the internet is beppe grillo's most important means of communication. his blog is one of the most successful in italy. >> i have been writing here for seven years every single day. >> after the election, it is all down to his five-star movement. they could remain in opposition or form a coalition with the very politicians beppe grillo has been attacking force along. >> they are parasites. only out to make money and get rich. they see politics as their private little business. our movement proclaimed a revolution. >> revolution -- that is what beppe grillo has been calling for for decades. in 1986, when he made fun of the socialist when his corruption scandal was on public television, he reconstructed a conversation with the politician's secretary. >> more than 1 billion people live in china, all of the socialists, so who are the ceiling from? >> beppe grillo is no longer allowed to appear on television as a comedian. he never minced words. his target is always the political class. no one is baird. his performances filled halls and stadiums. >> anyone wh

the internet is beppe grillo's most important means of communication. his blog is one of the most successful in italy. >> i have been writing here for seven years every single day. >> after the election, it is all down to his five-star movement. they could remain in opposition or form a coalition with the very politicians beppe grillo has been attacking force along. >> they are parasites. only out to make money and get rich. they see politics as their private little business. our movement proclaimed a revolution. >> revolution -- that is what beppe grillo has been calling for for decades. in 1986, when he made fun of the socialist when his corruption scandal was on public television, he reconstructed a conversation with the politician's secretary. >> more than 1 billion people live in china, all of the socialists, so who are the ceiling from? >> beppe grillo is no longer allowed to appear on television as a comedian. he never minced words. his target is always the political class. no one is baird. his performances filled halls and stadiums. >> anyone wh

today, the protest party formed by comedian beppe grillo rejected his overtures. the group was practically bersani's only resort. >> we have met with people who are fed up with their about it -- their leaders and ability to lead. >> father and son see eye to eye on sports and politics. the 18-year-old is a keen rower, competing for a club. alongside his interest in sport, he also has inherited a deep distrust of italian politics from his father. >> i voted for the five-star alliance to send a signal. young people want change. i am sick of seeing the same old faces. they cannot be the only ones to represent us in italy and abroad. >> it was his first time at the ballot box, and he has no regrets about his choice. he won -- he once elected officials who serve the public and who are not just in it for themselves. >> the era of political privileges has to come to an end. entire families have to get by on just 800 euros a month while politicians waste money by the bucket load. it cannot go on like this. that is why the five-star alliance wants to cap politicians' salar

today, the protest party formed by comedian beppe grillo rejected his overtures. the group was practically bersani's only resort. >> we have met with people who are fed up with their about it -- their leaders and ability to lead. >> father and son see eye to eye on sports and politics. the 18-year-old is a keen rower, competing for a club. alongside his interest in sport, he also has inherited a deep distrust of italian politics from his father. >> i voted for the five-star alliance to send a signal. young people want change. i am sick of seeing the same old faces. they cannot be the only ones to represent us in italy and abroad. >> it was his first time at the ballot box, and he has no regrets about his choice. he won -- he once elected officials who serve the public and who are not just in it for themselves. >> the era of political privileges has to come to an end. entire families have to get by on just 800 euros a month while politicians waste money by the bucket load. it cannot go on like this. that is why the five-star alliance wants to cap politicians' salar

berlusconi, or beppe grillo, the toic maverick who decided make a party of protest. noen of them will give an inch. support.o they lose it is a game of chicken they play, and mr. napolitano, head of state has only a few weeks left in office. it is difficult when you consider the country is on the brink of an economic crisis with huge economic problems to face, widespread unemployment among young people and even -- problems of inflation. serious situation, no obvious way out. >> thank you very much. more bad news for anyone keeping his life savings in a cypriot bank. big depositors will lose more money under the bailout. the central bank confirms reports that savers at the bank of cyprus could lose 60% of their savings over 100,000 euros. they will convert 35% of them into shares. >> cypriots barely know what they'll wake up to next. savers at the bank of cyprus -- the latest news is not good. of deposits will convert to bank shares but they stand to lose more depending on how much is needed to prop up the bank's reserves. >> this haircut will create a viscious circle

