we want to bring in phil mattingly for the latest on the white house response. can you tell us more about the white house response? >> the president has been briefed by his top counterterrorism official, lisa monaco. extensive experience in this from the f.b.i., justice department, and now the white house. from folks been told in law enforcement and intelligence sectors of the government that they are in contact with their counterparts in paris. they are not willing to speculate now on what is happening. obviously, eerily reminiscent of tot the u.s. government does the "charlie hebdo" attacks. there are a lot of briefings and connections back-and-forth try to figure out what could happen. as this starts to unfold, paris intelligence will start sharing information with the u.s. they will start working together much like they did with the charlie hebdo attacks to identify who may be involved in this. u.s. officials not willing to speculate about who is behind this or what is going on. but obviously, cognizant of the appearance this is a terrorist attack. one thing

ofrlet: phil mattingly bloomberg politics, stay with us.parist to go back to where caroline conan, a bloomberg producer is joining us. you are at the restaurant. can you tell me about the activity around you? hostagewhere the situation is taking place. i am quite close. i a few hundred feet away. i have seen in the past few , taking maybe a dozen injured people. the situation is very difficult to describe. the street is completely empty now. ofis a very, very busy area paris. cafÉs near me. they are both closed down. i saw some emergency care units running into the cafÉ. they were trying to get something from the cafÉ, to go outside, maybe to give something to the injured. unclear whether a rate is going to happen anytime soon. the sirens, police, different special forces coming out of the area from vehicles leaving the area, probably with injured inside. see there are firemen. there is approximately, i would big firemen vehicles. what is very ironic of the situation, if you remember what happened in january, we are just a few streets away

betty: i want to bring in phil mattingly on this. inners here, there is going to be a loser and i believe the loser is the fed because now they are on the hook to finance these dividends. phil: that is right. the compromise language was letting the banks off the hook but forcing the fed to pay for this. they decided to force the federal reserve to liquidate their surplus account to pay for the $17 billion and a lot more that was replaced in this bill. that is a problem. you have stanley fischer coming out saying, this is dangerous. you have fed spokespeople saying this sets a dangerous precedent. blog,rnanke taking to his talking about what a dangerous precedent this sets, calling it budgetary sleight of hand. this underscores what is happening on capitol hill. you have to find a funding mechanism for these past legislations. betty: for the banks themselves, this is a win for them, but what really is the bottom line to their bottom line? phil: the impact would have been real. this would have applied to the dividends given out to banks

that is phil mattingly in d.c.cham, the executive editor and vice president of random house, he will be on to discuss his new bio on george h.w. bush. that is on tonight at 5:00. coming up on "bloomberg markets" -- fiscal reports earnings after the close, what can we expect from the tech bellwether? ♪ david: let's see what tech stocks are making moves this afternoon. what do you have for us? >> we have a small cap name with a big cap profile. barry dillard's iac interactive corp. out making an unsolicited bid for angie's list, offering $8.75 in cash per share. that represents a 10% premium from yesterday's close. investors are cheering this possible merger between the consumer review site and iac. sharinget analysts are should not refuse. angie's list is under pressure from activist investors. the president said that the company's quote unquote running thin. when we look at a longer-term chart, we see his point. scherzer off nearly 70% from the july 2013 peak. david? let's take a look at shares of cisco. the high b

thank you, phil mattingly in washington.e have one of those republicans frustrated by this decision. let's get to austin, texas, where the republican congressman is joining me now. you heard the president who said all the arguments for the pipeline are gone. it would have created jobs in the u.s. and lowered oil prices. you heard the president say we have already seen both. so why do we need this pipeline? >> we need energy independence. we need i diversity of sources. not only with that pipeline have been used to bring oil from canada. they could have added oil produced in the united states. transferring oil by pipeline is the safest way to do it. i would much rather have an oil pipeline under my backyard then live near a highway or railroad where they are transporting oil. betty: it is not as if this oil will not be able to be transported. it will be transported in other ways. primarily railroad. >> the president seems to think by not approving this pipeline, that oil is not going to be used. that is sort of the undertone

