taliban and in afghanistan. he had worked against the soviets during the soviet occupation. their occupation was 79 internet and then there was a period of civil war for a while and then when the taliban and took over he had to go to the mountains. the taliban allied themselves with al qaeda they had military assistance to the taliban and the taliban allowed them to plan and exit and recruit and train on this territory. : >> pretending to be journalists and wanting to interview, but in fact we are working for al qaeda. and they blew themselves up. this was a favor that of al qaeda was doing for the television and it was an exchange for what they must have known that al qaeda leadership was coming which was an attack on the united states. by doing this favor they had hoped that in the coming crisis the taliban and it was a huge favor to get rid of the opposition that existed. in fact, the taliban taliban did not turn over al qaeda and osama bin laden after 9/11 when president bush gave him the option of either turnover al qaeda or the united states will attack the taliban. >> c-span: you referred earlier in our conversation that you are threatened and somebody tried to kill you? >> guest: quite a few times and during my career with iraq and

taliban releasessed a statement. this is completely true, calling donald trump a nonserious candidate who says anything that comes to his tongue. this is the taliban. the taliban. (applause). >> trevor: the taliban sees donald trump, and even they think he is crazy. they're like we may be serious, but donald-- terrorists but donald trump is going to end the world. have you not seen this? what are you thinking? you put him in charge, what are we going to have to below up, nothing, there is nothing for us. truthfully, the taliban wasn't really happy about anything that happened at the debates. >> in the end the taliban was disappointed because the canadian-- candidates did not discuss plans for their country. >> trevor: you see? americans and the taliban aren't so different after all. both complaining after the debates. i wonder if the taliban even planned to watch the debate in the firs place or maybe it's the same thing that happens in america. maybe they turn on the tv to watch something else that got preemed like jalalabad or something and they were like oh, damn, it's on every channel. we're just going to watch. they are like it's probably a great show. eve

taliban taliban and al-qaeda. and how we can get much better when picking up the signs of radical. indockations. -- ind is la nm . (announcer vo) that's right, keep rockin'. siriusxm's free listening event might be over, but now you can turn us back on with packages starting at $5.99 a month, plus fees. just call 855-874-7743 to keep hearing all the things that make you love taking the long way home. ♪ so call 855-874-7743 or visit siriusxm.com/getsxm to turn us back on. and up. but with your determination, and a domain, website and personal support from godaddy, you'll join millions who have gone from idea to success. start your success with a $2.99 dot com domain for the first year at godaddy dot com. ♪ ♪ don't just eat. mangia! bertolli >> there is brand news polls at this hour. and how close the race is beco mammoth university survey. and donald trump trailing by five points at 41 percent. and it shrinks from a month ago. and johnson has six percent and jill stein one percent. and breaking news out of california. there two pilots ejected a spy plane and two pilots have ejected. we'll get you more information as it comes in the newsroom. and new details in new york and new jersey. friends say rahami traveled to afghanistan and he came back and there was changes in his personality. rahami's father called the fbi several years ago after a dispute with the family. he raised questions of how officials can better monitor the signs. we'll talk to the general retired from special force and spent time in afghanistan and recently in afghanistan. mitch, it is great to have you you back on the program. >> hi, jenna. >> tell us about the travel and what stands out to you. someone who travelled to not only afghanistan, but he went to pakistan as well. what do we need to know about that? >> people need to know. he travelled to two most important places in the world if you want to meet members of the talibano pakistan their safe haven and afghanistan and the location of omar's white house. and he went to facilitate contact with the taliban. concerning he spent a year there in 2014. >> why did that stand out to you? >> what that tells me, he had 11 months on the ground in pakistan. and he was there to help his wife get a vis a. a year on the ground allowed him plenty of time to be radicalized if he was not. have his training refined and learn bomb making and counter surveillance and surveillance. and the entire time using his family cover story as deniability to talk to custom's officials. it is it a perfect cover story learning to be a terrorist. >> we'll see if we can pull the map back up. i want it show our viewers from kandahar. there is a board but not like what we are figure with. can they go to kandaharand travel to pakistan easily? >> it is easy. and you may recall we discovered al-qaeda training camps close to the border of pakistan. they are ungoverned and controlled border and h

taliban, not taliban.e like we've got somebody who's disaffected in several areas and decided for some reason it's time to move. >> i think investigators right now the picture emerging is somebody who might have a mix of ideologies that might have in1350ii inspired him. we sometimes immediately go to isis. so far nothing has emerged of the hallmarks of isis. usually these guys leave behind something. they're very proud of the isis claim and isis is usually very quick, especially if they've gotten something on social media saying we're doing this in the name of. we haven't seen any of those things. the more time that passes tells us that perhaps it's a little bit more complicated. >> yeah. they claimed a link to the -- >> minnesota. >> -- minnesota attack. they stopped that. deafening silence. at this point pretty unlikely that there was any isis link, any sort of communication back and forth. >> gentlemen, thanks so much for sharing all of your reporting with us. >>> all right. president obama is set to ma

taliban in pakistan, we need to be asking about the political implications of that. kill thisout, if we taliban commander, whether it is on the afghan side or the pakistani side, what are the political repercussions within the movement #is it going to give rise to a more vicious element within the taliban? i wrote a piece in new york times after the killing of onsouf raising the questions. it impinges on and overlaps everything. political. our thinking about strategy in afghanistan and afghan thinking needs to be about political governance. answer to your question on the economy. the economy is in difficult state. is vastly inadequate for a country of the level of underdevelopment problems and poverty that afghanistan faces. that other countries would love to have this. it is not sufficient for afghanistan. the massive economic shrinkage and contraction is simply no way out of it. sadly, that is one of the theons why recruitment for thecontinues to be high, vast retention losses. news, namely good that the finance ministry managed to raise the levels of tax revenues, very important economically, but also politically. it sent some signal that is not complete impunity, not everything can be something stolen out of the country and hopefully the trend will continue. there is no easy way to

taliban. it's an open secret that the taliban are centered there, their leadership are there, they're directing some of the afghan insurgency from this town, which is pretty near the border between afghanistan and pakistan. another data point is just a few months ago in may, the leader of the taliban was killed in a u.s. drone strike. and the taliban suggesting that this was not going to go unanswered. here's a guy who travelled not only into quetta, but parts of afghanistan where the taliban had a big presence. a lot of opportunities to connect with terrorist groups over there. we don't know whether he did. the boston bombers went back to the caucuses, no evidence they connected with terrorist groups. we just -- they're going to have to find out. >> one thing to say here too, there were other factors here, his family had this lawsuit against their towns related to -- in 2011, related to their restaurant. it was open 24 hours, there are complaints in the neighborhood in this lawsuit, the family complained about mistreatment of muslims, you have this other path here, and i just bring that up, because often times with terror suspects, you have multiple motivations, right? he had previous arrests, he had arrests for assault, it's not always a clear picture that here is someone who fo

taliban resurgence be problematic in the past year or so. the taliban in the north have become a challenge. we had the brief moment, near humiliation for the afghan security forces, but ultimately they were able to take back without significant human crisis and the disaster of the friendly fire on the hospital still, for which we all still regret the casualties. we have seen a resurgence in afghan taliban security. a loss of the number of districts that has forced the american commander in conjunction with the leadership to put additional american forces on the ground to at least forces on the ground to at least hold the district capital. i do believe that we will see that negative trend reversed, largely because the leadership core, the area of hellman, just west of kandahar, has been replaced, and i think we will see improvement in the relatively near future. the previous commander was largely incompetent. the challenge we face going forward is stabilizing of our numbers to continue to affect the kinds of relationships that we need to have with the afghans -- not just a training world but advisory role to include providing additional air support to the afghan national security forces in ways that we were unable to do before. that will be of a lot of assistance to secure the environment, maintain the population centers and not give up the district. at this point a number of districts

