welcome to "street signs." i'm joanna versace. >> i'm karen "charlie hebd kareo these are your headlines >> italian assets also rally as the government prepares to negotiate a budget pushing bond yields lower fiat chrysler makes a deal to

sell part of the company >> weaker than expected rise there are currency headwinds and the recent turmoil hurt the bottom line. >> with profit improvement of 40 basis points of the operating income could have been a bit higher if it were not for currency head winds which were sizeable in the ee merging markets. a grave mistake. saudi arabia admits that he was killed but denies that mbs had any involvement in the rogue operation. >> obviously was a tremendous mistake made and what compounded the mistake is the attempt to cover up that is unacceptable in any government as you can see behind me, it's largely a sea of green in europe so far this morning that is coming off the back of a robust trading session in asia

where chinese stocks were up nearly 5%. in europe this week we have got a little bit of everything ecb meeting on thursday. plenty of corporate earnings as well, and of course any developments around italy or brexit will be closely watched by investors looking over all the euro stocks, 600 is up 0.4% overall let's look at how things are playing out. the ftse mib up just under 1%. italian assets outperforming as investors await italy's formal reaction to the budget crunch. the french index up 0.5% the dax reversing early weakness up 0.8% and the u.k. up 0.2% let's get into the sectors and see how this is playing out. autos at the top of the leader board up 1.8%. fiat chrysler driving the bulk of those gains after agreeing to their 6 billion euro sale.

banks just behind them up 1% of course italian banks quite sensitive to what's going on with the italian budget situation so getting a nice lift there as well. at the bottom we have health care down 0.7% and oil and gas down 0.4%. back to you at the desk. >> excellent let's check in on how markets have been doing overnight as chinese markets have extended their rally after authorities pledge to support the economy in the wake of friday's gdp disappointment you can see that the majors are really bouncing and quite aggressively this morning. shanghai up 4% shenzhen the more volatile up 5% hang seng up 2.5%. not much movement in the currency if anything, a tad weaker. all eyes on the equity's performance. as the authorities are getting more vocal about intervening in the market, karen. what's interesting, it's not just the pboc governor, we've

heard from the regulator things and what they're trying to do is shore up confidence and provide investors with some psychological support here >> not just investors. have we looked at the detail in some of the plans. it sounds like a populus government claiming deductions forex pens on health care, education, mortgage interest, rent and supporting the relatives. if the government in the west said that, you can imagine what the response would be across the population you can see why this is popular. >> fiscal spending at a time when the economy is going 4% sounds like another u.s. economy, do you think? >> it's very still mu la tori. the rest of the initiatives that were lined up, credit for private businesses and less inclination to stand on enterprise we've been on that narrative around china and creating equity across the debt markets. >> the big question is whether or not this is a dead cat bounce

and whether it's a one-day phenomenon where we bounce 4%. all of these markets are in bear market territory to begin with or whether or not it's going to be the beginning of something sustainable which as we were discussing a short while ago would be a tail wind for q4, a reflation naryury impulse. >> i think the growth story is something to focus on. if you look at the initiative around the tax cuts, it's a strong message to the u.s. administration, negotiation around the trade war you have a market that would be interested in these initiatives. at the same time you've got domestic chinese consumers and companies protected by this extra stimulus quite a clever initiative. let's push on to italy as italian stocks rally and there's one level above junk that described the country's outlook as being stable.

the italian government is facing a midday deadline. we're seeing a bunch of discussion let's get to willem for more about this showdown. willem >> reporter: thanks so much, karen. i've spoken to someone inside the ministry and asked them whether the letter would be delivered by the midday deadline she said, i hope so. i said, are we talking 11:59 she said, probably that gives you an idea how chaotic things are it passed the budget in a late night cabinet meeting on saturday that was after they came to rome and outlined some of the concerns in a quite detailed letter the italian finance ministry were responding to that letter the government says what it's hoping to do is to explain the

rationale for the measures it's taking, in particular the universal income at $780 a month for those who don't have an income there's also a hugely significant decision to once again lower the retirement age for many italians. that was very unpopular when that age was raised a few years ago under monti, the so-called fordnaro pension reform. that's something they're looking to roll back what that means is they're going to have to borrow a substantial amount of money, more than they had planned to do under the previous administration. they'll be spending more and of course this will do little, according to the european commission, to reduce the debt to gdp ratio currently at 130% that should in theory get down to 60 pores percent accordi-- 6% we'll get this letter and we'll be able to give you a better

