Were talking about geopolitics and it was another example of how that are so many cracks in the overall system and these are not necessarily great times. Time to introduce bloombergs editor in chief. Thank you for joining us. David you always been a note of optimism. Matt i will disappointed today. Stephanie i think we need to get to some news first. David we go to our first word, and bonnie quinn. Bonnie heavily armed police raided in apartment today searching for the suspected mastermind of the terrorist attack. When it was over, two people were dead, and seven were arrested it is not known if the elected ringleader was among them. It took place in the suburb of far from theot soccer stadium or one of the attacks took place. Last night, to air france theyts were delayed after received anonymous threats. One from los angeles landed in Salt Lake City the other was diverted to halifax, canada. No threats were found in either flight after searched. Is not hisl says it time. He dropped out of the race for the white house. His Campaign Never really caught on. You can get more on these and other stories 24 hours a day at the new bloomberg. Com. Lets have a look at markets now. A look at futures, were up across the board. For now seeing a solid direction with three extra points on the s p many contracts. Look if you wouldve the European Index because i have them on the bloomberg here. This is an equity index i clicked into europe and you can see red across the board. Losses depending on which index you look at over in europe. Were also seeing the euro come back, its first day gaining in four. Level, myetty low testament to do with the slight gain we are seeing in a production of Market Expectations for a fed freight incident hike september. There was a slight decrease, not that anything really expects that to move, but this is what the futures markets are showing and that may be why you see some of the euro move. You could also be a from Hedge Fund Managers today. From the chief investment officer, they expect even if the euro goes to parity in book comeback win because of the pace will be slow. Here you see apple, Goldman Sachs although it has had apple y, it is now putting them on their conviction buy list which is a bigger conviction. Some people think that smart phone sales will be increased fairly dramatically. That in the Third Quarter they could go 15. 5 . The iphone help which is one of the biggest david producers of smartphones in the world. That is for sure, one of the most profitable. To we want to get back france in check and what happened. According to the prosecutor, seven people were arrested denis inraid of saint connection with the attacks. Brendan, as far as you can tell, are the Police Operations over . Brendan were seeing plenty of signs that they are over. A line of police cars just past behind me and the Forensics Team is on their way in and were seeing the first signs that residents are beginning to open their windows and look out. Of course, they have been told to stay in place since 4 20 this morning. We do know that the apartment block was cleared, two apartments were rated, and the target of this raid which was a massive operation that goes on for several blocks around, the the belgian who is believed to a planned the attacks on friday. He wast yet know that in fact taken, but the cycle for they haveu find already done the apartment. There areey are seven people in detention in the city hall. David take us more broadly as you look around, this is one police operation. Ofthere other evidence others . David, there is evidence of tension everywhere on our way in. After we found out this was happening, and fund of the opera house i saw someone pulled over and out of his car. Paris is tense. Right now the level of shop am seeing in the residence this is a workingclass neighborhood, people leave early. A lot of people caught outside the police cordons. This neighborhood is about 23 from outside the eu. I talked to one manus of the scary thing is they had no idea these guys can disappear in a place like this because they look like me. I talked to another man that said this is a tough neighborhood but i never expected Something Like this. These,ie as we look at these images are stunning. This is obviously a horrific attack. We look at the market, the markets seem that the beat goes on completely resilient. As at the prize you . Does that surprise you . Matt no, what happened is comenments at some point together and deal with it. A deal with the decisively. Investors are processing this. This will happen. Stephanie does it surprise you brought it up, it happened on a friday and investors had three days to sort of digested and think how it there ly infected affect their investment. This happened in the middle of thinkinging back back to september 11, would weve had a different Market Reaction . Matthew i would say this from previous observations in the first decade of the 21stcentury we witnessed bombings in london, and saw 9 11 , investors are aware that this is a reality of the 21st century. Stephanie sad. Matthew sad, but it is a reality. David maybe it is the best defense begin have. Matthew absolutely, there was no reason to indulge this behavior, so why recognize it as anything less than illegitimate . Stephanie in just a few minutes, Francois Hollande will be taking the podium in paris be soon ase you there as his comments begin. I want to take you back the markets. It might not be the terror attacks that are causing rumblings, were hearing more and more top Hedge Fund Managers have been scaling back the u. S. Investments. We sell u. S. Equities tumbled in the last quarter and it has been a response after the market has more than tripled from the 2009 low. I want to bring in someone who covers hedge