dimaio and mhis counterpart decide in the next few hours. they are talking before who will be probably the next prime minister and i don't know who will be the next prime minister, but i am sure it will be somebody who will have a clear perspective, somebody who will keep in a clear way the traditional italian position considering historic and alliances -- i mean, the perspective of italy will be kept and i think also the new prime minister will be somebody having an institutionalist experience maybe. and also a political understanding because these will be a political government. not a government made by the technical class. i think the two leaders would very much like to have a concrete approach, vis-a-vis concrete problems for the italian population, and for the italian future no doubt under the very tentative active of monitoring institutional and constitutional prerogative of the president, very soon we'll have a new government that will be in line with the historical position of my country in the european and euro-atlantic framework. >

neither of the party leaders vini and luigi dimaio want to allow the alpha to become prime minister. this week could bring about a stock change in italy's and europe's political climate. formula one now at the spanish grand prix mercedez made clear there the team to beat this season in previous races ferrari and sebastian fatso had made their mark with a clever pit strategy but in barcelona on sunday defending champion lewis hamilton turned the tables on them. the world champion flexing his muscles lewis hamilton started from pole and left the competition in his tracks even during the caution period following this crash by roman grose the briton kept his cool. first suggestion fettered on the other hand it just wasn't his day his ferrari team's choice of tires didn't work out and the german had to be satisfied with fourth place. hamilton crossed the finish line unchallenged for the sixty fourth grown prieto of his career. these guys have done an amazing job and is really proud of everyone and today the car and myself the city today which i had been feeling for the whole year so it's

i did -- luigi dimaio also commented last night to answer some critics, here what i did mayo said >> there will be a political government it will be a government that puts at the center political questions. maybe i want to say also on an international level, let us get to work first and then criticize us you have every right to do so but let us start first >> the challenge for any prime ministerial candidate here is marshaling these different political forces and trying to enact any kind of real agenda. >> yes when you look at the market reaction there are concerns among investors about that as well >> we are joined by valentin marinof from credit agricole great to see you >> great to see you again. >> a lot of concerns around italy. on the equity side we see a bit of a rebound, but looking at the yield environment, you're looking at the euro what are you watching in terms of the next steps of the coalition talks >> it's about the fiscal -- first of all, the ability of the populist parties to form a government you mentioned the uncertainty hanging over the president's choice he may w

in him that even though the the two leaders of the parties involved in the coalition salvini and dimaio had taking out this clause out of the coalition contract much a rather the president believed that italy was on a disastrous course he said in a tweet i needed to save italy he had to save italy and this man savant as you mentioned deeply opposed to the european union and the euro did brussels play any kind of role in getting his nomination overturned. of course not officially however we known for days that there were warnings and when several know was nominated we've heard the french finance ministers we heard several high officials in brussels sort of with warnings and saying don't do that you have to stick to the rules and sort of stay within the framework of the european contracts and don't do anything rash because everybody knows italy is one of the most indebted countries in the world hundred thirty billion euros public debt and that is such a huge mountain of money that everybody knows that if he would really go rogue it could bring down the whole european union and could bring

neither of the party does vini and luigi dimaio want to allow the alpha to become prime minister. this week could bring about a stock change in its lease and europe's political climate. to sports now and for it to not just hold off our champions of the bundesliga second division after a three two win over nuremberg they snap up that title on the last day of the season both teams are a lot at sixty points in the standings heading into the match and they knew that victory would deliver the championship and it was disallowed or few held their nerve nuremberg won't be too disappointed though they'll have a chance for revenge next season when the two teams play in the bundesliga first division. and saturday's action hamburg were relegated from the bundesliga after a record fifty five years in germany's top flight and fifty seven thousand spectators watched the final game of the season in the hosts took the lead early through an early penalty who was hold the sport hamburg second to finish off a two one victory over much of that result elsewhere in the league meant that their fate was s

