in fact, he has a nickname, he is known as mr scissors. whom a judge has now freed to run, once again, for office. and their coalition with berlusconi's forza italia. of the coalition between two populist anti—european parties. the movement and the league. maybe in six months, after a poll, it will still be all about them. but perhaps they'll have a clear mandate for their eu policies. count on nothing, though. has hinted coalition talks could just be restarted. in italy, the only certainty is worry about financing the debt. chris

president is suggesting to bring in an imf economist who is known as mr scissors for his previous rounds of cuts, which feels remote against what the populace parties are arguing for. there is a massive schism there in terms of pumping the money in or pulling the money out. the china daily, though. i do not argue, but this is about north korea and the us summit. did we all have a dream one day the donald trump said it was all off, because it is not even refer to any more. —— daily. it is not referred to like it was in doubt. it was off on thursday afternoon. i was sharing a conference that day and the markers rated badly. it came back on on saturday, and we have another round of talks between the northern south korean government coming up this friday. it is turning into a soap opera, but the backdrop is that this could be a momentous time for peace in the region. it is interesting to

well, let's start on mr scissors, shall we, or mr nobody is i think one of the leaders calls him?not got a prayer, has he? does not seem that he has a prayer at all because the two parties that had the largest votes in the match for election, the five star movement and the northern league, have both said they will not support his government. that could lead to re—elections in august. government. that could lead to re-elections in august. and the markets do not appear to have made their minds up over the last 12 hours or so. is difficult for the market to know what to make of this, what we need to see is what campaign platform these parties will contain on over the summer platform these parties will contain on over the summer because that is theissue,is on over the summer because that is the issue, is this new election going to become basically a de facto referendum on whether italy stays in the eurozone all leads? you're right, but that is such a massive, it is almost too frightening to contemplate for those who are least support the idea of that. absolutely, italians when they up

be quoted the leader of la liga, and he said, amongst other things, well, he has been called mr scissorshe said it was the darkest day in italian democracy. he is not short of hyperbole, that is so sure. no, he is not short of that, but italy has been short of democracy. it has not been short of democracy. it has not been there long. so maybe they are just getting used to it. so let us move on to the arab news, now. a clear message for iran. this is a remarkable story. sergei lavrov from russia is saying that militias should get out of syria. essentially the arabian —— arabian militias —— iranian militias should be encouraging. it will be interesting to see that is picked up and seen as an olive branch being held up to say what can we do to try to neutralise this. the arab news history leaning towards same ever there is a bigger strategy of deescalation now, moving towards a finality for the syrian conflict, which people would see as good. but the other side is that it is musical chairs in terms of where oui’ is musical chairs in terms of where our lives as do and don't lie. and every mo

mr. scissors -- he had the nickname of mr. scissors. it is not what he represents.ncerned is the longer-term. it does not look like he will be in power. vonnie: does this give ammunition to the populists, the technocrats and elites have come back. david: i would say so. you see that in the call the populist parties to demonstrate, calling upon their members to participate in public protests. essentially they are saying we do populists have the highest number of seats in the president is overturned the outcome. --y could certainly ignore ignoring the will of the people. that is the reason why we are going to have to head to the polls. caroline: david, there was another powerful attire at the head of the european central bank. how does this make life more difficult for mario draghi? davidbank. : the ecb already had a difficult task. forget the underlying inflation -- let's not forget the underlying inflation, and growth is slowing in the euro area. those are challenges they had already before any of this happened. financialy face crisis in the third economy, which cou

mr. scissors is put forward, but populist parties say they will bring him down.rump is to meet shinzo abe ahead of talks with north korea. reignseopolitics supreme. yvonne: the world of social value investing. we discussed the role of business in society with warren buffett's grandson. ♪

mr. scissors. not this one. this one. a former director of the international monetary fund who earned the nickname for his severe cuts in public spending. has been given the mandate to form a caretaker government guide the country towards new election. >> he knows global markets are worried but says the economy is growing. he will guide a moderate government where italy's role remains essential. >> he came to power after populous parties that won march elections on euro skeptic campaign promises failed to form a government. steve bannon president trumps former adviser has been especially interested in the rise of populousism in italy. which he is here to support. >> this populous movement is a global movement. to show the world that every day men and women can take control of their lives. take control of the country. >> it is clear this country is in political day i don't say. staying in the europe zone which is what eu countries call themselves. is no longer something people take for granted here. >> i asked italians in

mr. scissors.y over there lost bid for power and want to have elections as soon as possible before september. of course, this is going to throw some chaos and uncertainty into italy's future. anti-f the issues are the immigration versus pro- immigration forces, and also, euro skepticism. they're an anti- immigration versus anti- immigr, euro skeptic and the five-star movement is antiestablishment. together, these populous forces are saying, we do not want to see the status quo. we don't necessarily want to be part of the larger european union. element some anti-euro to this as well among them. that's really this widening divide is over those issues. and again, it looks like it will be somewhat chaotic in the short run as they try to form a new government. yvonne: italy already one of children of the european union,. how will that impact the economy and can we see that risk spread across europe? appears to bew it somewhat contain. this is italian for the moment and their markets will be seeing the e

