people, the renzi people --why didn't renzi want to do that?he government said many times they had to go to the polls are it give me probability of the five-star movement coming in the power. it loosens the chance of that because they need to focus on electoral reform which of the moment would give a populist party a boost. luigi: i think the chances in the short-term are very low. the president is going to government. they're going to do everything to avoid that. i'm not saying this is right. this is what they are going to do. i think the outrage of what they're going to do now is going to create the setup for a five-star movement victory. francine: outrage coming from what? luigi: the way they're going to rig the electoral system. you're going to watch the review electoral system was created to make renzi or bella stony -- or berlusconi win. a system designed to make it impossible for the five-star movement to win. i don't think that is the way you run a country. you should have electoral law that is right or wrong independent of who is winni

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 far right is definitely celebrating this result, but this "guardian" piece argues that those who voted no will not -- were not necessarily voting for the far right. renzi was suspiciously u

renzi. but the resignation of john key was very much a surprise. and the new zealand stock market was down on the italy news. after john key made his announcement, it ended the session lower by 3/4 of a percent. john key said he needed to spend more time with his family. and moodys said this will not affect the sovereign credit profile. in fact, fiscal consolidation has been very effective and gdp has been broadbased. qp in new zealand was running at 3.6%. we have central banks in focus here in the asia pacific region. we have rba meeting tomorrow and the asx 200 down. the nifty turned positive as they look ahead to the rbi meeting on wednesday with many citizens hoping that the rbi will cut interest rates in order to alleviate some of the short-term pain that many citizens have been feeling with the demonitization drive. we'll look at the hang seng. after a two-year delay, mainland investors can pick from 400 listed hong kong stocks and international investors to pick from 900 or so. those

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

matt: now, renzi quit. the italian prime minister announced he will step down after losing a referendum to enact constitutional reforms. >> it is clear that my government ends here. fornt to thank my ministers the extraordinary adventure and i will offer my resignation to the president of the republic. guy: the euro is at its lowest level against the dollar since march of 2015. francine lacqua is in rome. francine, what is next? we are watching who is going to be the next leader. padoan, canceling his trip to brussels today. >> i think that might be significant. in terms of padoan's future role, we do not know. he is one of the main names touted as a caretaker prime minister, or having a significant role within the next administration. however, he did cancel his trip to brussels because matteo renzi called on all his ministers to join him for one last time the 40 tenders his resignation -- last time before he tenders his resignation. we thought the no referendum vote would have been priced in. three weeks a

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

renzi that he was conceding defeat. is your current level here. have a look at the kiwi dollar, below $.71.p, with the longer-term chart, you can barely see that. you so much. the tie-in prime minister matteo quit afterg he will losing his referendum on constitutional reform. as we mentioned dropping to its lowest level since march 2015 as renzi conceded defeat, saying the people had spoken and he has lost. what is the situation now? yes, he has conceded defeat, a crushing defeat. there was a chance he could lose, but no one thought he would lose by this much. this means he is leaving. this means a lot of uncertainty for italy in the days and months to come. >> what happens next year? at this point, he will go to the president. it is in the president's hands. he will have to decide who will form a government next. there are some names bouncing thend, maybe perhaps finance minister or the speaker of the house, then likely the president will say that government has goals it needs to accomplish. one of those might be the e

renzi resigns.taly's prime minister stepping down after suffering a devastating defeat in last night's referendum. the market reaction straight ahead. actually, the results were last night. obviously they voted yesterday. >>> president-elect trump sounding off on twitter threatening to tax the goods of u.s. companies that leave the country and airing his grievances with china. not taiwan/china. we like them now all of a sudden. >>> and apple is admitting they are working on technology for self-driving cars. is that good or bad? it's monday, december 5, 2016. and "squawk box" begins right now. >> live from new york where business never sleeps, this is "squawk box". >>> good morning. welcome to "squawk box" here on cnbc. i'm michelle caruso can blare b. along with steve liesman who likes to drive. u.s. equity futures at this hour are suggesting a positive open. >> what is wrong with that? >> the dow will open higher by 76 points. so much about the fears of the italian referendum. they voted no as poll

