results formning prime minister matteo renzi. many are sounding the alarm, saying this was a litmus test for him and he failed that spectacularly. in a daily paper, it says it is an eviction notice. another paper says it is a defeat beyond doubt. the first time matteo renzi must draw on the vocabulary of "losers." the conservative daily says it will be hard to minimize the impact or the fallout from these local elections, but they do say it is not just matteo renzi's fall, it is the government's fault for its lack of unity and credibility that it has put out at a distance with it from its italian voters. hase: historically, rome elected its first female mayor, virginia raggi, from the but-star organization, she has her challenges. >> she is having to crack down on the vatican front-page taxes. she is fiercely opposed to rome's 2024 only big bid, something that matteo renzi was in fair growth. one of her biggest challenges will be simply the fact that she has to learn to navigate the tricky political waters that is much of italian

and matteo renzi made that very, very clear. this is the options if you will that britain will presented with. number one, no negotiations on the margins, but number two, when you do get down to it, you can't just take what you think are the good bits and leave out the bad bits, max. >> there is mounting uncertainty over just what sort of future the country has but also leadership of its main opposition party. reports say labour mps are planning to oust the embattled party leader. he lost more than half of his cabinet since thursday's referendum, he's being blamed for not supporting the "remain" campaign strongly enough. and with me here is one of the first to come out against jeremy corb corbyn. just describe the frustration with his contribution to the campaign. where did he go wrong? >> he was very slow in to the campaign and for the first couple of weeks it was dominated by the party and he just confused his message. he wanted to spend as much time criticizing europe and he did saying people should support it. and the result

this is what the democratic renzi could end up losing the capital.d be a tremendous blow renzi's. -- for matteo >> we have italy/sweden match behind me. guess italy scored. i had the same feeling when england was playing wales. italy, the increase in popularity of the five-star movement. it is a reflection of these populous movements right across the european region, isn't it? john: that is right. and becoming more crucial because of the elections we are expecting. obviously there is spain. france, andermany, we are seeing various movements both at the local level and at regional level gaining power. in italyopulous wave this time. overe: that game is now and italy has beaten their competitor. if you look at the 10 year yield, french and german bonds -- the markets are clearly not taking too much notice politically at the moment. john: right. you're correctly interpreting that at the local level. but if you look forward to october, italy is going to have a referendum on its own, not on meeting the eu, but an overhaul of the senate to try to fix the i

she is leading her closest rival, a member of matteo renzi's democratic party. will likely fight a runoff. a victory would hand eurosceptics their biggest blow to date. let's get to our reporter in rome. the significance of this election is huge. it points to a more extremist way of thinking about europe. >> yes indeed. i think it speaks to the populist surge. movements we've seen in austria and spain and france. for the italians, virginia raggi has been described as a revelation by they usually sober newspaper. francine: 1-wood a rongji raggil -- what would a mayoral administration look like? >> it is a bit of a poisoned chalice and me backfire if she fails to deliver. basically, she is leading in these partial results. because there say is such a movement against anybody who has been in power, left or right, in rome. francine: and we will find out on june 19. matteo renzi was meant to revitalize. what does this result mean for the prime minister? >> there is speculation that he's losing his magic touch. his candidates of the democratic party are going to be in

petersburg, i will ask italian prime minister matteo renzi about the very real risk of a brexit.ck? i am totally blind. i lost my sight in afghanistan. if you're totally blind, you may also be struggling with non-24. calling 844-844-2424. or visit my24info.com. they give awards for spelling but everyone knows cheese.s. cracker barrel has won awards for their delicious cheddar and they put that cheddar in a new macaroni & cheese. can you spell delicious? delicious. d. e. l... to be taken care of. in good hands? like finding new ways home, car, life insurance obviously, ohhh... but with added touches you can't get everywhere else, like claim free rewards... or safe driving bonus checks. even a claim satisfaction guaranteeeeeeeeeee! in means protection plus unique extras only from an expert allstate agent. it's good to be in, good hands. high potency probiotic, life feels a little lighter, livelier, a little more you. ultimate flora probiotics. edition of "gps," coming to you today from st. petersburg, russia. where i sat down on friday with not only president putin but also the pri

