the csu needs to make sure they don't return >> it's about protecting the right flank of the csu and keeping the liberals out the afd is calling around 12, 14%. the days of the absolute majority are over. >> it's also about say hover appearing tough. >> yes, precisely. none of these two parties can do without the other, that's the reality of it. at the end of the day they're in a somewhat weak position because out of munich, he's in a hard position it might as well be a position at the end of the year where he's the big loser. >> when you look at the numbers in berlin, you have four numbers the number of cd u-verses csu members of parliament. >> it's true the cdu is the much larger in this at the same time in relative terms, conservative center right support in bavaria is a real strong hold. that's a story we'll see playing out all the way up to bavarian elections. >> how strong is merkel's support? >> there are many in the cdu who are quietly and secretly very sympathetic to the what the csu is doing i think you have 200 cdu employees who will be bossed around by 40 csu guys. the cd

there is an important election coming up in the csu party.t will occur in october and they are very eager to look tough on immigration in order to ward off gains by the far right immigration afd party. this is all about tactics. sarah: i head of that, let's gauge the mood of the country because there has been a poll conducted before this crisis and shows the majority of germans want change with regard to refugee policy. i would like to drill down into the details. the poll was conducted by -- they asked what people thought about differing migration proposals. they said the proposal with the greatest agreement was the one that called for deportation of asylum-seekers whose application has been turned down. 86% of those who responded agree that premise -- with that premise and only 10% disagreed. to build on that, we will have a look at the level of popularity enjoyed by angela merkel's coalition itself. these findings date from before the political turmoil. people were asked how satisfied are you with the german government's performance? a cle

the interior minister of the bavarian csu wants the power to turn some migrants away at the border. merkel has rejected the idea, saying it would undermine european solidarity, but the minister is said to be ready to define her. it was a day of doubts and disruption at the german parliament as angela merkel was threatened with open rebellion. an unprecedented scenes, the bundestag held meetings on the same issue. the csu says it can wait no longer to see a change in merkel's migration policy. >> once again, we've made it clear what needs to be done urgently to restore order at our borders. we should take the step of turning refugees away from our borders who are already registered in another european country. >> csu leaders and chancellor merkel battled over the issue late into the night but no compromise was reached. a european response to migration is needed. merkel is still hoping for a deal with other states. >> to me, the question of how to tackle this migration issue is a litmus test to the future and cohesion of europe. it therefore needs to take every country's needs into co

csu is the interior ministerand he head of the csu is the interior minister and he was talking about is dangerous. that is a real dangerous approach to angela merkel. she is vulnerable, but he seems to have backed off. the times, going back to health. insecure millennials. already insecure millennials are set foran already insecure millennials are set for an unhealthy middle—aged. already insecure millennials are set for an unhealthy middle-aged. poor old millennials, they probably thought that they had got the bad news already. baby boomers have taken all the decent pensions and the free education and the rising house prices and millennials are faced with the prospect of almost certainly never owning a property and a life in the big economy and insecure employment. is about to get worse. according to the health foundation, it is that very lifestyle that means that millennials are set for an unhealthy middle—aged. apparently that security in employment leads to such psychological stress, they are on social media, living in poor rented it accommodation, high pollution, crime rates and

if that were the case it is a real threat to the coalition between the csu and the cdu.ly better than because he thinks it is not good idea to bring angela merkel dan at this stage. the truth is that widening the issue to migration and the eu in general is actually very huge problem for the european union. italy, spain when you name big problem, notjust in germany. this has been backed up by what we have seen with the aquarius. they were saying, it is notjust italy. they did point out that earlier in the week angela merkel was facing similar problems in germany as well. in the case of the aquarius can spain has stepped him by helping out that ship. i am pleased to see the story on the front of the daily telegraph. we cover european politics differently, don't we? it is good to see them giving it such prominence. the main subjects will be the migration crisis and not brexit. she may have been thrown a lifeline to light by her interior minister but what a job to try to find a solution that europe can agree on in a few weeks when they have had to agree all these years. it l

