Renewed tensions in the streets of paris but crude continues to rally with brent 2 higher. In m a news monsanto plants the seed for a new syngenta bid. Shares trade sharply higher after the u. S. Firm says its still on the hunt for a takeover. All right. Lets get to our top story this hour. The disturbing scenes on the streets of paris. The northern suburb of the city. A Police Operation is still underway in the french capital. More than five hours after it first started in the Early Morning hours. French Police Concerned theres still one terrorist left inside the apartment at the center of this raid. One woman in the flat has been killed. She killed herself at the beginning of the assault by blowing herself up. Three men have been arrested from inside the part and reports are that one civilian who is passing by at the time of the operation has been injured as well. These are disturbing scenes that were keeping a close eye on and theyre after a high value target. The mastermind behind the attacks but theres still no confirmed reports whether shes one of the three arrested inside the apartment. Whether hes still at large or what we know of him at this point. We believe he is involved in this flat and we dont know that for sure yet. But the thing thats astonishing this morning is this is so close to where the attacks took place. Its in the outskirts of paris. Where the attacks kicked off in that district of paris and suggests whether or not all of the planning was done from there or part of it that really are close to the action. Much closer perhaps than we might have feared originally. Lets get the late fres the streets of paris. Hadley gamble is standing by. Hadley. Good morning, susan. French president hollande said this is a country at war with terrorism and events we have seen over the last several hours in the northern suburb of paris. They certainly reflect that. What we know of course so far is five people at least have been arrested. We know that french media reports that some of the Police Involved in this raid have been injured and we also know that at least two terrorists are dead. We have also been told by French Police that at least one terrorist remains inside of the apartment thats been under siege now since around 4 30 al local time this morning. Of course im standing here outside. Later today french lawmakers are going to be gathering here and debating the emergency of powers that are right now in place in the streets of paris and across france. They want to extend the powers for another three months and the bigger question Going Forward is what that will mean for security and intelligence officials in terms of the tools they can use to go after rists. In terms of the terrorists targeted in the raid overnight, do we know if they were related to the terrorists attacks overnight or planning a completely separate attack . Do we know to what extent they were linked . Right now a lot of this is unclear. We had various reports in french media saying theyre possibly a link to the mastermind of the attacks on friday. But no information from the Prosecutors Office or the police themselves as to whether or not the man behind this attack was involved in particular. We have seen 128 such raids since the attacks took place in paris and we have to highlight the fact that the French Security forces, president hollande wants to increase Police Presence by 10,000 jobs over the next two years but already we understand when you speak to western military and Security Officials that the french are considered to be very, very strong in terms of their internal security and how they have been tracking terrorists over the last couple of years. It speaks volumes that weve seen such a scrambling of security and intelligence personnel over the last several days. Hollande saying france is at war and this raid this morning on the outskirts of paris highlighting that particular fact. Lets explore what the likely reaction is by the french over the next couple of weeks. Air strikes already picking up a pace. The guest you had about half an hour ago on worldwide exchange, he did say the phrase boots on the ground. Is sentiment in france shifting toward that as a likely ev eventuality and is that coming sooner rather than later . Weve seen that reflected on papers and topics in french press and media over the last couple of days that more has to be done and theres a recognition that liberties may be sacrificed in this fight against terror but we have spoken to a member of the parliament that is expected to be a runner for france but what i have been hearing from diplomats in particular is russia getting involved with boots on the ground and the fight against the Islamic State is crucial. That is a game changer and that means we could see president holland going to the u. N. Security council and get ago approval for a resolution against the Islamic State. So a lot of events moving rapidly here in france and certainly this raid this morning thats been taking place since around 4 30 a. M. Reflective of the changing nature of this fight against terror here in france. We heard of course about the need for cooperation internationally between the u. S. , europe, and russia but we also need cooperation within countries and theres a sense that theres much more Political Division than say there was 14 years ago where the response was pretty unanimous in the United States. We have divisions also in terms of the best course of action within france and across europe. Does that mean that any form of action is going to be much harder to come to . Possibly over the longterm. You have at the moment everyone coming