neither of the party leaders vini and luigi dimaio want to allow the alpha to become prime minister. this week could bring about a stock change in italy's and europe's political climate. formula one now at the spanish grand prix mercedez made clear there the team to beat this season in previous races ferrari and sebastian fatso had made their mark with a clever pit strategy but in barcelona on sunday defending champion lewis hamilton turned the tables on them. the world champion flexing his muscles lewis hamilton started from pole and left the competition in his tracks even during the caution period following this crash by roman grose the briton kept his cool. first suggestion fettered on the other hand it just wasn't his day his ferrari team's choice of tires didn't work out and the german had to be satisfied with fourth place. hamilton crossed the finish line unchallenged for the sixty fourth grown prieto of his career. these guys have done an amazing job and is really proud of everyone and today the car and myself the city today which i had been feeling for the whole year so it's

i did -- luigi dimaio also commented last night to answer some critics, here what i did mayo said >> there will be a political government it will be a government that puts at the center political questions. maybe i want to say also on an international level, let us get to work first and then criticize us you have every right to do so but let us start first >> the challenge for any prime ministerial candidate here is marshaling these different political forces and trying to enact any kind of real agenda. >> yes when you look at the market reaction there are concerns among investors about that as well >> we are joined by valentin marinof from credit agricole great to see you >> great to see you again. >> a lot of concerns around italy. on the equity side we see a bit of a rebound, but looking at the yield environment, you're looking at the euro what are you watching in terms of the next steps of the coalition talks >> it's about the fiscal -- first of all, the ability of the populist parties to form a government you mentioned the uncertainty hanging over the president's choice he may w

neither of the party does vini and luigi dimaio want to allow the alpha to become prime minister. this week could bring about a stock change in its lease and europe's political climate. to sports now and for it to not just hold off our champions of the bundesliga second division after a three two win over nuremberg they snap up that title on the last day of the season both teams are a lot at sixty points in the standings heading into the match and they knew that victory would deliver the championship and it was disallowed or few held their nerve nuremberg won't be too disappointed though they'll have a chance for revenge next season when the two teams play in the bundesliga first division. and saturday's action hamburg were relegated from the bundesliga after a record fifty five years in germany's top flight and fifty seven thousand spectators watched the final game of the season in the hosts took the lead early through an early penalty who was hold the sport hamburg second to finish off a two one victory over much of that result elsewhere in the league meant that their fate was s

star movement that's kind of the left wing movement grillo used to be the head of it now it's luigi dimaio and then the northern league which is the far right with me very anti immigrant and very far right northern league they're trying to form a coalition government but one of the things on the on the table is actually a parallel currency for italy and the thing that's remarkable about this is that there's actually a lot of print media about this leading up to the election so from the last year like all the major parties of italy bar one which is the five star movement wanted an alternative currency parallel currency to the euro an order to bring liquid.

usually after winning elections political leaders want to become the prime minister why don't luigi dimaio and mattel salvini from the two respect of a populist parties want that job. but in this case you have two alpha males who had to find a compromise in order to form a coalition and a government luigi but he was having a bose said in the complainant after the election they want to be prime minister but they couldn't because the other one said no i don't want this guy so they had to find a compromise and but they also say it's not about persons it's not it's not about the coalition treaty and david push through with that agenda regard his who is leading the country and they're now italy's finances is well known that they're in complete shambles some of the highest debt ratings in europe politicians in france and germany are very worried that this new government will be ripping up italy's commitments to europe on debt is that what's going to happen. well the public is promised italy first they don't care about the europeans and they they don't care about even the markets the spread is go

star movement that's kind of the left wing movement grillo used to be the head of it now it's luigi dimaio and then the northern league which is the far right with me very anti immigrant and very far right northern league they're trying to form a coalition government but one of the things on the on the table is actually a parallel currency for italy and the thing that's remarkable about this is that there's actually a lot of print media about this leading up to the election so from the last year like all the major parties of italy bar one which is the five star movement wanted an alternative currency parallel currency to the euro an order to bring liquidity and credit into the italian market because nobody wants to lend to them we've seen this movie before called greece yes they went through the exact same thing for the exact same reason that they had an inflationary boost once the euro was introduced and then they got the trouble because they were borrowing money at the same rates as germany and they in debt of themselves into crisis and now that's moved over to italy now of course italy

yes because the party leaders themselves, luigi dimaio from five star and matteo salvini from the leaguend often you find italian politicians simply recycle themselves through several administrations, under several parties and know you have to have some give—and—take. the populists say their mandate is different and they want to do things differently but essentially, the president might have set up their entire election campaign if early elections are to be held because they will now be able to go to the people and say, "look, we were right, we warned there was an italian and eu establishment trying to stop us from taking power and stop the will of the people and now we see that the president vetoed our government". by accident, possibly, italy's president has handled them an election campaign. do you think that is where we are headed now, more elections? it looks like it. what is the alternative? the stopgap prime minister appointed by the president may not get approved by the populists. most newspapers said this morning we will have do have early elections. bear in mind, italy does not

five star movement that's kind of the left wing movement grillo used to be the head of it now is luigi dimaio and then the northern league which is the far right with very anti immigrants and.

