Minister David Cameron looks to build supports for strikes against the Islamic State in syria and beef up security spending here at home. I firmly support the action that president hollande has taken to strike isol in syria and its my Firm Conviction brittain should do the same. The emerging pmi data from germany and france keeps pressure on the euro. Faizer ee eer phaser and is trying for a major deal and it will curb tax inversions. So weve had french and german pmis already today. French a little bit disappointing. German pmis very high. Threemonth high for the manufacturing. Lets have a look now. Weve got the eurozone figures services at 54. 6 ahead ever forecasts ahead of 54. 0. Manufacturing has come in at 52. 8, thats ahead of forecasts of 52. 3. The composite, that figure came in at 54. 4 ahead of 54. 0. The german dataan data half an hour ago brought it up. Euro dollar as you can see, flat 106. 34. The low 106 levels for the best part of last week as were pretty much pricing in actions from both sides. 1. 05 is the target. European equity markets, lets see how theyre fairing this morning. Theyre not fairing too well. Were off for the ftse 100. The xetra dax trending lower. The cac 40 is off by 0. 7 . The bulk of the selling you can see in the commodity and mining space. Mining stocks are slumping on the back of the falls that we saw, asian trading session. Want to show you what asian trading is doing. Brent crude at 43. 69. Off by 2 . Wti down by 3 holding at the 40. 58. Lets get back to the top story. Brussels is waking up to the third day of lockdown. Reporter its been a pretty dramatic 24 hours, to be honest. 22 raids in brussels in the surrounding areas. 16 suspects being held in custody. They can be held for 24 hours for questioning. Of course, the main target we think of these raids was trying to locate the paris gunman thats believed to be at large here in belgium. The man called salah abdeslam. They didnt find him. The search will go on. What were left with here is a significantly heightened security environment. The highest security level that can be achieved here in brussels. Just looking around me, ive got, what, three soldiers on my right here. Further solars and military police on my left. You can actually see behind me but theres three army trucks down at the bottom of this street. Very well known shopping street here. Not a lot of people around. A better sense of what we have is a lockdown, schools, universities, the metro stations. I think thats probably the most noticeable thing. We dont have people pouring out of that. As far as the security sweep is concerned, the Prime Minister made it very clear about what threats theyre worried about. Listen in. Translator i confirm as i was able to indicate yesterday that we are fearing a similar attack to that which took place in paris involving several individuals who might launch an attack on several different locations at the same time. We have information that leads us to believe that the potential targets are places which are regularly frequented. We are thinking of commercial areas or streets or the public transport system. Reporter guys, i have to say the overwhelming sense from being here in brussels since late last night is exactly what i got when i was in the region of brussels, mollenbeck. People are saying, look, were okay. This is a bit of an overreaction. For all the criticism theyve had for not doing as much in security and surveillance, theyre now being criticized for overreaction and fear mongering among the population . What about the economic toll . I know brussels is quite a destination for travelers. We know shares are trading. Is the country increasingly concerned about the longer lasting effects of the shutdown . Reporter well, its difficult to say, isnt it, because we dont know how quickly they can lock down this broader threat. Its not just about this individual chasing here thats believed to still be at large in brussels. Theres a christmas market. We dont know. We had shops in the center of brussels closing midday. Bars and restaurants were being locked down at 6 00 p. M. Thats clearly not only going to have an impact on confidence but it will have an impact on consumer behavior. The question is how much longer will this lockdown period go on because that is clearly going to have an impact on retail. Back to you. U. K. Prime minister David Cameron has met with french president francois hollande. Meanwhile, cameron is looking to get support from westminster to carry out airstrikes joining france, russia, and the u. S. Lets go outside of parliament to hadley live. Reporter good morning, wilford. Essentially what weve heard from the british Prime Minister is that its time for this country to put its money where its mouth is. Were talking about 178 billion pounds of military spending. 12 million more pounds than they had originally anticipated. This plays into the bigger story of how they plan to attack the Islamic State, not just at home but abroad. The world is coming together to tackle this evil terrorist threat. That was clear on friday night when almost one week after the brutal terrorists murdered people here in paris and sought to divide us, the world united in new york. Weve shown our firm resolve and together we will destroy this evil threat. Reporter now following his meeting with president hollande David Cameron is going to head back to the u. K. Hes going to be speaking later in london and talking about this new plan for security and defense. Were talking about two strong 5,000 fighter strike groups and readily deemployable. It will be interesting in how quickly mr. Cameron sees support. This vote he hopes will be unanimous on strikes in syria. Hadley, thanks very much for that. I suppose the question is whether it will be unanimous or not. Certainly sentiment is starting to swing towards supporting his strategy, certainly more so in 2013 on that famous failed vote. The leader of the opposition, Jeremy Corbitt is unlikely to support it. Do we have a sense of how likely a vote is to come . When you talk about certain people, germ my corbin, we have to remember, of course, the u. K. Has been supporting other groups such as the french and United States as well in terms ever their airstrikes all along. This wouldnt be too big of a step for the military. Its a bigger step psychologically amongst the british people in terms of whether theyre willing to commit thus far. Thats the bigger question. How much have the events weighed on them and whether they feel they have the support of voters to do something. Lets head back to one of our top corporate stories this morning. Phizers board room approved buying allergan. Its expected to be announced today. Pfizer will pay 11. 