together and theres a real sense of unity and this post attack phase where everyone is reeling from the impact of what happened here in france on friday night but its not just here in france or in the u. K. That we have the Political Divisions. You also have them internally in the United States. So many governors saying theyre unwilling to take refugees. The president of the United States saying were going to take these refugees. Theres not that much they can do but it highlights the internal divisions and thats a bigger part of the debate Going Forward. Later today as i mentioned theyll be talking about the extension of the Emergency Powers and talking about the tools that they want to give to security and intelligence personnel to make it easier for them to take on terrorists but were talking about a restriction of liberties and search and seizure and things that have been held sacred for many years so it will be difficult for people to stomach once we get away from this close period on friday. This will have to be a longer conversation down the road. I want to get your reaction to one final part of the story. Investigators cleared two airplanes that were diverted. Nobody was hurt in any of those instances and cleared of bombs being on board. What is the reaction on the ground in paris to that story despite the fact that its now cleared of having any bombs on board . Its just a bigger reflection of the fact that theres a sense of tension in this city but also a sense of events moving faster than anyones control. When you have 128 plus police raids in a three day period that will be adding up to intense moments for security and intelligence personnel. People hurrying to and from work the last couple of days. Sirens all night long. Theres a tense feeling in the city and that adds to the pressure people are feeling. If you think about this from the u. S. Perspective as well, its something over the last several years, lines at the airport. Airport security becomes a very, very important component of the fight against terror but at the same time we understand that events are moving very, very quickly right now especially given the threat of the Islamic State and certainly something Going Forward that youll probably see lawmakers as early as today is going to be what more needs to be done in terms of keeping our airports safe. For now, thank you for that. Well be back out with hadley throughout the show of course. Lets get back to the markets and checking in on u. S. Futures and what theyre indicating ahead of the u. S. Open today. This satisfy the flat session that you saw on tuesday. Looks like the implied open is telling us were going to open up at fair value today. Lower by one point by the s p. Dow jones industrials called down by 13 and the nasdaq pricing in losses of 2. 3. And European Market trade in the red today to the tune of 1 in france. 0. 7 in germany and in the u. K. Down just shy of. 5 . Do bear in mind that yesterday we had a very strong rally in europe. The broader stoxx 600 was up 2. 4 so a little bit of a correction following yesterdays gains. Shares are trading higher amid hopes that monsanto could come back with another takeover offer for the swiss firm. This after they said executives had, quote, conversations inside about acquiring rivals including syngenta at an investor day. Also shares are continuing to move lower today after it agreed to buy air gas for 13. 4 billion. This was an all cash deal and if it is approved it would make the french group the Worlds LargestIndustrial Gas company now by sales. The air liquide ceo saying it will be reached between the two and expects the deal to close in 2016. Norfolk southern is all but rejecting a 28. 4 billion take over from Canadian Pacific calling it low premium and saying it would face significant hurdles. Theyre offering 95 a share and a cash and stock offer. A 9 premium to choose data closing price. The combined railroad would offer unparalleled Customer Service and competitive shipping rates and satisfy u. S. And canadian regulators. Lets have a look at price action in german trade. Still to come on the show, a realty check. Housing starts are out at 8 30 a. M. Eastern. But do bricks and mortar matter before the fed lift off . Well discuss next. Thats when we come back in two. Welcome back. Lets remind you of the headlines. Gunshots and explosions heard in paris as Police Conduct an operation lasting more than six hours. Monsanto is on the look out for m a opportunities and may revisit syngenta and it takes over air gas for 13. 4 billion. Lets give you a run down of what to watch for on this wednesday. Likely dropped last month but are expected to remain at levels consistent with a market that is recovering at a Pretty Healthy clip. Meantime Building Permits likely rising last month. At 3 00 p. M. Well get the minutes from last months fed meeting. U. S. Fed president bill dudley theyre all in a regulation to discuss policy and giving his first talk on the economy and fed policy this afternoon. When it comes attornto Earnings Reporting before the bell and lets pick up on the latest u. S. Housing data and the home starts and Housing Starts that were expecting today. Senior executive Vice President joining us live from los angeles. Good to have you. So you are saying that basically were going to go steady with Housing Starts. What does that say about the health of the u. S. Consumer and the u. S. Economy . Good morning, thanks for having me on the program. Youre right. The numbers are expected to be around 1. 