guy: the european commission vice president speaking to me earlier on from brussels. k were the european stock markets have finished the day. we are through the auction process. not much movement. most of the main markets finishing in positive territory, but only just. down by 100 trying to the miners in the oils -- the ftse 100 dragged down by the miles and the oil stocks. the dax does not look very risk on. if you want to carry on the do so coverage, you can even if you're getting your car. you can find is on dab digital radio. jonathan ferro is on the side of the pond. the conversation will continue at the top of the hour with the cable live on dab and all of your bloomberg devices. ♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on bloomberg markets. let's get back to fed policy is the central bank tries to respond to global trade tensions. michael mckee is at the chicago fed conference and with the former official of the fed board of governors and the new york fed board. looking forward to this interview. mi

leaders will make that 1st step towards finding a new hat for the european commission and it's partly it's about party politics it is about the weight of countries in the european union will be a french president for the european commission will to be a german candidate who makes it into that top job and then finally there's also the personal considerations is that person qualified so all of this coming into play for this powerful job having said powerful yes the european commission is the only institution that can start a legislation broad says so that can make laws in the european union but at the end of the day it is member states and it's the european parliament that always needs to approve such legislation so the member states on the driving seat and that is why they have to work this one out. they're talking to me earlier we have some sports now and as to the women's world cup in england japan progressing to the last 16 the 2 teams played each other and their final match to decide 1st and 2nd place in group d. the goals are all in white made all the difference in a dominant disp

tonight's dinner when your leaders will make that 1st step towards finding a new hat for the european commission its party that's about party politics it is about the weight of countries in the european union will be a french president for the european commission will to be a german candidate who makes it into that top job and then finally there's also the personal considerations is that person qualified so all of this coming into play for this powerful job having said powerful yes the european commission is the only institution that can start a legislative process so that can make laws in the european union but at the end of the day it is member states and it's the european parliament that always needs to approve such legislation so the member states on the driving seat and that is why they have to work this one out ok we're going to talk about some of this in a bit 1st let's take a look at at the candidates who are in the running the top candidates for that job of e.u. commission president. they are lining up for the top jump in brussels and it's anything but child's play who will make the rac

program discord in brussels france and germany have reached a compromise over the coast of the european commission president but there's some stiff resistance coming from the eastern european members. an unprecedented and unexpected handshake as donald trump becomes the 1st sitting u.s. president ever to cross the north korean border but will the historic photo op yield results. nick spicer welcome to the program in sudan at least 7 people are reported dead and almost $200.00 wounded after police clashed with protesters thousands of demonstrators took to the streets across the country to demand the ruling military council hand power over to a civilian government the demonstrations are the largest since security forces violently put down a peaceful protest in the capital khartoum almost a month ago. these demonstrators made their way to khartoum's defense ministry to appeal to military rulers it was one of numerous rallies in cities across sudan protesters were eager to make their voices heard. god punished these oppressors. we want to civilian government a civilian one. and some marches carried ph

institutions top jobs including the european commission president and president of the european council those jobs currently held by john claude younker and donald the moment and they've been heading up talks to try and pick their replacements essentially however those talks have broken down one of the reasons that we're hearing that there's no solution so far wealth comes from leo varadkar the irish prime minister he said that it was easy of picking a pope than using the system that's used in the e.u. to pick a commission president as well as other top institution posts it's called the spits and counted method method or system basically preferred hamlet in germany is what it is it means that if you look at all of the different parliamentary groups in the european parliament whoever gets the most seats well they're just bits and candidates their preferred candidate gets looked at 1st by the e.u. heads of government. if they like that candidate well they put them forward to majority votes for them they put them forward to the european parliament parliament then votes on them and if they