reporter: the csu chairman has struck a conciliatory tone, but that does not mean he has necessarilyhanged his position. brent: let's try to make some sense out of this. let's bring in our correspondent simon young, he is also here in berlin this evening. what are we to make of this between the chancellor and interior minister? are they friends again? simon: well, for today at least. today was not a day for hostility. everyone knows horst seehofer's position. he has his tanks parked on angela merkel's lawn. he has given her a two-week deadline, or 10 days now, to get some real progress on this migration issue, otherwise he's going to take tough measures unilaterally. but this was a commemorative event commemorating second world war refugees and also marking world refugee day. and so, that explains the conciliatory tone. and of course horst seehofer needs to watch out. he could look like the european donald trump if he is not careful. angela merkel has always stressed the humanitarian aspect of this migration question. horst seehofer needs to respect that as well, of course. brent: th

i really struggle to see how the csu would get past that. a very good point because if the cdu decides to run in bavaria, it csu'sprevent the loss of absolute majority but they are the fact by the afd, they may even come in second in the elections in october over the spd is disconcerting for so many people and i think this has the csu in a tizzy and they don't know how to deal with it what thehinking about patriarch said about not allowing a party to the right of the cdu come into existence. and theynow happened, are perhaps willing to play political suicide. guy: thank you very much. sudha david-wilp, deputy director of the marshall funds. have just seen the chinese markets, the shanghai, enter a bear market. trade probably one of the factors behind that yesterday, a massive selloff around the world as the trade story got the market's attention. lord mendelson, the president of the international think tank european commissioner for trade now joins us on set. good morning. are in a real tizzy, should they be? should be.y we are faced with th

the csu has put an ultimatum on the table saying within two weeks or need to be a solution.l will talk to italy, to austria, to greece and try to find a solution. i think there are bilateral ways sayiscuss possibilities to if someone is already registered in a certain country, that is a way to check that the board already, or very quickly when a person is in germany and sending that person back as the eu rules require. technical.ng of a i think the bigger battle is really a symbolic and political battle in the background that the bavarian csu is taking regional elections in october and they are very afraid of this far right party in germany. they simply want to mark their territory as a law and order party. i think this is what they have done this weekend. anna: thank you very much for your time. ik, advisor to the german government with us live. we will be live in sintr all throughout the daya. we will continue the conversation around the ecb. belgium central bank governor joins us for an exquisite interview at noon u.k. time. plenty more conversation around the ucb -- ecb

along with that, the budget calls for one-time increases is -- in funding for both csu and the university of california. that comes to hundreds of millions of dollars. california has a $9 billion budget surplus and while republicans say the money should go back to taxpayers, the governor says the state needs to put some of that money away to prepare for bad times. the state legislature decided to set aside $2 billion as uncommitted reserves. >>> now to the fifa world cup. six companies, including spain. host country russia winning the first match, 5-0 against saudi arabia. security is exceptionally tight. officials expecting 1 million people to visit the country. we have two of the matches here on the ktvu. first , it's morocco against iran. fox coverage begins at 7 this morning. >>> four news and weather and traffic, you can join us on ktvu plus. we are also streaming all of our shows on ktvu.com. >> all right. >>> 4:10. it will not be off-limits anymore. i'm talking about the popular tourist attraction at yosemite national park that due to reopen to the public today. >>> new body camera

number two is csu would not want this off the table for long.t migrants arriving. the problem could potentially get worse. carsten: with italy, it is a little bit different because the language sounds very much like they are on the same page. at the same time, it is an interesting situation. if germany started closing exporters, the loser might be italy. somebody pointed out to me the other day that the line that joined slovenia is not the common approach to migration, but they're anticipating it for angela merkel. is that a correct way of looking at it? carsten: it is there on populist approach to a certain degree in politics. think that is a fair assessment. i'm when we get to october, on the risk of a europe without merkel and how i price that and think about the timeline around all of that. we get to october and merkel is still there. how much longer does she last beyond that? carsten: i think the best case ts until thelast is end of her mandate. let's say she gets reelected party leader for a final two years. the focus will already start to