sense of quite what the government focus is going to be as this discussion between the two sides will continue. it's not a conflict. we want dialogue but so far it seems like the political rhetoric has softened in the last few days. it's by no means over. >> willem, just picking up on that word conflict, obviously we're talking about conflict as it pertains to italy versus the european commission but also on friday when you and i were talking, we're talking about conflict in between dimaio and salvini. there was a bit of a conflict when it comes to tax amnesty it looks like they've made some steps when it comes to mutual grounds. today they're putting on a united front they've assuminged -- assuaged

market fears is that part of it >> yes, that person has not been identified, they decided to make a change to some language in the draft budget that was going to be sent onto the italian parliament, focus on a threshold for tax amnesty. this is something that legue has been pushing people that owe back taxes would be given an amnesty. someone seems to have raised that threshold up to a million euros. that was something five star was very unhappy about that was what mr. didmaio said really concerned him they thrashed these things out and came out with an agreement at this point it seems like the two parties are unified going forward. whether that means they'll be unified remains to be seen when we look at the rhetoric,

they have had a lot of consistent similarities in terms of anti-eu rhetoric. as i said though, that has softened in the last 48 hours or so so we can really see what this letter contains. >> thank you very much for that, willem joma jomana, we've seen a fairly significant shift in the bond market perception. very curious after moody's didn't get the growth they were looking for. they were holding out and waiting to see the stem mu lus and see how the growth program could be it hasn't been much. >> the issue is their growth targets, nobody really believes the growth targets we talked about the other targets. when they say they think their fiscal impulse will add 6% to the italian gdp. the street is not buying it, certainly racing agencies are not buying it as well. no one out there thinks italy is going to grow at 1.6% last year.

most analysts have it as 1%. if they're introducing all of this stimulus, if it won't have a tangible growth, then clearly it raises question today at least the market is giving them the benefit of the doubt. >> pushing panic around. i want to ask you first off about this debt profile because it's come up in the moody's conversation as well, that we're not tackling the debt going into what is likely to be another debt down the track. what do you make of the profile for italy at this point? >> yes, good morning in fact, that's exactly the issue because if we look at the expectations going into the budget, market is expected about 2% deficit over gdp. we came out 2.4 which is not a massive deef vee ampgts nonetheless, why the market was

so negative about t. under the current budget debt to gdp will not decline. it remains flattish. it's a medium term concern which is concerning the market >> matteo, you say it's exposed to the next recession. we were talking about the gdp forecast no one is forecasting a recession for italy. people are still forecasting italy to grow as an economy still at 1%. so with no recession in sight, perhaps things are going to be okay on the ground. >> that's a good point for next year we expect 1% gdp growth the economy particularly in the north is doing okay. we're seeing good exports, consumption picking up, unemployment coming down so a number of things going in the right direction but of course, you know, at some point in the future a recession is going to come and that's when

italy should reduce the ratio of public debt to gdp to be prepared for that. it's a medium term concern, it's not a short term concern but of course as investors we have to look a bit farther as well. >> can i ask you about the sentiment at play? last week there was a lot of concern that the european commission and italy was at logger head. this morning we had concerns from the eu saying they don't want to have a crisis with italy. is the language much better cominginto the week? >> for sure, there is no side who wants to enter nor provide so that will have the margin italy is not alone in the deficit if we want to call it

this way we also saw higher deficit presented by france, spain and others and we don't know exactly what will be the framework after the european elections nevertheless, i don't believe it's really about the european commission or europe what is driving the market is what bond investors and what they think clearly they wanted to see a lower deficit. in europe that's more important than any political consideration. >> so you said a word that i like to talk about, vigilantes the bond vigilantes. let's break it down and talk about the numbers. we know this budget is 34 billion euros. of which 20 billion will be raised going to the market so extra bond issuance next year. do you think that 20 billion is going to be a make or break number as far as bond investors are concerned at the time the ecb is pulling back or will people say with the yields

trading at 4%, is this attractive especially since italy is not going into recession any time soon? >> yeah, i think the latter is more likely. it's not a huge number redemptions next year are not particularly challenging from the members in the near term, it's still okay. we think the yields for the italian curve are quite attractive we expect it will be not particularly an issue for the treasury to raise those funds. we considered two years to be quite attractive. >> you like the btp yesterday, you'll like it more today. we've rallied 20 basis points. matteo, thank you very much for joining us on "street signs." speaking of italy, fiat

chrysler shares have surged. there's a deal worth 6.2 billion uros the sale is expected to be completed in the first half of 2019 it will create the world's seventh largest auto components supplier coming up after the break, as u.s. tech stocks continue to slide and earnings season rolls on, we ask what could be in store for the tech sector. stay with us - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may 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.

