welcome to "street signs." i'm willem marx. these are your headlines italian stocks recover led by the banks as reports suggest prime minister designate carlo cottarelli is holding further talks about a new technocratic government. the bond market stead dir i after the biggest spike since 1992 over concerns of a fresh election. chinese state media fires back at a u.s. plan to go ahead with tariffs saying beijing is

ready to fight back. and an own goal for vivendi. shares fall after its subsidiary loses its right to broadcast french football league matches. carlo cottarelli is holding informal talks with president sergio mattarella today according to a reuters source. yesterday cottarelli ended discussions and left that presidential palace without detailing his own cabinet proposals. some of italy's political parties called for fresh elections as soon as late july looking at some of the major moves on the italian ftse mib. bank co bpm up about 2%

bank co generali also up 2% the are powering ahead after a negative day yesterday some of them down 6% on the day yesterday. those stocks starting to come back a bit i'm happy to say my colleague, claudio, is joining us from milan. what should we be watching for today in terms of italian assets after that disastrous day yesterday? >> good morning. as you were saying, we are seeing these banking stocks recuperating after the strong losses registered in the last couple of days yesterday tom stosome stocks do. so they are recuperating the italian market was the best performing market up until two weeks ago, and then lost all of it's gains it has gotten since the beginning of the year. so a market that has shown a lot of volatility.

as far as stocks are concerned, banks are higher this morning, recuperating some. and you are seeing a few stocks in negative territory, among them cnh and industrial. this goes to show there will be more volatility. nothing significant has actually happened in terms of calming the waters politically speaking since yesterday. cottarelli did see the president yesterday. it was expected by evening he would come out with an approval on behalf of mattarella, the president, for his cabinet that did not happen he left by a side door yesterday evening and was expected there once again this morning. that's where he went again, talks are ongoing regarding this cabinet elections could be held as early as the 29th of july.

what the parties are intending to do is still not clear if they were to go to elections, depending on the time they have left, that's when they would make decisions about how to campaign, what to campaign on. we saw the bond market slip. you mentioned this widening of the spread yesterday that's something we had not seen since 2011 a widening of about 50 basis points we saw the spread go to about 3.70 yesterday today it's down around 2.70 basis points but this spike on concerns that italy could exit the euro, that was one of the concerns that came out on the heels of this cabinet that was nominated by this coalition of five star and lega there are a lot of elements that are still somehow creating a lot of jitters on the market

we will continue to watch this market and awaiting any news regarding this technocratic government that is expected to be announced within the next hours. >> we will be watching that very closely. we're also joined by nicolette james. what difference does this make to your outlook if we see a fresh alliance between lega and five star? >> are no surprises since the elections. this was one possibility admittedly it's the worst case it's high drama in italian politics, for sure nothing has changed now. this coalition has potential greater fiscal risks

>> we heard from the central bank governor yesterday that the italian economy is doing okay, is in reasonable shape and is now self-sustaining. debt 130% of gdp clearly the cost of servicing that debt is astronomical, even if you look at the timeline on that debt. if that is not resolved, that's going to continue to be a problem around the neck of the italians we heard that from all political players there. they all said that italy ends up as a slave to the markets because of that. even heard that from mr. cottarelli if that's the case, do you foresee a day when the europeans and brussels may be reconsidering on how that debt is structured? >> the key thing about italian debt, the level of debt is stable it's growth. italy needs growth the average cost of debt is now around 3% compared with 4.4% in

2012 it will take a long time the average debt maturity is seven years. it will take a long time until that has impact. the problem we see is growth italy needs growth we have to wait and see what the final agenda of a new government in italy is going to be and if that government is able to generate growth. at that moment it's not clear. >> you're not a futureologist, but i want you to address the future what's the best scenario for italy? >> we want to see consistency in the medium term growth projections fo italy has been showing improvements the debt ratio has peaked. we don't want to see more delays we don't want to see a material increase in debt for that to happen we need italy

growing, more reforms. we don't want to roll back a stretch of reforms many reforms are put in place and are bearing fruit. italy is growing nprs are declining disposals are going quite well the financial sector stabilized. the weaker euro will help italian corporates a lot of good things so we have a stable trend on italy. >> you did not mention pensions. those have been a problem for lega and five star are you worried those will be reversed >> those are really disappointing. the cost of that is less than had been thought initially, though the most costly reform of taxes and the fiscal system is the flat tax we have to see if that is successful in generating growth.