european commission leaders of. the reins of the blocks top positions of the june 30th it's now been announced in another time to break the deadlock the commission president council president and 4 of the top jobs have been chosen by no to all of our expense. well this deadlock in the european union over who will fail a number of the e.u. institutions top jobs including the european commission president and president of the european council those jobs currently held by john claude younker and donald at the moment and they've been heading up talks to try and pick their replacements essentially however those talks have broken down one of the reasons that we're hearing that there's no solution so far wealth comes from leo varadkar the irish prime minister he said that it was easier picking a pope than using the system that's used in the e.u. to pick a commission president as well as other top institution posts it's called the spits and candidate method method or system basically preferred candidate in germany is what i

parliament is important why because he's part of the whole package we're not only talking about the european commission president here tonight but a total of 5 jobs i'm not going to name them all because it might take a little long but the president of the european parliament is one of them and if the parliament elects that president without all of the other posts of that package being in place this will cause a lot of trouble going down the world that's what the leaders want to avoid at all costs they want to have their plan in place before this 1st domino the president of the european parliament falls busy into place and die it's why it's likely that if they don't find a solution tonight there will be another summit and people here are talking about a 1st of july the 1st of july and the german chancellor. coming into the summit here told us how difficult she thought it would be to find a solution already today here in brussels even though it's often the move on a list host and we'll be having an open and extensive discussions on this so it's possible there won't be any result today from my point of v

the social democrats from the netherlands could become the at the top job at the head of the european commission where response rate veba the conservative could become the head of the european parliament and now that idea was met with a lot of critique from the conservatives here in brussels just before the summit started they thought the idea a little bit fishy because they are in the parliament the strongest force and so we're back at square one and leaders are now looking for a solution to that to that problem if you look back you know as you can attest historically over how commission presidents and these top jobs are allocate it's always difficult to agree but do you feel that this time around the divisions in the e.u. are deeper. unusual. hard to say it like you said there's always a bit of horse trading that it that is involved a particular problem this time and you heard today a german chancellor angela merkel in the report just now appointing 2 directly that problem is that the european parliament the parties there do want to see their candidate this so-called lead candidates to win the

you were prime minister of for a few days back then they're about to be disciplined by the european commission over over violating the debt to g.d.p. re. how would boortz help the italian government in being able to finance the economy and maybe escape what many believe is a kind of european union straight jacket it will be no oil the meaning of bought our debt like any other form of debt so issued printing them does not help the stock of debt busy would increase anyway if the issue of the european call me sure would to count them as debt so there's not a way of circumventing the devils do your piano do you think they could spell the end of the euro in italy no i don't think so 1st of all parliament seem to have proved. documents that has no. value in this says that he's no more decision to introduce the me both but it has no immediate effect from eating a point of view that would have to be different doc shows. other actor would have to be taken to him to use these a midi balts you don't think it may be just one of the responses it's allien government policies may or may have to being faced w

france and germany clash over who should become the next president of the european commission and in sports at the women's world cup some acrobatic goal keeping by japan was not enough to tame england will have that's. i'm brian thomas thanks so much for joining us chinese president xi jinping has arrived in north korea for his 1st state visit there talks with host kim jong un are said to center on pyongyang's nuclear weapons program a summit earlier this year between cam and us president dol trump ended without any agreement and china then backed sanctions on the north so ties are strained between the 2 countries it's been less than 6 months since his handshake kim jong un has visited china north korea's closest foreign ally many times over the years. she jinping on the other hand is the 1st chinese leader to travel to pyongyang and well over a decade. we are ready to work with the d.p. r. k. to continue to carry forward the fine tradition of china d p r k friendship and promote the continuous development of exchanges and cooperation between the 2 countries in various fields. relati

welcome back european commission leaders have failed to agree on hold take up the reins of the blocks top posts summit for june 30th has now been announced in another attempt to break the deadlock the commission president council president and 4 other top jobs were meant to have been chosen by now parties peter all over has more. the impasse put very simply by the irish prime minister leo varadkar is the process of electing people is tougher than putting a pulp empower that was according to the irish to shock. top jobs are up for grabs these are serious positions there's a lot of thought has to go into who's going to fill these positions particularly commission president and who will take over from john claudio and also the council president current role the foreign affairs representative position which is currently filled by federico the reason it's taking well so long in order to to try and put up with solutions to filling these places is that the system called spics and can do that in germany german it means basically top down that preferred candidates it goes in these type of stag

