Is getting its money. Tracking wall street. First this afternoon, the latest developments in one of todays terror attacks in downtown and yesterdays terror attack in downtown ottawa. Identified as a nativeborn canadian with a history of drug and robbery charges. He shot and killed a soldier at the citys war memorial and then headed to the Parliament Building up ross the street where he was killed by building security. Today, canadian lawmakers honor the security official who fatally shot the victim. He was greeted with a standing ovation when todays session began. The 58yearold grandfather has been on the job since 2006. He is a former member of the Royal Canadian mounted police. Greg, what is the latest with the Police Investigation . As you mentioned, the chief of Ottawa Police have said there was just one shooter, the one that was killed yesterday. They arent looking for other suspects at this point. The Royal Canadian mounted police will give a brief in 90 minutes and may give more details. The police in the area have taken away much of the security perimeter that was set up late into last night as they start winding down their investigation. But there is still a lot of security in downtown ottawa compared to the past, especially on Parliament Hill. You were on Parliament Hill today. What was the mood . Our tension still high . Are they tried to return to a sense of normalcy at this point . Clear lawmakers made a point that they Want Parliament to open at 10 00 a. M. As it normally does on a weekday. An opposition lawmaker made a point of walking to work to show that it is business as usual. But when you look around, on the front lawn of our limit where people normally throw a frisbee around or just look at the flowers, today, there are heavily armed police on scene, extra guards, and they sealed off all the gate except for one or two. That is how i got up to the hill today. I noticed a sense of unity today in parliament. It is usually a combative atmosphere. But the the Stephen Harper made a point of crossing the aisle and reading the opposition leader. Right. Combativeosed to be but today, all the leaders were looking at each other and say we are all canadians and had to show unity and the country has to be resilient against threats such as we saw yesterday. Getting a sense that the Prime Minister and the other leaders in government believe that this attack yesterday and the attack a couple of days prior when another Police Official was run over by a they believe this is an offshoot of the Prime Ministers decision to allow canada to line with western allies in the fight against isil . I have interviewed a few Security Experts and they said we dont quite he no enough yet to say definitively quite know enough yet to say definitively. Said when heically authorized airstrikes that the isil group was a threat to canadians in this country. Bloombergs greg quinn joining us on the phone from ottawa. Thank you so much. Lets get you to the other top stories. Ae u. S. Secret service says 23yearold maryland man who climbed over the white house fence last night has been charged with felony for assaulting a police dog and making threats. The man was swiftly apprehended on the north lawn by Uniformed Secret Service agents and their dogs. He was reportedly unarmed when he was arrested. President obama was at the white house at the time of that incident. The number of people applying for u. S. Unemployment benefits rose last week. Applications rose 17,000 to a seasonally adjusted 83,000. It had dropped to a 14year low the previous week. Along with jobs, and other topic of concern is income inequality. Earlier, Mohamed Elerian told betty liu it has become clear who is getting the benefits. Income gains in recent years have all gone to the rich. The gains in wealth have all gone to the rich. That is indisputable. That is indisputable. It is not just in the u. S. It is in many countries. While income inequality between countries have gone down, income inequality within countries have gone up. He said congress cant run it in what he called low gear. Caterpillar shares climb to the most in eight months after topping prompt topping profit estimates for the third quarter. Caterpillar said 2015 sales will be flat to slightly up. It sees potential for higher investment in infrastructure in the u. S. , india, and turkey. General motors said thirdquarter profits be estimates as expenses declined and customers bought the cups and Sport Utility vehicles. Gms recall expenses are substantially behind us. Since we started this recall and moved through it, the Sales Results would indicate that our new products continue to resonate with customers. We continue through our dealers and the efforts that we are taking to see improved sales. So on the strength of our new products, we have not seen a Material Impact on our sales thus far. Exceeded analyst estimates in the dash in six of the last nine quarters. Treasuries falling after better than forecast or print earnings. Lets show you how the equity markets are doing at this hour. The s p 500 is up 1. 6 . The Dow Jones Industrial average is now up 1. 