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phillips has posted weaker than expected currency due to head winds they reported increasing margins in sales philips said sales in china have increased but fears of a chinese slowdown have been a worry

the company is said to be hedging against a slowdown in the emerging market. >> the emergency market suffer a bit from all of the unrest in the world. it's difficult to hedge for emerging markets so usually we compensate for it by increasing prices over time the rest of the world we have much more of a natural hedge and there we can also take hedges as a matter of course >> meanwhile, ryan air is posting stronger than expected profits. higher fuel costs and strike actions across europe have dented profits in the key summer seasons. earlier this month ryanair worried on profits that things could get worse if the pilot strike continues the ceo of ryanair said airlines are going to suffer in the coming months. >> i think the winter looks grim we have rising oil prices.

fares are falling. there's excess capacity in europe short haul is up 8%. we see a winter by declining air fares. we are lunch iing an incentive today. we've had a summer of delays, strikes, disruptions but we're beginning to see the shakeup we've seen the bankruptcy of azule and i think you'll see more failures this winter as we look at what is a four or five year downturn in the industry. >> you can head to cnbc.com to see what o'leary is going to do to counter a gloomy winter. state side, the dow broke a three day losing streak. consumer staples out performed after procter & gamble jumped on the strong earnings.

it's another big week for earning in the u.s many fangs will report on thursday including twitter, amazon and alphabet. i'm happy to say that anna joins us you are a tech expert as well in this all important tech week so what should we be expecting are you expecting positive earnings coming out? clearly all eyes will be what comes out wednesday, thursday. >> sure. one of the fangs that has reported already is netflix. the numbers were stronger. the subscriber numbers were stronger than expected and in initially it was met with very strong price action which eventually people got worried about. but on a fundamental basis the numbers seem all right super thursday, amazon, microsoft, intel and a few other reporting, a lot of them are exposed to ire rop

there is a clear currency headwind is down for visa, higher gas prices will be a positive which is up almost 15% year over year. >> tech very much considered growth stocks as well. they have exhibited phenomenal growth profitability has been there when you think about growth stocks you're thinking about stream of cash flow. with the higher interest rates the cash flow is getting discounted people are beginning to get a little bit nervous about the growth potential of some of these stocks how do you think about it from that perspective >> that's a great question higher rates and we begin to see that with high valuation software names where multiples

are by 15 or 20% so fair point, yes, they will be there are companies, for example, microsoft which returned about $20 billion in the last four years to buy back dividends. we have $130 billion of cash cash will continue to be obviously strong support for these guys as the computer buy back stocks. >> there are issues around regulation and how it impacts the future earnings. really interesting story out from alphabet about how to charge it under $40 in europe. this was able to have google on some of the devices. what does that do to short term? is there a short term positive or does it say something negative about the regulatory environment? how do we view what's coming

tech's way. >> great story it's not a sizeable portion of the revenue today. it will be at some point in time advertising drives a huge part of google's revenue. there will be a small dent because of higher prices but, again, if you think of the choices that the hardware makers have, apple is not a choice. basically are you left with a monopoly very interesting to see how the pricing shakes out i would not be very worried about that that said, google has a number of other things going on for example, a lot of its moon shot projects are coming to fruition the autonomous driving has sort of grad due eighted. now you'll have the first autonomous robo taxi this year.

>> who is pushing, we've seen some of the reaction on the numbers which have impacted the numbers. who is most likely to suffer the wrath of regulators next >> so i would say it's hard to pick one company but a lot of them tech has been largely unregulated. so at least five years from now. if you look at any of the companies, consumer facing internet-type companies, they will have a higher security cost as a result of permission because of data privacy and stuff. so you see a hit on the margins for a lot of them going forward. that's more a function of the advertising demand yeah, you will see the pressure on them. in terms of enterprising facing, in the past in the early 2000s

there's a little head wind for them than for more consumer facing companies. >> we're going to leave it there. thank you very much for joining us on "street signs. also coming up on the show, we'll discuss the future of banking with andreas treichl stay with us today is the day you're going to get motivated...