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anna: italian prime minister mattia renzi flew to paris for talks with president aland.wo will joined chancellor angela merkel ahead of the summit in brussels tuesday. that is where we find bloomberg's ryan chilcote. he is with us now. what have we heard so far from these leaders? we know that they met. it is part of their effort to get their ducks lined up, get on the same page, not just in terms of how they react to the u.k. and its plan to leave the european union but also, what kind of european union do they want to build together after the uk's exit? on wednesday when they get together in brussels after berlin and paris, that is one of the things they are going to be discussing in a format that does not include the british prime minister. what is interesting is the fact that president ollanta that with the leaders of all of france's political parties, including the national front. the leader of the national front came out of that meeting and said the french president rejected the idea of a national referendum, but it is something that is very much being discussed no

francois hollande and of course, matteo renzi and german chancellor angela merkel.nk we can listen in again. >> finally, what happens if the english hesitate? i think article 50 is quite clear in that the request to initiate things has to come from .he uk of course, we will discuss this with our colleague, david cameron. the time has shortened today compared to what we heard on friday, in terms of selecting a new leader of the tory party. i think this is being discussed in the u.k., and of course, taken together with the question of initiating article 50, the question is what are the relations that the u.k. once with the eu? we have to think about what is .n our interest i cannot really comment at the moment on the duration. said.only repeat what i we want as little uncertainties as possible, and we have to just wait and see. yes, we are completely in agreement as far as that is concerned. we have to work fast. fast means that the british government -- and we will see who will represent -- will have to notify as soon as possible. notify us of its decision as soon as

john younger and mesial renzi are in russia on hand for the economic forum. it has been a rare occurrence over the past few years and it could signal a growing movement to ease economic sanctions against the kremlin. european officials at the st. petersburg international economic forum have been a rare sight over the past two years. now commission head, john claude ers signals there could be a thaw in relations. this comes after calls to drop economic sanctions on russia which they say have not only been ineffective but also damaging for the future. >> i wouldn't be surprised if we were to find other players in those market niches three or four years for now -- from now. >> sanctions were imposed due to moscow's annexation of crimea are a -- crimea. imports of meat and vegetable products from the eu. prime minister dmitry mandala of called on the government to extend the ban over farmers concern for european imports returning to the market. investment across russia has suffered. international isolation has taken its toll. apart from the sanctions, there is al

a win for that candidate would be a blow to italy's prime minister, matteo renzi. river in paris starts to receipt after the worst floods in 30 decades pushed it to burst its banks. other regions around france are still at risk. also coming up this hour, in business, we will take a closer look at the cost of the flood damage in france that could run into billions of euros. and what did you do for your 90th birthday this year? his 90-year-old celebrated the day by jumping out of a plane. more on that on the way. now our top story, live from paris. genie: the presidential runoff in peru is still too close to call, but it does look like petro publicly since he has a his rival'sw -- trailing at the moment after being ahead in the polls two days ago. our correspondent has the latest. >> she may be behind her rival in the presidential election count, but kate: fujimori is not showing any signs of disappointment. are seeingesults we on tv show a technical time. we are going to wait prudently secause all night long vote will be coming in the region. the daughter of roberto

christiane amanpour will be interviewing the italian prime minister matteo renzi live in the next houring into the summit meeting today. we'll be back in a moment. >>> welcome back to our viewers who are in the united states and all around the world. you are watching "cnn newsroom." i'm rosemary church at cnn world headquarters in atlanta. >> i'm max foster live in london just outside parliament. have a look at these european markets. they're showing some signs of life after the brexit vote, opening some quite big gains, more than 2%, 2 1/2% now in paris. i sort of chuckle because it's so baffling for investors right now. and in the hours ahead the british prime minister david cameron will try to provide some clarity as he comes face to face with the eu leaders for the first time since that uk vote to leaving the european union. he'll alive in brussels in about three hours where he'll meet first of all with the european commission president jean-claude juncker. later he'll attend a working dinner with other eu leaders including german chancellor angela merkel, french president francois

