>> good morning from bloomberg's european headquarters. >> this is daybreak. the anti-establishment party surged. we are live in rome. >> managing expectations. 6.5% andted at around they toned down the ambitions at the people's congress. >> donald trump shows is metal tariffs ono slap steel and aluminum with no

exceptions for american allies. >> we are live across the world. beijing asns us from the chinese leadership gathers conference.onal >> good morning. this is daybreak. and what to go radar has been going on in the asian session. these markets have a lot to fret about, whether it is the italian election or lingering concerns about the fed. will this stick? it does not look like it will.

lateber that we saw a rally and investors concluded that this would not be the thin markets mayage and after all ofview, that rhetoric and threats on tariffs. unchanged on the euro-dollar. polls in germany and the coalition with merkel. all of this has been on the move. playen with a bit of a here. the like how we got back to change and let's see the bond markets. will they handle trade?

positions speculative and the asset managing. so, the policy uncertainties with tariffs complicating this task going forward and the white line shows the short position thishey are calling on yieldsthe offers of real and bringing in support from the japanese investors. the long position is the highest since 2010. rebound and it is a battle royal for the last -- the bond has yournd juliet

first alert news. >> in the united states, the administration is planning on forffs with carveouts countries, despite opposition from lawmakers. advisers said that it thenecessary to ensure survival of the aluminum and steel industries. china has hit a growth target since the open in beijing. he also signaled plans to rein weree growth and set a low deficits target for gdp. merkel is expected to comment on votes to join her in another

coalition. trump as tariffs on european cars. all demand a german response after the political stalemate. has seemprime minister to secure a temporary reprieve from the delta premiership. they think they see an advantage. stance -- reiterated her on this. >> we have to abide by the rules that would be in effect elsewhere. we cannot just take the same without any say in them.

the shape of water has sought -- he more inclusive gary oldman was voted best actor for his portrayal in darkest hour. winners made impassioned arguments for gender equality and diversity. powered by 2700 journalists and analysts and you can find more on the bloomberg terminal. this is weighing on asian markets today. yen hitting a high in japan and the nikkei closes

out the session. a lot of weakness in the hang seng. in thiss been upside there. in terms of stocks the they are watching, india is playing if we could switch it over now, you have seen the likes of these coming under as you expect, you see this coming through and it it's on the clothes, but downhain group is closing charadee loss and

following is there. >> thanks. expectation it -- is about increased exposure details, in terms of consideration are -- , there is at value premium, as you might expect. he said that the commercial line segments was part of this and this was one of these and was a big deal in this sector.

voteere was a unanimous there on the deal. >> the anti-establishment movement seems to be a winner of the italian election. it was not enough on its own. this included the and-immigrants love the god the big loser was the outgoing prime minister and let's get the latest with francine. good to have you on this

program. populous -- populist movement. what exactly happened? you wonderedr that what happened to you. that means that some of the smaller boats are given to bigger parties. getxpected his party would more votes and this does seem to and this iss people saying that everything changes. seemshe votes we saw, it

like a lot of focus was placed on anti-immigration policy. certainly, some of the coalition , but itve a majority looks like a lot of people are voting on euro skepticism. people ins to be italy who feel anxious about something and there is an anti-establishment mood. we -- is this where the real horse trading begins?

what about the coalition forming in italy? this means that there will be remember that the five-star movement says they will not enter into coalition talks with anyone because they are anti-establishment. this would put them at the top as the biggest party with the most votes and they may decide to go into a coalition. if them saying yes sort of negates the popularity. it will be interesting. >> thank you. francine was live with the latest. joining us now is nick.

a good morning to you. extent doaid, to what the big players want to talk to and work with and be friends with others? policyis impact italian and credit? and theis a norm reality is the talks underway between the different parties and you look at the economic perspective and this is a real success story. there is a modest budget account and a current surplus. growth.s lagged with growth isely, but the

there, albeit lower. the eminent issue? absolutely not. see the clear italian debt to gdp ratio is traveling in a different direction and you the economy is going well, with the risk is that this story gets worse. i could have showed new the french debt to gdp ratio. , but is this an

eminence issue? probably not. internallyll held you look at the bond spread and there is no reason it can't get back. ande have exits polls numbers get updated and we won't know the exact numbers for a few hours. inone gridlock like another italian politics? >> from the market perspective, are either doing or implementing reforms and you look at some of these is thentals and the key

modest budget deficit and that tells you that italy is well-run. >> they take issues about the limits on the budget deficits. with the french and the german on that. beenese have never really enforced. you look at these countries that run a greater budget deficit and let's be honest. there is this term and it compares to the portuguese story and you could pick off another to defy the chart. i don't mind. the thing is that the markets are not near the levels.

