100 people on the tourist avenue las ramblas. Good morning on this very sad friday lets keep you up to date with the latest coming out of spain counter tr rerror forces are investigating multiple attacks around barcelona six civilians and one Police Officer were hurt in cambrils. Attackers ran them over in a car before police shot dead five suspects in the northeastern spanish city police say it was related to the earlier attack in barcelona and that the five attackers were wearing fake explosive belts when they were killed. In Barcelona Police arrested a third man in connect shun with a terrorist attack that killed 13 people and injured over 100 many of them seriously a van crashed into pedestrians in las ramblas the driver of the van sped through approximately 500 meters of a wide walkway in one of the busiest tourist destinations in the city isis claimed responsibility for the attack, but produced no evidence to support the claim. And there appeared to have been further attacks in the works. Police in alcanar say an explosion in a home there happened as people were making bombs. One person died, six more were injured in the blast the explosive workshop outside of barcelona was connected to the attacks elsewhere in spain the spanish Prime Minister offered his condolences to the victims and their families he said police would reinforce security translator i want to express the solidarity of the whole of spain to the city of barcelona today hit by jihadi terrorism. In places like madrid, nice, brussels, berlin or london have experienced the same horror and uncertainty that today the people of barcelona have suffered i want to take you to the markets and draw your attention to the travel and leisure sector thats the worst performing Sector Airlines are bearing the brunt of the losses. Ing off by 2. 5 . Akor falling by 1. 6 easyjet down by 2. 3 barcelona is one of the most popular tourist destinations in europe its the height of the tourism season, the summer traveling season in europe want to get more analysis on the latest tr ro efst terror attackn appreciate you taking the time out of your holiday. Im afraid to say i think the answer to my question is no. My question is can this be prevented . These low cost attacks with a van mowing down people no, i dont think so. But this case is much more different than others. It looks like the attack in barcelona may have been a plan b, because police and Security Services were on to that large cell the explosion that you mentioned that happened the day before was probably looking at the canisters to possibly make a car bomb and the fact that there were other people involved as well, makes it much more closer to the attacks in paris and brussels especially brussels when the terrorists were thinking that the police were closing in on them and they had to change targets and go quickly to target the airport and subway for me its totally different than nice and berlin, its a much more sophisticated plot involving many people. Its extremely serious and extremely concerning what do you think plan a would have been . Do you think the location would have been an airport do we have anymore information about what the targeted location could have been . Not really. The Islamic State has called for car bombs with gas canisters thats one of the plots that we saw in france against the Notre Dame Church that fortunately didnt go through. Most probably whats interesting is that the driver of the van fled he didnt want to become a martyr so that is also significant and that would fit into the suggestion that they were thinking about putting a car bomb and living, rather than dying on the scene how organized do you think the terrorists were . How loosely do you think they before were to isis what do we know about the ties we have not seen in spain compared to other countryies really people coming back, its usually homegrown, moroccans or Spanish Citizens of moroccan origin the spanish Security Services have been extremely efficient with the moroccan services to foil attacks and dismantle terror cells looking at the numbers, even though spain is not in the news headline concerning counterterroism, for some of us that follow watts going on in spain, theyve been extremely active in terms of dismantling cells and spain is, i would say, number two in terms of arresting jihadists in europe after france its kind of counter intuitive because spain is not fighting isis in syria and iraq, they have soldiers there, but just training other people theyre not combating isis fighters on the ground do you think that spain was going to be a prime target for jihadists in the first place yes, very much so spain has been, for instance, for al qaeda, a tier 1 country its a top target for historical reasons. Jihadists consider that spain is a muslim land that needs to be retaken. For me, it was not a surprise. Spain, if you will, is at the top of the food chain, it has nothing to do with Foreign Policy but for historical reasons they have tried to target spain olivier, thank you very much. Olivier guitta lets take you back to the markets. What were seeing across the european markets is a certain sense of risk aversion people taking risk off the table, given the risks in barcelona but also the increasing worries about trumps reform plans and what cannot be pushed through by him given the chaos raining in the white house. The stoxx 600 is off by 0. 8 that comes off three days of gains this week, though we were down 0. 7 in yesterdays Training Session lets look at the the cac c40 is off more than 1 the spanish index is suffers quite a bit as well given the latest terrorist attacks there when it comes to the sectors, as i said before, its the travel and leisure sector bearing the brunt of the losses, down by 1. 3 many of the airlines, banks, chemicals, also underperforming. No sector in the green today oil and gas holding up relatively well, off by 0. 