6 as well. And the nasdaq composite index on the rise as well, up nearly 2 at 4466. Stocks right now at the highs of todays session. That is a look at the top stories we are following on this thursday. There was much focus on the selloff in stocks. It could be the sign of a greater risk. No details. Lisa, the sudden surge in volatility in bonds, what does that say about what people are holding . People are concerned that there is a oneway that where the bull are all positioned in the same ways. And possibly for different reasons. There is a complete russian to treasuries last week. People think there were a lot of hedge funds that had leveraged positions that they had to unwind quickly. But one reason why they have so many short positions on aresuries is because they offsetting the rate risk on a growing volume of less liquid that, whether it is mortgage dread, corporate bonds, that they can sell as easily in a downturn. Did regulators expect this or dated catch them by surprise . There is a sense they did not expect this degree of volatility. A trigger was uncertain at best. Sure, oil prices were dropping. Yes, there was concern about the global slowdown. Yes, there is possibly ebola concerns although there is no indication how that would trickle into the economy. But there was no one thing that should have triggered this mess swing. Your story on bloomberg. Com, you spoke to somebody a blackrock you said get used to this. People are saying, look, the fed is normalizing. They are backing away or preparing to anyway they are slowing their bond purchases. Expect volatility going forward. And is what it used to be there are still a lot of people who are positioned in the same oneway that oneway bet. As shortiskier assets on rates. Is this what people can expect from now till the end of the year . I think that the question is will there be some kind of more clear directionality with Economic Data coming out of the u. S. , either being more consistently positive or some titlist setting people back to safe haven assets. Europes Economic News has not been good. Absolutely. The question is how much will that actually trickle into the u. S. Economy . Concerned withy oil prices declining that it would really affect the u. S. Economy because of the increase in oil and energy companies. What the question then role, if any, do banks have with this . Can you attribute some of this to what the banks are doing . Can you attribute this to doddfrank in the vocal role the folklore rule volcker rule . Cycles, banks could use their own money to absorb a bad sale, not trickle buffer somemarket, of the outflows that we saw from some of the funds. People who are you who are holding a mutual fund, they are not looking at their holding say, oh, my gosh, it just lunch. I better take my money out. The concerned is that, if people see the mass decline or a significant to drop in the value of their holdings, they will be prodded to take out more. The question is could this spur a cycle. They are not holding as many treasuries. Dealers held treasuries to offset holdings of are scared at. Even if treasuries dont s of riskier debt. On the other side, people are saying there is too much liquidity. I was just going to say, if banks are doing what seems to be the right thing and reducing the get of the balance sheet, things together or there may be more regulation than you think is possible right now they are doing the right thing but it is causing all this craziness . They may be reducing riskier assets, which is a positive, but perhaps there is not a system in place to replace them. It is a question of is there a gap that hasnt been filled yet . Lisa, thanks so much. Coming up, a drop in u. S. Jobless claims in the past month. We will look at what is driving a strengthening job market and the impact that is having in the overall u. S. Economy. Americans are filing for unemployment benefits. The Labor Department shows that jobless claims dropped to a 14month low. Lindsay, welcome back to bottom line. You pointed out that jobless claims have clawed back 80 of last weeks drop. Why have claims been so volatile . They are naturally volatile. To this degree . Yes. Earlier in the year, we saw this kind of decline and then going back the following week. It is much easier to look at the fourweek moving average which itself trended down since the start of the year. If the labor market is showing strength, why are American Consumers still under so much pressure . Thee cannot extrapolate fact that the overall market is doing better because the is because those were currently employed are concerned about losing their jobs. Because the vast majority of employment has been centered around parttime and lowwage hiring, we are not seeing the upward momentum in wages and that is where we see the downward pressure and consumer willingness and ability to go to the marketplace and spend on goods and services. We have had various economists talking about the fundamentals. The fundamentals in the u. S. Are showing strength but not so much overseas. Europe continues to have problems. Our you concerned that could find its way over here . Certainly. When we look at our reliance on International Consumers demand for u. S. Made goods, if International Demand is slowing, that the pressure on u. S. Exports. We continue to see a further loss of momentum to the end of the year. There is nothing we can do about what is going on over there. How can the u. S. Is a late itself . We are insulated. We minimally rely on it sports. It is a minimal contributor to growth. When the Global Economy is expanding, we dont necessarily benefit as much. On the flipside, in todays world, as the Global Economy seems to be contracting, we are somewhat insulated already. The biggest threat to the u. S. Economy, is it the performance of the housing economy . It is the inability to create jobs and get the consumer out have an increased ability to spend on goods and services. Right now, the investment cycle is very much a stunted. At this point in the recovery with Interest Rates at record lows, typically businesses take those extra funds, grow their businesses, a crease hiring, draw down the pool of available see a slowwe pressure. But we have not seen that cycle take old. Take old. You are not talking about people on the minimum wage or see ar people should bump up in the minimum wage. Or people off of public assistance because they are earning a winning a living wage. Were talking about highpaying construction jobs, highpaying technology jobs. The we have created from end of the recession have been parttime. 