italian prime minister mateja renzi has praised the italian navy after the coast guard retrieved a shiphat sank last year carrying over seven hundred people. it was one of the worst disasters in the migrant crisis. he says giving them a tomb means giving them the rights to be remembered. another 10 people drowned after their boat ran into trouble off the coast of libya on thursday. the coast guard says the victims were found dead on a boat about to sink. 107 others were rescued. -- ship full'sks of migrants have been havebyan security forces an battling to dislodge fighters loyal to the islamic state group from the coastal best game of stearate. government forces come from the western town of misrata. an ordinary day at misrata central hospital. fighters injured on the front lines are treated here. the battle against the islamic state group has been raging for weeks and the staff is overwhelmed. injured were brought back from the front line today with very different wounds. the problem is we do not have enough space. reporter: forces loyal to the libyan regime backed by the internationa

yesterday, angela merkel, the president and prime minister renzi said they would be no informal discussion. those kinds of informal negotiations will not take place in part because mr. cameron has said that he is going to re-sign and will not invoke article l. he's going to leave that to the next prime minister. but he is going to lay the groundwork that perhaps what would be best for the u.k. is something similar to what denmark has skype and its relationship to the e.u. lauren: adam shapiro, thank you. nicole: massachusetts senator elizabeth redshirting hillary clinton for the first time at an event. one of clinton's possible choices for vice president offering a passionate endorsement of the former secretary of state. she has thick skin and steady hands. most of all, she has a good heart and that's what america needs. leading the fight to liberate millions of americans to the burden of student debt and to make sure -- to make sure washington never again prophets. the presumptive gop presidential nominee proved every day he's not in it for the american people. he's in it only for himself

need to show that there is growth, that there are investments, and there are some theres from when renzieated 400,000 new jobs. it is not that because we lost one million but it is something. i think some people are coming back because they see more confidence and trust. francine: we had this important iea report where they were rebalancing the market with oil in 2017. emma: the demand is still very strong. we had a very strong global investment for two years, so we have seen the offer going down. sawhe u.s. shale, we 800,000 equitable barrels down so we share this idea that the balance will be there. our projection is still conservative. we are talking about 40 this , and 65 inxt year 2018 but we see the balancing going on. francine: you can see this basically shows you in white, the number of rigs that have come back online and the white line is the price per barrel between $50 and $65. is it stuck because of these producers coming from the u.s.? emma: it is possible. they will rebound and this is good news. francine: are the markets clearing and is it thanks to demand coming from the

it will be fascinating to see what renzi, italy, mr. rutter of the net lands and francois hollande of france. i go back to that point, they blame david cameron for introducing the referendum in the first place. it was to protect his own political future at the time. a risk that has backfired. >> before we go, is there any chance this backfires meaning that almost no matter what politically and you talk to a number of political scientists and they suggest even if the eu is ultimately punitive to the uk, it still won't stop this break away groups in certain countries from trying to either elect a group or force a referendum, just get this idea out they are playing -- sort of larger idea against playing against the elites and their own destiny and independence. >> i think there's going to be movements pushing for that in all these countries. the key difference issuing all of these countries and the political leaders will learn if the risk that david cameron took. you can point to opinion polls where over40% are suggesting they want their o

taylor: it is a setback for prime minister renzi in italy.a rajiv mobile the city's first mayor. another candidate was elected mayor of turin. in venezuela, people are getting so desperate for food, they are ransacking stores. there have been more than 50 food riots in the last few weeks. five people have been killed. venezuela has not been able to produce enough food on its own and cannot afford imports. the fbi says the orlando nightclub shooter omar mateen was radicalized domestically not by a foreign terrorist group. the investigation is continuing. transcripts released today show that he told a crisis negotiator that the u.s. needed to stop bombing iraq and syria. in kabul, afghanistan, 14 people were killed when a taliban suicide bomber targeted a minibus. the victims were said to be security guards from nepal. the taliban has recently increased its attacks on civilians and afghan security forces. in the city of paris, older cars and motorcycles will be banned from the streets over the weekend. this willtimated remove about 5% of the ci