taliban in pakistan, that he crossed the border by land, that he went to kandahar in afghanistan. the former effectively capital of the taliban before the u.s. kind of moved in here and knocked the taliban out in 2001. we've reached out to the taliban, carol. we've spoken with a spokesman by telephone, and he has denied any links whatsoever to rahami or to the bombings in new jersey and in new york on saturday. and that's worth noting because when the taliban carries out an operation here in kabul, in the capital here, it is very quick to claim responsibility for those attacks in what is effectively the longest war in u.s. history, a 15-year war between the u.s. and afghan government and the taliban on the ground here. it's important to note that u.s. investigators are going to be looking at other issues. it's not just the taliban. al qaeda was active here and isis is one of the newest players on the scene here, and there are other militant groups as well. you better bet that u.s. investigators are reaching out to both afghan and pakistani officials to hear what they can say about his travels between these two governments -- these two countries. we've reached out to the afghan governmen

taliban spokesman denying any links whatsoever to this man and to the attempted bombings. the bombings that took place in new york and new jersey on saturday, that is of note because the taliban has been fighting the u.s. military on the ground here in afghanistan for some 15 years. however there are other militant jihadi groups is that are operating between afghanistan and pakistan in some of the areas where a hanney is believe to have visited. it is possible he had links with those groups. those are things u.s. investigators are going to be looking into. that they're probably asking the afghanistan and pakistani government questions about. brooke? >> how about that? you reached out the the taliban and the taliban says "we don't know who this person is." ivan watson, thank you far in kabul. david yanberry is joining me. he's a retired police officer who lived next door to the suspect and his family for several years in new jersey. thank you so much david for joining me. . you're welcome. >> when's the last time you saw him. >> about 2011. >> what was he like, behaviorally? >> very quiet boy. it's a shock he did this. i can't imagine what happened. >> when you would have run ins with him, have conversations with him, would he engage you? was he more reclusive? give me more detail. >> we just talked about his family a little bit, his brothers. he once asked about going into law enforcement. he wanted to go to college. he wasn't really interested in his father's business, he wanted another career. very pleasant boy. i can't believe it. >> i was just going to say he was studying criminal justice so that would make sense if he wanted to go into law enforcement though it doesn't make

taliban into the peace process? >> well, with regard to the peace process, i think it's safe to say that pakistan made serious efforts to bring, to try to bring the taliban to the table. we know that through a variety of means but at the end of the day, the taliban did not take up the offer to come to the table. and i think that's, i think that's unfortunate, and regr regrettab regrettable. we continue to urge pakistan to take robust action against the hakani and against the taliban, and i think there are indications that they have taken some actions, but i don't think it would be fair to say that those actions have been definitive. >> well, obviously this conversation's been going on for a long time, and it just looks like when we put a major spotlight on it, we get some help and then at times for either their strategic reasons or political reasons pakistan seems to go in the wrong direction. so it's a matter that not only has a direct impact on pakistan and truly it does, but also of course their neighbors. let me ask one additional question on human rights. there are many human rights activists in afghanistan that think that the united states has not been strong enough with the human rights monitoring in afghanistan. i would just make that ob

taliban stronghold, one of the primary focuses of the investigation right now is did he link up with an overseas terrorist group, could it have been al qaeda or the pakistani taliban, the pakistani taliban being the group that directed the times square bomber to launch a car bomb attack here in new york city in 2010. >> you know, juliette, i keep thinking about, you know, when you and i were covering the bombings in boston, the marathon, there was so much discussion of, did those brothers or did one of the brothers, you know, have connections overseas. he had spent time overseas, i think it was in the caucus regions, and as far as i remember, if memory serves me correct, it was never proven that he had any formal training in bomb-making, in building a pressure cooker bomb. >> that's exactly right. and i think -- i think we just don't know yet. it seems to me, at least in terms of biography, that the radicalization process was relatively recent. people had noticed a change in his physique and a growing anger. we don't know exactly what that was related to. but other similarities with what we saw in boston. one is, as bob was alluding to, sophisticated planning, no exit strategy. i mean,

taliban are based in quetta. the united states, the leader of the taliban in may, the taliban saying that wouldn't go unanswered. is is somebody that has traveled in these areas. no known connection at this point to any overseas terrorist group. this reminds me a lot of the case of faisal shahzad, times square attempted bomber in may 2010 who tried to blow up his car a few blocks from here on that date. somebody who wasn't on the radar screen of law enforcement agencies and also had that extensive travel pattern in pakistan. he was directed to launch his attack by the pakistani taliban. so it's possible that there is some kind of overseas terrorism connection, because of that trouble pattern, if there is one, we're looking more at taliban groups, al qaeda, probably than isis, because they have a much less great presence over there. >> a lot still to learn. paul cruickshank, thank you. philip mudd as well. peter bergen. >>> coming up, i'm going to speak to a man a lot of people are calling a hero, the businessowner who called police. he saw the suspect sleeping in the doorway of his bar. recognized him from watchi

taliban? >> no, sir. in fact, the taliban and daesh have been fighting each other in the province. they have not to the best our or knowledge joined forces. >> do they have state goal, daesh. >> i think the difference between the taliban and daesh is that daesh has in fact a global agenda, the advancement of the caliphate, and the taliban traditionally has focus its its objectives purely on afghanistan. and has not had extra territorial ambitions. i do think it's important to note that daesh in afghanistan is largely and the result of ttp, pakistani taliban people who are pushed out of north waziristan with the successful operations pakistanys have conducted in north would sir stab. this went to the other side of the bore and many of them have sworn allegiance to daesh, and that is in many ways the basis of the organization in afghanistan. >> thank you for your answer. thank you both for your service to country. >> is it still the stated goal of thes a of ghani him to solve the internal differences that exist there through an inclusion, negotiated inclusion of tale taliban in at the government? >> senator, west. we do believe that ultimately the peace of afghanistan will require a political settlement, and i think the

taliban territory. this is like taliban central. those are two places he was going. they are the hottest taliban spots in the world.ee how close they are. can't we cross check information when people come back from hot spots like this? >> that is why you visit country of interest, when you come back you will often get interviewed by fbi. they will ask you questions. where did you go? who did you see? what types of activities you participate in? if you go multiple times, they ask you more questions. travel in of itself does not mean you've been radicalized. david: sara, we have 10 seconds. i saw great interview liz did with mr. johnson candidate for candidate. he said we have this big bureaucracy. sometimes bigger is not better. has that made our better or worse, our intel gathering? >> i don't think it made it worse. i think we have to look at information sharing. there is real assessment what is going on here and look at areas of the world where we reduced our resources and put the resources back because we need them. david: guys, thank you very much, sara, michael, appreciate it. melissa. melissa: stripping away

taliban. whether in afghanistan or the taliban in pakistan and they are pr separate organizations. a multiple set of groups inspiring him and he was follows. an anti-u.s. desire to kill people. >> and he spoke about the fort hood terror massacre, about the boston marathon terror massacre. an element of copyaccount as well as -- copycat. >>> stay with us. two communities here in the united states in turmoil after police shootings killing black men. how can relations between police and african-americans be improved? there you see alma adams standing by live. >>> plus live pictures of a donald trump rally set to get underway in ohio. will he have something to say about these recent shootings? we're standing by. >>> also right now, the u.s. attorney in new york is speaking out about the bombings in new jersey and new york. i want to listen in. >> -- keeping new york safe. i want to note the city also has a new fbi assistant director in charge in the form of bill sweeney who only has a few weeks in this current position working nonstop with the nypd and joint terrorism force to invest g

pakistan, queta is the headquarters of the taliban, afghanistan taliban has a sanctuary and also in western pakistan. this is where the leadership of the taliban is and he spends almost a year there, i think actually over a year there. that alone should flag any investigators in the intelligence business that something may be going on with this guy. maria: right, he goes to pakistan, afghanistan and the father tells authorities, i think, my son is a terrorist. what do -- why do you think nothing was done? >> i don't have any idea. the fact he was not interviewed is not defensible and actually a little bit more detail then as a result of it if the father is attributing his trips to afghanistan and pakistan as the cause of this disruption and radicalization in his life, then they should have examined in detail who was he visiting on the trips and once you saw queta on the list, believe me, that's a red flag. maria: that is incredible. all of the talk and zeroing in on mess steps on immigration. president obama is at new york and un and gave speech and calls for global cooperation on syria in final u.s. speech and i want to get your reaction on w

