brexit, trump, matteo renzi.hat happens next in the bond markets will be critical for the policy of the european central bank. this is italian market calm before the potential political and market storm. paul krugman is trying to gain a possible euro prices. what you have is 10 year government bond yields, the best rally in as many months. we've rallied nearly 20 basis points. the spread against germany widens, with action down now 160 basis points. will we retest those wide areas? the risk premium for holding italy, of what happens next, of who is the next leader of italy, is what's going to play out in global markets over the next couple days. talk dei paschi, let's about the risk radar -- how have global markets taken on this new political risk? one has to say that global markets are becoming perhaps just a little bit more, i suppose, sanguine in terms of their ability to assess risk. dear-dollar is testy. what is the next big move? the odds of parity on the euro-dollar have jumped above 50%. deutsche bank is

josephine: first of all, shocking for matteo renzi, as you said. only 2.5 years in office and he is on his way out. what happens now? he is meeting his cabinet today and then he will meet sergio mattarella, who will look to try to get some sort of caretaker government. minister the meeting this morning. this has emboldened the five-star movement. calling for early elections. so, too, is the head of the anti-immigrant northern league. both of them have campaigned strongly during this referendum , and were really strongly responsible for putting together this tide of opposition. it is not only just a reaction to the constitutional reforms, a reaction against what mr. renzi was proposing to downgrade the senate, but also the frustration, the high levels of unemployment and the economic stagnation that are affecting so many people in the country. genie: indeed, and particular younger voters. what kind of role did they play in the referendum? young voters were very significant. 70% of them voted against constitutional reform. what seems to be emerging i

minister matteo renzi conceded defeat and will resign.inister matteo renzi conceded defeat and will resign. let's bring in and shoot -- andrew davis, former bureau chief for bloomberg. a lot of people speculating this could mean the five-star , and anti-eu movement, could take hold here. will have we elections earlier than expected in 2018. there is a chance we could see a caretaker government and matteo renzi would stay in place. the president won now either ask matteo renzi to stay on order to put together another government based on his majority. been a bighis has victory for the five-star. their numbers have been climbing in the polls. they are a very young party, one and mayorships in rome turin. they have been a very effective gadfly. matteo renzi made the mistake of personalizing it, and they jumped on it. tosef: i brought up a chart give our viewers some perspective as to how the market felt ahead of the results. vulnerability of european banking stocks, a shoulder pattern building, perhaps even further downside. what happens next

one is a close advisor to matteo renzi. the other is a professor also thinking the euro will not survive. later, we speak to mario monti, caretaker of prime minister. we have a lot of businessmen. paolo scaroni. we also have linda forester rothschild. we will have plenty more from the day.ughout first let's get the bloomberg first word news from london. here's nejra cehic. nejra: french president francois hollande has made a surprise announcement that he will not run for reelection. the decision paves the way for manuel valls to enter the 2017 race. hollande spoke at a hastily organized address from the palace. the power, being in power, the ritual of power, never made me lose my lucidity. i have to act. today i am cottages of the risks that such a move would have if it doesn't get widespread support. also, i've decided not to be a candidate in the presidential election. i wanted to tell you directly as promised. nejra: president-elect donald trump has picked general james mattis as america's defense secretary. mattis is a

matteo: we certainly have seen that before.legally speaking, he does not have to resign, he is not compelled to do so. however, he placed so much of his own personal political capital on this campaign that he would be expected to do so. >> what happens to the banks either way? the slowburn of italian banking prices has been ongoing for several years and the banks seem to be fudging their way through. is there a full-blown banking crisis? it is not all italian banks that are in trouble. some are, monte dei paschi, the oldest bank of the world, is in trouble. european authorities would be ready to allow the italian government to step in and play outside the rules or play outside the traditional european constraint. france and germany go to the polls. i would imagine berlin and paris would be rather keen to allow italian authorities to do with this swiftly rather than having an escalation or escalating financial crisis spreading to the rest of europe. we have also the austrian presidential election this weekend. we spoke to an inv

this evening matteo renzi drove to meet italy's president and was told not to pack his bags just yet. he will stay at least a week until the annual budget is passed in parliament. cabinet members seemed a little dazed by it all. >> the constitutional reform has been rejected by the people. how could we stay in this format with this government? reporter: it is an inelegant end to a premiership that began with such promise and so many promises. change italyd to and its sluggish politics. he was invited by president obama to be a guest of honor in washington. president obama: i think matteo embodies a new generation of leadership not just for italy but also for europe. reporter: it did not quite work out that way. hobnobbing with the privilege abroad helped to foment opposition at home. when we took to the streets of rome today, referendum no voters told us they had rejected their prime minister, not just his reforms. music to the ears of mr. renzi's political rivals in the popular, and populist, five star movement. >> now we are asking for the election as soon as possible. reporter: is