they are things happening this week. it may change. this will not change rapidly, broadens they conversation with the european bond spectrum. >> this is a correct chart and tells the story that italy is going to underperform and we could afford ireland and spain and and the market is rewarding this reality and is that there is far from and >> thisspective

is integrate scenario. is there more of a movement to be had? andhat is not surprising you think about the gridlock in italy and the risk is that this is thenger and the risk ecb raising interest rates. >> ok. consensus.e market china in theout the growth and theyt of around 6.5% and will look to intensify the push

on stability. it is good to see you this morning. do the chinese it lacked the ambition on the outside? good morning. >> good morning to you. they like setting that bar low and exceed it. 6.5% last year and said they would tolerate the higher pickup in delivered a the end of will growth and took out the addendum with the line and stock with its. lowering a, they are

deficit target and we expect seeingd we are also monetary stimulus and that tells me the mandate and the marching orders are that we will have and less risk. how long can xi stay in power? >> this is an interesting development. a lot ofvered parliament sessions and it is often talked about being a rubberstamp. it is, but the delegates take the job seriously and this has

to the game to change the constitution and these delegates may need to approve the move by a two thirds majority and we are hearing that they got the explainer on what they are being asked to vote on, abolishing the term limits that the president has so that he could continue on. he is also the head of the thesery and the party and are the positions that are more important and he looks to include the presidency and not have term limits. and is aubberstamp foregone conclusion, but there will be some debate. >> the plan is consistent with a

slowdown in growth. is about neutrality. what more do we get over the next few weeks and will this be about debt? this is global perspective with the reflation is china -- .eflation in china >> yes. and the minds of delegates and regionalin the enclaves and discussing marching orders. that could be on the minds and hegot the final dates and has been in this job for years

and is the longest-serving and will be stepping aside. the individuals are in the running, but we will not know until march 19, when they roll out who will be the next central bank governor in china. potentially a big appointment. >> thank you for joining us with the latest. is next.h us you listen to the latest out of china and that target on growth and this shift continues and is not so subtle. what does this mean for your universe? is this the lens you are looking at this through? >> this is a stunning level of the risk is very much

on the upside of the number and this is arguably much higher and by industry and more through consumers. this g to watch is a level of debt. a lot of those companies and at a household level. >> last year, we worried about and thisng from china is a fiscal side and there will be a squeeze. what does all of this mean? what bankers are trying

to get a hold of. >> it may mean that others need more. you think about the global growth and the policy. definitely doing more. think about the tax cuts and reforms and it adds to deficits and you think of the other economies. governments can do that. it is a level. >> we have heard about the need for help and governments. you talk about the corporate issuance and it came down considerably from where it was. will that give you more comfort or hope? it is look at that and

good and you have to extend that more broadly to the emerging-market corporate's and you have the improvements in quality and this is an interesting factor. you have this market and it is interesting. that will come back to ramification shortly. what do we have next? >> the political stalemate as ended. is the work starting for merkel? a lot of answers are being sought from the lady now. voting and the membership

votes to go ahead with the coalition will more time. this is bloomberg.

>> good afternoon. these are live pictures. in italy waits to find that the result of the election. hungxit polls suggest a parliament. the euro is not moved. this week, this is what we're looking at. >> you have the european council circulating draft brexit negotiations before the u.k. meets.

>> we have a news conference from mario draghi. will we get guidance on the guidance? >> you could get a rate hike. governorof japan speaks. what more will he say? >> this is quite substantial. let's check in on the markets. good morning. >> let's start with the equities. aversion and risk brought-based losses in japan and australia. that and well it had that target of 6.5%.

happening,at what is it shows the euro is pretty much unchanged and you can see the year or chart and there are some technicals i am watching on the this fluctuates a moodn the session and german grand coalition outcome plays into this. blue andg average in it shows support levels. and thehe double-bottom levels to defend. this meant a key support range and you got to see the greed index and it shows the bears are struggling to keep their hold here.

past 130 long not be so easy. in the strengthens fourth straight session and there are some who say what you policies withrade the clinton administration. are a way away we are around 2.3%. the key thing here and does that mean this is inflationary and does the threat

of the global trade tensions mean that goes down? permutations.any donald trump is sticking to a plan to keep tariffs on steel and aluminum. they have been are up to corporate heavyweights in the united states. >> investors are looking to see if trump will flinch and what it means for the future of global trade. good andrade wars are many of us will have read the bloomberg copy. you?is the risk here for a lot of us have looked at the scale and it is one thing to look at that and another to make a judgment.