-- are the taliban -- are they taliban? are they something new, or is it the same old story? storyd still stands. there has been a lot of firing back and forth. india said they attacked these camps. there has been a lot of violence been ath and there has curfew on the indian side. what is the pressure in financial mobile -- mumbai? there is definitely among the -- resentment and anger after these attacks. up inections are coming some very populated regions in india, next year, and some people see the announcement as a way of showing what pakistan is accusing him of, he wants to appease people. much.ne: thank you so indian shares, currencies and bonds, following after they say they did attacked terrorist targets in pakistan. ceos from the auto sector me today at the paris motor show. one year ago, volkswagens diesel emissions cheating scandal rocked the world. we go now over to caroline. we stand here in front of new suvs, a lecture vehicles. will everything be electric? electric car sales have doubled compared to last year, so we see a trend coming up and we have announced we

taliban made considerable gains in the absence of coalition forces,s, hundreds of u.s. troops have returned. now with new leaders in the afghan corps, the coalition is teaching them new tactics to fight a resurgent taliban. within the past year, the talibanefly captured kunduzn city in the north this summer, besieged lashkar gah in the south and this week threatenedat tirin kot in central afghanistan. >> when you look at the population and district control the afghans control about 68% percent of the population and about 62% of the districts.62 the taliban control about 10% of the population and 10% of the districts. 25% of the country is contested. it's in play. >> reporter: and the fight isn't just on the battlefields, the taliban strikes wherever it canr just behind me is the ministry of defense, just a few minutes ago there were twoe explosions, the police and security forces you can see out in full force. they're moving the people back.e this is a very busy market area and this is one of the busiest parts of the day as businesses let out, as offices let out, so the streets were very, very full. the police say some suspiciouse men went over there, so they're moving everybody as far back asy they can. this is the kind of security prob

taliban could replenish themselves and repurpose their capabilities. i believe over time with the right kind of nato presence to deal with the taliban and in the country particularly in the east that the afghans could handle the security situation and deal with the safe havens in pakistan. i believe that the existential threat to afghanistan is not the taliban or pakistan. it is corruption. willing tons are shed their self-interest until we are able to deal with the institutionsure of both at the national level and very importantly which makes until we areicult able to deal with the pernicious nature of corruption which is corrosive of democracy and an impediment to building real capabilities within the institutions of a government. afghanistan is going to be stuck where it is today. poverty scale of poorest country in the world. this third or fourth at point. in terms of corruption it ranks slightly above somalia and north korea. to see realer progress in afghanistan and has to be at the point where the ted fromions can be wres the criminal capture of organized crime and the willingness of afghans to do right for each other and their country. i spent a lot of time with our intelligence services. trying to pinpoint the exact origins of funding for the taliban is very difficult. large amounts of money come out of the gulf. i don't believe it

taliban resurgence be problematic in the last year or so. the taliban in the north have become a challenge. we had that brief moment near humiliation for the national security forces, but ultimately they were able to take it back but not insignificant human price. we had the disaster of the friendly fire on the hospital there for which we all still are -- regret those casualties. we have also seen a resurgence in afghan talibanctivity in the helmund province as well. a loss of a number of the districts which has forced both the american commander in conjunction with the afghan leadership to put additional american forces on the ground in the helmund province to at least hold the district capital. i do believe we'll see that negative trend reversed. largely because, in fact, the leadership in the 215th corps, the corps that sits upon that particular area, helmund, just west of kandahar, had been replaced and i think we're going to see some improvement in relatively near future. the previous commander was largely incompetent. i think the challenge we face going ahead will be the stabilizing of our numbers for the long period of time to continue to affect the kind of relationship we need to have with the afghans not just in a training role but in an advisory role to include now providing additional air support to the afghan national security forces, in particular the afghan army, in ways we were unable to do be

taliban, who are in that town in a major way. and just recently the united states killed the leader of the taliban in a drone strike in may. and the talibanat that would not go unanswered. so they'll be looking, as we have heard, at these international connections, the possibility that he got training overseas. and the fact that hmtd was used in the device takes it up a few notches in terms of sophistication on what we saw in the boston bombings just a few years ago. this was a more sophisticated, potentially more deadly device according to the information we're getting in, wolf. very, very disturbing details. >> very disturbing indeed. phil mudd. the fact that he visited afghanistan, that perhaps is not going to raise a lot of red flags. he was born there. his family was from afghanistan. but the fact that he went to pakistan, spent almost a year in pakistan, including in quetta, this sort of hot-bed of taliban activity. spent almost a year there. when he came back and his passport showed he had been gone for a long time, should it have raised flags? >> i don't think so. from an investigative perspective often we start the case and say s

investigators will look at groups like the pakistan taliban like al qaeda. the pakistani talibanected the times square attack attempted attack in may of 2010. this may have -- this may have no isis connection whatsoever. but yet we've yet to hear any claim from any overseas group. and investigators don't know if this has a foreign connection yet. >> faisal shaz add was a big wake-up call. he had a legitimate life here and to the surprise of everybody in that man's life, including his own family, he was just waiting to be activated all along. tom fuentes that tax us to the concern about how does it grow out from this man, there was reporting early on from authorities when they stopped that car on the verrazano, there's a group, there may have been a cell in elizabeth, new jersey. how do they look at that type of investigation? >> well in the first place, chris, they'll be looking at whatever communication devices he had. so his cell -- or has, still has, cell phones that he may have used. if they believe that the dumpster bomb on 23rd street, the first bomb exploded in new york, w

taliban running around? >> over 450 murders in taliban just this year. coalition forces in afghanistan -- >> what about the number of afghans that have been killed? >> i'm talking about americans. >> just trying to put things in perspective. abby, we did find out that donald trump will address this african-american congregation. i talked to the bishop of that church yesterday and at that time he said donald trump would not be addressing the congregation. he would be sitting down for an interview with the bishop only. donald trump has changed things. right? why do you think that is? >> well, i think that there is -- i think a desire among the public to see donald trump engage with voters, with african-americans, with minority voters, in a sort of more straightforward way, in an environment that's not entirely scripted. i think he kind of needs to do that to sort of prove how genuine he is about this issue. he didn't get to this point in exactly the most ideal way. there were a lot of stumbles along the way but this is an opportunity for him to have the ki

taliban there. was he perhaps trained by the taliban there.ormer high school sweetheart learning he was a dead beat father, didn't like america and didn't like gays either. learning more about his family and their views about america. check out his brother's facebook post. here's a picture from the facebook page, i bring the man who desired death azar dentally as you desire life from khalid bin walid. they never connected them. >> we reported a domestic incident some time ago. that was the allegations were recanted. i don't have any other information. >> lots of focus on this place first american fried chicken. make of that name what you will. it is owned by rahami's father. he apparently worked there and lived above there. they raided that place and had bomb dogs. so many unanswered questions. even though the fbic says they are not looking for any one else, big questions here, did he have any help planting these devices, did he have any help making these devices? what inspired him online? was he communicating with terrorist groups about these

taliban could replenish themselves and repurpose their capabilities, but i believe that over time, with the right kind of nato presence to deal with the taliban in the country, particularly in the east with the defense we are putting in place, that in fact, the afghans could handle the security situation and deal with the save havens in pakistan. but i then said, and i was very clear about this, i believe the existential threat to afghanistan is not the taliban and it is not pakistan. the existential threat is corruption. and until afghans are willing, ultimately as vonda has said, to shed their self-interest, until we are willing to deal with the criminal capture of institutions, both at the national level and very importantly, which makes progress their difficult, at the subnational level, until we are perniciousl with the nature of corruption, which is both corrosive of democracy, but also an impediment to building real capabilities and capacity within the institutions of government, afghanistan is going to be stuck where it is today, which i think it is still on the poverty scale of fourth poorest country in the world. they be the third or fourth at this point -- maybe the third or fourth at this point. but in terms of corruption, it ranks slightly above somalia and north korea. if we are ever to see real progress in afghanistan, it has to be at the point where the institutions can be wrested from the criminal capture of organized crime

taliban, the group that's been fighting the u.s. here in afghanistan for some 15 years, we've spoken with a taliban spokesman who's denied any links whatsoever to rahami or to the bombings on saturday in new jersey and in new york. and we do know from its past record that the taliban is often very quick to claim responsibility for deadly attacks carried out here in kabul, and in other parts of afghanistan. the areas where rahami traveled, yes, he went to quetta, a pakistani border town that is known to be a de facto headquarters for the leadership of the afghan taliban across the border in pakistan, but it's also home to many, many afghans going back to 1980s and the soviet occupation of afghanistan. it's important to note, also, wolf, that while the taliban may be denying links to rahami, there are many other militant jihadi groups that are active both on the afghan and pakistani sides of the border including al qaeda, including more recently isis. we have not heard from those organizations yet. we've reached out to the afghan and pakistani governments for some comment on this. no comment yet. you can be assured that u.s. investigators are reaching out to their counterparts in afghanistan and pakistan to try to learn more about rahami's movements during the time

