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

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

let's start in italy, were italy is waking up for this incredible defeat of matteo renzi that led to his resignation. >> let's start with the left-wing daily. they, like the majority of italian papers, are leading with a photo of sunday night's announcement. renzi is indeed stepping down. ae no vote won, and then i lost, andrenzi -- " it is my chair that got the chop." he wanted to slash the number of senators from 315 to 100. but as he admitted sunday, the only one losing their seat is in fact him. genie: how is a more centrist paper reporting this news? >> it essentially argues that the main mistake renzi made here was holding a referendum in the first place. in most major yes-no votes that have taken place recently, the people chose the opposite of what the government wanted them to do. there is the brexit vote in the u.k., and the failed vote in colombia. renzi overestimated his popularity and underestimated the position of nontraditional parties. genie: "the guardian" argued that those nontraditional parties might not do as well out of this result as many protected. >> europe's f

renzi-- italy's matteo announcing his resignation. ined 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

as they knew they won last night, no voters demanded the resignation of their prime minister, matteo renzi. he was listening. the first italian premier, he claimed, to take political responsibility. pm renzi: i lost, and i say loud and clear, even if i have a lump in my throat, i wasn't able to win. long live italy. good luck to all of us. reporter: dramatic exit, stage right. except it wasn't. 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 o

investors coming back to terms with prime minister matteo renzi's pending departure. decision to quit his post after his proposal to rein in the power of the senate was emphatically rejected. let's get to francine lacqua as renzi plans to hand in his wreck is -- hand in his resignation. what we understand will happen this afternoon, matteo renzi will one last time meet with his cabinets, and then he will formally go to the president of the republic of hand his will resignation. nobody knows what happens next, will askhe president someone to form a new government, either a technocratic government or a government that he thinks is an option to get the majority in parliament. names floatedee around. we don't know whether he will announce the successor this evening or maybe tomorrow or maybe it may take one or two days. this is how it happened because the referendum was rejected by 60%. about 60% of the 70% actually voted against the referendum. and unlikely matteo renzi will play any part in this new government. they need to get the staffs approval by the parliament. reac

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

went, crescendo involved in euro-dollar. -- cdu dropping off markets on matteo renzi yesterday. t markets in context. welcome. , itcorrectly reminded me was three minutes to recover from renzi and three hours to recover from trump. ofn you look at this kind term, what does it say to you and the cio team? are we better at understanding risk? >> two things. you implied volatility. i think the more relevant line is the u.s. equity line. trump is basically flatlining. markets are relatively bullish. manus: matt, are you going to join in here? what youwell i wonder will think about the fact that afraid ofn't just populism, but it seems in the u.s., i saw that the st. louis fed tweeted out moments ago that james bullard thinks the three keys to donald trump's platform at the beginning of his term, tax cuts, regulation reform, and infrastructure spending, could put upwards -- pressure on interest rates. is this a key to investing in europe -- in the u.s. in the coming year? >> i think all three of those aspects would be positive for growth. and also positive with respect to inflation. h

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

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

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

so you are saying it is wrapped up with the person matteo renzi. federica: yes. that's it. ian: 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. things can''t continue as they are. the italian people canan't taket anymore. they want to

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

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 b

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

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

prime minister matteo renzi with the referendum vote on sunday.he is trying to change the government to streamline things. as italians go to vote on constitutional reforms, they are deciding whether the senate needs to be curbed back in terms of the power it has and take back local authority stronghold. what the people in the markets are nervous about is that matteo renzi has staked his own political future on the outcome of a referendum. he wants a guest to the referendum. he has said repeatedly that he will step down if there is a no vote. italy has had 63 governments. we may see more political risk or the instability of all which investors don't want, if he steps down. how do you deal with the banks. there are big banks trying to raise capital. that would mean that investors internationally could shy away from subscribing to that capital increase. what does it mean for the smaller banks? will they need some kind of rescue if we have a technocratic for the next couple of months. >> let's go right back to rome for more on this critical vote. join