dimaio thank you very much. if you have views on this, please feel free to get in touch on twitte twittertwitter, @streetsignscnb. >>> coming up, tariffs are not the answer we hear from the secretary-general of the oecb first on cnbc as u.s. and european trade officials prepare to meet in paris happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone. the first survivor of ais out there.sease and the alzheimer's association is going to make it happen. but we won't get there without you. visit alz.org to join the fight. >>> welcome back to "street signs. it's not a pretty picture across europe looking at the stoxx 600, it's down a sea of red for the majority of those stocks looking at individual indices, all four in the red. the ftse 100 down almost 1%. the xetra dax down 1.5%. the cac 40 down 1.63%. the ftse mib is down nearly 3% at this stage. that has

very reasonable on trying to have a balanced and reliable government and also mr dimaio. was very good there with the greedy corporate it in a right way and now what we see is the undeclared the power because what sylvia said is that there are some. mysterious. powers behind the scenes that are are taking over and rooms and the day he didn't see but whatever with think is there like a little or somehow obliged to stop the government and this is something to that it's really really unusual for the you know the mokka see and and. people who don't will not accept a very easy what happens next we're likely to have parliamentary elections. well now we just knew a few minutes ago that. doesn't matter well i give them mandated to me so quarterly who is of the commission a very well known in the. world and he will try to make what hughes called the government of the president but the chance that he can find a majority in the parliament so far not existence because both more movement and the league will not accept to support a new government because they will lose all the credibil

star movement that's kind of the left wing movement grillo used to be the head of it now it's luigi dimaio and then the northern league which is the far right with me very anti immigrant and very far right northern league they're trying to form a coalition government but one of the things on the on the table is actually a parallel currency for italy and the thing that's remarkable about this is that there's actually a lot of print media about this leading up to the election so from the last year like all the major parties of italy bar one which is the five star movement wanted an alternative currency parallel currency to the euro an order to bring liquid.

next cabinet but now we've just heard in the last hour or so from the head of the five star movement dimaio that he's willing to to consider an alternative economy minister although he wants. his appointee in the mix but he could compromise basically then we heard from the leader of lagos matteo salvini who didn't react directly to that but stuck to his guns saying and old all day long he's been saying that the only government invisible is the one that they nominated he's also struck back at reaction abroad saying that it's really cannot longer continue to be the country that says yes to europe there was market uncertainty of course following sunday's events which the president said was was trying to calm the international financial markets. things have got a bit calmer in the last twenty four hours but the leader of the five star movement acknowledged there was a lot of worry. on the markets but he says it's not just because we're so-called populists it's because of the time scale of the uncertainty and things need to go things need to start proceeding in a smooth manner the head of the le

movement that's kind of the left wing movement grillo used to be the head of it now it's luigi de dimaio and then the northern league which is the far right with very anti immigrants and very far right northern league they're trying to form a coalition government but one of the things on the on the table is actually a parallel currency for italy and the thing that's remarkable about this is that there's actually a lot of print media about this leading up to the election so from the last year like all the major parties of italy bar one which is the five star movement wanted an alternative currency parallel currency to the euro an order to bring liquidity and credit into the italian market because nobody wants to lend to them we've seen this movie before it's called greece yes they went through the exact same thing for the exact same reason that they had an inflationary boost once the euro was introduced and then they got the trouble because they were borrowing money at the same rates as germany and they in debt of themselves into crisis and now that's moved over to italy now of course ita

usually after winning elections political leaders want to become the prime minister why don't luigi dimaio and mattel salvini from the two respect of a populist parties want that job. but in this case you have two alpha males who had to find a compromise in order to form a coalition and a government luigi but he was having a bose said in the complainant after the election they want to be prime minister but they couldn't because the other one said no i don't want this guy so they had to find a compromise and but they also say it's not about persons it's not it's not about the coalition treaty and david push through with that agenda regard his who is leading the country and they're now italy's finances is well known that they're in complete shambles some of the highest debt ratings in europe politicians in france and germany are very worried that this new government will be ripping up italy's commitments to europe on debt is that what's going to happen. well the public is promised italy first they don't care about the europeans and they they don't care about even the markets the spread is go

