>> this is dw news live from berlin. tonight, the day after. a politically weakened angela merkel could be working with two parties that have little in common. and the rise of the far right, the alternative for germany is

the third best in the election. and a vote for kurdish independence, a referendum. people are celebrating despite warnings freedom could be met with war. ♪ brent: we began with the fallout from the german election. tonight, the longest-serving leader in the western world is politically wounded and the doors of parliament are open to a far right party. chancellor angela merkel began the search for new parties to form the government. her support has dropped significantly. she is seeking a deal with the pro-business free democrats and

the greens. all this with one big elepha fag germany's parliament for the first time in 60 years. correspondent: nothing in the german parliament will stay as it was, behind-the-scenes party players and leaders feel each other out. one of the members of the afd walked out of its news conference. >> i have decided to not be part of the afd parliamentary group. correspondent: he is unlikely to be the last to distance themselves from the far right party. angela merkel is facing bigger problems, after the social democrats ruled out making a three way coalition with her

conservatives. even if it is all smiles in public, political outlooks remain worlds apart. the greens are likely to get a heavy price for any compromise. and the sp -- and merkel's sistr party is threatening to leave as well. >> a cap on refugee numbers. that is what we promised people. correspondent: the sdpd and the greens are unlikely to go along with any kind of refugee ban. >> we will continue talks with

the spd and the greens. it is important germany form a strong, stable government. correspondent: the social democrats are looking to reinvent themselves. the last thing they want is a rerun of the last government with angela merkel. >> she can call me if she wants. she probably has better things to do with her time. correspondent: the parliamentary groups will come together on the first time tuesday. brent: how exactly the new german government shapes up is being watched carefully in brussels. berlin remains hugely influential in the european union but some wonder about the influence the afd could have moving forward. correspondent: no one in the

european parliament is exhaling yet. lawmakers in parliament are deeply concerned about the strong showing of the far right in germany's election. >> experience has shown that such a right wing, radical party can poison the discourse. that is what we have seen with the u.k.. the program exit party -- the pro brexit party had no representatives in parliament but they still managed to turn the conversation. correspondent: it was the same ory in the netherlands went far right populists drew strong support in the recent election. >> the signal i saw from the german election is no one is immune to change. there is new fragmentation in germany.

we have to be mindful of what the far right is going to do. correspondent: the german green party says this is a wake-up call. >> with this prominent alliance between paris, brussels and berlin, we have the opportunity to bring the eu closer together. berlin have to be willing to play along. correspondent: the far right's growing support in europe make unhealthy eu to play closer concern to the words of all europe. brent: let's talk about the far right afd. they look set to have 90 seats in the bundestag. how much power will they wield and do they have enough members to sit in parliament? >> the fact is are they going to

be one block. normally parliamentary groups have a amount of cohesion. we have seen one of the major afd leaders saying she does not want to join the parliamentary group because she says people in the party are not serious enough about real policymaking. many of the voters who put themselves on the list to be elected, they are there out of protest. they want to send clear messages to establishment politicians and parties that they are not happy with migration, they want to deport migrants that are here but is not enough to carry them through in parliament? that is the big question. brent: it makes you wonder, if they are just there to protest, will the party fold part when it comes to doing business and

legislate. angela merkel has some unlikely bedfellows, pro-business fdp and the greens. >> she is facing opposition from her own party. we are seeing more pressure from the more bavarian sister party to go in a direction that is not in line with the greens. the greens quite liberal on a number of issues like immigration. these three potential partners are going to be taking out their programs to see where there are possible areas of compromise and where there are deep divisions. one of the decisions will be on the approaches to european union integration. the business friendly free democrats have made a lot of

noise about having a much less integration friendly policy. it would torpedo good cooperation with the new president of france. it could be difficult with that kind of a coalition. brent: will we even have a new government come christmas? and if not dare i mention the word new elections? >> she was asked if we can get there by christmas, she expressed optimism. there is differences between these parties. some of that could have been tactics. it is possible the democrats could roll back on their more difficult statements. if they cannot hammer out a coalition, new elections is what happens with the parliamentary system. no established party wants to see that happen.

