in europe it has been 3% of gdp. when you're in a situation in which credit is not going to work the same way as it did before, we cannot have debt the way it was before. -- we cannot have debt growth the way it was before. the interest rates to bring down debt service payments cannot decline. let's not look to get debt growth as a solution. you can spend with debt or you can spend with money. we need to have more money into the system. money can produce more purchases. it also means that when the two levelers are interest rates and currency, when the interest rate lever doesn't work, currency becomes more effective. we must see more volatility in currencies. the average cost of structural reforms, structural reforms are important. the average cost of eight -- of a southern european, after adjusting for the amount of time that they work, vacation time, the workweek, retirement age, is about twice what it is of an american worker. so it is expensive. either that will lead to structural reforms in the form of changing

in europe, 3% of gdp. when you're in a situation in which credit doesn't is not going to work the same way it did before, we cannot have debt growth of the say what we had before. we cannot look at it the way we did before. the interest rates cannot decline. yet, let's not look at data growth as a solution. that means you can spend with a debt or money. money is more important. when we see transactions, the ecb policy, it needs to have more molly -- money into the system. it can produce more purchases. it means when the 2 levers interest rates and currency. when the interest rate lever does it work currency becomes more important. we see more volatility in currencies. we much see it depreciate further in the euro. we have not seen it in the yen. the average cost, it must be structural reform structural reforms are important. a southern european after adjusting a worker after adjusting for the amount of time they worked, vacation time, the work week, retirement age, it is about twice of where it is of an am

>> is the question that we cannot afford to have you week in europe? -- qw ine in europe. it is necessary, but is not sufficient. >> are you saying that we are not as imaginative as the u.s.? i am joking. i think it is an emerging market in terms of growth. i'm very positive of the u.s. i'm a lot less negative on europe than most americans. allow me to use this example. we waste $9 billion, a lot of that came from the american, and may i say very smart money. we see a lot of investment in europe. i think the biggest challenge is unemployment and getting the recovery to be broad-based. when we do structural reforms and i was happy that i was not want to bring it up, we have , spain has created 3000 jobs. growth is up to one half 2.5%. we need complementary economies. we cannot all do the same. talking to my customers, i make loans to companies that create jobs. they have aspain has a very robust motor market. we have more productive factories of the same company in spain and in germany. i don't think all is lost. we need to do more. i am confident though that europe will ma

across europe. investigators revealing up to 20 jihadist sleeper cells scattered across the continent. some plotting eminent threats. they have been tied to the paris terror attacks. we are breaking down the developments overnight. good morning. welcome to "early start." a lot to get to. i'm christine romans. >> and i'm john berman live in paris. we want to welcome our viewers in the united states and all around the world. it is 4:00 a.m. in the east. 10:00 a.m. here in paris. breaking overnight. new information of a terror threat spans four countries. western intelligence source tells cnn it involves 20 sleeper cells. police in belgium shattered a cell thursday night in a raid. you see police walking by here. secretary of state john kerry has just come to this location. he is now leaving. we'll talk about that in a bit. a raid in the city of verviers. belgium officials say that was one of several raids. in this raid foiled a major attack. authorities will not say, they do not confirm any link with

while europe responds the u.s.s as the homeland security chief says today we are in a new phase of terrorism. so what is he doing and what is the administration doing and what is congress doing to try to stop the next blast or siege or some other disaster on american soil? good afternoon. i'm jake tapper. welcome to "the lead." we will begin today with our world lead. as many as 20 terrorist cells and anywhere from 120 to 180 accused terrorists could be ready to strike at any moment according to a western intelligence source. but while these alleged terrorists move in the shadows, today in france germany, belgium, counterterrorism agencies swept in on suspected jihadi units. already operational inside their borders, they say. in britain, london police detained an 18-year-old girl on suspicion of terrorism offenses. this as in france germany and potentially even ireland, police executed terror arrests of some kind or another. the breadth of this terror crackdown and the speed of these developments is just startling.