there's no historic evidence of that happening >> we need to see the facts. we will not take a knee jerk reaction on italy. we need to see the projections out of a new government formation. we have to see the discussions around budget 2019 these are the things we're looking for going forward. >> you talked about the word costly yesterday the italian government sold 5.5 billion euros of six-month debt that went from a negative yelled to above 1% over the past month. that makes it very expensive in the short-term for italian taxpayers, doesn't it? >> i think markets today calmed down a bit the parties are now becoming far more mindful of the impact of the statements they're making on the markets and on the cost of

funding for italy and the president is stepping in to work in the best interest of what's right for italy. i expect things should calm down a more pragmatic sense will overcome the political situation in italy >> do you think the eurozone back stops introduced in the last few years will be sufficient to contain any potential contagion we see beyond this domestic italian political problem we're facing here >> the back stop was an important part of crisis management in 2012, during the financial crisis omc has never been tested. these things have conditionality governments want to try to avoid that if they can these systems are very good. >> i asked you about contagion i want to bring you some sound from an interview of olivwe l oo

blanchard. >> there are two issues. the first is psychological contagion. if italy does it, maybe the other guys will want to do that. i think that's fairly unlikely for this, the ecb can help and central banks of most countries will be given liquidity to do it i don't think that's an issue. the issue is if italy were to drop out of euro, then we would have to look carefully to the position of the creditors. i suspect the eu would do what's needed to make sure there's no contagion. i'm not worried about contagion. i'm worried about italy but not the rest of europe it would be tough, but the rest of the euro can survive. >> so worst case scenario is italy pushing for a full exit from the euro. what's the best-case scenario in

your view? >> which ever government wins the elections or announces a program and then wins the elections has a program which satisfies some of the base and some of the anger is justified so they have do something but remains fiscally reasonable. it has to send a strong signal that it will do what's needed to not have this. it can go higher than the case before, but not much after this, the markets will not like it. it has to find a flnarrow path between the base and investors i think the path exists, but it's narrow. >> that was olivo blanchard, the former imf economist >> we don't like the populist parties, it's a step away from hate, from xenophobia, some of

the fascist tendencies we see. we feel democracy in europe is going through a difficult phase if not a crisis. why? the people feel somehow disenfranchised and the economy is not working for them. they bailed out the banking system the banking system is doing very well, but then it's not making a material difference to them. there fourth left ha therefore the left have a chance to build a political platform around the future of work. at the end of the day i don't think these parties have an economic agenda or a business agenda it's based on division, hate, maybe winning elections, when it comes down to it, there's no clarity or coherence to the economic measures they're bringing they're not talking about strengthening collective bargaining >> that was phillip jennings there. i want to ask you a final question on all of this.

it seems there's been more twists and turns than imaginable the past few weeks, though nothing has really changed since you first came on set. what should people watch for in terms of confidence building measures >> we need the formation of a government, or we need the calling of fresh elections we need to see what lega's next moves will be. all these things we have to assess and of course there will be uncertainty >> you think the end to uncertainty is this new government or fresh elections being called >> and the formation of the new government is critical >> thank you very much for joining us >> thank you. i'll speak with sandro gozi at 10:30 cet, stay with us for that coming up on the show, billionaire investor george soros is worried another

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welcome back to "street signs. some news breaking mateo salvini the head of the lega party says he is in favor of new elections as soon as possible but doesn't want them to be july 29th, the day before my birthday, because that would be disruptive for many italians. as far as yields, something we've been watching, the italian two-year, a number to watch dropping significantly down that yield compared to some of the numbers we saw yesterday ten-year worth watching, down almost 3%, that yield on the day so far you can see the impact across europe pretty significant in portugal but the contagion that people have been concerned about seemingly not so significant when you look at other players, spanish bond market there. in terms of the currency, the euro itself had a terrible day

there. strengthening a half percent against the u.s. dollar this morning. speaking at the european council on foreign relations, george soros warned the eu could be on the brink of a financial crisis. >> looking ahead we are now facing determination of the nuclear arms treaty with iran and the destruction of the transatlantic alliance this is bound to have a negative effect on the european and particularly on the jeegerman cs and cause other dislocations the strength of the dollar is already precipitating a flight from emerging market currencies. we may be heading for another financial crisis that's the last thing we need. >> i'm joined by the head of global markets of mufg