16 have been temporary. 45 have been lowwage. This is not indicative of that highways Career Development recover you expect in the labor market so that we can talk about in spending power and consumption. The statistics you just gave give us pause. Now with the an appointment rate below 6 , the question should not see the question should be what kind of jobs are we creating. Are talking about, yes, we see that 5. 9 percent, but there is the underemployment rate as well and there is that legion of people out there who want fulltime work but cant find it. That is exactly right. A set of just looking at the quantity of jobs, first of all we have to look at the quality of jobs. We see that unemployment is down 6 , we have to count those workers who are parttime for economic reasons. Those who would want fulltime employment. Also discouraged workers. It is hard to get the Unemployment Rate down to zero if nobody is looking for a job. We have about 8 million americans who say conditions are so bad right now i am not quick to bother looking for work. If we include them in the statistic, we are talking about a 12 Unemployment Rate. The fed meets next week. Wall street wants to get an indication on how long policymakers will keep Interest Rates near zero. Will continued improvement in the job market forced the feds hand . Yes, but we are not there yet. Next week is very likely to be an exciting meeting given their reasons given the volatility of the market. Back in september, the fed indicated that quantitative easing would end this month in october. Do you see anything that would prompt the fed to alter its course . I do not. Of communityumber members who have lost faith. They are increasingly concerned that it will create burdens and barriers. On the flipside, when it is time policy,e accommodative i do see the fed ending the program and october. Ending the program in october. Lindsay, it is good to see you. Up next, the latest on the rally in the markets. Us. With on 26are coming up minutes past the hour. That means Bloomberg Television is on the markets. Lets give you a sense of what is happening right now. Stocks are hovering near the highs of the session. The s p is up three quarters of 1 . The dow jones adding close to 300 points. The nasdaq up a little over 2 . Spot which is1961 a fraction shy of the 1961 high of the session. Having its best week since january 4, 2013. We are also watching other stocks as well. They include what is happening in the world of yelp. Yelp stock currently off by about extreme percent. Shares are plunging after the quarter forecast sales fell short of estimates. An increase from a year ago. Stay right there. Bottomline will be back in a few minutes. The secondback to halfhour of bottom line on Bloomberg Television. Thank you for staying with us. In the fight against the islamic state, the Obama Administration has its eyes on another target, a terror group. Peter cook has more details on where the effort stands. Is any progress being made this morning . Obamas Administration Says some progress is being made targeting finances, but you can see isil passes Revenue Streams are unique and diverse and it is the best funded nonstate terrorist the u. S. Has ever had to run. He spoke today in a speech in washington. Where isil is getting the cash right now and the steps being taken to hit the Revenue Streams. 1 billion at 1 million a day for oil production. Another 20 million from kidnapping ransoms this year. Other criminal activity like extortion. Isil is still getting some money from wealthy donors outside. Targeting airstrikes on isil Oil Facilities have taken some toll on oil refineries. Crisis am point, there is someone in that chain of involved in the legitimate economy. They have a bank account. Their trucks are insured. They may have licensing on their facilities. Toolsis someone who our can influence. It is still earning money it will take time. There is no silver bullet. It will take patience on the part of a lot of folks out there who engage in the fight. What are some other steps the government is taking to hit isil . Others to stop paying those ransoms for kidnapping. We have had are not a lot of other countries not so ironclad in their opposition. Another could be designated as the terrorist finance chief in targeting them for some sort of limitation of finances. He also talks about trying to limit the access to banks as well. Still getting access to banks in this territory. All right. Peter cook, thank you. Countdown to the november fourth midterm elections in the United States is underway. The biggest question will be whether or not republicans will be able to gain control of the senate. At a globallyst Political Research and Consulting Firm joins me from washington. Welcome and thank you for your time. Before we get into specifics, the group instituted a no tossup role in its election coverage in this cycle. Why . Clients aed to offer potential map of how democrats could retain control of the senate, which is a quite clearly counter consensus call. The map we laid out is not necessarily that which will happen. I could layout two or three other possible scenarios. These will all be so tight in simply saying it is a tossup, i do not know how much value that adds. Seeave decided to stand and how much races follow the other. Republicans will make gains that will narrow the democrat majority. Which will tilt the scales . Lets clearly, democrats will lose seats. That is a nobrainer from the getgo. Our eye on 11 seats. Eight are democrat held. Three are republican held. We think democrats will lose alaska. A tough campaign out there to seek a second term against a candidate. Blican the point we raise for our