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 out that way. hobnobbing with the privilege abroad helped to foment opposition at home. when we took to the streets of rome today, referendum no voters told us they had rejected their prime minis

renzi: exactly.bureaucracy, everything is difficult, everything is complicated and my idea is simply give simplicity to italy. in two years, we achieve some results. jobs act with a change for markets. civil rights, with the law for marriage, and new initiatives against the directive of public administration, new strategies for investments. now, italy is one of the countries with more presence of the national investors. -- with the presence of international investors. this is very important. charlie: this is what you think will be the result of a yes vote? more competition, more investment, less bureaucracy? mr. renzi: yes. and if i can use -- with yes, italy starts its future. in the last 20 years, italy discuss only about the past. the past is wonderful in italy. the most beautiful place around the world in my opinion, i'm sorry for other people around the world. this is an incredible place, but the past is not sufficient. we need a future because we are italians and italy is not all museums. charl

kelly: italy votes in no and renzi meets with the italian .resident today renzi's to feed is the latestthis year. and eu breakup is the long-term fear, so is that less or more likely than it was on friday? here with us is olivier blanchard hard, senior fellow at the institute for international economics. you have the dow at a record intraday closing high. what does that tell you about how the markets are interpreting what happened in italy over the last 24 hours? olivier: my sense is they are optimistic. it is probably why in the short run nothing is going to happen to italy. there is going to be some government banks that are going to go under and so on. it seems to me the signal from the results, not the fact that the no won, it was a 60-40 outcome -- my sense is less optimistic than the market this morning. kelly: the market is nowhere ofr where it was the stress 2012. where do we see a repeat of the european debt crisis we saw in 12? olivier: a lot of unhappiness is what we saw in the referendum. it is not only in italy. for slightly different reasons it is there, which means there

francine: renzi's gamble. the italian prime minister stakes his future on the results of a referendum. banks in the balance. lenders teeter under the burden of bad loans as the political storm brews. jobs data usa. a december hike is priced in, but investors scour numbers for clues. good morning. i'm francine lacqua with "bloomberg surveillance." we're live from rome. we look at the political fallout in europe. italians go to the vote on sunday. it is a referendum on constitutional reform, one that the government says will change .ow italy can reform matteo renzi has said he will resign if there's a no vote. what investors are worried about is the political stability of the future and what happens to the banks in case of political instability. i'm pleased to speak to two economists. 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

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

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

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 powers. for some, that is hard to grasp. >> it's a great question, isn't it? on the face of things what renzi was trying to propose here, streamlining the bureauc

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

renzi. francine looku all.lk about the brexit situation, french elections and the italian referendum. speech the first major that johnson has made since being appointed. organization nations meet their defense spending commitments are being discussed. brexit is a vote of democracy, not antiforeign rhetoric. the austrian voters head to polls on sunday to elect a new president. an election after the green party candidate won why it narrow margin. good morning. what is expected this time around? again.that anna: what is expected in this referendum, this time around? a close race.ave too close to call in our polls. it will depend on how big the candidate and which will win the votes from the mainstream parties this time around. anna: we have the independent going up against the freedom party. power does this role normally convey? it is supposed to be ceremonial but we have suggestions that that is not the case this time. >> it had been ceremonial traditionally because every incumbent so far has chosen to execute it

italy's prime minster has renzi isatteo renzi -- quitting after he lost a referendum on constitutional reform. court hasn's highest been hearing the government's argument for bypassing leave the in order to european union. prime mister theresa may is looking to overturn last month's decision from the high court. we are starting with reaction to the no vote in italy, what have the market been doing? market reaction has not been as bad as we had expected. markets had factored that result in already. stocks initially recovered. institutions will not change and that means less surprises for investors. all the markets closed up in europe. and in milan as uncertainty continues. the dow opened at an all-time high and is on track for a record close. goldman sachs and j.p. morgan have been particularly strong over the last few weeks, following donald trump's victory in anticipation of deregulation in the financial sector. in italy, what would happen to italy's banking sector? the sector is crippled by a burden of bad debt in urgent need of recapitalization. in of the largest banks is particular

renzi is staying.nary note -- one cautionary note, there is a plan b being discussed as a precautionary move for back to monte dei paschi. let's get to sebastian sarlacc with your bloomberg first word. sebastian: south korean president will step down in 2017. this, after opposition lawmakers said they might have enough votes to impeach her in a motion separate vote on friday. in france, the prime minister has confirmed he will run in next year's presidential election. prepare for the primary next month. announcing his candidacy, he warned the divided left it risks letting anti-european candidate mary le pen into office. measures that will help ease greece's debt burden. finance ministers meeting in brussels could cumulatively reduce debt by 20% through two 2060. at the same time, they insisted country about-- serious reforms to make sure the nation maintains the process -- fiscal reform. the prime minister could face her approach over to brexit. theresa may has said she will trigger exit talks by march

the only thing that unified them was to send a message to renzi, to vote against renzi.grouping according to one commentator. >> politics makes strange bedfellows, but it's ironic this referendum, not about italy and about making italy governor ball. it has not been so. we have had three in a row now. they can't form governments and maintain them because of the way the election works and how the parliament is structured. that is what this referendum was about, get rid of the power of the senate and give more to the house of representatives and make it a one chamber system. right now, every law has to go through in identical form in the both houses. they have a bloated government, the biggest for a country that is not the biggest in europe. they are well-paid paid, and matteo renzi was trying to clean them up. you have this five-star party 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 sy

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

renzi had said, we can discuss.ctoral could get a majority, could get enough votes to garner the majority of seats in parliament. that is possible because the anti-bank rhetoric which is quite primitive that has been spread around, that goes from mr. soros organizes a version from around the world to whatever series hype, could have an effect. not because people believe it but because people are dissatisfied, angry at the absence of economic progress, and therefore they might certainly need some long-term solution. from the university of chicago, they looked at the flight of italians abroad. will we see italians exit italy with this turmoil, with the renzi defeat and the political certainty of next year? will the youth of italy walk out the door? >> we have a problem. francine: i am so sorry, we have a technical issue but it was an extremely good question. tom wanted to know are we going to see more italians leave italy because of the political turmoil? drain is something they were talking about yesterday. >> there

renzi.e proceeded with the reform and every even dumb and he -- reform and referendum and he lost. what renzi was asking people to do was to say yes to a sweeping deep constitutional reform. what better way the vote could have gone, people would have voted in a way that's anti-establishment. charles: if someone says someone left a sensor saying why i'll step down. it wasn't enough of a deterrent to say we need if you there so badly we'll accept this. >> i think ways was a sweeping rejection of the ruling political elite in italy. the deep-seated unhappiness. 25% youth unemployment in the company. real income per capita has declined since 2000. the our so doesn't benefit italy. it benefits the germans. but for italian people the euro has been a disaster. this is a message to mr. renzi and the social elites, people are fed up with the stat us question in the country. also across europe as well. charles: in italy there is one poll out that goes, hey, it doesn't feel like home anymore. 52% of it

. >>> italy's instability today brings more uncertainty as renzi's resignation has been delayed. >>> and the united technologies ceo who went head to head with the president-elect said there was no quid pro quo for carrier. it's tuesday december 6, 2016. "worldwide exchange" begins right now. ♪ >> good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> welcome back. >> thank you. >> feels like a long week. >> did you miss me? >> i did a little bit. that's it for december now. >> i he was disappointed to miss the latest european -- >> you're here until christmas? >> for the rest of the year, all the way. new zealand, dollar move, i missed all of it. >> that was a bit niche, not for you, i suppose, but a bit under the radar. >> political instability over there as well. >> i'm wilfred frost. let's check in on the markets at this hour. >> u.s. equity futures after another rally yesterday where the dow closed up about 40-something points. >> another rally yesterday after declines last week for the first time in four weeks. >> since the election. we got a bit of a rally g

reporter: no to constitutional change and no to prime minister renzi.hat 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, italians are looking for someone to blame. >> euro looks after its banks instead of its citizens. reporter: on the campaign trail, destefano explains that the au is not the problem b

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

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

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 movement would do about the banks if they at some point came to power. listen in. >> translator: for sure one of the first measures we would like to approve is five-star government is a serious anticipate-corruption law. this process will include law

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

how soon could we see renzi's official resignation?orning, as you are renzi will call a confidence vote this afternoon p.m.bout 2:30 when he tendered his resignation on sunday night after the referendum defeat, the president asked him to stay on long enough for the 2017 budget to win final approval. this will be the final vote and at this point, renzi might be free to officially step down as president. let me remind you that at the he will address the senior members of the democratic , and you might say he is , but thisto stay could be the perfect audience for his resignation speech as prime minister. manus: that audience this afternoon was the party faithful . it will be an interesting one. it will roadmap where we go next .or italy's government there's lots of speculation about who might be anointed as the caretaker governor. are people saying that renzi would even risk staying? would he have credibility staying? i don't think he's going to stay at this point. we don't expect him to stay. is he willappen probably go in see the presid

succeedo is likely to renzi? who will succeed him? francine: we have 45 names that as renzithe same party including the finance minister. this is significant because we understand the president is looking at the transport minister, the head of the senate which he may think will ensure stability especially for the banks. we have about 45 names of people that would be trusted by the market. ofbably by speaking to a lot inking ceos. the current finance minister has been in charge for two years and he is top of the list. he was the one pushing and helping to reform a lot of these banks. the populist party is the one that is campaigning for the no referendum. it is looking very unlikely that -- or todent would ask take part in a new coalition. this may change but it does seem that the president wants to keep things stable. we would be looking at the market stress to take over from renzi when he steps down officially. anna: there is still the fact that the market perhaps saw this coming. that explains why we did not see equity markets falli

