1 00:00:05,559 --> 00:00:08,680 Speaker 1: Good morning. I'm Michael McKee along with Tom Keane. This 2 00:00:08,760 --> 00:00:11,520 Speaker 1: is Bloomberg Surveillance. It is seven am on Wall Street, 3 00:00:11,560 --> 00:00:15,360 Speaker 1: twelve noon in Brussels, site of yet another terrorist attack. 4 00:00:15,440 --> 00:00:19,919 Speaker 1: Two explosions ripping through Brussels Zavantum Airport departure hall at 5 00:00:19,920 --> 00:00:23,239 Speaker 1: a third rocking in downtown subway station this morning, deaths 6 00:00:23,280 --> 00:00:25,919 Speaker 1: and injuries. Unconfirmed reports at this hour put the toll 7 00:00:26,000 --> 00:00:29,680 Speaker 1: at as many as twenty six dead. Air passengers say 8 00:00:29,720 --> 00:00:32,360 Speaker 1: the bombs went off in rapid succession around eight a m. 9 00:00:32,400 --> 00:00:35,480 Speaker 1: Brussels time, the peak checking hour for morning flights within 10 00:00:35,560 --> 00:00:38,160 Speaker 1: europe An. Hour later, an explosion hit a subway station 11 00:00:38,200 --> 00:00:42,800 Speaker 1: a short walk from European Union headquarters. Julia ambra Verlaine 12 00:00:42,840 --> 00:00:45,599 Speaker 1: is with Bloomberg News in Brussels and she is outside 13 00:00:45,640 --> 00:00:49,760 Speaker 1: that subway station. Julia, what is the latest? So the 14 00:00:49,800 --> 00:00:52,600 Speaker 1: streets are blocked off, two full blocks. They actually pushed 15 00:00:52,640 --> 00:00:54,000 Speaker 1: us back. It seems like there's a bit of a 16 00:00:54,040 --> 00:00:57,240 Speaker 1: special operation going on. Their swats forces and policemen, but 17 00:00:57,320 --> 00:01:00,279 Speaker 1: no military forces, and they're actually telling us to all 18 00:01:00,280 --> 00:01:02,840 Speaker 1: go home. There's no access to the human areas where 19 00:01:02,840 --> 00:01:05,800 Speaker 1: all the EU institutions are. There is a report that 20 00:01:05,840 --> 00:01:09,200 Speaker 1: there was another explosion, although we understand it may have 21 00:01:09,280 --> 00:01:13,440 Speaker 1: been a controlled explosion of another device. UM it's a 22 00:01:13,480 --> 00:01:16,479 Speaker 1: bit confusing because, as usual the Brussels security don't want 23 00:01:16,480 --> 00:01:18,920 Speaker 1: to give anything out but their fear of information getting 24 00:01:18,959 --> 00:01:22,120 Speaker 1: out to the attackers. What are they being very tight lipped? 25 00:01:22,440 --> 00:01:25,119 Speaker 1: What do we know about casualties now that there are 26 00:01:25,200 --> 00:01:28,240 Speaker 1: all kinds of numbers being tossed around. The latest unconfirmed 27 00:01:28,280 --> 00:01:32,200 Speaker 1: reports say six once again still unconfirmed. But what I 28 00:01:32,200 --> 00:01:34,919 Speaker 1: can say is I've seen about three ambulances go towards 29 00:01:34,920 --> 00:01:37,600 Speaker 1: the Malveck station, so they've seen some more ambulances pouring 30 00:01:37,600 --> 00:01:40,920 Speaker 1: into the zones of attack. Julia, thank you very much. 31 00:01:41,000 --> 00:01:45,360 Speaker 1: Julia Ambrose Verlaine with Bloomberg News in Brussels. Mid Dramon 32 00:01:45,640 --> 00:01:50,080 Speaker 1: is with us right now from the from the Director 33 00:01:50,080 --> 00:01:53,960 Speaker 1: of European Analysis at the Eurasia Group in London, Midge 34 00:01:53,960 --> 00:01:57,360 Speaker 1: One presumes today's actions connected to the arrest