renzi-- italy's matteo announcing his resignation.ained after coming back from a 20 month high despite renzi'. and trump accused china of currency manipulation on twitter. david: let's go back to the italian referendum. we are going to milan. dan, the first question -- we know what happened. the referendum went

matteo runs a -- matteo renzi is campaigning for yes, but it is more about punishing him.arties like the far right league are not in the eurosceptic movement led by this actor, campaigning for no. reporter: no to constitutional change and no to prime minister renzi. that is the frosty message from the north of italy. this lawmaker is on the campaign trail for his five-star movement, italy's biggest medical opposition group. for him, the referendum is a warm-up act, paving the way for new elections. across to say liberty, the political cabinet has failed us for so long. he is not referring to the italian politicians but also what he calls the european elite. he is a convinced eurosceptic who wants italy to ditch the euro as soon as possible. >> the european people are getting very tired of everything that is going on. it is based on financial and banking institutions. to think about the european parliament, 90% of what they do is to save banks and find a way to make money, go around europe. reporter: this is the message they want to hear. after high debt and stagnation, ita

president asks matteo renzi to hold off on resigning. court --in's highest in order to leave the european union. prime minister theresa may is seeking to overturn the decision. the front -- the french prime announcedanuel valls he will be competing that he ill be -- he would not stand against thousand in that announcement. >> i want to fight during this campaign against the right. program withs, is its old recipes from the 1980's, which they represent as progress. when in fact it is regression. i don't want civil servants to work more to earn less. want them reimbursing drugs. i don't want schools to have less teachers. towns andt want our cities to be deprived of law enforcement officers. down onwant to break social security. waitor workers who have to -- l 70 years old risks being tainted by his disastrous low approval rating. -- rancis prime minister many critics dragged the socialist party to the right certainhth of authoritarian touch with a certain authoritarian flair. they went on to post through controversial working reforms with

prime minister matteo renzi of italy will stay on for the time being. he went to the presidential palace to resign this evening after losing yesterday's referendum to reform the constitution. he is been asked to stay longer to get the budget through policy -- parliament. native americans in the u.s. state of north dakota have been celebrating the decision not to allow the construction of an oil-line. state political leaders criticized the decision while the company constructing the hotline described as politically motivated. president-elect donald trump says he will review the decision when he takes office. >> for the people here in the camp, it is an important victory in a long and emotional battle. >> it has lifted my heart. we came down here from washington state to support these water protectors and we came in yesterday expecting the worst and this is the best news i have heard forever. especially for native people and the native country and all the people of the united states. water is so precious. >> it is great. we will remain here and stay dilig

and unlikely matteo renzi will play any part in this new government.hey need to get the staffs approval by the parliament. reaction thist morning. euroy markets are up, the going up after an initial fall. is going back to levels that we saw on friday. so the market reaction is fairly muted. mark: one of your guests telling you earlier this is now a banking story. what does this mean for a delete's lenders? -- for italy's lenders? first of all it will put pressure on the commissioner and other banks. you are in political turmoil or political limbo, and we don't know who will be the next prime minister, it may make some investors shy away from taking part in the increase. is unclear whether they will be able to raise that amount. i spoke to the first time he was talking to an international network. it was the first time he has been talking since being named ceo. for the moment he says the referendum doesn't change any plans for unicredit. feel unicredit is a strong bank and italy is a country with a lot of potential. let's focus on the medium to long-ter

matteo renzi, there is a plan b, according to the press. the italian treasury considering a plan b for the recapitalization of monte dei paschi. and germany just keeps on producing. manufacturing comes in at 4.9%. the market was looking for barely an inch higher, .6%. it took us three days to recover from the brexit battering in global markets. it took us three minutes for global equity markets to recalibrate and reconsider what is happening in italy. this is your gmm function in terms of the g-20 function. you can see that, as far as emerging markets are concerned, a little bit better. when it comes to the dollar, the rail up, the renminbi -- keep an eye on this. a great flash trade went through. it was saying the renminbi was worth 7.5. print, orerroneous was it an odious message? what is next for the dollar policy from the united states, including china? when it comes over to this side of the trading board, you have copper down, and the rational prices, one of perhaps the esteemed group of researchers in china. saying you have a rational