renzi told the president, it is not possible to continue in his post. seth doane is in rome. renzi, latest in a string of populist upsets. the prime minister said the people had spoken. he would turn in his rezing nation to italy's president today. italian prime minister renzi wanted voters to choose si, the reforms he argued would decrease bureaucracy. his case wasn't convincing enough. i have lost he said. and i say it out loud. although with a lump in my throat. renzi personalized the about on 60 minutes. >> it's become a vote about you and that's not good. >> yes. this is, was my mistake. in the first -- days of electoral campaign. i understand a mistake. the opposition celebrated the news, one of the loudest no voices was, the five stars movement. this vote here in italy continues this seen in the u.s. and elsewhere here in europe. >> yes. >> we asked louis university professor pier palabanino about the shock to the system. >> uncertainty is something that the mark doesn't like. and in a year there are a lot of degree of uncertainty. >> and this cr

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 passengers onboard a united express flight are shaken up, after the plane makes an emergency la

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

renzi personalized the constitutional referendum early on.rlie rose asked him about on 60 minutes. >> it's become a vote about you and that's not good. >> yes. this is, was my mistake. in the first -- days of electoral campaign. i understand a mistake. the opposition celebrated the news, one of the loudest no voices was, the five stars movement. this vote here in italy continues this anti-establishment mood we have seen in the u.s. and elsewhere here in europe. >> yes. >> we asked louis university professor pier palabanino about the shock to the system. >> uncertainty is something that the mark doesn't like. and in a year there are a lot of degree of uncertainty. >> and this crisis comes at a time of high unemployment and significant debt issues here in italy. across europe anti-establishment parties are watching this vote with elections coming up in france. and then down the road in germany. >>> at the united nations, russia and china blocked a draft resolution in the security council that called for a seven day truce around the syrian city

renzi's announcement of his resignation, we saw some selling across the board.gainst the u.s. dollar, very important barometer for what's going on in europe, fell to an 18-months' low, but as the european markets got up and started trading, we actually turned around those losses and saw this remarkable turn around, specifically when it came to italian stocks. worth noting, though, there is a lot of volatility here. at one point italian stocks trade up to the tune of 1% or 2%. now they are close to the flat line once again, so still a lot of uncertainty as to what happens with the italian banks, given the political uncertainty doesn't bode well for the overhaul of the italian banking center. the 600 index is up by roughly 3.3% and trading close to the highest levels in six weeks. why? because this no result had been factored in. it had been priced into the markets as market participants like to say, and also people are used to political instability in italy, so it would essentially be more of the same. another reason why we're seeing the european markets higher i

neck with renzi's democratic party.s in austria have endorsed a pro-european union path. theerbilin defeated candidate from the far right. that opponent advocated limits on the eu power. prime minister theresa may's cabinet has split over whether union for european access to its markets over brexit. boris johnson that declined to endorsed the idea. that suggests that may is struggling to develop a brexit strategy. in north carolina, the undecided election for governor could be decided today. democrat roy cooper currently leads the incumbent by more than 10,000 votes. a review of more than 94,000 votes cast in derne county is expected to finish today. ory says he will not ask for a recount if that shows the same results. global news 24 hours a day powered by more than 2600 journalists in more than 120 countries. this is bloomberg. mark: thank you very much. financial markets reversing a selloff once they realize that might be my -- might not be much contagion from italy's vote. it does signal worries about italy's growth

how realistic that renzi makes a comeback here and when? >> well, gentiloni is seen as a person to pull the party together. and there's been huge damage within the party with the referendum, you have different people on different sides. he's got to go away and regroup and pull the party together. i think the big fear for analysts is that the only beneficiary of spillover facts and what happens with the banking sector, and the fact that the country won't progress any further in times of economic growth is the populist movement. >> how do you view this scenario? and in terms of the health of the italian banking sector and whether we'll face a full-blown italian banking crisis or whether we're going to avert it? >> i think if you look at ecb on friday, we rejected the request to the payout or recapitalization. it means there's a bit more pressure with regards to the private sector. however, if we have a backstop from the treasury government to potentially step in, should private recapitalization fail, that could be massively positive. and more

