The top story, terror returns. Read france has extended a state of emergency and well deploy 10,000 members of the Security Forces after of the still daily tille thea beasas attack killed many. Ois hollande while commitment to fighting terrorism. It is clear we have to do everything in our power to fight display. Manus we have more on this story. Caroline, what is the latest we know . Terrorists war with who want to strike at us at any price, in the words of your president. Caroline even though we dont know whether the truck driver had any accomplices, if he was a a alone wolf, even though there hasnt in claims from the islamic state, the president is qualifying this attack as a terrorist attack. He said the terrorist nature of the event cannot be denied. It does look like a prepared action. We know this big truck, a big white loriy, was rented. It shows there was some preparation of the actions. The leaders around the world are reacting to the attack. The president of burma said, i termsn in the strongest what appears to be a terrorist attack. We stand in solidarity with france. People onousands of the promenade. The english promenade, as we call it. We are in the middle the holiday season. Not only you had the french locals who were on a bank holiday, enjoying me fireworks but a lot of tourists. There could be a lot of children among the dead because you see it was a family event. An id card was found in the truck. It belonged to a french tunisian, 31 years old. There were some and grenades inside the truck to read the investigation will determine whether he was alone. Anna frances state of emergency had to be extended. Caroline during his traditional interview on National Television earlier yesterday, the president had announced the state of emergency that had been implemented since november 13 was to be lifted in the 12 days from now. July 26. After this attack, he said that is not the case anymore. The state of a merchant see is going to be extended. That state of emergency gives special powers to the government so it allows security and Police Forces to put people under house arrest. To carry some errors in terms of investigation. Said 10,000 extra military officers will be deployed again. He is also going to call the reserve soldiers. Those people who have left the army less than five years ago who could be called in order to protect some sites. They will continue to track those who attack france in syria and iraq. It right now, there are 300400 french there. Manus the very timing is significant. Bastille day. Caroline it is a very symbolic time to strike france. People on bank holiday. People enjoy me fireworks. Was on as year, it thursday so many people including me had the day off in order to enjoy the long weekend. A lot of tourists on this waterfront. Beginningf course the of summer. This is also a family event every as the interior minister was saying, there should be a lot of children among the dead. Anna we will continue to monitor the latest of elements and bring you global reaction. Markets. Urn to the we have a few things to talk through. Of course, we have a lot of currency markets. Before that, a week, really Japanese Equities market. A quarter of 1 . The biggest increase since 2009. Dollar yen, 105. Heading for the biggest weekly plunge in 17 years. Manus just think of the action yesterday. Line in our top fx story. Carney having suggested he would do more. Volatility, dropping in the u. S. 50 since reaching a fourmonth high on june 24. Breaking news before we go out. Switcss watchmaker. Swatch. Dropping 5060 . That is the operating profit. They will keep employees and retain their investments. To first world news. Stephen engle has that. chinas economy stabilized in the second quarter. Gdp jumped 6. 7 from a year earlier. Industrial output beat investments. Even as it reaches question about the sustainability of the expansion. Fed officials have laid down the impact of brexit on growth. He expects negative affects. Meantime, he expects a modest impact. The impact to the u. S. Economy will be modest. It is too early to really understand what all the elements of that will be. We will be watching, the u. K. Begins to react to that vote. Stephen the big rally in stocks and bonds has some Money Managers putting up warning signs. They have cautioned that buyers may be ignoring sluggish Economic Growth and the threat of brexit as they look to put their money somewhere amid low interest rates. Global equities have risen since june, 27. On speculation of booted stimulus. Edinburghy will visit in her first appointment outside of london since becoming Prime Minister. To govern onge up behalf of all scots. Shares boosted as much as 52 . A biggest vote of confidence for the biggest tech app of the year. About two thirds of its stock in the u. S. And wants to. Xpand across asia global news, 24 hours a day. Stories ond more top the out. Into theses get markets. What a stunning weaker for these asian markets. The yen move. Really aggressive trading. David i guess it comes down to the prospect of lower rates. It is boosting the lower of rates. Lets have a look at how we are trading. The last time we had a week of gains was in april. 8 on the week. The yen help things along. Today, volumes picked up a little bit. Stocks 65 of rugs on their way up. Seeing vietnam pulled back a little bit. Eight get an eight year high. Up 4 from this time last week. A few other things. China,a dump out of mostly positive, indicating stability. When you look at the credit data, policymakers encouraged banks to lend more which is why we are getting stability. You could argue, it is a negative thing. It has boosted things. Point, closer to 77. We have seen it come down slightly. Gives you a better picture of what happened. Dollar yen, we are seeing this come up slightly. The nikkei 225 down. Let me wrap things up with shares of retailing. About 7 orroughly 8 on the stocks. Have a look at the two day chart. Biggest gain in 18 years. Analysts have come out and said, hold the stock. 