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tv   FBN AM  FOX Business  December 5, 2016 5:00am-6:01am EST

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train to breaking news this morning. a political firestorm as the prime minister of italy resigns after voters who checked his plan for constitutional reform. good morning. i am nicole petallides. >> good morning. i'm cheryl casone. the government would create turmoil in markets, but so far that is not happening. investors think in the concerns were overblown. the stock market futures under pressure overnight, but things have turned around. a fire opening here in the u.s. on this monday. the dow pointing up 588.
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s&p and nasdaq higher as well. nicole: ignatius cracks under pressure following the tying referendum rejection. the nikkei down 1%. in china at the index 1.2%. cheryl: european stock markets opened slightly lower. look at these numbers right now because they are at the they are up as well. they are at the cell. the ftse in london of 64.
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the president would appoint some would appoint some announcer in this government to go to receive the administration at least a few months ago. budget next year to study the shift until 2010 the next election is to appear trade to chris, right now people are surprised and expected more selling. we did see italian banks down 4%, 5%. overall markets have reacted quite indifferently and even to the upside. that came somewhat as a surprise. they picture there is still so much uncertainty about the italian banks in the euro in particular which is only 21 month low. reporter: there really is a concern about what happens at the recapitalization plan. really the major issues they haven't yet found. the ecb does step in.
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there's not that much they can do. we get more color when they made for their december policy meeting. that'll be interesting as well. the political thing doesn't change the low growth at home with high debt to gdp ratios and a problem the banking sector. cheryl: the data in italy only second to greece right now which is not a good sign. the populist movement started in july of course it written with an eq. do you think italy could follow britain out of the e.u. based on what we've seen in this referendum? >> it seems unlikely given that fact it's an unlikely event paid to probably get a government that oversees further reforms and that might help to keep the government from power for the time being. it will always be there snapping at the heels of the government.
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the question is how long can austerity measures go. rent is overseen, how long can they really last? they make ecb made as well. what advice to investors during this time that is a little bit volatile. >> well, we are still looking to take weaknesses in european talks. we've had one of those this morning. if you look beyond that, we are still worried how the impact of the qa program, but that they extend up to provide a bigger lift for european markets. cheryl: chris, i'm not to watch. chief market analyst at i.t. group. thank you very much. and i think terry for protesters. cheers followed by the obama decision needed to complete the last sake of ill pipeline across the midwest. the protesters led by the standing rock sio tribe had been gathering in north dakota for a meant arguing the pipeline
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endangers the treads water supply and sacred site. the builder says it will minimize any damage to traditional sites in the risk of an overdose bill. send it the u.s. army corps of engineers corps of engineers said it would deny the company to permit a name for the $4 billion project and also dollars project and also called for full environmental review and reevaluation of whether the pipeline's route should be altered. >> now to the latest on the trunk transition as the search for secretary of state experience p. kellyanne conway says trump will have additional interviews this week. the new names that have surfaced include exxon ceo brett stiller senator jon huntsman, former u.s. ambassador to china and governor of utah. the development comes as they continue to debate if the child should go to gop presidential nominee mitt romney. conway has criticized karami for sharply attacking term during
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the campaign was asked if the criticism was appropriate. listing. >> i turn it around and ask if it was her pray for governor romney to stick his neck out so far in attacking donald trump. never walking back in encouraging people to support the nominee once mr. trump had won the nomination squarely and fairly. cheryl: trans-recent phone call with the president of taiwan was just a courtesy call. train to house speaker paul ran outlining plans on 60 minutes. go priority number one mr. putin upon the care and replacing it with an affordable patient centered system. ryan wants to make sure medicare doesn't run out of money if the speaker and trump traded insults are in the campaign or ryan says that fell under the rug now. >> the day after the election or two days after the election and we basically decided that bygones be bygones and move
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forward and was over and done with them ever since then we've had nothing but extremely productive conversations. nicole: donald trump will be a very unconventional president. cheryl: 33 people now dead and the tragic warehouse fire in oakland, california. less than halfway through the debris. oakland made it a criminal investigation is now underway. this ignited during a late-night dance party friday night if our bodies to be found at people who attended the party are still missing this morning. some big wins for teenagers. >> we have now started to recover and identify the dems who are minors. we have some children in the ages of seven teen years old, possibly younger. not sure. cheryl: the warehouse was home to an artist community.
