a we have seen the rebound immediately. if you look at european travel shares, i want to bring this chart up again. 63 on the bloomberg chart library. after each of these attacks, including september 11, you have daysnd of the index within -- weeks if not days. it comes back quickly.

september 11 is a very big as tension from all of the other attacks we have seen. stephanie: it is important to note the paris attack took place 2.5 friday night so we had days to digest it before markets opened up again. matt: although the paris attacks , the next day of opening we actually did not have a rebound right away. the cap was down 1% on the day of the attacks and the monday we had the open we were still down 1/10 of 1%. european attacks are typically different than what we see in u.s. market reaction. jonathan: sometimes we talk about markets from this 50,000 foot perspective and down from a top-down perspective. i want to talk about businesses that operate in europe, particularly in travel and leisure. as you look at companies that have to deal with the natural layer of complexity, the tour operators and airports themselves that now have to deal with and at her layer of complexity. have you done much research into that sector in the stock market? jim: you have seen that all

throughout. paris has had two major attacks, maybe three duke of the train attack. -- if you count the train attack. the extra layer has been there for a while. height concerns throughout europe and brussels for a number of months. those companies have had to deal with it and we have seen that partially because of the week growth we have seen coming out of europe. it is a bit of a big reason. let a come back to one of the thing matt and stephanie were talking about. we bounce back when we feel this was a one-off attack. when we are thinking all is clear and a lot of times that is the next day. if this was response to an arrest that took place a week or 10 days ago and put this together in a week we might have a tougher time bouncing back because it's such an attack could happen again in a week if it only took that short time to put this together. stephanie: take a step back and look at the markets for a moment as it relates to where people

are going to put their money. you mentioned there was already sluggish growth in europe. is this only going to make it more sluggish in terms of investment in european companies? not just in travel and leisure but across the board. look how european banks have suffered. jim: if you look at where the markets were before the attack, they were somewhat overbought. we rallied quite a bit. especially when it comes to things like commodities in crude oil. the market was naturally ready for correction anyway. if this is going to be the excuse to give it the correction it wanted, not necessarily coming all today or tomorrow, but to put a short-term peak in the market, the market will probably take it. if this had come at oversold we might have had a different reaction in that framework. it is going to be an excuse for it to even more correct, not necessarily harder that maybe move the timeframe of to now. stephanie: across the board to

you think any sectors rather than others will see a faster stronger rebound? jim: i think the further you move away from the political trade i think you will see it rebound a little better. the further you can get away from brexit, the further you can get away from the energy area, the further you can get away from anything related to migrant flows, i think we'll rebound better. if you have businesses caught into those i think they will struggle a little more. stephanie: does that mean this is a time to look to invest in u.s. companies based here that do not have a big international presence? sort of celebrating that cleanest dirty shirt invest here in the u.s. companies? jim: if you wanted to do that for short-term trades, sure. if the idea is that the u.s. is isolated and you can park your money in the u.s. while everything else falls apart, whether it is china's weak growth, fear of terrorism in europe, and somehow you will be better in the united states,

from a relative perspective i understand that. from an absolute perspective you're probably not going to make a lot of money if that is the mentality of your trade. u.s. will suffer too. it will go down it just will not go down as much. stephanie: jim bianca oo, thank you for joining us. we will have more coverage, coming up next. ♪

jonathan: we are bringing you breaking news from events that have taken place in the belgian capital of brussels this morning. here is what we know so far. two explosions have ripped

through brussels airport departure hall. another explosion rocked a downtown subway station minutes away from the eu headquarters. fatalities have been confirmed. brussels, rocked by deadly attacks is your headline this morning. let me get you up to speed on the market reaction and go to european equities. an initial reaction was lower. ftse 100 down by 6/10 of 1% this morning, down by 35 points. the dax lower this morning down by half of 1%. teachers here in new york city in the dow futures down by 51 points. s&p 500 futures down by eight. i will take you across asset. the stoxx 600, you will see the travel and leisure stocks are the biggest losers this morning in reaction to what has happened. the travel and leisure stock index down by 2%. the bund market, down by two basis points. you see the safe haven bid in german government bonds.

euro-dollar, 1.1228. bank of america merrill lynch and credit agricole's speaking about the increasing likelihood that the u.k. may exit the eu and how the events of this morning fuel that debate. stephanie: it is important to note what jim bianco said, with the markets being positioned for a correction while we see things take a leg down what we absorb the attacks, we could see a sooner snap back and as the day continues, taking a closer look at what specific sectors, whether we're talking about u.s. companies that do not have a big international presence come a cyber security, businesses. no matter what kind of company you are this is a moment where you heighten your security across the board. jonathan: so much to discuss after the tragic eventsjonathan: in brussels, belgium. let's get to first word news with vonnie quinn. vonnie: in havana, president obama will deliver a televised speech to the cuban people and will meet with political dissidents.