32 660. Joining us ind hong kong. Good morning, good to see you. We wake up to news of another terror attack in france. Thoughts this morning. Markets, obviously very depressingly, getting used to waking up to these kind of headlines. Guest yes. It is dreadful. Reaction, if you take the view that the point of terrorism is to strike fear and society and that includes markets. The best way markets can respond is with in different spirit to show, they are above that. One of the great things markets have done, right from that first attack in paris, is to show resilience. Showu really want to support for the principles of liberty, the best way is to ignore them and the market has done that. Manus you are right. It is an interesting progression, every time we get hit with these moments of tragedy, and paris or brussels are wer countries, becoming almost immune . The gravity needs to be so great before Financial Markets react . Try toi would hate to calibrate the horror of these different events. I dont know that you can say this is any worse than other events. To we as a society more used them than six months ago . Yes. Anna thank you very much. Manus secondquarter earnings fargo. Ls at the same time, the bank of England Governor Mark carney and canadian environment minister speak at a Climate Change market in toronto. Anna half an hour later, we get u. S. Retail data. And the minneapolis fed president takes on a discussion with his st. Louis counterpart. China consumers and the economy,econdbiggest stabilize. How sustainable is the lending boom . Welcome back. It is 6 18 in london. Lets go to the bloomberg is this flash. Business flash. The french president has and willa state of the deploy and thousand Security Forces after the the steel ba stille attack. Officials say the driver was killed in the shootout with police. The french president and his interior minister say their country is at war with terrorism. That has all the elements to be called a terrorist attack is once again of an incredible violence. It is clear we have to do everything to fight this terrorist plague. Terroristsar with who want to strike us at any price. It demands mobilization by the forces such as i have seen in nice. Bid for has raised its monsanto. The upped their bid to a total of nearly 55 billion cash. Earlier, it was reported they may strike a deal with another company. Investors are skeptical either suiter has what it takes. Asres in line sword as much 52 . The messaging app owned by a korean neighbor raised 1. 3 billion. It sold about two thirds of its stock and wanted to expand across asia and eventually into america. That is your bloomberg is this flash. Business flash. Chinas measures to stabilize the economy may be paying off. Head of China Economy joins us now. These numbers are looking good. Talk us through some of the key points. Guest we had a good numbers. Gdp, coming on. No hard landing. 6. 7 , a little better than what economists were expecting. It was the consumer to the rescue. The growth came from the consumer. The june numbers reflected that. Factory output, also better than expected. Up in june, 6. 2 . Massiveed by this credit surge. Trillionbit over 1. 6 yuan. Wearing that in that is about 240 billion dollars. Orger than greeces economy chiles. Manus it is a question of what kind of stimulus, isnt it . Guest there are headwinds coming. Wage growth off a little bit. Can consumption keep going . Also, widespread flooding in china. That is affecting areas worth about 20 of chinas output. That could be disruptive, especially for the factories. The big question is debt. Well authorities allow these credit caps to remain. It is pretty much every international organization, warning on chinas debt levels. Anna thank you very much. Simon, give us your thoughts on china at the moment. Do you think the situation has stabilized because of monetary and fiscal support . Simon on the face of it yes. That is taken place, is at a state level rather than private level. I think that remains an issue. Fascinating,t is compared to 11 months ago, a great concern in Financial Markets. Vicks went up to high level. You saw a huge strain on fx reserves. Is0 billion read china devaluing its currency. That is having no negative impacts. Without actually having to do it with reserve. Manus the reserves actually balanced a little bit. One of the things we have is talking about the chinese stock market before 5 billion was knocked off. We are moving to this, overbought. The rsi. I want to take you back to february. This is where the markets have ome sense of a we have these equity markets, a rally built on not the best of foundations. You can make this argument. It is about easy money. Either aing to get cheap currency or low interest rates. Are we overbought right now . Compared to where we were in the earlier part of last year, we went to higher levels. Theret certain we are yet. Should we be worried about it . Yeah. Anna better communication, coming from the chinese. That is something we talked about. Where the communication, certainly the message they thought they were getting across. Simon the message was dreadful last summer. The fact that they had to spend to stop that happening, stop that will till it he, china hates being the cause of financial uncertainty. They go for stability over everything else. Right now, they are doing a allowing of quietly the currency to go and it is not impacting markets. Manus lets recap some of the major points. These dreadful attacks we have bastille day. We are in a war with terrorists. Are the words of the French Interior minister. We are in a war with terrorists who want to strike at any price to the details we have so far, 80 people have been killed overnight. Police have killed the driver. This is a truck which mounted the pavement. Killing up to 80 people in nice. Seventhis is the terrorist attack we have seen in france in the last 18 months, going back to the Charlie Hebdo killing. Caroline connan taking us through some of the comments. Some updates. We will bring you the details as it develops. Get ready for the rio Olympic Games by switching to xfinity x1. Show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. The southis 7 30 in of france. The daybreak edition captures the sentiment in the south of france which is of course carnage. This is a picture where this attack has taken place. What we have seen is a truck mounting the pavement along the boulevard in nice. Ran over people. It was a long trip, a phrase used by officials. One witness said there was carnage on the road. Bodies everywhere. The driver emerged with a gun and started shooting. That is the latest. Anna we are getting an update. 