good morning. welcome to "street signs." i'm louisa bojesen. >> 84 people. including children have been killed after a truck plows through a crowd in nice. extends the state of energy for another three months. >> france has been hit on the national holiday, the 14th of july, a symbol of liberty because human rights mean

nothing to fe gnattics. >> travel strongs sell off in the wake of the attack keeping most in the red today. >> swatch falls sharply as swatch issues a profit warning as first half sales sink. at least 84 people have been killed and 18 critically injured in nice after a truck plowed into a crowd watching bastille watching fireworks last night. french police say that weapons and grenades were found inside the truck. local media says an id was found in the vehicle and it belonged to a french national. investigators are still working to identify the driver. no group has so far claimed responsibility. >> addressing the nation earlier

this morning, french president fran saw hollande called thele attack a and extended the state of emergency for three month. >> after paris and now nice it's all of france that's turned threat of terrorism. in these circumstances, we need to dim strait absolute vif lens and unwavering determination. >> expressed condolences to families of the victim and vowed to fight against terrorism. >> we are in a war with terrorist who want to strike at any price and in a very violent way. >> world leaders have contend the attack in nice. european president tusk safe europe and asia stood united.

>> it's tragic. the subject of this attack with people celebrating liberty, quality. today we all of europe and asia stand united with the french people and the government. we condemn this tragedy and teach up our fight against extreme violence and will hatred. >> now, also offering her condolences with merkel. expressed the shock at the attack. >> everyone who is here at the asia europe meeting summit is united about the disbelief of the attack in nice. words cannot express how this connects to us to our french friends during the painful hours. >> london the flag has been set to half mass and wrapped as well

as a sign of mourning. >> what has been striking about this story, in the mast 24 hours the french were celebrating bastille day. it is a huge event on the calendar of the french people. this embassy as you can image was well and truly in celebration mode when news started to come through late last night about the attacks in nice. this morning the first order of business has been to lower the french flag and european flag as a sign of respect to those who have lost their lives. so far confirmation, 84 people have been killed and 18 are critical injured. security has been increased here this morning. not because of any perceived security threat, but as a show of support. these embassies globally and this is just one of them will be fielding many phone calls from concerned relatives of those who might have been on the ground in nice. don't forget it is early dafs and authorities are trying to

determine who was caught up in the violence. a very busy day for the embassies globally. i think what's going to be important is the political response to the attack. it is the third attack on french soil since january last year. the first one striking the heart of free speech, the charlie hebdo attack. attack on a jury shop. and paris happened in november. striking the heart of those who hold paris up as a symbol globally of romance and love. everything that is positive around paris is in the minds of many, many people and that was destroyed after multiple attacks on the ground. horrific sophisticated attacks. now you have this attack though nice. this is the gate way to france. sit a very busy time in that port of the world so it's tourists as well as locals who have been caught up in the latest events. the political response here it is very early days for theresa

may just forming a new cabinet. she was very mitch hands on the last time the paris attack. civilians from france to the uk to brussels, other parts across the continent, will be very concerned about their security on the back of this attack. >> obviously it's just a few hours since the attack took place. i just wondered what further you're expecting from the french government here or the security forces in terms the of announcements. i believe french president is the believed to head to nice today. >> indeed. the french president will be on the ground in a show of support. french counsel is meeting as we speak. already the response has been very strong about stepping up attacks in syria and iraq against isis. don't forget we haven't had responsibility taken for this attack. we just know it was a french national. the response has been to increase the language around

external support already this week. we knew there was a new military aircraft carrier headed to the middle east to try to tackle isis. with all the increased concerns now with safety and security across the country. 10,000 security will be deployed. in addition to that there's been a call for more help for army reservers to step and you happen work with the police and authorities. i just want to come back to the threat. there were a lot of concerns, a lot of warnings headed up there might be an attack around south of france. now, this has been a similar type of attack, but it has been also kind of ramming instant where a struck has barrelled into a crowd. there have been other similar types of attacks, but nothing with the death toll quite like this. there's been about three attacks since the end of the year, but

the death toll was one person and a number injured. this is a very different dialogue. 84 people dead in this attack. intelligence has to step on on sdmesic soil in france. >> we still don't know whether or not this individual acted aide loan or whether there was more people involved. whether it was a lorgeer group. no one is claiming responsibility as of now as well. >> it's been called a terrorist crime by the french president so we know it is some form of terrorism, but exactly who is behind it, whether it's al qaeda like in the charlie hebdo case, whether it's isis, we don't know. it might be one person operating on the back of something they believe in so we still don't know. we have to wait for that information. it still goes with the same tone that the french have been dealing with back laying a terrorist and threat exsternly.