of Salah 35 00:01:57,360 --> 00:01:59,960 Speaker 1: Abd a Slam, believed to be the only surviving perfect 36 00:02:00,000 --> 00:02:05,480 Speaker 1: trader the Paris massacres. Absolutely absolutely. I don't think it's 37 00:02:05,520 --> 00:02:08,800 Speaker 1: a coincidence at all, and I think more and more broadly, 38 00:02:08,840 --> 00:02:12,160 Speaker 1: if we think about the security environments in Europe at 39 00:02:12,160 --> 00:02:14,720 Speaker 1: the end of last year, with the attacks in Powers, 40 00:02:14,840 --> 00:02:18,400 Speaker 1: multiple attacks here in Belgium. Today's events, I think they 41 00:02:18,480 --> 00:02:23,280 Speaker 1: do all point to a deteriorating security environment, which we 42 00:02:23,320 --> 00:02:26,760 Speaker 1: do think carries a large number of political and ultimately 43 00:02:26,800 --> 00:02:30,280 Speaker 1: business implications for people transacting on the continent. Well, the 44 00:02:30,320 --> 00:02:33,520 Speaker 1: obvious question is how this could happen in a place 45 00:02:34,120 --> 00:02:37,880 Speaker 1: like Brussels, which must have been a very very high alert. 46 00:02:39,040 --> 00:02:41,120 Speaker 1: I think it does on some level point to the 47 00:02:41,200 --> 00:02:44,760 Speaker 1: incompetence of the Belgian administration. I mean, the Foreign Minister 48 00:02:45,600 --> 00:02:49,520 Speaker 1: only a number of days ago we was talking about 49 00:02:49,600 --> 00:02:53,639 Speaker 1: how the government has made serious progress and stride and 50 00:02:53,720 --> 00:02:58,200 Speaker 1: addressing the domestic security environment. It's obviously blows a hole 51 00:02:58,240 --> 00:03:02,079 Speaker 1: in that narrative. Um, But I do think there is 52 00:03:02,080 --> 00:03:04,920 Speaker 1: a question about competence of the government. But this is 53 00:03:04,960 --> 00:03:07,520 Speaker 1: not simply a local issue for the Belgian authorities. There 54 00:03:07,600 --> 00:03:11,080 Speaker 1: is concern across Europe, not least because Belgium is the 55 00:03:11,120 --> 00:03:15,559 Speaker 1: heart of Europe and all of the European unions institutions 56 00:03:15,639 --> 00:03:19,760 Speaker 1: are located there. A large number of ex pot workers live, 57 00:03:20,320 --> 00:03:23,760 Speaker 1: preside work in Brussels, and I think those nationals and 58 00:03:23,800 --> 00:03:26,520 Speaker 1: their governments are also going to be very concerned about 59 00:03:26,560 --> 00:03:28,720 Speaker 1: the events that have taken place. To that, we welcome 60 00:03:28,760 --> 00:03:31,600 Speaker 1: all of you to our coverage worldwide and Bloomberg Radio 61 00:03:31,800 --> 00:03:35,640 Speaker 1: of another tragedy for Europe. Moving on from November and 62 00:03:35,680 --> 00:03:38,160 Speaker 1: the Paris attacks only four months later, here it is 63 00:03:38,280 --> 00:03:42,400 Speaker 1: March in this morning, single word is Brussels, miss Raman 64 00:03:42,520 --> 00:03:45,560 Speaker 1: with US with Eurasia Group, Madge, I think the great 65 00:03:45,600 --> 00:03:48,640 Speaker 1: unspoken here, which we did discuss over the last few 66 00:03:48,680 --> 00:03:53,000 Speaker 1: hours of surveillance, is each and every attack is basically 67 00:03:53,040 --> 00:03:58,400 Speaker 1: a suicide attacks, suicide terrorism, and that what is Eurasia Group. 