phil mattingly covers the white house and he joins me now with more. oon, i guess you could say. some tension between the white house and stephen harper's administration is an understatement. a point of tension between the two countries. a seven-year process, one that many in the obama administration got way out of hand area it became much more of a figurehead then maybeth sides what it actually merited based on the economic and environmental impact it would have had. the president, and about five or 10 minutes, will officially reject the application from transcanada to build the keystone pipeline. delayanada attempted to their application a week ago. the reason expected was that they wanted to wait until 2017, maybe they would get a more friendly administration. the president, after his meeting he currently has with john kerry, will reject that application going forward. a seven-yeard to fight that has been brutal between business interests and environmentalists and it has caught the white house right in the middle, much to their chagrin. mark: justin

p phil mattingly explains.the hope for nuke the government may have set themselves up to get fleas. they have zeroed in an emergency reserve of millions of barrels of oil to finance new government spending. fact, the latest budget deal requires the department of energy to sell 58 million barrels from the strategic petroleum reserve. that is over eight years. >> congress is trying to make money and this will be the worst trait in the history of trades. phil: congressional price predictions is a problem. in order to raise $5 billion to pay for a visa the budget deal, oil needs to go from $45 today 2018, moren $70 by than $80 by 2019, and more than $95 by 2024. the ad and flow of the market is not the only potential problem. this is the least stealthy, least defensible way to sell oil into the market. if you do this for money, you will lose every time. phil: the specific sales timetable may leave the government at the mercy of oil traders who not only know what uncle sam is selling but when. >> every scheduled sal

betty: phil mattingly is also with us in washington. i know that you have been working the phones all weekend long with administration officials. anda step back for a moment tell me what does that mean to open up more intelligence sharing channels with other countries. what does that mean exactly? phil: the u.s. and the french have good intelligence relationships and on the law enforcement side. the fbi has an at tashard in paris. they are in regular consultations with their french colleagues. what you see here and what has been happening over the last couple of days is that it has stepped up quite a bit. you see the u.s. taking up a lot of what they have up with syria in european countries and the communications going back and forth and making sure they are shared on every level, trying to see if there is any kind of red flag that shuns up -- shows up anyway of how this came to be. the other element that is most crucial going forward on the low enforcement fund -- law enforcement side is that you see u.s. intelligence looking at people

david: phil mattingly joins me now. not terribly close here. what did paul ryan have to say?id it is a commonsense bill. require the top officials, including the fbi and director of intelligence, to personally certify any refugee coming in saying they are not a terrorism threat. given the fear in the wake of the paris attacks, that makes since 20 of constituents, members. that number should conceivably give the house republicans a veto-proof majority. the question becomes the senate. harry reid, a democrat, said that this bill will not get past the senate. a big win for paul ryan and republicans, who want to not only pause the refugee program, but want to put bureaucratic roadblocks in front of it. david: this has moved rather quickly. already we have a bill that has been voted upon. to whicht the degree this was discussed and debated on the hill. >> a limited amount. you can see that when congress wants to act fast, they can. is house of representatives not a place where each individual member can hold things up for days. the house response to specific ,ncidents and a quick

phil mattingly is at the white house. your reaction to the president's remarks. the president trying to take on the criticisms in advance and try to undercut what proponents of this project had said would be its greatest benefits, whether it was gas prices, jobs created, or energy security. the president does not believe that this project would have aded the united states in large way in any of those issues. thatf the key points was this would undercut the obama administration effort in the global leadership related to climate change, even if the impact would have been negligible. the willingness to accept it would have undercut what the obama administration is trying to do with china, india, all of their global emitters as they other climate talks. mark: what does this mean for the administration going forward now that you have the official rejection of this application? it looks like it is going to be an issue for the next congress come january. administration, is to put this behind them, to move forward, to focus on the parents -- paris climate talks. they hav

tom: phil mattingly, thank you for the briefing from washington., arguably our most important just of the morning, james stavridis, the fletcher school. the former ally commander. jim stavridis on a needed and possible response. with francine lacqua in london, i am tom keene in new york. this is "bloomberg surveillance." ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. francine: welcome back. you are looking at live pictures at a bar, a cafe in eastern paris, in the area that was struck on friday the you can see hundreds of people paying respect to the dead with hundreds of flowers. let's get the bloomberg first word news with vonni