the president met with raul castro and talked to reporters after. the two did not meet common ground on key issues. >> the relationship between our governments will not be transformed overnight. we continue as president castro indicated, to have serious differences including on democracy and human rights. vonnie: castro denied that cuba holds any political prisoners. a dissident group says it will give president obama a list of them. syrians stranded in turkey say they do not care about the european union plus new refugee deal. the agreement calls for every refugee who make the trip from turkey to greece to be returned. syrians in turkey say they do not care and are willing to take a risk to make it to europe for a new life. malaysia says debris that might be part of a plane engine has been found on the south coast of south africa. it will be checked to see if it belonged to malaysia airlines flight 370 which banished two years ago. the jet disappeared with 239 people on board while flying

from call import to beijing. thanks.e: ian bremmer joins us. eurasia group president and founder. as you look at the headlines unfold, what does this mean to you across the board, geopolitically, economically speaking? ian: overwhelmingly, the implications are on europe and there are a number of them. first of all, there was a very big deal done between the german eu and the turks on refugees. 6 billion euros of relief to the turks. also providing visa -- a controversial measure when it was signed. it will be harder to intimate now because the european governments and european people will be skittish about the idea of allowing all of those people across their borders are you

british exit, the referendum coming on june 23. the likelihood that you vote for exit is going up. it is hard to get the brits to get emotionally behind supporting europe even though they know that economically the dangers are great on the back of terrorist incidents like this. much more support for populist and extremist parties. anti-immigrant parties across europe. you saw this with the german elections of couple of weeks ago. record numbers in three states against merkel. that will grow in france, belgium, the netherlands, across europe. the weakness of merkel herself as leader of europe. it is on the basis of the tremendous support for bringing refugees into germany. she said her party congress what we can do this. no one else thinks she can.

the tipping point was probably new year's eve when 1000 german women were sexually assaulted by muslim men, many of whom were indeed refugees. this is adding a significant amount of fuel to the fire. i don't think this has significant implications for europe's policies in the middle east, which of course is the reason why we are having so many of these problems, nor do i pick it has a significant impact on a politicized and divisive u.s. presidential election. stephanie: you don't think it does? ian: i do not. we have already had these major paris attacks. i think we have -- we have had a number of major terrorist attacks in turkey. german assault and now we have brussels. by next week, friendly i would be surprised if in the united states this is the kind of headline that we are still actively talking about. i think we are increasingly getting in a word to this kind of violence in europe. dr. bit we have an attack like this in the u.s. it would have a political impact

-- god for bid we have an attack like this in the u.s. candidates will try to make a little bit of hay on the back of these headlines but i don't figure will be significant for the u.s. presidential election. david: for all the reasons you enumerated, this is in a sense an attack on the unity of europe itself. assuming there has to be a leader -- and let's assume it is angela merkel, what do you advise angela merkel today to do to bring europe together rather than splinter it? ian: she is going to have to be willing to accept less austerity from a number of european countries. she needs to make the trip to brussels as soon as possible. be a strong leader, be therefore the people of brussels. she is going to have to continue to find ways to back away from what has been a divisive refugee policy. all of those things she has found yourself having to do. believe it or now she is still over 50% approval rated in

germany. support for german policies and angela merkel outside of germany has dropped. the willingness to engage and get behind her when she says something is important. for example if we were to have another greek crisis, she would have no way to force the kind of european solidarity get behind bailing of the greeks, which we could see happening on the back of this refugee crisis mounting in greece. i think that is the problem here. european unity, what is that? we have not talked about european unity effectively in years. there is not any. the brits are thinking about leaving. translated relationship which has been the most important relationship alliance the world has seen for three quarters of a century. when we talk about economic relations and trade relations, nato and security, we talk about the promotion of western values globally. that relationship is already weaker than it has been at any point since world war ii and

today's bombings directly damaging that relationship. that is a real problem certainly when you think about the way the global economy functions. stephanie: when you say european unity, what's that, you would echo the sentiment. as we look at the pound falling in response to the thought that we are one step closer to a brexit you would agree that this makes the brexit more likely? ian: i do. we talked about this yesterday that brings it is already problematic -- brexit is already problematic. most brits do not want to leave europe. they are scared of the idea of what it would mean for their economy. the hit it with take on jobs. an important report written by the confederation of british industry yesterday showing that by 2020 you at $140 billion hit to the british economy if they leave, as well as one million british jobs. this is a report that was well researched. that does not do very much to excite the voter compared to headlines saying europe is

falling apart, why should you be a part of it. look at what is happening across the channel whether it is refugee cans in the jungle outside of calais or whether it is the attacks you saw perpetrated this morning in the brussels airport and metro system. the issue for me is going to be turnout in britain. get the less passionate but more numerous brits that will to support europe tackler go to the polls or is it going to be bought by the hearts? and if it is the brits are out in june. i would bet a little bit in favor of them staying in but it is getting more closely held by the day. this is a tough one to handicap. david: ian bremmer, thank you for joining us today. now we are going to go to former u.k. ambassador of the united states. sir peter, you were on with us recently talking about brexit. our first thoughts are with the people of brussels and what they

are suffering today. we focus on brexit. what invocations do you think this has on the u.k. with respect to europe? peter: the first thing we have to say is how awful this is for the people of brussels to be a victim of these terror attacks. we have all been there before and so i -- it does not make it any easier, the fact that this is distressingly familiar. to answer your question, what difference does it make, my hope is this does not -- although ian bremmer thinks different way, this does not alter the argument about whether the united kingdom should stay in the european union or not. the day after those terrible attacks in the streets of paris, the first thing david cameron did was go straight to paris. showing solidarity with the french president and people. on the whole, brits when you hit them with terrorism, pretty

stoic. they like to throw in the towel. i think what this is about is not membership of the european union. this is about a horrible --ology turned into murder anyone who is not like them where they can. it is not about whether we are in the european union or not. we need to be vigilant in all the major cities of the world where you think there is a threat from these people. it is important we work more closely together, not less, in terms of counterterrorism efforts and exchanging intelligence and so on. i see this as an issue to do with terrorism and not an issue which is to do with whether or not the u.k. should stay in the eu. jonathan: your words, working closer together. your time working with turkey, talk to me about your time and experience and how difficult it is to work with 28 countries across the eu, plus turkey, when you all faced such similar issues. peter: it is problematic.