in italy, a setback to prime minister renzi. there was a man of elected as mayor of rome who will be the city's first female mayor. another five-star candidate was selected mayor of turin. and the cavaliers back in cleveland. the airport, fans celebrated a championship for the first time in 52 years, scoring 27 points to lead the cavs to a 93-89 win over the defending champion golden state warriors and in game seven of the nba finals. it was the highest rated sports that network or sports channel espn in 10 years. about 1/5 of the millions of households with televisions were watching. the parade is wednesday. we will have more on this story coming up in just a moment. news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. back to you., vonnie: fears of brexit andcting things this week, a guest is with us now. about $80 billion in assets. creating global instability. tony, some say it has already created global instability, and it was that a month ago it could be a sign of underlying i

anti-establishment movement has been elected to run the city halls of rome, threatening to derail matteo renzi'seform agenda. for theg support skeptic party gives the italian capital its first female may or. vladimir putin is considering selling stakes in russia's state oil company to china and india as he struggles to his spending targets ahead of the next election. moscow wants to raise $11 billion from the sale of almost 20%. it would not only cover budget shortfalls, but strengthen ties with asia at a time with strained relations in the u.s. and europe. unicredit is likely to name a former government minister as its new ceo, according to an italian newspaper. the bank is up for more than 5% on the news. nigeria will drop its dollar peg after more than a year of resistance, finally getting into the pressures that battered its economy and choke the nation of foreign currency. that it may push weaker. 20% u.k. house prices continue to climb, with only the capital experiencing a decline ahead of the referendum. the cost of the property in london fell by .2% last month, according to a property we

renzi, they're trying to put forth a unified front. they're saying they won't do anything, there will not be any formal negotiations on the "brexit" until the united kingdom invokes article 50 and submits its request to leave to the european council, to the courts, to the eu. so the that has not happened yet. you had the president of france, mr. hollande, uncertainly nobody likes this this is not good for europe but they kept saying how solidified they were. this is solid united front and consequences will be worse for the united kingdom. those were take wais. if you want to try to interpret what would happen, it could be a summer of uncertainty with nothing happening. the cards, england, united kingdom, they hold that hand. trish. trish: thank you so much, adam. i want to go to london to ashley webster. just short time ago, s&p, known ratings agency stripped the uk of its coveted aaa credit rating status. ashley, explain the significance of this. this is big deal, you have aaa, not to have that is somewhat important for a country like

ed renzi will be on. why he thinks this is dangerous precedent. see how this market closes up this afternoon. up 187 points. the three-day rally continues. as we hand it over to trish regan. trish: like "brexit" never happened, right, connell? up 200. we'll see if it lasts. head of the cia says attack in turkey could happen here in the united states of america. he is warning that isis likely planning similar attacks in our country as we speak. this as a new "fox news poll" shows donald trump nipping at hillary clinton's heels. i'm trish regan. welcome, everyone, to the intelligence report. we have a whole lot going on. up 188. turkish police rounding up 13 suspects to the terror attack. we identified three suicide bombers that massacred 44 people and injured 230 others. they're russian speakers with ties to chechnya. what is the russian connection to isis? how vulnerable are we to. markets up 189, with lots of green on the screen. he erasing losses we saw. all the doomsday prediction after "brexit." british eu exit plain old wrong. famed economist

angela merkel, francois hollande and mateo renzi.hile they scramble to address the crisis, the uk's opposition party has announced a new shadow lineup. i'm joined by douglas coswell, a member of parliament with the uk independence party which campaigned in favor of leaving the european union. what an extraordinary moment in british political history. how would you describe the atmosphere here today? >> i think some mps are angry and in denial because most of them have been in favor of this failed project. but a lot of them are being pragmatic and coming around to it. we need to recognize, i've been campaigning to leave the european union for 25 years. we need to recognize 48% of the population are concerned and didn't vote to leave. and we need a new consensus that reaches out and brings as many of them with us as possible. we can do this but have to have good will on both sides. >> there's this element of divisiveness now. people are really frustrated. people talking about broken promises, people now concerned about what's the impac