>> you look at the impact of announced and you youget the escalation and look at what happens with these kinds of things and this gets into inflation. you think of the asset prices the margin is less good for things like equities. >> there was a clear point there and we will come back to that in a moment. in terms of the asset classes, we have gone and looked at the the dollar dropped and you have the s&p 500 drop

you can run the numbers one entire in inflation and it is overreaching on the equity market. the other aspect is the rates of growth that are pretty healthy. bankse the central committed to raising rates. >> maybe this has reverberations that has bigger impact on the growth stories? >> it could. looking that this is likely to raise the rates and you look at the data release and it is strong and robust and this

is something that could play out over a long time. what the fed will do. what doesarly and trade knockoff? this is not particularly material. this should be a big determinant of bond prices. there will be dumping in the released. i want to take it back to what was touched on.

uncertainty that is rising to a 16 month high. argument into the top with the strengthening yen and this brings the japanese and. or is that aat reflection point? and it is aat this classic sign that there is no reason it could touch 100, and more of this getting intense. >> is this a pressure valve? there is dollar weakness.

again, you are back to a stronger euro. make sense? we would celebrated that premium and this is not the good donald they like on tax stuff. >> it is marginal. at the impact of tax reforms and cuts and it overwhelms trade and for risktrong case assets. 3589, for anyone with a terminal.

you have the high short positions and they are pushing for that area. then, they have the long thetions and this is classic battle royal. does this mean that the market is in a point of capitulation? are we building? what does this say? and theya tug of war is one ofer and this the worst starts on treasuries managers reflect a there is aand

combination of corporate and bond funds. next stays with us. if you are a customer, you can watch and get all the functions we have been using and ask a question. this is the button on the bottom-line. now, in germany, the social democrats voted to join the merkel government and clears the final hurdle. let's go to matt. is this a victory for merkel or just relief? large victory for the

coalition because of the concerns that this would not happen and the base has been against the coalition and working against merkel and the partners, but they approved this and it was a wider margin of victory van previously expected. definitely a victory. there was a burgeoning trade war and she has to deal with that. she has a deal with china, and this is one the big challenges of the century.

issue andthis was an the partners are on the same page, as far as this. both sides have a lot on their plate. we need to hear more from merkel. while in the program, interesting to touch him when the corporate stories in germany. ais is something that is not surprise. we of the timing on this coming quickly. andt of this ongoing plan

rid ofooking at getting this should and raise $5 billion for him and it is a huge step for the markets. >> ok. thank you very much. matt gets all the great gigs. joined for an exclusive conversation. a time of, uncertainty. we will have the latest on the election results. >> could this be the start of it

all out trade war? this is bloomberg.

>> is 1:47. what a beautiful site that is. beautiful colors. gold, blue. what do you think? the desk seeking to leap ahead in premium assetalty growth. closingmium on the price since taking the top job.

they are refocusing on businesses while shedding some pressing ahead with the largest engineering company. plan as the company -- shares were in the range of 26-31 euros each. package worth -- that was as they slumped to a is likelys and this to provoke consternation.

the restructuring plan would impose heavy losses. paying women less than male counterparts could hamper growth in major a cup -- major economies. this matches that of sweden and the gains would come from increased participation in the ,abor market com entrepreneurship, and jobs. no one >> the anti-establishment groups surged. initial results point to know group commanding an outright majority.

let's go for analysis. francine is joined i a guest. and she is the institute of national affairs director. thank you. what does this show us? we are seeing the euro-skeptic and anti--immigration parties. >> you look at this and it is not just about italy. the spectrum is the spectrum that divides the the closed and there is a large majority, including the five-star movement on the closed side. anti-trade.tion, this is winning the upper hand.

