To a strong Balance Sheet but says there will be no word on its dividend until february. Dividend pulse has been very good for us and very good for our shareholders and has been just a solid sign post as to what expectations should be. And two ipos stateside und underwhelmed and square and tinder are at the lower end of the expected range. In the last hour the french Prime Minister warned that terrorist could use chemical weapons. This as he prolonged the state of emergency to three months. The belgian Prime Minister has put his weight behind the fight against extremists saying he will amend laws. Now in the past few minutes theres been reports of six fresh raids in brussels. Lets get the latest. Hadley gamble is in paris. Theres reports they may be conducting police raids in brussels and this is a country thats been involved in five of the last major terror attacks over the last 18 moss. Intelligence officials basically saying its about time that these folks in belgium go after the root of the problem which many identified as radical islamist preachers in that country. Theres some data to suggest theyre major contributors to the fight. In terms of the Islamic State. Hundreds have been admitted. Hundreds of people have gone from belgium to fight with the Islamic State in the middle east but we dont have any concrete data on that so far but its something they know they need to address but just is it coming too late for comfort . Here in france theyre voting later today to extend the Emergency Powers that are crucial to keeping the state secure and basically what were going to hear later today are lawmakers here in the lower house will vote on the Emergency Powers and tomorrow there will be further voting to extend the powers as well and this will raise larger questions about search and seizure and the freedoms that the french hold so dear and whether or not theyll be willing to give them up in order to make france more secure. I want to get to the latest on the reason why they launched the raids. Theyre looking for the mastermind of the paris attacks. You know, whats the latest on this . Theyre still trying to figure out whether or not he was actually in that apartment. Thats right, susan. So essentially what we know over the last 24 hours is raids, the on going raid that went for about 7 hours starting at around 4 20 a. M. Local time, what we know is at least 7 people have been arrested. There have been at least two terrorists that were killed. One was a woman that blew herself up. That was the first incident like that in the entire history of this country and they are continuing at this time to look for the man who they believe is the mastermind behind those attacks on friday. He was not among those that were killed and he was not among those that were arrested yesterday and of course theyre still cleaning up the mess that they made yesterday. There were 5,000 rounds of ammunitions into this apartment complex they were raiding so a big mess but theyre still trying to sift through and find out if theres anything more to be gleaned from that apartment itself and from the people bound near that apartment and arrested. But in terms of what the french government suggested over the last few hours as well, the french Prime Minister is saying that chemical weapons could be used in terror attacks. Thats opening up a whole new page. Thats basically the Intelligence Services in france and europe say nothing is beyond the pale when it comes to the Islamic States and their attacks on the west. Were hearing of course of this rolling over, the extension of the Emergency Powers in france and belgium also responding in a similar state today. How long can we extend Emergency Powers . How long before a proper political debate arises and disagreements which are rumbling under the surface within these countries, the u. K. One of them but also across europe. How long before those serious concerns that are rumbling below the surface come to the fore and makes it harder to act in decisive fashion either way . Well as you mentioned, right now in france specifically theres a lot of momentum behind doing something, a little bit more extreme than what has been done in the past and certainly the lawmakers that we spoke to over the last 24 hours told us that they are behind the president s need for these Emergency Powers. And even some of the more liberal saying theyre not worried about the Emergency Powers extending too far into french every day life but at the same point, something has to be done Going Forward. Theyll have to find a way to make the countries more secure and one of the things theyll try to do is make changes to the treaty and that will be a major topic tomorrow in brussels as lawmakers meet there. You can see a sea of green behind me. Strong performance today. Yesterday european markets were mixed to down slightly and then the u. S. Trade session was good. We had of course a clear indication that were on course for a hike in the u. S. In december and that was taken well by the u. S. Markets. That positivity flowing through today. Were out the best part of 1 . Lets have a look at the individual markets as well and see how that performance is playing out. Its pretty broad based positivity. Germany leading the charge at 1. 