Calling on ministers meeting in brussels to cooperate in the fight against terrorism. Air france shares take flight after Goldman Sachs raises the price target on the stock. This despite bracing for a fall out from the paris terror attacks. These events will have an impact. We have more cancellation of bookings than new bookings but we still have new bookings. Shares in nike are on a run after a 2 for 1 stock split in a 12 billion buy back program. Good morning its friday and were one hour into the trading session. Lets see how european markets are responding to that and were seeing fairly flat reaction right now. Were seeing the stoxx 600 down just a fraction. Down just a couple of points or so. Were, in fact, close to session lows but at the start of the session we actually did continue yesterdays gains. Were close to three month highs for the European Equity markets. Bigger impact in the eurodollar pairing because were close to session lows for the euro dollar. As you can see, 106. 82. Were off by half of 1 . Certainly mario draghi having a fairly big impact here. Ecb president mario draghi saying we will do what we must to increase inflation. Monetary policy will remain accommodative for as long as necessary. In the past he said whatever it takes. Now he says whatever we must do to make sure that inflation rises quickly and he says we cant be complacent about inflation staying low for too long. Whether its core inflation or headline inflation. Yesterday in the minutes, the ecb minutes he was mirroring exactly what it is. The message he is giving. Where he was talking earlier and i think it is important that he is now seemingly pushing out the prospect for when inflation is going to hit the 2 target which might make a difference to quantitative easing. Maybe like the size and scope and all the other measures and also the time we have with regards to the rate hike but also just the quantitative easing in europe. Also talked about the deposit rate quite a lot. Expectations are ripe to the tune of ten basis points or so. Were at negative 0. 2 and he did say that the deposit rate improved the transmission of the asset purchase program. Lets get out to frankfurt. Quick reaction to what mario draghi had to say. Is this the strongest message yet that well see more easing in a couple of weeks time. Good evening. Yes. We had the signals before. This makes it more explicit. It remains to be seen which features this further easing will take. You just mentioned a few, the discount rate going another ten basis points and maybe expanding the monthly purchases and broadening the Eligibility Criteria or a combination of all of the above so that remains to be seen. Its expected that more will come and as you will understand, the ecb like other Central Banks they dont want a surprise. Theyre flagging their next moves quite clearly now. What happens if we dont get as much as what the market is hoping for in december . What do you think the reaction is going to be . If december were to be basically business as usual and you get the same kind of statement in the press conference there would be disappointment. There would be concern about inflation staying longer and then currently down and remember there may also be some its early days but there may be some additional downward pressure on prices following the atrocities that happened last week and this will have the potential to snap Consumer Confidence at quite a critical period. So i would be surprised if the ecb were not to understand that they would build these expectations. If you look at the minutes it looks at the consensus. You look at global ratings for european sovereigns and i just wonder if more easing will actually add so much more benefit for these sovereigns in terms of rates or do you think were at a point where theyre becoming complacent about that . Thats the question were pondering all the time. Our line is clear. Qe by itself will not increase credit worthiness and therefore you should not effect further Rating Action because of expansion of qe. The ecb is only conducting these operations because the economy isnt so weak. So its a defensive measure. So the main concern remains that with the super low Interest Rates complacency in terms of structural implementation and further efforts to bring the budgets back toward balance in some countries, these efforts will be undermined by what appears to be a very sort of easy environment where governments can borrow at zero and even negative terms sometimes. So the measure to act is of course much less and this might be exacerbated by shifting priorities. Quite understandably the priority now about security and safety and that this might actually lead to even less focus on the structural economic issues. Ecb can help but cannot solve the problem of the euro zone which is low growth and large leverage. So for that the real economy and policy makers need to act themselves. Hang on for just a second. Let me just tell viewers a little bit about what we heard from Stanley Fisher as well. The fed vice chairman is saying that the central bank has done everything it can to prevent the market surprise when it finally raises rates. It was speaking in San Francisco yesterday. Saying that the fed has telegrafd its intentions so well that other central bankers