2 lets step away from spain for a moment and talk about more mundane things like the ecb. Ecb bank policymakers are wary of the euro rising excessively fast and disrupting favorable financial conditions brought about easing monetary conditions investors pointed to a bounce in the euro as a threat to the ecbs 2 inflation target. Will hamlin joins me around the desk there is not a whole lot that the ecb can do about the strength of the euro it is on track with tapering and tightening, thats going to come at some point next year. Can it only do verbal intervention now when it comes to the euro . It can do verbal intervention it can mario draghi is a master of this kind of manipulating the markets by telling people, you know what they want to hear. Like all good central bankers are. Markets do hang on to every word he says, every movement of his eyebrow gets interpreted in a particular way so we can do that. But there are limits to that and i do think that, you know, the more the euro goes up, the lower the Inflation Expectations in the eurozone will be. And in a way that will do its own work we saw a bit of profit taking in the euro dollar pair yesterday. That was on the back of the ecb minutes. Ecb members somewhat concerned about an overshoot in the euro that did not necessarily help european equities. Do you think theres strong inverse relationship between equities and the euro . Is it not as strong as we make it out to be i dont think its as strong as people make it out, but the euro will affect the profitability of certain European Companies that have a large amount of earnings overseas you saw that in the qt. You still say the biggest risks to european markets is european tapering, and the taper tantrum. If it comes. Maybe it wonl even come. We saw that in july after the comments by mario draghi do you think that will happen once the meeting happens in jackson hole i dont know. The bears might say it will be the u. S. , but if you look at that, what felt like a big move at the time is now just a pure blip on an upward trend. I suspect yes, there will be some days when the markets are down because of tapering i dont think thats really knocking the knocks the locomotive of money coming into European Equity markets. Overall you still like European Equity markets more than u. S. Equity markets yes i think european equities are much cheaper still than the u. S. Equities, notwithstanding the big moves we have had in the euro and moves we have had year to date, but they lagged on a much longer time period. Profit margins are still not high, theyre at historical average, which is not the case in the u. S and we see a lot of value there. You see value in a couple of individual stocks. Lets kick off with one of them. Novo nordisk yesterday the stock had the best session in 2 1 2 years on the back of a diabetes drug which succeeded in a key late stage trial. Eli lilly was down as a result i guess this is one of your topics despite the news yesterday. My Compliance Officer watches this program, im not officially allowed to give investment recommendations, i can talk around what i think is interesting. Okay. You know, novo, the case for novo, its a high quality company. There are a lot of structural Growth Drivers in that you have a lot of bad habits around the world which is causing a diabetes epidemic which gives massive tailwind to the growth and it is a company that doesnt report the earnings about the bad stuff, what you see is what you get. And it hit an air pocket a couple years ago, which allows i think, longerterm investors that really like the company but didnt like the valuation to get back involved. And now youre seeing better earnings, and youre seeing better data that will help them sell drugs again another sector that you like, but not necessarily recommend, i just want to keep your Compliance Officer happy, is banks in the eurozone, intesa, et cetera, is this still the european debt crisis its partly that, but also a realization that, yes, there is still a lot of banks in the eurozone that need more capital. These are the tier 3 banks the tier 1 banks have enough capital. Theres a realization that i think in european policy making circles now that you want to resolve banking crisis, you need profitable banks you need equity holders that own these banks that are getting an attractive return on equity from those banks. In order to put their money in their pocket when things go wrong. If you have a cooperativeowned bank or a bank capitalized by some ambiguous piece of paper sold to Retail Investors that dont have a clue, you wont be able to deal with those banks when things go wrong will, thank you very much for your time. We have to leave it there. Will hamlyn Senior Investment analyst. Next after the short break, we will be joined live from barcelona for more on the terrorist attacks. Stick around for that. Track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. Ab ongoing operation is underway in spain as Police Investigate attacks in barcelona. Claudio lava flshgs ga hnga hast reporter theres a bit of an update here. The Catalan Police have said they have found out that the suicide apparent suicide vests what looked like explosive belts that five terrorists that carried out a Second Attack in the town of cambrils, about 100 miles south of barcelona last night were fake. That is a bit of positive news, if you can call it that, amidst the tragedy. That means that though this group seemed to have been organized, even though there is no real confirmation of the connection between the two attacks yesterday, authorities belive there is a link the fact there were no explosives involved means that the group was organized in the sense that they carried out an attack by using vans to plow into a crowd of people here. They injured six people, one is