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several times they wait for answers. global market action overnight. the big story of course is the italy vote. in asia stocks now looking nowhere but again the story will be different in a moment. the shanghai nikkei, hang seng and cost be all that more than 1%. nicole: we at the italian referendum. they voted no and we saw the italian banks down about 50% this year coming under some pressure. other than that, markets tax equities in particular to the upside pigmented sociopathy%. cac upon .5%. german dax of 1.7% and matteo ben c. #-number-sign and uncertainty remains. cheryl: analysts and fed boosted the major selloff that the major
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selloff that the vote went to a resounding no for italy. take a look what's happening with this market futures. that's outputting higher pay 81 points. s&p up nine, nasdaq up to 26. cheryl: it will search last week of 12% last week and moving to new highs we haven't seen in some time over years. 50 to 12 a barrel up 1% right now. cold calling back the gold has been down for weeks and about losing 10%. today it's down $11.5. cheryl: commodities to want to watch today for u.s. markets because it's all about the dollar. the dollar trading against key currencies including the euro down substantially against the dollar at a 20 month low. the same saying we could see prior between the dollar in the euro. currencies around the world. trade to no doubt. right now 2.41%. cheryl: well, besides the political people in market, also watching for officials who fight
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the fed's december meeting. the new york president will speak in new york. james bullock going to give remarks in phoenix and chicago fed president charles evans will speak in chicago. the court widely expect to to dare we say finally raise interest rates at their meeting this week. italy's prime minister resigns after defeat of the constitutional reforms in italy. the euro dies on the news that the latest on the market reaction. a look at how that could in affect investors. dow futures up about half a percent. right now s&p and nasdaq futures a little higher. you are watching "fbn:am." re sm. and morning chitchat... less interesting. xerox transportation services... ...soon to be conduent.
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nicole: good morning. thank you to them in new york. mark kennedy emerging to be president-elect donald trump secretary of state. rex teller sin of former utah governor jon hunt men are said to be in consideration for the position. kellyanne conway confirmed to fox news that the search has been brought. the decision could come by the end of the week. potato lindsey resigned today at her voters reject the constitutional reforms backed by his government had the referendum aimed at streamlining lawmaking are shifting the balance of power between the
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prime minister and parliament. the boat is another sign of the antiestablishment sentiment sweeping europe. protesters celebrate after the u.s. army corps of engineers denied a permit for a key section of the decoder pipeline. members said the child have been arguing the pipeline is dangerous to water supply in sacred sites. despite assurances from the pipeline builder. any damage would be minimal to thought that the builders are saying. i'm sunday. i'm someday the u.s. army corps of engineers called for if overvaluation of whether the row should be altered if u.s. stock market futures this morning. expecting to sell off today if there was a no in the referendum. only on the italian banks. dow futures up 84 at metallica for weeks in a row in a nearly 1300 points. cheryl, that is what is happening. cheryl: the euro is the big story hitting a 21 month low overnight after italy's prime minister said he would resign
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and voters should reject his plans to refine the italian constitution. for a closer look at currencies, jane foley, current strategist at brocklebank. the euro seems to be the big story here. is it possible we are going to see the euro on power, even going below the u.s. dollar? >> of course that is a possibility. the banks began to suggest that could have been. really it will be politics that drive them. 2017 will be a very volatile time and now we've got the euro actually trading higher. despite results of the italian referendum and the market now is looking to the next best scenario which is the likelihood that the italian president will announce a caretaker government and the government could take us through to the election in eight
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of the in 28 team. the italian referendum has been very complicated and what we've got to remember as many people voted no to these constitutional changes relate to prevent a strongman government coming into power sometime in the future. if you like, that could prevent maybe one of the big populist parties getting more if they worked to get the populist vote in 2010. very complicated set of parameters or not i suppose is that the sum of the further markets as well. nicole: it really was however it is 21 month low. when we say higher, we are just off the lows, just to clarify that. >> that's exactly right. we've been higher but only back to friday's levels. we really are having a pretty low levels. a lot of the story to date has been because of the strength of
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the u.s. dollar. nicole: property right into my next question which is your thoughts on the u.s. dollar going forward. reporter: well, since the election the market has been carried away with policies can be a committee atl related to you last u.s. see a lot of this outstanding, et cetera and that of course is in line with dollar strength. of course we've got to try and pick apart what we might see under a term presidency if we get our isolationist policies which of course is likely. that could be bad for u.s. growth and we could see a lot of inflation which is bad for demanded that for growth. it could be the market really has overdone its enthusiasm and reducing that the u.s. yields on long-term interest rates look all over again over the next year. >> we've had several appointees here at fox business economic growth in gdp is their target.