68 00:03:58,440 --> 00:04:02,560 Speaker 1: The combined abilities of you willis sparks Ian Bremer in 69 00:04:02,600 --> 00:04:06,760 Speaker 1: your large team. What have you learned about the defense 70 00:04:07,560 --> 00:04:11,200 Speaker 1: against people who want to give their lives for a cause? 71 00:04:12,680 --> 00:04:15,440 Speaker 1: I think Tom, it's a you know, let's say the 72 00:04:15,480 --> 00:04:20,280 Speaker 1: Americans have over time since nine eleven, I think got 73 00:04:20,320 --> 00:04:23,840 Speaker 1: better in terms of their domestic security environment. I think 74 00:04:23,880 --> 00:04:27,000 Speaker 1: the Europeans are on something of the learning curve. This 75 00:04:27,120 --> 00:04:31,960 Speaker 1: is a relatively new phenomenon the Europeans are now struggling with, 76 00:04:32,279 --> 00:04:37,039 Speaker 1: certainly with the advance of ISIS domestic security threats in 77 00:04:37,120 --> 00:04:40,600 Speaker 1: Turkey with the p K k we are seeing a 78 00:04:40,720 --> 00:04:44,719 Speaker 1: larger number of multiple events take place all across the Union, 79 00:04:44,760 --> 00:04:47,680 Speaker 1: and I think leaders are beginning to wake up and 80 00:04:47,760 --> 00:04:51,840 Speaker 1: recognize that there needs to be a response. Now. Will 81 00:04:51,880 --> 00:04:54,400 Speaker 1: that response be a federalized response? Will it be a 82 00:04:54,400 --> 00:04:57,599 Speaker 1: collective response our concerners, No, it won't be. This is 83 00:04:57,720 --> 00:05:01,120 Speaker 1: likely to result in a four order ceiling, a further 84 00:05:01,279 --> 00:05:05,159 Speaker 1: rather ceiling of the borders, a more nationalized response to 85 00:05:05,320 --> 00:05:08,360 Speaker 1: the problem, which of course arguably won't get us all 86 00:05:08,400 --> 00:05:11,360 Speaker 1: the way in addressing these issues. And addressing these problems, 87 00:05:11,480 --> 00:05:13,919 Speaker 1: we should note at this hour there is a market reaction, 88 00:05:13,960 --> 00:05:16,640 Speaker 1: of course to what is going on. The stock six 89 00:05:16,720 --> 00:05:19,280 Speaker 1: hundred down two points right now half a percent. The 90 00:05:19,360 --> 00:05:23,400 Speaker 1: Belgian stock market stayed open and it is now higher 91 00:05:24,040 --> 00:05:28,359 Speaker 1: the bell twenty, the benchmark index up by three dasis 92 00:05:28,400 --> 00:05:31,720 Speaker 1: points at the moment a point on the day. In 93 00:05:31,760 --> 00:05:34,680 Speaker 1: the US, futures are lower, SMP futures down by five, 94 00:05:35,200 --> 00:05:38,600 Speaker 1: down futures down by twenty seven, Nazdak futures off by thirteen. 95 00:05:38,880 --> 00:05:42,480 Speaker 1: The biggest impact in the currency markets the euro down 96 00:05:42,560 --> 00:05:46,920 Speaker 1: one and the pound is at is off seven tenths 97 00:05:46,960 --> 00:05:51,160 Speaker 1: of eight percent. Mid Ramen from the Eurasia group. This 98 00:05:51,240 --> 00:05:55,560 Speaker 1: has implications for the Brexit vote. It hasn't has a 99 00:05:55,600 --> 00:05:58,839 Speaker 1: whole host of economic implications. Brexit is one of the 100 00:05:58,880 --> 00:06:02,280 Speaker 1: most important type. David Cameron, British Prime Minister, has been 101 00:06:02,400 --> 00:06:06,279 Speaker 1: arguing that the UK is safe in the European Union. 