story, the first minister of scotland, meeting michel barnier later in the meeting, talking about matt brexiteerse that is language that she should be using —— mad. people are critical of that kind of language these days, she thinks that theresa may is listening too much to the brexiteers. like jacob rees—mogg. too much to the brexiteers. like jacob rees-mogg. we will turn to your paper, henry? the financial times. it is all about italy and the effect it has had on the markets. yes, however bad politics looks in the uk, it is nowhere near the standard cities in italy. to rewind, italy voted for the big winners of its elections as populist parties, people hated the establishment but today they have ended up with a former imf official being appointed the prime minister and leading government. the reason investors are worried is because this will fuel more antiestablishment sentiment that when elections happen again, there will almost have to be a new round, people will be angry as they seemed the president appointed technocrat who does not have a mandate, in his view, to try and steadied the ship.

brexit referendum where an issue over labor immigration turned up. i would be cautious. i would prefer to look at the euro currency. matte going to continue talking about this. think you so much for your input so far. guy is going to stay with us. we showed you some of the banks that are recovering from the big drops that they posted yesterday. here is one that isn't recovering. take a look. the shares are now in paris 3%.ing down the most it is one of the many european banks that is exposed to the italian crisis and is being punished today by investors. this is bloomberg. ♪ matt: quick check. first off on markets, we are 11 minutes into the session. you can see the w m screen behind me. you can get a great overview of what is going on globally. the ibex currently graining -- gaining. ftse up.p, the interesting note i got from a viewer just now, thank goodness for the ib function on the bloomberg. that is the reason for those drops, not investor punishment as i may have guessed before. 5% but that is mostly an extended and move -- -dividend move. you can see bnp down 5.2%. if you buy the stock today, you're not going to

matt: the question is, does the eu play ball or push back? it seems that you has been strengthened almost by this whole italy debacle, certainly in its perspective on brexit able to punish the u.k. to show other nations it is not a good idea to leave the european union. do you expect an olive branch to donald trump? something meaningless like auto tariffs? veryeurope will talk a tough game and eventually, there will be concessions. postures upon steady kind of crisis or threat to it is to really hunker down and get very belligerent about itself. thatwould argue eventually, if there are enough people against the eu, maybe the eu should look at it self and say maybe there is something wrong. from the trade perspective, i think the upper hand is with mr. trump and that will continue for some time. the interesting one is what happens vis-a-vis china. matt: also, the euro is a fascinating part of the story because at the end of the day, tariffs are not -- the euro-dollar rate is key and right now, at 115 -- the euro, almost 117, the euro is pretty weak. where do you expect that the go? trump wants it down. draghi probably wants it down. bob: the fed will conti

brexit. it comes more than two years after the surprise results in the eu referendum. global news 24 hours a day on aaron a tick tock -- and at tictoc on twitter. this is bloomberg. matt italy, the leader of the entrant -- anti-migrant lead has said talks with the five-star movement on a populist government have entered the final stretch. but solving he says the parties are still trying to find the right balance between their two policy platforms. papers are reporting that the two leaders could take turns in serving as premier. joining us is our italy government reporter, john. let me ask you about these two parties. how close are they are platforms anyway? election, everyone thought there was no way they could get together because they were on opposite sides of the spectrum. that was a whole election campaign ago and with two months andthe two leaders, so any demaio have been negotiating, especially in the last two days. they are on talks to draw up a common program. each party is anxious to get its key measures and and so far, according to what we are learning about the talks, five star has got its citizens income for the poor in their at the full rate of 780 euros

matt: absolutely. with the way the market is moving, rates going up and thinks changing. the demand is different from a year ago or post-brexitportant than ever to be shopping for a mortgage and find a great local mortgage broker that can help you get the right deal for you. with rates going up, there are some different options out there and we are seeing that housing is going fast. if you're not going to get a great offer on a house quick, someone will grab it up. alix: is it more floating-rate? mat: it's all most exclusively fixed. bonds rate will be much more relevant in a couple of years, but people are still slow with the subprime thing years ago. david: what are you seeing in terms of credit quality? our people backing off on the stringent requirements? mat: it's a pendulum and swung very tight. it is easing back. i do not think there is some risk that this will become the next big bubble. the mortgage market and all those people did a really great job of putting us in a great position for the mortgage industry. it is not too loose if that's the question. alix: what do you do with mbs? oksana: there's an interesting poc

many seem destined to disappear. beyond the end of the brexit transition period. by the end of 2020. mattndsor. absolutely. already like —— always like this in the uk. the uk. sunscreen because there will be strong sunshine overhead. strong sunshine overhead. 20—22, nothing too hot in the afternoon. afternoon. for any bride up and down the country. country. and a winning forecast today for most. today for most. this is the scene in cornwall are short while ago. cornwall are short while ago. basically high cloud. nothing to spoil a very pleasant spring day. spoil a very pleasant spring day. the north and that has led to interesting contrasts. interesting contrasts. through the afternoon we are into the upper teens. the upper teens. similar contrasts through the coming days. through the coming days. bit cooler along the north sea coasts. the breeze coming in off the sea. the fairweather cloud will melt away. away. ireland and western scotland, with cloud spilling in. cloud spilling in. the grass in the countryside in the morning. morning. tomorrow morning, but quickly warming up. warming up