>> the recovery is here in italy there are people on the streets that do not feel like they're part of this. >> this takes time for people to it ise down and relatively slow. people are as angry today as they were. >> how do you explain the participation? >> there is an element of .ntipathy and it is incredible it is almost beyond what he says or does. he has lost his mojo. the democratic party would be in a better place to be that it is.

this is a nightmare and, if we get a hung parliament, who will get into a coalition with who? will we have a nightmare scenario? a a possibility or even probability. it depends on whether he maneuvers a way of the situation be they suggest that would at risk, in terms of programs. going back to that open and closed division, -- get a five-star

movement government, what does it look like for reforms? immigration, complete they don't think it would last very long. now, the engine is ready to and my fear project is that people are going to get angrier and angrier. >> what does this mean for the euro? the euro, but it didn't show up in the platforms. part of this?in pro-european

there is kinds of reforms that will be put in place and they will not be in the perceived interest and may end up fueling further euro skepticism. and wes a silver lining need to have these people and government to realize what a mess it would make because the danger of all of the and the next time there is 49% or 60%. >> this is deficits.

this is some of the anti-establishment parties. >> there is a distinction to be i think they would not be able to do much because of real damage thing done. how will the markets react? will that create the indirect risk? >> thank you so much for joining us. things are looking pretty cool. >> let's see how the bond markets heat up. up next, the anti-establishment

this.is back to

manus: good morning from london. anna: this is bloomberg: daybreak europe. manus: a five-star performance. initial results suggest a hung parliament in italy's election as anti-establishment parties surge. anna: managing expectations. target -- its gdb it's gdp target for about 6.5%. we are at the national people's congress in beijing. manus: the u.s. president stands by plants to slap tariffs on steel and aluminum with no exceptions for american allies. ♪

manus: a warm welcome to daybreak. the markets face a variety of concerns. tariffs from the u.s. hung parliaments in italy. what does it mean for markets? stoicism. london is up by 0.6%. given the risks in the markets, -- london is up by three bips. no higher if possible in practice. "higher ifce possible" was omitted. we are turning a little red on the dax.

market.he paris i would take a green splash anywhere on the screen this morning. anna: take green given what you are seeing in the asia session. marketsf concerns for that deal with equity markets. to put it into context, it is the american tariff story and the italian election story. as we saw from the european futures, there is a downside yet to come in europe. as a p futures pointing firmly down and in the red. bounceay, we saw a late in equities. the s&p staging a late rally on a host of market assumptions. trying to put the tariff story in some contexts. euro-dollar, a little movement.

this was unchanged. as we go through the morning, and we do not have the definitive results of the italian elections, nor do we have the answer to who will form the coalition government, but we are seeing some weakness coming through on the euro against the dollar. can bethe btp's atulence at -- virulent times. we have to double check that because at the close of business on friday, we were seeing a spread of 130. you have an excessively short btp market out there at the moment. i can tell you this is not right so let us move on. italy year bond yield in -- the bond market is grappling.

,t is grappling with paris policy uncertainty and a more aggressive fed. the treasury market is underpinned by global uncertainty. in markets say that the risk terms of the coalition building in italy is what is going to drive the market. liga along the with the closed party that we have been hearing from francine's guests. there is a reach for haven status. u.s.tte: the administration is showing scant sign up watering down its plan to impose steep tariffs on aluminum and steel industries. are defendingsers

the move saying it was necessary to ensure the survival of the american aluminum and steel industries. china has set a 2018 growth target of about six point 5% as a national people's congress opens in beijing. the annual report omitted attempting to hit a faster pace if possible. marketa markedly lower deficit level of 2.6% of gdp. angela merkel is expected to comment publicly today on the social democratic party's vote to join her for another coalition. this as she moves closer to a fourth term as chancellor. it comes as donald trump's , italian tariffs elections, all demand a german

position. has achievedister a reprieve. her conservative party thinks it's say -- it sees and if in the brexit strategy she has set out. >> if we were to accept passporting we will have to abide by the rules being set elsewhere. given the importance of financial stability of ensuring london, we cannot take the same rules without any payment. juliette: "the shape of water" has won best picture at the oscars that is facing a post harvey weinstein industry.

gary oldman received best actor for his portrayal as winston churchill. a sense of change was palpable at the dolby theater in los angeles where winners made impassioned arguments for diversity. global news 24 hours a day powered by our 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . you can see all of the red across the asian markets. stocks are down for a fifth consecutive session. the yen is holding at a 16 month high on the back of the italian elections and the concerns about a trade war. 0.7%.kkei closed down flat movement coming out of the main chinese market but a fair amount of selling coming through from hong kong apart from the defensive players and a resource asvy asx 200 closing down well. india is coming back online after a public holiday on friday. and you look at the aluminum and

steel players they are still mostly under pressure. let us look at some of those players particularly in india as they play catch-up. this is a malaysian company down by about 9% and this indian steel company is off by about 7%. to the upside, the retailer in australia is rising the most on record. a little bit of bargain hunting pushing that stock up by as much as 18%. ♪ anna: let us turn our attention to italy. and the market reaction. the italian bond market, futures are falling by as much as 132 ticks out the gate this morning. you have a chart that shows the gap. manus: these are the futures