84 dead. 18 critically hurt read coming to us from asp. Seventh terrorist attack in france in 18 months. We have an extended state of emergency. Thousands of reserve troops being called up by hollande. A total of 147 people have lost their lives. Now, the former associate counsel for the u. S. President and expert in counterterrorism. Good to have you on the program. Thank you for joining us on countdown. We dont have a claim of responsibility to read from what you have seen so far, give us your assessment of what we have seen take place. Thank you for having me. It is hard to know exactly what we have going on. Clearly, it appears to be some sort of terrorist attack. Signs, suggest that. Given the explosives or weapons, the trevor getting out and firing, the casualties. Advisor inwere an the bush administration. What kind of advice do you think going to be taking . He has called additional soldiers to patrol. This scaling up of the terror, the very immediate 24 hour reaction. Was the most important advice he has given in this time . Thing, you want to make sure this is not a beginning of a series of attacks. What the president has done is put troops on the border, trying to continue their efforts to protect people or prevent them from getting into the country. Once they are there, to conduct counterterror operations. As they did in brussels. We dont know whether this is somebody from the area or from the outside. Counter radicalization programs, i know that is something you have talked about. What is the latest advice you have in terms of trying to stop the spread of the radicalization that sometimes leads to these events . Fax it is a difficult problem. Eastern nations have struggled with this problem, preventing people from going to the cause of jihad. It is a challenging problem. How you prevent your citizens prey, the surest make them less successful is to go right at them. Make them less attractive an option for people to lean toward. We have had a hard time taking the fight to isis. Isis has had a lot of success recently and that is a challenge. It allows them to recruit and gain more. This is the seventh terrorist attack in 18 months. This is the biggest challenge of all, dealing potentially with individuals in your own country who have been radicalized. Is that the biggest risk for europe . Risk fork it is a big europe. For the United States, too. Anyoesnt mean we dont get information about these folks. It is a risk. For both eu member nations as well as the United States, the freedom which is so beneficial is also one of the challenges these threats posed today. I know donald has commented on the events. How will this feed into the president ial contest . Anytime you have a terrorist attack, whether domestic or abroad, it is going to be of concern to people involved in politics. Inther running for office or office. This race has been about security. Who has the most stable, capable hands to deal with threats that face the u. S. We will see it continue forward. A paneuropean response, specifically in france, do you think europe with its challenges needs a more substantial policy response . I think there is no doubt this is not a problem to be solved by one nation acting alone. Youve got to take a paneuropean, frankly a western United States and allies in europe approach to this problem. , taking theto take fight to the ground against isis problem and iraq, is a the u. S. And european nations have shied away from. A we are going to gain successful victory against isis, it is going to take troops on the ground and that makes a serious effort. Thank you very much. The former associate counsel to the u. S. President , and joining us to discuss these events. We will continue to monitor that bastille day attack and bring updates to you. To some of thew other stories where covering. The global economy. The bank of england, mark carney and his officials have surprised interestciding to cut rates. Manus the Monetary Committee suggested they might act in august instead. Lets bring in simon. Argument is carney suggested he is prepared to, ready to act. People say this is reflective of what was a 2014, when he was unreliableoniker, boyfriend. Markets toward an expectation and did not deliver. Is he an unreliable boyfriend . Perhaps we have read into his comments. If we go back to what he said, he said we have to look at what is going to happen over the next two meetings. I was wrong. He did say, look at them as a package. To me, looking at in retrospect, there is a lot of sense to what he did. Of politicalt. Hange we are not just reacting to what happened over the next few days. Everybody was so negative. And think they will go august . It allows him to keep his powder dry. Anna they are still suggesting they are going to move in august. They said they are pleased with the way the policies have gone down. Not much time had passed. We were working on new Financial Market information. Course of thee last two or three weeks, u. K. Markets have performed as they should. 92 is a great example of this. Markets were cushioned to an extent. You saw the way the ftse worked. 250 has started to come back. You saw things, markets overall have functioned any well. That is the key here. You have seen nothing that would look like major panic. Otherwise, why would you be making such strong signals . That is it is interesting when you look at the performance of dollar sterling. We ended the day up 1. 5 . That momentum continues. 134. Almost post brexit highs. My question to you is this. His 25 basis points priced into this . Have a this momentum cap . Simon i think it will cap. Aat is fantastic, there is degre