what did merkel and giuseppe conte actually agree going to the summit for friday?t is interesting because angela merkel and giuseppe conte , the italian prime minister, which is the country that would benefit most if we do this recovery fund, agreed this week when european leaders meet in brussels, both said that the $500 billion in grants should not be lowballed, that amount should stay and that is needed to prop up the european economy. when you look at the differences in terms of getting this deal through the finish line, it is not so much the amount or the size of it, it is the governance. if this money is agreed, if this is handed out to countries badly had by the coronavirus by spain or italy, who is going to check that it is being well spent or used in a way that props growth in a sustainable way? that is where we feel at this point the tension is here. amount, but just the governance. who is going to make sure the money is used properly? the frugal four are now playing this very hard bank -- hard. because they want to see a more traditional kind of bailout.

angela merkel and giuseppe conte present a united front ahead of the crucial eu summit. a massive response is needed to counter the fallout from the virus. rough seas. market sentiment takes a hit from a hit from rising coronavirus cases and political tensions. the trump administration rejects beijing's claims in the south china sea, accusing it of bullying. the u.k. is set to ban huawei from its 5g mobile network. the plan would mean british companies need to remove huawei infrastructure by 2027. welcome to the program, everybody. let's check out the futures. lots of moving parts in terms of the market action. lots of geopolitics to talk about as well. we have futures pointing to the downside in europe. we have to play a little bit of catch-up with the united states. let's get to some of the breaking news out of the u.k. that is certainly going to be one of the focuses in our program. the u.k. economy shrank by 19.1% in the three months ending in may. getting a three month figure. main manufacturing production rising by 8.4%. -- somecoming out manufacturing facilities c

angela merkel and giuseppe conte ask european nations to back a recovery fund. this is bloomberg bring ♪ -- this is bloomberg. ♪ >> economics, finance come politics, this is bloomberg. let's get you up to speed with the business flash. >> good morning. china says it will impose sanctions on americans lockheed martin. the move is in response to washington's approval of the possible deal to buy parts to refurbish defense missiles of private company, a foreign called themkesman to cut military ties. huawei. is poised to ban from its networks reversing an earlier go ahead. both companies -- copies not be allowed to add huawei components by the end of the year. all existing equipment will have to be removed by 2027. they're expected to set up plans in parliament later today. is noan union justice doubt and luxembourg are set to release two rulings. first is on the irish back tax bill and in a separate ruling, they will -- on shipping across the atlantic without applying to rules. at your bloomberg business flash. >> thank you very much. let's talk about angela merkel

yesterday, emmanuel macron had a meeting with giuseppe conte, hoping to get a deal by sunday.re are two theories floating around that we could be in for a short summit that ends tomorrow and leaders call a new one by the end of the month, or a summit that stretches into sunday, now with a deal. anna: if there is no agreement then, is there any kind of plan b here? i suppose a meeting later might be necessary. does that constitute plan b? maria: well anna, pretty much. it's just about the timing. when you look at the content, the germans are leading this, they said they don't want to water down the grant component of this recovery fund, so they don't want to see the 500 billion euros that would go to countries like spain or italy be watered down. in terms of content, it's difficult to see what could change to get a deal other than letting time go by, and the uptick of a difficult deal. we know there are two major sticking points, just how big is this recovery fund going to be? format grants versus loan. but also the governors, which is becoming a talking point. who is going to

today, merkel hosted the a giuseppe conte in berlin.they're hoping to build solidarity ahead of a high-stakes summit this weekend in brussels. eu leaders will debate a new budget and a proposed 750 billion-euro recovery fund. reporter: diplomacy in times of corona. while the leaders of germany and italy practiced social distancing, they have moved closer on policy issues. the movement possible by germany's concession for europe to borrow more money to help rebuild after the corona prices. without action, economic forecasts are believed. "that is why we want to head into the talks in brussels in a spirit of great friendship and with great solidarity. we hope the talks will l give us all a chahance to come out of ts big humanitarian disaster and also out of the ensuing economic downturn in the best possible shape." conte has been telling reform plans consisting of f economic transition from green new deal, the dismantling of italy's notorious bureaucracy, an improvement to its justice system. "we need to move fast, react quickly. history