have started to get impatient about it now. Youre looking at a live shot of brussels where Eu Home Affairs ministers are discussing Counter Terrorism levels. Franciss interior minister called for europe to unite and swiftly decide on antiterrorist measures. He added that external border controls must be improved to track and neutralize terrorists before they strike. Meanwhile, powers are expected to sign a United NationsSecurity Council resolution today declaring a common war against Islamic State. He is the head of Economic Research. Talk to me a little bit about the latest measures that we anticipate now with regards to what is going to be coming out of europe and whether or not its going to make a difference on this war on isis that were seeing. First were seeing as you heard there, strengthening external borders so theyre going to try to join together and secure the external borders for europe. There will be a lot more intelligence sharing and try to gather data on people moving between syria and europe and those coming in between the refugee flows and emphasis on controlling firearms across europe. In terms of the action in syria theres still big divides on that but other countries are still unsure. Theres definitely countries that wont be involved. Spain is unlikely to be involved. So theres a lot of differences but the focus immediately is going to be on the external border and intelligence sharing. Is this bringing europe closer together . Europe has been very divided the last couple of months. Is isis making european leaders put these differences a side and think more commonly . Its possible it could go that way but im seeing signs theres still splits and some are emerging. Weve seen strong words from the polish government toward germany and the east european states are still concerned about the fact that theyre forced to relocate refugees to their area. Theres tensions there and differences on the military action. People are trying to come together but we have very hardened political starts on what is and what is not possible and were seeing talks of internal borders going up. Hang on for a second as well because i want to cross out to hadley in paris with the latest. We were just hearing here in the studio from our guest that this were still seeing splits in europe regardless of whats taking place at the moment. Thats right and france is calling for a unified declaration of war. They already have a draft resolution. Theyre hoping to get some kind of clarity on that in the next few days and of course right now theyre also saying hey guys its time to wake up to this threat from terrorists internal and external as well. Later today the French Senate is going to be voting on a resolution that would extend it for a further three month. Theyre essential in terms of keeping the country safe in the near, short, medium and longterm. Thats going to raise serious questions for lawmakers Going Forward but whats really interesting if you look at the un Security Council resolution weve already seen the french getting the russians to come on board with them in the last couple of days in term of the fight against the Islamic State and with the expected death of the Chinese National theyre much more forceful in their rhetoric against the iz lslamic state as well. Prime minister david cameron, were strongly condemning whats been going on in syria over the last couple of months and the u. K. Holds the rotating scene on the Security Council right now and theyre expected to be friendly to the french resolution. The Sticking Point is what to do about president Bashar Al Assad and whether hes part of the solution to this problem. Take a listen to what lavrov had to say. To take away assad and isis will calm down logic is disappearing because isis is working to reach their goal. Despite anything thats happening in syria and despite who and how they treat Bashar Al Assad. The big question is whether he will be a solution or part of this solution in the fight against the Islamic State. He does have the support of russia. He has the support of iran at this point. He does not have the support of the united states, u. K. , france, and other western countries. So the big question Going Forward is the language there and if he will be part of the fight against the Islamic State. Thank you so much for that. Gunmen attack a luxury hotel frequentedly foreigners in malis capital. That happened earlier on on friday and theyre believed to be Holding Hostages in that hotel located just west of the city center in a neighborhood thats home to Government Industries and diplomats. So this is all that we know so far. They may have taken hostages and theyre attacking a luxury hotel in the mali capital. And keeping in mind that northern mali in the past had groups with links to al qaeda. A frenchled military operation that went in a couple of years ago and weve seen outbursts of violence but like you say, they have hostages in this hotel. Meantime, we want to get back to frankfurt. These terror attacks that happened in paris a week ago, will they have any impact on european ratings in anyway, shape, or form. Well, they left no direct impacts on the ratings. Its a terrible atrosty and terrible shock to society in terms of economic terms its not a big issue and were not looking