when i was ambassador in turkey, the united kingdom took a lead in trying to ensure -- indeed succeeding in showing that we opened negotiations with turkey a decade ago. provided turkey with never should criteria for the european union. we thought it was the right thing to do for turkey and the right thing for europe. in those days turkey was making good progress in terms of democracy and rule of law. respect for freedom of expression and so on. that mark myng time, we had a large terrorist tom that went off in the gates of the bridge consulate on my watch. killed a dozen of my staff there. dealing with that was a horrendous thing. that was in the days of al qaeda who had a franchise operation with four suicide bombers who attacked two synagogues and one consulate general. dealing with the consequences is

always difficult but the most important thing i think is to show that you are not going to give in to the terrorists and that you are going to remain even more vigilant and determined to stop these things happening again. and to find the people who did it. working together with the other governments is difficult. you saw how come located -- how complicated the deal was to put together with the turks. question of migration and access to the european union. it is going to be difficult. i think it is one of the big challenges to the european union to ensure that we have got a forward-looking relationship with turkey which addresses their concerns and ours as well. stephanie: what do they need to do or how to they articulate that position of strength, unity, power and not that they are fearful? as we look at markets it is amazing. once are unchanged on the day. -- bunds are unchanged on the day. how do political officials show the position of strength as you

say the need to? peter: i think there are a number of things we do. we show solidarity in different ways. i mentioned the way david cameron went to paris quickly after those attacks. maybe chancellor merkel will go to brussels very soon. brussels is in a sense the european home for those who deal with european policy. they go to brussels. they know the site. this was close to where -- i they people need to show are with the people of brussels whether this was an attack against institutions of the european union or attacks simply because they could do it in brussels, i cannot tell. show we areeed to sticking together and we are not going to be knocked off course. we need to continue to show that we are determined to defeat isil . one of the reasons they are so active in big cities in the european union is because they losses intaking

iraq in syria -- in iraq and syria. they are bringing attacks to europe. we have to stop the young people of our own countries who think it is fun or somehow religious or islamic to join isil and start slaughtering people. we have to have leadership from the communities of the muslim world to show this is not in their name and this is not consistent with islam. above all we have to ensure that cooperation in terms of counterterrorism work and exchanging intelligence and looking out for telltale signs of what's going on is even more effective than it has been in the past so that we can stop these atrocities happening because they could be happening in any of our cities at any moment because these people do not accept any kind of boundaries and do not accept any sense of right or wrong or principal. david: you deliver a powerful message. who should deliver that message? the unitedappened in

states we had one president and turned to that president for leadership. do we turn to david cameron, angela merkel, hollande? is that inherent weakness in the european structure? peter: europe has leadership on different levels. in one sense, the heads of government of the bigger european countries. they do come together and i'm sure they will continue to do that whether it is president of france or chancellor of germany. we also have the president of the european council, donald cost. tusk. the way in which the heads of government come together for the european council which meets every two or three months. there will be to be a collective response from all of the 28 governments coming together. i think what you are likely to heads ofe individual government who feel a particular

responsibility for countering this behavior themselves. standing up and showing they are working together to address these threats. jonathan: former u.k. ambassador to the u.s., sir peter westmacott. three attacks taken place in brussels area tragically killing 26 and injuring at least 130. coming up, another story at the heart of terrorism on bloomberg go. ♪

vonnie: you are watching bloomberg go. bloomberg is the splash. the world's largest money manager is urging investors to pair treasury holdings. blackrock says economic data out this week may show the u.s. economy experienced a mild slowdown. the firm says investor should be underweight treasuries. shares of nintendo rose as much as 8% in japan area the company reported more than one million users of its first smart phone app. nintendo is trying to bring back players from the company's hardware. that is your latest bloomberg business flash. david: we want to turn to a different story. although it has a decided -- apple versus fbi. looking different today than it did yesterday. the u.s. said it may not need apple's help in unlocking the

iphone used by a terrorist in the san bernadino attack. the news has led a judge to postpone a court hearing over the issue. joining us is david kirkpatrick. do you think the battle between apple and the fbi is over? a battle that will be going on for long time. today's involved -- today in brussels will ensure that. when there's an atmosphere of fear there will be a tremendous constituency for intrusion into our communications. stephanie: when you think about tim cook's position, to today's attacks minimize it? yesterday when he left the stage to tom petty's i won't back down. here you are a day later with dozens of people killed. does that trump how tim cook and other tech ceos feel and it is all about survival and security? david k.: if by trumping you mean --

stephanie: apologies. david k.: if by trumping you mean they will change their views come of the answer is no. this has been an atmosphere of terrorism for some time. they are aware terrorism is a big risk of the world. it has nothing to do -- it is a principled stance that they believe that freedom of speech and communications and the autonomy of business sector, a variety of arguments argue for these companies controlling their own products and instituting encryption if they feel it is what their customers want. i think they are very clear in their own minds that it is what customers want. david: yesterday at the 11th hour just before the oral argument today, the government came forward and said we may have another way in that does not involve you. we don't need you after all. the sources in the report have indicated it is not a government source, people at speculated about the nsa. if that doesn't work, does that undermine apple's position in

the sense that these phones are not as protected as we thought they were? david k.: maybe for the iphone 5 which is what we're talking about. earlier phones are less secure. for future phones it has no bearing whatsoever. on the other hand, i think there is a lot of posing on both sides of this entire issue. in fact, what's really knew about this is that the fbi went to court to make apple comply. wefact, quietly i think -- know there has been cooperation and the probably could've been cooperation of a greater degree here. i think probably they did not need to do it and apple probably can do things and probably has done them in places like china that we might not really want to talk about publicly, or they would not. stephanie: yesterday at apple's the event, tim cook did weigh in on how important the iphone is to individual security. take a listen. >> we built the iphone for you. our customers. we know it is a deeply personal