the italian prime minister giuseppe conte, was on hand for the test run of the six plane dollar constructiont the project may be doomed to fail despite today's success. >> out of the water they race like a hidden treasure from the bottom of the ocean. but the 78 mobile barriers are not the treasure but may to protect it, designed to protect the lagoon city of venice from high tides. the project has seen unexpected costs and political corruption and delays. >> we will finish what we have prpromised and the horriblble ss we witneness will be p part of e past. >> disastrous flooding in november it how vulnerable venice is, the floods the worst in 50 years. global warming and rising sea levels and venice is sinking foundations are not likely to improve the situation. a fortress of steel is now supposed to protect the lagoon city. despite the photogenic ceremony today, it is not expected to be fully functional until next year. >> it is a project that was born from many controversies, and designed to protect venice from high water. a concrete objective met an imaginary one, however visionary and m

it was seen as a big for refer the prime minister, giuseppe conte, the e.u.y plan was signed over the weekend and italy would get money. we are getting more detail on how they would spend the money, and they proposed 25 billion euros as they try to rescue an destroyed by the pandemic. tom: i really have got to say, i find the juxtaposition of italy 1% yield to be extraordinary. i have been so looking forward to this conversation. we are not going to's week with moderate -- robert crandall about earnings, revenues, the doom and gloom of the moment. we are going to talk about the great pumpkin, the first 747 i saw i was aas at -- -- saw. and you werere flying the 747 from o'hare to lax piano bars upstairs. 747 was it like ringing the to the public -- bringing the 747 to the public? francine: it was a mistake -- robert: it was a mistake. airplane and reused it for flights that -- we used it for flights that were much too floor does short. -- short. we put piano bars upstairs which was unusual, to get people on over -- on. smarter, as demand got we put the plane

giuseppe conte a cannot go back -- whenthing that looks you look at the rebates that could be included, the rule of law and what that means for eastern european countries, this is going to be another long day. the fact we have an agreement on potentially the grant does not mean this will be easy today. ultimately, if we get 390 billion euros in collective debt, we are taking a big cut, looking at less than 100 billion of money that was put forward. 500 billion euros. very hardball but they are getting what they wanted, which was less money on the grant, perhaps a bigger rebate and more say in how the money is distributed to southern europe. francine: what exactly are we expecting today? if there is not a breakthrough today, could we see it later in the month and does it make a difference? there are two theories at this point that we could see european leaders go back at four clock p.m., go into the early hours today and get the deal done by tomorrow. todayea we are going hasn't fully collapsed shows they want to get it done this week. if it is not possible, a theory has pointed to a bi

. -- when you think of giuseppe conte, it's a very different story.e needs to go back to italy with a deal and anything that looks like a troika will be very difficult for the italians. ofra: we have seen a lot tightening in the bcb boom bund spread. even if we do not see an agreement straight, capital markets are aware that some things -- sometimes things move slowly in brussels. is it possible if we do not see an agreement this weekend, is there a plan b, or should we just assume there will be an agreement at some point? maria: it is difficult to see what a plan b looks like in terms of the content because germans have repeatedly said they don't want to see the 500 billion euros in grants be watered down. a lot of this has to do with the optics of a deal. european taxpayers need to be able to see that their leaders are fighting hard for their money, and a lot of it has to do with the optics and the timing. there's a lot of speculation we could be in for another summit towards the end of the month, but going back to your question -- anything that str

according to french officials and italian diplomats told me that giuseppe conte, the prime minister saidl be lambasted, you will be seen as part of the reason europe fails. so that is how it's got, tiredness leading to tempers flaring and the art of diplomacy, like the masks that the leaders have been wearing, slipping. the parents of a student who took her own life in 2018 are now suing the university of bristol, in what's thought to be the first case of its kind. natasha abrahart was in her second year, studying physics and was the tenth of 11 students to die at the university in just over 18 months. an inquest last yearfound neglect and a series of failures by mental health services contributed to her death, but did not look into the role of the university. we can talk exclusively to natasha's parents this morning. bob and maggie abrahart in nottingham. and gus silverman is a human rights solicitor for irwin mitchell, representing the family. mrand mrs abrahart, mr and mrs abrahart, can you tell us about natasha, what was she like? she always had difficulty speaking in front of other