funds and she joins us now. Ive for the last two days some of the biggest Hedge Fund Managers of the world, and they were almost no new ideas. If anything, they were turning a corner and that fear of missing out mentality everyone was racing to get in his may be right environment to go short again. He is saying there are now more companies out there where he sees opportunity to look for accounting fraud, or to look for simply people overstating their earnings. There are a lot of Hedge Fund Managers that seem to be getting out of long bets on u. S. Equities, at least from what we can tell. Stan druckenmiller has been super negative on the Global Economy for years. Tactically, he has been actively trading along the market. Now that the momentum is out of the game, you were seeing investments based on , which people should invest based on. Matt if you look at the u. S. Right now, we just got some manufacturing data that was very positive that suggested that the 2016 economy is going to be more robust in the u. S. Than it was in 2015. If you look at europe and asia you still cec or Monetary Policy. Overall, the is a constructive one. That means it has to be good for the economy and earnings. The interesting things is people like Stan Druckenmiller have said they may not want to go along because the earning situation just does not look that good for them going forward. If you look at the equity risk 500 earningss p yield minus the 10 year yield you can see that it has arisen here which would of made sense because this in blue is the 10 year yield. When that comes back, and right now about 2. 3, the equity risk premium drops and then stays low going forward. Not enough is just value, maybe it is just not worth it for big investors to get back in. We saw a big catch Fund Managers billiony about 200 debt Equity Holdings in the last quarter and only about 80 billion of that 120 billion of that is explained in a drop of stock prices. Druckenmiller, we have heard over and over that specifically macro is harder than ever. Not talking john griffin, were talking macro investors. Those who have to focus on the Global Economy. Those are the guys and we saying this information and uncertainty is just too much. We had cliff on who said that we were up in the 90th percentile, which means there may be a correction. Matthew i would suggest one thing, if you go back and look at some of the people were been consistently accurate and theyre forecasting like zaslow for rainy, back in 2008 he said this is probably the best time to buy stocks. He reiterated that in 2009, and he still is bullish. Stephanie Francois Hollande is speaking right now at an assembly of the mayors in paris. Hollande iscois it president Francois Hollande the Security Forces that have launched the operation , they knew the danger. They underestimated once again the violence that they would be met with. Despite that, they fought until the end of the mission. A number of them sustained injuries. Thinking also of the Police Officers and doctors who went to the bataclan in terrifying conditions, and once again they neutralized them. Have suchproud to quality of Police Forces to protect our citizens. [applause] president hollande these actions confirm to us once again that we are at war. Whichagainst a terrorism itself has decided to launch war against us. Organization of isil has an army, financial resources, oil, and it can occupy territory. Article last islamists, theyve committed massacres and it wants to commit murders here and it has done so. During the night of the 13th of november, at least 129 persons were killed and lost their lives. Our thoughts are with them, with who cowardlyomen assassinated injured where thinking about their families who have been put in pain and grief. Saddened me,as but these concern all the french wherever they live in the french territory. It is the entire country that has been attacked. For the simple reason, and five years and is pursuing to eradicate terrorism and for this simple reason of what we are. Terrorists aim was to target the , which hasnce itself happened throughout the generations. The liberty that france has, the universal rights that it beends, this is what has attacked during the night of the 13th of november. There are barbaric people in their blind violence have targeted the diversity of the french people irrespective of religion, itolor, was the france itself that was the target. , simply speaking, and the life. Immense, thes anger is just as immense. It is really a sentiment of compassion towards the victims following the attacks. At the same time, a demand for action. David it strikes me, looking at him, that he is the french flag and the european flag and it seems to me symbolic. This is a war on france, it is also to some extent a war on europe on the Common Market and the breakdown of borders. This is a challenge not just to france. Matthew it is a very comforting picture in the sense that all of the people who are of diverse backgrounds that are in that picture are united. Investor, there is a lot of confidence that comes out of it. Try to remember where we were after 9 11, there was just a very collective coherence response that was very positive. That really got across the financial markets, it was a great time to be investing, actually. We lost our sound from Francois Hollande and are working on getting it back. We will return to his remarks afterwards. At this is i dont want is a good moment, but we can see in the 17 countries unable to come together over the last five years. But as it relates to security, their fears, what could this mean in terms of the refugee crisis . Will they come together, united, and pushing others out . Matthew hardly. Youre seeing on an old finally having a common interest. You talk about inequality, it does not matter where you are coming from, Everyone Wants security at this point. This is actually a benefit that was not in the political landscape. By the way, as a reminder, remer where we were seven or eight months ago with greece . David i was just thinking, grexit seems a long time ago now. Yield on aok at the greek 10 year government bond. It actually is yielding less than 7 . He noted was in july . 