device. for many of us, the iphone is an extension of ourselves. stephanie: the iphone is an extension of ourselves he said. as you said earlier they are taking a principled stance. is that principle fly out the window in times of panic and fear? and what about those individuals -- david k.: this is what terrorists want. the reason they do terror is in order to make us scared and overreact. this should not have anything to do with what these companies and particularly apple feel is the right thing to do with their products, their principles and for their customers. that is not to say that in moments like this people do not freak out but that is not the proper reaction. i don't think tim cook is going to change his views whatsoever. jonathan: a question i would have for you, arguably the ultimate outcome of all of this would have been for apple to go to court, to lose, to before to unlock the phone, ideally to keep the solution in-house and

say, we kept our stance but we were forced to do it. given this outcome, if someone else is able to unlock that phone, isn't this a little bit of a pr disaster for this company? david k.: it is an earlier product. richard clarke, who was a top security official not long ago said he.s. government is confident the nsa could open the phone all along. there is the oddity that the fbi is the one that locked the phone. they made a mistake when they first got the phone. this is a muddy case. applet think -- i think in the precincts of people who are synthetic to them, it is not going to change. generally the public is not synthetic to them unfortunately and that scares me. i think we need security for freedom of speech globally. kirkpatrick,id bloomberg contributor. that you were much. -- thank you very much.

about 35 minutes away from the open in nyc. futures here in the u.s. down by 45 points on the dow jones. s&p 500 futures down by around eight points. the ftse 100, down by half of 1% in the dax down by 32 points. we will go across asset. the stoxx 600 travel and leisure index lower. down by 1.9%. nd yields down. -- pound at one .4 248 1.4248. the tragic events in brussels, next. ♪

david: this is bloomberg go. people are dead

after explosions at brussels airport and metro station. nato has raised its state of alert at the brussels headquarters. buses, trains, metro in brussels, all halted. u.s. attorney general and president obama have been briefed on the attacks. the s&p 500 futures have fallen. andpe has paired its losses europe airport shares have dropped the session lows. stephanie: also with us now is the investment director for private assets. before we get to things with federico, let's get a check on markets jonathan:. about 30 minutes away from the session at nyc. futures a little softer in the u.s. s&p 500 futures down by eight points. the ftse 100 softer, down by half of 1%. the dax down by 29 points. lift the lid on the benchmark --

600 -- the stoxx 600, lower. a bit of a safe haven bid but it has given some of the gains if you go to the bund market, yields lower by one basis point. 0.23%. a weaker euro that only just down by a 1/10 of 1%. these markets do not reflect the tragic events that happened this morning. one dollar 42. 1.42. while the exit does seem to be front and center it is noteworthy when you look at bunds on most unchanged on the day. you are not seeing such a massive impact, and immediately unlikely have had passed terror

attacks. for more on this situation, let's take you to the ground. bloomberg's jones hayden. have 26t this point we confirmed dead in these terrorist attacks. one at the airport where two bombs went off and one on the subway at this station that is not too far away from the center of the european headquarters here in brussels. more than 100 who have been injured. we are trying to get a total on the number of injured. police and prosecutors are going through the wreckage even now try to make sure there are not more unexploded bombs. a couple of cases where they have had to detonate packages after the initial attacks this morning. that work is still going on. david: earlier today the prime minister asked people pray much to stay in place. our people staying at home or moving about at this point?

jones: there are people -- some people are moving about. advice from the eu to its employees and from the government to the people in general is to stay at home, stay inside. there is a heavy police presence . police and army soldiers out on the streets. you can see pedestrians walking around. , now you haver this threat renewed over the city. similar to what we had back in november shortly after the paris attacks were brussels went into lockdown. we are in the same situation. it's even worse because the airport is now shut down. -- it will closed remain closed into tomorrow and we did not have that back in november. jonathan: this comes days after sal abdeslam, the man widely considered to be at the heart of the tax in november -- heart of

the attacks in november was arrested. does this speak to the network wider than authorities anticipated? the immediate aftermath there was a sense of the number of people they were looking for. do you have that sense in the immediate aftermath of these attacks? jones: already on friday, when they captured abdeslam, they were saying, the french and belgian investigators, that the network was bigger than they anticipated. that it actually reaches beyond brussels. it might be coordinated from brussels but that it reaches beyond. in general, trying to fight this network is a bigger thing than they had thought of before. and capturing abdeslam on friday, the assumption was that they had made a break in the investigation and big headway. now what looks like retaliatory attacks have taken place. not only that but it does go different places, very similar

to what we saw in paris back in november. david: jones hayden, thanks for your reporting. we will check in with you as the story develops. joining us now is general wesley clark. former nato commander. general clark, welcome to bloomberg go. my question to you is a from your point of view and experience, was this avoidable or is this inevitable? i'm sorry we have lost general clark for the moment. stephanie: federico, i want to turn to you. before today's attacks you have been telling us volatility is caused by uncertainty and we have had a volatile year. that uncertainty has only spikes up even more. how volatile do you think the markets could get? federico: before i go there i have colleagues in europe and a number of investors who are belgian. my thoughts are with them so that will be my first answer to your question. regarding the uncertainty, i think terrorism in general is

one i would put in a category of big global challenges and i think it is one that needs to get solved and have an aggressive response by government. in the world that we live in, it is the middle market world, the private equity, small companies around the world, where the events of today do not have a long-term impact. they mostly have short-term effects, mostly in economies. we do not see this as something that creates excess volatility the on what we are living today with all of the events happening in the economic arena. jonathan: maybe not excess price volatility but in terms of due diligence and the extra layer of complexity that is political risk not how much time you have to spend trying to understand that before you invest? federico: i think it really affects specific industries. if we are talking about health care in the u.s. for example, which is something we are focused on, it does not really have a short-term effect. it may have some tangential

effect in some areas of health care. i would say it does not really factor in. it is a terrible human tragedy but it does not really affect the industry we are focused on. it does not affect the oil and gas space. again, it is not a very strong effect on the things we are currently focused on. david: i wonder if it makes your asset class a little more attractive in the sense that you are not in the regular equity markets. you're not worried about the indices and ups and downs. you are making long-term investments in companies. federico: exactly. that would be my bias given what we do and focus on everyday. i think the answer is yes. i can we are focused on what we call continuities. trends that have 10 years or more of legs. short-term volatility, short-term movements, do not really affect what we are looking at.

we are looking at things that will develop over the next 10 years area for that we are looking for quality companies. how is a great company going to be a great company and 10 years? terrorism, disease, climate change may have an effect but the reality is we are thinking a lot more long-term than the public markets are. stephanie: the public markets as they relate to news we are getting today, clearly we have seen markets rebound. it might take a few days in the case of 9/11 it took a month area but when you look at the geopolitical situation, the wall of worry, whether it is brexit, ,he refugee crisis, oil, china the presidential elections here in the united states. could one make the argument this time is different?at the beginning of the year you had major investors calling for recession. we have seen a rebound in the markets. things are ok. will today's attack ring us back to think maybe they are not? federico: in thinking about what

these great global challenges provoke i think terrorism does have a significant effect on political environments. you talk about brexit. today i was thinking this may push the support for brexit higher because people will want -- the u.k. will want to have better control over its borders. i do think it does have an effect on the political environment. from my perspective, it is more than short-term effect. what i am focused on is really long-term fundamentals. the reality is that political environments have changed and do change over time. ultimately, great companies continue to exist whether you have a government that is pro-immigration are anti-immigration. stephanie: if those companies are domiciled in europe, specifically peripheral countries where you already have a sluggish recovery or emerging markets, how much more challenging is it for those good companies to get around barriers like this? federico: i think it is very challenging.

historically if you look at security and gdp they are highly correlated. as security goes down usually gdp tends to go down or tends to flatten out. i think that is a concern in general. the way i would answer that is you have to adjust by price. if one wants to buy a company in a peripheral economy i think what you are looking for is to be able to protect yourself against these events, these short-term events, through a better entry point. jonathan: thank you very much for joining us. you are going to stay with us. the three attacks in brussels have killed 26 and injured at least 130. we will bring you more on the tragic events in the belgian capital next. ♪

vonnie: you're watching bloomberg go. boeing will says probably miss the deadline for delivering the rest of the new generation of areal tankers. officials do not expect the initial 18 kc 46 is to be delivered until march of 2016 -- march of 2017. boeing says it should deliver the planes on time. a protest against uber turned violent. thousands of indonesian cabdrivers took to streets and attacked drivers who did not take part. carnival says it is getting approval from cuba to begin so-called cultural exchange trips to the island. it is not like your ordinary crews. passengers must spend at least eight hours a day involved in some type of cultural experience. prices for the voyages start at $1800 per person. jonathan: thank you very much. about 17 minutes away from the open at nyc.

futures a little bit lighter. pre-market here in the u.s. you can see the airlines are on the move. american airlines down by 2.25%. delta, also down by 2.6%. travel and leisure stocks in europe, the biggest losers on the benchmark index, the stoxx 600. carnival down by almost 4%. hotels, let'she get you up to speed premarket. hilton down by half of 1%. starwood down by 6/10 of 1%. starwood has come out with a statement and said hotels in brussels are on lockdown. intercontinental hotels lower by 3.4%. travel sites premarket, expedia down by 2.8%. tripadvisor down by just over 2%. i figure we get the picture for the stock market ahead of the open. stephanie: joining us now is general wesley clark. good morning.

give us your immediate reaction to these attacks in brussels. gen. clark: i think this is probably on par -- on the part of the terrorists, a use it or lose it attack. they probably had a number of different options in planning. i think they got the sense that the belgian police were closing in and my instinct would be that this was a use it or lose it. this does not mean this is the entire inventory of attacks that could have been pulled. there may be other terrorists out there. certainly a support network of bomb makers and communicators and logistics people who get people from place to place and provide them food and shelter. all of that has to be rolled up. this is a full-court -- this has got to be a full-court press by all of the security elements and belgium today. they have wisely -- obviously

they had to shut the airport. as much as they can do to shut down the country and the area to hold people in their so they can do the investigations over a period of days. this is a very serious incident for brussels and they have to use this incident to go after these networks and take them down. david: this is a very serious incident for brussels but also more broadly for europe. you served in brussels. the question i have for you as a commander is, was this avoidable from what you know right now? is this something we should have seen coming? or is this a tragic, awful event but nonetheless inevitable in a war? i figure a lot of people saw something like this coming at it could also happen in other countries in europe. just so much going on. so many people unaccounted for and their activities in

communications. europe, since the end of the cold war, has substantially relaxed its internal security. the paris attacks last fall were a big warning. internal security was stepped up but these measures take years to implement and refine. everything from the trade-off between security and privacy, data communications, to the effect -- the effectiveness of local police, to sharing information between different police forces in the same country and sharing with international and tracking movements. the influx of migrants into europe has made this even more difficult. david: in your answer, you really took us to intelligence. you talk about security, but quickly went to cameras and intercept and things like that. is that the key, better intelligence? gen. clark: i think that is