the csu has given mrs merkel until the end of the month to find an alternative solution or they'll goopean principles. here she is... translation: the cdu supports the initiative of the federal interior minister, horst seehofer, to present a further master plan of migration and in everything we do. we, the cdu, are convinced that we must represent german and european interests at the same time and that is why we will not act unilaterally, unapproved and not at the expense of third parties. so chancellor merkel doesn't want to act "unilaterally" as she says, but instead find an eu—wide solution to the problem. she has a meeting with the eu next week where she wants to renegotiate the bloc‘s migration policy. the policy has come in for intense criticism, in particularfrom italy. let me remind you of last week's events... italy refused to let this charity boat full of migrants dock at its port in sicily. it says it's unfairly taking the brunt of the illegal migration to europe, as boats from libya and tunisia land on its shores. currently, the eu has a policy that migrants must register

both uc and csu systems get a one-time boost of $344 million. public schools will get more money to help fight homelessness. $14 billion going into a rainy day fund. lawmakers have until today to pass a plan or lose salary under a 2010 law. >>> repair crews trying to reach a milestone. department of water resources youtube page gives us an aerial review. repairs are expected to be completed by november 1st. work on the emergency spillway will continue through the rest of the year. >>> get ready to kick up your heels at the alameda county fair. it begins with the cow drive through downtown pleasanton. the fair opens at 11:00 a.m. and runs through july 8th. >> just a dollar today and a dollar for the rides. >> that's right. i didn't realize this, they have fast passes for carnival rides. it's a $10 up charge. >> don't you wish you had that when you were a little kid. didn't have to wait in line. >> line for the ferris wheel was always so long. >> here is a look at the forecast for today in pleasanton, or tomorrow i should say. open under comfortab

does not know what exactly she can achieve in the big question its will of the enough to satisfy the csu. the signals we are getting is whatever she delivers not be enough. at the same time, we heard that emmanuel macron said the european project to fail because of eururozone that is too weak t also this very issue of aggression. michael would not put it in drastic words but she is concerned at the best. a start we'll be made and there will be a show of force from her supporters within the european union because her advisers are busy phoning those capitals. none of the eastern states are completely out of migration will appear around the table. there won't be any kind of concrete outcome in the terms that will be written down on paper. that is something that is important to italy. it will be a pre-discussion round for the eu summit that is less than a week later. that leads us straight back to this crisis in germany. will it be enough? there will be a lot of discussion amongst her own political allies and foes within the political camp. >> in lebanon, she was asked about the disembark as

california is trying to figure out if the travel ban flies to uc and csu athletic teams. >>> process is silicon valley they call them angels. the non-profit that helps the homeless learns they have angels too. abc 7 news reporter david louie explains. >> reporter: it was a major blow to serving the homeless we the fire destroyed this van in february. it made rounds weekly to ten sites to treat more than 2,700 people. replacing an and outfit agnew one had a price tag of a $250,000. but insurance only covered $100,000. members of the silicon valley leadership group stepped in to fill the gap. over a dozen companies donated $150,000 in ten days. among them western digital, net gear within and kla 10 corps we are setting in the backup you know but the new one is under construction in southern california and hitting the streets which late fall. the loss fts van meant the non-profit had to cut back mobile visits. weekly stops at sen tights will resume when the new unit arrives. with examination tables and chairs, instruments for blood pressure and temperature and a dispensary. >> they can

with this standoff, there's a risk that the csu could break away, or at least trigger a confidence vote richardson is a correspondent for the german broadcaster deutsche welle and she joins me now from washington. good to see you. this is being described as the worst crisis she has faced for some years, actually. give us your take on this issue and this stand—off she has with those in her coalition. can you hear us? wanting to talk to you about this issue of migration and germany. wondering if you can hear us in washington there. 0bviously wondering if you can hear us in washington there. obviously not. she cannot hear us right now. when we cannot hear us right now. when we can re—establish that line with claire, we should hopefully have that conversation a bit later. also discussing it in the news briefing. all over the press. the challenges facing angela merkel. stay with us on the briefing. also on the programme: we find out why addiction to electronic games has now been recognised as a medical disorder. there was a bomb in the city centre. a code word known to be one used by the ira