taliban in afghanistan. >> it is the fighting season in afghanistan, the afghan security forces have done well this season, the taliban has been strong. the afghan security forces are much stronger this year than they were last year, they continue to gather strength, general nicholson is doing a great job of helping them with that, we made some decisions, the president made some decisions which gave general nicholson a wider scope, to advise assistance. the afghan security forces, the president made a decision to adjust upward our presence there next year. we're continuing to go forward with the aviation and other enablers for the afghan security forces, the process, which has been under way for some years to build the afghan security forces to a point where they can maintain the security of their country and afghanistan, doesn't become a place from which terrorism -- that is our program. that's what we've been trying to accomplish. i should turn it, we -- that o progre progress. >> there's no doubt that the afghan national security forces have had some challenges over the past 18 months when they've been in the lead and we've trained an assist mission. our assessment is that they continue to control about 70% of the country. they're taking far more casualties than they're comfortable with. and they have capability gaps, aviation enterprise. and of course broadly at the minister, defense minister interior level. that's our focus now. to further develop those capabilities. as well as the sack tickal set backs. i would call what's going on right now, between the afghan national defense security forces and the taliban as roughly a stalemate, the taliban had not been successful in achieving the goals that were outlined in their campaign plan, which they typically make public in the spring of this year. on balance, the afghan forces are holding. continue to grow their capability. they will be able toe provide security in afghanistan. as secretary carter said, as importantly, we'll be able to maintain an effective counter terrorism presence in conjunction with our afghan partners. >> thank you, gentlemen. >> thank you. >> thank you, mr. chairman, thanks to both of you for all you do to keep us safe and our country free. your service and sacrifice are deeply appreciated. >> late last week there was a video that surfaced, a video that appeared to show the free syrian army threatening and insulting american service members. forcing them to leave the town where they had been providing assistance to the fsa. analysts who studied the video believe the incident occurred because the u.s. is also supporting ku

taliban insurgents have claimed attacks. the president of afghanistan condemns the attack, saying the taliban is striking other targets because they can't win against afghanistan's security forces. president obama wraps up his final g-20 summit in china with a press conference...touching upon topics such as global trade, and the conflicts in syria and ukraine. fox's rich edson an officer - during a violent holiday weekend in chicago. witnesses say that a fatal shooting happened in an alley... near a backyard party in the southwest side of the city early yesterday morning. an officer was wounded later in the morning... after he had just finished his shift. the officer says a car pulled up alongside him and someone in the car started shooting at the officer. the officer was taken to a hospital and is in good condition. officials say there is no motive - but they're investigating if strong winds as hermine heads up the east coast. the latest models show the storm is more east than expected...meaning the jersey coastline could be spared from the heavy rains. however, the strong wind threat remains. governor chris christie signed

taliban tried to take control of more areas in the country, especially in kunduz and helmand provinces. as a result, hundreds of extremist militants of taliban and daesh, many of whom were foreign fighters, were killed or captured. we call on the international community to pay particular attention to the elimination of terrorist safe havens located outside of the country. we are -- to implement their international pledges in the fight against terrorism and to avoid a dual policy of making a distinction between good and bad terrorists which undermines the international order. we ask all of you, what were the previous leaders of the taliban and al qaeda residing. and where were they killed. and this very moment, where are the leaders of the taliban and haqani network cloectlocated? from where and how are terrorists being trained, equipped and financed during a full-scale war? we have repeatedly asked our neighboring country pakistan to destroy the known terrorist safe havens, but we, unfortunately, have yet to witness any change in the situation. afghanistan has always desired peaceful relations with all countries of the region. however, the government of national unity reserves the right to do whatever is necessary for the defense and protection of our people. we have also kept open the doors of peace and negotiations for those taliban elements and other groups who are willing to give up violence, return to peaceful life and adhere to our constitution. in this connection, a peace agreement is about to be signed between our government and the islamic party that will be an important step for progress in our peace process.

taliban in afghanistan? >> i'll start. the -- it is the fighting season in afghanistan. the afghan security forces have done well this season. the taliban has been strong. but the afghan security forces are much stronger this year than they were last year. they continue to gather strength. general nicholson is doing a great job of helping them with that. we made some decisions, the president made some decisions which gave general nicoholson some wider scope to advise the assistance of the afghan security force. the president made a decision to upward there. and other enablers for the afghan security forces. the process which has been underway for some years to try to build the afghan security forces to a point where they can maintain t mainta maintain the security of their country. that is our program. that's what we've been trying to accomplish. that progress we owe to general dunford when he was a commander there. he knows that. let me ask him to join in. >> senator, there's no doubt that the afghan national security forces have had some challenges over the past 18 months when they've been in the lead and we have gone to a training. our assessment is they continue to control about 70% of the country. they've taken far more casualties than we were comfortable with. in this special operations building may surprise. and of course broadly at the defense minister level. we are looking to further mitigate -- swls some tactical setbacks they've had. on balance i would call what is going on now between the security forces and the taliban is roughly a stalemate. the taliban have not been successful in achieving the goals of their plan which they make public in the spring of each year. and on balance the afghan forces are holding. if we commit to continue to support the afghan forces and grow their capability, they will be able to provide security in afghanistan. and importantly we'll be able to maintain a clounter terrorism platform in conjunction with the afghan partners. >> thank you, gentlemen. >> mr. chairman, thanks for all you both do to keep our country safe. your service and sacrifice are deeply appreciated. late last week there was a video that surfaced, a video that appeared to show the free syrian army -- personnel from the free syrian army threatening and insulting american service members. and forcing them to leave the town where they'd been providing assistance to the fsa. analysts who have studied the video believe the incident occurred because the u.s. is also supporting kurdish forces. secretary carter

taliban assessment to the peace process. i think he got it absolutely right. the afghan-taliban said, why should we engage in the peace process? . the enemy is leaving. sooner or later the americans are all going to be gone and when they're all gone, time is going to be on our side. we have to change that calculation. i think the president's decision to leave the number of troops in was the right decision. i think the safe havens and sanctuaries are not as safe as it has been also tips that calculation. it also tips the balance of power within the pakistani system. pakistan is an unusual country in a lot of ways. it has the civil military balance which is not imbalance. the military runs the afghan war. elected civilian leadership does not run the afghan war. we saw that in the peace process. the prime minister, i believe, was the sincere supporter of the afghan peace process. it is pretty clear that the general was not a sincere supporter of that. and in the end, his vote mattered more than the prime minister's. if we changed the balance of the safe haven and sanctuaries i thin

even the "taliban five" were senior taliban officials.gh level al qaeda operatives the president released or transferred. knows this. when he says in an interview he is releasing or transferring low-level individuals and only had a handful returned to the fight, we know that that is categorically false. stuart: why is he doing it? there is a enormous opposition to him doing this. we know that they're going back on to the battlefield to kill americans. we kw is. so why is he so committed to doing it no matter what? >> remember, closing guantanamo was a key part of president obama's case for election in 2008. this was the argument he made. we're going to take the united states on a different path. george w. bush has done this. we'll reverse most of george w. bush's counterterrorism policies and we're going to close guantanamo. he comes in office, second day in office he issues an executive order mandating guantanamo be closed within a year. he faced reality. people told him, look, mr. president, that is not really feasible. what he is doing

the taliban has claimed responsibility for the attack, and the defense ministry killed 35 people, and those attacks also claimed by the taliban. >>> with the labor day behind us, the presidential election campaign, traditionally considered the final stretch, but not many boaters -- voters remain undecided. but anything is possible.>> reporter: good morning. this is the final stretch, and election day is just about two months away. a lot can happen in these final weeks, and most of the national polls show this is within the margin of error.>> reporter: hillary clinton, post-labor day push means traveling on a new airplane, and at one point parked almost alongside donald trump's arrived in ohio.>> i am so happy to have all of you here. >> reporter: after nine months, clinton ventures to the back of the plane and finally takes questions, some focusing on the email controversy. >> i take legislation seriously. the fact that i cannot remember certain meetings on whether they have occurred does not in any way effect the commitment that i have and still have to the treatment of classified material.>> reporter: after a handful of que

