letta is holding his confidence vote.k he may be able to pass it because of splits within mr. berlusconi's pdl party, as well. let's show you where we stand as far as the currency rates are concerned. the dollar is trying to get off those eight-month lows t moment. euro slrn dollar, 1.3531. dollar/in is down to 97.39 at the moment, near the one-month lows. and the pound is up over 1.62. very strong. and as far as bond yields are concerned this morning, treasury yields, we'll take a look at those. 2763% is where we stand. we hit 2759% on monday. and italian yields are lower. 4.7% we hit on monday when we got that challenge reaction and challenge in the withdrawing of support from berlusconi ministers to the government. but yields back down to 4.37%. >> a lot of happiness in the italian markets today. still to come on this show, will investors welcome another round of long-term funding support for the currency blocks struggling lenders? we are live in paris to preview the central bank aes meeting right after this. lyrics: '

[applause] >> a smile from the prime minister enrico letta on the left.gestures of support from berlusconi's allies. the rubble senator defied him earlier this week by saying he will vote in favor of the government. berlusconi's rapid turnaround came as more and more members of his party announced they were siding with the government. earlier in the week, five ministers refused berlusconi's demand for them to quit the cabinet. berlusconi's critics say his call to bring down the government was simply an attempt to avoid losing his place in italian politics. an upcoming vote could strip the former prime minister of his senate seat following his tax fraud conviction and four-year prison sentence. >> to greece, where the head of the far right old and on party is in court this wednesday -- golden dawn party is in court this wednesday. this comes one day after for golden dawn mps denied the charges against them. three were freed pending trial, and one remains in custody. >> back on the streets and as belligerent as ever -- >> we will eat your witnesses for brea

i think this is what letta is counting on.the risk is political correctness -- political paralysis in that he survives but he cannot take risks. >> on twitter, italy is stock in a self-referential debate and is unable to release urgently needed reforms. we get a sense of the possible political gridlock. the fears that these antiestablishment rds can feed off of them -- parties can feed off of them. it is not just italy where antiestablishment parties are gaining ground. after handing himself and to authorities, members rounded up after the fatal stabbing of an anti-fastest -- anti-fascist hip-hop artist. in australia, the freedom party nearly finishing second, just one point behind the conservatives. >> we have never -- we have never had this before. losers form a loser coalition. >> what is your party -- what is your prediction as to the future voting patterns in europe? >> i am very worried about it. i am very pessimistic. we have the news that europe is in the grip of policies and voters are moving to the right for answers

that is what letta has to do. >> who is going to do it, letta or brussels and berlin? >> i hope that happens. otherwise draghi said the only thing we need is stability and reform and the only guy that can make it is letta. if he's able to survive. >> weigh in? >> stability and reform? there is one school of thought that says that is what governments and countries need. this is a big victory for stability. on the other hand, when you have strong national governments and you have also got russell's taking a big hand -- brussels taking a big hand, you give rise to populists. >> this friday, a day of national mourning in italy when all of the bodies are recovered. an island that is closer to north africa and sicily. the death toll could top 300. the vessel caught fire on thursday. most of the dead are from the horn of africa and ghana. >> we expected that after so many instances something would change. we hoped for something to change . it cannot continue like before. otherwise, there will be a other bodies again in the future. >> the peoope who this friday called the disa

inside the prime minister, enrico letta, appealed for a vote of confidence, saying italians could not take any more scenes of what he called political bloodshed. the government's problems must be separated from the legal problems of silvio berlusconi and that the government's collapse would be fatal for italy. while he was speaking, silvio berlusconi sauntered into the chamber, weary from a night of trying to get his party to back him. there were gestures of respect, but dozens of his mp's were preparing to defy him. so, he announced an extraordinary u-turn. >> italy needs a government that can deliver reform. we have decided, not without some internal strife, to support the government. >> enrico letta had survived and gave this response to mr. berlusconi's climb-down. >> when he left the senate, he faced boos and shouts from some of the crowd outside. some of his allies spoke bitterly of traders in the party -- traitors in the party. others tried to defend their leader. >> more than ever, he has shown that he is a statesman. he took the decision only considering the interest of the c