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that is a debatable topic right now. jane foley, senior current strategist. thank you. nicole: have the political chaos in europe you right here at home for u.s. investors this morning. fox news gary smith a contributor would give us some insight. donald trump sets his search for the nation's top diplomat. >> i think to talk to the president a lack is he simply looking for the best men and women to advance the agenda that we know will make america great again. cheryl: the latest on the trump transition. olcott barrows. we will attack him again. dow futures looking up 79, s&p futures at bay. you are what jean transcended, your first look at morning markets and breaking news. ♪ ♪
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show me house of cards. finally, you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. nicole: u.s. stock markets u.s. stock market share about the political upheaval. features initially lower, but look at this, a paris after being up for weeks in a row starting off this monday morning after the italian boat up 81 points. looking at record-breaking novels again. gary b. smith, academia group president, fox news contributor. good morning to you. everybody thought the italian referendum was going to be in now. we were going to be a big selloff. everyone a major prep mode whether we see going forward? >> i think a couple things, nicole. one is that the polls finally
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got this one right. they projected it would be about 60% now. they can mimic out 60% now. number two, the other part is this is not election. this is really coding for the status quo. this is voting for no chnge. in a reverse way, what the yes vote would have met with the more control of these high-level government officials, less democracy. that might've been good. that might've been bad. so i guess what it's really saying is changes to it. the people wanted some kind of change. they didn't want that kind of change the prime minister wanted. i see an overall good for italy, good for europe, especially good for united states. nicole: especially if they get their debt problems under control. you see this populist movement we saw that began over the summer in the u.k. with their vote to leave the e.u. now we see this here in italy
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and of course the u.s. presidential election. do you think the eurozone is threatened? do you think the e.u. will be further threatened with today's vote in italy? >> almost definitely. i think you just love the crack in the day on. it remains to be seen if italy abandons the e.u. or opinions the euro. i think you are starting to see people don't want that central authority if you well where a lot of major decisions reside in brussels. i think that's good. i always thought the e.u. with an odd duck. it's not the united states where it all came together in 1776 with this configuration of countries, which don't share mores and customs like that. it's good for independents and that ultimately is good for financials. nicole: odd duck, we got it.
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you're ready. thanks. cheryl: coming up, a lot more in the italian boat in the defeat on constitutional reform to market reaction. stay with us. you are watching "fbn:am." we will be right back.
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>> breaking news this morning. political firestorm is administered italy resigns after voters to plan for constitutional reform. good morning. i am nicole petallides. cheryl: good morning. i'm cheryl casone and four brent simonetti appears so far u.s. stock market futures under pressure of her night. turning around, u.s. stock market futures right now putting up a 78, s&p at bay, up by 22. cheryl: stocks under pressure
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following the italian referendum rejection. the nikkei down almost 1%. china's shanghai composite down 1.2%. >> to european markets. look at that. all of them turning around. london caci by 57 in germany at 161 in particular though germany could see the effects of these votes. cheryl: figure out the biggest reaction at 1221 month low against the other major currencies. right to 106, jane foley tells us how it came about the lows of the night. cheryl: the 10 year treasury fell after investors bought treasury bonds as a safe haven. 2.41% down but just barely a fraction. >> the obama administration poster wright denying a permit for it. protesters celebrate, but all that could change when donald trump becomes president. >> donald trump expanding his search for the next secretary of state.