derek, following up on that, the strength of the dollar, what does that mean in terms of the euro >> i think we had a pretty big move in euro/dollar. a large chunk of that came before what's happening now in italy. so i think the early stage, we would estimate just on a number of different metrics that the risk premium specific to italy over the last couple of days or week, we may have about three or four big figures priced. so the broad dollar strength we had prior to that explains still the bulk of the move lower we've had in euro/dollar over the last month. >> should investors be concerned? are they concerned that fresh elections in italy would become a bit of a referendum on eurozone membership? >> i read that quite a lot for sure because of what's

triggered this and mattarella's reason for rejecting the finance minister related to his euro skepticism inevitably there will be an element of that. i think the coalition and five star and lega, their success was partially built on refraining from rhetoric in the single currency, which many in italy believe was the downfall in france in relation to marine le pen. so i don't see them changing tact polls suggest that lega made advances over the past month and ultimately remain cautious in relation to the single currency. that's a single subject for households and uncertainty related to that can create an element of reluctance and voting that way i think they'll stick pretty much to what brought them to the success where they are now >> mr. draghi had quite a set

game plan for quite some time now for qe and timing when he will end that buyback program. do you think that could change based on these circumstances >> i do. i don't necessarily buy -- of course they can manage liquidity on a day-to-day basis, helping the periphery in the periods of ill-liquidity. the ecb could be an important element of that. outright blatant discrimination against the likes of italy would not necessarily be consistent with the monetary framework in place at the moment. nothing has been legislated for in italy a lot of the senior ecb members have spoken about the fact we need to wait, we need to see what becomes law in italy and make the judgments i don't see any change in the way in which the ecb behaves in terms of the end of qe, again, you could argue they would be encouraged to end because they're given tacit support for what's happening in italy.

at the same time if the macro economic conditions more broadly deteriorate, i think it's inevitable there will be potential delays in which they reverse their current stance >> we heard from the italian central right governor yesterday that the economy is in good shape and fully self-sustaining. in terms of the european wide perspective, are there economic indicators overcurrented about a -- you're concerned about >> we are watching closely across the whole of the jerusalem is core inflation. linked to that wage pressures. there are early signs that we are beginning to see that. in particular in germany, where we had a wage deal which is 4%, a public sector wage deal of 3% over a two-year period so, there is evidence there in certain countries that wages will begin to pick up. if that materializes that would put pressure on the ecb to move

away from the current stance of course we're in a situation where a crisis could come rapidly because trust has been lost in italy. italy being the third largest economy in the single currency and that has potential growth consequences for the overall >> it's not just george soros, quite a few guests have been talking about contagion. looking at the spanish bond market, it doesn't look like it's impacted. the portuguese, when you look at the peripherals in europe, are you concerned about contagion? >> i think olivo blanchard earlier spoke about psychological contagion. i think that's right it's rational for investors to reappraise their risk analysis in terms of these investments. but i think there are significant differences. in particular in spain notwithstanding the risk that emerged in recent days

spain and ireland have been the poster boys of coming out of restructuring and seeing their economies adjust their competitiveness to levels where they can grow quite strongly so spain has been quite a positive story therefore over time i wouldn't expect that contagion to be as persistent as it's been over the last number of days. >> just returning to italy specifically, is there a buying opportunity there with stocks in terms of opportunities for a price increase, a bounce back from yesterday is that cynical? in terms of the investor mindset, you're looking at this uncertainty in italy you're looking at policies being put forward by leagga and five star, is there reason to park your money there now >> i think there is. you asked the question why did president mattarella do this he's not a stupid man. he must have known what that would do in terms of accusations and ignoring the democratic process. of course the financial turmoil that's come in the aftermath of

that is potentially a warning arrow shot across the coalition that tells them they need to be very, very careful and they need to come up with a reasonable, credible, fiscal plan that talks to their support domestically but also talks to investors and avoids that significant flight if that happens, their time in power will be limited because there will be a major crisis that will not restore confidence and support in policy. so there is a narrow path in which we could be going down that would create a buying opportunity in italy >> thank you very much for that this morning appreciate that insight. vivendi will no longer be able to broadcast french football after losing out to a chinese company. the pay tv channel which held

the rights for 34 years said it would consider sub licensing and paying the chinese in order to broadcast the french league games. and sir martin sorrell has been appointed executive chairman of derriston capital. last month he stepped down as ceo amid allegations of misconduct coming up, i will be speaking with sandro gozi stay with us gins to change whicy cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

welcome to "street signs." i'm willem marx. these are your headlines italian stocks recover led by the banks as reports suggest prime minister designate carlo cottarelli is holding further talks with president mattarella about a new technocratic government the italian bond market steadies after the biggest spike since 1992 over concerns of a fresh election. chinese state media fires back at a u.s. plan to go ahead with tariffs saying beijing is ready to fight back. the imf warns trade frictions pose a risk to xhchina's econom.