critical but the lack of that explosive, the fact they were not wearing explosive belts, that means the organization was, of course they did not access explosives that would have meant that they could have posed even more danger today as in the future. So this is a bit of a positive news in about an hour from now, at 12 00 there will be a minute of silence held here on las ramblas. The Prime Minister will attend as well as many of the people around me. This is less than 24 hours ago, this is the stage of one of the worst terrorist attacks carried out on spanish soil. Look at it today, its gone back to normal. A lot of people just Walking Around both spanish residents and tourists alike they are buying newspapers on most newspapers you will see Something Like this, this is one of the big news tapes here in spain that says united against terrorism. I spoke to a counterterroism analyst a few minutes ago. He told me that spain already has a very good track record when it comes to tracking down terrorists theres been many arrests made so far this year when it comes it counter terrorism, security how much more with the spanish authorities do what theyre concentrating on now is finding the drive their plowed into a crowd killing 13 people here. Hes still on the run. Thats the main worry for the authorities and the people around here alike. They were pretty effective yesterday on both occasions. Of course we are talking about a van just driving into a promenade like this, with no notice its almost impossible to stop it, but they were quick in arresting two people in connection to the attack here in barcelona. They were quick in killing and shooting dead the five attackers that attempted a similar copycat attack in the town of in the town of camcambrils. They arrested another man in connection with the attack they seem to be effective, but one skipped through the net and the guy is the actual perpetrator of the attack here in barcelona the driver of the van shares in wienerberger are trading near the top of the stoxx 600 after the ceo of the brickmaker clarified comments which sent the stock more than 10 lower in yesterdays trading session. Speaking to us earlier, he explained that he had not warned about the outlook for the reside reside Residential Market i said there are risk outs there with ongoing brexit negotiations i said there are stability indications. I just highlighted the facts we see actually a very good underlying trade this year and the Housing Market is strong so if the right things happen, meaning the negotiations go well, and the uk golf. Does the right things, i dont see any problems in the uk residential Housing Market walmart shares posted disappointing Second Quarter results. The group saw a rise in sales boosted by strong online and grocery demands. Walmart upped investments to drive online sales and improve stores if an effort to compete with amazon. Courtney reagan has the details. Reporter it is steady as she goes for the Worlds Largest retailer walmart putting up another solid quarter nearly across the board leading the discounter to raise profit expectations for the year in the most recent quarter profits were capped because of investments in ecommerce, lower prices for shoppers. The investments seem to be working. Their improvement, the way the stores look, the assortments in the food area, the quality, the service, the friendliness, i tell you something, dramatically different than a year ago. And that was better than the year before that walmart has reported a string of sales gains, marking 12 straight quarters of growth. U. S. Store traffic also continues to improve and analysts think Profit Margins may try to grow again soon in a world where amazon seems to be taking over, if you can have a player like walmart not only accelerate sales but also increase margins, this will be a pretty good story. Still a much smaller part of the business, walmarts u. S. Online sales grew 60 from last year, just slightly below last quarters growth walmart says the sales strength in the quarter was broadbased, but it did call out grocery, noting the best performance in five years since food is more than half of the discounters sales, most analysts agree, its the most important category for growth. And a big focus for walmart. The discounters Online Grocery with parking lot pickup has been well received and will be in more than 1,000 stores by yearend an important opportunity, especially as competitors add stores. Coming up, volatility spices markets worry that a key trump adviser is preparing to jump ship well have plenty more on that in a few minutes welcome back to street signs. Im carolin roth these are your headlines terror in spain sends jitters in the market as European Equity open lower and travel and leisure stocks suffer the worst of the losses. Police kill five terrorists wearing fake suicide belts in the coastal town of cambrils in a shootout connected to an attack in barcelona. Police make thre arrests in connection with the attacks as Security Forces continue the hunt for the van driver who killed 13 and injured more than 100 people on the tourist avenue las ramblas good morning if youre just tuning in, lets flesh out the headlines for you. Counterterroism forces in spain are investigating multiple attacks in and around barcelona and working to uncover other possible plots in the latest incident, six civilians and one Police Officer were hurt in cambrils. Five are hospitalized. Attackers ran them over in a car before police shot dead five suspects in the northeastern spanish city police say it was related to the earlier attack in barcelona, and that the five attackers were wearing fake explosive belts when they were killed. In barcelona, police have arrested a third man in connection with a ter resrorist attack that killed 13 and injured 100, many of them seriously when a van crashed i