and because these italian bars were centered around italian espresso, the proposal was the authenticne initially, but then there had been kind of a pushback from the american consumer to that, let's say, high body, concentrated italian espresso, so cappuccino was the boom. cappuccino, latte. americans had a great, say, milk drinkers. so this espresso-based drinks became the success. francine: who is your biggest competitor? is starbucks a competitor, or do they have just a different offering? andrea: our job is to avoid any direct competition. so if we see somebody's coming in our turf, we try to move away. we have thousands of competitors or none. starbucks that you mentioned, not necessarily because they are really in a different business. they are retailers. their core business is really operating their own coffee shops. the several thousands they have, tens of thousands they have all over the world. we are not in the same business. francine: so what is your business, high end? is it for restaurants? is it for bars? is it for consumption at home? andrea: the dream upon which my gr

political lea k gathering of the italian political leak on the shores of lake como.here is no doubt who the dominant figure is here. all the guests are waiting for him and he is my guest today, matteo salvini, the deputy prime minister and interior minister and arguably the most powerful populist politician in europe today. he rose to power —— to power on the back of the anti immigrant, anti— eu message so what mean for italy and for europe? deputy prime minister matteo salvini, welcome to hardtalk. grazie. we are meeting at the ambrosetti forum forum, where the italian political elite come to discuss the future of your country. and i have been speaking to people and there is a great deal of fear and there is a great deal of fear and suspicion about you and your agenda. some people are calling you dangerous, some people are calling you an extremist. why do you think there is so much suspicion of you? you've and said the question about immigration. there is one of the biggest issues it carried through the election campaign but there is a suggestion that italy and its

we are meeting at the ambrosetti forum, where the italian political elite come to discuss the futureountry. and i've been speaking to people and there's a great deal of fear and suspicion about you and your agenda. some people are calling you dangerous, some people are calling you an extremist. why do you think there is so much suspicion of you? you've chosen to answer me by immediately turning to the issue of immigration. there is no question that immigration was one of the biggest messages that you carried with you through the election campaign, but your message seems to be that italy and its problems could be completely solved were you to stop all immigration and get rid of the immigrants. is it your belief that italy's problems can be solved in that way? you say after stopping immigration. does that mean that you are determined that no more of these migrant ships will be allowed to land in italy? because over the last few months, we've seen controversy after controversy after these boats, loaded with hundreds of men, women, and children, are forced to sit in the mediterranean bec

but you are breaking the rules that were agreed by the italian government, with all of the other members of the european union, to run what is called operation sophia, and to have these migrants land in the nearest port, which happens to be italy, and you're now refusing to accept your responsibilities to take these people. but there was a real humanitarian crisis here, minister, and you have blood on your hands because of the policies you've adopted. the unhcr is quite clear. they say the new restrictions that you and your government have put on these migrant boats, the new limited access to italian ports for refugees and migrants, has led to a far higher death rate at sea. that's your responsibility. the head of italy's medical agency, stefano vella, recently resigned, saying, "as a doctor, i can't tolerate, as a public body, a time when people are treated in this intolerable way on our territory." you have been in office as interior minister for what, i believe, about two, three months. already, you face a criminal investigation from the authorities in sicily who, with regard to your

italian years -- italian yield surge. a tweet about taking tesla private. shares dropped 12%. a showdown on capitol hill. offerugh and ford differing accounts of sexual assault allegations. president trump stands by his nominee. where less than an hour away from the start of european equity trading. we are expecting to go a little bit weaker. this does stand in contrast to what we are seeing in the asian session. where expecting to see weakness in europe at the start of trade. ftse 100 may be insulated. we are expecting the dax and the cac to be softer. let's go to the gmm. the session in asia has been strong. we see the chinese market has been gaining. the japanese market doing very nice until very recently featured on the gmm as a result of very strong surge. let's look at the foreign exchange market. a little bit of dollar strength. we see a little bit more of that today. nothing very big. we see emerging-market currencies making some gains. let's look at the sovereign bond side and commodities. sovereign bond is where i want to linger. we see italian five-year bonds featur

you said, "unfortu nately, we will have to keep the italian roma because we can't expel them, but theo." but you know what this is reminiscent of? you know what this reminds many europeans of? it reminds them of the darkest days of europe in the 1930s and ‘40s. it reminds them of fascism. well, what do you say then? what do you say... 0k... when you talk of all romas, but only one ethnic group, the roma in italy, having to register, having to declare themselves to the state, neomi di segni, who is the president of the union of italian jewish communities, who perhaps has a long collective memory of those sorts of things, she says, "salvini is awakening memories of the racist laws of 80 years ago." do you not listen to things like that and perhaps wonder wheter you have gone too far? do you admire mussolini? i know you know your history. you've been a student of history. do you admire benito mussolini? but is it true that on mussolini's... the anniversary of mussolini's birthday last summer, you posted on social media the quote, "so many enemies, so much honour," which of course is an e