deal to prevent new arrivals because her interior minister, who is from her coalition partner, the csuis weekend or he said he would again turning away migrants from the border in his home state. chancellor merkel said it is a good signal that the eu leaders have agreed on a good text for migration. we hope to hearfrom them live shortly. we don't have that yet, we will take you to it only get it. -- yet, we will take you to it only get it. —— when we get it. an oil tanker truck has caught fire in nigeria's commercial capital, lagos. emergency officials say nine people are confirmed to have died, but that number is expected to rise. an official has blamed a brake failure on the tanker. a rescue operation is ongoing. lebo diseko has the story, and just a warning — you may find some of the pictures upsetting. this should have been a normal rush—hour on one of the main highways in lagos. instead, it was a scene of death, grief and fear, after a fuel tanker crashed and caught fire. the flames spread from car to car, engulfing more than 50 in total. rescue teams have been working desperately

the leader of her coalition partner, the csu, says migrants should be turned away at the german bordery. mrs merkel has been battling to contain disagreement on how to handle migration among eu states. when was the last time you paid for something with cash? according to one industry body, more than three million of us have now all but abandoned notes and coins, preferring to pay by card. in fact, the number of payments made by debit cards overtook those made in cash for the first time last year. the change is being driven by the rising popularity of contactless payments, as rob young reports. cash, cheque, card, mobile phone. there are so many different ways to pay these days. there's been a big change in the way we buy goods and services. it's not the tills that are ringing, but the card machines. cash is no longer king for the first time. often, i find myself with no cash at all. so yeah, i really do use cards a lot more now, especially with the apps as well. i use cash payments more so i can draw out what i'm getting for the week and then monitor it that way. about 85% of the busin

no, what's happened, and it was alluded to there — alexander dobrindt, the leader of the csu, the sisterhis austrian—italian line, and that is right now today undermining merkel's authority. no, angela merkel undermined her authority when she basically invited a million people, undocumented, unproven, didn't know who they were, into the country. let's agree on that — she cancelled dublin 3 unilaterally, dumped the problem onto eastern europe and greece, they didn't want it, and that is a simmering problem for europe. right. how dangerous is it, katya, listening to that, if we look at the german situation particularly, and whether she, angela merkel, and austria and italy are going to somehow work this out amongst themselves? is this a moment of danger for the eu? i like to turn things on their head, really. you say it's dangerous, i'd say it's an opportunity for the eu, because with all those member states, the eu really never takes dramatic action unless proverbial backs are really well and truly up against the wall. arguably, we're at that situation at the moment with linchpin germany

no, what has happened, and it was alluded to, alexander vernon, the leader of the csu, this is the partynd that is right now today under mining angela merkel‘s authority. angela merkel undermined her authority when she basically invited a million people, on document, unproven, didn't know who they were, into the country. she cancelled the w3 unilaterally, dumped the problem onto eastern europe and greece, they didn't want it, and that is a simmering problem for europe. how dangerous is it, listening to that, if we look at the german situation particularly, and whether she, angela merkel, and austria and italy are going to somehow work this out amongst themselves? is it a moment of danger for the eu? i like to turn things on their head, really. you state is dangerous, i would say it is an opportunity for the eu. with all those member states, the eu never really ta kes those member states, the eu never really takes dramatic action on this proverbial axe are well and truly against the wall. arguably we are at the situation at the moment, with linchpin germany in such trouble over migration