mr. scissors because of the way he cuts budgets. back here at home, home prices continue to rise. i know we tell you that all the time because there are all kinds of studies and companies that want to get their name on the news. zillow red fin, national association of realtors all have price reports. the most trusted in my mind is the case shiller report. the shiller in case shiller won a noebl prize. they say prizes in san francisco froze 11% overover year. case shiller only covers the san francisco metro, not the south bay. but the south bay is doing just fine. you saw record price for this house in sunnyvale, $3 million, somewhat larger home there. a neighbor in our report thought we were in a bubble because of the high price. i'm not sure that's right and here are the reasons we're probably not in a bubble. wages in job growth are strong in the bay area. the number of homes available, very low and there are very few homes being built. "today in the bay" will be back after this. we all know guys like gavin... boasting. overselling his achievements. making false claims. as lieut

mr. scissors because of the way he cuts budgets. back here at home, home prices continue to rise. i know we tell you that all the time because all kinds of studies and companies want to get their name in the news. z zillow, national association of realtors do price reports. but the most trusted in my mind is the case shiller report. the shiller in case shiller won a nobel prize. they say prices in san francisco rose 11% year over year, only seattle and las vegas grew faster. case shiller only covers the san francisco metro, not the south bay but the south bay is doing just fine. you saw the record price for the house in sunnyvale, 3 million and change for the average. somewhat larger home there. a neighbor said in the report he thought we were in a bubble. i'm not sure that's right. here are reasons where probably not in a bubble. wages and job growth very strong, number of homes available very low, very few new homes being built. in a bubble you have no underlying support. there's no reason for something. and i think you can find reasons that home prices continue to rise. >> it's

in fact, he has a nickname, he is known as mr scissors. whom a judge has now freed to run, once againr coalition with berlusconi's forza italia. of the coalition between two populist anti—european parties. the movement and the league. maybe in six months, after a poll, it will still be all about them. but perhaps they'll have a clear mandate for their eu policies. count on nothing, though. has hinted coalition talks could just be restarted. in italy, the only certainty is worry about financing the debt. chris cook. five star movement. as finance minister had spooked the markets. because there was no sign of leaving the eurozone. of president mattarella? we are talking about that. we didn't start the process of impeachment. if it's the case of starting an impeachment procedure. but we didn't announce that we're going to do it. but let's just be quite clear. luigi di maio seems to be rolling back from that. the impeachment of the president? you know there is... there are things that are changing very rapidly in italy. happens that they won't start. so everything is possible in these day

he became known as mr scissors in italy because of his cuts to public spending. achieving a majority in parliament will be incredibly difficult. here you can see in yellow and green the two anti—establishment and populist parties — the five star movement and the league. they control more than half the seats in the chamber of deputies and they've pledged to block mr cottarelli. and the country has serious economic challenges. as well as rising poverty and high unemployment, it also has the eurozone‘s second—highest level of government debt, totalling $2.7 trillion — 130% of gdp. with me is our economics correspondent andrew walker. carlo cotta relli, is carlo cottarelli, is that the name i should consign to my memory or frankly not? we have to think about him fora frankly not? we have to think about him for a little while. he will be at least trying to run the show it seems for the course of the summer. he has himself said he is not expecting to stay on any longer than next year, very much an interim technocrat prime minister and his view is to stabilise the ship

mr. scissors is the latest to be asked to form a government in italy.aim is to has a budget and move the country towards new elections. his nomination as opposed by the five star movement whose leader is demanding a new election in august. >> the italian economy is still growing, and public finances remain under control. and i can absolutely assure you that a government guided by myself would guarantee caution in the handling of public finances. to bethe u.s. is said willing to discuss a deal with europe over legal state subsidies given to airbus. a shift in position for the trump administration and could open the way for the e.u. to avoid sanchez. -- sanctions. the white house says president trump will meet japan's shinzo abe ahead of the summit with kim jong-un un. the two say they shared the same goal of achieving complete dismantling of north korea's weapons of mass destruction. the u.s. sent a delegation to singapore to prepare for the summit and another team is talking to kim's people. global news 24 hours a day on air and on tictoc on twitter pow

mr. scissors for his us a terry measures in the past, back in 2013 he led a spending review in italy under the former prime minister that won his plaudits from economists but has not helped his popularity with lega and five star. speaking after his appointment he said elections would be held in the autumn or early next year he sought to reassure the public and investors about italy's finances and its commitment to the european yune runion. let's look at the italian banking sector intesa sanpaolo down 5.5%. as is bank ko bshco bpm bper banca down 5.83%. mediobanca down 3.35%. the yield on the two-year hit the highest level since 2013 you can see that the ten-year yield is now at 3.208. just to give you a bit of a recap on comments this morning from the central bank governor of italy, he's been talking about the fact that economic realities are the major constraints on spending. it has nothing to do with european rules he's been talking in rome. also talking about the fact that politics should have no role in these decisions when it comes to european membership. as bank governor himself, he