europe focuses on this.han 60 plots here or successful terrorist attacks, i use the word successful in quotes, since 9/11. so more than 60. we had new york in december we had ottawa, we had sydney. this is the new normal unfortunately. and we have to look at best practices and what we can do to prevent these sort of taebsattacks here at home. >> we've confirmed at cnn that cornell was not in touch with isis. but does that matter? if he had been successful the end result would have been horrific no matter if he was involved with isis. >> i'm betting we'll find out he may not have been in touch with them but i'm guessing he viewed their social media. isis the islamic state, is a social media superpower. that's how they're recruiting people to their cause. you don't have to go over there for training. you can watch it on the video, be self-radicalized home-grown learn how to pull off these sort of plots. this is a real problem because the internet transcends national boundaries. >> certainly does. thank you, pe

because of the recession in europe. was in paris staying at the most expensive hotel in paris. you walk into the lobby and see -- >> hold on a minute, brian moynihan. good morning. did you just hear that? >> we get great discounts ok? corporate travel. >> you see two red giant basically, polar bears. you don't know if it is christmas decoration or art. it was explained to me by the manager there may to basically attract russian tourists. except, there were no russian tourists because of the collapse in the ruble. the dining room was empty, the lobby room was empty. the russian crisis is basically hitting hard for luxury travel especially in europe. >> let me talk about air travel. ♪ every night in my dreams ♪ it is all titanic. it is jack and what's her name rose on the bow. there is the madness of what the business class ticket costs. >> i will take your "titanic" and raise you. i think there was -- megan is right about this. if there's sufficient competition. i don't think we know there is sufficient competition in th

can europe create jobs?s to create jobs but you need structural reform to begin to create jobs. look what we did in silicon valley how many hundreds of thousands of jobs we created over the last 5-10 years. >> they need to pull their year -- they need to pull their weight. there is a big climate deal that would fuel anxiety but a lot of opportunities. there are development objectives. those are key agenda items. in the world of central bankers, regulators, policymakers, business, all of them have to rally around jobs and growth objectives. >> the central bank is doing its part and is doing as much as politics will allow. business leaders light -- business leaders are ready to go up in the question is whether there's going to put a dynamic framework that has got both demand and supply in place for growth. >> banks are ready to lend. we are the transmitters of monetary policy to the real economy, to businesses and people that want to buy a home. we need a balanced approach to regulation that takes into account

there is a kind of rage muslim rage in europe. >> no.ously are some people among that community very angry. people committing anti-semitic attacks on journalists and terrorism. these are individuals motivate bid anger. the question is does that reflect the community around them? is that born out of the community around them or imported a foreign value they have adopted as a political movement. what's interesting muslim countries in europe despite marginalized marginalized educationally seem to be more contented with their life than the normal population. there's not a level of discontent with the society around them or lives they lead among muslims in europe compared to other kbroops. it groups. it's not something that exists in the larger population. >> let me ask you about sean hannity's specific claims which, again are mentioned as well. no-go zones where not even police and fire are allowed. sharia courts established, prayer rugs in every hotel, are italy of these things true? >> this is the sort of urban myth that can only occur wit

especially in europe.rks through exports and the wealth of fact and the credit impact are still not there. it is a limited impact. corporate's investing or not. there were cfos and i asked them which will be using more capex next year. two out of 40. >> what do they want to see? >> they want to see more reforms and something happen on the fiscal side. everybody thinks it will work in markets. they see it as a temporary measure. until there is not governments you will not see investment starting. >> markets are being complacent. >> i think we have to avoid things like greece. we were shorting greece and portugal is on the ends. they have kicked the can. spain has done reforms. we like investment grade. we do not like high yield. we see troubles for the smaller firms and the current sees lowering with fundamentals and deflation's. we like to stay on the higher-quality part of the market. >> the head of credit research, i pleasure. coming up, what happens in vegas does not stay in vegas. samsung and sony look

