and they want to control italy and the agreements on the european union is an advantage for germany and a disadvantage for italy. italyuch more serious than that. an election later this year may become an unofficial referendum on italy's membership of the euro and on its place in the european union, that this country helped to create. james reynolds, bbc news, rome. a brief look at some of the day's other news stories. a british national, who was held on death row in ethiopia on terrorism charges, has received a pardon. andy tsege has been detained in the country where he was born since 2014. it's not clear exactly when he will be released. a 28—year—old man has been arrested on suspicion of murdering an 11—year—old girl and a woman aged 31 in gloucester. they were found seriously injured by police just before five o'clock this morning. police have urged anyone with information about the incident to get in touch. the health secretary, jeremy hunt, has promised to make the nhs in england a beacon for pay equality, after launching a review of why female medical staff are paid less than their male counterparts. at presen

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and they want to control italy and the agreements on european union is an advantage for germany and a disadvantage for italy. italyters, but this is much more serious than that. an election later this year may become an unofficial referendum on italy's membership of the euro and on its place in the european union, that this country helped to create. james reynolds, bbc news, rome. what to make of it? justin urquhart stewart from seven investment management joins me now. good to see you. carlo cottarelli, another name we should probably not consign the memory banks for too long as the new prime minister.m remarkable, isn't it, when you actually think about what has happened here? here have an election that has thrown up the possibility for a government with two parties on the opposite extreme in this world, and despite their voting power, they cannot actually get a leader approved. mind you, it is probably just as well because i think it is fascinating to see, italy functions well despite its politicians, not because of its politicians, so it can carry on in this way for some time. i suppose that is going to be the

and they want to control italy and the agreements on european union is an advantage for germany and a disadvantage for italy. italy prime ministers, but this is much more serious than that. an election later this year may become an unofficial referendum on italy's membership of the euro and on its place in the european union, that this country helped to create. james reynolds, bbc news, rome. efforts are continuing to get a planned summit between president donald trump and the north korean leader kim jong—un back on track. a us delegation is due to have more talks with north korean officials in the demilitarised zone, but it's still unclear whether the summit will take place as originally planned in singapore next month. president trump and the japanese prime minister shinzo abe have been discussing korea by phone. they've confirmed they will meet before any summit between the us and north korea, takes place. our correspondent in seoul laura bicker asesses the latest developments. when it comes to those talks, they started on sunday in secret. it was another surprise on this peninsula. these are top diplomats from

and they want to control italy and the agreements on european union is an advantage for germany and a disadvantage for italy. italyo changing prime ministers, but this is much more serious than that. an election later this year may become an unofficial referendum on italy's membership of the euro and on its place in the european union, that this country helped to create. james reynolds, bbc news, rome. our europe correspondent katya adler has been looking at developments from brussels. everyone is asking what is going on. the short answer is that the political chaos that we were talking about last week as too populist parties will try to form a coalition government has now turned into full—blown political crisis. and what does that mean? it means different things were different people. those who are running scared ata people. those who are running scared at a eurosceptic populist nationalist government in italy, the third largest economy in the eurozone, so third largest economy in the eurozone, so brussels, the italian establishment, big business and industry, they are breathing a sigh of relief tonight now that

italy cannot print euros and yet people are paying ten times more the u.s. government has to pay ten times more than italy does to borrow. they're showing that their pay a central bank will continue to buy these bankrupt chalion bonds you know in a world where the pentagon recently announced they lost twenty trillion dollars and they can't find it you know that say they're showing you for for example that the u.s. can print money they could blow up twenty trillion dollars and nobody it doesn't matter italy if they blow up ten billion euro is the chaos ensues across europe right ok so you have twenty trillion dollars gone missing in the pentagon and there's no accounting standard whatsoever and italy that's a subset of the size of the italian economy the total g.d.p. of italy is considerably smaller than twenty trillion dollars and so you have obviously robots that are buying these bonds without any sound economic reason to do so so this is part of the bound bond pocalypse is that there's nobody actually a human being deciding that these negative interest rate bonds are a good deal these are robots eighty to ninety percent of all the deals are done by robots so the robots are either a trying to destroy the global economy or b are not programmed to act rationally well that's one way of looking at maro jaggy but we're going to look at why these ilands why the u.s. government has paid ten times more than italy to borrow money for two years why that is happening is partly because the u.s. fe