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

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

european stocks recovering slightly after earlier losses on monday following prime minister matteo renzi's announcement that he intends to resign after facing a defeat in a key referendum. wall street is poised to start the day in the green after falling earlier on news of renzi's defeat. markets could start on shakier foot after stumbling for the first time since the presidential election. >>> and u.s./china relations could take a turn for the worst after donald trump publicly act insulting china after accepting a call from taiwan's president, a move that violated four decades of foreign policy. >>> and british defense company bae systems is developing a pie pilotless plane called jet 31. they have launched a series of test flights in which the aircraft flies by itself using an infrared camera by being monitored by operators sitting 15,000 feet below it. back over to you. >> when you think about it, you've got drones pilotless so why not planes, right? >> because they don't carry human beings. kate rogers, thank you very much. no thank you to that. >> good point. >> still ahead, five thin

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

prime minister matteo renzi confirming he will resign today after suffering a resounding defeat in theeferendum sunday. renzi's plan to reform the constitution and revive the economy rejected by nearly 60% of the voters. let's go to milan and bring in nina dos santos. it became less about changing the laws and it became a referendum of renzi's leadership, didn't it? >> reporter: that's right. it became a gamble he lost in spectacular fashion just as david cameron lost on membership of the eu for the uk when he tabled that brexit vote. a similar scenario. dangerous things to call for the politicians. that is the message coming from the italian people these days. for the investors in the building behind me, alison, the italian stock exchange. they are saying it was amazing. p p populism taking one step backward and one step forward overnight. this with 60% of the people eligible to vote voted against renzi as plans to the constitutional reform that he built here. the turnout was significant. 70%. that is bigger than many general election turnouts. where does italy go from here? financial

>> 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 public t

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

despite a resounding no vote against the incumbent prime minister matteo renzi leading to his resignationn the constitutional reform referendum. why is the reaction so positive despite the bad outcome for the establishment? the transition post-renzi is looking to be relatively stable. so we have the bad outcome in the vote, but the realization that the worst-case scenario is highly unlikely, and by that i mean the possibility of an anti-eu party coming to power is still a long way off. so we're seeing rallying markets across europe including in italy despite the fact that the italian banks are down sharply. asian trade, more negative perhaps because they were open earlier before this positivity came out in european trade. also because of some of that china/taiwan/trump discussion over the weekend. and also we saw the new zealand prime minister resign unexpectedly for family reasons. john key was in the post for eight years and pretty much liked across the region. so we're seeing asian trade negative this morning. >>> as we look at what is going on in the broader markets, oil prices are hi

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

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

- he met various party leaders and has included many of the ministers from the ministers from matteo renzi's outgoing administration. french police have detained 11 people in connection with the terrorist attack that killed 86 people there on bastille day. providing logistical support, including arms to the tunisian who drove his truck into the promenade. the islamic state group claims responsibility for the attack. french officials say some of those arrested were from eastern europe, notably albania. luke schrag oh has the story. reporter: a radical extremist left 86 dead and 103 wounded after he careened into a crowd on busty day -- on bastille day. just a day later questioning came thick and fast. officers began with the man's wife, though she was soon released. an inquiry lended a trove of information at the militants home. much of it gleamed from his mobile phone. the police brought in various profiles area and albanian to haveas thought provided the extremists with firearms for his attack. three days after police detained another suspect in the western town, police brought a further 10

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

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

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 higher. oil

the new york stock exchange with that and more. >>> the resignation of italian prime minister matteo renziriggered economic uncertainty. as we reported, renzi announced he would quit after voters rejected his political reforms. the milan stock exchange opened 2% lower and many bank shares suspended because of excessive volatility. this morning, the euro hit a 20-month low and had since rebounded. >>> in this country, most analysts say the november jobs report released on friday won't derail the fed's expected interest rate hike when it meets next week. the dow finished 14 points higher for the week last week. s&p lost 21 points. the nasdaq finished 143 points lower. >>> flight attendants at american airlines want their new uniforms recalled. american issued new uniforms for its employees in september. the union says flight attendants are reporting headaches and rashes and hives and burning skin and eye irritations. american and the union are testing the uniforms. the airline has offered uniforms made of alternative materials. >>> united airlines new fare structure is under fire from new yo