at a level of violence that we see in some of the countries that these people are coming from which undermines the economy. Well be seeing the risk not only to Economic Confidence and therefore to the recovery but theyre still struggling with bringing the deficits under control. It is pretty uncertain right now if they will be offsetting or spending tax cuts elsewhere but it will be through politics. Politics matter always when you assess a govern risk because this situation if its prolonged as some now fear could lead to further wind in the sales of p populous and that could really put the established parties and the governments on the back foot on the techbsive a defensive they might try to bring the public finances back on even keel and that could have a negative implication on the ratings but that would be more the consequence of the political reaction to the terrorist attacks than the terrorist attacks thelss thmselves that h point. I guess the jury is still out on that. I guess the jury on whether well actually see major implications, a major boost for some of the populous, more of the right wing parties. I guess that is still out because in some cases terrorist attacks actually strengthen the resolve and strengthen the ratings of the incumbents. What are you seeing here in france . Very much. It is up in the air. She has been very cautious in her response to the attacks. She has been quite quite and was waiting for a lot of people to view it as she told us this might happen and now shes coming out strongly. She will look to capitalize this going into the elections at the end of the year. Obviously hollande could see a boost but i think we are seeing more broadly from the refugee crisis and the migrant crisis a boost of populous parties. They have come top of the polls in sweden and netherlands and growing in germany. So theres some impact already from these events. Whats the difference between the eu article 42. 7 as opposed to nato article five. Its a much vaguer article. It focuses on aid and assistance. Its not military and gives people more scope for how they aid france. That allows countries to provide different type of aid in terms of technological assistance rather than getting involved in military action in syria or elsewhere. Let me bring it back to you, in terms of the overall growth story youre saying you dont think that govern ratings will be impacted. Do you think that European Growth is going to be impacted . Do you think that fwrks dp is going to suffer next year . Well, i cant tell you that. No one knows that. It all depends on whats going to happen next. We had similar conversations after 9 11 and there was also the concern that this may be followed by further atrocities on a similar scale. Some indicate that the risk of copy cat and follow ups is much higher because of the different origin of the threats. If you have what is perceived a constant drum roll of attacks inside europe, this would have a much bigger potential to set confidence of consumers who might go up again and people might fly less and take fewer trains, et cetera, et cetera. It depends on whats going to happen next. I think that history shows that the economies and societies at large are quite resilient. Theres a great will to carry on as before and not be intimidated but this would be severely tested if this would not be a one off like weve seen in paris but the beginning of maybe a wider series of attacks. Thank you very much. Thank you for your time as well. The head of Economic Research and also just to mention that on the latest on the gunmen attacking a luxury hotel in malis capital that were hearing that the u. S. Embassy were aware of an on going active shooter operation in the hotel. Among the hostages are 140 guests and 30 staff so gunmen taking 170 hostages at the Radisson Hotel in the capital of mali. Now flight to safety. Find out why the ceo of air france is still optimistic about the Tourism Industry in paris despite the terror attacks and well be talking more about that here in a coup of moments. [sfx bell] [burke] its easy to buy insurance and forget about it. But the more you learn about your coverage, the more gaps you may find. 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Relatively flat at the moment. Just a little bit lower if anything. The markets just mirroring what were seeing here. Keeping in mind over the past week we have seen volatility out there. The nikkei off. The yen strengthening against the dollar. The u. S. Edging down as wellbeing lead lower by health care and by some of the bigger corporates out there. Intel bucking the trend as well all trading a couple of points to the downside now wir digesting this news were getting at the molt. Yes i have been looking at the u. S. Embassy website and they posted an announcement to let citizens stay in place if theyre in mali. Lets go back to the asian markets here. We had a mostly positive finish here in the region and take a look at what happened with the shanghai composite and the hang seng. Because it was trading, struggling to get into positive territory. Composite up by. 4 . This is off the back of news from the pboc that announced it was cutting Interest Rates to lending to its banks. Mainly the overnight rate in order to get more liquidity into the system and t