matteo renzi is still the head of the centerleft democratic party. perhaps there will be elections in june next year. genie: josephine, are the critics right? is this new government a mirror image of the last one other matteo renzi? >> the #photocopy government is going crazy on social media today. really there are few changes. the finance minister stays. moves toior minister foreign affairs. it really does look very similar to the previous government. that is a message that mr. gentiloni wants to send to the rest of the world, that this is a government of continuity. , he told the parliament today that he will be in the government as long as he has the confidence of parliament. that may not be too long. also today, we saw a new poll -- thet showing that democratic government is at 30%. the popular five-star movement is urging for elections as soon as possible before the electoral reforms. it is a volatile situation at the moment. genie: josephine mckenna reporting for us from rome. we have something completely different for you now out of madagascar

i would say more against matteo renzi and his persona. brian: ok.o you are saying it is wrapped up with the person matteo renzi. federica: yes. that's it. brian: ok. ewald konig, what is your take? is it all about the person renzi, or the issues? the complex issues facing italy? ewald: i think it was a very big mistake to combine the result of the referendum with a personal political future of this politician. many politicians in the past has -- have madede this mistake, and he should have learned his lessons, but i could imagine that one day he will have his comeback. brian: ok. so you think it also has to do with renzi, and a political mistake, not so much as personality. let's hear from the people in italy, and what they said about a referendum that saw a large majority, about 70%, say no to calls for change to the constitution. >> the fact that the no campaign won says an important signal. people have had enough of budget cuts, and enough of the neoliberal policies of renzi's government and those who came before him. >> we won, and that's great.

that brings me to the future of matteo renzi's career. this is where it's so important for the economic financial heart of italy. matteo renzi has stated his career on getting people to vote yes in this referendum to get the new measures that he needs to empower his party past parliament. he said that if people do vote no, he may well have to step down even if he doesn't -- across cities like this and the rest of italy is that he could see his power base eroded by pop list movements like the five-star movement and it will throw italy back to another state of turmoil that it's used to. >> as you talk, nina, we're seeing a live video of mr. renzi right here looking to be at a polling place. in florence, italy. we're watching that as we speak with you. nina, you're our financial expert. so what could a no vote mean to the economy there? italy has not been able to get it going and banks are very much in jeopardy. one in particular. >> i'm glad you mentioned the banks, natalie. what matteo renzi put on the table in terms of the essential quest

defeated, matteo renzi pretty got defeated badly. do not care that much, or does the president of the republic have a good handle on this? yoram: friday i thought it would not have either way a major implication on the markets. the issue as far as italy is concerned is more longer-term. that is what is at stake, but right now this is a democratic decision that has been made. obviously we have to accept it and move forward. the prime minister announced he and we will have in short-term a new government. francine: do you believe we will go to a closer or quicker general election in the next two months? yoram: the decision maker on is on the partns of the president of the republic. the call for an immediate election -- we will see. lots of moving parts. there is an electoral law which the establishment or the people in power at the moment are trying to change very quickly. activity put at risk as a backlash? you have the establishment saying you did a lot of things do not quite work now, and the establishment is holding onto power, so i

renzi-- italy's matteo announcing his resignation. muted markets, the european stock gained after coming back from a 20 month high despite renzi'. and trump accused china of currency manipulation on twitter. david: let's go back to the italian referendum. we are going to milan. dan, the first question -- we know what happened. the referendum went down. what is next? dan: what is next is that we have reported that mr. renzi, according to one italian news agency, has already met with the italian president. he has to formally submit his resignation and then resolve this political crisis, turning it over to the italian president, who will hold probably two days of political consultations with the leaders parties's political before deciding on a mandate government for the country. david: a lot of focus was on the italian banks and what this would mean for the italian banks. do we have any sense of the answer to that question? there aretle bit, but still a lot of unanswered questions so far. , the world's oldest bank is in the midst of a 5

in rome for more on matteo renzi's referendum. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn in new york. nejra: from london, i am nejra cehic. vonnie: a look at some of the biggest business stories in the news. recalling 680 thousand cars most in north america. there are potential seatbelt problems in some versions of the ford fusion and the lincoln mpz. ande have been 2 accidents 2 injuries linked to the problems. mercedes-benz on the verge of becoming the best selling luxury car brand in the u.s. sales of these sport-utility vehicle more than tripled. luxury car in the u.s. for the last years. goldman sachs for lending guidelines according to those familiar with the matter. the review could tie to a deal that has been arrange for the $4 billion buyout of ufc ultimate fighting championships. it came after the bank appealed an earlier risk warning from regulators. the fed had concerns over accounting adjustments that inflated adjustment for the next martial arts promoter. that is your latest bloomber