down by about 1/12 -- 112 ticks. we are trading at 1.9% in terms of the yields. this will have a consequence in the equity market in italy and the barnes and -- and the bond and the banks. anna: the current account shows it winning about 33% of the vote but not enough to rule on its own. manus: a right-wing alliance including the anti-immigrant lega may when slightly more -- may win slightly more seats but it is unclear if it can form a government. the clear loser is renzi. anna: francine, good to have you with us again. a lot of unknowns as we look out at the weeks ahead. in terms of the results, put them in some context for us. first of all, italian

politics are always complicated. italian politics usually involve haggling. there are three takeaways. we are waiting for final results. first of all, before the blackout period, the polls were not right. we understand that the anti-establishment, anti-people in power are much stronger than expected. , the euroe lega skeptics. if the latest figures are correct, the five-star movement would not be able to govern on its own what it would have the highest majority. the biggest losers are the democratic party. the party of renzi. the party of the prime minister for the last 18 months. the italians are fed up. it might be immigration. it might be that they are fed up

with old-school politics. but they want a change. manus: in terms of what happens next, there are certain pieces of theater to go through. the coalition building. this is a country used to the comings and goings of politicians. what is the thinking on the ground in terms of five-star, lega, and berlusconi. what is the current thinking now that we know more about the numbers? of thee: because numbers, everything seems up in the air. if you look at the predictions from before, we thought berlusconi and his party could have formed a center-right coalition. now, you can see that the lega and they say they will not enter politics with anyone else because they would lose credibility. believe they could

try to go to the president of the republic and say because they were the first party with one third of the votes, we understand, that they want to form a government. if you think ideologically, the five-star movement could form a coalition. it would be difficult with anyone but someone from the northern liga. at the moment, it is every -- it is everye percentage of the vote that will be counted. asking lot of people questions about whether the firm statements about willingness to enter into conversations with others before the election, whether they will hold true. we have seen in other electoral theaters that that has not been the case. francine lacqua on the ground with us in rome. joining us now is tristan. keeping an eye on the detail of

these markets and what is happening to italian debt. at the moment, the italian government yield is spiking up a little bit at the moment. 3704.s chart number what is the context that you look at this throw? to our guest from j.p. morgan in the last hour and he was very relaxed regarding risk. he says it looks like deadlock. italian politics. he was not too concerned. guest: that perhaps it is why the italian public is disillusioned with mainstream politics. is more of the same in italy. unstable politics. then really nothing too much changes and who knows --

anna: is that your view? or do you think there is more: --or do you think there is more risk? tristan: we have seen this happen in greece. we will have to see what the coalition brings out. for me, the more important thing is to focus on medium-term fundamentals and growth in europe is pretty good. 4% gdp growth is pretty good in europe. manus: how much equity exposure do you want to face? goodtalians have a propensity for a good bit of drama. make or break for italian stocks. may have major long-term resistance. could this unseat the equity market? this is one of the stronger performance.

inclined to buy equity dip? market -- own italian italian equities in what i manage. a lot of people focus on the u.s. and say you have to be bearish on u.s. equities. oryou do the same for italy european equities, it is very low. .ne should be optimistic earnings have been dreadful in italy over a number of years. someould hope with time better gdp growth and those profits can recover and the valuation even on today's profits are very reasonable. anna: italian companies can borrow more cheaply than the government.

real stock pickers market, the italian market? -- do you-managed find well-managed companies? tristan: i have index level exposure and banks. the banks are interesting. they have had a good run from the middle of 2016 when the conventional narrative was that italy's banks were finished amidst the horrendous banking crisis and the sector was very depressed. ecb raises rates in the next 12-24 months, italian banks will be big beneficiaries of that. are clear signs of improvement in terms of .nloading npl's

i think we see clear signs of progress there. is aeneral growth factor good reason to hold these banks. manus: stay with us. we are getting more reaction on the italian elections. tristan hansen will stay with us. anna: let us check in on the markets. this is what the futures suggest we will see across the european equities. pretty help -- pretty heavy selling across asia. the longer-term story is that we are expecting to be down in the u.s. session as well. despite the bump in u.s. equities at the end of friday's session, the downdraft is what we are seeing. the german bonds are in that picture for euro. and so are the italians. magic. this is a movement we are seeing in italian bonds at the moment.