." ♪ jonathan: italian populists proposing a bigger budget. battering the italian market.reasuries delivering a weeks of gains. yields left negative for european buyers. heading into q4, we are set for the biggest annual loss since 2008. we began with a big issue. populists battering the italian bond market. >> we had these rolling existential crisis if the euro survives for years, and this is just one more stress point. >> 30%, which is a burden. they cannot be going even further. >> italy is a big economy in the european union. that should be a focus of concern. >> italy is still on a knife edge situation for me. >> this has been pressuring the markets for months it seems now. even if you get the budget problem out of the way now, it has been resolved. we will come back to this question in the next few months. >> there is something of a showdown that have to be followed through vis-a-vis the italian government and the european union. >> this is happening right as the ecb is dialing down qe. it is going from $30 million to $15 billion and then likely zero in january. we a

coming up, italian populists proposing a bigger budget. battering the italian bond market. treasuries delivering a weeks of gains, leading yields negative for european buyers. heading into q4. investment grade set for the biggest annual loss since 2008. we begin first with the big issue, populists battering the italian bond market. >> we had these rolling existential crisis if the euro survives for years, and this is just one more stress point. >> public debt have something like 130%, which is a burden. it cannot be going even further. >> italy is a big economy in the european union. it should be a focus of concern. >> italy is still on a knife edge situation from an economic point of view. >> this has clearly been something that has been pressuring the markets for months it seems now. even if you get the budget problem out of the way now, it has not been resolved. they come back to this question in the next few months. >> there is something of a showdown that has still got to they come back to this question in the next few months. be followed through, vis-a-vis the italian

italian stocks are also lower on concerns over the country's new budget the italian government agreed to hike public spending targeting a deficit of 2.4%, this figure is higher than the economy minister was hoping to achieve. the new spending plan could put rome on a collision course with brussels, but it is said not to be in the eu's interest to trigger a crisis with rome, urging italy to cut its explosive debt willem has the latest. you can see the markets reaction has been quite vigorous already. we've seen a big selloff in banking stocks, some are down as much as 5% 20 basis selloff in yields people are not taking this well. >> no, but it could have been so much worse some reports in italian newspapers this morning talking about the idea that geovanni tria, when he found out he would not be able to keep the ratio below 2%, threatening to resign. i've been trying to speak to his people he's been sequestered in meetings i got off the phone with the presidential palace, they called tria and said he should not resign it could have been significantly worse in terms of the market reacti

they have to deal with the italian headache.or them the outlook is actually much more -- by this outcome than if he had the 1.9% budget number we would have. jonathan: the market is drawing a distinction. do you think the risk is there? we can be on the path for exploring redenomination risk in a eurozone country? scott: i don't really think we are at that point yet. colin: i think we need to take it a couple more steps further to be a stress for the market. that type of redenomination risk, i don't think we are there. jonathan: if you look back at the financial crisis, one hangover that is still here is investors are treating peripheral debt as if it is credit and not sovereign debt. how much of a problem is that? colin: he went up having investors chasing the market both ways. if we look at a chart of non-european investors holding bonds, they went way down as the market sold off suggesting people were stopping themselves out of positions in august so in the market starts rallying no external investors can chase it down. that

though italian banks have started to reduce exposure to their own sovereign.r years in which it only increased. that has started it will take many years to come. i think italy is a case in ir itself the italian will have to save italy. the markets won't do it. europe won't do it italians need to at thes theirdr own issues we are losing time, that's a scare xh scarce commodity in italy. >> we have to leave it there we heard from mr. jeroen dijsselbloem, italy has to help itself >> joumanna, thank you very much for that interview strong comments there on the cross border activity required to sure up the banking system in europe. >>> president trump has rejected a request for a one to one meeting with justin trudeau saying he is unhappy with nafta talks. but trudeau's spokesperson denied the statement saying no request was made for a meeting speaking in new york, trump said canada continues to treat the u.s. badly >> we're thinking about taxing cars coming in from canada that's the mother lode, that's the big one. we're unhappy with the styles of canada we don't