matteo renzi stepped down this week. sergio must decide whether to appoint a transitional government to serve into the elections in 2018 or two more fresh elections, something being demanded by some of the populist and right-wing parties in parliament. mckenna told us what was happening in the talks earlier. >> the president began the talks today with the two parliamentary leaders, the leaders of the senate and the lower house as well as the former president, napolitano, who had to weather a few political crises of his own. he want to press for this parliamentary term to run until it is concluded in early 2018. that is an ambitious prediction at the moment. that does not look like it will happen. what are his options? he can put together some sort of multiparty national government or. apoint matteo renzi third option, which is to put together a candidate for a caretaker prime minister. he is understood to be under pressure to try and resolve is in the next few days with the european council meeting next week, and don't f

they are well-paid paid, and matteo renzi was trying to clean them up.arty campaigning for the status quo. that is what we have. haidi: italy has had something like 63, 64 governments in 70 years. the caretaker government proceed with these reforms? >> the reforms remain to be seen. again, the parliamentary system does not work very well in italy given the way the senate is structured. we will get a caretaker government, the finance minister is well respected, a technocratic government. something that is common in italy because the system is so completely dysfunctional. caretakerwe get a government and elections earlier than they would have been. we will probably get elections in 2017 come about the italy heads the g7, so thaey need a government in place. rishaad: that's all we have time for. >> this really is in about a threat to europe, but the reform has little to do with the european union. heightened sensitivities given that this is 2016. let's get to first word news. rosalind: more political headlines, john key says he will stand down as leader and

a distraction with rome demanding more time to rescue monte dei paschi, as former prime minister matteo renzi officially resigns following the failure of his referendum. >>> tui travels higher as the tourism group's full-year core earnings growth gives the shares a boost in early trade. >>> the gamble doesn't pay off for uk betting firms as the stocks sell off on a report that mps will demand stricter controls over certain betting machines. >> good morning, everybody. welcome. we're being told today is the most important day of all time for the ecb. >> it's always the most important day. >> exactly. european equity markets gearing up for the most important ecb meeting with a slightly higher attitude. up by a quarter percentage point

. >>> checking the markets, the euro fell sharply against the dollar after italian prime minister matteo renzi said he would resign afterveryone here has come to say good-bye. >> translator: i just want to convey my appreciation. thank you for giving me the chance to enjoy beautiful landscapes. >> translator: i think i will feel empty without the railway. i wish this many passengers had been onboard every day. >> reporter: there have been fewer and fewer passengers on the 16 kilometer section so the railway company decided to shut it down. when the route went lines, but currently only these ones are running. in november, the railway company announced 13 sections becoming too difficult to sustain. together, they add up to 1,200 kilometers, about half of their firm's entire operation. shutting them down would have a huge impact on the people who live across the region. >> translator: i need train service for my hospital visits. i have no idea how i can manage with new means of transportation. >> reporter: and residents aren't the only ones v please stand byn in other parts of japan. the pu

italians will decide whether to back prime minister matteo renzi 's constitutional reform or not.promised to resign if he loses. there is a lot at stake. it is the third biggest economy in the euro region. it could put massive pressure on the banks. voting will begin in a few hours. deciding will he between a nationalist and a liberal university economist and their election as well. the freedom party leader built his campaign on anxiety over immigration. green party candidate campaigned on liberty. -- turkey'sresident president says that his enemies are speculating on the stock market. let's get more detail on the story. his is not the time that erdogan is playing the blame game. how seriously should investors take his comments? he has been on fire verbally before. right.re when anyone would call for an increase, for example he has been blaming -- how seriously should we take at this time? is very interest inc.. he said on the interest rate -- it is very interesting. he said on the interest-rate front, i know i'm alone, but i will keep fighting. indicate that he does not have more

matteo renzi confirming he will resign today. after suffering a resounding defeat in a referendum sunday. his plan to reform the constitution rejected by almost 60% of the voters. let's go live to milan and bring in nina dos santos. this comes as a shock to some, but not others. >> reporter: 60% of the people eligible to vote voted no. even the 40% who opted to back matteo renzi and the plans will not be shocked if you speak to them as well. the turnout was significant here. alison, we are talking about a turnout of over 70%. a covered a couple of elections here into italy. that is the turnout politicians wish for in the course of a general election. it gives you an idea of how passionate these people were about vetting it down. this is more than that. it is about matteo renzi himself and what he has and hasn't done to shore up the economy. that brings me to the building behind me. the italian stock exchange. shares in the building are down 25% this year and continue to suffer in the run-up to the referendum. when it comes to the