where you have to -- that is one of the things you have to do. obviously you would like to keep people with bombs on the outside. but it is impossible to do that in all public facilities. in europe, for example, when you get into the airport you cannot go in without being checked. but people are picking up relatives, they are waiting for them outside the airport and sometimes going inside. next to where they come out from the international arrivals. waiting for people. those people have not been inspected. people buying tickets have not been inspected in many airports. can you do a better job keeping people on the outside before they have been inspected? sure. ultimately it is about information and intelligence. jonathan: you touched on something about how security is developed or rather had not

since the cold war in europe. i wanted to talk to the nature of the threat that has a we talk about terrorism and how vulnerable europe actually is to that threat. gen. clark: i think you have to believe that all societies are vulnerable to this. europe certainly is roman numeral. for to -- certainly is home rubble. you also have data that sibley cannot be broken. skype and many other data services are difficult for people to break into. especially in real time. forward to, as you move , you have got to get the right balance between reading social media and the networking and data and analyzing the data and providing people the privacy they need for their personal lives and to do business. stephanie: general, i want to

reset for a moment. as you talk about privacy and the use of social media and cell phones, we need to put into context just how significant these attacks have been. we are getting headlines from the brussels mayor who has said 106 people have officially been injured in the metro attack. he says he believes it is 20 people dead in the metro attacks. this is a significant day. to your point as we talk about privacy and all of these platforms we are able to use, what needs to be done? how should we approach privacy? tim cook says one cell phone is an extension of himself. gen. clark: it is not just apple and its cell phone. i think you need a comprehensive review of all the media, all the networking, all the telecom

means, all the phone manufacturers and figure out what is available and what isn't. what can be analyzed in real time and subsequently. ont you can collect metadata would need to have real-time content analysis of. you cannot make snap judgments on this. this requires analysis. you have got to go into the scene of the terrorism. you have to look for the clues, put the networks together. you have to find pieces of the tol phones and then you have look back at the phone records of these people and what their communications patterns have been. you cannot simply rely on telephone and data communications because some of this could have been done face-to-face. , cells that are isolated from each other and linked together only by people who do not know the whole picture. you have to unravel the whole structure of this.

cannot focus on just one thing and certainly not just on apple. that is going to be part of the discussion, no doubt about it. david: let's turn back to security. i understood you to say that in europe they will have to consider screening people before they go into airports. should we be doing that in the united states? gen. clark: i think it depends on the threat level but i go to several airports around the world and often baggage and so for is screened for you can get in to buy a ticket or get near it ticket counter. it depends on the particular information and threat situation in that area. as we look at the case in brussels and if we know exactly where the bombs were and you can see pictures of areas that have been devastated, it is hard for me sitting here to determine where it occurred.

i think we will on a case-by-case basis have to look at extending the security envelope outward. jonathan: former nato commander general wesley clark. thank you for joining this program. we will be covering the tragic events in the belgian capital in brussels that has killed at least 26 and injured at least 130. the reaction from the world of global politics, economics, and markets. ♪

stephanie: you are watching bloomberg go all morning. full coverage around the tragic attacks that took place earlier today in belgium. we are less than five minutes away from the market open and here we had it, a seven-day positive street from the dow. a four day on the s&p 500 and that has been broken as futures take a leg down, reacting to the terrible tragic news out of belgium. emerging markets stocks are falling and currencies for the most part around the world.

investors are looking for a safe haven. as you mentioned earlier, you are looking at travel leisure hospitality in europe taking a hit. jonathan: thomas cook, down almost 5%. air france down 4.8%. a safe haven bid out there and you see that in the treasury market with yields down. the two-year down by about three basis point. 10 year up by three at 1.8 percent this morning. stephanie: david cameron actually tweeting out, i have just spoken to the belgian pm and offer to these and condolences. we must stand with belgium. we'll back. -- we will be back. ♪

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in belgium. here with us this morning, jonathan and david, with .ederico we are joined now by the chief investment officer for iba funds, charles. charles, when we see news like this there is that old wall -- celldage, by on the on the sound of trumpets. additionally he see a rebound. are we at a moment where things are looking tragic but it is time to be risk on? that's a tough question. stocks and prices around the world strike us as being elevated. you can look at brazil in the middle east. this may not be the time to pounce.

>> talking about cash, what needs to happen to get you to put that cash to work? last time it was at a high was in the fall of 2008. very low interest rates. corporate profit margins remain high on mining. we find stocks to be overvalued. basically we need stock prices to go down with one potential things for that being getting worse and china, which we think could be happening. stephanie,answer, it's not so much the you don't buy right now because of the events in brussels. it's because they are overvalued, in your view. almost over -- irrelevant. it's a tragic event, but to the markets it's largely irrelevant. think that the economic imbalances in the financial markets around low

interest rates dwarf in their importance the consequence of political risks. having said that, there are a few names that we are actively buying. some of them in the travel industry. would you look at this as a buying opportunity? charles: yes. it's getting cheap. >> and today they are getting cheaper. charles: slightly. there any leading indicators triggering you going into value stocks? >> the biggest worry is a credit trend in china. to hear this weekend the head of the central bank over there worried he is very about the amount of debt, especially corporate debt, speaks volumes. >> we are two and a half minutes into trading here in new york. the index is down across

the board. the dow jones industrial average losing 50 point. not big losses here, but money is flowing into safe havens. if you take a look at gold, it is up right now. the 10 year is up, pushing the yield down. taking a look at the yen, you can buy fewer for your dollar because people are going there for safe haven. the interesting thing is oil. typically we see oil rising in the wake of tragedies like this. today however we see it down. 04 per barrel. it's interesting that it's down today. stocks that are hit the hardest will of course be the travel stocks. is down.rlines carnival, the cruise line, is down. internet travel stocks are down as well. i've been looking at this screen. 664 is the number in our hash tag chart library.