battlings terrorism and something has to be done locally. you've seen the fallout in the polls. if you look at the declining polls behind hollande and the sweeping support for the right wing party, this is only going to encourage that type of decent amongst voters and we're going to have to look for some response with fran saw holland. you're going to have to wonder what they're going to do at this point to change the dialogue. i mentioned ramifications elsewhere. i think they're awesome. we've seen a vote for brexit here in the last couple of weeks. a vote against immigration, a vote against security concern ks as well as other things. legislation in brussels, but there could be a backlash on these events in a number of countries across europe. >> i just want to pick up on the point you made to step up on intelligence services here. i just wonder given the expanded

powers and the increase in number of armed soldiers they've got at various sights across the country. they continue to do raids at home. they have stepped up powers, but if you're talking about a loan wolf style attack and we don't know the details here, even if they are sympathetic to extremists groums. you can't be everywhere at once. it's tough to say security forces need to do more. >> that's exactly the point: where is the threat in france? it's a fairly big country. you have so many parts of france that are popular with tourists as well as the domestic population. the threat has been arnoound paris. you're seen all sorts of security increase. now the threat has swept to the south of france. this is a huge tourist area. keep in mind the traveling pluck at this time of year, there are

about three or four months of the year international tourists flock to the south of france, nice airport is the the gate way. many of those people stop off in nice itself. the attack has been on the main prom nod at the seaside area. exactly where to authorities concentrate their attentions. that's the difficult one. it has to come down to intelligence very much like what you see in the uk. there so many threats here. so many different facilities that could be attacked whether it's stations or main areas where people gather, it's got to come down to intelligence. >> yes. it's a great point, karen. thank you so much for that. now joining us on the phone is alan mendoza. obviously very early days in investigation will need to continue, but do you see any suggestion in the attack overnight that perhaps could have been prevent bid security forces in france. >> well, as you say, it's very

early in the investigation h. there's been the suggestion the attacker fought off a career criminal who was known to the police. that unfortunately suggested there was some knowledge. they might have had a better sense of how to at least keep tabs on such people. i think one of the problems we've seen in recent attacks has been in each case you've had people known to the police who haven't been monitored because they've been regarded as a lesser threat. maybe there's something going wrong in french intelligence assessment or in the terms of the results meaning threats are not being properly assessed. >> as julia was eluding too, if somebody wants to do something bad, you often unfortunately can't prevent it. all it took this time was as far as we know an individual with a truck and that's it. you're society is also known very much for being a think tank.

from a more societal point of view, what do you think is going wrong at the moment? can we do anything more in terms of preventing this type of anger in the first place. >> well, obviously as you suggested the phenomenon of loan wolf attacks are very difficult to guard against. there's often no chatter about what someone might do. it might be as simple as someone saying i'm going out this way and i'm going oi tack innocent people. on the broader level, what's motivating people to do it. what's causing them to turn against their fellow citizens and actually engage in horrific tactics. we come back unfortunately to the idea of radical islam in our society. the truth of the whole host of things that can be done to clamp down on this ideology and make sure it doesn't infull trait societies. what that unfortunately require

ss a serious commitment by gochts to do that. for various reasons across the western world, governments are yet to take the necessary measures that would be necessary in order to guard against this. >> alan, i want to follow up on your comment. you mentioned rad calendar islam. at this point we don't know what the motive was. we don't know if there was a motive. we saw orlando completely different events, but some similarities and similar quick conclusi conclusions that were made. do you think that jumping to the gun is also one of the issues that we draw conclusions way too quickly as well? >> well, i think until the orlando case it was proven quickly there was no issue in there despite what was going on with the person's concerns. he declared to be involved during the attack.