you have lived europe. it is not the united states of europe, is it?s the point larry summers was making. until we have the united states of europe, all of this central-bank action is not going to work. we also spoke about the fed. whatever we do here in europe is going to be impacted by what the fed decides. on this, madame lagarde was saying, she still believes the fed will raise interest rates this year. >> the fed is probably going to raise rates this year. our expectations at the imf, it is more likely to happen in midyear than the end of 2015, contrary to what the markets expect in a certain way. the fact the fed is going to do that is good news in and of itself. >> i know you watch this closely, but the global point, if we look at the world, if the fed starts raising rates this year, does it mean all this good qe, if you call it that, -- that is the problem. >> in the parlor game, of when the fed is going to raise rates, is sort of bores me to death. with all of your travels, is this a europe and recession? is it a growth that is some booming, s

we are going to come to europe and more operations across europe. cnn could not independent confirm the authenticity of the video. unnerving set of events and the enormous amount of terror activity. john. >> isa soares for us in paris. of course the biggest operation we saw overnight was that raid in belgium in the town of verviers calling it a terror cell planning an imminent attack. the belgium media reporting that the target to have been belgium police. all of this happening as secretary of state john kerry is visiting paris. meeting with the french president and foreign minister and discussing the fight against extremism. the secretary was behind me here shortly ago for a memorial at "charlie hebdo." the secretary of state came here and laid a wreath with the french foreign minister moments ago. this all happening as we understand there were 12 new arrests or detentions overnight of people in france believed to be connected to the attacks here in the city one week ago. i'm joined by terror expert fabrice magnier. 12 people believed to be tied to

this is a europe wide problem, issue. and a europe that is 10-15% foreign board. first, second generation. foreign generations. these are issues that europe has time. >> the united states has been 10-15% foreign born. we have tensions over it. different? >> you know, i hear this all the time when i was at the department. the american model. it is a dream for many countries. you guys figured it out. what is the secret. what have you done. the answer is the same. it's not that we figured it out. but long ago the political leaders decided the direction that the country would go is multicultural, military ethnic and face. that's a tradition of separation of church and state. there are systems, a framework put in place that i think supports that kind of approach. these are issues that many european governments have yet to grapple with. there are certain governments - belgium, france among them that have not fully politicly absorbed what they are dealing with. i think, you know, with all due respect to the integration, not integration debate. french muslims, to some ext

it's breezy europe closer together -- it brings europe posted together.nging people together. >> that's evidence of the last 24 hours. you need to go back to the economic story and the lower- middle-income limits of society at the moment. you cannot exclude the 2, not mutually exclusive, and that will be one of the critical debates. the economy, how to integrate minorities and the french parties, part of the same story. this is part of the story. it is going to have a meaningful impact. >> caroline has arrived at the deck and shooting site -- has arrived at the second shooting site and she will join guy. equities are up. gains by tesco. if you want to continue the conversation, i am twitter. good luck for the rest of your day. ♪ >> a massive manhunt underway in paris. french authorities continue to search for the two main suspects in yesterday's shooting. prime minister manuel valls says preventing another attack is the main concern. another shooting this morning, two police officers said to have been shot in southern paris. the authorities are refusing t

the only one around europe. this is very strange because today the reaction is is the italian system is not solid and strong in the bank system. i think this is not correct but today, exactly today, we decided that in the board government and council some about popular banks. in italy there this is tradition of a system of popular banks. very closed to international market and from today we decided exactly that. the first time banks, very important some of our banks are forced to become traditional company and now they are open to international markets and international investors. this is a very radical change in the traditional system. so article 84 jobs market. fiscal system for the international brand if you are international brand you can apply the -- comply -- the compliance in relation with the physical system in italy. this is important because it's very complicated and confused. so with the compliance and relation we change the approach the change of popular banks and the idea of finally if you invest in

clearly, we continue to have security interests in europe and security threats to europe. the recent crisis in ukraine over the last year illustrates that. and so part of our force presence is to work with and reassure our nato allies who we have treaty obble gags to defend in europe. but also it's important to note that europe is a critical platform for u.s. military operations, particularly in the middle east and north africa where european facilities, bases, and capabilities that we station in europe are absolutely critical to military operations throughout the middle east and north africa and, in fact, the world as transit points to asia and elsewhere. so i think our military presence of course has come down in europe significantly since the end of the cold war over the last quarter century but maintaining a strong, robust force presence in europe is absolutely vital to our national security interests. >> do you think with the e.i.c. process it would be better to face the infiltration throughout europe? >> i'm not sure i understand the question. >> with the e.i.c. proc