business i'm joined on in berlin good to have you with us the european commission is not amused it's taken the 1st step in triggering disciplinary action against italy for its excessive public spending italy could end up paying billions and finds out a time where the country's fragile coalition government is already under pressure to deliver on expensive election promises. the european commission's message is loud and clear it's the end of the line for italy's ballooning public debt. we know it's i suppose for recall would be on growth really doesn't member states go already taken it was a success so this boss told us that he knew that if for a 4th spending more wins additional fiscal space to loose italy's current debt stands at 132 percent of annual g.d.p. in other words the country owes far more than the value of its entire economic output under the rules member states aren't supposed to amass debts that exceed 60 percent of their annual g.d.p. . italy has been ruled by a coalition of the league party and 5 star movement during the election they promise to end government cutbacks

the european commission's message is loud and clear it's the end of the line for italy's ballooning public debt. we know it's i suppose for recovery and growth really doesn't member states go already taken it was a success so this boss told us that he knew would reform if forced spending more wins additional fiscal space to do so italy's current debt stands at 132 percent of annual g.d.p. in other words the country owes far more than the value of its entire economic output under e.u. rules member states aren't supposed to amass debts that exceed 60 percent of their annual g.d.p. . italy has been ruled by a coalition of the likud party and 5 star movement during the election they promised to end government cutbacks and boost social spending while reducing taxes in addition the government hopes to lower italy's retirement age the coalition says the measures will help kick start italy's sputtering economy and cut the country's unemployment particularly i don't even have a job the politicians before were fox us now the ones here what do nothing as well it's getting worse and worse it always se

to be used top job friends in germany flashover to should become the next president of the european commission. plus the women's world cup in france scotland are on their way home after crashing and burning against argentina the scots look to certain to win until their opponents mounted against the roic and a controversial comeback. i'm sorry kelly welcome to the program iran says that it is quote ready for war after shooting down what it claims was a u.s. spy drone to iran says that it's revolutionary guard down to the unmanned aircraft over the province after most. her moves on in southern iran state t.v. showed images of a drone similar to the aircraft that it claims to have shot down the cart's commander says that the u.s. property red line and while iran does not want to go to war with anyone it is ready to officials in washington say that a u.s. drone was shot down but was in international airspace over the strait of hormuz. mari amir's of joins us now an iranian journalist here at g.w. farsi welcome this afternoon tell us you know what are we to make of what we've heard now from iranian

liberals and that means that more heads of state government also have their say here to become european commission president you need a double majority one right here in the european country council among the leaders in the european union and also in the european parliament and so far no candidate has a majority either here. or in the european parliament so what would a or what could a compromise look like max. there are different strategies to find solutions in these cases in these scenarios one scenario that's being discussed here in brussels at the moment is that they don't assign names to the different jobs remember we're not only talking about the commission president there's also president of the e.u. council with this is right here where the member states have their say or also the president of the yours in central bank and there are 2 others as well so maybe they will assign parties to those different posts without talking about names because particularly my call we just saw in that report he's not necessarily as opposed to having somebody from the conservative party being the new e.u. com

like the european commission she's looking to multi-lateralism at a time when the u.s. is pulling back from free trade. the e.u.'s been negotiating the deal with mek resourceful members brazil argentina paraguayan or a guy and the now suspended venezuela for 20 years harsh criticism of the agreement has come from european farmers and environmental activists you have to be protection. in europe so what's the point shipping the same product. this is the 2nd. cows in europe lot of. pharma area. there so you have 51st states and many environmentalists fear that once the trade deal goes through brazilian president joe you're both scenario will make good on his threat of pulling out of the paris climate accord and that even more rain forest could be destroyed to push exports of beef and soybeans. it is one of europe's largest i.p.o.'s this year's folks is selling a stake in its truck division trucks on shares in the company can be bought from today on frankfurt stockholm exchanges johnson says have initially been prized at 27 years apiece and just over 10 percent of the compa