and italy's economy and for italy's abilityay in the euro >> there's some seismic shifts going on in europe in this circumstance we did see the anti-establishment populist parties win, but then they got close in france and very close in germany as well do you think the face of europe will look different in ten years time >> we've seen ups and downs. marine le pen in the end didn't do that well the populist party did better than expected in germany on the other hand, in the netherlands, the populist parties had done rather badly. the picture is mixed the italian situation is different. you can see there an alliance between the anti-immigrations, z z zenophobic northern league and the southern based party with a populist economic program. that that's -- the two together are a dangerous combination. >> ecb still negative rates, still has experimented with that, still in the midst of providing extra accommodation to the economy at a time when the european economy is looking better cyclicly. do you think the eurozone and the ecb hav

italy cannot print euros and yet people are paying ten times more the u.s. government has to pay ten times more than italy does to borrow. they're showing that their pay is such a bank will continue to buy these bankrupt chalion bonds you know in a world where the pentagon recently announced they lost twenty trillion dollars and they can't find it you know that's a that's showing you for for example that the u.s. can print money they could blow up twenty trillion dollars and nobody it doesn't matter italy if they blow up ten billion euro is the chaos ensues across europe right ok so you have twenty trillion dollars gone missing in the pentagon and there's no accounting standard whatsoever and italy that's a subset of the size of the italian economy the total g.d.p. of italy is considerably smaller than twenty trillion dollars and so you have obviously robots that are buying these bonds without any sound economic reason to do so so this is part of the bound bond pocalypse is that there's nobody actually a human being deciding that these negative interest rate bonds are a good deal these are robots eighty to ninety percent of all the deals are done by robots or the robots are either a trying to destroy the global economy or b are not programmed to act rationally well that's one way of looking at maro jaggy but we're going to look at why these ilands why the u.s. government has paid ten times more than italy to borrow money for two years why that is happening is partly because the u.s. fe

italy. and they want to control italy and the agreements on the european union is an advantage for germany and a disadvantage for italy changing prime ministers, but this is much more serious than that. an election later this year may become an unofficial referendum on italy's membership of the euro and on its place in the european union, that this country helped to create. james reynolds, bbc news, rome. police have arrested three people suspected of drug dealing at a dance music festival in portsmouth, where people died at the weekend. the news comes after 18—year—old georgia jones and 20—year—old tommy cowan were named as those who died, afterfalling ill at the mutiny festival on saturday night. they were among 15 revellers admitted to hospital from the event, with organisers issuing a warning over a "high strength or bad batch" of drugs. a young man has been hailed as a hero in paris, after scaling a building to rescue a small boy who was dangling from a balcony. mamoudou gassama, who's from mali, has been widely praised for saving the four—year—old and is now to be made a french citizen. today, he met the french

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

was a huge comfort. comfort. of italy wants to lead the eurozone, the comfort blanket is removed. the comfort blanket is removed. for italy, it worries the whole system. italyit worries the whole system. thank you very much. in the belgian city of liege. he was later shot dead by police. and some reports suggest he was on a police watchlist. does contain some flash photography. gunfire mid—morning and suddenly confusion. on boulevard d'avroy, people scrambled to get away. were on the scene. passenger in a passing car, too. and taken a hostage. it all ended. police advance from the left. but look at the centre of the screen! the attacker runs out firing. he was shot by police on the spot. at least one of the officers was injured in this exchange. and this footage was taken seconds later by another witness. they shot him dead, the man says. this man lives by the school and heard it all happen. translation: i saw the police, the ambulances. it was impossible to go outside. this nine—year—old boy was playing in the school courtyard. teachers told the children to escape by a back door. translation: the man grabbed our concierge, bob. then the police fired. we al

italy cannot print euros and yet people are paying ten times more the u.s. government has to pay ten times more than italy does to borrow. they're showing that their pay is such a bank will continue to buy these bankrupt chalion bonds you know in a world where the pentagon recently announced they lost twenty trillion dollars and they can't find it you know that say they're showing you for for example that the u.s. can print money they could blow up twenty trillion dollars and nobody it doesn't matter italy if they blow up ten billion euro is the chaos ensues across europe right ok so you have twenty trillion dollars gone missing in the pentagon and there's no accounting standard whatsoever and italy that's a subset of the size of the italian economy the total g.d.p. of italy is considerably smaller than twenty trillion dollars and so you have obviously robots that are buying these bonds without any sound economic reason to do so so this is part of the bound bond pocalypse is that there's nobody actually a human being deciding that these negative interest rate bonds are a good deal these are robots eighty to ninety percent of all the deals are done by robots or the robots are either a trying to destroy the global economy or b are not programmed to act rationally well that's one way of looking at maro jaggy but we're going to look at why these ilands why the u.s. government has paid ten times more than italy to borrow money for two years why that is happening is partly because the u.s. fe