3 shares for each allergan share. Pfizer will move its headquarters to ireland to secure a lower tax rate. Brent saunders will take on a senior role. Trade off 3 4 of 1 . Allergan up 5. 4 . It should be a slap in the face for the u. S. Treasury department because theyve been trying to crack down on the plan. Allergan is buying pfizer even though pfizer shareholders will have the bigger shares. Very much a slap in the face. Allergan doing the buying is the one thats benefitting because of that structure and, you know, as inversion deals come, this is a huge deal. Just in general of any deals. Over 150 billion. Abi sab, thats over 105. This is a massive deal. Its inversion. Thats what theyre trying to escape. It will really infuriate them. You can understand why these companies are trying to get this done before any meaningful tax reforms. 2. 1 billion will be added to the bottom line of pfizer. If you take a look at the numbers 12,. 5 , thats the tax rate in ireland. What is it in the u. S. . 35 . That gap, any condition, any ceo will want to take advantage of that. We need a narrowing of that break. We need a different tax code in the u. S. Which is not going to happen any time soon. No. So management taking advantages of that. U. S. Diebold is trying to create the largest atm maker. The deal values wincor at 1. 5 million. Electrolux has reached a settlement with the u. S. Department of justice. Electrolux says it will vigorously contest efforts by the d. O. J. On antitrust grounds. That follows an admission by the ceo that he made factual errors. We are going to go for a quick break. Still to come on this show, we get under the hood of the folks vag gone sales report in the wake of the emissions scandal. Should investors be worried . Well find out after this short break. Dont go away. When the flu hits, its a the aches. The chills. The fever. An even bigger deal . Everything you miss out on. Family pizza night. The big game. Or date night. Why lose out to the flu any longer than you have to . Prescription tamiflu can help you get better 1. 3 days faster. Thats 30 sooner. Call your doctor right away. And attack the flu virus at its source with prescription tamiflu. Tamiflu is fda approved to treat the flu in people 2 weeks and older whose flu symptoms started within the last two days. Before taking tamiflu tell your doctor if youre pregnant, nursing have Serious Health conditions, or take other medicines. If you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. Children and adolescents in particular may be at an increased risk of seizures, confusion or abnormal behavior. The most common side effects are mild to moderate nausea and vomiting. Call your doctor right away. Dont lose another moment to the flu. When theres flu, tamiflu. Volkswagen has denied a report in the german daily news that sales have slumped sips the emission scandal broke. Volkswagen shares down 2. 5 . Nancy is joining us on the desk. Why are shares down so much . We had this report saying sales as a result of the newer allegations, the admission from volkswagen that some petrol vehicles were affected. The last sales were in october. The admission about the c o2 goes from november 2nd. We havent seen full officials results. They said sales have been dead as a door nail. One person told reuters, thats not true. You have the meeting with u. S. Regulators and volkswagen that took place last week. Volkswagen on friday smet a deadline to submit an initial report to fix the diesel engines, the root of the problem that started in the United States. During the meetings volkswagen admitted there are some cars affected when you talk about the larger 3. 0 liter engines that affect audis and higher end models. When the diesel deif he is broke it was lower end. The total cars are 85,000. By the data it seems that the investigation, the probe is expanding. The more allegations we get, the more admissions we get. Youre talking about further implications. Can i bring in the german pmi this morning. Theres an upside in the manufacturing data. Apparently this volkswagen scandal hasnt been affecting the broader made in germany Manufacturing Sector . Thats definitely good news when we talk about the broader Manufacturing Sector. We still dont know what the impact will be in terms of jobs at volkswagen. On friday jokvolkswagen said th were affecting cap ex. Mattheus miller said they could revisit that. Theyre under pressure to maintain jobs. Talking specifically about volkswagen, we havent seen a job cuts toll there. Good news. Good news for the broader Manufacturing Sector as well. Nancy, thank you very much. Italy is looking to create a bad Bank Structure to deal with the financial structures 330 Million Euros bad loans. The measure would be, quote, Silver Bullet to kick start the italian recovery but its likely to face opposition from the eu which has rejected the treasurys plans thus far. Meanwhile, theres a 3. 6 billion rescue fund funded by the larger more secure banks. Greeces piraeus bank has raised 3. 4 million. It falls short of the capital demanded from the scenario which says it requires 4. 