and an own goal for vivendi. shares fall after its subsidiary loses its right to broadcast french football league matches dragging down one of its major shareholders let's take a quick look at the u.s. futures ahead of the market open after a terrible day on the dow the s&p 500 looking to open up ten points the dow jones looking to get a positive start with an implied open above 100 points. the nasdaq looking to open slightly in the green. in terms of the european markets now this morning we had an interesting set of 24 hours over the last day or so if you look at the european markets yesterday, they all ended negatively this morning the reaction has been more positive some of them doing quite well in terms of the ftse 100, that's back in the green. the ftse mib in italy back up 1% in paris, the cac 40 is down

0.62%. the euro is restrengthening against the u.s. dollar as is the pound, strengthening but a tenth of a percent the dollar weakening against the yen and swiss. it's a story of dollar weakness rather than euro strength. in terms of that italian story, carlo cottarelli is reportedly back in talks with president mattarella this morning inside the presidential palace. yesterday he ended discussions and left that presidential palace without detailing cabinet proposals. some in the party have called for fresh elections as soon as late july. five-star movement leader luigi dimaio said he is willing to work to resolve this political crisis >> translator: we still want to go back to the polls as soon as possible we're willing to collaborate, including with the president we want to be coherent but

collaborative in order to resolve the current crisis it's certainly not a crisis we caused if the markets are worried italy could leave the euro, that's because someone has been saying this government wants out of the euro despite that not being in our plan >> the budget commissioner that apologized after suggesting the reaction of financial markets would show italians how to vote in any future election he issued a statement saying he fully respected the will of voters being left, right or center, and in every country oettinger's comments sparked criticism from mateo salvini who called for the commissioner to resol resolve. >> translator: this mr. oettinger today in strasburg said it will be the markets that will teach the italians to vote better you can see the disrespect for democracy, liberty, free choice, free thought and the free choice

of 60 million citizens from this man who has not been elected by anybody and represents a power of that of germany and angela merk merkel's party, who runs the european union and said silly things, you voted incorrectly. markets will teach you next time to vote better this wish for german control feels a bit like a threat. >> in the last few minutes mr. val seien sam salvini said he would like fresh elections as fast as possible but holding them in july would be disruptive for italians and sergio mattarella has been urged to send italy straight back to the polls. i'm happy to say joining us from paris is the democratic party mp, sergio gozi.

when do you think these elections will take place, since your party is calling for them >> i think we need political clarity, and the election could be held already by the end of july, but it attends what is going on now with mr. cottarelli and also on what the two major groups, parliamentary groups, the five star movement and lega want for our country we don't understand. one day they say let's go to elections. the other day they say we have to impeach mattarella. the third day they say we want to collaborate with mattarella to be the new executive. they are taking up huge responsibilities for this political uncertainty that we think should stop as soon as possible >> you're still part of pail low gentiloni's caretaker government how damaging do you think that uncertainty is for italians?

>> uncertainty is always bad the sooner we get political clarification, the better. it is clear it is not the responsibility of cottarelli, which is trying to build up a constitutional government. the responsibility of the political forces and this is why we think and say if there is not a possibility of building up a political majority in the parliament we cannot waste time because certainly uncertainty is negative for italy uncertainty is negative for europe italy is a big economy, big country in the european union. we must get out of this political uncertainty soon >> you spend a lot of time in brussels the last time we saw each other was in brussels. do you think the interference of certain european officials in this italian issue has been unhelpful? >> it's very unhelpful the comment by commissioner

oettinger yesterday was unhelpful. and i think that we should really avoid to give the impression that someone wants to give lessons, educate people or democratic choice. the democratic choice in the end of italian people, who must choose what they think, the better future for the country. certainly not the market certainly not the european commissioners, it's it is our duty to persuade the italian voters which is offered to the extreme right of lega, the five star movement are nonsense for our country, are nonsense for the economy, because after all what they want is to get out of the eurozone, which is a disaster for italy it's up to us to persuade italians it's not to the market or to the european commission to interfere like that.