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welcome to "street sign"s. i'm karen "charlie hebdo." >> and i'm jomana versace and these are your headlines >> chinese stocks spike in their best days since 2013 helping lift european equities italian assets rally as the government prepares to negotiate its budget with the eu pushing bond yields lower. fiat chrysler switches into higher gear as the italian american automaker finally strikes a $6 billion deal. >> philips shares sink after they have a weaker third quarter

profit they say currency headwinds and the recent turmoil in emerging markets hurt the bottom line. >> profit improvement of 40 basis points on the operating income could have been a bit higher if it were not for currency headwinds which were sizeable in the emerging markets. a grave mistake. saudi arabia admits journalist jamal khashoggi was killed but denies the crown prince had any knowledge of the rogue operation. >> there obviously was a tremendous mistake and what compounded the mistake is the attempt to cover it up that's unacceptable in any government so after a robust handover from asia, we are seeing pretty strong trading in europe so far this morning as we pointed out earlier, the ftse mib is the real outperformer on the day with

italian stocks up o 0.7% investors are awaiting a formal response from italy to the eu's criticism of their budget. this comes after friday's move they've raised their outlook to stable the rest of the region is also seeing pretty nice gains the dax up 0.6%. pretty good picture overall. let's get into the 4x markets and see how currencies are reacting to the news the euro is trading a touch higher on the day at 0.4%. the pound just slipping in recent trading down .1%. of course,everybody watching for more commentary out of brexit negotiators on how things are progressing. all eyes on the coverage today on the back of strong trading in asia and europe, unsurprisingly the u.s. is taking a step

higher this is on friday where we saw the dow, only one of the major indices, to close higher that was boosted by procter & gamble whose shares rose higher after a stronger than expected earnings report. a lot to watch there jomana, back to you. >> a lot to watch there as we head into this important earnings week. saudi arabia has told russia's news agency it has no intention in implementing an oil embargo as it faces increasing problems for the killing of a journalist they say a grave mistake was made by what he's calling a rogue operation. >> first of all, we're not an authoritarian government we're a monarchy we have our checks and balances and the individuals who did this outside of the scope of the authority, there obviously was a tremendous mistake made. what compounded the mistake was the attempt to try to cover up

that is unacceptable in any government these things unfortunately happen. >> hadley is in riyadh it's interesting to here him admit that, that he had been killed if they had been hoping for softer words, they're not seeing it this morning. >> they're not, jomana, the short answer is it's time to come out with something. we still don't know all of the details. we still don't know where mr. khashoggi's body is. a lot of questions remaining unanswered president erdogan is going to publish the naked truth, the entire full story of what happened there are audio recordings that they say are allegedly really

determine what happened to mr. khashoggi inside that consulate in istanbul. a lot of questions about what this means for the u.s./saudi relationship as well the democrats and republicans can't find any resolution on bipartisanship it seems like this crisis is bringing them together let's listen >> we are formally expelling the saudi ambassador from the united states until there is a completion of a third party investigation into this kidnap, murder and god knows what followed that occurred in istanbul we should call on our ally toss do the same. unless the saudi kingdom understands that civilized countries around the world are going to reject this conduct and make sure that they pay a price for t they'll continue doing it. they have a fellow raef badawi

in prison. there's another man who is facing imprisonment and torture if necessary by them unless he changes his criticism of the regime if we want them to stop this and make it clear we don't accept it, we need to be decisive >> reporter: the saudi foreign minister's comments of course leading one to hope that there could be more information coming out in the coming days from saudi arabia of course, at least 18 people have been detained there kweks this incident as well as two very, very high ranking folks that surround or are within the inner circle of the crown prince has been dismissed as well there are other questions as well we have the fii and the future investment initiative, major international ceos, those that are coming, lots of questions about what this actually means for them and their relationships with the saudis.