is it going to be someone ultimately aligned with beppe grillo? >> well, that is what we're all waiting to see. we are expecting and everyone is using conclave language black smoke today and possibly white smoke tomorrow. the two big parties are almost certainly going to give in blank voting sheets today. grillo's people are going to vote for theirs and then after the third vote, they will go for a run off. so for the first three votes, there will be no conclusion. and then they're going to have to work out who's actually going to do it. it could be a grillo person in the lower house. it could be a p.d. in the upper house. but there are no certainties and no favorites. >> and i guess at this point, what do you think is the most likely outcome here? is it a minority coalition between better sanny and grillo? is there any prospect that grillo will loosen what he said his stance is when it comes to ruling with anyone, which is that they have to accept all 20 points of his plan? >> well, there is no chance whatsoever of there being a coalition between

the potential comedian and lager that a grillo -- comedian and blogger beppe grillo has refused to join. we all know that protracted political wranglings like those in italy can have an impact on the markets. we go to the frankfurt stock exchange for more. how are these negotiations in italy affecting the country's credit? >> those discussions and negotiations lead to uncertainty, and t discussn about cypress leads to this uncertainty, but the situation in italy is the problem because the fact that italy is the third largest country in the euro area. this really leads to the fact that the yields go sharply up for italian bonds, which means that it will be more expensive for the italian government to get fresh money, and nobody really knows how long this may go in this direction. >> any other stories moving the markets today? >> investors waited for new economic numbers to come fro the u.s., and there they are. consumer confidence dropped sharply in the u.s., which leads to a drop in share prices as well. the dax is down by 2/3 of 1%. there is also some profit-taking going after reaching

one of them, beppe grillo, is a comedian, so he might not be that defended -- offended. >> the others silvio berlusconi. he is a two-time former prime minister. >> the italian president's state visit to germany has been overshadowed by the diplomatic incident created by peer steinbrueck. italy and germany would continue to work together, despite occasional irritations. >tuesday, peer steinbrueck referred to a delete's former prime minister -- to italy's former prime minister as a clown. >> when one talks about things concerning another friendly, allied country, and about the result of a free election, one must be well balanced in his choice of words. >> he would not be drawn into the matter. >> i do not wish to comment. some statements are sufficient in themselves. >> he said italy would soon have a new government, insisting the country is not ungovernable. >> the world health organization says certain cancers are more likely to develop in the area worst hit by japan's nuclear disaster two years ago. the who says girls exposed to radiation around the devastated fukushima nuclear plan

. >> they are a critical player at this point, the five-star movement of beppe grillo. could he changes into- establishment position at some point? >> since the election last month, he has insulted bersani practically every day, and he continues to do that today. >> it requires on the road to damascus for him to change his mind. >> where does italy go from here? could we see new elections? >> nobody wants to see new elections. i think what will happen now is president of peloton a will do something similar to what we did in november 2011 when he appointed the current prime minister, mario monti, the former european commissioner. he may try to do something like that. he may look to people like the former premier, the current interior minister, or the former european commissioner to try to take -- put together a short- term government whose major responsibility will be to guard confidence for the international markets and in the meantime, the only item on the agenda will be to change the current electoral legislation. >> thank you so much for that update. the restrictions

. >> they are a critical player at this point, the five-star movement of beppe grillo. could he changes into- establishment position at some point? >> since the election last month, he has insulted bersani practically every day, and he continues to do that today. >> it requires on the road to damascus for him to change his mind. >> where does italy go from here? could we see new elections? >> nobody wants to see new elections. i think what will happen now is president of peloton a will do something similar to what we did in november 2011 when he appointed the current prime minister, mario monti, the former european commissioner. he may try to do something like that. he may look to people like the former premier, the current interior minister, or the former european commissioner to try to take -- put together a short- term government whose major responsibility will be to guard confidence for the international markets and in the meantime, the only item on the agenda will be to change the current electoral legislation. >> thank you so much for that update. the restrictions