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from exxon ceo brett stiller sand and jon huntsman now under consideration. >> apple tells the transportation department's interested in making soft or for self driving vehicle. we'll have that story for you. here in new york monday, december 5th at 8:30 a.m. in the morning. welcome to "fbn:am." this breaking news on italy. breaking news this morning. a major shakeup in italy's government. mateja rensi resigning after voters decisively rejected changes by the government. reforms would've overhauled italy's legislature to make it easier to make the country more competitive. renzi conceded defeat after his proposal lost by a margin of 60% to 40%. the five star move back to my ip grillo said it's now ready to govern italy. in austria, left-leaning
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candidate has defeated right-wing radical barbara toffler and the victories being welcomed by moderate politicians in europe. we're trying to block efforts by populist forces working to weaken the european union. cheryl: a big story developing overnight. a victory for protesters at the dakota access pipeline. there were cheers following a decision by the obama administration to deny a permit needed to complete the last leg of bill pipeline across the midwest. protesters led by the standing rock sioux tribe gathering in north dakota for my arguing the pipeline endangers their water supply. pipeline experts said it was extremely rare for an demonstration to intervene and a permitting process that was handled by career civil servants, not at the national level. donald trump of course favors
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the project and could reverse it. fox business jeff flock is going to report from there throughout the day for us here on the fox business network. the latest on the track transition as the search for secretary of state expands. theater trend advisor kellyanne conway says trump will have additional interviews this week. the new name include exxon ceo rex tiller said. also, jon huntsman, a former u.s. ambassador to china and utah governor pitt also the father of abby huntsman, anchor of fox news. the latest development comes as trump advisors continue to beta for secretary of state should go to former gop presidential nominee mitt romney. , who was criticized her sharply attacking trump during the campaign was asked on sunday at the criticism was appropriate. >> i would turn the question around and ask if it was appropriate for governor romney to stick his neck out so far in
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attacking donald trump. never walk in a back and never encouraging people to support the nominee wants mr. trump had won the nomination squarely and fairly. >> conway telling chris wallace that trump's recent phone call with the president of tehran was a courtesy call. cheryl: house speaker paul ryan outlining plans under the trump presidency on 60 minutes last night. priority number one is repealing up on the care and replacing it with an affordable patient centered system. he also wants to make sure medicare doesn't run out of money. the speaker and trump trading insults, but ryan says all of that is now under the rug. >> a day after the election or two days after the election we basically decided to the bygones be bygones and move forward and was over in town with. ever since then we've had nothing but extremely productive
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conversations. >> ryan says trump is going to be a very unconventional president. nicole: 33 people now dead in a tragic warehouse fire in california. less than halfway through the debris. oakland mayor is a criminal investigation under way. the blaze ignited during the late night dance party on friday night. more bodies expected to be found as people who attended the party are still missing. some of the big guns were teenagers. >> we have now started to recover and identify the dems who are minors. we do have some children and the ages of 17 years old, possibly younger. not sure. nicole: terrible. the warehouse was home to an artist community. investors have several days of work ahead of them. family and friends desperately waiting for answers there. let's get you caught up in the
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global market action overnight in asia. we saw some immediate filing. but it bounced off the lows across the globe come at issue is the first to hear the italian referendum at the shanghai composite index in china 1.2% lower. hong kong's hang seng and kospi lost ground. >> to european stock market but take a look at what happened. all these markets are higher. experts said a huge selloff based on a no vote. right now the ftse 100 up, germany's dax up 143 points right now. >> a pmi member cabinet shows pmi member came in the chest of growth as well. look at dow futures this morning up 70 points after four weeks of gains. there's a look at the s&p up seven, nasdaq gaining 18. >> that can definitely affect commodities. still about 50 bucks. go 1166 a loss of $11 in change gh now.