you have. >> he claimed he had links to many different groups it turned out in orlando. >> yes, but made comments speckly towards radical islam. that's why he had been investigated by the police. he expressed sympathy for radical islam. let's not kid ourselves. the man may have been psychologically disturbed. of course we don't know yet what has motivated this attack. we've yet to see as you say a claim or counterclaim. investigators will have to do their work in order to do this as has been alleged already. he's a career criminal, but it seem as strange thing, a career criminal, someone licensed and dedicated to crime, but not killing himself and others to suddenly take an attack like this: perhaps something drove him to it. perhaps it was something he felt he had to do for another reason. we have to keep the mind open to

the fact it could be a radical attack. >> we remain open to that, but as you and i have both pointed out, very early days and we don't want to speculate at this point. obviously francois's response very fast. step up strikes in syria and iran. >> iraq, not iran. >> iraq. sorry. >> well, just on that point, hollande is quite convinced it's an islam attack otherwise he would not have made those comments talking about, sirria and iraq. what the french are hinting at at least is this has been directed by the dying members of the islamic state in syria and iraq, even if it hasn't been panned by them and as a result he intends to use france in order to assist in the campaign to drive them off the territory they currently occupy in those country. >> alan, thank you so much for

speaking with us this morning. we're going to take a quick break. head to facebook where we're taking a look at the fwloegloba reaction to the attacks in nice. stay with us. we're back in two. p?p?h it's not a quick fix. p?p?h it's my decision to make beauty last. roc retinol started visibly reducing my fine lines and wrinkles in one week. and the longer i use it the better it works. retinol correxion from roc. methods, not miracles.

welcome back to "street signs." at least 84 people have been killed and 18 critically injured in nice after a struck plowed into the crowd watching the fireworks late last night. the driver was killed by police after opening fire. french officials say weapons and grenades were found inside the truck. also an id found in the vehicle belonged to a french national. . investigators are working to identify the driver. no group has claimed

responsibility at this point. our european market this is morning. we are completely flat at the moment. stock share up 600 as indicated for you right there. holding very steady. the let's just look at our main european equity markets as well. you'll see a similar story there. slightly mixed. very flat picture across the board. we are seeing impact on the likes of the travel stocks in the wake of this event in nice and you're looking here at thomas cook, the list goes on with these stocks trading lower. you've also seen a more defensive play in morning in certain areas like the yen. also seeing a little bit of safe haven buying after this news broik r broke. when it comes to the stock 600. travel index can is what we're looking at. >> fund manager joins us now, eric, good. we do send to see this knee jerk

reaction. >> yes, i'm not sure i can add much to what you commented on. it is a new chapter. you don't need weapons of mass destruction or hardware, all you need is hate in your heart to cause trouble. i'm afraid we're going to see more of these things. >> more broadly, talk to us about the market. absolutely. i'm a uk manager, but the uk market has been very strong. despite the markets being slightly wrong footed by the referendum result. i suppose even more a surprise since then the ftse is pushing towards 6700. the all time high is within sight. those are big resisted levels. i think the 7,000 on the ftse. we had to look at it in 1999. i don't know where you were there. that was a long time ago. we nearly got there in 2007 tlen we got hit by the credit crunch. we had a look last year in the

spring. i think equiwe might have anoth look now. >> what is driving the rally then. if the earnings outlook as you say is a bit soggy. why this extra buying? is it relief we know a bit more than what we knew before the referendum or is it on stimulus hopes. >> definitely stimulus hoeps. a view in the market that markets have our backs, but the stimulus has been in place for a long time. at some point markets and economies need to stand on their own two feet. u.s., federal reserve was trying to normalize policy. normalization of policy and that's gone to the back burner. i think in the uk context, a lot of the rise in the ftse is a little bit illusion ri. there's a currency affect going on. >> we had the stimulus. look at bond yields, look at the currency. >> yes. there's been a big move on

currency. you know, it is quite surprising. the uk stock market is not the same as the uk economy. 7% of earnings in the ftse. which is 98% of the market more or less are generated overseas. so the fall in the currency against the dollar, those earnings overseas are translating higher rates. >> what are you doing at the moment? are you buying into this rally or sitting tight. >> i remain fairly fully invested. i run an equity income fund. i'm always looking for good stocks to secure a good dividend and stocks to grow that over time. that's not going to two out of fashion. when you have bond yields less than 1%. when you can find stocks that have sort of bond like safety and yields of three or four, you can see people -- >> such as? >> i like the pharmaceutical stocks a lot. i've been invested in companies like that for a long time.