showing you where the pound is relative to the brex concern. it travel stocks -- brexit concern. travel stocks are still doing worse than the ones in the broader market. it's interesting here also to look at gold. flying up initially, then leveling out. the belgian 10 year yield, diving initially as people went into that debt. now they are rising up. interesting to look at this chart, 664. quickly, some analysts calling for what was nothing to do with brussels. chevron was downgraded. raymond james and amazon as well. wyndham resorts was upgraded with a price target of $130. very interesting, you would think that along with travel stocks, casino stocks would be hit.

wynn resorts up 3.5%. minutes into the session, beyond the halfway point in europe. joining us in london is guy johnson. guy? guy: matt told us about some of these, let's deal with the others. volatility, look at this, big spike this morning, we are tracing some of that and are just beginning to nudge up again a little bit. i think that's probably worth tank attention to. picking back up in europe, we will watch carefully to see exactly what happened is the session develops. travel stocks initially taking a hit, coming back a little bit in the three-day chart. here's the thing, with everyone of these incremental attacks there is concern the you are going to get a bigger and bigger discount applied to travel stocks in europe because of the incremental effect. every single attack that

happens, people will become less and less likely to travel. i think that's what the market is thinking about at the moment. coming lower a little bit, for the rest of the session, over to you guys. the other thing is, and i'm calling this the brexit spread, this is what david cameron says we shouldn't do this morning. we should not put what has happened in brussels with the side-by-side. not related stories. david cameron made that clear earlier on. here's the thing, look at what's happening with the euro. sterling at the session high right now, taking a look at what's happening here, coming down, it's just in a sideways channel. that spread have been widening out. david cameron saying you shouldn't do it, but the market is making that trace. you think about this, the market reaction seems

to be quicker than traditionally , and we are actually seeing a pretty strong snapback, one would say, given that so much is still unfolding. wouldn't you say? attacks areis different, they happened over the weekend. what happened saturday night into monday morning, a very different kind of story. but when you look at what is happening elsewhere and the other attacks, we are beginning to see a pattern. we are getting used to this idea that we initially see a leg lower and then the market tends positivelyreasonably after that. 9/11, it took a month. betweenen the half-life attack and market recovery has come in quite sharply. seven/11, it took less than a day. it is becoming part of the muscle memory when dealing with these events. ourhanie: let's get back to guests here, federico, charles.

charles, markets are paired things quickly. does this impact your long-term strategy? a many were calling for recession and then in the last couple of weeks seems that we are back strong. we are at december levels. charles: the beers of a recession in the europe -- u.s. were exaggerated back in january. the main drivers for the next few weeks and months will probably be the price of oil. has recoveredil nicely. we think that this could be temporary. i'm also very interested by what's happening in credit markets. it will have a huge bearing on markets. stephanie: frederico? federico: we have to go back to

what we think about the long-term. we still see a significant amount of opportunities today getting into certain sectors, call it the next 10 years, it will be compelling with sectors that we think will make money. one example is health care services. we just completed an investment in that space underpinned by strong fundamentals. ultimately that's the that we are making. charles, you are a well-known goldbug. matt? people kind of freak out when the gold silver ratio gets above 80. .t usually happens out of war what do you think about where we are right now? aboveld silver issue got 80, but when it comes down after that historically silver is a better investment. charles: gold to silver or gold

to oil would be equally, if not, spook year. silver has a hybrid use. it's used as an investment in industrial usage. the fact that silver is lagging is a sign that the global world economy is weakening. so, i'm not surprised by it. what could help it going or word is the willingness of so many central bankers out there to interest rates on us. not only negative real interest rates after inflation, but negative nominal interest rates. that should help drive the ratio much higher, we believe. hold golde do you right now? what percentage of your funds have you been increasing? charles: 6%, and we have an increasing it in the form of the olein, stored safely in vaults of hsbc. now, the miners have had a lot of hedge when -- headwinds for many years.

we understand that the price of oil helps to cut costs. the fact that many currencies in countries where the mine is being produced, countries that are weaker now than they were a few years ago, that's also helping to cut costs. but we think it remains a grossly mismanaged industry. the balance sheets remain very weak. look at buried gold, for instance. we think that it's easier and safer to buy the real thing. >> the general tone i get from you this morning sounds thatsive, masking the fact you have taken a dabble in the asian hotel sector. talk to me about that and why. that's the last place i thought you would the. charles: oftentimes to buy things cheap, it has to be where .he outlook is bleak i don't mind bleakness, as long as it's priced in. one stock is hong kong and shanghai hotels, family controlled, which we like.

we like the concept of eating your own cooking. they have owned trophy assets. within the hotel they have exceedingly are profitable mount. albeit a lot less now than before, as fewer chinese are making their way to hong kong. and in they own a few hotels outside hong kong. one in chicago. another in istanbul. one in burma. another was built in paris. our worry is that they would use the free cash flow from those wonderful assets to finance hotels that may not do well. in hong kong they also own some thatvaluable luxury homes are yielding a lot of cash flow. on hotels, listed in london at 1.3 billion pounds, it is located in france, london, germany, and elsewhere.