italy cannot print euros and yet people are paying ten times more the u.s. government has to pay ten times more than italy does to borrow they're showing that they are paying such a bank will continue to buy these bankrupt chalion funds you know in a world where the pentagon recently announced they lost twenty trillion dollars and they can't find it you know that's say that's showing you for for example that the u.s. can print money they could blow up twenty trillion dollars and nobody it doesn't matter italy if they blow up ten billion euro is the chaos ensues across europe right ok so you have twenty trillion dollars gone missing in the pentagon and there's no accounting standard whatsoever and that italy. that's a subset of the size of the italian economy the total g.d.p. of italy is considerably smaller than twenty trillion dollars and so you have obviously robots that are buying these bonds without any sound economic reason to do so so this is part of the bound bond pocalypse is that there's nobody actually a human being deciding that these negative interest rate bonds are a good deal these are robots eighty to ninety percent of all the deals are done by robots or the robots are either a trying to destroy the global economy or b are not programmed to act rationally well that's one way of looking at maro jaggy but we're going to look at why these ilands why the u.s. government has paid ten times more than italy to borrow money for two years why that is happening is partly because the u

italy -- alessan dra in italy. who would win? what would be the outcome of elections were held soon? is the question here because officials -- the socialist party wants to hold his vote of no-confidence and then form a government and then call an election. that's a sort of tension. liberals are looking very good since the independence crisis and they are saying not so fast. if we get a confidence vote >, t will be to get rid of him and call an election immediately. night a call yesterday which was dramatic for the gesture maddock, it's a free fall for the conservatives. they would lose more than half their seats in the clear winner would be these guys. that's why there is this tension between the socialist and liberals. they want to get rid of him but don't agree on the sequence of events and the timing. for the liberals, the sooner the better. mark: some people are mentioning italynd spain in the same breath. is that unfair? it could be unfair. i want to point out we got a very clear call, the biggest banks, a domestic story saying when you trade spain, they are doing long spain now is the time. they are do you have to look at the fundamentals. spain has been an economy that's been growing above 3%. for three years it's on track to grow again around that range. we are seeing a pretty big recovery and also they point out and i believe this is crucial, if we were to go back to new elections, the political story in spain is different to that of italy. it's more of a domestic issue. the reality is most are in favor of the eurozone. favorre all very much in of the european union even if you get a very fragmented paul or election. and we were to have a ballot, it wouldn't emerge in a skeptic government, so that's what they are pointing out. you have to look at fundamental growth, but also the fact there is a very strong report for the euro. mark: thanks for joining us

italy to where it was seven yea rs obviously put back italy to where it was seven years ago. looking at the italian public, how much appetite is therefore these types of reforms? well, italylly really devastating economic crisis, which was founded on structural problems the country has been experiencing since the 1990s. again, debt and experiencing since the 1990s. again, debtand an experiencing since the 1990s. again, debt and an industrial structure which could not really cope with the competition from around the world. and actually the numbers, the number of poor people has increased, the number of people who are struggling in making ends meet has increased. and so has discontent. and unemployment is still very high, in particular among the young. and this is why these tourney parties got so many is why these tourney parties got so ma ny votes, is why these tourney parties got so many votes, because they're seen as perhaps a new type of government which could perhaps fix some of the ills which have dominated the such a long time, the question is, will they deliver on some of the big promises they made during their election campaigns? well, that is the question. will th

italy these days . so i once again italy's facing the difficult task to form a government how can the economy cope with all of this when the economies get used to cope with it because we have said so many different governments in italy and what we do see right now it's economic stagnation so obviously the country would like to see a clear government but if it's not it's going to be muddling through as we had it over the last couple of years so it's alien banks have a severe problems what does it all mean for them now. for them of the need to make a distinction between the the legacy asset problems of the problems of the past they still have high non-performing loans in their books but they've also cleaned up the books so the new non-performing loans are bad loans and the books actually have been reduced extremely well so when you asked the c.b.s. think the problems at the italian banking system are not so severe anymore so i think banks will look relatively relaxed to what is happening and that's just imagine the scenario they can't find a solution for their problems what is this going to mean for the euro or the euro i think it's bad news if we don't have a very a functioning italian government be it a technical go

italy. we just spoke to mr. john ross this, italy should be responsible with their policies. sending out new guidelines reaffirming the debt to deficit ratios. the message to italyue with prudent policies. we shouldn't jump to conclusions about italy. italy must address the bottlenecks of growth -- that. interview wem the did. we are seeing a little more pressure, it will be the spread between the btp and german counterpart. a rise of 23 pips for the bones. -- bunds. this spread is one we will focus on most readily. in the bond market in the u.s., better bid there. the turkish lira getting paste at record lows. the emerging-market angst is permeating. the you buy u.s. treasuries, yen? auctionn the midst of was -- bid to cover ratio in line with auctions, but the yield the market was offered was the highest in quite a number of years, the highest since 2008. getting these options away is the critical point. btp is under pressure. juliette saly has your first word news. searche: in italy, the for the country's next prime minister has been thrown into disarray after doubts were cast over the suitability of the chosenor, the candidate by populist allies. according t