the outlook for this company is okay. there's dollar earnings as well. there's some new sights coming through. and they're not economically sensitive. so the demand for drugs isn't really related to gdp growth. >> how do you play the potential triggering of article 50. >> my view is the outlook for the uk economy has deteriorated. there are signs the economy was slowing down anyway. heading in before the vote. i think it makes sense for the next few years to be invested far away from the uk consumer. i think the outlook for the consumption is going to be tough which is bad because we're all uk consumers. are people going to buy that new car, buy that extension, buy that coat, i think in the margin

those spending decisions are going to be delayed. >> what about the rotation from the small to medium caps in the ftse 100. do you suspect that will continue or has that passed. >> i think it will continue. a lot of mag managers in many area have been mid cap domestic stocks. done certainly well since the last election. the house builders, retailers, media stocks. uk has been quite good places. those are now quite crowded trades. with all the uncertainty of when we're going to push the big red button, what does this mean, how will it pan out. my guess is it's going to take a very long time to figure this out. >> define how long. >> years, years. >> like you're in line with the

phillip hammond that said it could be nine years. >> yes. it's a cliche because it's true. we just served up double helpings of it. >> great to chat with you. let's look at some of today's other top mover. swatch sliding after warn nag the first half profit would fall by 50 to 60 percents. diminishing sales in china and europe. the company also cautioned that the attack in nice would impact tourpist sales in the foreseeable future. >> let's take a quick look at luxury stocks. just talking in the household goods sector. you can see swatch lower this moment by 11%. more broadly for the luxury sector all under pressure again today as you can see the likes of hugo botsz being dragged down by concerns from swatch group this morning.

>> the german pharma chemical group has upped its seed to monsanto. the largest all cash takeover bid on record is unlikely to entice the company. man san toe has also held discussions with german chemical maker bsf. resulting in this year's largest technology this year. line debuted almost 49% above the line. shared closed 28% higher. we are taking a break. head to m facebook. we're taking a look to the the global reaction to the attack in nice. we'll bring you the latest details and today's market moves after this.

welcome back to "street signs." i'm julia chatterley. >> i'm louisa bojesen. >> 84 people have been killed including children and many more injured after a truck plowed through a crowd in nice. >> president hollande says it has the state of terrorism. >> translator: france has been hit on it's national holiday. the 14th of july, a symbol of liberty, because human rights mean nothing to fanatics. >> travel stocks sell off in the wake of the attack, keeping most european union equities in the red. >> falling on hard times, swatch shares drop sharply after the swiss watch maker issues a

profit warning as first half sales sink. >> so you're looking at a live shot there of the french prime minster, emmanuel vals is speaking in paris. we'll bring you any headlines from that speech as we get them. those are live pictures of the french prime minster. now at least 84 people have been killed and 18 critical injured in nice after a truck plowed into the crowd watching bastille day firework late last night. the driver was killed after opening fire. the officials say weapons and grenades were found inside the truck while local media also say an id found in the vehicle belonged to a french national. investigators are working to

identify the driver and no group so far has claimed responsibility. nbc has more details on how the attack unfolded. >> reporter: this was supposed to be a day of celebration, an evening of celebration across france. instead in the coastal city of nice, just as the firework ended, a truck plowed into the crowd. >> the moment of terror captured on a cell phone. when a white truck plows into a crowd, families celebrating the french holiday bas till day mowed down. hundreds running for safety. witnesses panicking. we started hearing screams. the first moment that people started running, they were kind of zigzagging left and right. we didn't know which way to run. i've never seen anything like it. >> it happened in the city of nice on the famed french relative air ra. one eyewitness said the truck hopped the curb, zig shaging at

a high speed and reports of shots fired. the mayor of nice warning people to stay indoors. fears tonight of another terror attack. there are great hallmarks of terrorism on this attack. people taking a truck or small car and ramming them into individuals or crowds in order to kill them with the most improvised device they have at hand. >> it comes eight months after the attack in paris. several sights struck then. more than 120 killed. a state of emergency was declared and is still in effect today. >> french officials have confirmed the truck driver did in fact fire on the crowd and also had expro sieves and grenades in his truck. he was killed by police. back to you. >> now world leaders have condemned the attack in nice after the opening summit in mongolia. europe as asia stand united.