second, there is a liquidity premium for italian government bonds.an't trade the size we were looking at earlier in the year. and of course, probably the most important of all, people are looking into september and looking at what the announcements are going to be around the fiscal side and how much additional spending the italians want to get out there. what is interesting is we are back at levels, as you mentioned, the highest we have seen for a while. the highest we have seen this year, back to where we were in april, may time when we first got all these concerns regarding italy. it feels like we are in a much better place, though, from the mood music we were hearing out of the italians. at the time, we were discussing a 7%, 8% deficit. there were talks about a euro breakup. i think we could see the italian governments do pretty well over the next couple of months if we see good news on the fiscal side. lisa: what is your sense? priya: i would agree. i think relative to me, the market was so complacent about italy. the market has been extremely ne

. ♪ coming up, italian proposing the italian bond market.reasuries delivering a week of gains leaving yields negative. investment into q4, set for the biggest annual loss since 2000 and. we begin -- since 2008. we begin with the italian bond market. >> rolling existential crisis about whether the euro survives. this is just one more stress point. a burden that can be going even further. >> of course, italy is a big economy in europe that should be cause of concern. >> this has clearly been something which has been pressuring the markets for months, it seems. even if you get the budget problem out of the way now, we come back to this question in the next few months. there is something of a showdown that's still got to be followed through. government italian and the european union. happening, and then likely zero in january. we are all wondering who is going to be supporting italian debt going forward. jonathan: joining me around the table is a fixed income portfolio manager. plus coming to us from chicago is the head of fixed income at northe

italian or german? >> maurizio: just italian. >> anthony: just italian.. so life is good as far as i'm concerned. give me a good spaghetti with white clam sauce and i don't need much more. maybe some wine. everybody here says the same thing, "we are open minded. we try to be fair to everybody. we're welcoming. we're proud of that. that will never change." do you think that the refugees who are coming here, that they will be integrated into german society as efficiently and as gracefully as your family was? >> maurizio: i'm not sure because times are so different to the '80s. >> anthony: but, look, germans are organized. >> maurizio: organization is just one fact. you need to control, to handle this, but um -- >> anthony: look, all the people who were involved on new year's eve, do you think that if they get work, that if people are kind to them, if they're given housing, do you think eventually germany will figure it out? >> maurizio: i'm not that optimistic to be honest, because i'm convinced that it's not a german problem. >> anthony: right. >> maurizio

francine: does it mean that italian football is back? : i really think so. italian football has been losing ground, and the best example would be that italy didn't play but now, -- , to have a prestigious hedge fund would make a difference. francine: what does it mean for elliott's strategy going forth? do you think they will -- paolo: the decision is made by my thought isbut that since it is a hedge fund, one day they will dispose of it to a goodg buyer, probably. francine: does ac milan need the signing of someone like renaldo to be back in business? paolo: we now have -- playing like -- he ise is run although -- he is ronaldo-like. francine: but he is and him. are there more -- more acquisitions? paolo: there is no doubt that the team of milan this year is stronger and younger than last year, but we are quite happy to have this team now. and we are happy to have with , who isardo and maldini a legend for . how much of football is leadership? the president's role? paolo: there are several leaders now, there is the company, a chairman and executive board. a

italian football has been losing ground in the last 10 years.he best example of this losing ground is that italy did not play in the world cup for the first time since 50 years or even more. we have ahe fact prestigious hedge fund buying will make a difference. francine: what does it mean for elliott strategy going forward? are they looking to find an owner and sell it? paolo: my guess is that since it is a hedge fund, one day they will dispose of milan to a buyer and looking to make a profit at the end of the day. francine: does a.c. milan need a signing of someone like ronaldo to be back in business? paolo: we are kind of back in business. as you probably know, we have a player who is playing with us. -like.ronaldo francine: he is a great player, don't get me wrong. do you think there will be more positions? paolo: this year, no. we made 4-5 major acquisitions. there is no doubt that the team of milan is stronger and younger than last year, so we are quite happy to have this team now. on top of that, we have with us two players maldini, a lege