married and had a child and spent time in areas with a heavy taliban presence to determine if he was radicalized overseas. the afghan taliban has publicly denied any involvement in the bombings. >> officials are trying to determine if he had help in this endeavor. would have taken some time to get all the materials to put the bombs together. >> explosive devices themselves hold clues as well. made with easy i to obtain ingredients and recipes accessible online. but those materials considered by experts to be a high explosive could have created a blast even bigger that was seen at the deadly boston marathon bombings. >> what did the fbi have to say about the fact that the father called them years ago? >> this is their answer. they said they made an assessment at the time. conducted multiple interviews, conferred with other law enforcement and checked databases and made a conclusion at the time had no ties to suspected terrorist groups. these are judgment calls they have to make. can't predict what others will do. two years later just behind me here, he did attempt to carry out a terror attack. >> thanks for the details. new

taliban presence. this to determine if he was radicalized overseas. the afghan taliban has denied any involvement in the bombings. >> the officials are trying to determine if he had help in this endeavour, it would have taken some time to get all the materials to put these bombs together. >> the devices were made easy to obtain ingredients, recipes that are accessible online. but those materials considered by experts to be a high explosive had a potential explosive power. bigger than what was seen in the boston marathon bombings. >> today i asked the new york commissioner james o'neal, what message dishave for new yorkers and for bherns the terror threat today. his answer was in his words, do not be governed by fearful i have to say as i'm standing here where the bombing took place, this is clear lay neighborhood not governed by fear. you get sense in new york as well. the commissioner said that people have to pay attention. this is a community effort to look out for the signs of terror. certainly a community effort in responding to this attack. that's part of his messa

taliban today. the ministry spokesperson says a district police chief and five other police officers were among those dead. taliban insurgents have been fighting to overthrow the u.s. backed government for 15 years and they frequent target afghan forces. >>> hundreds of thousands of pilgrims arriving in saudi arabia. pilgrimage. it's viewed as one of the muslim faith's greatest acts of worship. pilgrims walk seven times around an ancient shrine at the center of the grand mosque which all muslims face when they perform their daily prayers. >> marie: president obama says the u.s. and russia haven't given up on negotiations that could stem the bloodshed in syria. they acknowledge that leaders challenged by trust issues. the president president vladimir putin in china. 90 minutes of discussions did not result in a break through. the president didn't detail the troubled areas but suggested the u.s. has concerns about russia holding up it's end of the bargain and enforcing the terms. >>> president obama has canceled his upcoming meeting with philippines president rodrigo after the filipino leader made offensive remarks