or europe. >> we only have 10 seconds.ho is the one person you would like to have a nightcap with? a politician or a big ceo. >> i would love to have jack ma. politician, i would go to sleep. >> thank you so much. >> really nice. we have plenty of big hitters coming up throughout the day here in davos. for now, back to you. >> thank you very much. he is a big fan of alibaba. >> jack ma in davos. didn't soros say yesterday that he is the ceo that most ceos want to meet? >> yes. you can join in the conversation on twitter. plenty from that interview with maurice leavitt -- levy. we will take a short break and see you in a couple of minutes. ♪ >> time for today's company news. jamie dimon has received his first cash bonus in three years. he is getting a $7.4 million cash reward for 2014 on top of $11 million of stock rewards and a one point $5 million salary. his previous bonuses were limited to stock after he was criticized after the handling of a trading debacle in 2012. lloyd blankfein reportedly made $24 million last year

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these weapons could not be coming from western europe but from eastern europe to western europe. in eastern europe it is much easier to obtain the weapons even in places like poland and hungry hungary hungary. >> you were talking about how easy it is to travel to syria and yemen to train and come back with the same passport. talk to us about the role turkey plays. >> it is almost 90% of the time they have to go through turkey in order to get specifically to syria from the north. i think turkey has been lax in its security measures. it has allowed thousands of individuals to cross the borders. they mentioned earlier about the suspected wife of one of the paris attackers that she might have crossed turkey into syria. it didn't seem that turkish authorities really had a great zooming on her in order for them to figure out where did she end up after she left turkish borders. same for thousands of fighters who crossed by arriving in the south or going -- it is really important to figure out where the fighters are arriving to turkey from. are they going into spain or germany before the

is this what europe needs? >> well, europe needs a kick, and this is what is going to give them that kick. at the same time, we need global growth, the imf, the world bank have lowered growth. commodity prices lower, deflation is the real issue at the moment. what's going to happen, this is going to be a good start to get the ball rolling and from there, we need our economy to pick up, more consistent data. housing data today, what was lackluster, positive and negative side of things. very important to watch. tracy: john, what's your take on all this? i mean a lot of us don't continuing was worth it all the money we spent. here we're doing the same thing to europe. does europe need that or get under control? >> a combination of growth. europe has the fortunate able to take the good parts of it, strip out the bad parts of it and put it in a program that works for them. they need a kick that gets them going, to make sure they monitor it and manage it the right way. tracy: how my little brother learns how not to g

syria and iraq brought home to europe. those returning fighters attempting to carry out jihad on western soil european soil following training and experience on the ground in iraq and syria. >> absolutely. although of course coulibaly expressed allegiance to isis. it's all kind of a confusing mess. jim sciutto, thank you so much. let's bring in former secretary of homeland security under president george w. bush michael chertoff founder of the chertoff group, a global risk management advisory firm. secretary, thanks for being here. this was the big fear that's been talked about ever since isis was born is that these foreign fighters going over there from europe from the united states would come back and obviously there is still so much we don't know b according to belgian authorities, these individuals went to syria, came back and were plotting something. >> we have seen for months now a steady flow of westerners going to syria and iraq and fighting there, and then coming back and that's been a pattern literally over decad

to europe.k part of our biggest perk is really it's a lot harder to get in and out of america. we've done an incredible job since 9/11 of keeping us safe and keeping a lot of radicals out. and unfortunately for -- look at how many countries we're talking about in the last 24 hours that have been going after these terrorist cells. i mean it just shows you how much easier it is to get in and out of countries. even this one woman they're looking for in the paris attack. she was able to get out of that country and move around very quickly. a lot of it i think is an issue of demographics. i'm not near as hard on the u.k. as even it seemed like president obama was kind of saying hey, you guys need to kind of do a better job of assimilating. europe is a pretty cool place and there's a lot of people that love it. i think it's just demographics. >> i do want to get your take if i can, mark on this other story before we get to a break that is fascinating what we've seen play out at duke university. so thi

