francois hollande has gone to his socialist party h.q. who thank workers who helped him gain victory, but also start work on picking the people who will make up his new government. while at the palace, nicolas sarkozy is probably starting to say his farewells and getting the packing boxes ready as he starts a new life, stripped of power am let's have a quick look at how the newspapers here in france are reporting it this morning. it doesn't need many words, it's got lots of pictures. the victory of francois hollande, says "the prirsian," showing him in his home police base. the other paper, who was strongly in support of mr. sarkozy, has an editorial talking about the change that is coming to france. this paper, which had supported francois hollande, talking about normal, this was the victory of mr. normal, a counterpart they think to the bling of president sarkozy. well, it was an extraordinary night in paris as people celebrated late into the night. let's get this report from our paris correspondent, christian fraser. >> they jumped, th

he just conceded to socialist francois hollande. matthew chance is in athens at the center of an election that also took place today, greek voters deciding whether they are willing to accept tough cuts to deal with the country's enormous debt. a greek default could crush america's own slow recovery. al goodman is in madrid, a country closely watching these election results with all of you. the unemployment situation is tough here in the u.s., in spain it's much worse. youth unemployment now above 50%. diana magnay is in berlin, up until now, germany has been the backbone of europe's economy and the main architect of austerity. is it going to be the next one to fall into recession? with me in new york, breaking down what europe's crisis means for the united states, christine romans, host of "your bottom line" and christie freeland, editor for thomsons reuters digital. today they fired french president nicolas sarkozy. he will be replaced by socialist francois hollande. sarkozy becomes the highest profile european leader ousted during

francois hollande has made clear that he plans to push the germans.ut we're hearing german leaders saying today they're not going to be ready to pay for a fresh stimulus program, so there will be some pushing back. but in the end, expect to see pragmatism prevailed. france and germany have to work together. they are the tandem the polls the rest of europe, particularly given the instability in greece. they will be looking for ways to cooperate. and i think both leaders clearly know that they are going to have to come up with some kind of compromise, the fiscal pact not likely to be renegotiated. perhaps what we will see is some symbolic growth pact in addition with measures that perhaps, in the end, are very much a symbolic given the very limited freedom to maneuver here. >> as ever, to is a very much. >> and of course, investors were watching closely as all the election results came in. after opening sharply lower at the start of monday's trading, most european markets recovered over the course of the day and managed to finish with gains. the initial

within minutes, and a simple ceremony, francois hollande was sworn in. in his inaugural speech, he promised a dignified presidency and wasted no time in sending a signal to berlin about his agenda. >> i will propose a pact that will tide the necessary deductions to be indispensable stimulation of our economy. >> later, francois hollande drove in an open top car. he had already set out his -- he headed for berlin for a crucial meeting with angela merkel. but his plane was hit by lightning in he was forced to return to paris. much later than planned, the new french president arrived at the german chancellery. the welcome was cordial, but a little tense. the chancellor had backed president sarkozy in the election. he was greeted with military honors. as the two leaders negotiated the red carpet, they appeared rather nervous with each other. before beginning discussions on what the french president means over making growth his priority. at a joint press conference, the chancellor warmly welcomed the new french leader and even joked about the lightning strike

francois hollande went straight to work. off to berlin for his first official investigation -- engagement. talks with chancellor angela merkel. >> and he has also appointed his prime minister. not long after being sworn in, he appointed the longtime leader of the socialist party and the mayor of a city. he also speaks fluent german. meanwhile, at eu finance ministers have agreed to tougher capital requirements for region thanks. -- banks. >> the move is aimed at shoring up the financial sector of the debt crisis were to escalate. there has been increasing concern about the health of spanish and italian banks. just yesterday, moody's downgraded six italian banks. >> the banking association of italy called moody's downgrade an attack on the nation. italy faces a renewed recession. analysts say the move is going to hurt. >> it does not mean they are less inclined and less able to make loans to firms. so you have more recession, more bad loans, plus, more downgrades, because these banks were in the negative as well. >> in newark

francois hollande has stayed calm under pressure. both sides of be watching weather this face-to-face encounter has changed minds. it is president sarkozy needs to come out of this with momentum for his campaign. >> newt gingrich will not be the next president of the united states. >> he has officially pulled out of the republican race for the white house. he did not immediately endorse mitt romney. even though he describes -- described in maastricht as certain to become the republican nominee. >> today, i and suspending the campaign. but it does not mean suspending citizenship. >> he only managed to win to state contest during the primary season. it is reported his campaign is more than $4 million in debt. our correspondent explains his support for rival mitt romney. >> i think it would be fair to say that it was almost a non- endorsement. court and almost endorsement. he was basically saying, he may not be a conservative, but he is better than the alternative. he described president obama as the most radical leftist president in u.