matteo renzi was known as demolition man. he pledged to kick start italy's economy. well, he's been demolished by the referendum and kicked out of office. he will formally resign this afternoon. after a really stunning defeat, 60-40, not even close, a hull of anger from italy's 33 million voters who have seen ten years of economic stagnation, so there will be a bit o a financial and political crisis in italiment here in austria, the populist wave was stalled when the far right candidate failed to win austria's presidency. there was a sigh of relief from europe's leaders, but that is short lived. there will now be elections not only in italy, but the netherlands, france, and germany. another test of whether the populist wave that we've seen, of course, in the united states and in britain, will continue to sweep across the west. >> we'll continue to follow it. bill neely for us in austria. kasie? >> back in the u.s., reince priebus and vice president-elect mike pence are defending donald trump's claim of voter fraud in the election. both men were asked about a tweet th

but within a few hours, that was swept away by matteo renzi's defeat. now in europe they are trying to play this down and say it was just italian government politics. it's not. this is part of the populist wave sweeping across the west. we have seen trump, we have seen brexit and now mr. renzi is the latest domino to fall. frances? >> we'll continue to see backlash from it. bill neely, thank you so much. >>> and just hours ago, the nobel organization says bob dylan has provided a speech to be read in stockholm, sweden. but it is not clear who will be reading the speech submitted by dylan. the music legend is still not expected to attend the event in person to receive his award. dylan claimed pre-existing commitments prevented him from attending. stay tuned on this one, i have a feeling it's not over yet. >>> still ahead, one of the greatest bands in the world honored. we'll have details for you next. >>> and check out this incredible lightning display captured saturday night in brisbane, australia. just significant to see on video. >>> and we'll bring i

of sleep last night, but as you pointed out, a resounding, deafening loss here for prime minister matteo renzi. his response perfectly clear in the small hours of this morning. >> translator: i lost and i say it loud and clear, even if i have a lump in my throat. because we are not robots. i wasn't able to win. i begged you to believe that i did everything i thought was possible at this stage. >> reporter: so even though the result was expected here, there were a few surprises. voter turnout was incredibly high, above 65%. that's far higher here than the last general election in italy. also the win for the no-camp here left renzi with 0% space to move. he did announce he would resign later today. and now we wait for that. what next? he goes to resign and hands in his resignation to the president. the president can accept it or reject it. if he rejects it, prime minister renzi stays at the helm and then has to face a confidence vote to come at the back end of this week. but given the overwhelming negative sentiment against him, it's tough to see him pass that. if the president has expecte

let's get to the story, matteo renzi said he'll resign. nearly 60% of voters rejected his proposal. renzi this afternoon will meet with his cabinet one last time before tendering his resignation. speaking in the early hours of the night, the outgoing prime minister says he takes full responsibility for the defeat and that he leaves with no regrets. >> translator: it's clear that my experience in government ends here. tomorrow afternoon i'll meet with my government and thank my colleagues for this extraordinary adventure, tight-knit and solid team and go to hand in my resignation. >>> let's go out to julia covering this story for us live from rome. julia, not an entirely unexpected outcome for this referendum, but what is the reaction on the ground? >> reporter: not unexpected at all, caroline. it was just a case of whether or not we could believe the polls that you quite rightly pointed out a resounding definite rejection of prime minister renzi and what he was trying to achieve here. the best way to express this is the image captured by the press here. this is a left-leaning paper.

made d matteo renzi says he will quit if the proposed reforms are rejected.n austria, voters there could elect the man you see here. he would be the first far right head of state in western europe since the end of world war ii. let's talk more about the political ramifications of the votes. nic robertson now joining us live. so we have seen these shifts, we saw a shift that happened in the united kingdom with brexit. there was a shift that happened in the united states with the vote for president-elect donald trump. and now we're seeing things happen in europe that could indicate a similar shift. >> and i think if you look at matteo renzi's campaign in italy to try to get the country to accept political reforms that are only linked to italy, that are not linked to its position in europe, that are trying to sort of improve the economy of italy, this perhaps gives us a very big clue for why this is happening this particular time. since the economic crash of 2008, a lot of people have felt that the economy has been hurting, there has been stagnation in italy, re

the political turmoil following matteo renzi's political resignation -- shares ended up over three percent on monday. >> the clock's running on as the told's oldest bank struggles keep its head overwater. after request for an extension was rejected by the european central bank, the lender said it would real than a debt for agree slot where investors can treat 2.4 billion euros of bonds per share. it is a last ditch effort to avoid a state bailout, which could have far-reaching repercussions across italy's already shaky financial landscape. >> you give the sense the bank has taken to say the time is over. even markets can put money if they wish to put money. or in some way a solution has be defied in some way. quick thinkers fear of state intervention could trigger a phenomenon in the it sector. officials assure the situation is under control. there will not and not be an italian banking crisis. if there will not be european financial crisis. i stand firmly on this point. we have every capacity to deal with the situation. both inill be handled italy and in europe. failing to raise funds cou