the leader of pakistan is going to be here a lot of questions how this is going to shake out. >> thank you germany, france, the u.k. have demanded an answer from riyadh >> translator: we condemn this act in the strongest terms that's what we said yesterday. secondly, there is an urgent need for further clarification by no means not everything is known and not everyone has been brought to justice arms exports cannot take place in the condition we find ourselves. >> u.s. president donald trump also called for more information but urged restraint of possible international consequences. >> a good first step

i want to get to the answer. with all of that being said though, we have $450 billion, 110 billion of which is a military order, but this is equipment and various things ordered from saudi arabia, $450 billion. i think it's over a million jobs that's not helpful for us to cancel an order like that. there are other things that can be done including sanctions. >> investors have been rattled by the khashoggi case and resulting pressure from governments. saudi stocks recovered a little bit yesterday. the currency also fell to its lowest in two years last week. russia has warned president trump that his threats to pull out of the cold war era nuclear arms agreement could be a, quote, very dangerous step

saying the move could hurt local security nbc's kelly o'donnell has more >> reporter: this demonstration of putin's arsenal rachetting up tensions with the u.s. president trump says he is ready to act withdrawing from an historic nuclear missile treaty. >> russia has not unfortunately honored the agreement so we're going to terminate the agreement. we're going to pull out. >> reporter: tonight national security advisor john bolton is in moscow to deliver the message. >> we still have issues and disagreement. >> reporter: more than 30 years ago a legacy achievement for president ragan and the soviet union's mchale gorbachev they signed the inf that eliminated ground launch nuclear missiles that could travel 3500 miles. under vladimir putin, something changed. nato says flatly, russia is in violation of the inf treaty but in helsinki in july putin

complained about u.s. missile launchers in europe calling that a dangerous situation. john mclaughlin sees risk in the president's decision >> this is one of the few channels of communication we have with russia on serious matters at a time when our overall relationship with russia not very good. >> reporter: the senate foreign relations chairman said the president contesting putin. >> this could be something that's a precursor to try to get russia to come into compliance. >> reporter: but senator rand paul is worried. >> i don't want to see another nuclear arms race with russia or with any other country nbc's kelly o'donnell with our report in sports news, mercedes driver lewis hamilton will need to wait a bit longer to clinch a fifth

world title after ferrari finally showed cha it was made of at the u.s. grand prix. what did you make of the final showing for hamilton >> it was a surprise to everyone considering he looked like he had some pace in practice. he looked like he had pole position he did have it sown up he's built that huge lead in the world championships. uncharacteristics bad mercedes tactics this time around they delayed hamilton's second pit stop they made sure he had to pit again to get to the end of the race he was back at some points in fifth place, then he was up in the lead again everyone is happy for raikkonen.

he's now the most successful finish driver of all time which is obviously very nice the focus would have been on lewis hamilton and whether or not he was going to get a fifth world title this time around he's got to wait a little bit longer. >> it's not a shoe in at this point. 's so far ahead. >> quite probably. for all intents and purposes, he's got nine race wins to his name so far. he's got a 70 point lead if you translate that into three races, 25 points possible for a win. lewis hamilton basically has to finish seventh or better in one of the last three races to make sure that he wins a fifth world title. that would elevate him to the second man with five world titles >> your usual suspects, mer d e

mercedes, ferrari and red bull will there be a mix up in teams? >> not at all. next season there's plans in place, drivers moving around leclerc is coming into ferrari three british drivers across the grid, young, exciting prospects as well. this all is the longer term plan for liberty media. they couldn't want this procession all the time to the same three teams at the top. ferrari had been one of the ones to say they don't want that. mark yaley before his passing was very adamant with that ferrari getting special payments from f1 to keep them interested in formula one >> mexico city. >> mexico city next weekend. >> if you'd like to read more about what's next for ferrari,

you can head online to cnbc.com. this is your story. >> one of mine, yes. also coming up in the show, we'll discuss banking, brexit and more with andreas treichl. rebekkah: opioids has taken everything and everyone i've ever loved away from me. everything. i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning.

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welcome back to the show europe's largest leader andreas treichl will step down at the end of the year he's still committed to changing the growth in the digital age. he's been chairman of the board since 1997 and c eo since 2008. he's seen the evolution of the bank through a series of changes. he's with us on "street signs. your career history spans many, many years you've been through a lot of financial crises i want to ask you about how you see the environment today because starting off the year you would have thought we're in the midst of a european recovery seeing decent growth north of 2% and yet banks are not enjoying

any love from the investor committee. what is going on >> what's going on why people don't love european banks? >> yes >> that's pretty easy. because i think really the issue is that the european financial system is just not in really good shape yet just too much volatility in it if you'll look at certain banks in certain countries, they're doing extremely well there are some banks that are trading above book most of them are noncross border banks. you look at banks that are located in spain but only have foreign business outside of europe they do a lot better than those banks that tried to create and played the game on european convergence. that should give a really good story to european politicians. >> that's going to be a major focus for the market in the next 12 to 18 months.