still unclear, but it does seem to strengthen her hand going into conversations with the head of the csu, she can go back to berlin saying she achieved something from the summit. what that is is slightly unclear. here was her response this morning after the conversation ended. >> overall i believe it sends a good message that we came to a joint decision after intensive discussions on a thing that's probably the most challenging for the european union i'm optimistic after today we will continue to work, even though we have a lot to do in bridging the different points of view >> just to give you some details. they'll strengthen the libyan coast guard. spend a half billion euros in african countries trying to strengthen their economies, education, healthcare systems. the eu/turkey deal has been held up for a long time as officials that could be a model. brussels perhaps paying ankara to hold on to migrants they will insist on halting that migration flow and asking the turkish authorities to stop further routes whether by land or sea from opening up we've seen increasing my fwraigt flowing f

the budget also includes one- time increases in funding for both csu and the university of california amounting to hundreds of millions of dollars. california has a $9 billion surplus. the governor says it needs to l reserves. >> what's interesting is the governor always talks about that but within his budget framework there's a huge amount of ongoing spending. he has been trying to, um, restrain us from having impact on those particular items. obviously we disagree. we want to be able to talk about all different facets of the budget. >> republicans argued that some of the surplus should be returned to taxpayers. the budget did not include an expansion of healthcare or a controversial provision to offer tax breaks to people who are in california illegally. >>> san francisco's next mayor outlined her priorities today before a crowd of supporters. london breed said she plans to hit ground running and tackle some of the city's biggest challenges including the overlapping issues of affordable housing and homelessness. christien kafton has this report. >> reporter: london breed walked into

she is meeting with her sister party, the csu, this weekend with an announcement on sunday and the interiore the borders to secondary migration. there is some worrying that will satisfy the chancellor, she said that she has secured a bilateral deal to return migrants to spain and to greece. is that enough? we will find out on sunday... we will talk more about migration after 5:30pm. the main story... nearly thirty years after britain's worst sporting disaster at hillsborough football stadium, a judge has ruled that the police commander in charge on the day can face trial. former chief superintendent of south yorkshire police, david duckenfield, will face charges of manslaughter by gross negligence in relation to the deaths of 95 liverpool football fans. an order preventing mr duckenfield being tried had been imposed 18 years ago. four other men will also face trial in connection with the disaster and its aftermath. our correspondent, judith moritz, has been following the case. david duckenfield will appear in the dock of a criminal court. the first time anyone has been charged with the deat

k-12, community colleges, csu and uc campuses as well as specialized schools. >> when it was put on theas to provide a way to provide a supplement of funding for education. >> reporter: the lottery money was intended to be spent the way the schools chose. when ticket sales plummeted during the recession, the legislature and governor put more money towards bigger jackpots and promotions to pump up sales. to do that, the share to the schools was cut from 34 cents a dollar to the current 23 cents. 11 cents a -- ticket less ticket less. the lottery has contributed $32.5 billion for schools. >> that's a lot of money, yeah. i'd say that's a good amount every year for schools. >> above the lottery's contribution it cost california taxpayers another $2.6 trillion to fund those schools. does that sound quite as large now? >> no. not nearly. no. >> we have to understand what's happening with our school system now. so i mean, like, look at it and then the lotto, how much are they doing for? >> reporter: so rich or poor school, all schools have to rely on fundraisers and foundation grants and addit

alliesmerkel an her csu failed to resolve the dispute over migration.t their long-standing alliance, threatening the coalition government in the head of europe's largest economy. is looking to meet european union leaders in brussels securityto help her on and help at the borders. we were talking before about immigration and how angela merkel deals with it. ,f angela merkel were to go this would have huge consequences for the european monetary union, huge consequences over what the ecb should do. >> i am not so sure. i do not expect her to go. morerday there were some conciliatory- tones. if that is the case, there is better than a 60% chance the coalition will stay together. if that view is wrong an get , weelections in germany have to have the same debate after the election when it took so long to form a grand coalition. my view is it is unfortunate we take a momentum out of a potential german-french initiative to reform europe, but the german government, whoever runs it, will ultimately be pro-european, pretty much in the center of the political spect