that means matteo renzi will not play any part in the administration. and of course, you have the opposition, the populist parties, including the five-star movement, asking for fresh elections. it does not mean we will get them, guy. however, the situation is much more uncertain than the markets thought. matt: to be fair, we are looking at the 10 year yields that have doubled in three months. so, that looks like they priced in something for sure over the last three months. it is noter hand, unusual for italy to get a new government. 63 since world war ii. they must have a game plan. >> right, they have a game plan in that you tend your resignation. and the president with him decides what the next action is. the main problem, matt, is there was a change of the electoral law. now, it is basically a two party system. those parties battle it out, giving mainstream politicians reason to worry that the five-star movement, or another very populist party, could come into force. what is changed if you have this electoral law. if you do not reverse it, the situat

german dax of 1.7% and matteo ben c. #-number-sign and uncertainty remains. cheryl: analysts and fed boosted the major selloff that the major selloff that the vote went to a resounding no for italy. take a look what's happening with this market futures. that's outputting higher pay 81 points. s&p up nine, nasdaq up to 26. cheryl: it will search last week of 12% last week and moving to new highs we haven't seen in some time over years. 50 to 12 a barrel up 1% right now. cold calling back the gold has been down for weeks and about losing 10%. today it's down $11.5. cheryl: commodities to want to watch today for u.s. markets because it's all about the dollar. the dollar trading against key currencies including the euro down substantially against the dollar at a 20 month low. the same saying we could see prior between the dollar in the euro. currencies around the world. trade to no doubt. right now 2.41%. cheryl: well, besides the political people in market, also watching for officials who fight the fed's december meeting. the new york president will speak in new

a distraction with rome demanding more time to rescue monte dei paschi, as former prime minister matteo renzi officially resigns following the failure of his referendum. >>> tui travels higher as the tourism group's full-year core earnings growth gives the shares a boost in early trade. >>> the gamble doesn't pay off for uk betting firms as the stocks sell off on a report that mps will demand stricter controls over certain betting machines. >> good morning, everybody. welcome. we're being told today is the most important day of all time for the ecb. >> it's always the most important day. >> exactly. european equity markets gearing up for the most important ecb meeting with a slightly higher attitude. up by a quarter percentage point on stoxx 600. asia gaining overnight. a wall street rally. europe higher for the fourth straight day in a row. looking at the main european equity markets with the main europe europeans trading in positive territory. somewhere in the region of a half percent or so. the sectors, just briefly showing you what's going on. media, autos and telecoms trading highe

italy's prime minister, matteo renzi, was known as demolition man, and he pledged to kick start italy's economy. well, he's been demolished in a referendum, and he's being kicked out. he'll resign this afternoon after losing a referendum, and not just losing it, but losing it by 60% to 40%. it was really a howl of protest from italian voters against italy's stagnant economy. there was some evidence that this was part of that populist wave. what happens next? well, it's widely expected there will be a financial, possibly even a banking crisis in italy. certainly there will be new elections and a political headache for the leaders of europe's establishment. they had been heaving a bit of a sigh of relief after the result here in vienna when a far-right candidate, norbert hofer, who had threatened to become the first far right head of state in europece defeated in a straight vote. but as i say, that sigh of relief didn't last too long after the vote in italy, which really does give europe's established leaders a bit of a headache. ayman, frances. >> bill, thank you. >>> a lot of developmen

italian prime minister matteo renzi resigned after voters rejected his proposal for constitutional reform. renzi said the reforms would have cut italy's bureaucracy and made the country more competitive. the defeat is seen as another boost for the populist movement. on the heels of donald trump's victory in this country, and the brexit vote. >>> in austria a center left candidate easily defeated his right wing challenger. alexander van der bellen was up against far right populist norbert hofer. hofer hoped to tap growing anger. >> i think some of the right wing supporters feel supported by the trump election. they feel like, oh. if the u.s. can do it, we can do it too and finally be against this detriment. >> germany's foreign minister called the win a good sign against populism in europe. >>> the prime minister of new zealand is stepping down. john key is resigning after eight years as new zealand's leader. he said he wanted to leave while he was still on top of his game. >>> and fidel castro is now in turn in the city where he declared victory in cuba's revolution. raul castro placed hi

talk to us a little bit about the opposition to matteo renzi. who are they?d groups that have little common ground aside from the fact they oppose matteo renzi? lorenzo: exactly. the opposition is very much fragmented. the reforms tot go beyond what he is proposing right now and some others want to oppose completely the reform. i think if this proposal fails to get the popular vote, it would be extremely difficult to come up with a different proposal. if you want to talk about constitutional reforms for the next 10 years. joe: the referendum is to streamline the creation of laws. let's say it does pass. what is on the reform agenda for this government with the new ability to get things past? what is the task ahead? lorenzo: first of all, the next elections are in the spring of 2017 unless there is something very that forces -- very disruptive that forces early elections. i think if the current government of matteo renzi goes to elections and they win the election, they have an outside majority with a majority of seats in the lower house, which would be the on