italy, what concerns you? that italy could leave the euro, or that further european integration takes a step back? l: italy euro. near, therere italy is going anywhere. they are in the euro for good or ill. european integration, president for the grand plans banking and fiscal integration, the italian political uncertainty offset that. idea explain the market turmoil yesterday? how do you explain the market turmoil yesterday? has: any honda dealer that watched an episode of "the sopranos" things they are an expert in italian politics. of leak and five star, these are shoehorned into a coalition together, a respective coalition together, that was never expected to last long. political uncertainty when you have a lot of debt and populist inclinations in areas of the ,lect it, -- the electorate that could lead to concerns. donovan, thank you for the mention of dominoes pizza. we need to educate you that the discussions we are having on italian political economics are occurring at angelo's pizza on 57th street, fourth generation italian pizza. good pizza in new york. what is the pizza going to be in the gdp in

ok so i'm going to compare this to the situation in italy italy has no viable economy partly because there is a monopoly on printing money for the euro that's the e.c.b. the e.c.b. has been locking in losses for pension funds and other passive investors across europe by basically buying up on their behalf bonds for the italian government at negative yields i.e. them and paying the italian government to continue with their reckless policies here they're hoping to have a similar sort of monopoly position that central bankers have that's the only way to compete with central bankers you as a businessperson have to compete with the central bankers they have a monopoly position and can print money at will but also burn money at will so here the rise in on profitable companies is partly the result of the growth in the technology and biotech sectors where companies tend to lose money for years as they spend on customer acquisition and research and development but it also reflects the willingness of shareholders and deep pocketed private investors to keep fast growing up starts afloat long en

italy. how the heck did it happen again? for the record, that's pretty much every american company having nothing to do with italy aside from a handful of players, which set a new all time high earlier this month last night, i told you the sell off made no sense which means today's rally is the most logical thing in the world why? let's focus. first off, we are not in italy that may sound geographically ouk obvious, but if you listen to the bears, it made it sound like wall street is located in rome we are fortunate enough to have a place in italy, not we, "mad money," but we my family i got to tell you, anyone who thinks that italy is a functioning state with a live banking system is kidding themselves i know there is a lot of consternation with a lot of political developments i wouldn't read nearly as much as all of these people who come on tv or write about it are saying the truth is, italy is crying out for better government, any better government, something establishment parties have failed to deliver time after time of course people voted to throw the bums out they want a functioning mortgage market and lower unemployment market they are sick and tired of the strong euro which hurts the tourism business italy loses far more than it gains from the euro. i think they would be better off with their own currency. and they don't like the eu's heavy hand

italy's economy wreaking havoc on the european economy after italy's bureaucratically appointed president blocked the euro skeptic government. you warned and talked about this long before anyone else i know. something is going to have to happen here. we saw the establishment rattle the markets with this move today in italy. but is it going to get any better? >> they can gem out, they can get in. the market will be lock rocked no matter what. but it won't ever be okay until each national country get their act together. that means cut massive government spending, cut red tape. stop redistribution. give freedom back to the labor market. i have never been a fan of the european project. i always predicted it would devolve like this. but the national big government in europe -- and the euro is missing the elephant in the room. charles: i agree with that, tammy. it's the reason they went on the euro. as it turns out none of them have any fiscal discipline. you have brussels giving marching orders. and there is only one central bank so countries can't print their way out of these circumstances. but the citizens are saying we had our epiphany and the establishment won't let them out. tammy: there is talk of another snap election to try to do it again. the establishments resisting the voice of the voter. at the s

because it's even not in the interest of there are currently heavily indebted countries look at italy italy has a problem with its own transfer union between the north and the solve and the south is now a net. recipient of transfers for decades so it does not really help the development the economic progress in their currently distressed countries if you just they're come up with a debt equalization scheme that is now proposed again it's important to see it's not in the interest of the union as a whole as a euro zone as a whole even not in the interest of the currently weak economist to come to a new rule that says everyone can. take up debt but the rest of the union will have to pay for it from the kill institute for the world economy seven coats thank you very much to our pleasure back to fill. thank you will that take a look at some of the other stories making news around the world an explosion in the southern afghan city of kandahar has killed at least sixteen and wounded dozens more officials said what was first thought to have been a minibus packed with explosives authorities later sa