i want to ask you about what we hollande,m francois angela merkel, matteo renzi today, it seems there marc: i'm not so sure. i saw the press conference, but if you combine that with the speech david cameron gave, which you have just shown on your program, i'm not so sure there's any consensus about timing here. keeps theat uncertainty going. mr. cameron said, we will not move forward on article 50 anytime soon, and the leaders seemed insistent they start getting going. one thing that will have to happen, people will have to follow the advice that came in your editorial in bloomberg today, to keep calm, take time, figure out what this all means, and i think as angela merkel said, there's no reason to be nasty here, no reason to be quick. if people can hold those thoughts in their minds, we may be able to go forward here without the confusion we have seen today, which has continued to roil markets and politics. matt: mr. ambassador, the concern is if they treat britain otherid gloves here, countries will see the opportunity and exit as well, so if britain doesn't have to deal with the p

we could see renzi facing a battle for his life later on this year and that is probably the last thing italy needs at this point in time. > thank you very much. tune in wednesday the night before the referendum vote. on thursday we'll have special coverage on brexit with a whole hour of fantastic guests including the house of lords member sir robert skidelsky all starting at 4:00 p.m. on bloomberg television. >> plus, the trend that you can't miss, next. >> what did you miss? well, they're making it costlier for banks to get funding. i was really interested in the conversation of are we seeing financial stress in the markets? this chart says, yes. this basically looks at how much more above it costs to borrow u.s. dollars through the swaps market. this is in basis points on the right-hand side of your screen. if you're a big bank, you have bad credit, you'll want to get into a swap because you'll need dollars. this is where you go to get it. typically you're right around zero if you just go over the last few years. basically it's pretty cheap. no big deal. the more negative you get the

and you and i were listening to him and you said -- do you think renzi will listen to him?nch? form, great, but imperative is different. >> politicians would love to do what he is describing because he will tell you that's what they seeing thatt we are he has some very strong ideas about how to deal with some of these problems with the constitutional referendum in the autumn, which is make or break. we have a frozen government in spain, a situation in france where the government is trying to do something quite minor -- it's difficult to get it done. guy: one thing that is a bit more positive, analysts get optimistic about profit of the earnings upgrades and downgrades are now up north of zero for the first time in the year. we have been in his period of low earnings growth for a long time now -- on the reversion basis it has to start -- is that true? >> so that has been very case , but you can't forever say it's a special case that is holding it back. it is important for europe and for markets generally that profit expectations rise. they are way below profit share and with

renzi, italy was there. they want a quick divorce and process sped up and done with. merkel has been what you might call the voice of calm even though she says there are consequences for the uk, she said there are consequences for everybody. she also went on to say they would probably have a bit of time and hollande agreed, that september would be the time frame by which the eu would want to know what the uk intends to do to begin negotiations which have to conclude within two years for the actual divorce. so that meeting today was taking lace in preparation for tuesday and wednesday in brussels. eu leaders are gathering in brussels. they will have a big meeting on wednesday. and that's where that issue you were just touching upon, possible contagion. there is potential for "brexit"-like discussion in the netherlands and as well as in france. that is what they're trying to cope with and put a stop to. back to you. >> very complicated. adam shapiro, thank you so much. david? david: a lot of people were betting big on the british exit. it paid off for one of those inves

the italian prime minister renzi has said we have to change to make the european union more human andore just but europe is our home. it is our future. the most important -- the head of the euro group and finance minister said the most important thing now is to provide stability for the eurozone. the swedish prime minister said the brexit vote is a wake-up call for eu. the bloc must show it can respond to people's expectations. arguably, too little, too late. across the board, leaders now are saying that, quote, something must be done. >> the surprise of the morning, not least the fact that britain has voted out of the european union but also the fact david cameron, the british prime minister at the helm, the forefront of the remain campaign, he has now said he'll step down. he'll resign as prime minister and someone else should be in place in around three months time. the autumn conference season coming up in october. interesting to see who takes over at the helm of this ship. >> to downing street. cnn's max foster is there for us this morning. max, never seen anything quite like tha