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cheryl: the stories the u.s. dollar is so strong. so that 21 month lows. 106 and the rest of the currency lower against the greenback on the mexican peso, japanese yen weaker. cheryl: 2.1% is barely a fractional loss is less than half a percent right now. >> no doubt stock markets higher initially lower on the news and turned around. vijay showed u.s. stock market futures. dow futures now looking to the upside by six points. we are welcoming him back also a fox news contributor. we expected the big selloff if we got that now. we didn't get the selloff. now what? >> you don't think the market would have learned by now. the world is going to end whether it is brexit or the trump election. some smart people with debris
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has this big change here. i'm going to start dying instead of selling. maybe we are conditioned from the past. this would be good for the u.s. market. right now i'm not so sure about the european market. they seem to be shrugging up, so maybe they are starting to welcomed change. change is good. >> even with the risk of the year is on breaking apart which is something that is a possibility. it's exciting to see how u.s. markets have reacted to the results of the election. said they maria bartiromo has set the night this all went down. going to be a great thing for the u.s. markets. as the momentum continued as mr. trump makes the appointees for his cabinet? >> that's a good point. i think what people really voted for wa ot that much donald trump, but what he stood for and that was change. people wanted a change in the
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economy as we've often discussed has been pretty much lab since the current administration took office. i don't want to repeat myself. i think it's good for the economy. trump is bringing new and different things to the table. i don't like all the things he's bringing to the table but at least he's stepping up and shaking things up. there will be some industries that suffer in benefit, but overall it is a net positive for u.s. stocks. nicole: we only have 45 seconds a good want to bring it home at the economy center names. a couple of names tomorrow, trade and productivity. how are you feeling about the markets overall in the economy? >> good question. in the 35 seconds i think we will see still the economic numbers reflect an economy we had in the obama. i don't think it will be good.
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the market will do just fine because it is aimed the trend changes to take affect. i think that's positive. >> gary b. smith, thank you for being on the test. thanks, gary. cheryl: besides the political upheaval in europe, markets also watching three top officials speaking this week before the december policy meeting. the president william dudley will speak in new york and st. louis president james pollard will give remarks in phoenix and chicago fed president charles evans will speak in chicago. but that of course widely expected to raise interest rates at that meeting and that meeting is next week. coming up, italy's prime minister resigns after defeat or constitutional reforms there and we will have the very latest. you can think of right to matteo wednesday. a look at how that affects u.s. stock markets at home.
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but there is after the dow gained four weeks in a row and about 7%. could we be setting another record? a lot of talk about whether we will see down 20,000 by christmas. a lot of people say it's possible. as in the future nicole petallides, nasdaq futures at 21. the trend overall. we are expecting obviously some of the fed resident to speak today and said earnings. you are watching transcendent. keep it right here. you're the great here at morning markets and breaking news. the guy says, "you picked the wrong insurance plan." no, i picked the wrong insurance company. with new car replacement™, we'll replace the full value of your car plus depreciation. liberty mutual insurance.
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cheryl: 5:45 a.m. in new york city. the skate caught up in what is happening now. more candidates emerging to be donald trump secretary of state. booksellers said a former utah governor jon huntsman are said to be in consideration for the job. try but i think kellyanne conway confirms to fox news that the search is broadened. the decision could come by the end of the week. italian prime minister resigned today are voters rejected cons to touche number of farms backed by his government. the referendum was aimed at reminding lawmaking by shifting the balance of power between the
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prime minister and parliament. another sign of the antiestablishment sentiment that is sweeping through europe. protesters are celebrating after the u.s. army corps of engineers denied a permit for a key sections of the dakota access pipeline. members of the standing rock sioux tribe argued the pipeline endangers the water supply in sacred sites despite assurances from the builder that any damage would be minimal. the u.s. army corps of engineers called for a full reevaluation of whether the pipeline's route should be altered. checking the stock at the feature set of their opening bell. a downmarket about the opposite is happening. u.s. futures point to a stronger opinion by 72 at s&p up by seven and changed now psychiatry 19. that is what is happening now. nicole, over to you. nicole: back for a closer look.