>> reporter: well, clearly she's facing a lot of domestic political pressure ahead of the csu in bavaria he himself is essentially posturing over the course of the summer ahead of local elections in october trying to shore up support ahead of the elections trying to make sure that his policies are seen as hard line when it comes to migration when it comes to the ifd, part of the hard line stance is that germany will close its borders to migrants who already have been registered for asylum in other european countries that's what's put him at odds at chancellor merkel. she's welcoming 3 million people in the last three years. she is putting a veneer of respectability over any potential effort to bring around some kind of common agreement around european states she's accepted all 28 member states will not be able to come up with major changes to the common asylum application process that they already have in place, the dublin rules for 25 years here in europe, but hopefully she's hoping that there will be agreements either bilateral or trilateral with other european countries that will ease

the csu continues to fall in the polls. sd does not have nearly enough to rule.ifficult prices and scenarios to forecast. oil, a lot to volatility this week. what do you expect to happen at this meeting? is oil cartel agreement still an important documents. >> the market is probably pricing in an increase in oil production, probably between half a million and one million barrels per day. like aet something million and a half barrels a day, oil could fall further than it is now. it depends on what kind of number comes out of the meeting that leads to the increase. saudi and russia are the ones who make these decisions. there is some talk venezuela and iran are going to protest, but they are small guys in comparison. if russia in saudi made up their guy: when you think about this i can't record who wrote this piece a couple of weeks ago, they talked about this because, thecal most important one we have seen in ages for global markets. there is so much happening. european political tensions, the trade story is going to be massive, we are already seeing market reacti

her sister party, the csu, which forms part of the coalition in germany, says europe must take some toughto talk eu reform. but migration is the insurmountable problem. countries like italy and greece say they can no longer bear the brunt of arrivals from across the mediterranean. the quota system to share out the burden, agreed two years ago, has been rejected by a number of eastern european countries. so what next? we spoke tojenny hill a little earlier. one of the most obvious things today is that we had president macron and angela merkel simply repeat some of the things they have said in the past, so, yes, they want solidarity among the eu. well, good luck with that. we knowjust how divided europe is over the issue of migration. we did hear a little bit about maybe strengthening frontex, putting more officers on the external border of the eu and one particularly interesting subject, first mooted in fact by the danish prime minister a few weeks ago, the idea of detention centres outside the eu border but on the european mainland where migrants could be effectively held and processed. n

angela merkel faces a challenge from her sister party, the csu, which comes from five area.r minister came to vienna to form what they call the access, along with italy, and they say they will take things into their own hands if eu solutions don't work out. but angela merkel is a great survivor. she is weakened, and the migration crisis is what weakened her. germany has taken in1.4 million is what weakened her. germany has taken in 1.4 million asylum seekers over the last four years, and public opinion has been turning against that. there are security concerns. people are worried. this has weakened her politically. but i don't think she is finished. she's going to the summit to find common eu solutions and to help bolster her back home. i think she'll find that tough. katya adler, thank you. a british plumberfrom north london who was also an al-qaeda bomb—maker has been convicted of planning a terror attack in westminster and making explosive devices in afghanistan. 28—year—old khalid ali was arrested in april last year after his mother called the police saying she had found

the budget calls for increased funding for you see and csu systems.of dollars into the state's reserves. it calls for $500 million in emergency aid to local governments and nonprofit organizations to address homelessness. critics say the budget proposal would raise spending by 9%. inflation in the state is round 3%. critics also want more funding to expand medi-cal. >>> windy conditions led to a challenging firefight in lafayette this morning. >> it happened at a home in the hills on the west side of 680. ktvu's allie rasmus has an update him what happened. >> the fire is out at his home in lafayette. the couple who lived here did get out safely. so did their pets and all firefighters were injured. but the home is heavily damaged by smoke and water. the contra costa county fire marshal says the fire started in an, electrical panels. it was burning mostly in the attic. the smoke alarms didn't go off right away. i spoke to one of the homeowners who says he and his wife heard a loud boom and that is fortunately what woke them up. they went to the garage