i, when i think of francois hold ande i think of two models perhaps, one is francois mitterrand, you remember that in '81, francois mitterrand who had communist ministers in his cabinet to the great furror of washington who sent george h.w. bush and the vice president to make sure that things will continue, he basically affirmed the continuity of french foreign policy and that's when the phrase, the mitterrand de gaulle consensus was forged. that is to say the idea of a very strong continuity in french foreign policy and indeed, i think, that's exactly the kind of continuity that hollande has pledged. to mitterrand is one important figure model. the other one, i think, is jack daleure and that brings us back to the question of the euro crisis. he was a minister for mitterrand in the '80s. and he was the one advocating staying, sticking with the european monitor system in '83 when mitterrand did a sort of u-turn in his policies, in his economic policies which were not working. and in order to stick with germany and stick with the european community at the time, he advocated austerity

francois hollande is now the new president. he's a socialist. it's the first time in about a generation that this country has had a socialist president. men maerns are not familiar with francois hollande. he's never head a very high position. he's been an elected official from a small region in france. although he's been in politics his entire life as a member, and a leader of the socialist party. so how will things change? the big issue for france is how it will strike a deal with germany to solve this debt crisis in this region. so far, france and germany had agreed to cut spending. and countries such as greece or portugal or spain where the debt crisis was a really big and important issue. francois hollande says, look, not so fast. my approach is a little bit different. yes, i agree we need spending cuts, but i also believe there should be a growth plan included in any agreement with germany in the eurozone. why does that matter to americans? that's because every time there are real fears that there might be a collapse from one of the governm

number two, why americans should care about francois hollande. this is a french president who promised to withdraw french soldiers from afghanistan by the end of this year. nicolas sarkozy, the incumbent, was promising to withdraw them by the end of next year. so this will have an impact on operations in afghanistan as well. so on both those fronts, francois hollande is basically marking a change with the past, but also potentially there will be a very different relationship between him and president obama, as well as angela merkel of germany. all that being said, these countries are all allies, and agreements may end up being made at some point. it will be interesting to watch how that all develops. >> thanks so much, joining us from paris there. appreciate that. >>> the u.s. markets, how this vote in france impact the u.s. the let's check in right now with david from cnn contributor and former speechwriter for george w. bush. we're talking six months out right now before u.s. elections. and this would take place involving a great ally of the wh

choice, francois hollande is the president of france. he must be respected. >> we'll tell you how the french election will impact the u.s. economy in a live report from paris just minutes away now. >>> just hours after the run of the roses at the kentucky derby, louisville police are investigating a murder at churchill downs. a body was discovered before dawn near the barns. earlier i spoke with sergeant roger biven with the police department about the investigation. >> at this point we still have been unable to identify the individual. we do believe he's a hispanic male, probably in his 30s or 40s. and that is all the information we have on his identity. we do have a few leads coming in. and we'll certainly be following up on that. after an autopsy is conducted in the morning, we'll have a better indication of cause of death. it was located by the workers in the barn area this morning. track security called the police to the scene. >> police say around 400 people were near the crime scene last night, and they're trying to talk to as man

francois hollande went on the attack. you have read the french economy, your not in the best place to relaunch it. whatever happens, you're always happy. the french people are less happy. president sarkozy came back, that is a shameless expression. francois hollande, i have not said anything that justifies that expression. mr. sarkozy, it is a lie, it is a lie, it is a lie. when you say i am always happy about france, when you said i do not live up to my responsibilities, it is a lie. it is easy to form the impression they did not like each other as they traded accusations. that is the difference between you and me. i protect the children of the republic. you protect the privileged. >> you want to make deeper poor. i want to make people richer. so far he has not been able to land a killer blow and mr. hollande @ rehm,. it is president sarkozy who needs to come out of this wealtwith momentum for his camp. >> the u.s. security council has threatened sedan and south sudan -- sudan and south sudan. they want to renew talks. a