all through europe. so while we happen to be canadian, and we have canadian assets the impact that canada has on our portfolio is not all that substantial. >> great to chat with you. i've mentioned it before. we have to take a quick break but coming back we will be speaking to enda kenny. what's his sense of what mario draghi is expected to do and will it work is the crucial question. stay with us. we're back in a few moments time. >>> well we have been talking about it closing at a new all time high but traders watching the move in egyptian stocks closing at a 6.5 year high yesterday settling above a major technical barrier. the economy is benefitting from a drop in oil prices which eased the pressure on egypt's trade balance and inflation. now hadley gamble spoke to the president of egypt first on cnbc and asked him about his outlook for his nation. >> the optimism in egypt is a result of the failing of future stability and of a better tomorrow after a difficult period egypt went through during the pas

difference in europe so it is difficult to characterize all the different types of journalism in europe but we can say there is specific cultural behavior on different nations in europe. but usually it's more regulated, but you have some place, and charlie hebdo in france was like that. where you are really open to everything, when it's very provocative. sometimes they go really far you cannot appreciate but the fact that there have been attacks because the humor was seen as blasphemy as something really shocking. everywhere in europe, and i think even in other parts of the world, because these attacks is really different than the kind of terror we have seen in france in the past. the narrow nature of this attack is different. >> is there a reaction in french culture to being told don't britain this, don't make fun of these people, especially when it comes to religious topics because of a french tradition of a very secular ized public square. >> absolutely. and to understand this, the french-american comparison is very interesting when we go back to the founding of the two nations. the

we have a real economic problem going in europe that europe possibly to -- europe's leaders can catchll have to address. >> you have the u.s. economy where everything seems to be going ok. the lead up to the jobs report on friday. liz ann sonders how critical is the jobs report? >> i think a path of continued strong job growth will continue the path to tightening in the middle of the year. i think it is more about that they want to start the process now. they want to put bullets back in their gun for future use in the events that we have problems. they are not turning a problem -- blind eye to deflation. >> keep your powder try, as well. liz ann sonders think you so much. our thanks. bloomberg surveillance on radio continues. "in the loop" is up next. ♪ >> good morning. you are "in the loop." we begin with an update on yesterday's shooting in paris. two suspects are still on the run. an accomplice gave himself up to police last night. authorities have released photos of the two brothers suspected in the attack on the magazine office. they have been spotted in northern france. police w

how does europe confront that?elcoming migrants from syria and from iraq and as a consequence, the swedish democratic party which is swedish, but it's surely not democratic, like the french national front, vigorously anti-immigrant and is now working very hard with the position in parliament to change those policies. you see this with the uk independence party even though the british economy is doing better. across europe you have the growth of these parties that are fundamentally nativist. they're also very euro skeptic. i wouldn't say they're working together, they all focus on the national basis. but this is really making it much more difficult to govern europe. and it's not as if they're doing well economically they need more political cohesion between germany and the periphery to deal with their broader economic challenges. this year is the year it precisely will not happen. and the headlines we see coming out of france today make it much harder. >> ambassador is there any facet of u.s. policy that can help to

joing us for our very first program o 2015. 2014 w a tough year with plenty of challenges facing europe, and this year, there's no sign they are going away. on today's program, in serbia, fighting forussia over ukraine. in poland, fighting for a living wage. while in britain, fighting for more re-time -- free time. as tensions grow between europe and russia because of the ukraine conflict, european countries with close relations to moscow are finding their loyalties split, and that is particularly the case with serbia -- traditionally a close ally of russia, but the country is also keen to join the european union. some of those who have fought on russia's side are serbian nationalist. reporters got exclusive access to some to find out why. >> dreaming of a new and more powerful serbia. at 21, he is a bookseller by profession, but like many young serbians, he is out of work. he does many odd jobs to keep his head above water. >> i want a better life and for serbia to be a kingdom, a big country with dignity like before. i want europe to have a different attitude toward us. >> that is why