sense of urgency that it takes to make the crucial compromises to fill that top shop in the european commission of course it didn't really help either that the european parliament tried to get more influence on the process to bracingly pre-select a set of leads candidates that then the council i.e. the member states of the european union could pick and choose but look if you listen to angela merkel today at the end of this summit she made once again clear that she did not expect a result today she knew it was going to be a difficult process and also if you listen to john breaux juncker the man who's currently in the position of this top job at the head of the european commission doesn't sound like dramatic news either to him what happened in the past 2 days. building. a new piece i wish we could have agreed on a successor to the president of the european commission to doing some good and i was amused to note that it is very difficult to replace me if you see the model. ok maybe he is in fact irreplaceable the how likely is it that the sun this at the end of the month will produce any results. w

is in favor of a lead candidate system that means only those people qualify for head of the european commission who have run the can paint for the parties in the european parliament now friend french president by car arrived today he said he doesn't like that process at all and he'd like to see as someone else now a potential compromise candidate could of course be michele dunne you the chief rex of negotiator who is a you is a conservative and so someone who politically could work for angela merkel but of course the problem is he's not a lead candidate he hasn't run yes been running a quite campaign behind the scenes but he hasn't officially run for a party in the european parliament so it's really a deadlock we're seeing here between france and germany and what it takes to resolve this is a franco german deal. matzos with a view from brussels thank you eric. the united nations says that a record number of people worldwide have been forcibly displaced this year by war persecution or violence the number of displaced people around the globe now totals 71000000 that's 2000000 more than last year

political leaders slam a warning from brussels eyes ofof roadsdsd mounting debt but in the european commission is threatening legal action as thte national debt which is more than twice the emumu limits. hey maybe we'll have. all the details a business. first royalty presidents and prime ministers have been sitting alongside war veterans on thiss the first day of the d. day commemorations. the french president emmanuel micro attended a ceremony in the french city of khon two on that dozens of french resistance prices. you were executed by the *-*- in [inaudible] nineteen forty four yes. allied forces that were able to use your nights to liberate us from terror any from the grips of the germans. all the same forces that builds the structures in contemporary multilateralismm off to the second world war. the united nations. they avoided repeating the same error is off to the first world war with the humiliation of those who are defeated. they instead build a balanced order nato which allows for the protection of europe. as well as the europeaean union. which was also born out of that conflict. so

it would be very hard to figure out the rest of the package for example president of the european union commission or president of the european central bank just to name some of the few and that's why the leaders that are here today really want to find a solution before that 2nd of july and that's why we're hearing if they can't find a solution tonight which is not impossible but not very likely they might summon a special summit on the 1st of july right here again current then will be continue with you again i'm max entrepreneur thank you so much for your continued coverage. of back to tell you now about some of the other stories making news around the world. hungary and cortez extended the prison sentences of 4 people smugglers convicted last year for the deaths of 71 migrants when the smugglers have now received life sentences in 3 cases without the possibility of parole the migrants suffocated in the back of a refrigerated truck back in 2015. german media are reporting that several of the country's politicians are facing death threats from far right extremists police say this includes colognes

brent: the european commission has taken the first step in triggering disciplinary action against italy for breaking eu fiscal rules. the dispute centers on the country's ballooning debt, currently valued at 130 2% of the country's total economic output, more than double what is allowed by regulations. >> the european commission's message is loud and clear -- it's the end of the line for italy's ballooning public debt. >> this pass for renewed reform effort and not spending more when there is no fiscal space to do so. >> italy's current debt stands at 100 32% of annual gdp. in other words, the country owes far more than the value of its entire economic output. under eu rules, never states are not supposed to a mass debt that exceeds 60% of their annual gdp. italy has been ruled by a coalition. during the election, they promised to end government cutbacks and boost social spending while reducing taxes. in addition, the government hopes to lower italy's retirement age. the coalilition says the measurs will help kickstart italy's sputtering economy and cut unemployment. >> i don't even hav