we understand he will be appearing on stage next to the tying prime minister matteo renzi, and he's going relations with the european union should return to business as usual. what we also understand is he is not going to offer any concessions. he's not going to yield to the west's demands when it comes to ukraine. how far that takes things, i'm not sure. what investors are watching is the russian economy. when is it going to rebound? the has a lot to do with russian budget, about half oil and gas. presumably the biggest factor affecting the economy right now for the economy minister is what happens with the price of crude. ryan: that's a right. $50 a barrel is ok for russia. we have seen over the last three or four months, the russian economy heading towards positive growth. it is still a negative territory. it needs to consecutive quarters of that to break the recession $50 ismove on, but really not enough to deliver in russia.owth everything is relative. three or four years ago, the russian economy was growing at 6% or 7%. great stuff, looking forward to your coverage out of st. peters

italy's anti-establishment movement is poised to win elections in rome, threatening to derail matteo renzi's reform agenda. italiany would give the house its first majority. putin is considering selling stakes and russia's state oil company to china and india as he struggles to his spending targets ahead of the next election. he needs to raise $11 billion from the sale of 20%, which would not only cover budget shortfalls but strengthen ties with asia at a time when strained relations are o between the euros in europe. the rupee has made it steepest incline since november after the central bank governor said he will be se stepping down. he said he will be leaving the top position when his term expires, and will go back to academia. global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . guy: thank you very much. a bit of breaking news out of south africa. mtn has appointed a new group president and ceo; we will have more on that later. let's talk about what's happening in europe. we ha

antiestablishment movement is poised to win elections in rome, threatening to derail prime minister matteo renzi'sagenda. the surge in for the eurosceptic party would give the italian capital its first female mayor. consideringin is selling a stake in russia's state will company to china and india, as he struggles to hit spending targets. this is according to two people familiar with the matter. moscow wants to raise $11 billion from the sale of almost 20% of the crown jewel rosneft. the deal would not only cover budget shortfalls but strengthen ties with asia at a time of strain relations between russia and the u.s. and europe. nigeria will drop its dollar peg after more than a year of resistance, giving in to the pressures that have battered its economy. say pent-up demand for dollars may push the naira 20% weaker. global news 24 hours a day powered by 2400 journalists in more than 150 news bureaus run the world, you can find more stories on the bloomberg at top . manus: thank you very much. haidi lun in hong kong for us. let's get to the asian markets. they are rallying. u.k. futures are up

even in italy, matteo renzi, shrugging. a big vote coming up on his plane, and he is struggling.s going to find it tough to make the stick. >> one of the fiercest that this increasing fiscal spending -- that's the big debate -- when does that come? things have to get worse before they start to get better, but i agree economic reforms are badly needed. but the population does not want them because it means it interferes with their way of life. matt: i was speaking yesterday -- a member of parliament in germany and the assistant finance minister, he was saying if he had $10 million to spend on stimulus measures, he doesn't know what you would do with it. all the projects they have had are already pretty much completed and the infrastructure is pretty perfect. do you think we will see any fiscal stimulus coming out of the countries that can afford it? i in terms of affording, think that's down to the budget rules that have been set by the european commission. in terms of can you spend things -- i agree to some extent that maybe there are some infrastructure projects that have gone a

of campaigning since labor leader was murdered.coxe in italy, a setback for prime minister matteo renzi in local elections. the candidate of the antiestablishment party was elected the mayor of rome. another five-star candidate was elected mayor of turin. in kabul, afghanistan, four people were killed when a suicide bomber from the taliban .argeted their minibus the taliban has recently increased attacks on civilians and afghan security forces. you can call this another stress test for india investors. the central bank governor announced he will leave when his term ends in september. since taking office in 2013, he has helped to make the rupees stronger. ryan isse speaker paul standing by donald trump despite a number of reservations. ryan said he had the number -- a responsibility to back the republican candidate. he said he will challenge trump if he does not abide by conservative principles. tom. tom: thank you so much. let's look at our data check. what a different market it is. futures up 24. now up 28. that is a huge move. dow futures up 213 points. even oil capturing. on to the n