certainly that is fuel in the engine of the anti-european and populist forces. we don't need that >> you say it's up to you to persuade the voter the that the five star and league ga are no longer to the benefit of the populist your party are seeming failing to do that, because we've seen lega and five star maintain positions in the polls league ga jumpga jumped as much% how can you change that message so parties like yours can perform better in a future election >> we have, first of all, to consider that the effect of the reform are coming. but they have been coming not fast enough. we don't have to deflny what wev been doing there are specific priorities which must be high on the agenda the control must be much stronger and much faster

the measure against poverty, the measure against social inequalities must be as a priority number one of our political offer. and we have to show that to go back to nationalism, to go back to nationalistic policies, to get out of the eurozone, it looks like a quick fix solution, but it would be a long-term disaster and it is up to us to show that the benefit of our action in europe, our proposal for european foundation goes towards the direction of more advantages, more opportunities and more protections for italians in italy and in europe. this is at the center of our next campaign be it in july or autumn >> one final question for you, you talked about tackling poverty in italy being a

priority that's been important to the five star and they talked about the universal basic income of 780 euros a month for family how is it possible to tackle poverty in italy without spending more money? >> it is very clear. you're referring to the government contract signed between lega and five star movement and referring to the proposal of the five star movement for the income. either you get out of the eurozone and you implement the program, which is going to be a recipe for disaster, it will not be sustainable looking at the italian public finances, or you want to reform europe, because europe is not working, and you, of course, look at policy which is much more sustainable

the fight against social inequality and poverty in italy is one of the highest priorities we must put on the agenda. the recipe of the five star movement is a recipe which cannot be implemented. the problem they've been having in the last three months in building up a cabinet with lega, it's mainly because their economic proposals cannot be implemented, are not compatible. you cannot have a flat tax, 50%, whereas the average taxation in italy is 40%, at the same time to introduce universal income with more than 700 europe family and in some cases 1,600 given to the poorest family it's nonsense. these are the main reasons why they encountered so many problems in building up a government and we have to denounce the responsibility and denounce the promises and be much more effective in convincing italians that

certainly these are important priorities, but there are much more credible and sustainable policies to reach those goals. >> let's talk about what you consider to be considerable policies you served as a link between the italian government and brussels. do you think there's appetite in brussels for the kind of regulatory overhaul and changes by lega and five star and is that something your party would support? >> europe has wasted too much time we have been denouncing the effectiveness of european policy in the eurozone since 2014 we've been announcing the absence of europe in regards to monetary policies since 2015 european reform is one of the highest priorities of the action of macron.

we have to be aware that there is no time anymore that europe must change. that it's time for fundamental european reform and the first one to understand this must be our german friends in berlin because germany has a huge responsibility for the state of europe today because berlin has always postponed until tomorrow reform which was urgent to adopt yesterday. now we cannot waste too much time and i think the disaster of italy, the political disaster for me of italy is mainly due to this ineffective european action this is why i think the time has arrived. it's not too late if there is a real wake up in brussels and in other capitals starting from berlin >> perhaps the message from five star and lega will have an impact sandro gozi, thank you for joining us if you have views on what's going on in italy, feel free to

get in touch on twitter. @streetsignscnbc coming up, the trump/kim summit appears to be on track the latest as the two sides aim to save that historic meeting. that's coming up next. overwhelming air fresheners can send you running... so try febreze one. with no aerosols and no heavy perfumes. so you can spray and stay. febreze one.

welcome back to "street signs. a top north korean official is on his way to the united states to meet with secretary of state mike pompeo. they will meet later this week as the two sides work towards a summit between kim jong-un and president trump. blayne alexander reports on the latest developments from washington >> reporter: first, the full stop now the full-court press diplomats crisscrossing the globe scrambling to get the u.s./north korea summit back on track. >> the first time in 18 years s north korean official will be on u.s. soil.

>> reporter: one u.s. delegation is in singapore, another meeting with north korean officials in the dmz. it comesafter days of increasingly optimistic tweets from president trump who left the door open after last week's later abruptly canceling the summit >> if and when kim jong-un chooses to engage in constructive dialogue and actions, i am waiting. >> reporter: the white house says since then north korea has been engaging. all positive signs, but still no confirmation that the june 12th summit is officially back on and experts say even if it does happen, the ultimate goal, denuclearization will not happen over night >> north korea has dozens of buildings, thousands of people involved in this nuclear program. even decommissioning one facility can take years. >> reporter: president trump hoping to take that first major step two weeks from today. there are more meetings to come.

