mr. renzi's prime minister -- mr. renzi as prime minister, that the policies of mr. he past two years have been quite different from the initial ones. initial ones included a labor market reform that although it has not given proof of brilliant results so far, i believe it is in the right direction. years, i musto say that the base of economic reforms has slowed down, a lot. vonnie: that was former italy prime minister mario monti. next, energyup companies leading stocks higher, the dow topps 19,000. take a look at european stocks. 34 minutes away from the end of the tuesday session. stocks are rising, the highest in almost a month, led by minors. this is bloomberg. ♪ . are you on medicare? do you have the coverage you need? open enrollment ends december 7th. so now's the time to get on a path that could be right for you... with plans including aarp medicarecomplete insured through unitedhealthcare. call today or go online to enroll. these medicare advantage plans can combine your hospital and doctor coverage with prescription drug coverage, and extra benefits all in

think that the referendum changes would be antidemocratic, but speaking on cbs over the weekend, mr. renzi defended the votes. >> this referendum is not a referendum to change democracy in italy. it is a referendum to reduce bureaucracy in italy. italy is the worst country for bureaucracy around the world, and this is very important. if we have a system with a lot of politicians, the consequence is 63 government change in 70 years. >> yeah, so mr. renzi speaking there. julie's with us, and indeed, you'll be heading to italy to cover this as of tomorrow. >> yes. >> the trip begins. >> yes. >> so, what is this a vote against, do you think? i mean, is there a vote for, for that matter as well, is it for or against renzi, is it for or against the government, is it for or against the reforms? >> i think all of the above. i think as we've discussed the last several months, unfortunately, because prime minister renzi said he'd resign, it became a test once again of the establishment here in europe. and obviously, what we've seen with brexit and with trump has got the markets concerned, hasn't it?

i am more worried about mr. renzi , and we get another right wing nut. tom: help us with your talent at the peterson institute. what do mr. kierkegaard and the others say? adam: my colleague jacob kierkegaard, who had the right calls on greece among other things, will tell you you will not make money on the italian banks, but you do not need to panic over italy as a whole. that is the right deal. you do not need -- you do not need to fantasize about the next government being far more reformist than this one, or if renzi wins he gets a huge mandate to realize that the bottom is still pretty solid under italy and under europe right now. posen, thank you so much, of the peterson institute. i am sure we will speak to you in the coming days and weeks. this is important. tiffany's has just reported their earnings. they are pretty good, the usual story -- lousy sales, which i guess we expected everywhere but japan. this is the first i have seen of the president-elect's victory, the effect on tiffany's fifth avenue. this is a

mr. renzi's resignation may not be the catastrophe that many in europe fear. the editorial comes two weeks before a vote on which the prime minister has staked his poli political future. the no camp has a 5% lead over the yes camp. some of our guests are also saying the referendum may not be the worst thing. cnbc spoke to a number of ceos of leading italian economy to get their take. >> we need stability in italy. we need to continue the reforms that have been started by this government. this is important for italy, for the country, important for europe. important for the business. >> good stability means being effective, being pragmatic, not turning around and running for nothing. we need this kind of stuff, without talking about politics, we need our politics to understand that we need the right condition to invest. otherwise there's no investment. >> if italy votes yes, then all of us in europe will say, okay, italy is indeed progressing on the reform path. and therefore the pressure is maybe moving to another country that we go into the electoral cycle nex

i would expect mr. renzi to stay on after all.eave, i would expect the president of the republic to form a new government with a new prime minister, but very much from the same center-left political spectrum, which is now the renzi majority. there will be, in my view, no early elections. they will stay where they are supposed to stay in 2018, and there will be a continuation of current policies. and, i should say -- and i have consistent the most supporters of prime minister renzi, especially initially -- that the policies of mr. renzi in the past two years have been quite different from the initial ones that the initial ones included a labor market reform that has not given results so far. years, i willo say that the base of economic reforms has slowed down a lot. and also that the space of fiscal consolidation has slowed down a lot. so the outcome of these two years is not really brilliant considering that there was a mostly favorable situation on certain qe, the exchange rate, etc. -- thereeve that he will be another similar go

mr. renzi remains in charge of the largest political party.will not be a political general election for 2018. there is not even a vote on the euro. guy: across the channel, we are very good at picking each other's unsustainabilities. we can see the euro is unsustainable. do you share that view? >> it is not sustainable as it is currently structured. if you were to say to me, what would be required to make sure the euro lasts, it would be the fiscal policy. guy: james, stay with us. we will carry on this conversation. this is the european open, 26 minutes into trade. ♪ guy: welcome back. you are watching "bloomberg markets: the european open." thisis developing at point. we can see a performers within the mining sector once again. sterling is a little weaker this morning. we are outperforming in london. the rest of the continent is up by .2%. the u.k. chancellor philip hammond will get his first chance today to change policy in the wake of the brexit vote. 1.4 billion pounds will be pledged to build affordable homes. the affordable costs are ex

it does is a no vote, not meet mr. renzige and italy has a long history of selecting caretaker prime ministers and i do not think there will be a significant move to the eu. francine: there is a long line of technocratic governments. tom has charts. they point to the fact that italy is broken. absolutely, but this is the heart of the problem of the eu, we have a situation where we have a single monetary policy very different with regard to physical arrangements -- fiscal arrangements and you correctly identify the challenge of youth unemployment and italy. tom: i want to give a shout out to deborah and the wall street journal, they go city to city in italy talking about how renzi has no chance. it is an angled article about labor and the upset of the middle class. francine: we cannot talk about polls, we are in a blackout. tom: fair, i do not think i was the glad you mentioned it. i want to look at the bloomberg, this is nominal gdp, the animal spirit of italy which says it all. the absolute heart of mr. grillo's theory is t

vote, no to the referendum, or is that more a vote of confidence, no confidence in matteo renzi's leadership? mrit is very difficult to interpret help people consider their vote in a referendum. people vote for all servants -- sorts of motivations, including judgments on the government in place. it is very hard to predict what will happen and what will be the consequences for the political situation in italy. just have to wait to see what could happen in case of a know in the referendum. as you know, a yes is still possible. the polls have been wrong in many places. there are also many undecided. so, it is not useful to speculate too much at this stage. we will have to see the repercussions. the chance of a market correction amidst this volatility. how serious do think that chances? do you think all of the participants in the european markets are prepared for market correction? >> let me elaborate a bit. seeing ae are correction coming from the u.s., because the market perception is that there will be more growth and higher in relation in the u.s. -- inflation in the u.s.. to other parts of the

renzi will lose his referendum. there is a reasonable probability that marine le pen, on the back of the populist surge with brexit and mrmp, will make significant gains in the french election. those are extraordinary challenges. i therefore suspect the political elite will not be able to equal it on the challenges of the euro and we will have an existential crisis within the next 12 months. francine: we are looking at currency wars and protectionism? james: we have to worry about a retest of the role of the european central bank. we have to worry about how the political elite are going to involve the storyboard. moment, the clearing bank arrangements have germany lending 250 billion, italy borrowing a hundred 50 billion. this is not sustainable. francine: it certainly is not. james, morris, and guy stay with us. twitter as a form of communication, next. ♪ seeing is believing, and that's why we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv w