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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: This is a Bloomberg Business Flash and I'm camer in Moscow.

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Speaker 1: There's updates brought to you by Sector spider e t

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Speaker 1: F S. Why buy a single stock when you can

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Speaker 1: invest in the entire sector becaus its sector sp d

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Speaker 1: r s dot com are called six sector et F.

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Speaker 1: European stocks falling, while German government bonds rise with gold

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Speaker 1: and the yen after explosions rocked a Brussels airport departure

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Speaker 1: hall and a downtown subway station. Travel and leisure shares

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Speaker 1: are leading the slide. Futures on the s n P

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Speaker 1: five are also lower. We checked the markets every fifteen

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Speaker 1: minutes throughout the trading day on Bloomberg SNP Emni futures

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Speaker 1: are down eight points down, EUNI futures down forty six

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Speaker 1: and NAS documni futures down twenty. The decks in Germany's

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Speaker 1: down three tenths per cent, CAC in Paris down almost

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Speaker 1: seven tenths percent, FT one hundred down half percent ten,

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Speaker 1: Your treasury up five thirty seconds, the yield one pot

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Speaker 1: eight nine per cent to eel. Then the two year

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Speaker 1: point eight four percent Nimex crude oil down eight tenths

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Speaker 1: per cent or thirty two cents to forty one twenty one.

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Speaker 1: A barrel Comex school is up nine tenths per cent

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Speaker 1: or eleven dollars twenty cents at twelve forty announced, the

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Speaker 1: euro a dollar twelve twenty eight, the British founded dollar

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Speaker 1: forty six, and a yen one eleven point six six.

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Speaker 1: And that's a Bloomberg business flash, Tom and Mike Karen,

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Speaker 1: thanks so much. What advantages of Bloomberg surveillance is we

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Speaker 1: have people that do the heavy lifting for us. Kasia

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Speaker 1: Klemasinska has done the heavy listing for me and Michael

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Speaker 1: McKee this morning. She is of Bloomberg first word and

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Speaker 1: summarizes out of Washington and her news bureau in Washington.

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Speaker 1: The response of three presidential candidates. Mr Cruz says he

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Speaker 1: will defeat radical Islamic terrorism if elected. Mr Ks of

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Speaker 1: Ohio says, we must strengthen our alliances, redouble our efforts

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Speaker 1: with our allies to identify, rout out and destroy the

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Speaker 1: perpetrators of such acts of evil. And Mr Trump, has

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Speaker 1: reported earlier says we should close our borders in response

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Speaker 1: to terror. Robert Muga with US with the Garape Institute.

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Speaker 1: He is hugely qualified on violence across all of our

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Speaker 1: global urban areas, including terrorism. Dr Mugga, if you were

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Speaker 1: to advise one of these three candidates with three very

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Speaker 1: different approaches, what would be your prescription for the new

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Speaker 1: protection of society against suicide terrorism? I think there are

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Speaker 1: a number of things I advise U, and the first

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Speaker 1: is cautme UH and data evidence to have a clear

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Speaker 1: headed understanding of what's happened before we barely in because

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Speaker 1: I think sort of bull horn style approaches are likely

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Speaker 1: to make the problem worse and amplify the risk and

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Speaker 1: perhaps reduce it. But I think there's a three or

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Speaker 1: four things that are that that that that might apply here.

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Speaker 1: And the first is that if you're you're you're going

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Speaker 1: to drect extremist radicalist Islamic or other religious forms extremist violence,

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Speaker 1: you've got to start with your communities, in your neighborhoods UM.

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Speaker 1: And that means building resilience in your communities UM, working

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Speaker 1: with local groups because they're there to stay, UM to

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Speaker 1: to try to address the remote radicalizations taking place both

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Speaker 1: online and off. The second thing you've got to do

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Speaker 1: is you've really got to show up your police community

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Speaker 1: relations in many of these areas, in Paris or Brussels,

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Speaker 1: or even in London and frankly in the States, where

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Speaker 1: you've seen the kind of extremist violence emerging is in

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Speaker 1: those areas where the police have very little influenced where

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Speaker 1: communities are hostspiler and pagonistic to the police, and more