>> francois hollande is mr. normal. he got electriced president of france because he promised to be a normal candidate and a normal president. when i was traveling with him in 2007 he was so normal that not -- neither the conductor, nor anyone on the train even recognized him. he is disciplined. he ran the socialist party for over a decade, and he did not make enemies. he is likely to be much more consillatory and moderate than we might expect from a socialist. >> peter mannedelson, you were the architect -- one of the architects of the new labor movement. you helped get tony blair elected, and the effort was by blair and clinton to move the left somewhat to the center and make it more pro-market, pro-trade. do you look at the election of francois hollande in france and the kind of rhetoric surrounding him and many of his proposals as some kind of a swing to the left? >> yes, i think it is. to just put it in simple terms. i'm not sure that francois hollande was over on the clinton-blair bandwagon, but he is certainly no

he hit -- francois hollande is a cautious man. he is not a revolutionary. the french people are as pragmatic and cautious as he is. are the people who voted for him pragmatists? i am not sure. france is a country that has many difficulties dealing with the real world, if we can say that. austerity is not a word that is accepted, really. in a way, the election of hollande was caked with reform, which sarkozy tried to push through for five years. of course, he did not push so hard because of the crisis. but still, this was the name. i think the rejection of sarkozy is not only a personal rejection of his personality, which is clear, but is also the sort of fear of change that we have in this country. >> darren, the economic consequences for this country and for europe. >> if europe gets worse, it is not good. >> the economy declines. >> uncertainty is a buzzword. people use it. i think a better word is fear. there is fear that people do not know what is going to happen. the greeks are struggling to form a government. i think he really hit it on the head. is e

the headlines this hour, francois hollande is sworn in as president of france. the first socialist in the post in 17 years. news international's former chief executive rebekah brooks is charged with perverting the course of justice in connection with the u.k. phone-hacking scandal. >> coming up in sports today with me, katherine downs in half an hour. the blue half of manchester comes out forced to cheer on their heroes. the english premiere league after 44 years of winning the top title. in real madrid, after breaking goal and points records. and then off to the controversial blue then back to the red stuff. monfils is the winner in day one in rome. >> more on our lead story. going back to the elysee palace. doesn't look so huge from there. but with me is from the university of college london near london, obviously, but we're just having a look at these pictures. it is a pretty cavernous room, isn't it? >> yes. contains the several hundred on hand. >> plenty of glad handing to be done by the president here. just what you made of the inaugural speech. >> of cour

francois hollande makes his debut, at a showdown with germany could be on the cards. >> and a historic day as egyptians go to the polls to elect a president. >> talks in baghdad on iran's nuclear program. can they end the standoff. well, it is being called the summit for growth, and it could turn into a showdown between france and germany with france's new president, francois hollande pushing for a shift from austerity to growth as the way out of the crisis. >> that it's against angela merkel, who has been the strongest supporter of austerity. them at the idea is to pool debt between all the eurozone's member states. it is a proposal that has come up many times over the past couple of years. >> francois hollande says it is time to get eurobonds' back on the table. >> this is the first eu summit for france's newly elected president, francois hollande. since his win on a campaign, focus has shifted to restoring growth in europe. hollande says eurobonds are one way to prevent further recession. >> the question is -- what are the best instruments and means to promote growth? eurobonds are

francois hollande tapped into that. he presented himself as mr. normal, a man you could feel safe with. in the end, he came out ahead by offering that. >> looking forward, how much can he really changed france's economic and fiscal policies given that he has to try to work with the germans and within european restrictions? >> i think are huge difficulties for him. he has wanted to balance the budget within five years. at the same time, he says he will boost certain amounts of spending. how precisely will he do that? he says he wants to renegotiate the pact to enforce greater discipline needed budgetary discipline. angela merkel made it quite clear there would be no renegotiations. he wants to set himself up as a leader of a new europe, being opposed to austerity but being in favor of growth. precisely how can he do that when so many countries still have large debt? eight out of 17 countries that use the eurozone are in recession. francois hollande has a message a lot of people find compelling when he says the current policy of cutting deficits, fo

after winning the sunday vote, the socialist franÇois hollande has enjoyed his first full day as thepresident-elect. having promised more growth and less spending cuts, he now has to deliver. we have this report. >> the president elect, and arriving at socialist headquarters this morning to begin the transition to power. the work has begun it for a new government, and time is short. >> i have to prepare. i told you we were ready. now, i have to prove it. >> it is a new style of leadership, more accessible, but suddenly, mr. hollande is a torchbearer for a new europe. it makes the financial markets nervous. in paris, broadly speaking, there is a renewed sense of optimism. >> i think he raises a lot of hope, yes. >> together for so long. and we think it should be all right. >> maybe go to london and leave france, because this program is not really what i expect for france. >> franÇois hollande put young, french people at the heart of his campaign. they have rejected austerity. a challenge to the german leadership of europe. >> it is a result that gives hope to other people, he said, th

or will it be the challenger, the socialist francois hollande?now have always given in the last several months francois hollande ahead of nicolas sarkozy in the second round. now, people here in france go out usually with their families to vote on sunday. i was talking about this outdoor market and we're here because it gives us a sense of sort of the mood of what people are saying. you know there's a high turnout in france, randy. about 80% of registered voters cast ballots in the first round, which as far as western democracies are concerned, is actually quite high. the big issue for everyone, and you mentioned it, that's unemployment. we're at 10% unemployment in this country. the other big issue is the euro zone debt crisis. it has a huge impact on americans as well. whenever there are concerns about greece or portugal or italy, not able to sort of pay back their debt, it has an impact on the dow jones right there in new york, so this will be the big issue for whoever is elected president today in france. how will they manage this euro zone d

will it be nicolas sarkozy or socialist candidate francois hollande? german doctors call to the ukraine to examine yulia tymoshenko have said that she can remain for treatment. she claims to have been beaten while in prison and is currently in hundred strike at the protest of her conviction. a french court has sentenced a nuclear physicist for his role in plotting terrorism with al qaeda's north african wing. the trial convicted him of criminal association with a view to plotted terrorist attacks. 100 pelicans have been removed from the northern coast of peru. of around 1200 pelicans and 900 dolphins are reported to have died along the coast line. an investigation will be carried out by their oceanographic agency. these are the headlines, by a narrow margin, london has reelected boris johnson as mayor. egyptian security forces have dispersed thousands of protesters after a day of clashes near the ministry in cairo in which one soldier was killed and hundreds of people injured. more on the london mayoral election now in which the conservative forced joh

within minutes, in a simple ceremony, francois hollande was sworn in. in his inaugural speech, he promised a dignified presidency and wasted no time sending signals to berlin about his agenda for growth. >> i will propose to our partners the necessary reduction of public debt and the growth of our economy. >> he had already set out his store -- growth, stimulating your's economy. he headed for berlin with -- for berlin for a crucial meeting with chancellor angela merkel. but his plane was hit by lightning, and social -- and so he had to change aircraft. much later than planned, he arrived at the german chancellery. the welcome was cordial, but intense. after all, angela merkel had backed president sarkozy in the election. he was greeted with military honors. as the two leaders negotiated the red carpet, they appeared nervous with each other before beginning discussions on what french president means on making growth his brewery. as a joint press conference, chancellor merkel and george to about the -- even joked about the lightning strike. >> even thoug

whether to back president sarkozy or the socialist candidate, francois hollande. president sarkozy will need many of these votes from the far right if he is to make it into the palace for a second term. in recent days, he has been seen sang several things normally associated with the far right. despite his frequent attacks on immigration, these voters aren't convinced. >> he has the same attitude had five years ago. he is saying whatever marine le pen is saying to have our votes. >> this woman had voted for president sarkozy in the past but said he had failed to live up to his promise. in the event, marine le pen refused to endorse either candidate, a setback for president sarkozy. >> i do not trust either of the candidates. one wants the right to win. the other the left. but they have both contributed toward france's failure of the years. sunday, i will cast a blank the. >> across the city, a huge crowd turned out for president sarkozy. he turned his fire on the unions and the left, saying they stood in the way of change. >> look at what is going on in countries