102 00:06:06,320 --> 00:06:09,040 Speaker 1: That narrative becomes harder to sell in the context where 103 00:06:09,240 --> 00:06:11,719 Speaker 1: the Europeans are clearly struggling to get in control of 104 00:06:11,720 --> 00:06:14,240 Speaker 1: the terrorism problem. But I think there's also a risk 105 00:06:14,400 --> 00:06:17,920 Speaker 1: fishing and shangen integrity. We do know, of course, there 106 00:06:17,920 --> 00:06:22,080 Speaker 1: have been more border controls in areas strategic, in areas 107 00:06:22,080 --> 00:06:25,320 Speaker 1: of strategic concern across Europe. I think the likelihood now 108 00:06:25,360 --> 00:06:29,240 Speaker 1: increases and it is also real and might to your point, 109 00:06:29,360 --> 00:06:32,080 Speaker 1: it might pick it up here with Midge Raman. This 110 00:06:32,160 --> 00:06:35,279 Speaker 1: is a tweet across the Bloombergs through the Twitter, of course, 111 00:06:35,839 --> 00:06:39,280 Speaker 1: from Donald J. Trump. Do you all remember how beautiful 112 00:06:39,320 --> 00:06:43,560 Speaker 1: and safe a place Brussels was not anymore? It is 113 00:06:43,600 --> 00:06:48,080 Speaker 1: from a different world. The US must be vigilant and smart. Unfortunately, 114 00:06:48,160 --> 00:06:52,719 Speaker 1: someone not competent to comment is commenting on Twitter. Um. 115 00:06:52,760 --> 00:06:56,880 Speaker 1: But Midge, it does raise the issue that extremist politicians 116 00:06:57,080 --> 00:07:00,320 Speaker 1: are going to get a platform. It doesn't. That form 117 00:07:00,400 --> 00:07:02,960 Speaker 1: comes from the fact there is growing that there is 118 00:07:03,000 --> 00:07:07,320 Speaker 1: a growing sentiment across European public opinion towards enophobia and 119 00:07:07,320 --> 00:07:10,680 Speaker 1: and anti immigration right, so right wing parties are going 120 00:07:10,720 --> 00:07:14,760 Speaker 1: to capture and take advantage of that sentiment. Ultimately, that 121 00:07:14,920 --> 00:07:18,600 Speaker 1: further constraints government's room for maneuver, which in turn means 122 00:07:18,720 --> 00:07:21,520 Speaker 1: these crises that Europe is facing, be it terrorism, be 123 00:07:21,600 --> 00:07:24,920 Speaker 1: it borders, be at the refugee crisis, are likely to 124 00:07:25,000 --> 00:07:30,400 Speaker 1: remain life for some time. The major issue in Europe 125 00:07:30,480 --> 00:07:34,160 Speaker 1: right now open borders. Is this going to be the 126 00:07:34,400 --> 00:07:39,200 Speaker 1: end of the Shangan initiative. I don't think it's the 127 00:07:39,360 --> 00:07:41,720 Speaker 1: end of Schengen, but it is a further nail in 128 00:07:41,720 --> 00:07:44,920 Speaker 1: the coffin in the integrity of free movement in the 129 00:07:44,960 --> 00:07:49,640 Speaker 1: European Union. I mean, there were already border checks in 130 00:07:49,760 --> 00:07:53,440 Speaker 1: areas perceived to be a strategic concern. French Belgian borders 131 00:07:53,480 --> 00:07:57,000 Speaker 1: are very good example. I do think now you're likely 132 00:07:57,040 --> 00:07:59,720 Speaker 1: to see more of those ad hoc checks, which of 133 00:08:00,000 --> 00:08:04,280 Speaker 1: of in combination with you know, and de facto borders 134 00:08:04,400 --> 00:08:11,000 Speaker 1: between Greece, Macedonia, Austria Germany, does result in increased transactions 135 00:08:11,040 --> 00:08:14,440 Speaker 1: costs for business and does raise questions about the integrity 136 00:08:14,440 --> 00:08:17,800 Speaker 1: of the European Single Market. I don't think Shangen is over, 137 00:08:17,880 --> 00:08:20,920 