19 . That is been a brady a hell of a return on investment. Stephanie if you are an investor, you are seeing a unified front just a week ago when guys were up and france was in a great place to do business but you see him united with other countries in europe as a positive, but you have to then go to the streets. Unemployment is still what it is. Comingseeing more people out of school in places like spain, and portugal, and those are places where tourism is massive. Following some and like this, tourism could get hit. But the economy is not standing still. The Monetary Policy that the ecb succeeding,is albeit slower than anyone would like. The easier Monetary Policy that appear seeing is going to have a positive impact, the economy will keep growing. David the president to candidates are paying attention as well. Public and president ial candidate jeb bush sat down with the anchors from all due respect , and John Heilemann is joining us now. John, bush spoke quite a bit about syria, was that he have to say . Morning, he is obviously very critical of president obama. He says president obama has failed to lead on this matter. He took great issue the president s tone when he spoke on monday. He is doing a speech today at the citadel where he is trying to outline his posture and layouts Foreign Affairs philosophy and how to rebuild the American Military which he thinks has been allowed to atrophy to a dangerous degree. Those are all relatively mainstream republican positions but he will lay them out today. The issue that got a lot of attention yesterday was a series of questions that i talked to governor bush about related to the question now, very politically polarizing, very partisan, and very rancorous over the question of Syrian Refugees and whether they should be allowed to and to the United States and posture should be. Lets take a look to some of that right now. We have systems in place, if there is any kind of concern we should not allow people in. I dont think we should eliminate our support for refugees, it has been a noble area of our countries. You dont want to ban muslim refugees . I dont, the answer is not to ban people, but resolve the problem in syria. John that was governor bush talking about the issue, i unfortunately asked the question of him as we started that conversation in a slightly confused way. I talked about the governors, 27 they want toay keep Syrian Refugees out of the state and a new senator cruz who is putting forward legislation at the federal level to ban refugees from coming into the United States. Syrian muslim refugees, i believe, specifically. Later in the day, he clarified his posture which is that does , but he to ban refugees does understand what the governors are coming from and is in the place that were speaker ryan is which is advocating for a positive Syrian Refugees to make sure that the u. S. Vetting system is competent to do with the influx of refugees before we let anymore in. Stephanie obviously, bobby jindal is out of the race as we mentioned earlier. Yet a chance to talk about the rivals he still faces. Donald trump has been all over the map on the question of isis. He does not want to create a strategy, it is a good example of why he cant be trusted. Probably more consistent, im less bellicose. Itry not to use language just think i could be a good commander in chief. You would not put them in the same category as trump, or carson . On putting anyone in any category. Message, thatt donald trump cannot be trusted, many people were expecting jeb to say that for the last six weeks but he has not, why . Pretty half onen trump over the last few weeks, but this issue is ramping up his rhetoric for sure. We see trump again defying all predictions and expectations on the part of the establishment that he would fade away and seems to be now gathering strength once again. Ben carson may be starting to fade in terms of the public polling, the entire it establishment or the grownup , they all expect that in the wake of these attacks in paris and the International Focus that they will somehow benefit from the fact that they as they see themselves the grownups and hopefully the world will according to them. It will try to make a more aggressive argument that this moment calls for their brand of leadership while donald trump, most vocally, is basically saying no, this is a moment for toughness and resolution. Hed blow the crap uses a more colorful expletive, that is his tone right now in that message seems to be resonating as much if not more stephanie the word diplomacy . The need for diplomacy is not isnt important here . John im sorry, i dont know that in his lexicon, i dont know if he knows that word. We were just talking about paris, and paris is a place that is welcomed theorically refugees, United States has einstein, the greatest achievements in our technology, our have come from immigrants. What is so disturbing, maybe unsettling, is that the rhetoric is obscuring the fact that we benefited more than maybe any other country from refugees, if you like, and immigrants. Part of the not discussion, and it should be. David John Heilemann, thank you very much for joining us this morning. You can catch him and Mark Halperin with all due respect on weekdays at 5 00 eastern. Next, why wall street and Law Enforcement are struggling to shut it down next on bloomberg