we sit down with the italian prime minister, enrico letta, in an exclusive t.v. interview. >> ifill: then we head to new mexico, where thousands of wild horses are straining natural resources and prompting a debate over whether some should be rounded-up for slaughter. >> these horses are sacred to us. we love our horses. but we love our land, too. >> woodruff: those are just some of the stories we're covering on tonight's "pbs newshour." >> major funding for the pbs newshour has been provided by: >> supported by the john d. and catherine t. macarthur foundation. committed to building a more just, verdant and peaceful world. more information at macfound.org >> and with the ongoing support of these institutions and foundations. >> this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> ifill: our lead story tonight: the end is finally in sight, in the political stalemate that closed part of the government and threatened national default. senators crafted a compromise to

inside the prime minister, enrico letta, appealed for a vote of confidence, saying italians could not take any more scenes of what he called political bloodshed. the government's problems must be separated from the legal problems of silvio berlusconi and that the government's collapse would be fatal for italy. while he was speaking, silvio berlusconi sauntered into the chamber, weary from a night of trying to get his party to back him. there were gestures of respect, but dozens of his mp's were preparing to defy him. so, he announced an extraordinary u-turn. >> italy needs a government that can deliver reform. we have decided, not without some internal strife, to support the government. >> enrico letta had survived and gave this response to mr. berlusconi's climb-down. >> when he left the senate, he faced boos and shouts from some of the crowd outside. some of his allies spoke bitterly of traders in the party -- traitors in the party. others tried to defend their leader. >> more than ever, he has shown that he is a statesman. he took the decision only considering the interest of the c

thank you both for joining us. >> letta, in your report you write some in yemen fear the u.s.ore than al-qaeda. you say when the u.s. government is considered more of a demon than a notorious terror group there's a problem. has it got that bad? >> yes, i think so. in yemen many feel that the u.s. is then my because drone strikes are in some cases killing civilians. whereas al qaeda in the arabian peninsula is careful to not kill civilians. i'd like to emphasise that i'm not saying this is an endorsement of al qaeda in the arabian peninsula, we consider the group a serious threat. we do understand that the united states needs to do all it can to protect america from strikes by this group. so that is not our issue at all. our issue is that in some cases the u.s. is unlawfully killing civilians in the strikes, and when it does so, it needs to acknowledge and take killings. >> let's have a look at the numbers. last year, in 2012, the bureau of investigative journalism found 132 to 153 total drone strikes in pakistan and yemen this year. so far there has been 47 in those countries.

now letta has to see if he can capitalize.oalition couldn't agree on steps to get the deficit under control down below 3%. that's still a problem. still have all the structural reforms to go. things like the role if we had to go to an election we could have ended up back where we were, let's look at the polls as of next week and just see what damage has been done to the perform dl and the strength now that perhaps prime minister letta can garner. it's still politically a really tough situation and a difficult role now for the coalition, but the first thing is likely to happen behind me, what is the future of bers coney and his party? well, they're expected to make a statement behind me in around 40 minutes just to explain what happened with the factions in the party and perhaps how they're going to go on from here so that will be interesting to see. the second thing, of course, is that senate vote tomorrow on the future political career of berlusconi. i've been fascinated by all the press coverages is the end of berluscon berl

we sit down with the italian prime minister, enrico letta, in an exclusive t.v. interview. >> ifill: then we head to new mexico, where thousands of wild horses are straining natural resources and prompting a debate over whether some should be rounded-up for slaughter.

prime minister letta was on the island yesterday and he said europe cannot turn away from the italian refugee tragedy, saying europe would give 30 million euros to help italy settle refugees into the country. let's listen to what the prime minister had to say. >> this visit has been an opportunity for us to listen to the messages and the requests of people here. it's means that today we as repartee -- it means that today, we as representatives of the italian government along with representatives of the european commission we are able to go forward within our respective institutional capacity. we are now able to act knowing what their real necessity and priorities are here. >> in egypt, the ousted president mohamed morsi has a date set for his trial. that is november 4. he is going to be tried on charges of inciting murder and violence. our reporter joins us from cairo. catherine, what more do we know about the upcoming trial? >> egypt has been waiting to hear the fate of ousted president mohamed morsi for months now and today we finally had the announcement of the date of his trial, n