knows, you know once you're in that region in europe you can travel right across europe without any kind of check on who you are what you're doing and so on. and a nice thing, but i think that's going to possibly change, certainly if there's another incident of this kind. >> very good. well, we're out of time. any wrap-up comments very very briefly? >> oh, just to thank you all for coming here again and keep answering the survey each year. [laughter] >> yeah. go on each of the web sites our own cfr center for preventive action international crisis group and control risk and get more on this topic. thank you very much for coming. have a great day. [applause] [inaudible conversations] >> friends colleagues countrymen and especially the people of ohio's 8th congressional district, thank you for sending me here, and let's today welcome all of the new members and all of their families to what we all know to be a truly historic day. [applause] .. >> c-span2 providing live coverage of the u.s. senate floor proceedings and key public policy defense. and every weekend booktv now for 15 years

we want to change europe in order to have a nearly liberal -- a neo liberal europe and a social europeased on equality to >> georgios katrougalos all member states. -- based on equality to all member states. >> georgios katrougalos a member of the european parliament. in egypt two sons of ousted president hosni mubarak has been freed four years after they were arrested along with their father. they still face a retrial on corruption charges. their release comes as at least 15 people were killed sunday in antigovernment protests,4 years to the day since egypt's arab spring. more from cairo. >> concerned that the sons have left the prison. we had a false alarm last week and it appears they have been released. one day after the four-year anniversary of the attentive resolution in egypt -- the attempted revolution in egypt in 2011. they have been acquitted on two of the three charges leveled against them, embezzlement and corruption. there is an insider trading case outstanding and they will be back in court in march to face charges paid the symbolism is clear. the revolution has come -- 1

i mean is europe going to be ok? >> you know sue, what makes me feel about about europe and indeed global growth i think we come into this year worried about deflationary spiral. i think by summer we're going to see much better evidence of improved growth across the globe. and here's why, i think. i cannot think 2014 of a more aggressive policy stimulus year than we had last year. if you think about giving the world a massive drop in energy prices at the same time that government bond yields are collapsed everywhere about the globe, and then in europe you also weaken their currency and you do the same thing with the yen, that's a tremendous amount of stimulus a fiscal tax cut on energy like a quantitative easing policy among their bond yields and then weaker currency. we're redirecting a lot of stimulus to the eurozone and japan and even the emerging world. and i think we're going to see the globe bounce in terms of growth. might not be till the spring or summer but if we do i think that will bring a bid back to equi

. >>> also has europe been flooded with masses of hate-filled muslims?you listen to the airwaves this week -- >> prayer rugs in just about every hotel. >> -- the answer was yes. i'll introduce you to man who disagrees and says he has the numbers to prove it. >>> and, the economy. in 2015 who will be the winners and losers? what do we need to watch out for? i'll tell you. >>> then from paris to new york'syork finest should they focus on just terror murder and major crimes? we'll have a debate on the famous broken windows theory of policing with malcolm gladwell. >>> but first, here's my take. the paris terrorist attacks were barbaric but also startling leaving many to ask what could be done to prevent this kind of terrorism in the future. well one man has a clear answer. that attack you saw in paris, you'll see an attack in the united states senator john mccain told "the new york times." elaborating on how to stop this from happening, he explained to the "times" and to cnn that it would require a more aggressive american military strategy across the great

not in europe. what happens in europe after the first world war. essentially, yes the losing empires lose and they implode. right? russia ottomon empire hungary in imperial germany. obviously those guys didn't get the good part in the deal. but even if you sort of think in terms of the french and the british who won, yeah, essentially what happened in europe and africa well their empire basically vanished. this is the largest extent of the british empire is after 1919 not before. and even though woodrow wilson is trying to talk about self-determination and move beyond the era of ottomon empires, it's not happening immediately. in the east, not in the middle east certainly not in africa. but i would argue that it is very much happen inging in asia in a way that's quite shocking. you see this -- remember this quotation. just remember, again, the degree of interest in asia in the modern 19th century. the degree to which these great european empires are plugging on to the chinese economy. it's not a formal empire. but they're excited about the growth p