pockmark quite substantial so people are saying enough we don't want the euro anymore i mean beppe a grillo part of his. promises were look we're going to revisit our euro participation and what we're going to do with the outstanding bonds never seen the video pentagram low talking to people his economic policies talking about money time i feel better reserved have you seen his videos if you have he does a lot of pontificating on this score many people say this guy knows what he's talking about when it comes to banking you're a banker would you concur well you know i think he's got new refreshing ideas and he's bringing in new ideas where the politicians will just say anything that they need to do to get reelected and they have the same people rotating in different shifts and that's part of the problem you need new ideas you need change drastic times call for drastic measures the credit crisis is far from over he's the only politician known as calling baxter's out and saying we've got to get rid of the criminal banks or before we have any progress i mean is a lot of it is you know it's not

. >>> still to come on the show, italian politician beppe grillo is calling for an online referendum and the latest on attempts to form a government when we come back. [ male announcer ] here's a word you should keep in mind. unbiased. some brokerage firms are. but way too many aren't. why? because selling their funds makes them more money. which makes you wonder -- isn't that a conflict? search "proprietary mutual funds." yikes! then go to e-trade. we've got over 8,000 mutual funds, and not one of them has our name on it. we're in the business of finding the right investments for you. e-trade. less for us. more for you. the fund's prospectus contains its investment objectives, risks, charges, expenses, and other important information and should be read and considered carefully before investing. for a current prospectus, visit etrade.cotualfunds. >>> italy's president has made comments and is largely pushing towards a technocrat government. meanwhile, five-star leading beppe grillo has been quoted in a german publication asking for an online referendum of the euro. he says he is a fa

movement says it is ready to leave a government, but the anti-establishment group headed by comedian beppe grillo has once reiterated it is not willing to accept a coalition with another party unless it's willing to accept the 20-point plan. georgia nepolitano is ready to begin forming a coalition and meets with the party leaders next week. yes, the ides of march. ross westgate caught of with victoro glil grillo and asked him if a government would, in fact, be formed soon. >> i think that elections are an integral part of democracies and we are very well within a decision time of schedule. and i think the market up to now has been a conscious -- and i wouldn't call them benign, but clearly they have been watching and if -- and i am confident that italy will be able to provide solution within a timetable. i think that will be a positive outcome and it will be just the way the market -- >> fitch cut the country's sovereign rating with a minus to bbb plus citing worries about ongoing uncertainty and the recession. ross asked if the investment would hold up the move in the country. >> of course, the

beppe grillo has come out and said he asked for a mandate to form a government.e did get about, what, 20%, 25% of the vote. not sure whether he would find people to sign up and agree to all 20 points of his plan, one of which would include calling for a referendum on membership for italy. now we have a second major european union country that warrants a referendum on staying part of that. i refer to britain, first of all. of course, that's part of the european union, not the eurozone. nevertheless, at a five-star movement, wants a referendum on a membership and is wants to try to form a government. meanwhile, over in spain, we're taking a look at how markets perceive the relative risk of on its sovereign debt. yes spain has another auction in which it's raised about $4.5 billion euros in 2015, 2018 and 2023 debt. now, the bid to cover ratio is pretty healthy. in fact, up from the last auction and it looked like yields are down across the board for the most part. you're seeing the reaction in the ten year, still below 5% on this morning. if you're just joining us

it would rely, then, on him having to partner with the five-star movement led by the comedian beppe grilloe will not negotiate and will only form a government with people who agree to all 20 points of his mandate. now crimi, who also represents the five-star movement, is out suggesting that there is never -- actually, let's take this one -- he's basically ruling out external support for a government, which bill was making the point, by ruling out external support, they're not going to support another technocrat like monte? >> that's the point. i don't know who crimi is, but that's the point of five-star. they are not a political party, they're a movement and they won't support anything unless it gives them a chance at the polls. >> you can see the reaction across the italian curve today. yields are up, although we should say that's also ahead of an election due out in about 15 minutes time. that election just got -- or that auction just got a lot more interesting. >> it certainly did. but where i think the market, you were talking earlier about the way that italian bonds have come up today