italian years -- italian yield surge. a tweet about taking tesla private. shares d

it put the outlook for italian debt on what's negative.her key concerns affecting european trade? in the u.s., i am looking at u.s. investors coming out of europe. is that because the u.s. looks better with a stronger dollar or the fact they are nervous about the political headwinds that hit u.k., italy, and turkey? equitiesnly, european are at a much higher volatility than u.s. equities. with the discussions around italy and turkey to some extent, although turkey we expect to be very contained so not a lot of spillover effects. eurozone banks have little exposure in terms of subsidiaries to turkey. that is rather contained. from the fundamental point of view, european equities look fine. earnings developments have been decent this year. stable earnings revisions. from a fundamental perspective, everything looks fine. but we need to watch out for real economic impacts with the discussions on the political f front and the effects those will have worldwide. caroline: what about exports in general? we have seen autos hit about trade tensions

the italian job the nation's stocks a tanking but you leaders in rome pledging a big budget overspend brussels is not happy. in the driver's seat all the hot seat u.s. regulators accuse a lot moscow of securities fraud the test the boss could lose his job. and turkish ties the state of germany's economic relationship with turkey as president or one of his exposure in its currency crisis has investors on edge. i mean fizzle and let's do business there's a clash in the making the european commission has one to italy to reign in spending now the populist government of rome has agreed to boost its budget the milan stock exchange lost over four percent as investors panicked selling off italian assets. the new budget proposals are dominating the headlines across italy today the draft budget would push italy's overall deficit to one hundred thirty two percent of g.d.p. italy already has the second highest debt level in the euro zone the governing five star movement and league parties say they will lower taxes and bring in income subsidies for the poor but the e.u. is concerned. we have no in

it was a day dominated by the italian story. news of this larger than expected budget deficit that is putting financials really under pressure. by 3.45%.own the link between the italian bond market and financial sector has never really severed, and today we saw that as we see the 10 year trading at 3414%, and the tenure marching towards that 3% mark. let's turn to what is happening stateside. with everything happening in bc, we actually have a small day for the major averages. small gains for the major averages flipping from losses earlier, and this is also the story on the s&p and nasdaq. let's take a look at this cart of the toward early performance for the s&p 500. not a lot of down over the last five years for the s&p 500. quarter for its best since 2014. investors are looking past the noise of a trade war, the uncertainty in d.c., and looking towards strong corporate outlook. on the day we have a big lagger, tesla. let's look at a two-day chart of tesla, down 12.6%, on pace for its worst day since 2014 on news of the sec la

a lot of the worst performers are italian companies, particularly italian banks.have been seeing it yields a spike by more than 20 basis points across the curve. meanwhile, the euro took a little while to react initially for at least half an hour it was initially unchanged. it is heading a little lower now. quite a contained reaction in the euro compared to what we are seeing in italian bond and equity markets generally. let's take a look at what else we are watching the global markets. overall, and by the way the msci asia-pacific index ended the week on a high over in the asian session. we cite u.s. stocks again as well in some time -- and something like as many as four days. seeing the losses we are on europe's equity benchmark nothing compared to what we are seeing on the ftse mib. you are seeing 10-year bund yields drop by 2-3 basis points. dollar-yen and focus because we have seen some dollar strength since the fed decision generally. the yen hitting in this session its weakest level in 2018 against the dollar. , thehis quarter to date yen is one of the wors

scott: it wasn't just italian descent, those who looked italian. victoria: you could be serbian or spanish or greek. william: these guys were popular. they were like the robin hood's. the victims were terrified of them. they were also very generous in the community. church, the bank love them. the bankers love them. the little league baseball team, whatever. there was a regular basis during the trial, crowds of people outside the courthouse. i don't know they were paid or not. you could never figure that out for sure. you could hear them, released the guys they are wonderful men. victoria: their outstanding citizens. scott: the little league team, i am just picturing bad news bears . what happened at trial? taylor was i guess oldfield did one full day of testimony and he was the star. he gives in the -- he brings in the trunks, wheels it in for effect. he had to make it sensational. they get there all sorts of testimony and the defense side is just amazing. battle ofgreat, epic prosecutors and defensemen. hat?oes to jury and guess w forconviction o