. >>> italian prime minister matteo renzi losing the referendum vote.zi says he will resign following the defeat. julia is live in rome with all the latest. julia, yet another win for populism in the west? >> reporter: hey, carl. well, the honest answer is yes and no. let me explain, there was clearly an antiestablishment, antiprime minister renzi vote last night, but there are subtleties and they are very important. remember the thing about this referendum is, a yes vote last night could ultimately have made it easier for their five star movement, the populist party here, to get into power. a lot of people i spoke to over the last few days have told me they voted no to prevent that, so we did have an anti-prime minister renzi vote, but also an antipopulist vote, and i think this is the silver lining we shouldn't miss. let me bring you up to speed. 90 minutes away now from prime minister renzi's final cabinet meeting. he'll then present his resignation to the president. most likely outcome here is the president will accept. all sorts of names being thro

and is renzi's return on the horizon?rs tillerson, the exxon mobil ceo, for secretary of state. good morning. this is "bloomberg surveillance ."

renzi will hand in resignation at 2:00 p.m. local time to the president. the president can decide if he wants to accept the resignation or send renzi back to get the cabinet and budget through before calling on a general election in 2018. another option is snap elections. that could propel populous movement to the front of politicians. he demanded a vote within a week. another option is have a caretaker government and take government to people who are not politicians to hold things together until the elections come in a year and a half. >> so much uncertainty for italy. thank you, nina dos santos. >>> a terrifying landing for passengers in san antonio. the pilot declaring an in-flight emergency because of issues with his landing gear. that is next on "early start." or an airpor.. ia ...surface pro's perfect. fast and portable but also light. you don't do this 14 hours a day, 7 days a week... ...if you don't feel it in your heart. (vo) it's the holidays at verizon, and the best deals are on the best network. (both) yes! (vo) with no surprise overages, you c

people are questioning the wisdom of renzi's original statement if the vote is no. >> renzi did not have political future on it and he did and it was a mistake. he admitted it was a mistake but he is from florence. he loves, he is, you know a larger than life character, and these instincts, to play everything, you know, in i love to see him and donald trump in vegas playing poker together. reporter: people are saying that the election of donald trump as next president of the u.s. has energized protest vote, creating a movement for unseating the status quo you but ironically renzi wants to change the status quo. disgruntled are saying they want change but will vote against it. former prime minister silvio berlusconi and other names of the past joined no campaign leading in the polls. some say they are emboldened by trump's victory. >> silvio berlusconi would not play the role he is playing, on television every other day, he looks rejuvenated, excited, look, after all, donald trump is only 10 years younger than i am. maybe i got another chance and i think, for silvio berlusconi, donald tru

because prime minister renzi promised to resign if the no vote wins.o it's also become a de facto confidence vote on renzi, and a way for all of the other political parties to club together to try and oust him. in addition to that, the technicalities of this vote are pretty complex. leaving a number of people questioning to what extent voters truly understand the full implications of their decision. >> the problem is the intertradition. the referendum is different. >> reporter: it's no surprise, up to one-third of people here are still undecided. whatever the reach for the vote, the result is clear. a no vote means prime minister renzi will likely step down on monday. then it will begin for his replacement. renzi will likely hold the fort in the short-term, and this is important. but as the country's finance minister pointed out just this morning, the uncertainty created by that no vote could put more pressure on bank stocks in particular. this is just one of many votes in europe in the coming months where both protest votes and populism could play a p

possiblyister renzi staking his political future.austrian election this time. manufacturing and services comes out at 10:00 a.m. on monday. --": "with all due respect just run the day. john: i mark halperin. >> i'm donald trump. mark: this is mark halperin. john: i'm john heilemann. >> with all respect do. mark: "with all due respect" to chipotle -- two lisa kudrow west.two kanye mark: chris christie. john: yes!

saying it's an ultimate showdown between renzi and grillo. you have an estimated 07% of ittaliance living aboard, 40% believed to have voted already. an estimated third italians are up decided at this stage, so still difficult to call. >> and a very busy weekend for you. let get out to managing director trusted sources joining us. thanks so much for taking the time. you say the markets are overplaying the significance of this referendum. why? >> because the referendum does not represent a critical path to any particular result. for example, the italian economy ministry you just quoted saying the kn no vote is what they're expecting and that's what the markets are betting on, which is different than the brexit, but if the no vote does win, you heard the minister saying that would make more life difficult for the banks. probably it would panic the eurozone authorities to relax their rules on state aid for bank recapitalization and their insistence on bail-ins in the process of restructuring banks. but it doesn't lead in itself the referendum to