if they look incompetent, that could drive even more voters into the arms of the far right afd. a lot of pressure on everybody. it seems to be clarifying in some degree but it's going to be a long, tough business. brent: we appreciate the insights. the afd did especially well in eastern germany, the part of the country that gave rise to the anti-islam protest movement. our correspondent is in the eastern city of dresden. defense of this report. correspondent: we are at the market place where this movement against the islamization of europe, as they call themselves. you see people with the german

flag but there are clearly right-wing extremist among them. racist, right-wing extremist. they clearly support the afd. when they spoke about the afd result, the entire square behind me screamed asd. they clearly support the far right afd and the speakers on stage, their voices have an arm in the parliament with the afd. brent: the political uncertainty here in germany following those elections have financial traders on edge. they do not like the news. >> trading on the blue-chip

stock index, the dax was quite restrained. the longer coalition talks run, the more uncertainty for business. companies here are hoping for a quick resolution. that is not the only thing worrying business leaders in germany. correspondent: shocking, that is what the volkswagen ceo called the afd's entry into the bundestag. fearing it will put german political stability to the test, leaders are calling for the formation of a new government. >> they will be very difficult negotiations but they have to agree on a forward-looking program so business is aware of what conditions will apply in the future. correspondent: the federation of german industry wants to avoid damages to germany as a business

location. it is calling on the government to provide a 300 million euro investment package. germany's chambers of commerce and industry are making similar demands. >> the business community is sending it own investment. investment in education, a modern infrastructure and entrepreneurial activity. out r country lives off ideas and the work of employees, that is our resources. correspondent: another important focus is continuity, which is exactly what angela merkel is providing with a fourth term in office, according to deutsche bank. soeme think her approach could

help germany move forward in the coming years. brent: i asked to the president of the european school of management and technology if he shares the worry that long coalition talks will impact businesses. >> it takes time, therefore parties will have to make conclusions on where to go. the economy is doing well. the parties have a stable view of what needs to be done. the difference is not too big. there is no reason to worry. brent: air berlin's supervisory board has given the go-ahead for further talks with lufthansa and easyjet, giving hope to employees whose jobs are on the line. correspondent: the bank of berlin stated that negotiations with lufthansa and easyjet are

being held until october 12. >> considering the difficult situation, i'm relieved to say that after our negotiations, we are on the way to achieving good job prospects with our bidders. correspondent: technical details will be thought out in the coming weeks and any deal will need approval from lawmakers. easykejet is only interested in parts of the passenger airline. the sales and should generate some 315 million euros. that is good news for the

german taxpayer because the bridging loans provided fo --provided by the german government can be paid back. brent: u.s. president donald trump said north korea's leader would not be around much longer. north korea saying it has the right to take countermeasures and stating the u.s. has in directly declared war on the country. she is on wall street. comments from north korea have made some investors cautious. correspondent: even if trump say s he did not declare war on nort h korea, if north korea heard war they are going to act accordingly.

that is what investors are worried about. they explained the u.s. has not declared war on north korea. investors look at this with some discomfort. stock prices on monday -- safe haven assets are favored in times of crisis. the price of gold is rising. brent: investors turning to safety. the big story in germany is the election results. what has been the reaction on your side of the lincoln --of the atlantic? correspondent: investors care about uncertainty and instability. the results show how torn the german population is. investors are asking what will

the right-wing movement changed regarding germany's role on the international stage. if the free democratic party is going to be part of the coalition, this could be some stability for the economy. to quote a chief economist, anyone who thought one thing would have a rude awakening. and some think this may change the ecb plan to end their money stimulus. brent: thank you very much. now brent is talking brexit. brent: britain and the eu were talking at the negotiating table today. this just after theresa may gave a speech to revive stalin brexit talks. the eu chief negotiator said the