italy. after that, you have the political crisis that follows. allow me to say that italy has corrupt,en inefficient, problematic. but from the 1950's to the 1990's, italy, italy, despite all the problems you said -- the demographics, corruption, italy was growing. it was not in the class of permanent stagnation. that was due to the terrible design of the eurozone. scarlet: so the only way out for italy is to leave the euro? to turn no other way the economy around or get out of stagnation? let me use a metaphor. when you are a building on fire and there are no exits, there are two things to do pay the first thing to do, given there are no exits, is put the fire out. so my recommendation is the italian political system should go to brussels, particularly berlin, and join forces with emmanuel macron and all the rest of us in europe asking for important reforms to the way the eurozone is run. at the same time, have a plan whole -- holea need be.walls if i've never been a proponent of exit, but when you insist it should be business as usual, way business as usual was not working -- wolfango let me bring back into the conversation. wolfango: i want to make t

italy. then investors would have to identity -- address what that means, does it mean italy will become fiscally responsible? potentially with its large debt burden debt relative to gdp, 130 percent and a lot of unanswered questions from italyhas weathered the in conclusion election that took place in march remarkably well. spreadlook at differential between italy and germany, it is roughly 130 basis points. wasfrench election, it above 200 basis points. we own up debt we are nowhere near the fear levels we were around a year ago ahead of the french elections. italy isn ten-year but noticeably coming down by five basis points today. vonnie: we will go to italy in it next hour to talk about or the u.s. markets are still in the positive. the dow jones industrial average up .5%. a gain in the friday session. the s&p 500, a .5 points. pharmaceuticals leading the s&p. verizon also up more than 3%. we will have more about that later as well. there is a conference going on and of course, the at&t news with the statement that is impacting stocks as well. an activist story. and bouncing back two and a quarter percent. news corp. down more than 5% today. and -- down 30%. nasdaq. you can see oil isn't moving as much today. the premium

italy. if they don't come anywhere towards italy to help the bank with their fiscal spending plans, which are massive, no problem at all. and give ae too far little bit to italyain will look over and say ok, why are we going to everything we are going through when italy is getting it from brussels? then, you will have more risk in europe. jonathan: that is your answer, why would the europeans do it? why would they let that happen? why give one inch to italy to allow spain to follow this and get out of control? joe: the europe response will be measured. ultimately, we are not convinced that much will happen as opposed to what is being talked about. btp'san: would you buy where they are now? joe: we think they are fairly priced. there could be better points of entry, though. jonathan: interesting. diana, your thoughts? luke: i -- diana: i think with the political stories, especially when the outcome is uncertain, i don't buy when things are fairly priced, only when there is some cheapness in the price. so i think it is still too early. we do not know exactly what it is that you will get in the end, who the prime minister is, and to the finance minister will --

italy, germany, italy and greece somewhere out there. luke: the leadership has changed. will be theron voice of europe because angela merkel has lost to much power. will beesponds to italyatched in the next several weeks. if they want to push on fiscal and that fits him, we may see brussels. the splitting of the market is a classic approach to look at your portfolio. it is all europe and the same risk. italy at the moment, i agree with diana, buy when it is cheap. jonathan: you don't like btp's now, do you like bunds even less? luke: yes. jonathan: that bad for bunds? luke: yes. it is two years passed for germany. in germany, you are seeing wage rises coming through and you are seeing the need to get fiscal expansion out there to the rest of europe so then it will be disastrous. jonathan: the front end is just there, like a cold spring, push -40 basis points. we start adjusting for a change there? luke: will make it to the 10-year at plus 40. that is what i feel would be fair value. that would be pricing in where germany should be going. in october, when draghi is known -- is no longer buying germany maybe that is , when you start seeing 90 or 100. jonathan: i'm going t

italy facing chaos as the coalition deal falters. i don't know if you saw the story earlier? poor italy. three months m, earlier? poor italy. tting anywhere like a functioning government and if anything slightly further away because it looks like everything has fallen apart and italy's famously impartial president stepping away in saying it cannot work and i think we will get new elections but it's hard to see that they could possibly be more successful than the last lot. they are saying autumn for the possibility of more elections. are saying autumn for the possibility of more electionsm holds the record for the longest period of time without a functioning government, so that was over a year. i say is the parsley belgian person in the room. the differences -- partially belgian. don't be mean about the belgians. this is the one where brussels worries about it. we like to think they worry about brexit and wear as they regret it, they know it's a disaster the britain overall and they are not as worried as we think, but they are worried as we think, but they are worried about italy and when italy is electing populist politician