the leader of her coalition partner, the csu, says migrants should be turned away at the german bordercounty council had alerted them to his claim that he‘d been "trained to kill" by so—called islamic state, they would never have taken him in. ron and pennyjones also said that two weeks after his bomb partially exploded on a tube train, surrey asked them to be trained on the government‘s anti—radicalisation programme. today, details have emerged of a series of failings in the government‘s prevent programme in hassan‘s case. our legal affairs correspondent clive coleman reports. there‘s the card he sent me for my birthday. ron and pennyjones with the birthday card sent to them by ahmed hassan, the young man they fostered and who made a bomb on their kitchen table designed to kill and maim innocent commuters. not only would it have taken these out, it would have damaged the houses opposite, and you can see i‘ve got houses behind me, it would have damaged those as well. over 40 years the couple fostered 269 children and received an mbe for their work. but what were they told by surrey cou

a two-week deadline over tougher immigration policies set by her interior ,inister who heads up the csuservative coalition government. there were questions this weekend over whether or not angela merkel can sustain her leadership. here in the u.s., flat. 35 basis point is how we print. little pickup and volatility. brent up 1%. the vix is only at 13 and selling vol is the trick for you make money. -- is the onlyan place where you can make money. >> it is very confusing. the euro-dollar bumping around, confuse. >> you like the confuse dollar. --confuse dollar per confused dollar. >> angela merkel is trying to diffuse a crisis of immigration policy that threatens her government. she has agreed to a deadline set by one of the parts of her coalition. the german interior minister once to strike a europewide agreement over refugees. if there is no deal he will reject certain refugees a german borders. in the u.s., democrats have ramped up their attacks on president trump's policy separating immigrant children from parents who cross the mexican border illegally. several lawmakers travel to tex

what was done to help angela merkel when she goes back to germany, because she has a problem with the csube enough to shore up her leadership? maria: that was a big question. angela merkel came in to the summit under so much pressure. we will have to wait until sunday when she meets with her more conservative side of the coalition. wethe one hand, she can say have more control over who is coming over to southern european states. the secondary movement in germany will fall the fact. she has met with other nations like spain and greece to come up with a bilateral deal. it looks like she will get something specific to germany and that could prop her up going into sunday. david: that is maria tadeo. most the e.u. was the upgraded economy heading into 2018, and by european stocks was a common trade. that trade has had a rough two months. the s&p is the white line, european stocks of the blue line. you can see the diversions and underperformance of european stocks. still joining us are bill snead and alicia levine. to like european stocks? alicia: i am cautious still but i think it is time to p

she has promised her csu allies that she would forge bilateral agreements with european governments.y from that after yesterday's meeting in brussels. ared: give me a sense -- those people against people moving into germany, are they aligned with the league in italy are they saying find to take them in italy, just do not send them to us? patrick: the politics get complex when you're talking about european migration. the bavarians want to send certain refugees back, not all of them, only refugees already registered in another eu country. that would mean a bilateral agreement with italy and giving the new situation with the italian government, the league as the interior minister, he has already said it is not going to happen. here in berlin, people are wondering how this is going to work out. will there be a compromise between angela merkel and her bavarian allies by the end of the month? if not, it could spell trouble for her. david: it sounds like a lot of work needs to be done. that is bloomberg's patrick donahue reporting from berlin. alix: the dax taking a hit. two and three day.

people don't want this and they are telling the csu, the bavarian party, don't do it because they'veis a crisis that doesn't exist because very few people arouse those bavarian borders. 44,000 this year compared to 2.5 million in 2015. it is a crisis driven by italy. in their words, this is a watershed moment, they don't want to be the migrant campfor they don't want to be the migrant camp for europe. they have to figure out a solution because italy, the right to complain, they have been left alone for so many years and summit at the summit the italian prime minister was here in this building saying, please, help us, we need to solve this. nobody moved. everybody thought he is going to go home and carry on. this is crunch time. they have to do something. some sort of redistribution, better border protection to keep people away particularly france italy and the mediterranean country, will have to be found. an important week for theresa may. she goes from here to her cabinet meeting on friday it is supposed to be thrashing out a white paper which will spell out the future relationship