2 . Now the latest fed minutes show a majority of officials were willing last month to raise Interest Rates in their october statement the fomc said they would contemplate a rate hike in the next meeting. In the minutes most members say this new language didnt mean a move was automatic but it would take an unanticipated shock or weak data to change course. They actively debated the risks of moving too soon or waiting too long and what to do if conditions continue to improve or how to proceed if they do get worse. And of course that fed through into markets yesterday. Very much so but the on going question about whether or not they waited too long, whether or not behind the curve, thats also something well continue to talk about. Some people suggesting that Wage Inflation might get ahead of the fed and later on next year they might have to come to terms with inflation moving higher faster but youre absolutely right with the feeding through into the markets. The dow higher on the close. S p 500 up by over 1. 5 and nasdaq up by closer to 2 . We saw the best day in four weeks for these u. S. Markets and were looking at the dollar index, a little bit of feeding through into there as well although many of you might say not as much as what could be the case. Lower at the moment. Weve seen this in the euro dollar levels significantly over the last couple of sessions. Were below 107. We hit a level called 106. 17. A seven month low here within the last 24 hours or so and keeping in mind as well, one eye toward whats going on with the japanese yen along side with the dollar given the decisions to keep rates unchanged at the bank of japan and stating that production sesktis effected by w down in emerging markets. Speaking to cnbc, the richmond fed president explained why they should have pulled the trigger months ago. Ill where i was in october and september. I think Consumer Spending growth has been strong. We saw that number for the third quarter. That compares to numbers that we were getting early in the recovery. Thats an important factor. Theyre almost ecblike in terms of the strength of their guidance. Thats a good point. Its a compliment because i think the ecb is best at sticking to it. I should say mario draghi but you get a pretty good tell of whats going to happen and the market sends to price things in and i think right now everyone is certain were going to get a hike. There was less in terms of the on going pace weve seen but they guided clearly that they want to make a small move in december. Its interesting that theyre looking at also, well, can the economy with stand a shock if we want to get a leftfield shock again. If were seeing a bump further lower . Can the economy with stand that given where we are . Were at such low levels and not hearing about negative deposit rates. So you think the ecb is best at telling the market what theyre going to do . Really . I think mario draghi is the best central bank. If you think so. Because he has achieved an extraordinary amount in a couple of years without having as many tools in his box and having huge political pressure against it. So, you know, he has managed to act, you know, back in 12 and 13 that crucial line whatever it takes which in doing so he made the ecb the lender of last resorts which it never was before. And without even having to buy one whole bond. Exactly. But he has had much more against him as well. He had to manage divided political opinion and he managed to walk that plank. We digressed from the fed there. We saw the yield hitting new report lows as well and brought bonds into the picture. Joining us is the fixed income strategy. How are you . Not too bad, thank you. What do you make of the fed . Did the fed do anything in term of its communication. Yeah. Its pretty explicit now that we should expect a rate hike in december. Thats also what is now priced into the market. Its one of the most clear front runnings they have done. So we obviously have seen yields tick up from where they were six months ago but theyre not super high. Where do we go if we get that hike in december . Do we see yields jump up or is it already priced in. . Were looking at whats going on with wages. I think you could see further bearish flattening of that curve as a result of not we only really think theres going to be a couple of hikes next year following one in december so we think theyll struggle to get any momentum. I was speaking to somebody recently saying the fed is going to be way behind the curve come a year from now even if they start hiking rates slowly because of Wage Inflation. Do you think, is there a risk s . Were bearish on Wage Inflation although the last numbers did slightly challenge that view. Its something we keep an eye on. What do you think of german bund yields going out negative to six years . Why is that happening . Obviously its whats going on in europe. We have hugely diverge in monetary policy. It looks like the ecb is going to introduce relatively aggressive or aggressive easing messages in december and the strength on the front end is quite powerful. Youre paying the central bank to hold your money. Whats the interest in buying that trade . Well, a lot of people have to buy this stuff and its whats going on its not just whats going on in the nominal. If you have got negative inflation priced in for awhile then you might still be earning a positive. Sounds like you think ecb might surprise with a stronger piece of action than expected. Will they change the pace of bond buying in. Whats priced in is a 10 bit cut to the deposit rate. Were going for 16. Just since they havent priced in. If they want a little bit of shock and awe theyll do more than that. We think that will occur by ramping up the bond purchases. Ramping up the pace and not the period as well. Both. So that will be a surprise. If you get that kind of move is that yet priced into euro dollar or will we see a reaction further toward the parity level. I think we get further moved toward parity. Theres an element of increased priced in but we still think it will surprise a little bit. How much further widening do you anticipate to see in the yield curve overall . In terms of the spread . Yeah. Theres still