i want to bring you comments from the central bank governor in italy he is saying italy must press on with reforms italy must be a respected voice on debate in redesigning eu regulations. there are no short cuts for cutting debt he says italy is only constrained by eu logic, not eu rules. and we are only a few short steps away from losing trust he says growth is increasingly self-sustained, and as italians we cannot disregard constitutional constraints >>> in asia i want to bring you news about -- some details here, about ant financial. it closed its late st funding round. the fund-raising values the operator of ali pay at 1$150 billion. apple is reportedly planning to use high-end technology on screens for its 2019 iphone models the tech giant will use oled panels which makes smartphone screens sharper and brighter currently only the iphone x uses the oled screens the report moves stocks of some key apple suppliers with japan display falling more than 20% at one point. >>> a drastic profit warning from dixons carphone the retailer says profit will fall 21% this financial year thanks to a shrinking uk m

italy is not bigger than 3% of the market. the exposure is really quite irrelevant. onever, i remain optimistic the economic improvements in italy. italywo years. this year will be another strong year. this is what really matters. the rest is political changes and turmoil. francine: if you look at the yields and fixed-income, does it pushing toward investing in other areas? mario: not really, not really. we can't react on such a short amount of time to markets, our view is unchanged. equities will do quite well through 2018. u.s.,nk in europe and the rates will go up, which will put pressure on the values of the debt. we have been preparing for this for quite a long time and we have not changed the view because the last few days of events. francine: what does it mean for ecb policy? i remember are great interviews, you are trying to figure out the politics in italy and what it means for european growth in general and what it means for central-bank policy. mario: ecb has to continue doing what they plan to do, moving into tapering, getting out of qe reports. we need to see and get back to a normal state of the economy. qe has been good

power italy is a founding member of the european union that has contributed immensely to european integration the commission is ready to work with italy with responsibility and mutual respect italy deserves respect as i said those elections in italy could come as soon as september and between now one polling day but sure to be a lot of people keeping an eye on what comments are coming out of brussels with regards to which feet which direction italy should proceed in the future. donald trump has appointed a new. commander of u.s. and nato forces in afghanistan in two thousand and one shortly after the nine eleven attacks washington said it was intervening to get rid of terrorists there and has never left you tell and general austin miller becomes the eighteenth commander in the seventeen year campaign despite the constant turnover of commanders the latest us watchdog report says that the campaign has brought little good to afghanistan. it is good. for some in afghanistan who had hoped that america's presence would assure in a new period of peace and stability have paid a heavy price says so america reports back in august twenty sixth an afghan man named his son after donald trump

italy's -- italy's populist party has agreed on a prime minister. is a progrowth cabinet later for monday, but they have yet to announce names. france warned the new administration must respect italy's debt commitments and not threaten the current currency. boris johnson says brexit's calling for betrayal. they should trust theresa may to pull out the promises. he was in argentina to drum up post-brexit business. that negotiations begin on tuesday and talks are stalled over the irish border. bloomberg has been told ms. management of money at a middle east group could go beyond its $1 billion health care fund and ordered the commission by hope right -- high-profile investors including the bill and melinda gates foundation that health care money was being diverted elsewhere. a separate review by deloitte's has uncovered discrepancies and other areas. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. arey: the u.s. and china waving the white flag in a potential trade war after two days of talks last week in washington. the economics and policy editor kathleen ha

power italy is a founding member of the european union that has contributed immensely to european integration the commission is ready to work with italy with responsibility and mutual respect italy deserves respect as i said those elections in italy could come as soon as september and between now one polling day will show to be a lot of people keeping an eye on what comments are coming out of brussels with regards to which feet which direction it to the should proceed in the future. seven years on from the start of the war in syria is it finally coming to an end and does the country's president have a nickname for donald trump artie's smug as the of sat down with bashar al assad to get the answers to those questions on a variety of others here's a preview of that exclusive interview. if anything the syrian civil war is growing hotter on the ground of bashar al assad is winning the rebels and islamists are in retreat unlike their backers forces from five nuclear powers are now directly engaged in military action in syria each determined to win with salvage what they can on the ground which makes the perfect ground for an escalation an escalation that no one wants but one that nob

italy. italy which is struggling as a welfare state with all a the immigrants coming into italy right now fromfrican nations and they're coming into this country and they're challenged it support themselves and the italians who are up against it themselves, feel as though they're taking on unnecessary burreddens. you add on to that, the fact when they switch to the euro a lot of them had a harder time selling their goods. i will use portugal as an example. portugal and spain as well were very big in the textile industry. i can remember being there during the height of the european debt crisis and talking to portuguese manufacturers, textile manufacturers, that had owned factories, had had some of these factories in their families for many, many years. it is so hard to compete. we used to compete on our currency, and we had a shot against the likes of china. now we don't have that shot anymore. same thing is going on in italy, not as big as the textile area although they have silk and como, up by lake como where i was married actually. but for 2 trillion-dollars economy that relyies on the manu