>> no, i don't think we'll see them i don't believe in them. i don't think they make a lot of sense. there might be something going on between france and italy, but that has different reasons i think we have to look at the simple fact that we don't have a european banking union yet, and my belief that we will have it in the near term future is not very strong. so actually the game of playing european convergence was a long game for the moment. you can see that very much in the valuation of banks the more cross border activity a european bank has, the weaker they are. >> i'm going to pick up on a couple of points your bank that you scaled to move across jurisdictions, particularly across eastern europe, why is it the wrong story for banks to consolidate and use their might to have a better balance sheet >> we are a bit in a different

situation because we have concentrated on one region in europe and that is central and eastern europe. >> it is possible though >> it is very much cross border but it is cross border in a region that has very specific economic parameters and the most important of them is that we're growing a lot faster than the rest of europe my region is growing double the speed. >> you've had enormous pull back from countries you've been operating in hungary, very serious example. it's got a more predictable policy. >> you really believe that you that i hungary is a bigger political issue for us than the u.k. is for the rest of europe or italy or spain or portugal or greece yes, it's true we have some rather strange political views

in our region, and that has cost us a lot of money in the past, but the basic economic facts in our region are a lot better than a lot of the other countries in europe which is very simply that we have a stronger growth, much more flexible labor force and substantially lower taxation you see risk conversion very much if you look back 20 years when we started in the region. chzech republic and italy was double or triple a and italy is triple b and itathe basic make o economic strength of our country is so much stronger than anyone else it's a game in itself.

>> we have to bring in the latest on brexit we'll come back to your conversation in a minute theresa may is going to tell parliament that 95% of the brexit deal has been agreed. addressing mp may will attempt to demonstrate that the government has made progress on brexit talks despite recent setbacks they will confirm that the u.k. has settled many issues including security and the future of gibraltar adding, quote, the vast majority of the agreement is now clear speaking to cnbc they explain the agreement between brittain and the eu over the status of the u.k. territory post brexit. >> the protocol will be between the united kingdom and the european union, not between the united kingdom and spain it's an annex to the withdrawal agreement. it will set out how gibraltar will form that as you know, gi brbraltar has h different status, a

differentiated membership which called for a differentiated process of withdrawal and that's what's now as pedro sanchez announced in spain indeed in brussels something that the spanish have accepted is in the format that they are happy >> meanwhile, almost 700,000 people took to the street in what was the largest protests. the demonstration had protesters urging the government to hold a people's vote over brexit. prime minister theresa may has previously ruled out a second poll on several occasions. let's talk about the brexit angle and how you're thinking about it from a pure banking perspective. is it going to create some opportunities for you? >> from a pure banking perspective, no. it makes things a lot more complicat complicated. it's not so much that london is

the international center of europe but it's the service center of europe and most of our cross border contracts are u.k. legislation so it's a hassle it's going to make our life more difficult but to me as a banker the biggest issue is that we actually have two countries in europe that have a strong long-lasting capital market culture. one is switzerland that's never been in the eu and the other is the u.k. which is about to leave and i think one of the weaknesses of the european national system is the importance of its banking system the banks finance more than 75% of the european economy, whereas, in the u.s. it's 20%. so we need more capital market in europe and we need that -- i think that would have been

accomplished a lot easier with the u.k. in. so for that alone i'm very sad that u.k. leaves europe. >> banking union, do you think we have parked that issue and put it on the side of the road again in we have all of this volatility around italy and the italians trying to spend up the italian market and that's got the ire of other countries so we're done on bank willing unions >> i don't know that i would be that negative but you're completely right what's going on with italy for the moment is a clear sign for the fact that on that basis just can't be an agreement because no german politicians could agree to basically telling the europeans we have a german depository no german politicians would allow that.

>> are you worried about the italian competing effect >> it's bad. okay i mean, we've lived with things like that for a long time. i don't think it will be a drama because italy is too big to fail. >> absolutely. all right. thank you very much for joining us before we head out, let's take a quick look at u.s. futures. dow is seen opening up 16 points higher, nasdaq 26 points higher and this very big earnings week for the tech sector in the u.s that's it for our hour extravaganza i'm joanna versace. >> i'mar c kenho can be relentless.

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