1 Million Units of Single Family and multifamily housing and that is very consistent with what we have been expecting and the underlying theme of whats happening with u. S. Real estate whether its residential or commercial is demand continues to outpace new supply. The construction levels are rising and indicate a healthy market on the commercial side and residential side but by far were short of what were seeing by the job driven demand coming back into the marketplace. On housing in particular the Single Family numbers are very interesting to look at because were looking at 6 to 700,000 units of completed homes compared to 1. 6 million prior to the last recession. So were still well below prior peaks and household formation has picked up pace pushing about 1. 5 Million Units. So the balance between supply and demand is very favorable. Well, let me just ask you if this consistent steady trend continues when, lets say the fed hikes Interest Rates next month. Well, the fed is incredibly data sensitive as we saw earlier in the year where there was some tribulation in the markets in the Third Quarter and they basically paused. Job numbers are coming in strong and because of the fact that we have now seen two or three cycles of expected Interest Rate increases that have been postponed the markets are expecting on the real state side anyway the fed to move forward with an Interest Rate increase. Having said that, the accommodative attitude and the fact that inflation is not a problem with Energy Prices falling and the wage growth just starting to take form, we believe that were going to have a more data driven fed. Sure but are they still going to be interested in that space if the fed hikes rate . Because the yield differential will obviously fall away. Well, the margin in the market, the spread in the market is still very healthy. Yields are still attractive compared to other alternative investments. Even for apartments, really the only sector seeing a sizable volume of new construction the supplydemand is still so saverable on top of demands that were seeing today that the market is anticipating yield increases to the degree that its still below the rent increases were seeing in the overall commercial real estate sector. Its really the balance of occupancy increases and rent growth versus the increased cost of debt and that balance looks good but youre right. Were seeing the degree of sales growth and investments slow down a bit on the commercial side and that is actually a positive signal is that were not seeing too much leverage. Any kind of an overlending that we saw in 06 and 07 which obviously lead to a lot of problems and that is keeping the balance in the market Pretty Healthy. Thank you so much for that. Senior executive Vice President. Still to come on the show, well bring you up to date with the on going enormous Police Operations underway in paris as it closes around those potentially responsible for fridays terror attacks. Well leave you with the live pictures from paris. Were back in a couple of minutes. Welcome back. Breaking news from the Northern District of paris. Two new arrests taken the total relating to this overnight and morning raid to 7. We knew that three did come from the flat that the apartment that remains in question with one person still inside. Two from outside of that and the latest also adding the total to 7 arrests in this raid which has been going for the last five or six hours. Lets get reaction live from paris. Hadley joins us now live. What we know right now is that 7 people have been arrested. We also know that at least two terrorists were killed in this raid on going since around 4 30 a. M. Local time. One of the two killed was a woman. She detonated an explosive vest during this raid. There were policemen lightly wounded over the last several hours in this raid as well and also so much speculation in the french press. Several different reports relating to this installed tent. The folks that had been arrested this morning were planning an attack, essentially, against what is that area of paris which is essentially like our city area in london. The business district. Thats one of the many reports were hearing from the french and local press here. We also heard other numerous reports about the fact that he may be at the center of the raid. He may be the target of this raid. Unconfirmed reports at this point but thats the general rumor were hearing on special media and from the french press as well. Later today lawmakers here are going to be debating the extension of Emergency Powers. They want to extend these Emergency Powers here in france for another three months and that will give intelligence and Security Operations more tools to fight terrorists but of course that also means that liberties may be at risk, guys. I just wanted to follow up on the extra two arrests that weve had in the last 15 or 20 minutes or so. Do we know if this is in the same region were looking at live pictures of now where the raid has taken place all morning or is it a separate raid . Part of the same raid, do we believe . We believe that. Were talking about multiple raids here. Over 128 police and military raids across the country since the attacks took place. A lot of moving parts. Its a fast moving story as you have seen. These attacks coming at a crucial time for the French Security services. President hollande wants to add at least 10,000 security jobs over the next two years and we already understand from multiple sources in the United States government and earn governments as well that the French Security services are considered some of the best when it comes to taking on terror. So upping their abilities is something that the french president wants to get done a