movement that's kind of the left wing movement grillo used to be the head of it now it's luigi de dimaio and then the northern league which is the far right with very anti immigrant and very far right northern league they're trying to form a coalition government but one of the things on the on the table is actually a parallel currency for italy and the thing that's remarkable about this is that there's actually a lot of print media about this leading up to the election so from the last year like all the major parties of italy bar one which is the five star movement wanted an alternative currency parallel currency to the euro an order to bring liquidity and credit into the italian market because nobody wants to lend to them we've seen this movie before called greece yes they went through the exact same thing for the exact same reason that they had an inflationary boost once the euro was introduced and then they got the trouble because they were borrowing money at the same rates as germany and they in debt of themselves into crisis and now that's moved over to italy now of course italy wan

yes because the party leaders themselves, luigi dimaio from five star and matteo salvini from the leaguend often you find italian politicians simply recycle themselves through several administrations, under several parties and know you have to have some give—and—take. the populists say their mandate is different and they want to do things differently but essentially, the president might have set up their entire election campaign if early elections are to be held because they will now be able to go to the people and say, "look, we were right, we warned there was an italian and eu establishment trying to stop us from taking power and stop the will of the people and now we see that the president vetoed our government". by accident, possibly, italy's president has handled them an election campaign. do you think that is where we are headed now, more elections? it looks like it. what is the alternative? the stopgap prime minister appointed by the president may not get approved by the populists. most newspapers said this morning we will have do have early elections. bear in mind, italy does not

is an indication that a compromise between mat really and the two parties may be reached and louis dimaio had ridge naturally vetoed sivona's role on sunday night, but now says he may have a cabinet role. >> we have a cabinet lined up. we have a candidate for prime minister in goo siuseppe conte. i'm making this proposal publicly because citizens have to know first. let's see if we can resolve the situation, but not with someone who is friends with ratings agencies, banks or other countries in a negative way. someone who acts in the interest of other nations >> earlier cnbc spoke to the five star mp and asked if the market reaction delivered a strong message to his party. >> the peak of the crisis was caused by the president not allowing us to form the government i think that really scared markets. i think that lesson has been learned by everyone in italy, that what we need is certainty is absolutely what we need is a government that has the political power and backing of voters to be credible internation internationally. when you look at the details of our political program, there's noth

star movement that's kind of the left wing movement grillo used to be the head of it now is luigi dimaio and then the northern league which is the far right with very anti immigrants and.

five-star movement leader luigi dimaio said he is willing to work to resolve this political crisis >>lator: we still want to go back to the polls as soon as possible we're willing to collaborate, including with the president we want to be coherent but collaborative in order to resolve the current crisis it's certainly not a crisis we caused 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 not being in our plan >> the budget commissioner that apologized after suggesting the reaction of financial markets would show italians how to vote in any future election he issued a statement saying he fully respected the will of voters being left, right or center, and in every country oettinger's comments sparked criticism from mateo salvini who called for the commissioner to resol resolve. >> translator: this mr. oettinger today in strasburg said it will be the markets that will teach the italians to vote better you can see the disrespect for democracy, liberty, free choice, free thought and the free ch

what we've heard from both luigi dimaio calling this a historic moment, also mateo salvini, the head, saying conte would have full autonomy when it comes to making his own decisions, the challenge for this man now is trying to implement these dozens and dozens of different policies, many of them complex and not welcome patible trying to make them into legislation that will pass through parliament and be put into place by his own government. there will be a massive challenge for giuseppe conte and all of this while he faces criticism in brussels talking about this huge debt pile that italy faces, 132% as of 2017 they need to get that down significantly. given the plans they have to slash taxes a two tier flat tax, given the plans they have to provide universal basic income, this this will become challenging for them to do that given that challenge borrowing from creditors at a time when the ecb is potentially going to end its era of easy money, sri >> i'll pick up here, willem looking at the italian market moves. there's a degree of relief here. what has changed because initially peop

dimaio saying he would like early elections.hallenge there was getting them done before june 24th, that's the last possible date before the italian congress goes into recess. he is saying he would like a new government in place at that point to pass that 2019 budget whether he will get a deal seemingly looking distance at the moment remains to be seen. >>> and paddy power shares are under pressure after first quarter earnings fell 6% as new betting taxes, levees and start up losses in the u.s. weighed on results. but the company is more optimistic on the full-year and has forecasted something between a slight decline and a 5% increase the bookmaker announced it would start share buybacks and return 500 million pounds to shareholders within the next 18 months >> you love a good share buyback. >>> vivendi will decide on the future of its universal music group in a board meeting the idea of listing the unit separately has previously been floated. vivendi covers artists like the beatles, taylor swift and rihanna. >>> ocado shares ar