seeing a move in the italian banks are really rising this morning.e main movers on the italian market this morning, banks. unicredit, up by 2.5%. the top five, six gainers are trading up, quiet -- quite strongly. the market is outperforming the rest of europe. if you take a look at what is happening, you have btps. we are getting a big move on btps as well. prices are rising. this is one of the biggest moves we are seeing as a flight. -- as of late. reason potentially, politics. battalion leaders are looking at the 2019 budget -- italian leaders are going to be looking at the 2019 budget. hipsawing the markets over the last few days. saidinance minister has bond yields shortfall -- should but is the finance minister on the same page as the italian political leaders? neil dwane is still what us. how big of a threat does italy posed to the european story? -- pose to the european story? stimulus is probably good for the european economy. germany both broke the budget limit of 3%, a decade each. i don't think the 3% is set in stone, but there is the aggr

why do you care about the italian economy? why do your investors care >> to an extent that we can ignore it because it's a self-contained economy, they finance themselves that's always been the case. also lived in a terminate state of chaos for years with weak government, no legislation, all of that sort of thing. you could say nothing has changed. but it's big it's one of the bigger economies in the world one of the biggest in the eurozone if the politicians manage to blow apart the budget promises which will require the ecb and the german government to make decisions, that matters to markets not just in europe but around the world does that set precedent if they come in direct conflict with brussels that could have implications for other european economies and therefore for other european markets is that something you're concerned about? >> we worry about the knock-on effect of various matters in europe for a while now it could encourage others. but i think the lessons learned in greece, from the greek government, you have t

were poisoned with a nerve agent no big shock last march once again the incident took place in an italian restaurant so this time a different establishment. also coming up another case of a suspect in closing the kremlin critic is being treated here in germany following a suspected poisoning in moscow there are various aloft as one of the more closely riot protesters who stormed the pitch during this year's world cup final in the russian capital. and lewis hamilton takes another step towards retaining his formula one a world title the briton dominates under the lights on the streets of singapore. thanks for joining us i'm marion and stand. we begin this hour with breaking news coming in from solsbury in southwest england police there have cordoned off parts of the city center after two people became ill at an italian restaurant chain called press the news has spread quickly across social media now this tweet is from a woman who says she was near the couple at the time of the incident she writes feeling a little apprehensive saul's very leaps to action again when two russians are taken ill

to ans at least according italian newspaper.ot said where they get that information -- got that information. joining us is our bloomberg european government editor. will this meeting take place? are hearing some of the more junior officials in the administration are meeting today to try and flush out the standing issues over the budget deficit over the next year. they are hoping to reach an outline agreement they can take to the cabinet later. the gap between the side seams wide.- seems the finance minister has been clear he does not want any deficit beyond 2%. anna: we have seen rumor about whether he stays. he is any establishment figure, who has been placed in to try and act as a restraining influence on the populace who won the election -- election.who won the there are reports tonight he has threatened to resign, but he has implemented a lot of pressure. bund we are seeing the spread blowing out a little bit on the back of that news this morning. thank you very much. up, our exclusive interview with the bank of england gove

on the other side, the value of italian companies is still very the awareness of the italian name isng. francine: where do you see europe going? do you worry about the fabric of the european society? we should have some concerns about europe and it immediately reflects on the fashion and luxury market, the local consumption is not growing. dynamic -- wea don't have the dynamic we used to have five years ago. lack of activity normally in china. advantage.initely an tom: about yergin a show up today with year work at -- is not working, but physically unfit avenue, they can't keep them in the store. luxury is booming and gucci is leading the way. how has gucci changed the world balentine oh and the rest of luxury. michele: luxury companies were growing by geography and in the last 3, 4 years, it was quite clear that not only in the product, in a vacant indication -- innovate -- not all companies can do it. how do you do that? how do you make, how do you bring together michael cores and -- and versacci? -- is a very talented manager. group, morein the industrial synergies. -- is a very i

launch a populist coalition took power in the one hundred days in office pick up new books of how italians the coalition is doing and actually governing. council get a welcome to the program in a historic decision india's supreme court has overturned the nineteenth century law that made gay sex illegal because you're not a missed decision treated jubilance seems the chief justice said the law had been used as a weapon for housing gay people introduced to julie a jury colonial rule a time section three seven seven of the country's people code might gay sex punishable by up to ten years in. j m l g b t communities have been celebrating the world. economy. if they get very very fundamentally. not surprised that we didn't get a lot of support inside but finally the judgment came from and that's all we needed as the youth to model we need to be who we are. this is literally just a force to exist he can my vision so it's like he's mine is north and it's you know and i think this is you going to. need a lot of effort from us to get dismissed in their speeches so we want. to see if that is somethi