francois hollande is the new president of france, only the second socialist president-elected here in more than 50 years. he had campaigned on a platform of reversing the cost-cutting austerity measures that france and the rest of europe have adopted. and tonight he said he would keep his promises. the outgoing president nicolas sarkozy was gracious in defeat telling his supporters to respect the people's choice. they took some convincing. hollande's margin was smaller than the polls indicated. in the end based on exit polls it was only in the 3 to 4% range. hollande profited from frustration with france's stagnant economy and from the fact the french electorate had tired of a president that never fully embraced. sarkozy was criticized for his high-living lifestyle and his glamourous wife carla bruni. >> five years of sarkozy is enough. >> reporter: hollande, though, has made his own tabloid headlines. his current partner is french journalist valerie trierweiler who he met when she interviewed him. his previous partner for 30 years was the socialist candidate in the last election here

christian, francois hollande, the new guy on the block already making his presence felt at this summit isn't he? >> he is, but he's made what would be considered here in france a popular decision, george. 80% according to a recent poll in favor of a withdrawal before the end of 2012. so he really is living up to a commitment that he made during the election campaign. although, he has tempered it some what, probably for technical as well as diplomatic reasons. he's talking about a force being left in afghanistan to protect french equipment, and also a unit to train police and army officers. nonetheless it is being painted by the u.m.p. party, the party of the ex president as a betrayal of the coalition. we came together, we should leave together was the statement from former defense minister today. so it will antagonize some within the coalition. you heard the british defensemen talking about the disappointment but the role will change. i'm not sure it's all together different from what sarkozy was promising either because he was talking about a withdrawal in 2013 as well. >> but from f

opinion polls show that nicolas sarkozy and francois hollande as close as they've ever been. now i've been joined in the studio by rachel, bringing us the business news. one of the top stories you're looking at, rachel, is facebook and that initial public offering, i.p.o., what he wants the latest thinking on that? >> so this book is 8 years old, 900 million users worldwide, and thee decided now is the time to float on the markets. everybody's talking about t. the big question is will people want to invest in it? one of the things is the founder, mark zuckerberg. he's almost 60% control of boasting rights. as recently as last month, he agreed to buy the photo sharing site for a pillion dollars, and told the board about it afterwards. so earlier, i spoke to stewart mills and asked how he thinks mr. zuckerberg will answer to shareholders. >> when the board and shareholders start coming in and saying, look, we own this company as well, how that dynamic changes, how he can cope with the ability of having to answer to a lot more people than just himself is going to be the really i

in france, francois hollande defeated french president nicholas car soezy in a runoff sunday. a string of politicians to fall. mr. hollande's victory for the socialist movement signals a shift to the left as france deals with its struggling economy. it marks a clear rejection of president sarkozy's attempts to control the debt crisis through aus terty measures. mr. hollande insists there are other ways to trigger economic growth. the president-elect's plan promises more government spending and more government jobs. he also had plans to increase taxes on wealthy individuals and on corporations with the individual top rate going, if he has his way, to 75%. mr. sarkozy, meanwhile, thanked his supporters on sunday, saying he tried his best to win reelection despite widespread anger at his handling of the economy. he took full responsibility for his defeat. the french president lost a second term by 4% of the vote. >>> turning now to greece where voters are also fed up with auss tearty measures taking it out on their politicians in yesterday's parliamentary elections, a majority of

not many people got -- at least not many francois hollande e supporters got much sleep. tens of thousands of them really partied all night long at the bastil bastille. a symbol of freedom, also a shrine to leftist politics. now hollande who beat nicolas sarkozy, by the way, with a very small margin, 1% or 2%. he will become naug rift and become the first socialist president almost 25 years ago. so it's a huge victory for the left in this country. the left is feeling that victory in a visceral way. it's a victory that wasn't just a protest vote against sarkozy's often-talked-about brash style, his hobnobbing with the rich and naims, b famous but also a protest against his basic inability to deal with the debt crisis in this country. >> as you said, he was in the wrong place at the wrong time historically speaking. jim asade da, we appreciate your reporting. >>> we turn to politics here at home. mitt romney heading to cleveland, ohio, this afternoon just days after president obama launched his reelection bid in that state. the president's saturday rally part of an official