taliban staged a deadly attack that killed at least 24 people. 90 were wounded. the taliban and had been gaining ground and increasing ground in territory across afghanistan. results from the election in -- china isow warning that any's there's any support for independence is against the law. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. in taylor riggs, this is bloomberg. tom: equities, bonds, currencies, commodities. let's get right after -- right to it. a churn after the jobs report. 1.61% on the 10 year yield, oil gyrating but that is a reset going halfway through august, 44.82. better 12.46 showing than expected on equity markets. 0.80%, andr yield there is brent crude, 47.09. a picture ofs is the european stocks fluctuating a bit and i think we have some news in terms of asian stocks. ,hey were at a one-year high the dollar weakening a touch as prospects for u.s. interest hikes seem to be subdued. i am looking at brent, $47 and the pound, 1.33. bloomberg,go to the a major shout out to deutsche bank who said, this is what matters. moving the three-month average of hours worked, up it goes and it evaporates back to where was in about 2011. this is a very subtle tea leaf kind of index and nonetheless it is disappointing to see hours worked roll over in america. francine: sorry to say that that payroll report failed to sway traders either way. i have something from japan, a simple chart. the white is the japanese ours 30 year -- japanese 30 year yield and the yellow is the 10 year bond. they are inching up a touch. a lot of traders are trying to plot the return of the yield curve that has been driving the bond rout. we will have more on japan and the labor force in the u.s.. all of that coupled with brexit and send gdp figures out of the ,u pretty much as expected germany factory orders undershot forecast as the momentum seems to be cooling. watt.g us is ewen cameron he is with us for the first half hour. given what we have learned in the past couple of months, u.s. data on friday did not really give an indication of the market. the expectation of monetary policy still matters. we have dealt with a number of crises against the backdrop of expectations of the ecb extending, the bank of japan extending, the boe coming to the party, and the volatility has been exceptionally low but i think that comes back to monetary policy. francine: are we expecting volatility to be low a bit? the 21st of september is probably the trickiest day because we have the boj in the morning and the fed is 12 hours later. moment. have a big we have the u.s. presidential debates starting at the end of the month. you get through september with no voc tech and volatility, thus with no uptick in volatility, that will be quite an interesting outcome -- with no uptick in volatility, that will be quite an interesting outcome. the the booming economy of u.k., i want to give you congratulations for not -- ewen: the economy looked dicey in july and better in august and part of that is due to the preemptive action that governor carney took. i think it is too soon to tell but the predictions of an immediate crash in the wake of brexit proved wrong. it is a long drawn out process that i think we will see overtime. services are good, housing is looking a little bit supported. sterling is beginning to strengthen. i think ahead it is not necessarily smooth seas. indicate oncet again that currency trumps all with an open global economy? currency adjustment is front and center? you bet, and currency adjustment is a sign of monetary policy. if you supply more and more money relative to demand, the decline in sterling is a panic. i think it has partly been because the supply has picked up but at a time obviously when the ecb is going to continue to increase its game. francine: should the ecb also wait for what the fed is doing? we saw that from the central bank of australia. ewen: they have had to rate cuts in fairly quick order and i think we will wait until they have their over inflation report. i think the ecb has got the problem that it cannot pull back , it cannot give up at this stage. it has to widen the menu of what it does and that can be tricky in some cases. i would guess that it is going to be the normal mario draghi performance of war people up and drop it in after that. in after that?it it is not a done deal? ewen: it is not, and it is a question of what do they do. keys,y change capital widen the range of assets? i think what you will see is a lot of technical adjustments but what they are not going to do is give up on the program and neither is governor kuroda. tom: i did euro-sterling because i missed you yesterday, cable, and up we go with sterling weakness. the brexit announcement and up we go, a weaker euro-sterling. within that is the overlay of what mario draghi does. let me ask a blunt question -- is there a shortage of paper in europe? .wen: there is going to be as of today there is not because of seasonal reasons that the ecb was below the running race in august but there is going to be, particularly german paper unless they change the rules. "unlessike the phrase they change the rules." what do you expect from mr. draghi? is it thursday? ewen: yes, thursday. they try to donk it once on a wednesday and the market freak out. ewen: it is a two-day meeting. francine: the problem is everything is on a timeline so if you are the ecb and the fed does something, what is the central bank that has the most to lose if they misread the fed? what are they going to lose at this stage? it is credibility. it is completely about -- not completely about inflation, credibility is something. the market not because of what they are saying but because of what they are doing. , describe it as confiscation qe is buying products and you have this insane competition. that is one of the reasons why emerging-market debt is running as strongly over the past several months. francine: black rocks yuan rocks ewenblack cameron watt stays with us. this is bloomberg. ♪ francine: this is bloomberg "surveillance tom: francine lacqua in london, tom keene in new york. airbus has one about six and a half billion dollars in orders from airlines in vietnam. expected to be one of the 10 fastest-growing aviation markets in the next two decades. british airways says it systems are back on my after computer problems caused widespread delays. passengers said it took two hours to check into flights and in some cases, employees were writing out boarding passes. the latest in a series of data signaling momentum and europe's largest economy. that is your bloomberg business flash. francine: thank you so much. has sweetened its takeover bid for monsanto. they are in advanced talks to what would be the largest deal ever. ewen cameron watt is still here. this is a huge deal because monsanto is so valuable and one of the only assets left in this kind of consolidation that may be bayer is willing to overpay. sure andy, i'm not so when we had first written about this deal in may people were talking about $135 animals $150, and this seems to be an they are willing to go but people are asking could this go hostile? francine: where this go through if they were hostile? ruth: analysts are speculating there is only a 50% chance of the deal going through with the approval then he to get from lawmakers and antitrust officers. beng hostile is not going to easy but that seems to be an option on the table right now, that is the understanding we get. tom: is there somebody else out there? would like us to believe there is somebody else out there and they have been saying they have strategic alternatives and other approaches. a little while back we had monsanto wast looking at buying one of the bsf units but if you look at syngenta and cam china and dow they are already there. tom: monsanto is not a true multinational, is it? it is a smaller company then we perceive, right? yes, and because of falling crop prices are the following share christ -- share price, and it is not at the level that iris are saying they are willing to pay so what has been vulnerable for a take aim are -- a takeover. this is more than just the chemical industry, right? this is cheap cash and big companies coming together. ewen: the aggregate chemical industry is a great industry because you get very long product life. think of it like the ethical drug companies. the drug is therefore long period of time, the approval periods are shorter. life so at ale time when people need long cycle cash flows, monsanto is not a big gush as big a company as many people think but it is the only prize left in that space. francine: coming up, we have a willd show, robert hormats join us at 6:00 a.m. in new york. we will be talking about vladimir putin's game plan. this is bloomberg. ♪ tom: new york city, it is september which means baseball is heating up. in the new york mets playing the nationals of washington and a good time was had by all. it was a three ice cream baseball game. francine: now you are talking my language. up until ice cream you were talking chinese. it is time for our morning must-read on baseball -- no, i'm kidding. formally the u.s. will -- formally ratified the climate agreement. this is what they say in the report. to combat climate change is rising. the risks are underappreciated yet could soon start to unfold. significant spending on sustainable infrastructure and government incentives are needed to meet emissions reduction target. it is largely, it is delivered somewhat but the talk about recession and the concerns in the economy meant that in certain cases climate change has taken a back door. ewen: let me put it this way. we have got this very powerful triangle forming of regulators being able to regulate more fsb taskhings like force is reporting at the end of the year. the board headed by mary schapiro and the sec has done its work and fiduciaries should -- regulation is going to increase in the cost of the technology to do this is coming down rapidly. battery storage technology. francine: but so is oil. alternative power generation is cheaper on a transmission basis at an auction scenario then other power. this is a risk that does not go away, it accumulates over time. there is an adaptation of being pressed by a regulator. tohink this is the potential be as big a disruption over the next five years essentially as shale was for the oil industry over the last five. francine: why our markets not seeing it? ewen: when did markets start to see the point of shale? francine: when it was too late. ewen: after six or seven years of explication. -- six or seven years of exploitation. growthsons to do with and with taxation an opportunity. be small cities rather than big national governments and the other thrust seems to be private enterprise ponying up the money and creating their own incentives. if we are going to get anywhere on this issue, can we go it alone versus big government, big institutional mandates? ewen: big institutional mandates are changing because people like the public in the united states are very much acknowledging, and the same as is true for europe. i think it is a question of how the profits develop over time that will ultimately change people's minds. if this disruption comes from technology or physical risk or regulation, that concentrates. tom: where does the u.n. fit in? ewen: it is the cheerleader, it is appearing in the bleachers if you want to keep with the baseball analogy. i see it very much as one of the enabling bodies and there are many of them. francine: what is the most critical? the problem is you are basically saying the markets are misunderstanding so if i were a market participant listening to you, what am i researching first of all? ewen: because i think profits will change people's minds, i guess it is the speed of disruption. generation energy and the lowering price of battery storage, it is a big story. it is happening so rapidly and we are seeing people paying up for access to this. i think this is something that is gradually going to grow. francine: thank you so much for joining us, ewen cameron watt of the blackrock investment unit. coming up we speak with francesco garzarelli at 5:30 in new york, 10:30 in london. this is bloomberg. ♪ tom: good morning, everyone, bloomberg "surveillance." francine lacqua in london, tom keene in new york. let's get to our first word news. taylor: president obama is in laos where he is pledging $90 million to clean up unexploded bonds and other munitions from the vietnam war as well as those injured when the devices explode . he is the first sitting u.s. president to visit laos. he is therefore a summit. presidential candidate donald trump is committed to taking place in all three debates with hillary clinton. previously he had hedged whether he would participate because of the moderators. the first debate is september 26. hillary clinton says it appear that vladimir putin and his aides will get some benefits and made it clear that tolerant -- interference will not be tolerated. anrobe found a pilot of emirates plane tried to take off again after crashing. a head wind started to shift to tailwind and back again. all 300 people aboard the plane .anaged to escape in venezuela the opposition is looking to build on the momentum against the president. opponents are trying to force the government to agree to a recall election. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. .rancine: thank you so much we are just getting breaking news out of south africa. we have been talking a lot about south africa because the finance minister has been embroiled in scandals. we are getting some second-quarter gdp figures out of south africa, expanding an annualized 3.3% in the second quarter, better than economists had estimated. they were predicting 2.6%. the rand gaining a touch on the back of that. a lot of high-yielding i.e. the rand, rose earlier this morning on confidence that the central banks will go out of their way to avoid jolting financial so that coupled with better-than-expected gdp makes her a higher rand. it is a busy bank -- busy month for central banks. francesco garzarelli of goldman joins us with the very latest. great to speak with you. it is nice to get started for a september morning, the first tuesday of the month, it is going to be a busy month. what have we learned about central bank in action over the summer months. francesco: we have learned to have been discussing a lot where they are going to take rates eventually in the cycle. our debate has been a very central in jackson hole. we learned about the limit of implementing zero rate policies and collateral damage this particularly at the rallies at the long end of the curve, the damage to pension and insurance companies where low yields are created. francine: when does the yield start being normalized? the curve is basically nonexistent. ewen: we saw that turning a little bit -- francesco: we saw that turning a little bit in japan. i think that is a reflection mostly of how the central bank has spoken about its implementation of policy. the next big thing seems to be too stupid back the yield curve to make policy even more toective -- seems to be steepen back the yield curve to make the policy even more effective. the rates will be highly determined by what the central banks do. francine: what can the fed do to help or at least not hurt the rest of the world? francesco: i would say hike gradually. the ways this is going to go is they will hike again. he have higher chances of them moving already in september, mainly because we find it hard to see what they are going to come up with to say why they are not going. the unemployment rate was ok and we did not have a catastrophe two factors that refrained them from hiking in june. the narrative is straightforward for delivering a hike in september. the probability is not there but it would take a couple of speeches to lift it up. alongside with the hike, they could come out and say the trajectory is going to be lower, and that will be interpreted as a dovish normalization of policy. tom: it is a time for readjustment and i know you have done that with goldman sachs. this is the three major banks' assets. the white line is the u.s., the red line is japan, and down below is the tentativeness of the ecb. what is the new orthodoxy of economics that links into finance? what are you thinking about moving to october and into next year? francesco: i think the policy winds arehanging -- changing in a important direction. there are limits to lowering rates. lower-called effective bound is relatively shallow because of the institutional frictions that we live with. pushfore, there has been a towards expanding fiscal policy and allowing central banks to underwrite essentially bigger budget extensions through the qe plans. we are likely to see this in action in the u k the ecb will continue doing qe all throughout 2017 in our view and the boj has set the path. tom: is reflation possible? the idea that a bunch of policymakers can "reflate" and economy, is that even possible? francesco: i think so. i think we have been a bit unlucky as people would like to see inflation up because of what has happened to the energy markets, which was another normalization post crisis. the effect of that repricing of commodities is waning. in 2017 we should see a bigger contribution from energy and food. alongside that we are seeing economies that have received plenty of stimulus like the united states reducing inflation and services, which make up a lot of the cpi basket. tom: that is a very important point. tell me about the immense spread between fed watched inflation and service sector inflation in the united states at 3.2%. the is a remarkable divergence in our different price changes, isn't there? francesco: there is and in our experience and analytical work we find that service inflation tends to lead. it is more persistent. you have things like education, recreation. the prices generally have an asymmetric behavior. it is easy to see prices stay -- is ear to see prices stay stable or go up then to fall. inflation% service means that we are likely to stay there or go above. tom: francesco garzarelli with us. in the next hour we will drive forward the conversation, the dollar view, the ambiguity of the dollar view with stangl and -- with steven englander of citigroup. this is bloomberg. ♪ tom: good morning, everyone, bloomberg "surveillance." after labor day in america, september truly get started. francine lacqua in london, tom keene in new york. with us is francesco garzarelli. when a look at trade weighted and blended dollar dynamic, do we get a repeat of the stronger dollar? francesco: if the fed hikes as we think, i suppose so. i think the key to getting the dollar even stronger is seeing signs of inflation in europe and japan. they seem a bit convoluted but i think the problem here is despite all the policymakers, expectations of inflation have not increased in europe and japan and that has only led to higher real rates in comparison to those prevailing in the united states. that has kept the exchange rates stronger than warranted. as we go through the coming quarters and see more fiscal policies being delivered to these economies, europe and japan, and that starts working its way through prices, i think there is hope to see the dollar stronger again. also a stronger european and japanese domestic demand should relax the fed and get them more comfortable with the hiking cycle. tom: mervyn king calling it a level change, let's bring up the chart of the dxy. you can see the range bound action for two and half years and range bound recently as well . i believe within a currency war other nations want their currencies weaker so is brazil or the united kingdom, are they rooting for a stronger dollar? francesco: i think it is a cheap way of getting out of problems, which we have tried, countries have tried time and again. if you are small maybe you can get away with it, small in terms of your share in global trade. if you are the size of japan or the euro area you would hardly think that is going to last for long. i think what is missing in those places as we need a revival of domestic demand and that needs to be encouraged by furthers policymaking -- further policymaking. as i said before, i think there is a change in the political greater recognition that fiscal policy can play a role here. francine: going back, is that the end of the currency wars? we see the yuan a little bit marketsd it seems the are testing the app the site for the pboc. everybody wants a weaker currency. is at the end of the euro where it is a race to the bottom? francesco: i think so. it has been discussed at least twice this year in g-20 for a a.h for a -- for the experience of 2013 proves it, it is a one off but if that initial boost is not followed by other things happening mostly on the domestic side. you have the most to lose if they misunderstand what the fed is doing. the biggest experiment which is on the verge of possibly failing, is japan, is that fair? francesco: they have been where they are for 20 years so i think in the global equilibrium, particularly for markets, we talk a lot about japan because where the jgb's have yielded and they are at the forefront of these problems so we are all watching what they are going to next to learn something about what they can export. would not say japan is central in the way the european area is. europe is the underperformer in the cycle. tom: francesco garzarelli with us. later today on bloomberg radio, really looking forward to speaking with dennis garden. -- gartman. dennis gartman on the collapse of wheat. this is bloomberg. ♪ francine: this is a picture of the city of london. this is i think millennial bridge. keene's all-time favorite landscape in london. tom keene is in new york, im francine lacqua in london. tom keene said we do not have a good landscape. the worstandscape is in london. what else do i need to say besides the walkie-talkie? francine: i quite like it. oneead of talking economics day we are going to two or all of the london monuments. let's get up to speed with corporate news. taylor: bayer has increased its bid for monsanto a second time to about $56 billion. the have been in advanced talks for what would be the biggest agriculture related takeover ever. evaluatingys it is the offer along with proposals from other parties. struggling. the company filed for receivership last week. needs money tone pay fuel bills and for port operators to unload cargo. apple unveils its newest iphone tomorrow. unlikely to have any breakthrough features that marked earlier models. iphones made up almost two thirds of apple's revenue and iphone sales have been falling. that is your bloomberg business flash. gene munster will join us to pick up the debris after the announcement on thursday. i will be buying one, francine. so idue for an upgrade will be buying one of the 12 that are sold. tell,ne: as far as i can a bigger screen and better camera but i'm not sure how it works. you can also listen to music without the line. i am looking forward to buying an iphone and discussing it on the air. that's turned to european politics. now that the u.k. has decided to leave the eu the next challenge is italy. we are with francesco garzarelli really -- and just googlers a really. when you look at -- francesco garzarelli. when you look at europe as a whole you were calling it the underperformer. politically it makes everyone less fragile yet we are growing a touch. this year itthink is just above 1% and next year it will be a little above that with some fiscal contribution. remains stuck at 1% and if you look at the forwards, it is going to be there forever which is really the disappointing feature. francine: do you worry about italy? you are in italian and there is the referendum does not get through and renzi has to step down and something uglier will pop up. with that play on the market that the ecb is there? francesco: let's talk about the referendum in a line, it is not a brexit winery event. event.e trying -- binary they are trying to make the constitution more stable and effective. they tried 10 years ago and ofled so it is a repeat something the italians have been trying to deliver since the 1980's. why does it matter now? there is this sense that italy needs to change in order to improve in its growth performance. that thed be a signal direction is still the same. italy has a, problem with its banks. the banks need to be, some of them recapitalized. there is plenty of nonperforming loans, so having a government failing on this referendum and therefore would be weaker could create some problems for the ecb. tom: let's look at the italian struggle you just mentioned. a four yearian gdp, moving average, a stunning chart taking the four year moving average back to 2002 and 2003. just a stunning failure. from a distance, what is the level of screen? we saw a merkel defeat over the weekend. what is the primal scream of the people? how loud will it be? francesco: i think they are really screaming from what i read. if you add up the five-star which tends to be more on the anti-establishment side of the political spectrum, political projections give them 40% of the national vote which is high in the context of the bigger european country. if the elections were to be run today in the lower house, you would most likely have one of these populist movements taking power. the problem is on the upper house there is a. a proportional electoral law in t pur --ity proportional electoral law in place. i think italy cannot afford it. tom: what does goldman sachs think about eastern europe? it has been quiet recently but i do not buy it. francesco: there is always stuff brewing. i think is to your is in general enjoying this growth in the core countries with very low rates. there is some vulnerability initiate -- originating from the low rate environment should policy change course. it is not a focal area. i think the focal areas are politicalthere is brewing in spain as well. francine: you said it would take a couple of speeches from fed officials to reprice markets, right? the fed would never move if the markets were not fully priced in september? francesco: why do liver a shock whyt now, it is strange -- deliver a shock right now, it is strange. , thee emphasis were to be haslative data up until now been sufficient for us to deliver this other hike we are going to do it but then something about the path being lower, i think that will fit the bill. from alook at this distance and the vote against merkel on immigration this weekend, i just think sets the tone for the autumn in europe. that is stunning. francine: it is a stunning statement. for the first time there is a real combination of the u.s. politics. you have an election with donald trump running and they are running on the same fears, be it brexit or the movement in italy. that is what is worrying it's global. tom: francesco garzarelli with goldman sachs. robert hormats will join us of kissinger associates, steven englander of citigroup as well. this is bloomberg. ♪ tom: the summer ends, the fall begins. in this hour, janet yellen adjusts to america's great europe, japan,h china, and britain. in this hour, robert hormats on -- the philippines, in a pivot to a new level of indecency. prepare for aump september 26 debate. good morning, everyone. this is "bloomberg surveillance ," live from our world headquarters in new york. it is tuesday, september 6. any number of ways, francine, to reset? i would be set on the politics of europe, the defeat of chancellor merkel in germany. francine: especially when you look at factory orders in germany pointing to slower momentum, to brexit, and then we need to look further east to the emerging markets. they are gaining. tom: robert hormats will join us in a bit. right now, "first word news" with taylor riggs. presidentilippines rodrigo duterte -- the white house canceled a meeting with him after an expletive-filled tirade at the u.s. president. on monday, duterte warned against the u.s. interfering in the war on drugs. today he says that he regrets his comments came across as a personal attack. the u.k. secretary of state pre-brexit has made his -- he says there is no turning back. at the end of the process, britain will be out of the european union. >> the prime minister has made clear there will be no attempt to stay in the eu by the back door, no attempt to delay, frustrate do will of the british people. no attempt to engineer a second referendum. because some people did not like the first answer. several parliamentary committees say they will investigate various aspects of brexit. kabul, afghanistan, the talibanadly attack. two explosions outside the afghan defense ministry killed at least 24 people. 90 were wounded. the taliban has been gaining ground and increasing its hold in territories across afghanistan. results from the election in hong kong show a strong performance by younger, more radical lawmakers. china is warning that any support for independence is against the law. global news 24 hours a day, powered by more than 2600 journalists and analysts in more i am taylorntries, riggs. this is bloomberg. francine, tom? tom: let's get to the data right now. ambiguity over the next six minutes -- futures up three, the euro has done nothing. -- x crude post jobs, the vix, great equity markets. francine? francine: what do you mean ambiguity? markets today are on fire, at least a little bit. they were flat in europe. high-yielding currencies rising on the back of the fed. the pound, 1.3338. tom: let me go over to the bloomberg right now. joe from deutsche bank, thank you so much for saying, he