you can see a photo of francois hollande meeting with german chancellor angela merkel, prime renzi,r of italy, matteo so quite a show of stars there. there is zero problem in europe, and that is the fact that there is not a real project, not a real alternative. it talks about angela merkel -- "they have run out of ideas. they do not have a project or anything to propose in light of crisis.litical anything to fill the vacuum. annette: many papers are saying a second brexit has taken place come this time after the euro cup, after england was shocked to fit by aslan. a lot of people are saying this is sport imitating life. of a out the front page french sports daily. they are saying iceland is an amazing team. keep in mind that iceland is going to take on france in the quarterfinal on sunday. you can imagine, the papers in iceland are thrilled about the score. let's take a look at the front page of a local paper. annette: can you just say that again? flo: i do not know if that is actually the way you pronounce it. how far will they go? is a lot of interest on the i-17. if you want to kn

one thing lost yesterday with the eu summit is that prime minister renzi tried to get merkel in germany to bail out this bank. okay? even though they have a bailout fund. we are in a crisis. this is time i want the eu and brussels to bail it out. she told them, no. but their banking system down close to 60% now. those are the things to watch to really make a difference in the market. >> horrific. yeah. the moves in the italian banks have been. we wondered what they protended. >> i think you have to keep in mind we're almost back to where we were before the brexit vote shock and also been at 2100 in the s&p. almost there. we have been there dozens of times. have not been able to make headway above it and another challenge going into a new month, new quarter. we'll see if there's more fuel in the tank after today. >> all right. everybody, thank you. appreciate your thoughts on today's market. good to see you. take care. >> thanks. >>> we have about 48 minutes left in the trading session here to finish out the month, the quarter and the first half of the year itemizing. dow up 202 right no

>> well, i'm hearing that a lot of the traders are keeping their ear to matteo renzi of italy who ist. i mean, look, the e.u. together with 27 other nations, fine, but what is strong, our markets, they are orderly down here at the new york stock exchange. in the aggregate we've now lost, what, about 800, 900 points over just two sessions? but if you're sitting there looking and saying, well, what am i out? nothing if you haven't sold, but you're looking at certain stocks you may own, the exposure,com, that is out there for u.s. stocks is pretty significant. i wanted to pick out a couple of names that not only fell terribly dramatically on friday, but are continuing to fall anywhere from 4 to, what now, about 8%. asset manager invesco is jusust getting slashed. why? it's a u.s. asset manager, but they have a lot of foreign exchange education ebb pose your. they -- exposure. they held a big position in the british pound which has continued to fall. lincoln national, delphi, charles schwab, american airlines, e trade, all of these names are getting hammered once again. so you're looking

connell: tomorrow on this very program, former mcdonald's ceo ed renzi will be on.is dangerous precedent. see how this market closes up this afternoon. up 187 points. the three-day rally continues. as we hand it over to trish regan. trish: like "brexit" never happened, right, connell? up 200. we'll see if it lasts. head of the cia says attack in turkey could happen here in the united states of america. he is warning that isis likely planning similar attacks in our country as we speak. this as a new "fox news poll" shows donald trump nipping at hillary clinton's heels. i'm trish regan. welcome, everyone, to the intelligence report. we have a whole lot going on. up 188. turkish police rounding up 13 suspects to the terror attack. we identified three suicide bombers that massacred 44 people and injured 230 others. they're russian speakers with

in italy, a setback for prime minister matteo a renzi.e city's first female mayor. a five star candidate with the elected mayor of turin. comeback by the golden state -- beating the golden state in the nba finals. the cavaliers are the first team to rally from a three games-one deficit to win the championship. points --es had 25 in 27 points. global news, 24 hours a day, powered by 2,400 journalists in 150 news bureaus around the i am a much andre. david? david: a big win for the heroes of flash boys. the ie x group gained approval to become the 13th official stock exchange, one that hopes to shield the risks in high-frequency trading. bloomberg's editor at large is live with the ceo of ie x group and you will see him first here on bloomberg. >> i am here with brad mohamed el-erian -- brad katsuyama. x receiveid ie approval from securities and exchange commission to operate and exchange, it received unconditional approval. why is the unconditional part important? >> there was a lot of speculation about how we would be approved. having an