out not to be the case last night after the meetings with sergio mattarella, we heard from luigi dimaio that they needed a few more days to hash out an agreement. >> translator: we are satisfied with the atmosphere of these talks. mostly for the points we're agreeing upon. the unemployment earning, pension reforms, cuts on public misspending, these are issues of great importance as well as public goods like water management, fight against corruption and imprisonment for those who dodge taxes. >> his counterpart, the leader of lega, mateo salvini he said things less optimistic about talks. he specifically wanted to stress the differences between the two sides. >> on migration, the position of the league and the five star movement are different, both respecting human rights and international treaties i say this as a father, i will not allow a new summer and autumn arrival of migrants and the illegal migration. if a new government is formed, the league will have to have a free hand of protecting italian citizens the law on weapons and self-defense another delicate issue, we have to find an

this is italy's dimaio, and the starter meeting on that government plan. 2.1% -- if i could show you it shows you the key levels we need to get up to. for the month, it starts freaking out. we are not there yet. throughighs in 2015, 2017, we are not there yet, but moving in accelerated fashion. andext, the stock movers, betting machines. this is bloomberg. ♪ guy: welcome back. you are watching the european market open. 47 minutes into the trade. growthpany says it's projection for the medium term was at the top end of the forecast and on line with estimates. midterm growth will be at least 27%. joining us now is the national grid ceo, john pettigrew. that growth number you are much of that, how going forward will be generated out of gas, and out of electricity? john: we are announcing our results for the year. strong operations and financial performance, up 6%. it has been underwritten by very about $4.3stments, billion. that is a mix of strong growth in the united states and the united kingdom, particularly the united states, with a growth of 7%. we are seeing strong growth on the d

they said dimaio maybe back in the running. -- may be back in the running.evin joins us from rome. was proposed as the new prime minister, that there were doubts about his candidacy. what is wrong with him? probably inflicting his academic credentials. s resume is super long and a lot of points are being questions. a lawa political novice, professor with no experience in italian politics or running a government administration. what do we expect to be done, appoint him as prime minister with contingencies? does the president have the power to do that? kevin: the headlines in all the papers today are conte and his resume. we can assume the president will take the time to make sure he makes the right decision. there have been expectations of an announcement today. powers inrly strong this area and will not just let anyone go through. in, thank you, with the daily update on italian politics. simon, our chief currency strategist at bny. let's talk about contagion. to what extent does this remain and italy story? to what extent is this a broader european story? va

this is the idea it's the idea is really to have a balance that governments are basically probably dimaio and salvini will get become deputy prime minister ok and again someone else in the middle between these two parties will kind of lead the government in must be someone coming in from outside the parties the mainstream parties which are all in a position now probably saw. it's difficult to envisage a who is going to be this figure but will be huge really important in my view that the president will make sure that there is someone that has a decent this perience and and has a good relationship with the other european partners and the rest of the world as a sort of spelled out. an introduction they made a lot. pledges during their election and their vote is very much i'm guessing feeling that they voted for those pledges how tricky is that going to be to bring the electricity around as well as to trying to get some severe weather in progress i think it's a would be a stream be challenging because on the one hand they have made all these problem is this which as you mentioned these are go

to see whether that was going to be a run or a new government proposed by those parties now luigi dimaio soon after that on a video live streamed on facebook said he could envisage some sort of compromise perhaps suggesting a different economy minister but the leader of the league matteo salvini while he didn't react directly has been sticking to his guns saying that that must be the government otherwise there should be elections as soon as possible he stands to gain the lead have surged up to around twenty five percent in the latest opinion polls five star steady on around thirty percent so it's possible if there were fresh elections that they could be the biggest two groups but whether they'll be prepared to work together again is not certain right now we don't know if it's really will go back to the polls or who will lead its next government. eisel fighters have attacked the afghan interior ministry headquarters in the capital kabul police say a car bomb was detonated at the entrance and then several attackers managed to get inside the compound is the latest in a series of attacks tie