economy is sound italian business is sound. and most economists disagree insisting that italy's in trouble but facts don't seem to get in the way of savvy nees success. across the river from the lake of festival people are trying to do something about that. political entity has organized a protest picnic they are sick of their new government claiming that migration is responsible for everything. it got back to me that he thought it was going on in reality it is problems like elsewhere we have high youth unemployment and many other people have only temporary jobs there are very few young. people who get permanent contracts we have a high poverty rate in relative and absolute terms. it's no surprise that the event on this side of the river is the only one to host some migrants. on the other side show is drawing to a close the interior minister's folks and sometimes funny demeanor is one of the reasons why he's managed to govern and gain in popularity he admits though when pressed that it's not all been fun and games this. well it

correspondent max hoffman reports from the northern italian city of bergen more. the site of the show is about to start after hours of waiting such enthusiasm begs the question is this really the interior minister of italy or pop star. the lego was founded close to where we are right now and it's been hosting this first of all many years now so this is classic home turf for my side of the unit and you can tell people here absolutely adore him. and his fans appear satisfied with what he's done in the first one hundred days in office especially on migration why why it should be is a part of trying to protect it that he's tried to give us a better part of the. park on before i need to get it. we believe in solving any and what he's doing this can be a revolution for. a lot of things are moving for i went and he's keeping his promises think it's a fatwa if it even means that it's time and. no surprise that his promises on migration are a big part of the show but outside the populous bubble many are getting nervous about what the new government is actually achieving es

of much will that impact italian reform and growth?ation of our exports is positive, sunshine, i would say. several areas of the world that are slowingiculties down their difficulties. the eurozone, our main economic partner for exports, is in good shape. the american economy excepts italian products positively. we had some difficulties with russia but even these difficulties are slowing down. , in 2017, our historical and of surplusts in our exports. after germany, we are the stronger european country on industrial exports and i think we will keep this position. need a goode climate in the economic environment and we need the confidence of entrepreneurs, of our business community. this is what the government is putting at risk, the confidence of italians. francine: i remember you working on getting italians back to the country. it is there a danger italians it leave the country or does brexit help? paolo: many of them are coming back to italy, our universities are more international than they were. talkingore frequently about italian

italianing buying bonds. we're looking at what kind of spending and what kind of profile are we looking at. these standoffs between the budget rules are quite regular and lots of it comes down to how good nationstates are at making a case where this is the kind of spending the takes on a more stable platform against the backdrop of some infrastructure spending. it's a more credible way to argue a case. rather than porkbarrel spending. about theyou worry catch-22 about how much banks have exposure to italian bonds. and actually the fact of the economy is vulnerable because of that. simon: i do worry. you look at the progress the italian state has made on nonperforming loads -- loans. but we do need to understand is if they expanded fiscal injection from the time toernment passes through higher growth, let's not business that is an outlook. industrial performance will improve. this is why the details are really important. francine: if you go back to my becauses this markets we hear about italians first, is this

so italian banks, credit is five times more tangible. one of the cheapest banks if you want to buy quality it's an 8.5% dividend yield these are good investments for us today it has become too negative and risk/reward will be quite positive. >> that's the comparison between italian banks and european banks. what about a comparison between european banks and the u.s. counterparts do you feel like they're undervalued at the moment? >> the valuation difference between euro area banks, it will take all of europe, sweden, u.k., you're talking about 10% we're still overweight u.s. over europe the reason why is because we see total shareholder return of over 10% every year in u.s. banks in fact, u.s. banks have created shareholder return for the last ten years since the crisis in europe the book value has been flat for ten years. you get the dividends but you don't get any book value per share growth it's 3%, 4%. that's very attractive over to 17 times leverage. so you need to bring in returns higher at this point we're still higher u.s. over e

what does the italian government need to do to calm the risk?: the italian government needs to convince people that this plan will work and will increase prosperity and will get growth going again. that could be a tall order, and the european union will be looking over italy shoulder to see exactly what will be going on. alix: thank you very much. turning now to another issue weighing on global markets, and that is trade. i spoke with hank paulson, the former u.s. secretary of to sayy, and he had this over the long-term. we don't pay enough attention to the dangerous, long-term impact. companies want to do business with the united states because we have reliable, stable economic policies. is -- ision really china going to look for new places to buy soybeans? are they concerned they need to protect themselves if there is another tier four and they need other suppliers? john rogers,come ariel investments ceo chairman and founder. we will talk about ariel investments specifically and your track record since the crisis. you heard hank paulson say he