in many ways, that is what people wanted to be heard on more than the constitutional reforms that matteo renzi proposed. what you'll often hear from people on the streets of milan, rome and other parts of italy is this was a protest vote. renzi chose to make this personal. and that's one of the reasons he had to fall on his sword when he chose to say that he would resign if he were to lose this referendum. he lost by a wide margin. and as you so rightfully pointed out, he had to go and he went very swiftly. from here, a political uncertainty looms and there may be various options for the president on the table. we'll have to see over the next few days how that pans out. and that's something people in the stock market behind me will be keeping a close eye on as well as across boardrooms and banks across this country. >> nina, let's just bring up those numbers again. we do have them. you can see there that milan is down just over 2%. the ftse 100 down just over 0.3% there. but let's just go back to the reasoning there. but why italians would vote against reform and downsizing the centers a

what's your reaction, first, to this stunning defeat for matteo renzi, the prime minister 6 italy? ago. president obama hosted a state dinner in his honor. the final state dinner. clearly trying to help him. didn't work. >> of course, wolf. i cannot speak for italy, but seems to me, yes, he suffered a defeat on a reform issue. but i wouldn't overdramatize this. italy is a resilient democracy, even if times prime minister had changed. it will not spill over into other countries in europe. >> and what about germany? angela merkel is up for re-election, fourth term, if you will? how much has the dramatic changes in britain in italy, elsewhere in europe, impacted germany? >> well, there will be elections next year. there are ten months to go. that's an eternity in politics. chancellor merkel still enjoy as high pop lamularity of 54%. she's in a strong position, but we also have a populist party from the right which scored quite well in regional elections. not represented in the national public. >> they want germany to leave the eu? >> more anti-immigrant party. the consensus in germany

what happens to matteo renzi? it's his political career over or could he make a come back later on?: i think it is incredibly likely that he will be back. he is only 41. he has a long career ahead of him. i think he will be back in the next election. the end ofhappens at this legislature in may of 2018, or it might happen early. they might have a snap election in q2 of next year. either way he will probably be a big player. joe: what is your assessment of the next steps in italy? when is your guests for when we will see a new national election in italy and how would you handicap that race at this point? megan: the first thing they need to do is choose a new prime minister and i think either technocrat or more likely some candidate acceptable to the entire centerleft party would be instilled. most likely candidate would be the finance minister. that would be positive for those worried about italy's banks, since we have in dealing with the banks for quite a while. once you have a prime minister at the cable try to reform the electoral law. somewhere in the middle of next year we might

italy's president asked matteo renzi to remain in the top spot for a little longer, but will monte paschi get more time to complete its capital increase? and finally, when court and qatar sovereign wealth fund join forces to purchase an $11 billion stake in rosnet. is ivan glasenberg back in deal mode, matt? matt: absolutely fascinating story, that. of course, global markets are going to be captivated by mario draghi, but it what deals are going on in oil. at 1:45 p.m. local time in frank for and at 2:30, when he holds his press conference. the three main things to pay attention to from draghi will be number one, how long does he qe program and how much will he spend? will the hold out 80 billion euros a month? how will he buy bonds in countries where he has already reached the limit? he will hit the limit in germany by midsummer at this pace, which he will if he extends at the rate he has been buying so far. number three will be, how will he taper? when is it going to start? how will the pasth be, shallow or steep? investors will be looking at all of that very closely. guy: we will be lo

matteo renzi formally resigned late yesterday.he country's president still will not let him leave. he said he will delay accepting the resignation as he begins italy's main political parties. randy is stepping down after suffering defeat in sunday's referendum on constitutional reform. obviously have to go through an internal transition which i think will be hard. it will be very hard as we have to be transparent which is needed for great democratic party to stand out but that, in my opinion, that will need to come after we tackle the process of government that is about to formally begin. michael jordan has won a partial victory over usage of his name in china. the countries -- he has the right to the characters that translate his name into chinese and he is a well recognized person. the court denied his claim to the company word, selling sportswear under that title. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg. i am angie lau.