Speaker 1: but I do think it's coming under much greater stress 138 00:08:20,360 --> 00:08:23,240 Speaker 1: of the attacks we I think a lot of good 139 00:08:23,240 --> 00:08:26,560 Speaker 1: work must have been done off Hebdo and off November 140 00:08:26,600 --> 00:08:29,480 Speaker 1: attacks in Paris. I'm sure a lot of good work 141 00:08:29,480 --> 00:08:33,120 Speaker 1: will be done by authorities here. The Cynate would say, 142 00:08:33,160 --> 00:08:37,000 Speaker 1: when's the next attack? How limited will the rights be 143 00:08:37,120 --> 00:08:39,720 Speaker 1: of the people of Belgium and the people of Europe 144 00:08:40,280 --> 00:08:42,800 Speaker 1: as we come to grips with the next next attack? 145 00:08:43,200 --> 00:08:46,720 Speaker 1: What will be the lessening of freedom in Europe? I 146 00:08:46,720 --> 00:08:49,440 Speaker 1: think I think serious tom to be honest, and and 147 00:08:49,480 --> 00:08:53,520 Speaker 1: we've had a very vitriolic debate in Paris around the 148 00:08:53,559 --> 00:08:56,840 Speaker 1: trade offs between security and civil liberties, and I think 149 00:08:56,920 --> 00:09:01,559 Speaker 1: that debate will now go only more manifest in Europe. 150 00:09:01,559 --> 00:09:04,720 Speaker 1: I mean, we hear that officials and the European institutions 151 00:09:04,720 --> 00:09:07,840 Speaker 1: are on total lockdown. They've been told they cannot leave 152 00:09:07,920 --> 00:09:11,880 Speaker 1: their buildings. Um folks that have traveled to Brussels today 153 00:09:11,960 --> 00:09:14,359 Speaker 1: for work and not able to leave because the Eurostar 154 00:09:15,800 --> 00:09:19,160 Speaker 1: is not operational. I think more broadly, this debate will 155 00:09:19,160 --> 00:09:23,040 Speaker 1: permeate life in Brussels. It will certainly have an implication 156 00:09:23,200 --> 00:09:25,719 Speaker 1: for life elsewhere in Europe, and I think that's a 157 00:09:25,760 --> 00:09:28,240 Speaker 1: continuous we do as we do anticipate more of these 158 00:09:28,280 --> 00:09:31,920 Speaker 1: attacks over the course. Yeah, miss thank you so much. 159 00:09:32,000 --> 00:09:33,960 Speaker 1: Ms Rahman with a briefing with you, raise your group 160 00:09:34,000 --> 00:09:35,840 Speaker 1: and this is what you'll hear from us through the 161 00:09:35,840 --> 00:09:38,360 Speaker 1: coming hours. Michael, very quickly, what do you have, Well, 162 00:09:38,440 --> 00:09:39,960 Speaker 1: let's just run you through a little bit of the 163 00:09:39,960 --> 00:09:42,640 Speaker 1: market reaction. Air France down four and a half percent, 164 00:09:42,720 --> 00:09:45,640 Speaker 1: left Hansa off one and a half percent. Starward Hotels 165 00:09:45,640 --> 00:09:48,880 Speaker 1: reports its hotels are on lockdown. So far they have 166 00:09:49,000 --> 00:09:51,679 Speaker 1: not been trading in a pre market, so we will 167 00:09:51,760 --> 00:09:54,360 Speaker 1: keep an eye on that. It was something to speak 168 00:09:54,360 --> 00:09:57,839 Speaker 1: with Richard Ashworth from the United Kingdom from European Parliament 169 00:09:58,080 --> 00:10:01,360 Speaker 1: where he was on lockdown with in UH that parliament 170 00:10:01,400 --> 00:10:06,720 Speaker 1: located in Brussels. We continue our coverage Bloomberg Surveillance, brought 171 00:10:06,760 --> 00:10:09,319 Speaker 1: you by Investco to the day's headlines. Have you searching 172 00:10:09,679 --> 00:10:13,319 Speaker 1: for more investment views? Investco's experts can help find the 173 00:10:13,400 --> 00:10:17,640 Speaker 1: latest thought leadership at the investco blog. Visit investco dot 174 00:10:17,640 --> 00:10:22,920 Speaker 1: com slash us to subscribe again. A muted market reaction, 175 00:10:22,960 --> 00:10:26,000 Speaker 1: as Michael McKee mentioned Sterling with a bit of a 176 00:10:26,000 --> 00:10:29,640 Speaker 1: weight to it. This morning, off the attacks in Brussels. 