prices have moved higher in yields. manus: it will be interesting to see what happens in those btp's. the spread over germany is 150 basis place. ubi says you will want to buy on weakness in terms of what could be the outcome of five-star and lega. that is a possible risk. let us look at the u.s. president trump is sticking to his plan to impose across-the-board tariffs on steel and aluminum imports. a raft of corporate heavyweights in the united states has something to say. is stillstan hansen with us. let us get your thoughts on another subject and that is around the global trade story. we were talking in the last hour about the precious -- about the

pressure points for investors. including fx. wed?is the end of the -- of the wedge? see if: we will have to it is the end of the wedge. we don't know what the response will be. the terrorists -- the tariffs apply to quite a small area. on the currency side of things, yeah, i mean one should not be worried about being confused about currencies because they can be quite confusing and they can move in a lot of counterintuitive ways. the yen has a bit of a bid but it is not a massive move. saying 100.was and nejra said under the clinton era, the dollar-yen was --

anna will not join the punting on that. in terms of market reaction, the five-day s&p -- this is the tariff tantrum. lastbillion was wiped out week in the u.s. in equities. --you run the numbers, point -- the market reaction so far has far outstrip the negatives in reality but this is about the potential tit-for-tat escalation. on dips like this, do you think there is more risk in equity versus the bond market? how do you look at the risks amplifying from here? tristan: i do not think this is just from the trump tariffs. we have gone from a period

earlier this year when people were very excited about equities and the sentiment was greatly improved to as warren buffett said in his letter, one of the examples of when the market goes from green to red without stopping at yellow. after a period a very low volatility, we have had an upset to the market and a sharp decline in february. the market is still dealing with that. people are still feeling bruised and worried that this is the start of something more sinister. anna: what explains that to you? is it about a type of fed that people have expected -- slightly more hawkish? tristan: if the fed is part of the story, it if you look at u.s. yields, they have risen quite substantially this year already. , over the last six weeks or so has gone from 2% up

to 2.25%. repricing has been its expectations for fed policy in the coming two years and powell in his testimony last week -- basically he said we were on course for three hikes. the data is good. we have had a tax cut hinting we could get more than that. i think the market is dealing with that. be honest, volatility is something that is normal. last year was abnormal because volatility was low. manus: we are trying to understand where the tariffs goes but the reverberations in dollar, perhaps a lower dollar has had an impact on emerging markets and where you might want to add exposure. you have to see out the tariff story. the consequence of that, do you

want to reallocate more into emerging markets on the back of the dollar softness? tristan: the knee-jerk reaction for the market may be to push the dollar lower against the yen. i do not know if that will be a permanent reaction. i would not be making my currency allocations on the back of how i think the tariffs are going to pan out. i think there are far more things going on and currencies can be unpredictable. in terms of the global market, equity, particularly outside of the u.s., and also in emerging market bonds -- we think they are offering real yields. from a medium term point of view, i think that is where the value is. a micro this more of market now? : i hope not because i am a macro guy. in thee have some m&a's

insurance space. ahead of itsleap rivals. for a little more on the story, let us go to savio -- fabio. axa. this is a moment for the ceo. he wanted u.s. exposure. what do you think? abio: the answer is the xl board accepted the offer and they are going through it very quickly. would haveappens, ax fantastic conditions with rates remain low. they would have an ipo in the

u.s. which would also help finances. we will have to see the market reaction to see if the price that axa is offering is right or not. anna: what is the extent to which they compete already? overlap inerms of xl did not have that much presence in insurance in north america. they were looking at marine aviation, health and agriculture. almost every part of the economy. and in reality, this is really xl'sg up to in many ways positions. axa was much more present in life insurance in north america. manus: in terms of the profile

of axa -- this bolsters its casualty cover. fabio: sorry? axa,rms of the shape of does this make them more exposed on casualty coverage in the u.s.? o: definitely. that is the direction they are going to. as the second step of the ipo. already reducing its exposure to financial risk in north america. this acquisition allows them to go further in the direction of getting lower exposure to financial risks. and bigger exposure to casualty insurance. anna: fabio, thank you so much for joining us for the latest on

the m&a in the insurance sector. we have the update on siemens and healthineers. manus: will the spreads widen? ♪

manus: monday morning, good morning. guest: imo am alongside matt miller who is in berlin. miller alongside matt who is in berlin. ♪ gridlock in rome. populous parties outperform but italy is headed towards weeks of coalition talks after an inconclusive election. we will take you live to the italian capital. questions swirl over how long angela merkel will last.