europeans against islamization of europe. yesterday people felt that it was sort of outrageous because one of the main representatives of the anti- muslim movement in germany, they tried to capitalize immediately on what happened. i think that many people understood the game. they really understood the game and they felt really outraged by this. in my opinion this is outrageous, to use this horrible massacre for political reasons to try instrumentalize it on the same evening, it goes a bit too far in my opinion. >> interestingly, they were a bit wiser there. they in fact issued their grief and condolences to the victims. i would like to come back later to the larger european issues. let us now take a look more closely at france. france does have the largest muslim population in europe and it has, as you mentioned seen islamist violence in the past. let's take a brief look at some of those incidents. >> it is not first time that france has faced severe terror attacks. in the 1990's a group struck repeatedly including at a jewi

and europe. however if you look forward it's going to be the place you have to be because the rest of the world is underweight europe. money will go there. >> josh brown? >> i like what weiss had to say and agree with him and add i think he's playing it the right way with addj, they actually wait that index etf looking for companies that are big exporters. european companies but not tied to the european consumer. that's number one, number two, the consensus trade into year end was don't bother with anything but the u.s. unfortunately, that is now not working. the s&p is directionless. the only strong stocks there are the utilities. if you look at eem, i don't want to rain on anyone's parade, 5% year to date, look at vgk, europe, up 1.5%. there are other polices to make money. mot all s&p all day long call it a day. >> bring in two guys who have different opinions as well, art hogan, chief market strategist with wonder lick securities and arguing the u.s. is the best place to be. jeremy schwartz a

and that's a recognition of that across europe. the last point i'll make and then i'll turn it over to david is with respect to the issue of intelligence gathering, signal intelligence encryptions, this is a challenge that we have been working on since i've been president. obviously was amplified when mr. snowden did what he did. it's gone off the pages -- the front pages of the news. but we haven't stopped working on it. and we've been in dialogue with companies and have systematically worked through ways in which we can meet legitimate privacy concerns but also meet the real concerns that david's identified and my fbi director, jim comey, has identified. social media and the internet is the primary way in which these terrorist organizations are communicating. that's no different than anybody else. but they're good at it and when we have the ability to track that in a way that is legal conforms with due process, rule of law and presents oversight, then that's the capability that we have to preserve. and the biggest damage that was

clearly we continue to have security interest in europe and security threats to europe. the recent crisis in ukraine over the last year illustrates that. but also, it's important to note that europe is a critical platform for u.s. military operations, particularly middle east and north africa. facilities, bases, and capabilities that we station in europe are absolutely critical to military operations throughout the middle east and north africa. and, in fact the world as transit points to asia and elsewhere. so i think our military presence, of course, has come down in europe significantly since the end of the cold war over the last quarter century. but maintaining a strong, robust forced presence in europe is absolutely vital to our national security interests. >> do you think with the eic process, the strategy would be better to face the infiltration of terrorists throughout europe? >> i'm not sure i understand the question. >> do you think we will expect better strategy to counter the infiltration of terrorists throughout europe? >> so there are two separate issues. th

around europe. in populations that have been one generaltions or two generations born in europe. what are they doing to attack that part of the story? >> reporter: well a poll in belgium today said 86% of the population of the poll of 1,100 people 86% of the population there believes anyone who joins the jihadist fight should be stripped of their nationality. there should be counter terrorism laws to combat this. the public mood in europe is very much with their government taking strong action against people who want to join the fight in the middle east or whatever or bring the fight back to their home countries or lone wolf attacks. you have in jihadist forums in the past 24 hours calls for attacks by lone wolves against gas stations. you know, people here feel that threat is real. they want their governments to take strong action against it. christine. >> nic, thank you so much for that in paris. >>> today a funeral will be held for the police officer gunned down by amedy coulibaly. the day before he murdered the four people in the supermarket. clarissa jean-phillippe will be l