thank you very phil mattingly in washington.ll be keeping an ion that -- keeping an eye on that meeting at the white house. coming up, turning to tech. who is coming out on top? ♪ welcome back to bloomberg markets. wall street versus silicon valley is an ongoing battle in the minds of recent grads. more and more of them are turning to tech. students who consider themselves ethical are avoiding careers in finance because they considered beneath their standards. cory johnson weighs in. what do you make of this trend? folks put into or three years in business school, graduate, now the are to the west instead of the east coast. toey: we see that people go the hot industry. tech is hot. what is interesting is that there is a vibe, as people like you and i would say, in silicon valley, about the kinds of things businesses are doing there. it's a little ridiculous, but it's sort of the high fluting vibe of i'm not just writing software, i am changing the world. it's a purpose driven company. indeed, there are a lot of companies centere

government is responding to the attacks is phil mattingly of bloomberg politics.bout any shifts we may or may not of heard of president obama on what is the on the table for s yria? clear that aaking sickening and terror setback occurred in paris, but there'll will be no major shift to the u.s. strategy. there are a couple of different elements on what the u.s. is doing in response and appeared there is a law enforcement element. the fbi sent a team over to help with the investigation. there is an intelligence collection aspect of it. the nsa and the cia are working with the french quarter -- counter parts. the war trying to end in syria there. military is where the biggest change has been so far. according to officials i've been speaking to, they gave their french -- the french their target list. that is what we saw last night lost theire and strikes. one thing that the president pointed to is that there's a lot of criticism coming his way about that strategy as it currently sounds. this is what you think of that. take a listen. obama: folks can pop often have op

david: bloomberg's phil mattingly has been talking to administration officials about this. , i want to ask you how this process works. how does the refugee go from syria here to the u.s.? phil: if you want the back story behind the frustration you heard from the president, it's because of the process that is actually in place. there are not thousands of refugees walking into the country. there is a very real vetting process with very real u.s. intelligence and law enforcement agencies involved. it starts like this. the u.n. refugee agency first vets potential refugees. then they're sent over to the united states. once that occurs, it involves a person to person interview with the homeland security agent. then a biometric screening process, retina scans or fingerprints, the results are cross cheshed with databases. you have biographic vetting that goes on as well where the counselor services and the f.b.i. and d.o.d. are involved as william. only after passing through all of those hoops do you start the process of resettlement. david a lot of what you're hearing with the pres

betty: all right, thank you phil mattingly with more on that bloomberg poll on the syrian refugees.till in play, according to the fed minutes, and the market responded, the s&p at its highest level at a week, the dollar strengthening after the fed said we're pretty much near the highs of the session as we get towards the close, and i want to bring in our bloomberg editor joe weisenthal. what did you think, joe? joe: i think janet yellen should be really happy right now, as they are clearly setting the stage for a december hike. it is not a done deal, but they are priming the market. stocks are doing fine. the dollar, the tw-year yield, anything sensitive to a rate , so they are not only getting ready for the rate hike, but they are also really in sync. betty: and using the world -- word possibility. joe: it is important to note that we have gotten a lot of data since that report, including that blockbuster jobs report, and clearly during that time, they made it pretty clear when they make that statement and all of the subsequent speeches that december was a real possibility, so i do

phil mattingly explains.h,in the hunt for new congress may have set up the government to get fleas. they have zeroed in on emergency reserve of millions of barrels of oil to help finance new government spending. in fact, the latest budget deal requires the department of energy to sell 58 million barrels from the strategic petroleum reserve. that is over eight years. >> congress is tryi to make money and this will be the worst trade in the history of trades. phil: the worst problem is congressional price predictions for it to raise more than $5 billion, oil needs to go from $45 today to more than $70 by 2018, more than $80 by 2019, more than $95 by 2024. market is flow of the not the only potential problem. this is the least defensible way to sell oil into the market. if you do this for money, you will lose every time. phil: the specific timetable may leave government at the mercy of taxable oil traders. every scheduled sale is a sitting duck and traders have to get on the other side of it. sell into the sale