177 00:10:29,960 --> 00:10:33,480 Speaker 1: The President has been briefed on the attacks that according 178 00:10:33,520 --> 00:10:36,400 Speaker 1: to ABC, the President is in Cuba, where you will 179 00:10:36,440 --> 00:10:41,160 Speaker 1: try to continue that historic trip. Uh today Uh the 180 00:10:41,240 --> 00:10:46,040 Speaker 1: latest uh from Brussels looking at the attacks here Uh, 181 00:10:46,600 --> 00:10:52,480 Speaker 1: just politicians speaking on the number of dead very high. 182 00:10:52,920 --> 00:10:55,440 Speaker 1: Alright at seven ten on Wall Street. This hour of 183 00:10:55,440 --> 00:10:58,240 Speaker 1: surveillance brought you by Volvo Cars White Planes. Visit Volvo 184 00:10:58,320 --> 00:11:01,680 Speaker 1: Cars White Planes dot Com. Michael Barr has the latest 185 00:11:01,679 --> 00:11:03,880 Speaker 1: on the Brussels attack my time, Thank you very much. 186 00:11:03,920 --> 00:11:06,880 Speaker 1: According to Brussels media, for now, up to twenty six 187 00:11:06,920 --> 00:11:10,079 Speaker 1: people are dead after two explosions that ripped through Brussels 188 00:11:10,120 --> 00:11:13,920 Speaker 1: airport and a blast at a downtown subway system. Authorities 189 00:11:13,960 --> 00:11:18,040 Speaker 1: aren't calling the blast terrorist attacks. All airport and subway 190 00:11:18,040 --> 00:11:21,680 Speaker 1: activity has been shut down. It comes after Belgium police 191 00:11:21,760 --> 00:11:25,360 Speaker 1: arrested the main suspect in the Paris attacks, Salah Abdslam. 192 00:11:25,440 --> 00:11:28,640 Speaker 1: In Brussels. President Barack Obama takes on an issue of 193 00:11:28,679 --> 00:11:32,520 Speaker 1: major importance to Cuban Americans and the international community when 194 00:11:32,559 --> 00:11:35,360 Speaker 1: he meets with dissidents today in Nevada, and he will 195 00:11:35,400 --> 00:11:37,920 Speaker 1: also give a speech to Cubans that will air on TV. 196 00:11:38,440 --> 00:11:41,719 Speaker 1: President Obama plans to cast a SPOTLNE on political repression 197 00:11:42,080 --> 00:11:45,600 Speaker 1: and economic misery. Political contest will be held today in 198 00:11:45,640 --> 00:11:49,160 Speaker 1: Arizona and Utah for Democrats and Republicans. Democrats also will 199 00:11:49,160 --> 00:11:52,120 Speaker 1: hold a caucus in Idaho. Global News twenty four hours 200 00:11:52,120 --> 00:11:55,200 Speaker 1: a day. Michael Bar like Tom mcabar, thank you so much. 201 00:11:55,240 --> 00:11:58,480 Speaker 1: We will continue our coverage from Europe of the Brussels 202 00:11:58,559 --> 00:12:06,320 Speaker 1: attacks from New York. This is Bloomberg's surveillance. Bloomberg Surveillance 203 00:12:06,360 --> 00:12:08,640 Speaker 1: brought you by your tri State BMW centers. Visit the 204 00:12:08,679 --> 00:12:10,960 Speaker 1: on line at tri State BMW dot com at BMW. 205 00:12:11,200 --> 00:12:18,600 Speaker 1: They make only one thing, the ultimate driving machine.