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Speaker 1: frankly as a lack of communication, understanding and awareness between

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Speaker 1: these groups. And you can't do proper policing and intelligence

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Speaker 1: but policing unless you start getting into the communities. The

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Speaker 1: third thing you gotta do, I think is have much

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Speaker 1: better information sharing and intelligence sharing across borders. I think

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Speaker 1: Europe has not done the greatest job when it comes

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Speaker 1: to sharing information. They're trying, they're trying to get their

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Speaker 1: act together, but they're not aware of right now se

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Speaker 1: were in the midst of a long term campaign, a

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Speaker 1: guerrilla style campaign. These are not isolated incidents that we're

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Speaker 1: seeing in brust some Paris, but I think are part

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Speaker 1: of a distributed network and we have to get much

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Speaker 1: sharper and smarter both sharing our intelligence. And the final

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Speaker 1: thing i'd say, apart from investing obviously in development and

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Speaker 1: trying to reduce inequality, is don't throw up the borders

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Speaker 1: so quickly. I think part of this effort of this

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Speaker 1: ISIS and other groups UM is ostensibly to separate and

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Speaker 1: divide communities, to drive people indoors and to create others

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Speaker 1: and reduced communication not just domestically but internationally. And I

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Speaker 1: think if you start shutting down borders, then we've lost.

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Speaker 1: We have the Europeans have an issue that we don't

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Speaker 1: have in regard to the borders, and that is the

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Speaker 1: massive number of your refugees coming from the Middle East.

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Speaker 1: Without shutting the borders, how do they protect themselves. I

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Speaker 1: think that we have to get a little bit. We

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Speaker 1: have to obviously invest much more in screaming asylum clayments.

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Speaker 1: We have to get much better at addressing the warning

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Speaker 1: signs before and during and after asylum seekers safe haven

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Speaker 1: in in community across Europe. UM. I think we have

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Speaker 1: to avoid the hysteria, but we have to sort of

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Speaker 1: be rational about how we engaged this this issue UM.

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Speaker 1: The fact of the matter is a very small number

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Speaker 1: of those who are involved in both Paris and or

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Speaker 1: the Brussels bombings were in fact asylum claimants, and our

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Speaker 1: refugees many were second and third generation Europeans. And I

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Speaker 1: think you could almost say the same for the potential

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Speaker 1: risk in parts of North America that is less likely

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Speaker 1: to come from people seeking asylum ninety nine percent of

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Speaker 1: whom are legitimate asylum claimants, and much more likely to

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Speaker 1: come from let's say, longer term immigrants, second third generation

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Speaker 1: who feel somehow they haven't benefited from the dividends of

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Speaker 1: the American dream. Now, the United States UM has not

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Speaker 1: had a major terror attacks since nine eleven. Is there

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Speaker 1: something that the US is doing that the rest of

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Speaker 1: the world is not, or have we just been lucky?

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Speaker 1: I think that, you know, the US learned a very

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Speaker 1: painful lesson from from nine eleven, and there was a

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Speaker 1: great effort to try to develop much more coordinated capabilities

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Speaker 1: across different uh you know, sectors, UM and the departments.

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Speaker 1: And I think that the security and others have done

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Speaker 1: quite an effort to try to integrate and either the

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Speaker 1: local level, You've got dozens and dozens of these data

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Speaker 1: fusion centers have been established at the county and even

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Speaker 1: city level intended to try to you know, enhance the

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Speaker 1: intelligence sharing and the response capability. So I do think

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Speaker 1: that the United States has done, um, you know, a

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Speaker 1: lot of their homework to try to address some of

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Speaker 1: these threats. Does not to say at all that there

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Speaker 1: isn't a risk, because the risk is still there. Um.

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Speaker 1: The other issue that you already mentioned is the border question.

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Speaker 1: The United States has only two borders, um, through which

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Speaker 1: there is enormous blow of people and products. But it's

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Speaker 1: not the same situation in the Europe where you've got

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Speaker 1: multiple neighbors with very complex and I would say deeply

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Speaker 1: rooted migrant population to have yet to integrate effectively. UM.