breakaway group if he does not give up his bid to bring down the coalition led by prime minister enrico letta. on saturday, berlusconi ordered his five parties -- his party's five ministers in government to resign. he is famous on the art-house movie circuit for his epic work, "heimat." >> we will be looking at the newest addition to the series by edgar reitz. at least 55 people have been killed, more than 100 wounded in a series of 11 car bombings across the iraqi capital, baghdad. most of the targets, shia- dominated neighborhoods. or has been a sharp rise in sectarian violence in recent months -- there has been a sharp rise in sectarian violence in recent months. >> unnamed intelligence officials say the strikes targeted militants in the north waziristan region. there has been no word on the identities of those killed. >> russian court has detained the eight remaining crew members of a greenpeace protest ship for two months while they are being investigated for piracy. the 30 activists on the arctic sunrise ship were arrested earlier this month during a protest against oil drilling in the

secretary of state john kerry is meeting the italian prime minister enrico letta in rome. forletta is expected to ask an explanation on reports u.s. intelligence has been intercepting italian phone calls. it will also discuss air ran, syria, and the middle east peace process. saudi arabia will make a major shift in relations to the u.s. to protest what -- against what it sees as lack of action on syria. the intelligence chief reportedly said the u.s. failed to act effectively against syrian president assad. says ajustice minister convict that survived his execution should not face a repeat hanging. the 37-year-old man was hanged in the northeastern city after he was convicted of smuggling drugs. but he was still breathing when his family went to collect his body from the morgue. the global police hunt is under way to find the parents of this little girl known as maria was found in a roma community in greece last week. and suppose has asked all of its 190 member countries to check the girl dna profile against databases of missing people. greek authorities are investigating

some openly defied him and vowed to support letta.erlusconi could be proved from the senate seat he now holds once he begins serving his sentence for fax fraud this month. >> the leader of greece's golden dawn party is accused of running an organized crime ring. two more party officials were freed on similar charges. the investigation was launched after the murder of a musician. we have more on this. tell us more about the golden dawn party and just how much influence does this party have in greece. >> golden dawn's influence and rise to prominence, if you like, some might anyway notoriety has really taken place in the last three years. it was irrelevant until then, but when greece's economy starts to slide, doledden dawn became more and more important, culminating in the general elections of last year, when it got some 17% of the vote, that meant that it was automatically able to put members in parliament, some 18 members. that came as an enormous shock, because it is an extreme party. that many of its enemies would characterize it a

they are not the only group in the country who voiced disapproval at prime minister enrico letta's 2014 budget that we unveiled this week. he faced criticism from his own coalition. other groups said that these adjustments do not go far enough. many italians, certainly many that we spoke to here have been saying that what is happening or what is being proposed is minimal, and it's not going to change italian's life for the better. italians are used to living in modest circumstances across the years, since the recession. this is on top of having to contend with a decade of slow growth in the country, a country which has limited opportunities for people, certainly the younger people here. a result of that has been a rise in unemployment. again, most affected the younger generation. we have seen the unemployment rate go up 40%. that is a crisis because what it is is laying down the foundation for things to get worse for italians here. >> thank you sonia gallego there. >> an italian court ruled a former prime minister silvio berlusconi should be banned from holding political office for two

bit looks like letta will indeed get the support he needs. and the yields have come down 4.37% is where we stand at the moment. remember, they were yielding 4.7% two days or so ago. gilt yields, 2.7%. a little bit of data today out of the uk, construction pmi still hot suggesting we've got a fairly robust economy. that is where we stand right now in europe. back to you. >> all right. ross, thank you very much. when we come back on "squawk box," he is an icon of technology. but some microsoft shareholders wants bill gates to back it in. we have that story, it leads our executive edge right after this. plus, we are counting down to the 8:15 a.m. release of the adp employment report on this jobs on wednesday. "squawk box" will be right back. >>> welcome back, everybody. time for the executive edge. we'll start out with a story buzzing around microsoft today. three of the soft wire giant's top 20 investors reportedly want bill gates to step down as chairman. the shareholders who hold about 5% of the company's stock requested their identity remain