mr scissors? and mr spending review? this is a guy who is careful with money? yes.rector of the spending review commission in italy. he was the man whose job was to make sure that it... that italy cut in the right places, to try to reduce its huge debt, public debt. he is known as a man of austerity. he was also an officer of the international monetary fund. so, this is something that doesn't lay very well in the eyes of those who blame austerity and who blame cuts on public spending for the difficulties that common italian people are facing, day to day. there are calls by luigi di maio, the leader of the five star movement, for president sergio mattarella to be impeached, has anything like that ever happened before? no. and the impeachment is a very serious and long procedure. it takes about 18 months, in italy, for a president to be impeached. according to article 90 of the constitution he can be impeached only for two things, high treason or violating the constitution. now, the five star is saying that sergio mattarella violated the constitution the moment in whi

mr. scissors." >> thank you.e chambers of politics, a vote of no-confidence confidence has been called or threatened. what is the latest? >> hello. it has been a dramatic 72 hours in madrid. socialist party held a vote of no-confidence and this is what we know, in terms of their agenda. they want to form a government and take the country to new elections. we do not know how long they want to stay in power. meanwhile, the liberals socialie of no-confidence and this is what we say catalonia is where they are out and they are saying, "not so fast." if they hold the vote of no-confidence, they want immediate elections. this is when we will get clarity on dates. when do they want to hold the hypothetical election? ourse, you have the classic response of the leaders saying, i will see out my four years. could rajoy resign? hand?ould force his the sake of the party? he said he would stay here until 2020 and that this was an overreaction to what has happened is up what had happened was the verdict came out and it invicte

mr. scissors. love that. isn't that his nickname for a while?es and dropping as risk reemerges in the market. we take a look at the 10 year. where do you go on a day like today? sebastianthis is bloomberg. ♪ is bloomberg daybreak. ali baba is making a deal that will boost e-commerce ability to ship packages around the globe. the company is a leading investor group that is taking group.nese investor the price is $1.4 billion. and a portfolio that includes banana bread -- includes mirror bread.- includes panera terms of the deal were not disclosed. the purchase price is $2 billion including debt. and cutting production in north america this summer. nikkei will reduce workers hours at five assembly plants by as much as 20%. earlier, they said they wanted to improve profits rather than sales growth. your bloomberg business flash. alix: i have to bring you this headline. -- greatermmer smash quitterly." dropping below 2%, a level we haven't seen since the beginning of april. joining us now is more carefully efele.mark ha what do you do on a day like

mr. scissors because he likes to cop public spending which won't go down because he likes to spend public is they could be going to the polls in early september, if that happens, neil, the five star movement in the league, the northern league of milan, they could pick up more votes which would spell more trouble for the eurozone because they are very skeptical about the whole thing and say bring back the lira. forget the euro. so all of this is making the bond yields as you can imagine in italy going up. the 10 year above 3% in italy. i will point out, let's not get too panicking, during the financial crisis when it bit in europe, the 10-year yield on the italian yield got up to 7%. there's no doubt people be getting skittish, is this another eurozone debt crisis? we have to wait and see. never a dull moment in italian politics, cavuto. you know that. neil: how cheap of you. so let me understand, ashley, that now we have a character in italy, carlo the scissors carterelli. i should mention the prime minister in spain, his party is hit with a dozen charges of corruption. he will have a vot

mr. scissors, interim prime minister with a reputation for cutting public spending or demanding that.loath to do any spending cuts despite the fact they have these crazy debt levels and even though italy's economy is going okay these days. ashley: hasn't grown in 15 years, since 2003. liz: can they pay back the debt? the majority of their debt is held by individuals in italy and the banks in italy and the ecb. this is a crisis that has been under the radar screen for some time and popping to the surface due to lack of stability of the leadership of italy. a before we had an election in march, the 5-star party had 30% of the vote, 7 present more than last time. 17.7%, up 14%, the traditional center-right party at 14%. without a doubt the voice of italy is saying we want to move away from the establishment to snatch away their voice like this. we have seen this going on with brexit, opposition to brexit. ashley: they can't accept the vote was to get out of the eu. there will not be a second vote. it was on march 29th, next year the uk is out of the eu. the big fear in italy as this will

mr. scissors for his interest in cutting budgets.he populist want to increase the budget or some would suggest that on the fiscal side, and this is the opposite of what they probably would have hoped for. does this set up an never more likely clash between the populists and maybe the president? there was some suggestion of an impeachment. for how long can cottarelli provide some stability? to face a lot of resistance in parliament from the two populist parties, the five-star movement and the league. how things go on not certain, says he for sees elections either sometime after the month of august or in early 2019 as to where the country is headed. mark: look at the markets and talk us through the initial reaction after the president spurned the choice of the eurosceptic finance minister. stocks rise in italy. yields declined. it is a different picture now, isn't it? >> exactly. the spread of italian 10-year bonds against german bonds has now gone wider than any time in four years. certainyou have seen a amount of relief right after t

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