>> it's a tragic par dorks. the subject of this attack with people celebrating liberty, quality. today we all, europe and asia, stand united with the french people and the government. we condemn this tragedy and keep up our fight against extreme violence and hatred. >> also offering condolences. merkel expressing her shock. >> translator: everyone who is here at the asia europe meeting summit is united in the disbelief about the attack of mass murder in nice. words cannot express what connects us with our french friends in these painful hours. >> hadley joins us in the studio now to talk more about these events. hadley, of course, we're less than 12 hours since the attacks

so people trying to come to terribles with what has happened. authorities trying to figure to the details. were there any broader links, was it a loan wolf. now the issue becomes what's next. >> what we saw during the euro cup basically was they had brought in 90,000 security personal and 77,000 were police officers and the rest were private security officers so they've been spending a lot to make france safe. i think 600 million euros was what they projected for 2016. what we've seen over the last several hours, it clearly isn't enough. the big question is what would be. the people in the government, military, security nobody has an answer. >> because there are already -- the print this morning is speculating did they led down their guard after the euro tournaments were over. >> right and we heard from the defense minister saying we were trying to remain on the alert. we had made it clear we couldn't do step back from this. this was still going to be a

real threat, but when it comes to tackling these issues and finding these folks, the intelligence community can only do so much. >> it's difficult for francois hallland. earlier in the day he suggested the extension of the emergency status the country had been under was going to end july 26. now he has to roll it over for three months. if you're trying to create an environment where people feel safe, it's a very difficult message to send in light of this. >> absolutely. it's something that resinates right now. we just came off that nato summit and one thing everyone was trying to say is not only is there going to be continued unity post-brexit, but we're also going to continue to be very much on the same page when it comes to security and defense. it all begs the question, how many more people do you need to hire? you can't follow everyone. >> we have heard from francois

hollande. his response was we're going to step up our actions in syria and iraq. we heard from john kerry talking about accelerating their focus on targeting terrorism. what are we looking at? he's speaking in russiaover night. what are we looking at here? >> so many angles on this. at the end of the day he said we're going to step up the actions in iraq and syria. what is he talking about. obviously they're been at the foer front. this all play sboos the bigger question of what to do about syria and unfortunately for those who have been saying, you know, all along that francois hollande must go. he's the main problem and were he to go perhaps there would be peace in syria. just doesn't seem to be sharping up that way. the u.s. has to work with someone. they've now chosen to work if they can with russia. they're going to share military

and intelligence. wh what does that mean? they're going to be going after terrorist. >> we have to be careful tieing this to those two countries and the operations of terrorism because we don't know yet. >> home grown terrorism, you can do something about, but also at the same time very little about it as well. hillary clinton said after the orlando attacks, we're going to close the internet? this guy had gone on the internet and that was apparently where he had gotten some of his ideas from. as you initially said, there's only so much also you can do. this was one guy with a truck as far as we know. >> right. and i think this also speaks, every administration has to wln they are faced with something like that particularly in the united states have to think about civil liberties. they have to think about things how far can they really two. we saw after 9/11 security was paramount so i think post that we've been inching back to more

civil liberties taking them back. the question going forward now we're coming up to an election, president obama is a lame dog. you know the question going forward is which model is going to the future, whether it be hillary clinton or donald trump. >> we're going to talk about this now. the democratic prumtive nominee, hillary clinton, a statement. every american stands in strong solidarity with the people of france. we will never allow terrorists to under mind the democratic values that under underpin our very way of life. in the meantime donald trump has postponed the formal announcement of his vice president announcement in the wake of the terror attack in france. the latest from washington. >> reporter: donald trump postponed his vice presidential announcement because of the deadly truck attack. dozens died when a truck ran into a crowd in nice. this caps a day of speculation.