in rome today, prime minister enrico letta vowed to ramp up patrols. >> from tomorrow italy will be operating a military and humanitarian mission. usually important dimensions because for does is intolerable that the mediterranean has become the sea of death. the pedestrian rainian sea is our sea and we cannot tolerate what has been happening in recent days. >> ifill: many of the migrants are fleeing fighting in eritrea and in syria. gunmen in syria have released three red cross personnel and a volunteer with the red crescent organization. they'd been abducted on sunday, as they returned to damascus from delivering relief supplies. three more red cross workers were also seized. they're still missing. in eastern india, authorities raised the death toll to 25 today, in the wake of a huge tropical cyclone. but it could have been far worse. the weekend storm packed winds of 130 miles an hour and destroyed thousands of homes. officials evacuated about a million people in advance, averting a far worse disaster. a cyclone in the same coastal area killed 10,000 people in 1999. the world anti-doping a

the prime minister letta will attempt to revise the struggling economy by cutting taxes and spending offering relief to commercial banks and giving incentive to firms offering workers permanent contracts. this as portugal is expected to today. julia is in luxembourg and join us for more. so are we comfortable those budgets are going to deliver sustainable finances and not damage growth too much, jules? >> well, ross, it's a fair question, isn't it? i think the suggestion would be that the movement continues as far as consolidation is concerned. what we're going to see next year is less than the consolidation we've seen in previous years. putting growth at the tart of these budgets, still very difficult for countries like ironland, like spain, despite the fact that we are hearing positive nous noises here from the european commission. this dominates your decisions over the last 24 hours. they've stated just what the current play is as far as greece is concerned. listen in. >> the mission to greece, to conclude the review is interrupted. so it's up now to the greek authorities to do wh

do we think now that letta is going to get that confidence vote that he needs tomorrow? >> well, it's still too early to tell. today is crucial for him. a phone call that was aired last night in which sylvia berlusconi accuses the president of having intervened in an appeal escort by calling them and forcing them to reconvene and come out with a harsher verdict for sylvia berlusconi certainly is playing a role here today. that is one more storm in which berlusconi finds himself, including the fact as you were mentioning yesterday it seemed as though his own party saying maybe the support to go forward is there. what that means is that the idea that sylvia berlusconi has worked hard at saving himself. it's prevailed to the interest of the party and of the italians. so it looks as though he is start to go lose this historic support. he's always been so tenacious and so capable of getting support from voters of his own party. some of his closest followers seem to be teetering. that is looking a little more likely. on this sunny day in rome, right behind me, there is a storm

in italy, turmoil averted there after former prime minister silvio berlusconi decided to back letta. his point is angela merckel won -- >> they're thinking about world war ii and they're thinking if we have currency, maybe germany doesn't rearm. these guys, this is about 1936. there was a question whether the british thought whether the french would really fight the germans and talks behind the scene between the nazis and british. they never want to go to that path again. they don't want to have negotiations about whether there should be armament. this is the security against armament. there's a million dollar additional buyback. that he's asking for. >> it's a very stable company versus a shaky balance sheet of an unstable government. >> you seem to have done a better job of figuring things out over the last few days than we have. >> what did they have a verisimo party that buckled? what is that? >> pdl. >> it's not lipton tea, i'll tell you that much. >> let's move on to microsoft, another company we're watching very closely. apparently three of the largest shareholders for microso

letta survived and silvio berlusconi has been asked to leave. chemicals, technology down 1.3%. utilities are up this morning. the bias is very much to the down side as well with these stocks. as far as bond markets, yields are contained. where we were at the end of last year. gilts yields 2.7%. itali italian's a little bit lower. spanish yields slightly higher. we haven't moved the same way. currencies are in the up trends of the year ranges. dollar dax haven't gone any lower. you mentioned a couple of stocks there earlier. one of the standouts was airbus turning the tables on boeing with its first ever big owing in japan. 318350 jet. boeing trying to get a deal with jet. that's where we stand in europe. thank you. >>> ross westgate. thank you very much. we're going to move the conversation to washington where john harwood is hanging out. we have a lot to talk about. we brought the rise above. i did miss that. >> it's always there. >> john, maybe i'm getting too cynical. i think it's possible we go over the debt ceiling despite everybody thinking we won't. what do you think? >>