prime minister renzi went to the st. petersburg summit and said we ought to the trade more with president. president hollande says we should question these sanctions and maybe take them off in december. there's a big debate in germany, and we saw it in berlin on thursday and friday between say two political parties, the sbd and the cdu over whether they should maintain sanctions against the russian federation. the europeans will extend them this week, but in december, right in the middle of our presidential transition, some europeans want to make a move to return to business as usual with russia. i think thankfully chancellor merkel has been giving every indication, and she negotiated the misunderstoodings with president putin that unless he adheres to them to the letter germany under her leadership will not relax the sanctions but there's going to be a big battle in europe and i think a battle across the atlantic on this issue, and we believe sanctions should be maintained. that's what effective deterrents is. third, ob

matteo renzi is facing the consequences with a referendum on voting in september. problem is that political turmoil, if you do not have someone who can start negotiating, banks in the u k and the city of london will start freaking out because you do not know what you are looking at. guy: angela merkel is trying to stamp her authority back on the european space, and she is doing it with brexit and with the italian banks as well. jon: fascinating news coming out of europe. a special thanks to francine lacqua in london, and of course guy johnson. live to the bloomberg terminal. we will be going back into that conference over in parliament when we expect prime minister david cameron to make a statement on the eu summit yesterday in brussels. david? david: alix and i are remarking how different parliament is from the u.s. congress. we cannot imagine that type of exchange going on here in washington. welcome back, charles. let's pick up on what prime minister cameron was saying. he said the british economy is in in comparably better shape than when he took over, but they

so it would be individual nation state heads of government like merkel, renzi, hollande that will decideed frost in brussels. thank you. >>> coming up, brexit and beyond. former congresswoman jane harmon will join us. she recently sat down with the imf managing director christine lagarde. we'll ask about anything we want because it's an unscripted show. "squawk box" will be right back. >>> welcome back to "squawk box." british politics in turmoil after the brexit vote and the fallout could have big consequences for the political race here at home. joining us now is jane harmon, current president and ceo of the woodrow wilson center in washington. she recently sat down with christine lagarde. good morning. >> good morning from glorious aspen. >> when you think about the implications of brexit and what's going on there, we've had lots of conversations this morning about the feelings around the world about the elites. how do you think it will impact the conversation in the election year? >> well, it'll impact the conversation. how it impacts the election will require some time. in political

prime minister renzi went to the st. petersburg summit and sid we should trade more with russia.ion the sanctions in december, right in the middle or our presidential transition, some europeans want to make a move to return to business as usual with russia. i think thankfully chancellor merkel has been giving every indication that unless heed a meres to them to the letter, germany, under her leadership, will not relax the sanctions but there's going to be a big battle in europe and across the atlantic on this issue and we believe sanctions should be maintained. that's what effective det. is. third, obvious -- deterrence is. third, we have to have a stronger nato as we move forward with deterring the russian federation and president putin and right now exactly five of the allies of 28 spend more than two percent of gdp on defense. that is the floor, by the way. , the minimal expectations. used to be three percent. but you spend two percent of gdp in defense. and it is true that 20 of the allies have inched up in their defense spending. ... >> >> there is a big set of challenges ah

renzi had to go to the eu again and beg for the exception on not using public money. >> all smoking mirrors>> what are they really needing to clean it up? 44 billion is like nothing. >> they need hundreds. >> $346 billion to clean it up. >> isn't it euros. it may be even more. >> you spread that around in the eu and it's not so bad. why does the uk need to -- why do they need to be part of that problem? >> people wonder why they left, right? that's the. >> the bigger issue is immigration, at which yesterday there was a plea from the uk to say look, if we could still be part of this union and not have immigration forced on us we would be okay with it. >> that's part. >> but do you think this is sort of the complete disintegration of the eu. >> yes. >> is that a good thing and what is the transition and how painful is whatever that is. >> transition will be unbelievable painful. equally as bad as leaving. that's the piece that really is scary. you have the five-star party. you have wilders in the neters lands. you have nationalism on the rise. you've seen great britain leave. >> is the stock