further to go on that. And we talked about this as well, the way the fed and the ecb are acting, which of those two Central Banks should be more aware of what the other is doing . Which one has more effect in terms of where the big picture moves are happening . The u. S. Is still seen as the lee leader. The u. S. Is more internally driven. Well have to leave it there. Thank you for joining us. Fixed income strategist. And also we got more fed talk later on this morning. The cleveland fed president will be on squawk box. Thats an exclusive interview, 8 30 a. M. Eastern time and they got a good stack of interviews today, dont they . On u. S. Television . Definitely do. On top of that, here on the show, still to come, do you believe in unicorns. I used to actually. I thought unicorns lived somewhere in the beautiful forest. Why dont you believe in them anymore . The world, right . Investors seem to be losing faith in the mystical animal as well judging by disappointing ipos. More on that later in the program. Youre watching Worldwide Exchange. Find us on twitter. Find us on email. Get involved. Well see you in a second. Its easy to buy insurance and forget about it. But the more you learn about your coverage, the more gaps you might find. Like how you thought you were covered for all this. When youre really only covered for this. Hot dog . Or how you may think youre covered for this. But not for this. Whoa no, no, oh , oh . Or this. Or this. Or that. Talk to farmers and see what gaps could be hiding in your coverage. 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Reports from ap and reuters suggest that fresh raids are taking place in other areas as well around brussels. Reports also say that theyre focused on the suicide bomber who was one of the attackers. Right. Lets have a look at some of the biggest individual movers today in europe and kick off with bhp. Its up 3 after the ceo an mckenzie said they will not give any indication of dividend policy until february of next year. This after maintaining a healthy Balance Sheet through the commodity price route. Matt taylor has more for us. Bhp faced the music at its annual meeting that took place today. Lots of concerns over the deadly mining incident in brazil that of course claimed the lives of 11 people, that dam rupture that indated a number of towns and bridges in central brazil. The chairman says that theyre still trying to determine the cause after that deadly accident but that theyre doing everything that they can to try to reach a resolution as soon as possible. They have established an emergency fund, about 260 million and they have also said that an independent committee is going to oversee the use of the funds. Take a listen to what Senior Management had to say with respect to brazil. Please dont doubt that we are absolutely committed to do what we think a reasonable man and woman would think is right irrespective of how other things play out to reconstruct the communities and the and if you like the housing of the people that have been effected but also by the way of the vier environment and we need to discover exactly what that is. Bhp shareprice has been under significant pressure as a result of the incident in brazil and its one concern that shareholders voiced today. The crumbling share price with them sitting at a 7 year low. We did see the stock move higher today and the company commented about its dividend policy. Also concerns as to whether or not bhp should be maintaining its progressive dividend policy. Heres what the management had to say on that. The dividend policy has been very good for us. Its been very good for our shareholders and has been just a solid sign post as to what expectations should be. The world has changed. And last year was a very difficult year. All in all, a fairly somber mood here at the bhp. The chairman saying that the past 12 months have been one of the worst in the companys 130 year history. Thats the latest. Back to you. All right. Its the best day in seven months. Up 6 . Whats sending shares higher . Well it posted flat revenue for the first half of the year. The British Postal Service saying it expects underlying operating costs at its u. K. Business to drop by 1 for the full year. The organization has seen growth in its parcels business offset by declining volumes of letters sent but results taken well indeed. Now results not taken so well, down 9. 3 . It had reasonable autumn sales. The british home builder saying its enough reservations to deliver growth of 8 marking a record volume. But clearly underwhelming relative to expectations. Now thats off 20 . It fell, we saw the budget retailer falling over 40 . As it opened more stores. The company also flagged a rise in the living wage which will add 4 Million Pounds to costs in the first year. Now lets also just have a little look in. Its set to cut costs by 2 Million Euros as it grapples with a slow down in brazil and slow down in europe. This after they reported a 12 rise in operating profit just ahead of its own forecast. Shares up a very nice 9. 3 . Earlier we asked the ceo where the strength in its business was coming from. Clearly its the development of our Facilities Management services, right . Which grow by three or four times faster than just the food services, right . So very, very strong growth in Facilities Management and the other part is the benefits and rewar rewards business which is still going double digits. And its very tense. We had a very good double digit growth in brazil and also, you know, a little bit stronger growth in europe and stronger growth in asia. Whats your outlook for the next physical year . Organic growth is around 3 and operating profit objective is, you know, around 8 which is in