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jane foley, senior strategist. good morning. you mentioned the euro, had we talked about it being on a 21 month low overall. a knee-jerk reaction, but now what? >> again, we'll have to see what happens this afternoon when we do see prime minister ramsey officially resign from his post and then see what the market is hoping for is a caretaker government was perhaps the above respect to finance minister taking it. that would be a good result in the circumstances for the markets. then we'll try and work out what will happen to italian banks. one set are under pressure today. of course you've got to go to the future. 2018, an election in italy. but we have at the moment is the nationalist movement, the five-star movement about 30% of the vote if there were an election tomorrow. that is perhaps where there is
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no vote yesterday really begins to take a different stance. imagine that there is a yes vote that would clear the way for strongman government and then we have perhaps a nationalist party winning the elections in 2018. from the markets did, you can begin to see some good come out of the no vote yesterday. cheryl: that the interrupt, jane. i want to stop you there because some said earlier he wanted to pick up on. you had said he thought it was going to be difficult. we have the antiestablishment vote. donald trump will be our next president. voters were tired of the same old, same old lake in italy and london. he is promising growth of 3% to 4% by changing trade agreements and other things pad said he didn't think it was possible under trump administration. why do you say that? >> well, what economists
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generally said that protections an isolationist policies as they are generally bad for growth. potentially bad for growth domestically, too. consider all the shells that the u.s. stories were suddenly replaced by goods made by americans with higher u.s. wages. you talk about this ordinary day-to-day good becoming a lot more expensive. nicole: defeat the year is in existence five years from now? >> yes. nicole: jane foley, thanks so much for your time this morning. >> thank you. nicole: how will the political chaos in europe play out with investors here? a closer look in once again a look at the u.s. stock index futures pointing higher. despite what we saw in italy, s&p up 7.5, nasdaq up made team. you are watching transcendent,
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cheryl: matteo rents a resigning after voters rejected constitutional changes back to the government. what is the deceiving for italy and of course the future of the e.u. let us peter dixon, global equities economist. good morning. thank you for joining us. reporter: hi, there. cheryl: the broader question, this nationalist, populist but we've seen in italy. does this put the e.u. more at risk of being broken apart
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eventually? >> certainly it increases the long-term weight because what we are seen as a move away from centralization and governments are being asked to take more control over issues. if you draw that conclusion, over time it does mean that either the european union did have to change quite significantly or the whole system starts to fall apart. it's not going to fall apart in a big bank, but it could start to disintegrate. as we all know when it gets unstable and dangerous in that i think is that investors are concerned about. >> you focus on global economy. what are the thoughts on the u.s. economy in relation to the u.s. economy and how economy and how we see it in italy? >> obviously come them it reflects to some extent the
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trends we've seen in the united states over the course of recent times. if you like my populist and certainly a desire of the existing government. the difference is in the united states is an economy which hopefully will continue to grow at rapid rates. if you look at the? of italy, where the focus really for the status quo, it was the fact that in favor of maintaining the zero growth we've seen over the course of the last 15 years. what that means is the economic divergence between the united states and europe will continue to widen. cheryl: you don't think they want more reform, not less? they said no to this reform, but voters to the polling in italy want more massive reform. again, not close enough theaters, but more protectionist policies for italy, which we've
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seen that rhetoric here in the united states based on their collection. >> yeah, i think that's right. that's not the reform you need. cheryl: that's what the voters seem to want. >> correct. that's right. that's the problem that in order for the european to be successful at mass market reforms, but they do want some kind of political reform push the politicians are like to put in place. cheryl: peter dixon, thank you very much for your time this morning. appreciate it. coming up, heading over to "mornings with maria." once again, a look at the u.s. futures. no selloff today. the predictions. analysts with 75 in the premarket, s&p up seven. we will be right back. ♪
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you you secretary of state is an incredibly position to fill. he's very fortunate to have serious men and women who all of whom need to understand that it would be to implement and add here to the president elect's america first foreign policy and be loyal to his views of the world. maria: the very latest in the trump transition this morning

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