you saw the unemployment rate dropped to 5% and phil mattingly broke the news at the labor department00 is a very big topline number, the has number of jobs gain since december of 2014. 5% unemployment rate is at which is close to the fed target of the one. you go to wage growth and this is one of the biggest underlying stories. at 2.5% year-over-year, that is the largest gain since july of 2009. barb in then the side of economists over the last year or two. there has been no movement in wage growth. 2.5% is higher than the 2.3% estimated. industries,k at professional and business services is one of the big gainers. the industry has been averaging over 25,000 per month and retail, 19,000. positive news across the board in this report. it,: as alan krueger put it's almost the flip side of last month's job report. millerake you to matt here with us in midtown manhattan to look at the market reaction. between stocks and fixed income and currencies, it's pretty dramatic. matt: absolutely, the two-year is at a five-year high. i pulled up a chart over the last five years. take a look and yo

phil mattingly has been on the phone with administration officials.t of misconception out there. what exactly does a syrian refugee have to go through in order to get the u.s.? >> there's 10,000 walking into the country, 100,000 that could be here over the next six months. this is a program that has been in place since the 1970's. it was expanded in a big way in 2007 to facilitate iraqi refugees. there is a multi step vetting process. it starts with united nations refugee agency that identifies the most honorable syrian syrians -- vulnerable refugees. after those are referred for potential resettlement, as many as 90 was agencies get involved. it starts with an in person interview. then biometric screening. retina scans, fingerprints. -- as many as nine u.s. agencies get involved. cross check with the department of defense database and homeland security database. then the process of resettlement starts. it is not like a vetting process does not exist. there legitimate concerns about tracking these individuals. nine different agencies involved in this

phil mattingly has been on the phone with administration officials on this. clear picture of what the process is for syrian refugee to settle in the united states. the process exists and it is very extensive and from a refugee program really started in the 1970's, used in earnest with vietnamese refugees in the vietnam war ended as we did in 2007 with the iraq war and iraqi refugees or it the actual process that goes into a syrian refugee trying to resettle in the united states, worst, the agency sets and uses its security process before even referring it to the states. once referred, then they started screening process. first is biometric screening. fingerprints, retina scans. this is run primarily by the department of homeland security as well as the ei. and in person interview with the , the department of homeland security, and then you have a biographic review. crosschecked are between multiple agencies including the national counterterrorism center, fbi, department of defense, and department of homeland carry. at that point, the process could start reset

for more on that debate, phil mattingly joins me from washington with more.ernoon, all are on democrats, not republicans. how many democrats will vote with republicans on this hill related to syrian refugees? the president has issued a v2 andat -- a veto threat republicans think they can get a vetoproof majority and this is what paul ryan had to say. >> it battles me, i don't for the life of me understand why his veto threat came as it did especially given the fact that his own law enforcement top officials came to congress and testified that there are gaps in this refugee program. pelosi is urging her members to stick with president obama and vote against the bill. there are democrats who have already committed to vote with republicans and several more on the fence. one thing i have heard from how sources is the administration sent a number of officials to give a presentation related to this program and sent some democrats the opposite way. they are struggling to keep democrats to stay on their side. theseyou can get more on and other breaking stories 24 hou

got phil mattingly joining us from the d.c. bureau. it's been interesting watching the positioning.at a be assumed candidate with experience in foreign policy whether it's hillary clinton because she was secretary of state or marco rubio on the foreign relations committee would rise to the top and things would get more serious, some of the trivial issues that have dominated this race would be put to the side. it's too soon to tell whether that will happen. the interesting element is immigration. we've had donald trump and ben carson and ted cruz talking about this issue of syrian refugees coming to the united states and making it a huge issue that might actually cloud the idea that the traditional, historically competen candidates on foreign policy will rise. the fallout will be interesting to watch over the next couple of weeks. if anything has been true over the last 50 months, assuming this race -- in this race is a bad idea. david: thank you very much. we are now joined by special guest, and why pd chief of counterterrorism, james water. explain to us exactly what you do and how