secondary interviews, and he apparently traveled to an area where there is a heavy taliban and al qaeda obviously presence of taliban and al qaeda there. now we know that isis has a presence in central asia. so authorities are going to look very hard, pull every string possible and certainly are going to be working with pakistani and afghan authorities to understand what may have been happening on the ground. >> juan, thank you for your perspective on a morning like this. thank you. >>> the bombings are making national security an even bigger issue in the presidential campaign with the election 49 days away. the state of the race today db back-to-back rallies in north carolina there, while his running mate, mike pence, holds an event of his own in virginia. >> hillary clinton is not scheduled to be on the trail today but her running mate with being tim kaine, will attend several events in los angeles. >> and our latest nbc news survey mon ckey online poll sho clean in the lead among likely voters, 50%-49%. alexander with the latest on those headlines. >> reporter: good morning. on the sidelines of the united nations

taliban presence. this to determine if he was radicalized overseas. the afghan taliban has denied any involvement in the bombings. >> the officials are trying to determine if he had help in this endeavor. it would have taken some time to get all the materials to put these bombs together. >> reporter: the devices were made with easy to obtain ingredients and with recipes accessible online. but those materials, considered by experts to be a high explosive, had a potential explosive power bigger than what was seen in the boston marathon bombings. jake, when i spoke to the new york police department commissioner today, he made it clear this is an ongoing investigation. they have not eliminated the possibility that there were others in rahami's support network. they don't have an answer to that question now. here i am on 23rd street, a few yards from where the bombing took place. it is hustling and bustling. it's been the same the last 24, 48, 72 hours. being here, jake, particularly as a new yorker, you do not get a sense of a city that is on edge or nervous. they're handling this very bravely as always. >> new yorkers made of sturdy stuff. thank you. >>> pamela brown is with me here in washington. she has been looking into the background of this alleged terrorist. today we learned this man's wife left the country before the attack. an official told cnn she is cooperating. do they think she was involved in any way, aware of her husband's alleged plans? >> we're being told by officials that she is not being accused of wron wrong-doing. that there is no indication she was involved or had knowledge of the plans. she was pakistani and patiently had come to the united states and went back to pakistan on a trip recently. we're told by officials that she was making her way back to the united states and was questioned in the united arab emirates after it became clear her husband was the bombing suspect. we're told by u.s. officials that she is cooperating, that she is still in the area. she did not make it to the united states. they married in 2011 in pakistan. a few years later we've learned the suspect here contacted a u.s. congressman's office asking for help getting his wife to the united states. she became pregnant. that created complications. we're told she eventually made it to the united states. >> the alleged terrorist travelled to afghanistan and to pakistan. what are officials looking for there? obviously possible radicalization. >> that's right. he travelled to places considered taliban strongholds. he spent a year there from 2013 to 2014. he also went there in 2011 for some time. when he came back he actually went through secondary questioning. he was a naturalized u.s. citizen, but they questioned him considering where he visited, and he claimed he was visiting his wife and uncles, and he passed the screening without raising any red flags, jake, without being put on any terror databases. of course, officials are going back to see if something was missed given what has unfolded. >> got to be a lot of second guessing going on at the fbi that they didn't interview him even though the father had said he was a terrorist. >> right. they interviewed the father and other people according to the statement but never interviewed him. at the time he was in jail. so they're saying that was part of the reason why they didn't interview him. given the fact of the accusations and what's happened two years later i think there is definitely second guessing. >> fbi can be right a thou

taliban presence. this to determine if he was radicalized overseas. the afghan taliban has publicly denied any involvement in the bombings. >> the officials are trying to determine if he had help in this endeavor. it would have taken some time to get all of the materials to put these bombs together. >> reporter: the explosive devices themselves hold clues as well. they were made with easy to obtain ingredients and with recipes that are accessible online. but those materials, considered by experts to be a high explosive could have created a blast even bigger than was seen at the deadly boston marathon bombings. >> jim, what did the fbi have to say about the fact that the father called them years ago? >> reporter: this is their answer. they said they made an assessment at the time. conducted multiple interview, they conferred with other law enforcement agencies and checked their databases and made a conclusion that at the time two years ago he had no established ties to terrorism groups. these are judgment calls they have to make. they cannot predict what someone will do. they can only make a decision oz to who is an immediate threat. two years ago that was their decision. of course two years later just behind me here he did attempt to carry out a terror attack. >> jim, thanks for those details. the new details about the suspect of his relationships and family life painting a troubling picture to say the least. pamela brown joins me. what do you know about the suspect's wife? >> we learned he met his wife traveling overseas. her name is asia rahami. and in 2011 sna put an application to dominant the u.s. it was approved. there were some issues with her visa and passport. she became pregt. eventually we're told by u.s. officials she did come to the united states but she left sometime before the bombs were placed by her husband. there is no indication she fled this early stage in the investigation. in fact we know u.s. officials in the united arab emirates have been peeking to her and she's been cooperating giving information and not been accused of any wrong doing but of course she's someone that officials want to learn from about her husband why he did something like this and what she may have known. >> and when the suspect returned to the u.s. after traveling to afghanistan, pakistan. was any further action taken after that? >> we learned from u.s. firnls that customs and border protection enter the information they received in the secondary screening into a database shared by law enforcement. and in addition were told that cvp notified law enforcement agencies, including the fbi, about rahami given where he traveled to, these high risk areas and given the fact that he spent a year in pakistan and had been there previously. i'm told by law enforcement officials he was in a batch of people. so there was a list of names. he was one of them. he wasn't singled out and that these notifications are pretty common. but we're told anderson, that the fbi was notified about him just a few months before the inquiry was opened up in august of 2014. yet he was never interviewed. so all of this is really under review right now anderson? >> thanks for the details. joining me now -- a layman looking at this saying, wait a minute. the dad called the fbi, said my son's a terrorist. we know he traveled in afghanistan. pakistan. spent a year in pakistan. in quetta no less. headquarters of taliban. and yet, you know, and was blowing up stuff in his backyard on video and yet they didn't put the pieces together. is it a mistake on their part? or is -- i mean, you know what is like to make the threat assessment. what happened? >> we're look at this in the wrong direction. we take one case and say are there things that should have been suspicious? of course. go the other direction. the direction i lived in. take a sea of information of the a dad calls and says he's concerned about his kid. he claims he told the fed his kid was a terrorist. that's what e says. that that. he doesn't have to declare when he returns to country. let's take those facts. a dad calls and says he's concerned about a kid and the kid travelled to pakistan. 330 million people in this country. 2 million plus traveling overseas every month. you cannot take that information, anderson and say this should leave me to develop a further investigation. too many people, too many problems. i think people are taking a ca

taliban tried to take control of more areas in the country, especially in kunduz and helmand provinces. as a result, hundreds of extremist militants of taliban and daesh, many of whom were foreign fighters, were killed or captured. we call on the international community to pay particular attention to the elimination of terrorist safe havens located outside of the country. we are -- to implement their international pledges in the fight against terrorism and to avoid a dual policy of making a distinction between good and bad terrorists which undermines the international order. we ask all of you, what were the previous leaders of the taliban and al qaeda residing. and where were they killed. and this very moment, where are the leaders of the taliban and haqani network cloelocated? from where and how are terrorists being trained, equipped and financed during a full-scale war? we have repeatedly asked our neighboring country pakistan to destroy the known terrorist safe havens, but we, unfortunately, have yet to witness any change in the situation. afghanistan has always desired peaceful relations with all countries of the region. however, the government of national unity reserves the right to do whatever is necessary for the defense and protection of our people. we have also kept open the doors of peace and negotiations for those taliban elements and other groups who are willing to give up violence, return to peaceful life and adhere to our constitution. in this connection, a peace agreement is about to be signed between our government and the islamic party that will be an important step for progress in our peace process. w