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 and its

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

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

matteo renzi formally resigned yesterday, but the country's president will not let him leave. d he would delay accepting the resignation. he begins talks with italy's main political talks this afternoon. renzi is stepping down after suffering a defeat in the referendum. >> we obviously have to go through an internal transition that i think will be difficult. it will be very hard, as we have isbe transparent, which neither for a great democratic party to stand out. but that only to come after we have tackled the crisis of government that is about to formally begin. crediteanwhile, italy's rating outlook has been changed from negative to stable by moody's. they cited the slow and halting progress on economic and fi scal reforms. tain's exit from britain has been approved by lawmakers after theresa may promised parliament the chance to scrutinize her plan first. today is the fourth and final day of the u.k.'s supreme court hearing into the handling of brexit. anna: house prices rose to a seven-month high in november. the index rose to 30, the strongest reading since april. that as

matteo renzi formally resigned late yesterday, but the country's president will not let him leave. sergio said he would delay accepting the resignation as he begins talks with the italian political parties this afternoon. renzi is stepping down after suffering defeat in the referendum on constitutional reform. >> we obviously have to go through an internal transition that i think will be hard. it will be very hard, as we have to be transparent, which is neither for a great democratic party to stand out, but that will lead to come after we have tackle the crisis of government that is about to formally begin. reporter: the u.k. prime minister has won lawmaker's backing to trigger article 50. this came after she gave women the chance to scrutinize her plan first. today is the fourth and final day of the supreme court hearing into the government's handling of brexit. a guage of u.k. house prices rose to a seven-month high in november. the royal institution of chartered surveyors said the index rose to 30, the struggles reading since april. global news 24 hours a day, powered by 2600 jou

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

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

. >> italian prime minister matteo renzi says he would wait in the early hours of this morning afterosing 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 were grossly exaggerated, frankly. it was not comparable to the brexit referendum or even to the vote in the united states, which indeed signaling much more fundamental political change. >> what would you be asking of the new government of italy? >> basically that the new government continues to reform. we have significant public debt. not in such a difficult situation as in 2011, where 50% of the debt was in the hand of international investors. it is not so huge like in 2011 soit is not so huge like in 2011, 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, donald trump said "boeing is building a brand-new 747 air force one for future presidents. costs are out of

in italy, matteo renzi's foreign minister has been asked to form a new government. iloni may just be keeping the seat warm. if gentiloni does not become prime minister, he's likely to face pressure to step aside. renzi wants early elections and is plotting a come back. china is warning donald trump against using a one china policy on taiwan as a bargaining chip in trade talks. trump says his support for the policy will depend on cutting a better trade deal with the chinese. trump told foxnews he doesn't want china dictating him. the president-elect decades of protocol i speaking on the phone with taiwan's president. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. tom: thanks so much. let's look at equities, bonds, currencies commodities, down. the s&p 500 futures, later in the day, we've seen them reflate and moved to higher equity prices. the euro, that was weaker earlier. there's the crude oil story. we will have a chart for you later on. the fix, 12.26. that is where it ought to be. the dow, extraordinary.

matteo renzi is stepping down following a crushing defeat in the country's constitutional referendum. nearly 60 percent of voters opposed reforms renzi claimed were vital to modernize italy. the result is considered a win for populist and nationalist parties who campaigned against renzi and his promise to stimulate italy's economy. he is expected to can be passed later this month. this morning the euro fell to a 20 month low against the dollar. there is no word yet on who italy's president will appoint to replace renzi. happening today. deliberations resume in the trial of a former north charleston police officer who shot and killed an unarmed black man during a traffic stop. friday, jurors told the judge they were unable to reach a verdict in the michael slager trial. but, the judge said the jury needs to keep trying to reach a slager is charged with murder in the 2015 shooting of walter scott. cell phone video shows scott running away from slager as he fired the fatal shots. the judge has given jurors the option of convicting slager on a lesser charge of manslaughter. several passen

matteo renzi's office did not respond to a request for comment.nt-elect donald trump jumped into corporate affairs again criticizing one company and then to hail another. he called out boeing on the cost should develop a new air force one jet claiming -- saying to cancel the order. >> [inaudible] he would do a lot of deregulation. i said this is great. the u.s. will become great again. that is your bloomberg business flash. manus: the uk's prime minister has taken her post-brexit trade hunt to bahrain. theresa may was sitting a stern tone on iran. the nuclear agreement with the nation is vitally important for security. anna: the prime minister highlighted the importance of boosting britain's trade and security relations with the gulf state. >> it will be meeting gulf leaders and talking to them about the trade opportunities for us in the future. this is about britain here and now increasing our trade opportunities. what we canus for achieve in terms of the deal but also the opportunities that there are around the rest of the world for us to do tra