the latest there as we await what looks like it is going to be the resignation of matteo renzi today.what is the latest on that? >> there seems to be some optimism in the market about the potential for the state to step in. there has been reporting that the state has a plan in place theirpossible stepping in -- stepping in and the markets seem to be rallying around the italian banks which are basically up. it is more optimistic than it felt two days ago but this story has a lot of twists in it. >> we will be here to tell you all about it. michael is telling us all about what is happening among banks. julie: investor mark mobius give some perspective on the u.s. dollar. mark: live from london, i am mark barton. counting you down to the european close, six minutes away. julie: i am julie hyman. templeton emerging markets -- emerging markets group says the currency has surged to the highest in more than a decade. asked what a donald trump presidency would mean for the currency? >> i think in the short-term the dollar isn't getting stronger but in the longer term, i think the heavy spendi

renzits to know if matteo will agree to be reappointed. defense secretary ashton carter says the u.s. will stick by afghanistan for years to come. he spoke at a joint appearance with the country's resident during his final visit to afghanistan as head of the pentagon. >> we not only continue supporting our afghan partners, but continue our counterterrorism mission well into the future to ensure no terrorist group can seek safe havens, such that it can threaten the stability of afghanistan, the u.s. homeland, or the coalition. >> this was his last planned trip to afghanistan before handing over responsibilities to his designated successor, james mattis. john glenn is being remembered as a war hero as the american who was first to orbit the earth. the last survivor of the original mercury seven after not. his flight revitalized the american space program. he spent 24 years in the american senate. he ran for president in 1984. at the age of 77, he became the oldest person to go into space. he was 95. global news 24 hours a day, powered by mor

what i would say it is not as clear-cut as some anti-establish thement vote against matteo renzi. remember this should have been a domestic political issue. do you want matteo renzi threatened to resign if the people vote no, it has become about him, despite the fact that he tried to back pedal. it is is about renzi versus all the other parties. i can tell you he has been furiously in the media the last 48 hours saying, look, an vote no is the establishment in this that has kept italy in the doldrums the last two decades. he is trying to invoke change. but people are telling me they are scared of consolidation of power under one party. that is what is confusing about this vote because a yes should favor parties like the five-star movement. ultimately it would help them being able to get some kind of majority. yet they are pushing for no. why? because they want representationy to step down and they want to see elections forced here. i spoke to a prominent one, the deputy speaker of the lower house. and i asked him about the banks, the achilles' heel of italy and what the five star

but italy's voters chose to sack matteo renzi, handing him a withering defeat.ast couple hours he offered his resignation. it has not been accepted yet. so while we wait to see how that plays out, italians fed up with the eyou you might be -- eu might be getting ready to say good-bye to the euro. this matters to your money. italy is europe's fourth largest economist. joining us via skype in ireland the former u.s. ambassador john bruton. he engineered the so-called celtic tiger economy. you have real chops here, sir. thanks for joining us. are we looking at this thing, those crazy italians changing their government for the 58,000th time? i have to ask what happened in italy concern our investor audience here in fox business? >> it does not short term. italy has a long-term problem, their economy is growing too slowly. their government debt is capable of being testified but it is too large. they have to restructure their banks but there is time to do all of those things. this would have been better if prime minister renzi was able to continue with a stable govern

reporter: it has been matteo weeks, tontra for reassure the markets and bring investors back to the country. the financial markets we say we have always received a message that structural reforms are the principal asset of the future. reporter: the country's banking sector, italian lenders are straining under a mess of bad loans worth 350 billion euros, roughly 1/5 of the country's economy. italy's third-largest bank has lost its vices the beginning of the year. quickly raise 5 billion euros from institutional investors. investors might well hesitate to step in. >> the stability of the government and dominant party is beneficial not only to employment prospects but to attracting greater foreign investments and create jobs. happens, political instability will likely lead to economic instability. >> uncertainty has been weighing on the global market for the rest of the week. european indices closing down this friday. stronger losses across some of the other indices. 'ster francois hollande announcement he would not seek reelection. a pretty choppy trading session on wall street. downajor indi

. >> italian prime minister matteo renzi says he would wait in the -- quit in the early hours of thisning after losing a referendum. he called to push constitutional changes. >> i think the expectation that the result of this referendum would have a disruptive impact on italy and possibly even on the eurozone. even on there -- eurozone, i think were grossly , exaggerated, frankly. it was not comparable to the brexit referendum or even to the vote in the united states, which was indeed signaling much more fundamental political change. >> what would you be asking of the new government of italy? >> it is clear that the new government absolutely continues to process reform. we have significant public debt. but not in such a difficult situation as in 2011, where 50% of the debt was in the hand of international investors. today, only 30% is in the hand of international investors. it is not so huge like in 2011 so, but they have to continue the process of reform. and to add a reform on the recovery, that absolutely must be completed. >> donald trump turning up the heat on boeing. in a tweet,