the fact that there may be fresh elections called within three or six months time, the fact that beppe grillo is still popular, but he was nobd in terms of leaving and trying to get into his car right now. yet within look athis. despite what that might mean for the troing ka, there's no sign that markets are unnerved by this today. the ftse mib in italy adding 1.75%. if we can flip over to the bond chart, tights same kind of thing happening. we have seen italy yields backing up certainly from their lowest levels. they were down towards 4% a couple of weeks and months ago. now 4.77%. but they were creeping back up towards that 5% level today. we're seeing investors bid that up and we're seeing some relief for spain, as well. it's not far from falling below the 5% level. so the relief that you're seeing to some extent in european markets is bolstering trade as we turn our attention to the trading session in the u.s. there's also, of course, the dollar effect and some people are suggesting that what we're seeing in oerms of fktly the trading range. over here, the euro/dollar is higher. although

compare economies like germany who's a powerhouse of europe to portugal italy and spain i mean beppe a grillo is a perfect example in italy right of what what happens now if they were to hold a vote tomorrow he would get probably forty five percent of the popular vote that's a guess off my cough but quite frankly i think most of the people in europe i know the people. and italy with two point six trillion in debt which makes cyprus is ten billion you know look like a pockmark quite substantial so people are saying enough we don't want the euro anymore i mean pepe grillo part of his. promises were look we're going to revisit our euro participation and what we're going to do with the outstanding bonds never seen the video pentagram low talking to people his economic policies talking about money time i feel better reserved i've seen his videos if you have he does a lot of pontificating on this score many people say this guy knows what he's talking about when it comes to banking you're a banker would you concur well you know i think he's got new refreshing ideas and he's bringing in new ideas whe

>>> italy's new political star beppe grillo left a hotel and at least one journalist was injured.extraordinary pictures as grillo's party ruled out a coalition with berlusconi or bersani. look at the gridlock he's got trying to get into his car. yes got treatment from a "new york times" profile. you can see there why italy watchers are concerned that if they call the next election within three, six months time before the end of the year that he might do even better. >> and what does that mean for the other party? >> and meanwhile, i hear clowns are upset with steinbrueck in germany. >> just a couple of days ago and brought to our attention this morning, german clowns are insulted to be compared to berlusconi. >> no one is happy. >>> great prime minister antoinis samaras put a frail discussion on hold yesterday as he shook hands and pledged to double trade coming up in the innocence three years. samaras said recent disputes between the neighboring countries have included a battle over hydro carbons last month. >>> now, the u.s. and china have reportedly reached a tentative agreemen

the five-star movement led by beppe grillo may have a stronger turnout in terms of support in a couple months' time, so investors are jittery about the outlook in italy. and any second now, we're expected to get the results from italy's latest bond auction. take a look at the wall behind me to look at where the ten-year, the curb is before those results. we have backed up by about 10, almost 15 basis points. 4.73%. and in fact, the spanish ten-year, if we want to look at that, is above 5% this morning. so, we are seeing some risk showing up. cds are a little wider, too. spain 5.04%. so, you're seeing capital leaving the periphery and to the safe haven trades, gilts and bunds, below 1.3% for the ten-year german bund. speaking of headlines, the euro/dollar, it did fall below $1.28. here it is $1.2794, down 0.5%. the point this time around being not necessarily that we're seeing the last round of systemic flight out of the eurozone, more that we're just seeing weak economic growth going forward that there's no reason for investors to bid up the euro relative to the u.s. dollar. so, i gues

grillo. that's why we're in a stalemate. beppeand to be honest, some of the italian political building needed to go down. political parties asked for it. the question is, will we be able to build up something to replace what we pull down? >> roger, your point about europe, as i understand it, is particular countries like italy. it doesn't matter what they say and how much they protest, they're going to have to put in place some of the austerity measures that have been demanded because it's the market that's demanding this, right? >> of course, there have been austerity measures already begun in so many countries, look at ireland for instance. but, yes, i find some aspects about the debate austerity is good, austerity is bad to be a little misguided because at least initially, looking back a year ago at the worst of the eurozone crisis, it's the global of capital markets that demanded changes in the financial conditions or fiscal paths, debt paths of some of the peripheral paths. there was no choice when a borrower loses market acc