allocating the use top jobs the main sticking point who should succeed claude as head of the european commission for the next 5 years here are the leading candidates for the top job in brussels presenting themselves before a debate. the people who will decide are you heads of state and it largely boils down to these 2 german chancellor angela merkel and french president emmanuel mccall they've had an intense behind the scenes battle about how to pick the commission president says america long pushed the candidacy of manfred vaibhav the german head of the european peoples party which got the most votes for parliament merkel says that should qualify him for the top post but she recently softened her insistence. that i support finding a solution i'm glad it looks like doing so on the basis of the 2 candidates will be a possibility. and then we'll see what comes out of that. candidates are part of the solution and that is quite important. doesn't. call wants a different system entirely system if this system doesn't work and we decided to start the procedure again with new names to reach an agreement

trading in brussels france and germany clash over who should become the next president of the european commission and that's not the only top job up for grabs. on the iraq it's great to have you along everyone. we begin this broadcast with that dangerous escalation in tension between iran and the u.s. iran has shut down a u.s. spy drone. president trump now says tehran may have quote made a big mistake and told reporters they'll find out if the u.s. plans a response tehran meanwhile claims the u.s. violated its airspace washington maintains the draw was in international airspace and says the attack was unprovoked. the shooting down of the u.s. drone was announced on iranian state television they did not immediately broadcast any pictures of the attack but showed instead a file image of the type of drone they said had been hit an unmanned surveillance act craft he used the gathering imagery of large areas of land you know whether as the commander of iran's elite revolutionary guard said they had destroyed the train because they wanted to send a strong message to the u.s. . i don't know those who d

but at least last time around children joined her at the current head of the european commission had the full support from the european parliament and this time around it is. there is no majority in the european council among leaders and not much already in the european parliament to find someone who should not vacate the europe through difficult waters that lie ahead ok thanks so much for bringing us up to date on those difficult waters in brussels thanks for now. it's to kazakhstan now where a joint russian european team is preparing to launch a mega telescope into outer space it's called a rosita is being hailed as the world's most advanced x. ray telescope easy to can record matter both visible and invisible to the human eye one of its key missions is to measure so-called dark energy a for scientists have yet to observe directly it was either will be data back to earth or 7 years. let's go now to the front tier of space research and bring in dr thomas manik he's the heroes you to project director in baikonur good morning and thanks for joining us dr merrick dark energy invisible

will mean for them on the european level they're of course looking at bragg's that and the new european commission and on a global level they're looking at but multifaceted trade war that is led by washington so they really are operating in an environment of a lot of change political parameters and that's providing are plenty of fodder for a tense atmosphere here yes so in order to get a little bit of certainty amid all the uncertainty of course because we've just seen the stage still being cleaned behind you because obviously we expect big big names political leaders the movers and shakers in the business will tell us a little bit about what's happening today. indeed while all eyes are on malcolm later on she thinks back to to give birth be charged shortly before 10 o'clock german time now nobody of course knows whether this will be her last speech as the german chancellor for the german a day of industry she's expected to provide a message of the stability to the gathered industry leaders here but of course she's not going to be the only one talking we're going to be hearing from of the german m

this is the european commission starts rolling on a deficit procedure against rome. markets aren't taking that very well. it is the banks that are taking the biggest hit. unicredit down by 3.6%. vonnie: sticking with the markets and the impact of mounting global trade tensions, david point by joy. guest: i think this is pretty clearly a reaction to but the failure to -- what the fed chairman said the other day. we will probably get a little bit of a bounce inditex names. they are probable -- bounce in the tech names. they are probably a little oversold. away, and ing way think the rebound we have seen in those shares is maybe reflective of reality. but i think this is basically reaction to the fed saying we will put a little floor under this economy while we wait and see what happens. vonnie: did the fed really say that, though? had the fed saying we are not sure if these tariffs are going to have an impact. we would have to see a lot more to see much more of an economic impact. then you had powell yesterday seemingly cheering the market. it is hard to know what exac