italy. facing an existential crisis, according to angel gurri a. we are facing a showdown. italy faces a showdown. there is a bond option today in italy. uld you buy italian government bonds? ♪ manus: good morning from dubai. i am many -- manus cranny. these are today's top stories. populist onslaught, the country should be set for a snap election as early as july. five-star and lead surge in new opinion polls. contradiction -- conversation, the prime minister tells bloomberg no deal is better than a bad deal as the u.s. president moves ahead with tariffs on china. markets in turmoil. u.s.s are in the red from to asia as investors flee risky now on theused italian debt option. the worst is over for italy. with many of these stories developing around the world, we have our troops in position. and recording his life in rome -- anne marie is in rome. we have mark cranfield from singapore in london. we have our guest post from vanguard. let's get you did these markets. we are waiting for indonesia to drop their data in terms of are they going to raise rates? we accept -- expect .25%. you are seeing a little pressure in equity markets. trump

decision of europe north of italy because italy with the president decided to go make war in libya and my view is that after this decision we open. a gate. not from only beer to italy but from africa. to europe. this gate arrived for lack of political governance in african. and for the lack of vision. of european leaders i remember the discussions with my colleagues in two thousand and fifteen when i was prime minister please halpert not italy please out of these people who died in the business see a woman who died in the sea pregnant they were egg their child to kill all who died in the sea. ok maybe i lost two pints. in the survey in the elections but i prefer save the human life the save the. two bites in my in the sun what would you do right now. i mean he's not does not mean i think everyone could arrive in italy i can see their priority blot the people in africa and give them the paternity to be able to create a new life in africa particularly because of their long and perspective what about now people coming to your country should they be sent their last period a lot of the number of migrants are. really. significantly descry is that so now the situation is

power italy is a founding member of the european union that has contributed immensely to european integration the commission is ready to work with italy with responsibility and mutual respect italy deserves respect as i said those elections in italy could come as soon as september and between now one polling day we're sure to be a lot of people keeping an eye on what comments are coming out of brussels with regards to which feet which direction italy should proceed in the future. the doctors who treated the ex russian spies i guess could have powell and his daughter following their poison in the british city of seoul spree in march have appeared in a b.b.c. documentary and see if your can has been looking into what new things we've learned about the case. this is a b.b.c. newsnight program documentary has certainly highlighted some more curiosities about the whole script all saga adding just a little bit more mystery to this whole story if we didn't have enough already now this is a firsthand account of the medical staff doctors and nurses that were treating this compiles when they were admitted to hospital in solsbury following the poisoning and for starters some of the things

italy that , a spendingees on increasing government debt, gdp. that is a marginal fiscal expansion. than the yield spreads and italy will be overturned. -- in italyill be overturned. i wouldn't say this is a government that is going to be around for a long time. thisarty may be thinking will play for the next five years. 66th elections since the second world war. kevin was making a point that the prime minister -- that who was nominated as prime experience ino the rough and humble world of politics. does the ecb need to do more watchingn say we are what is happening to btp yields? >> the italian government needs to know reaching that 3% limit is not acceptable. anna: is it going to be about what they are buying? stop buyingusually italian bonds, but they are only just about stabilizing the debt. if yields begin to have debt maturity and they are refinancing at much higher rates, they have less room to maneuver. are paying more in higher debt servicing charges, that is not good to help the economy. this comes to an expansionary government. saying 2.4% is the line in the sand. in other words, you hurt the economy in q1 20 all of the work and you un

power italy is a founding member of the european union that has contributed immensely to european integration the commission is ready to work with italy with responsibility and mutual respect italy deserves respect as i said those elections in italy could come as soon as september and between now one polling day we're sure to be a lot of people keeping an eye on what comments are coming out of brussels with regards to which feet which direction it to the should proceed in the future. donald trump has appointed a new commander of u.s. and nato forces in afghanistan in two thousand and one shortly after the nine eleven attacks washington said it was intervene. to get rid of terrorists there and has never left well lieutenant general austin miller becomes the eighteenth commander in the seventeen year campaign despite the constant turnover of commanders the latest us sportstalk report says that the campaign has brought little good to afghanistan. while some in afghanistan who had hoped that america's presence would assure in a new period of peace and stability have paid a hefty price as america expects.