about also concerned developments there in terms of the strain between the cdu and the csu. immigration. if that worsens and you see the breakout, it's going to be negative for european assets. thank you very much indeed. always a pleasure to see you. we are getting the yuan fix and have a look at what's going on right now. there he go. -- there we go. 6.48 93, slightly weaker than what we had on friday. just to say also that on that that 6.50 handle. is 6.489. let's have a look at what is going on in the major event in europe, as well. the turkish election. it does look like the incumbent has won the presidency again. >> we are seeing a reaction with his double victory in the poetry and the -- parliamentary. the has helped boost turkish lira after it tumbled to a low at the end of may. it has given some of its event back but it could be set for a fourth day of gains. lira wentr -- and the up. trading at the strongest level in a week with attention on that governments policy choices. rishaad: thank you so much for that area -- for that. president erdogan has claimed a new ma

is this deal enough to satisfy that bavarian party, the csu?ething that that party itself will decide over the weekend. they set a meeting for sunday which will probably go for quite a while because they ultimately have to hash out is this enough, or do we want to push this further and put merkel's government at risk. tom: in your decades of experience, the key dynamic here is the flow in europe. what is the presumed flow of migrants and refugees into europe in the coming few years? tony: this is something that is on everybody's mind. i think that is fair to say, perspective,lin's angela merkel. is hugefact that there migration pressure from africa. this is the way that it is seen by, it is fair to say, all european union governments. it is just a fact they have to deal with, and that is what makes this so in tract of best so -- so intractable. it is a balance between laws,tarianism, asylum and your voters who you also have to keep in mind in a big way. francine: thank you so much, our reporters on the ground. joining us now is jordan and the f

two senior csu officials have been quoted in interviews.don't want to push this thing to the max. matt: they want to back up a little bit. tony, thank you so much. great to get your reporting on this. tony is a government editor with a ton of experience covering these issues. let's keep the conversation on europe and bring another voice into the conversation. joining us from brussels is maria demertzis, deputy director at bruegel. valentin marinov is still with us as well. let me start with you, maria. let me ask you what you think about the possibility of an eu solution here? can i go to michael actually make that kind of -- can angela merkel make the kind of magical deal? sorry.i'm matt: i'm sorry. maria, i don't know if you can hear me. i am wondering if you think angela merkel could make some point of -- kind of magical eu wide deal? is this too difficult to tackle -- tackle on an eu level? maria: it is a very difficult issue to handle, but i am sure we will get a solution to that. we will find a solution at the 11th hour. i think the g

it is a calamity europe, and i think you're going to see the cdu and the csu fissure in germany, newy bad for us, stuart. stuart: and what are we going to do in america if there's a similar mass migration, an army of people marches on the border from the south? what are we going to do? >> well, so far that hasn't happened, but that's why ink we need strict border enforcement policies and why i think the daca to wall compromise is really the only practical solution are. stuart: and yeah not -- and we're not going to get there. >> sadly, maybe after the election. stuart: doug, thank you very much for joining us. >> appreciate it. stuart: glad you make the occasional trip back to high-tax new york. we don't expect to see much of you in the future. >> i think you'll see me under 180 days. that of laugh. stuart: doug schoen, thank you, sir. there will be more "varney" after this. ♪ whoooo. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now i

merkel blocked the proposal last week, setting off a fierce public spat with the interior minister and csuman. their disagreement has split germany's conservative bloc dummy metal and raised questions over the future of merkel's coalition. caller: good morning. i am a little bit nervous. host: take your time, tony. used to work with a lot of hispanic people. i went to school for quite a while to be a chef. there's a lot of hispanic people that work in the kitchen, for mexico and places like that, so i got to know them quite a bit. you get to understand them. they want toit is come here to work, and they want to pay them cheap wages. if you ever watch that movie "selma" with martin luther king, i think he said it the best. rich people want to divide us. is bythey divide us hiring illegals. when they hire illegals. , they pay them cheaper wages when they pay them cheaper wages , hispanic people take the wages because they are used to cheaper wages. they take the jobs. that is what we are working against as whites and blacks minimum and -- black men and women. hispanics take the jobs. and ric