resources tell nbc news that indiana governor mike pence is donald trump's presidential pick. the other finalist included governor chris christie and former house speaker newt gingrich. >> my appeal is probably more national. i have some appeal in virtually every state. i think mike pence would have a huge med westernid western appe >> i'm not going to say it won't bother to me if i'm not selected. of course it bothers you a bit. >> nothing is a done deal. i haven't made my final final decision. i've got three people that are fantastic. >> reporter: donald trump junior told nbc news this is the biggest decision of his dad's life. >> it's obviously going to be someone with dc experience and political experience. >> pence has both. earned a reputation as a consensus builder. >> edward lawrence, nbc news,

washington. hadley you just said we need to have some kind of stronger coalition targeting this. you can't go about this any other away. obama and putin are talking about how to tackle the issue of syria. what happens in either scenario. >> this is a very big question. right now if russia were to agree, it's apparent they would have further intelligence and military coordination. there's been pushback from the pentagon. they are very much opposed to sharing too much information with the russians on terrorists and syria. the question becomes if the idea of this closer collaboration in syria for example is that you know you take out various terrorist groups, not just the islamic state, which of course is the lead rebel group when you talk about who wants to get out, that means that regime trade is off the table. now, hillary clinton, donald trump, they're not necessarily in the same -- you know, they're in the same camp. they're not speaking the same

language as the obama administration. what happens come november, that's the bigger question. >> also bringing it back to europe and the recent brexit, right, and whether what we think is going to be a brexit. whether or not we're going to see more of that in europe. how europe ends up looking. there might be other rempblds and countries going at it alone and how relations then break down. >> absolutely. >> coming to this meeting in brussels on monday. it's the first meeting boris johnson will be attending. the question. >> all about syria. >> he was mayor of london, a multicultural city for many years. i'm curious to see how that experience plays into those conversations in europe. certainly they need some new voices at the table don't they because if these things continue to happen they're not doing something right. >> i want to separate once again the question i'm going to ask

here and is the discussions we're having with the events in nice because we don't have the details to what extent this individual had connections to terrorist organizations. one of the discussions we've been having here in europe with regards to islamic state is the retraction of territory we've seen. so for those european that were heading out to places like syria to join organizations like that, i guess less insen tich to go over there. which will mean they will remain in europe longer. is this something you're discussing as a problem. >> yes, the russians were really at the forefront of saying even their military action in syria saying stability is key. this is what we have to achieve. whatever political cost, we have to have stability. and that's because we know what it looks like when foreign fighters return home it's going to be interesting going forward. when we talk about an instance like this, even before we know

anything about affiliations or what the background is for this perpetrator. it's the psychology of terrorism. generally they usually fit the same kind of profile and that is quite frankly people who have been disenfranchised in some way and are very angry with society. >> thank you very much. here to talk about the tragic events. we're going to take a break. head to facebook where we're talking about the global attack on nice. we're back shortly. stay with us.

j.p. morgan led financials higher after reporting stronger than expected quarterly results. the biggest bank asset reported

a rise in quarterly revenue at $22.58 billion. city group and bank of america and morgan substantially report next week. dick vogue joins us now. initial thoughts on j.p. morgan and how that sets us up for the rest of the season. >> well, i think what j.p. morgan did was chain the strategy this year. it started pushing the sell of loans much more aggressively and that showed up in their earnings. yo might see the same thing with other banks as they report this morning and as you say next week. >> you believe that investors are fundamentally underestimating bank's ability to grow here. as you mentioned j.p. morgan have adapted to the low rate environment here adds other banks have. is that the reason. >> well, it's one of the

reasons, but i think the core is there doesn't seem to be a very good understanding of what the money supply is in any country. everybody is an expert on monetary policy, but if you ask them what money is, they can't answer the question. also, there seems to be a lack of understanding that banks sell products. in other words, they sell loans, they sell loans at a price and the price is interest rates. therefore you have an industry being analyzed on the price of the product without the as a rule volume of the product being thought about. you have all these arguments being raised that these banks can't grow. money supply is going to grow, banks are going to grow. i would say in general the analysis of banks is atrocious because of this total lack of understanding of both money and how the industry functions. >> or, dick, is that because the industry has changed so much over the past couple of years

alongside with the environment that we live in as well. the interest rate environment because surely all things given, it must be harder for banks in general in a low rate environment. >> well, it really isn't, louisa. think about it over the last five years, the average rate on the 90-day tee bill in the united states has been under 15 basis points. it was only five basis points on average for 2015. yet, in this long low period that we've just come through, these companies have shown all-time record earnings. in other words, 2015 was the highest profit period in the history of the american banking industry. if you take a look at j.p. morgan, it's always characterized as being too big to fail, a company that can't be managed, a universal banking model that doesn't work. and yet j.p. morgan made more money last year than every company in the united states except apple.