i'm taking about italian politics.having an impact on italian companies and their willingness or eagerness or ability financially to do deals? let's start with investor sentiment in italy. marketlian stock index is spread over the german government. it's reaching for points again. outlook on the rating was cut late last week. i think they're looking at what the government will do. the end of september, there's a big focus on whether or not they will be able to match the promises made to the voter. if they will be able to stay in the parameters that they have been asked to stay. from a deal perspective, italy has been quite this year. there have only been three large deals. and one need -- one ipo. anna: is that because of the politics? partly because of the politics. >> we are seeing some hesitancy whether that's because of high valuations, geopolitical rifts in turkey are other markets area looking ahead for the rest of the year and going into 2009, what do you see in the pipeline? pier: indeed it has been a record ye

i have some italian viewers. i have some italian viewers.y would have died. >> very good point. >> stephen: thank you. >> very good point. >> stephen: thank you. >> another quick one. captain cook went to the south pacific. >> stephen: sure >> and you look at his orders, okay, venus is going to pass between earth and the sun, measure that with our telescopes we're going to give you. it was a scientific an expediti, ostensibly. while you're there. here's new navigation tools, map every coastline you come to and bring back the maps. that's what he did. he measured the transit of venus. fine. comes bark presents the maps. within 18 years great britain had taken control of northern australia, of new zealand, of tasmania, cook islands, fiji, and tuvulu. everyone of those flags -- >> stephen: because the scientists provided the information the military needed. >> yes, yes! and every one of those countries has the british flag as an inset in what would otherwise be their sovereign flag. >> stephen: what about our space program? because our space pr

force you to step down and the italian job the nation's stocks are tanking and their leaders in rome pledging a big budget overspend brussels is not happy. i'm christopher to the program. facebook promised differently yet here we are again fifty million accounts might be affected in a new data breach the social media giant says it does not know who is behind tuesday's hacking attack and where the perpetrators might be based but the breach could allow hackers to take over facebook accounts users who have used the view as feature in the last year are especially vulnerable facebook says it has taken steps to fix the security problem at alerted law enforcement earlier this year the world's biggest social network had to admit that up to eighty seven million user profiles had been compromised. earlier i spoke to jared reed from our social media department and asked him what else we knew about the case so far. packages were able to get bits of information that gave them access to fifty million user accounts as you said and the information cold tokens these are basically the digital keys to

italian yields had a good day yesterday. we rallied about 8 basis points going into the budgetary discussions. willem >> thanks. president trump has renewed his attacks on iran at the united nations on tuesday he accused the iranian government of s eshgsowing chaos iran's president responded that u.s. sanctions amounted to economic war he also suggested that trump suffered from a weakness of intellect. andrea mitchell has more detail on the speech to leaders at the u.n. >> reporter: the america first president, strutting on the world stage. >> my administration has accomplished more than almost any administration in the history of our country >> reporter: a boast prompting marking laughter from the global audience [ laughter ] >> didn't expect that reaction, but that's okay. >> reporter: a year ago at the u.n., the president threatened to destroy north korea, if necessary. today, planning a second summit with kim jong-un and praising kim for his courage. >> the missiles and rockets are no longer flying in every direction. >>

i'm seeing value in italian banks, and more general european banks.: if i take you to the spread, which we just mentioned, and ask whether we will see politicians answer to the lord of the spread, georges 64 basis points. is this an opportunity now or will you be waiting for widening? eric: it's an opportunity now and it's starting to behave. italian bonds have rallied during this recent leg of volatility aversion, or risk aversion, because they got hit her earlier around election time. still the case in the absolute level of yields is low. high spread. i would go for the equity. manus: let's talk about the equity. big shout out to the queen of chance. chart.t have an italian european banks and credit risks. there is a high correlation here. the question you have proposed is they are not out. a time banks over french banks, is there going to be a big m&a play? we've got a whole host of voices, one of those is the voice of deutsche bank ceo. what's the play for banks? eric: i think eurozone banks are attractive. two reasons. they been degraded signific