several times has indicated enough is enough and there was a letter from the european commission to italy last week or so warning italy that time was running out. and one of the italian newspapers republika this morning is citing excerpts from what it says is the leaked report from the e.u. suggesting that these sanctions will go ahead unless usually is prepared to introduce some kind of mini budget and pare back around 4000000000 euros of excess spending particular concern about pensions and the introduction of the guaranteed income for the poor which was a whole mark of the 5 star movement that has been introduced by this coalition government which is contributing to a blow out in this budget and continuing spending by the italian government of course we also hear that the coalition government in particular the deputy prime minister. of the far right league north is also keen on reducing debt but would rather see the e.u. to relax fiscal rules how likely is that. well that seems very unlikely because the european union feels very strongly about one rule for all and if they sanctions go

a press conference by the european commission president. and he actually was quite unhappy about the fact that the e.u. is pushed sidelines they're trying quite hard to work for free trade which is this actually is about this whole meeting is about but nobody's really paying attention to them and that's why i think also the fact that they're having trade deals with vietnam as well the e.u. tomorrow all of that is basically to show hey we hear. free trade and we can also play without you america we also have other friends so it's basically a bit of a show of power here as well. a trade deal between the e.u. and south american states off the mark block that's argentina brazil and europe as well as membership been suspended for the moment is nearing completion the e.u. is keen to finalize its mark is a market of roughly equal size to europe south americans eager to send their products to europe to predominantly our culture and. most importantly beef

it is tempting to think once there is a new european commission president and once there isa commission it will equal new opportunities for the brexit deal. but caution there because the european commission serves that member states when it comes to brexit. it is eu leaders who gave them their negotiating mandate and in november our government signed off on the brexit withdrawal agreement. what it means is the only one who has the power now to change that withdrawal agreement or to amend it are the leaders of the eu member states alone. that means all theresa may was advised not to go to berlin or to paris because the commission in brussels was negotiating, the prime minister might well be advised to go to germany, to france, to ireland before he comes here to brussels with his wish list. katya adler, thank you. authorities in sudan say seven people have been killed and 181 injured during demonstrations against the country's military government. police fired tear gas at protesters in the capital, khartoum. it's the first day of mass protests since the security forces killed dozens of de

blocks top jobs france and germany have clashed over who should become the next president of the european commission and germany's chancellor angela merkel this morning base may not reach an agreement at a summit in brussels today also coming up iran says that it is quote ready for war after shooting down what it says was a u.s. spy drone iran says that the u.s. crossed in the red line and raising fears of a military confrontation abducting between tehran and washington today. china's president xi jinping arrives in north korea and is greeted by cheering crowds which ties down strains between the 2 nations she adored korea's kim jong un will take up the stalled talks on the doorstep deeply resent that. add to the woman's world cup in france scotland on their way home after a rash and bird against argentina has got to look certain to win until their opponents mounted a rolex and controversial comeback. i'm sorry kelly welcome to the program we begin in brussels where a huge leaders are meeting at this moment to discuss who should fill the blocks top job that's following last month's european parliame

everybody is on holiday in august, the european commission is changing... on holiday in august, the europeanon holiday in august, the european commission is changing... i think labour will try as soon as presumably boris johnson becomes a minister in late july to go for a no—confidence vote. they are much less likely to succeed them. conservative mps will say, give him the summerand see conservative mps will say, give him the summer and see what his brexit plans really. otherwise there would be an election in the middle of august. it has never happened before. i think tory mps, even the most remain would say let him go to paris and see emmanuel macron and go to germany and talk to angela merkel, talk to the new european council of you in september but it is worth stressing how few sitting days there are left. they come back in september but shortly afterwards, they go for three weeks of party conferences so the opportunities for mps to exercise these levers are pretty minimal and they will have to get it absolutely right otherwise even mps determined to stop a no—deal brexit may not be able