morning, news of this how does that play into your investment strategy? charles: the hotels are really diverse. it is true that terrorist attacks hurt the travel industry, including them. also, weaker asian currencies last year, it hurt them from a translation standpoint. fact thatke is the they own hotels. they don't just manage and own them. the stock is at 404. last year the parent companies added 4.1% stake. they now own 65%. they paid 586. with balance sheets that are very strong. again, we understand that it's no earnings momentum, short-term it could go down a bit. but they will be a survivor and in the past the company several times has been able to trade at or slightly above value targets. as it relates to

travel and leisure, the mayor of brussels now putting the death toll of the attack probably at 20. 106 others were injured. but not just today. look at the refugee crisis. you say that they are opening up a hotel in istanbul. how many people will be looking to go to a luxury hotel in istanbul given the refugee immigrant crisis? i'm not denying those headwinds. but because the balance sheet is so strong and the stock is so cheap, i think it will do well. my biggest worry right now is for the parent company to take advantage of the stock prices and try to squeeze it out at too low of a price. stephanie: gentlemen, you are both staying with us. federico schiffrin, charles de vaulx. where do we stand hours after these tragic attacks? afterst 26 reported dead

the explosion both at the airport and at the metro station . the mayor of brussels saying probably 20 17 seriously wounded. nato has raised a state of alert at its brussels headquarters. the transcript of the described destructionn -- across europe, it's all halted. the airport is closed until at least tomorrow. president obama is due to speak soon in cuba, specifically about the attacks. ♪

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stephanie: you are watching "bloomberg joe." this is your latest bloomberg is this flash. today's the showdown between fbi and apple, but it's been called off. says they may be able to unlock one of the iphones without the help of apple. apple has opposed efforts to force it to undercut the security features. i'mary, the federal housing -- finance agency says the numbers were up 5/10 of 1%. cap six percent year-to-year. a giant of silicon valley has died. andy grove was a hungarian refugee who came from the ruins of postwar europe to become one of the cofounders of intel. they are now one of the largest

semiconductor makers in the world. pet --k was a bestseller, "only the paranoid survive." 79 years old. tolet's get back now federico schiffrin and charles de vaulx. charles, i want to come back to you and something you said earlier about the fundamentals. you mentioned oil as terribly important. as you look at oil and try to figure out where it is and where it's going, what do you focus on the most? the amount in the ground? the amount in storage right now? what are you looking at? charles: it's truly the amount in the ground and trying to assess, which is hard, the cost needed to get the oil out of the ground. we think that replacement cost around $55robably more. within the next few years we would expect the price of oil to go back to 55 and above. my problem is -- if you look at

the high-yield names in the space, we think that the price of those stocks are already discounting those prices. we think that the sector is a cell, not a buy. have seen oil fall sharply on this idea about the april summit and that the production will be halted. can we trust it? when you think about all the countries you have involved here , saudi arabia, venezuela, everybody has their own motivation. especially at a time like this when things look more bleak around the world, do you actually think we will get a unified voice? they are incentivized to cheat. that for i believe practical purposes, opec has stopped being a cartel over 20 years ago. ultimately the wrong laws of supply and demand wilson -- will prevail. do you think of the

summit in qatar is so important? federico: no, i think it's irrelevant. >> you are invested? federico: what we have been doing in europe, cheap or expensive when getting it out of the ground, the first one is -- you are finding distressed levels. we are finding that we can find assets at distressed prices. second thing, service costs have fallen from about 60% at the peak. if you put those things together, we think that we are pery buying oil at $25 barrel. depending on what your view is on the long-term fundamentals of oil and gas, we think we are fairly protected area stephanie: asking you about central banks, putting brussels aside, across the board, fomc, chinese banks,

they have shown us what they are doing to stimulate the economy. the outlook is pretty bleak. the fact that we are not seeing these attacks today, does it with themse pictures having less and less tools in the shed? i spoke to him and he was very concerned about what this meant for consumer confidence, which is incredibly important going forward. for some foremost he was worried about the tragic loss of life in paris. human confidence is very fragile. they are worried about the low prices becoming deeply embedded into the economy. going back to the oil conversation, typically retracing the oil price from 110 down to 30 should be good news, but the central banks are worried about prolonged inflation and whether that becomes embedded in the sector. so, for them it's a huge, huge concern. it's such an

important point. consumer confidence didn't move in line with qe. all they did was help assets. if you look at the true economy, consumer confidence spending did not happen with great gusto. gentlemen, you so much for joining us. federico schiffrin and charles de vaulx. we will be back with more, coming up next.

♪ >> this is "bloomberg ," let's get you caught up on the breaking news we've been following all morning. at least 20 dead at the brussels airport and metro station. transport disruption across europe. the brussels airport is closed until at least tomorrow. quick look at the market reaction, you can say this -- see the safe havens throughout

the morning are lower as well with the gold climbing. equity here in the u.s., down. the s&p 500 down by seven points. equity in europe is a little bit lower. a little bit lower as well as. tragic events that i just. all day we will be covering the market reaction. at 10:10 president obama will be addressing the attack. we will have coverage right here on "bloomberg television." stay with us. ♪

>> welcome to bloomberg world headquarters. >> terror in europe. betty: 30 killed, 100 injured in a bombing in brussels. belgium is at high alert. the prime minister calling it a violent assault. market: stocks in europe following the most in a week. u.s. stocks are also lower. travel and leisure shares lead the decline. we will have the latest on how all the markets are reacting to the tragedy. president obama is expected to address the situation from brussels -- in brussels when he speaks from cuba. we will bring you the remarks live as soon as they begin. belgium, at its highest terror alert right now. at two locations in its first round, 8 a.m. local time at the brussels airport.