giuseppe conte very interestingly speaking, saying that this means that the esm is moving away, that he is not intending on tapping that. the flipside of course is that the frugal four will tell you they managed to get a real stress on reforms to make it clear that this money has to be used for reforms and they are getting a bigger rebate for the next seven years. the german one will stay flat but angela merkel in her press conference just an hour ago suggested perhaps this was ultimately the price of a compromise. it is a victory for merkel and macron who crafted this plan and took it to the commission for the european council. i suppose relief and no regret is part of the story here. exactly, and look, when you listen to macron, this is the french line, saying some things really have changed in europe, that the foundations of europe have been changed by this decision to go for collective debt, to have the european commission cap targets and distribute those grants to countries badly hit. if you look at where we were a few weeks ago, it seemed that this was going to be your typical

we know emmanuel macron had a last-minute bilateral we with giuseppe conte, who has a great interestmaking sure there is a deal by the end of the week. it's unclear. there's many few -- many theories. some suggest it could end tomorrow with no deal, or stretch into sunday only if there's a probability of a deal. anna: if there is no agreement, what happens? what is the plan b, maria? maria: that is a question we put two officials any times. if the deal doesn't happen, what could change? we know the people running the presidency. and angela merkel has said she does not want to see the grand component of this fund be watered down. she wants to see the $500 billion -- 500 billion euro safe hood. perhaps there could be changes to the deal. there could be conditions that could make it ok but it's difficult to see what could change in the content other than letting time go by, make a difficult negotiation. optics are important and into week's time, it's a possibility. there's a summit planned on the 21st of this month. thanks very much, maria tadeo joining us from brussels. the impairments

atlantia is the business that auto strada.trols giuseppe conte, his government will nationalize the tolln night talks on the politically charged issue. talksms that those carried on until 5:00 in the morning or so. we have seen the atlantia share price has gone higher. let's talk about what is going on in the fashion industry. we have numbers through from as os, with share price is up by around 1%. they put out earnings about an hour and a half ago. burglary gave guidance -- bert yarry gave guidance -- burberr gave guidance to the market, that stock down by just 5%. they will streamline their headquarters, in number of stores after lockdown, 500 job cuts out of the u.k. some news from the company after they reported numbers. let's talk about tech and legal threats to the industry. eu's second highest court will decide whether apple has to pay ireland 30 billion euros in what the commission because unpaid tax. let's get to alex webb. what are we expected to hear today? well, it will not be the final decision anyway. this pertains to taxes that apple did not pay for more than a decade, acc

according to french officials and italian diplomats told me that giuseppe conte, the prime minister said in the short term but you will be lambasted, you will be seen as part of the reason that europe fails. so that is how it's got, tiredness leading to tempers flaring and the art of diplomacy, like the masks that the leaders have been wearing, slipping. the uk government says all state schools in england will receive a funding increase of at least 2% next year. in a settlement agreed last summer, education spending will increase by £2.2 billion, an average increase of 3% per pupil. the institue for fiscal studies says there's been am 8% real terms cut in per pupil spending since 2010. ministers are also providing an extra £1 billion covid catch—up fund to help children who have missed over four month of education due to school closures during the lockdown. 0ur asissta nt political editor norman smith is at westminster. what can this money be used for, norman? there are two streams of money and one is the three—year increase in educational spending, worth over 1a billion over three yea r

in the first full-blown tests of the flood-prevention system, it was italian prime minister giuseppe conteates. "we all have to hope it works," he said. a hope and a prayer. it's a reference to moses who, in the old testament, parted the sea. perched atop soggy islands and wooden piles, venice has been slowly sinki ining since the fi century and is subject to routine flooding. rising sea levels and high tides triggered the worst in more than 50 years last november. streets and shops inundate the by chest-high water. >> this year it's too much. >> reporter: centuries' old artworks inside st. mark's basilica destroyed. hundreds of millions of euros in damage. a catastrophe in a city that survives off its beauty and the tens of millions of tourists who visit every year. a catastrophe that could have been avoided if only mose had been completed a decade ago when it was scheduled. but production has been slowed down by mechanical failures, corruption scandals, and arrests that even included a former mayor of the city. now the engineers say it will be ready by 2021. but many experts warn se,afte