next week president trump will meet at the white house with the prime minister of japan, another country with a tremendous stake in the success of this summit. blayne alexander, nbc news, washington. the trump administration says it will announce a list of $50 billion worth of imports that will be affected by 25% tariffs after june investment restrictions will be implemented to protect american technology the move comes as u.s. commerce secretary wilbur ross is due to speak with chinese officials in beijing later this week. china said this was unexpected and went against its core national interests the second estimate of first quarter gdp is out today it is expected to remain at 2.3% u.s. economic growth slowed in the first quarter as consumer spending rose at the weakest pace in five years the federal reserve will release its latest study on economic conditions in the u.s. today. our next guest says he will

review the beige book for clues on the economic impact of the trump administration's proposed tariffs. tim spice joins us from new york tim, thanks for getting up so early to be with us. which sectors will you be watching closely when you see this release >> overnight we were looking at transportation, ports, railroads, air, trucking very important a lot of congestion in getting goods across not only greater europe and the world but also here in the united states. that's a big sector and also the tariffs. the tariffs on energy took an impact, a toll on the economy here in the states when the report came out last month we're expecting to see similar impacts again. there's really 12 factors that we've been observing those are the highlights around

transportation, labor, everything else looks like it could be posting very good t moderate improvement off of last month's beige book report. >> last month we also heard from some farmers, elements inside the agricultural sector saying they're concerned about these tariffs. we've not seen a huge impact yet. do you expect that to be something to watch as well in terms of potential tariff impact >> absolutely. the tariffs as we mentioned have already had an impact. if you look at the last two beige book reports this year, you're seeing it gradually getting or impacting the economy. the question will be, we're not expecting much of a difference in the beige book report today, certainly that continued steady slight dimunation in activity,

and it's not known what those tariffs will be to the u.s. and global >> one business sector not thrilled about the proposed tariffs on steel and aluminum is the construction sector. do you expect they will see pain from increased costs or will they be able to pass them on successfully in terms of price to users and consumers >> that's a good point so far the tariff price increases have been passed along somewhat successfully to consumers. the point, you make about construction, there's a job shortage of not only skilled laborers but laborers in the farm industry and in transportation, especially in trucking then you see what's happening in the highly skilled work force. there's not enough highly skilled educated workers presently.

that's also a global issue that's a real factor probably more so than the tariffs. >> let's talk about the labor market we've seen unemployment fall to new lows we've seen some shortages in certain areas of the labor market what about this issue of wage growth could we see more details today about that in the beige book y >> yes, but it will not be more dramatic than the beige book reports that came out so far year to date that is a correct statement. we're going to continue to see, we expect in the beige book report and also in speaking with some of our economic economists relationships that that is going to continue to occur the stagnation in wage growth and also the lack of skilled labor to really fulfill very important sectors again, construction, transportation, technology, all of those areas

we have a declining ability to hire and skilled labor to fill those positions. >> one final question for you, tim. we had truck drivers in brazil on strike for more than a week because of increased costs of petrol at the pump, diesel at the pump do you think that upward trend in the oil price will have an impact on what we'll see in the beige book >> we think it will. it's hard to say how much. the beige book report from april did not cite that as a very impactful element at that time probably again just looking from a u.s. perspective remember, the beige book report talks about the 12 federal districts. it's not a white paper, per se but it's impacted by global economics because the united states like the eu, like brazil, it's a participant in the global

economy. it all comes back and really impacts everyone as far as petrol fuel, gasoline, yes, that appears as the two will be having at least modest increases in pricing >> tim, thank you. appreciate you setting the alarm clock so early to join us. to give a recap on the top story, mateo sal vevini has cul f called for fresh elections as soon as possible and cottarelli is having fresh talks with mattarella today. there is quite a bit more green on the board than we saw yesterday. the banks in particular doing a lot better than they were. some of them down 6% over the course of the day yesterday. a number of them now up above

1% bpe banca still not doing too well the italian bank index as a whole up 0.60% the italian bond market, the two-year is down back to 1.983 the ten-year, 3.046. still two numbers to watch closely. we'll look at the euro as well, which had a negative day yesterday. bouncing around a half percent stronger against the u.s. dollar today. u.s. futures quickly also looking to open slightly more positive that's it for today's show i'm willem marx in london. "worldwide exchange" is coming up next.

it's 5:00 a.m. at cnbc here are the five most important things for you to know stocks are calmer this morn. the world's financial attention on italy. china firing back as the u.s. ups the ante in a trade war. roseanne barr issuing a new statement and blaming a sleep drug after abc pulled the plug on her show. at tesla vehicle on autopilot crashed, this time into a police car. and browder has just