five-star movement leader luigi dimaio said he is willing to work to resolve this political crisis >>lator: we still want to go back to the polls as soon as possible we're willing to collaborate, including with the president we want to be coherent but collaborative in order to resolve the current crisis it's certainly not a crisis we caused if the markets are worried italy could leave the euro, that's because someone has been saying this government wants out of the euro despite that not being in our plan >> the budget commissioner that apologized after suggesting the reaction of financial markets would show italians how to vote in any future election he issued a statement saying he fully respected the will of voters being left, right or center, and in every country oettinger's comments sparked criticism from mateo salvini who called for the commissioner to resol resolve. >> translator: this mr. oettinger today in strasburg said it will be the markets that will teach the italians to vote better you can see the disrespect for democracy, liberty, free choice, free thought and the free ch

what we've heard from both luigi dimaio calling this a historic moment, also mateo salvini, the head, saying conte would have full autonomy when it comes to making his own decisions, the challenge for this man now is trying to implement these dozens and dozens of different policies, many of them complex and not welcome patible trying to make them into legislation that will pass through parliament and be put into place by his own government. there will be a massive challenge for giuseppe conte and all of this while he faces criticism in brussels talking about this huge debt pile that italy faces, 132% as of 2017 they need to get that down significantly. given the plans they have to slash taxes a two tier flat tax, given the plans they have to provide universal basic income, this this will become challenging for them to do that given that challenge borrowing from creditors at a time when the ecb is potentially going to end its era of easy money, sri >> i'll pick up here, willem looking at the italian market moves. there's a degree of relief here. what has changed because initially peop

turned out not to be the case last night after the meetings with sergio mattarella, we heard from luigi dimaio that they needed a few more days to hash out an agreement. >> translator: we are satisfied with the atmosphere of these talks. mostly for the points we're agreeing upon. the unemployment earning, pension reforms, cuts on public misspending, these are issues of great importance as well as public goods like water management, fight against corruption and imprisonment for those who dodge taxes. >> his counterpart, the leader of lega, mateo salvini he said things less optimistic about talks. he specifically wanted to stress the differences between the two sides. >> on migration, the position of the league and the five star movement are different, both respecting human rights and international treaties i say this as a father, i will not allow a new summer and autumn arrival of migrants and the illegal migration. if a new government is formed, the league will have to have a free hand of protecting italian citizens the law on weapons and self-defense another delicate issue, we have to find an

waiting to see whether that was going to be a run or a new government proposed by those parties now luigi dimaio soon after that on a video live streamed on facebook said he could envisage some sort of compromise perhaps suggesting a different economy minister but the leader of the league matteo salvini while he didn't react directly has been sticking to his guns saying that that must be the government otherwise there should be elections as soon as possible he stands to gain the lead have surged up to around twenty five percent in the latest opinion polls five star steady on around thirty percent so it's possible if there were fresh elections that they could be the biggest two groups but whether they'll be prepared to work together again is not certain right now we don't know if it's really will go back to the polls or who will lead its next government. eisel fighters have attacked the afghan interior ministry headquarters in the capital kabul police say a car bomb was detonated at the entrance and then several attackers managed to get inside the compound is the latest in a series of attacks tie

star movement that's kind of the left wing movement grillo used to be the head of it now it's luigi de dimaio and then the northern league which is the far right with very anti immigrants and very far right northern league they're trying to form a coalition government but one of the things on the on the table is actually a parallel currency for italy and the thing that's remarkable about this is that there's actually a lot of print media about this leading up to the election so from the last year like all the major parties of italy bar one which is the five star movement wanted an alternative currency parallel currency to the euro an order to bring liquidity and credit into the italian market because nobody wants to lend to them we've seen this movie before it's called greece yes they went through the exact same thing for the exact same reason that they had an inflationary boost once the euro was introduced and then they got the trouble because they were borrowing money at the same rates as germany and they in debt of themselves into crisis and now that's moved over to italy now of course ita

certain of endorsement by luigi demaio of the anti-establishment five-star movement, and to be leader of the anti-immigrant week. these two gentlemen had proposed him. they said dimaioaybe back in the running. -- may be back in the running. kevin joins us from rome. was proposed as the new prime minister, that there were doubts about his candidacy. what is wrong with him? probably inflicting his academic credentials. s resume is super long and a lot of points are being questions. a lawa political novice, professor with no experience in italian politics or running a government administration. what do we expect to be done, appoint him as prime minister with contingencies? does the president have the power to do that? kevin: the headlines in all the papers today are conte and his resume. we can assume the president will take the time to make sure he makes the right decision. there have been expectations of an announcement today. powers inrly strong this area and will not just let anyone go through. in, thank you, with the daily update on italian politics. simon, our chief currency strategist at bny. let's talk about contagion. to what extent does this remain and italy