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Speaker 1: So I think that you know, the issue borders is

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Speaker 1: a is a major challenge for Europe that you know,

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Speaker 1: baby thinking negotiate very carefully. But I think the risk

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Speaker 1: is throwing back up the borders is that you deepen

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Speaker 1: the divisions and you create more problems um. And you

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Speaker 1: essentially fulfill the wishes of ices, which is to create

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Speaker 1: a divided, separated, polarized Europe. Within the polarized Europe is

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Speaker 1: I guess the all of the fear of a breakdown

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Speaker 1: and post World War two institutions. That's really to me

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Speaker 1: not a goal of what we've observed in Paris and Belgium.

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Speaker 1: What is the goal of ISIS. I think the goal

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Speaker 1: is uh. But within Europe, is there a goal within

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Speaker 1: Europe with amongst the ISIS groups from Asian government among

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Speaker 1: the ISIS groups, I think the goal is to I mean,

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Speaker 1: the stated goal is to get Europe and the United

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Speaker 1: States coalition allies out of some of these countries, UH,

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Speaker 1: you know in which in which wars have been waged

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Speaker 1: for the the last decades. UM. So the stated goal, I

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Speaker 1: think is is about removing initially United States and its

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Speaker 1: allies from Syria, from Iraq, from then and from other

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Speaker 1: countries where they're wasting conflict. The secondary goal, I think

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Speaker 1: perhaps even it's aligned with the first, is to create

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Speaker 1: a caliphate UM that stands particular territory over which you know,

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Speaker 1: ISIS were utiliates with how dominion UM. And I think

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Speaker 1: that's what we're seeing in this large expanse of iracking

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Speaker 1: and hard to Syria UM. The third goal, I think

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Speaker 1: is it perhaps about challenging UM the dominance that we're

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Speaker 1: you know, Europe and in North America over the years

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Speaker 1: at its heart, and this is where I think the

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Speaker 1: radicalization of European to self radicalization. Auto radicalization comes into

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Speaker 1: bold what people have felt disenfranchised or or or somehow

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Speaker 1: unintegrated in the in the broader project. Um. And so

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Speaker 1: there's a kind of vindictive striking back at the heart

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Speaker 1: of Europe. UM. But I think I think those are

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Speaker 1: the stated goals. The United States canceled a court hearing

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Speaker 1: today in which Apple and the government were to face

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Speaker 1: off over unlocking the secrets of a terrorist cell phone.

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Speaker 1: What is the line? Is it easy enough to define

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Speaker 1: for government officials in terms of civil liberties and protection.

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Speaker 1: It's a very difficult line, and I think many companies

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Speaker 1: are are are themselves struggling to determine where that line lies. Um.

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Speaker 1: You know obviously that the question here is a balancing

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Speaker 1: of public safety against individual privacy. Companies like Apple, Google, Facebook,

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Speaker 1: Twitter and others are all deeply sensitive about the risks

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Speaker 1: to the integrity of customer data, but also the slippery slope. UM.

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Speaker 1: And I think what's interesting means, you know, this this

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Speaker 1: dispute or this court case that's over over over the phone, um,

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Speaker 1: in the standard deal case. I think it's presaging a

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Speaker 1: much more global struggle right now between companies and states

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Speaker 1: over where to draw that line. But in their defense,

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Speaker 1: companies like Google, Facebook, and Twitter all started the last

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Speaker 1: couple of years to take much more proactive efforts to

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Speaker 1: try to, for example, scrape out ice pro lices, websites

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Speaker 1: or Facebook. Twitter itself is taken down a hundred thousand

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Speaker 1: plus undy Twitter handles. Um. You know, Google has introduced

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Speaker 1: new AdWords programs to to try to have pro and

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Speaker 1: positive counter narratives, so you'll see companies I think also

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Speaker 1: stree to be more proactive. Robert greatly appreciate this. He

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Speaker 1: is from Brazil this morning from Rio, and I really

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Speaker 1: appreciate your efforts to be with us ear Grappi institutes.

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Speaker 1: Robert uh all have much more coverage here. Much to

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Speaker 1: talk about a little bit of market coverage as well

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Speaker 1: against sterling weaker this morning, Michael McKee and Tom Keane

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Speaker 1: with all of Bloomberg worldwide. This is Bloomberg surveillance