about italy's possible exit from the euro one of the leaders of italy's failed coalition notice that no such measures were ever in their program. for you to doubt 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 never having been our plan. when the euro skeptic coalition failed to see a form of government its latest claim pressure from the e.u. on these peter oliver has more on the role brussels is played in italy's ongoing political crisis. on sunday night when sergio mounts the relative italian president vetoed the proposal of a euro skeptic for the role of economy minister he essentially scrapped a coalition between the populists of the five star movement and league and north but what he also did was he said essential center talian voters back to the polls he sent the markets crashing down and he sent accusations flying that the e.u. had put a bit of pressure on him to do just that well it also saw. the e.u. budget commissioner say that this down toilet downturn in the markets was a message to italian voters for next time that if they vote with the euro skeptics then well they wil

and financial companies that could potentially have exposure, maybe not to italy by itself but to another big lender to italy. say, a deutsch bank or someone else in europe. >> jack, thank you so much. >> thank you. >>> now when there is a steep selloff like we saw today, investors do tend to take another look at the sectors of the market that have outperformed, like technology. and that's what dominic chu is doing for us tonight. >> reporter: despite the ups and downs of the overall market over the past few months, technology as a sector has managed to hold up relatively well. while the broader s&p 500 is now pretty much flat on the year, tech is up by over 9% and it's just one of three sectors that's holding on to gains in 2018. while a lot of attention is paid to the megacap tech stocks like apple, microsoft, google parent company alphabet and facebook, because they do have an out sized influence on the index like the s&p 500 and nasdaq, they aren't necessarily the best performers so far this year. within technology, other stocks have produced far better returns. video game maker electronic arts, for exam

these are things, you don't solve saying italy, italy, italy. have some actual answers and these guys really don't. stuart: i suspect you and i agree on this, it all goes back to america americas opening the door to millions of -- angela merkel. millions of migrants. that started whole ball of wax rolling. i put it all on her doorstep, how but? >> no, i absolutely do. when you have an individual who detaches reality from other ideology, she said, what was her new year's eve statement a year ago, the greatest threat to our nation is jihadism, but we will have zero limit on immigration of refugees, well then you're living in fantasyland f these people are not really refugees from the most part are becoming there because of the welfare state, because of the benefits and you don't have people paying into that system because you're not having children, well, it is just basic mathematics. sooner or later the whole thing has to collapse. stuart: when, do you think that is going to happen? do you think the euro as a currency is going to collapse? >> wha

italy the commission in brussels. italy's fate does not lie in the hands of the financial markets regardless of which political party may be in power italy is a founding member of the european union that has contributed immensely to european integration the commission is ready to work with italy with responsibility and mutual respect italy deserves respect. well we can expect elections in italy perhaps even as early as september the populist from five star and leak an order already getting themselves back into campaign mode to push for that but i'm sure we'll also be paying a close eye on exactly what is being said on these elections from brussels in wealth pretty much from now until polling day sure ok thanks but it was arty peter all over that. now in other news this afternoon donald trump has appointed a new commander of u.s. and nato forces in afghanistan the u.s. led mission to help afghanistan get rid of terrorist started in two thousand and two shortly after the nine eleven attack the tenant general austin miller becomes the eighteenth commander of the seventeen year campaign and that means on average the afghanistan mission has h

italy that needs the e.u. the european union stability relies on the financial stability of its member to the south. but as italy keeps markets jittery greece looks on track for steady growth again in two thousand and seventeen the economy expanded by one point four percent this year the o.e.c.d. expects growth of two percent and given those figures athens could soon exit the international bailout program by the e.u. the european central bank and to the international monetary fund the current third aid package totals eighty six billion euros and it will run out in august two thousand and eighteen preliminary forecasts suggest that greece's debt burden will reach around three hundred fifty billion euros this year but the economy is on the mend unemployment has dropped below twenty one percent many greeks however work in low paid part time jobs also taxes are high while pensions and salaries are fallen twenty to forty percent so the economic recovery as yet to reach average greeks. apparently as kook lee's starts his shift in a restaurant on the island of lesbos. he's working as a barista even though he's a traine

the central bank in italy issued and unusual warning for an institution that barely —— rarely ventures into politics. the head of the bank of italy said that italye of trust and that is... all financial markets rests on the credibility of figures like central banks. and governments. sol credibility of figures like central banks. and governments. so i think that we are at the end of a long bull market. the end of a long economic cycle. and you know, people are nervous. this may be the trigger which causes the end of that. i think that is the concern. there are so think that is the concern. there are so many different moving parts you and all markets are interconnected. as you say, they are all dropping at the moment so this is an important week. what is the possible outcome of what will happen, do you think? as your economist earlier onset, what we need is a bit of stability. i think that the markets have sent a warning to the italian politicians. they have said that you need to create stability here. he was suggesting that maybe we will get an a cce pta ble suggesting that maybe we will get an acceptable coalition government put together. it doe