so clearly people are not analyzing this industry properly because you never got any indication that what i just said would happen, but it happened. and if you go back even to depression, if you take the period from 1934 to 1947 when the average interest rate for that whole period was 26 basis points, earnings went up virtualvisito virtually ever year. the core problem is not that the banks have changed, but that people don't seem to understand that banks sell products. and when they talk about banks, they don't talk about the products. you wouldn't think about talking about apple and not mention how many phones they were selling and all you were going to talk about was the price of those phones, but that's what you do about banks. >> so briefly how much loan growth would you anticipate in the near term and what are you expectations for city and wells as well. >> i think city will do 1.10.

i think wells will do $1. i think commercial and industrial lending has been growing at a rate of 9 to 11% for the last three years. we're seeing a pickup in the credit card area which is fairly substantial. you know, auto loans have been growing at a fairly rapid pace for this period. commercial real estate is on fire in terms of the growth of loans there. and, you know, one thing that people don't seem to understand even when they talk about prices is that as i mentioned, the 90 day rate was an average of five basis points all last year. it's 31 basis points today. so when people talk about how interest rates are low for long, they're not mentioning the fact that interest rates have sex up the if you're looking at the bill. 38 basis points so the short rate has gone up.

it has not gone down. >> dick, thank very much for getting up so early to be with us. dick, boef the analyst at rafrtty capital. we really appreciate it. >> there's always like this we do a whole lot of stuff after something happens and then a problem pops up somewhere else. >> i know. >> european equity markets are a little bit lower at the moment. moved sliektly down within the last hour or so in trade. our european markets in general were flat lining initially this morning. slightly mixed. we're now seeing a bit more red out there. at least 84 people have been killed. 18 critically injured in nice after a truck plowed into a crowd watching bastille day wat watching fireworks late last night.

david, we're all coming to terms with what's taken place in nice. again, the truck driving at high speed for a very long time. it was more than a mile that the truck drove. hitting people in its way. there's so many angles to approach this from. how are you thinking about the events that took place less than 12 hours ago. >> looking at it in the context of an increased series of -- or a series of increased terrorist threat incidents in france and a very significant attacks. obviously in november last year, but we're also looking at it from the point of view of the cat and mouse game the authority haves to play with terrorists these days. you know, ten years ago the favorite method was the improvised explosive device. in the west it's moved towards firearms in the last few years. again, as seen in paris, but

there also been a number of vehicle weapon attacks. on a much smaller scale, but obviously this suggests that as authorities are catching up with one threat, the threat moves and the people responsible for this are taking up other options as soon as they can. >> david, we have multicultural societies across europe. everyone country across europe is multicultural. do you think we need to look deeper into the social system and what appears to be lack of integration, a great lack of integration. many pointing fingers at paris for that lack of integration, especially for a lot of north african people who have come to paris over the past years. do we need to address issues that are a more social level. >> i think the social level is an important factor here, but let's not forget these multicult usually society didn't just

appear ten years ago. they've been around for a very long time. there was overwhelmingly no problem with any of this for a very long time in europe. there are so many external factors in play here as well. i think the rush to scribe this to multicult richl and any form of political viewpoint from wrern government is a little misplaced. >> david, what more can the french government and the security forces do here as you quite rightly mentioned, three large-scale attacks in just the last 18 months in france. >> yes, exactly. and three attacks of more or less changing format as well. i think it's obviously very difficult. the government was keen to end the state of emergency and the

extra security that's visible on the streets of any france city that you go to at the moment. they're very keen to end this at the end of tour defrance, july 24. they said this morning that's not going to be possible now. they are going to extend for three months. the nature of this threat can spring up for you unexpect sources like last night. i think there's going to be a review of how public spaces and major gatherings. there's going to be a review of how they can be protected and. it's a cat and mouse game. if you close one threat door down, another one will -- people will look for another one to hope. >> david, thank you very much. dave lea.

>> very sad way to have to end the show. we've got comments from various officials this morning, various european and international officials that are all coming out with condolences with what's taken place in nice. people waking up and coming to terms with another sad event. we're going to leave you with pictures of scenes from outside london. where people are gathering to mourn the victims.

>> new this morning, china's gdp report shows the economy expanded faster than expected in the second quarter. plus markets now, the s&p is trying for its first perfect week since 1998. global concerns and worries derail the rally. it's friday, july 15, 2016 and "world wide exchange" begins right now.