there was no will to send any troops to europe. you may know because of the scholarship of my colleague that the chinese send bodies, laborers, 150,000 of them to the western front. to help with digging trenches and carrying stuff back and forth. you can go to any cemeteries in belgium and find chinese graves. you won't find any japanese graves there. the chinese are willing to do that because that is all they have to give. the japanese have a navy. they can give substantial help and it is because of that substantial help that the allies are willing to give them everything they want at the paris peace conference. the most important thing is the thing the ability to stay in vladovostok as well. >> to put a negative spin on this, from the perspective of the u.s., the reason japan is on the table because they are perceived as a threat. they are a world power, but a dangerous one. >> yes, there is a thin line between being strong and too strong. obviously, from the perspective of the americans in the asia pacific, the japanese are from

but europe is braces for more attacks.r cells ready to strike in france, germany, belgium and the netherlands. now new concerns about the planning and timing. >> and worries are how and when will they be activated. >> former jihadists say a sleeper cell is made up of a few operatives. they're acting on behalf, taking instructions from it, or are inspired by a group and acting on their own. as paris gunman coulibaly did. they're living in the city where they want to strike, selecting targets. >> they're there there. they have the ability to cross borders and live without being on the radar screen. >> they're highly skilled at blending in. >> they'll have regular jobs. you may see them at the strip joint drinking alcohol. >> anything to take off the claim or suspicion they may be extremist muslim terrorists. >> the 9/11 hijackers did that. reportedly drinking heavily in bars. some even going to strip clubs. this is a former jihadist who almost went to iraq to fight. he helped bust a terror cell in toron toronto. he says many

given the situation in europe now, europe is on edge. what specific should the u.s. have? >> i think we have to set in perspective last year the state department reported 17895 global fatalities to terror. 16 were americans. 33 people are killed every year or last year in lightning strikes in this country. like the ebola problem, we can't blow it out of proportion however you can't trivialize it. there's no question we are an object. not 9/11 clearly an indication of that. remember there's though the been an attack against the united states, directed by a foreign terrorist organization since 9/11. i think it's the risk of inspiration rather than direction that should concern the united states. here i think the issue is less isis and much more al qaeda in the arabian peninsula. in this respect, i think we have to be pretty sober. if you asked any of your fbi counter terrorism specialists or the agency counter terrorism specialists, they'd basically say the most imminent threat to the united states is not isis in terms of operational threat. it's aqap or affiliate of al qaed

. >>> across europe today, officials are on high alert. the question hangs where and when might terrorists strike next. here is where the investigation stands right now. five belgians citizens are charged with links to a terrorist organization three of them remain in jail two released under what is being called strict conditions. this goes back to the police raid and shootout on thursday in which two suspects were killed. officials in greece have arrested some suspects and they're still looking for potentially others. the belgian government has requested the extradition of one person arrested in greece. more on those in just a few moments in a live report. >>> one of the biggest fears in europe right now is what nobody can see, the so-called sleeper cells, quiet terror groups who suddenly become operational. western intelligent sources tell cnn this could be as many as 20 sleeper cells planning attacked. a pair of u.s. senators also tell cnn today that it is time for america's allies outside of europe to step up. >> but are our allies doin

europe. >> thank you very much. >>> massive terror attacks disrupted. we have new information on what the united states knew about the plot. >>> how easy it is to make the deadly explosives found in the terror raids. >>> we're learning more about the sleeper cells. as many as 20 of them. there could be 200 militants. efforts to develop a more sophisticated bomb to elude western screening. she inspires you. no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink al

and europe in about 15 years. it should be enough to take us close to parity. >> stephen, let's talk about the fomc meeting this week which is going to be an important risk event ahead. you think there's potential for a hawkish rather than a doveish surprise. do you expect them to push the timeline for the first interest rate they're just not going to say so when they meet and have the press conference? >> i don't think they're going to change very much. what changed the most since the last how dovish the pricing in money markets have come. we're nowhere close to 2% expected fed funds even well into 2018. long-term interest rates are below 108. i think the fed is looking at this. especially last week when u.s. rates went down with european rates. they're saying this isn't risk aversion. this isn't pessimism. that is their respondent to the european provision and monetary policy. this is stimulus they don't need right now. so basically from the fed viewpoint, i think that the markets have unwound the tampering they