eu would not discuss may's call for a two-year transition deal until progress is made on money and citizens rights. our very own correspondent is in brussels. she has been watching those negotiations closely. david davis was confident in his statement, what were his main points on the eve of negotiations? >> his main point was a line and blackmail. theresa may in florence announced britain would honor its obligations, however, money would not be talked about before the negotiations had reached the

end round and that is the round where the talks go and turn to the relation between the eu and great britain. no money from david davis coming until the eu moves forward with talks. that is not what one would call a constructive attitude. brent: he said the eu is keen an d eager to understand how theresa may's speech will translate into negotiation. is there too much confusion on key issues? >> what the eu wants and what the chief negotiator wants is facts and figures.

he does not want a lot of rhetoric. none of that has been forthcoming from the british side. he had his o -- own bucket of cold water to pour on proceedings when he said the talks will not proceed to the interim agreement before the divorce was settled. the negotiation is going in circles. this is a game of chicken. the question is who win first, my first guess would not be michel barnier. brent: do you think theresa may and her government are paying enough attention to these negotiations? >> if you look at it from a brussels perspective, the answer is no. policymakers here in

the eu say the brits are talking to themselves and going around in the same argument without reaching a conclusion. the enormity of what is supposed to happen here has not reached the government. the deal between the eu and britain will not be threshed out in one long summit and second point is angela merkel will not come in to save britain. particularly not after the elections we have now seen in germany. a deal needs to be reached at the negotiating table and they need to see facts and figures on the table. we are not seeing that. brent: as always, thank you. here are some of the other

stories making headlines around the world. a new you in a report says that russia is -- a new u.n. report says that russia is committing crimes in crimea. police in dominica say the death toll has risen to 27 following hurricane maria's strike. maria caused devastation and flooding with the category five hurricane slammed into the island last week. district congressman anthony weiner has been sentenced to 21 months in prison. he was convicted of sending sexually explicit material to a 14-year-old girl. he will be added to a sex offenders register. the votes are being counted after your iraqi kurds went to

the polls in a controversial referendum that is heavily opposed to the government in baghdad. the vote took place in the kyrgyzstan region and other areas of iraq. it would give kurdish leaders a mandate to begin talks to leave the country. correspondent: kurds celebrate the holding of the independence referendum. >> today we voted for the independence of kyrgyzstan and its independence from iraq. we want to change our identity to jur -- to kurdish. i say goodbye to iraq and hello to independence.

correspondent: iraq's central government said it will never accept the splitting up of the country. the u.s. feared it would distract from the fight against the so-called islamic state. the kurds say it is part of acknowledging their fighters's part in defending from is. >> we make sacrifices for the land and god willing the jur --e kurdish state will happen. we will sacrifice ourselves for it. correspondent: iraq's population also -- iraq's neighbors also have populations of kurds.

>> our attitude on this issue is clear, regardless of the results, we have declared this referendum null and void. it is not in conformity with the current law in iraq. we declare it illegitimate. correspondent: turkey has tightened up security on its border with kurdistan and it has threatened to close off the pipeline that carries oil from kurdistan out of the country. brent: japanese president shinzo abe has called for a snap election.

he is expected to order a major economic stimulus package as part of his campaign. the date for the election has not been set. here is a reminder of the top stories we have been following. angela merkel has urged germany's top political parties to help form a stable government. the social democrats have ruled out entering a coalition. after a short break, i will be back to take you through the day. a special edition, the day after the german elections. ♪

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elaine: beef is a major part of argentina's vibrant culture and identity. after a long and steady decline, can it once again become one of the world's top exporters of beef? i'm elaine reyes in washington, d.c. and this is "americas now." first up... tango, bold malbec wines, and tender cuts of meat; 3 reasons why people travel from all over the world to experience argentina. but the beef industry has fallen on hard times as its production and exports have dropped. [man speaking spanish] translator: a while back, the market received over 20,000 animals per day. now it's between 8,000 and 10,000. man: but that looks set to change. elaine: correspondent joel richards went to the south american country's grasslands,