93 million our rows. Its expected to be filled by issuing more shares and contingent convertible bonds. Rwe may consider exiting brittain. This accord to go reuters. Empire is struggling after significant customer losses. The vfo said it would take until at least 2017 for the company to return to profit. The shares plummeted more than 21 in the last three months to trade at a 24year low. Want to take you back to the mining story because as you can see here, many of the mining stocks are really falling quite heavily in london trade today. Commodity prices are slumping. Just to give you a snapshot, london nickel down 6 . The lowest since 2003. Copper off. Theres a six and a half year low. U. S. Crude falling 3 . Gold at a 6 1 2 year low. Hard to pinpoint why we saw that decline in Commodity Prices. We didnt get any data out of china. We have the strengthening data. More and more concerns about china, whether we found the bottom or not. I think its definitely the emerging market side of thing adding to the woes in the last few months. It looks like the economy will decline by a couple of percent this year. Not sure how it gets any better in 2016. When you consider that factor and the fact that that weighs on these economies so heavily, i think that is selffulfilling prophecy. The way mortgagebacked securities started to weigh on them, if the countries like brazil, for Companies Like petrobas, its like a double whammy. Russia has its own prizes. Its not surprising that they shut that, it got a lot of attention last week. Youre right. I want to make a final point about china. What was interesting is the pboc faced the luan since the lowest rate since august 31st. A lot of people take this as a sign that more easing of the currency may be in the offing to counter what the fed might be doing in december. Maybe that was a warning shot from the pboc overnight. This may have a lot to do. Glen core finally fought heavily 2. 1 as well. Lets have an outlook at some of the other sectors in european trade. All of those declines weighing on the ftse 100 which given those declines in fact is holding up relatively well. It could be worse, of course. Lets look at europe. Germany, thats just below flat. Relative for the broader markets today given that pmis were so strong. French pmis less strong. Italy managing to eke out a slight gain. Lets also just check in on the trade in asia today. Sri is standing by for an update with us in singapore. Sri. Will, good to see you. Fairly flat session all in all in asia. The trade volumes, let me remind you, not much more on the ground. Youre not seeing any quotes for nikkei. That is because there is a National Holiday in japan. So its reducing liquidity, reducing volumes but the main drag really stronger dollar. And also its impact on the commodities. Let me pick up the e. U. And how were discussing. Strangely enough, you would have thought the Australian Market would have been suffering. Some of the market has been. The slack is being picked up by the banking stock. A lot of investors are starting to swoop on those higher yielding banking stocks. Thats keeping the market afloat. Incidentally were up for the fifth straight session. Back to the Australian Market is helping that the fact that woollies is doing well. It has takeover speculation. A bit of speculation. Broadly is the stronger dollar environment is the commodities complex and the stresses that are keeping sentiment quite fragile over here. Were trying to get the prices in higher rate viern zblmts back to you in london. Sri, thank you very much for that. Lets recap the eurozone pmi data that showed Business Growth has reached highs not seen since 2011. In france it helped in the services sector. Manufacturing improved. The germans shrugged off concerns around volkswagen. Joining us to discuss this is rob dobson, senior economist at market. Rob, very good morning to you. Good morning. Thanks for joining us. Lets kick off with germany because real blowout in terms of the performance. Much better than expected and coming off the back of this volkswagen scandal. Exactly. These numbers suggest that germany has shrugged off everything with this scandal. Manufacturing services was leading the recovery in that particular nation. Thats not too surprising given some of the stimulus and being more focused with the domestic economy. New orders rising as well and it suggests growth will be going forward. Thats increased timing and suggesting confidence is holding it well amongst manufacturers and Service Providers alike. On the french side of things, a little bit more disappointing. A little bit more disappointing. Were still seeing growth. We may be seeing earlier in the year. Were not going to see it top that what we saw in quarter three but given the back drop and how its set, particularly the hospitality industry, the french number is weaker. I think its on the back of that. We saw the coo of seamans shouting a warning on the back of the terror attacks. Political risk is deafening investment. From the ecb speakers we very much got mixed messages. What do you think the net net might be if it stays like this . If were not seeing any further terror attacks . Could it actually dampen q3, q4 gdp . It could dampen q4. A lot of this comes down to sentiment. Were talking about how the attacks on paris have dented that confidence. We have Service Providers who set their one year outlook was a little less stronger than what it was before. If that continues that would obviously be a dampening effect. However, what we could see from our numbers on france, weve seen new orders rising as well. These are good forward looking indicators. Again, we might see a bounce back in december. Do you think the daytoday changes affects mario draghi . It doesnt change the outlook for draghi. He was saying he was very disappointed. These numbers, yes. 4 1 2 year highs. Only slightly above what we were seeing during the mid year phase. What we might see, it doesnt change it under growth fund. What were seeing from a crisis indices. You could argue, in the Third Quarter we saw 0. 3 growth for the eurozone. We didnt see any inflationary pressure. 0. 3 is pretty good. It doesnt warrant more easing, does it . Might not. What we need to look at. It looks incredibly good when we look at how we could be since the Global Financial cr