so silvio berlusconi is still feeling very much a victim not of just politics but the judiciary of italy, but it looks like he'll stand by the young mayor of florence. as i say these talks have gone on well into the night. we may see the midnight oil being burned there, but i think now as most commentators have been saying as the night goes on that we will only hear the appointment happens some time tomorrow. let's wait and see. i'm not going to predict thing anything in italian politics. >> if matteo renzi does end up as italy's prime minister what does that mean for ploy? >> i wish i could say. but the people i've been speaking to, including that couple we saw outside in rome earlier in the day, they think the system here is rotten. they've gotten so depressed about the economy, so depressed about i lack of jobs and opportunity here. they look in on rome, and all they see is a political circus where they keep changing the prime minister and nothing much happens to the economy. so i think most of all they're depressed. but if you speak to the most senior political correspondents who hav

in 2001, silvio berlusconi was replaced by the president. and was led to a point himself. now, matteo renzi may be. the people just want to vote their own prime minister. that is what letta wanted. he wanted to win the election. his approval rate is strong. first of all he says he needs to change the voting law. as it stands now, it's unconstitutional because ittal yeents vote for their open -- ilialians vote for their own candidate. >> interesting times for italy. >> that report from rome. >> an eemergency vaccination program is under way in northern kenya after a measles outbreak in a camp. the highly contagious disease is thought to have emminated from refugees from south sudan. we have that report from a town bordering the equatorial state of south sudan. >> this mother buried her son on thursday. he was sick sips an infant. he got measles, it weak eped his immune system he could not fight a pneumonia attack. >> translation: he was my only son. i have no husband. i thought hoo wee be the -- he would be the one to get us out of here. >> sick children have to be guarante

are not exactly happy with the fact that he struck a deal with the disgraced former prime minister, silvio berlusconi, on the ways to reform electoral law. we will have to see what kind of support he has. slower -- raised the alert system to orange for the first time. heavy smogn came as was forecast to roll into the city over the next three days. let's get more from our correspondent in beijing. she joins us by skype. what does an orange alert means of the population? >> orange alert means that pollution will be high for several days in a row. it means that production at factories is cut, at some factories entirely. some have to reduce. neighboring provinces and cities to beijing have also forced some cars -- odd-numbered license plates, for example, off the road. the government expects severe pollution for a matter of days. they will take some measures to back on pollution. red alert means that pollution will be above 300 for more than three days in a row. it seems that the air quality has been above 300 for several days in a row. the government has issued an orange alert. they are takin

and similarly arise people with the idea of depression even the very word depression in japan on silvio was a word that stood for major depression and so they built an ad campaign a slogan that would make it feel more comfortable for people because of people heard that word depression would soon be oh it meant it then something in a hospital something someone very sick and so they came up with a slogan. which means a cold of the heart or a cold of the soul that terminology meant several things first of all catching a cold is quite common you're not one of those crazies that has to be locked up it's a cold many people have it it's so many people have it then it can't be all that bad. secondly well japanese are big consumers of and ability and stuff and they meant to them cold that's treatable. can be treated with a product and finally the soul. sort of very very pointed and. really resonated very well with the japanese. it connected with how they felt. and so that really changed significantly the perception and created this concept of moloch depression. that physicians know started treat

over the position as premier pulls up this has been a tumultuous time for italian politics after silviousconi left and there has been a positive people did not know which party would take over, but finally, enrico letta filled up power vacuum. now he is resigning at the urging of matteo renzi. he is the head of the people's democratic party. letta did not get along. we have seen italian bonds at most -- at multiyear lows falling amid this power struggle for control. so again, italian prime minister enrico letta has said he will resign. he has sent the statement to president napolitano. for more, let's head over to hans nichols, who is in italy. hans? it is dark and we thought it would have the same radiant experience as earlier. it is obviously an exciting day here in italian politics. i will just walk you through the last 2, 3 hours. what we saw is matteo spoke to his party, and he thanked letta for his experience was about a clear indication that letta would be on the way out. but we had not heard from letta yet. now we have, he said he will resign. that means they will have to gather

starting in italy where battle former prime minister silvio burlesque tony -- sylvio berlusconni gavewmaker, allegedly using $3 million to ensure a member of the opposition switched over to sylvio berlusconni's people of freedom party leading to the collapse of the government coalition and helped him win the election in 2008. that senator now admits he took a bribe. it is not looking so good. over to me and mark, i thought it was burma, investing one billion dollars in boeing aircraft to revamp its aging national carrier. me and mark air is working with ge in upgrading its surface to various international destinations. the airline currently overflights one place overseas in india. something tells me we will see a lot more of that airline in coming years. landing in the u.k. where intense flooding across the country is leavvng a huge cleanup bill in the wake. the cost of clearing up the debris and repairing damage could top $1.6 billion. rain continues to bear down on parts of the country with flowing rivers now reaching the outskirts of london. some experts fear the weather could cont

florence bolstering that a coalition which is very brittle it's a grand coalition that extends to silvio berlusconi's party ok so the buttons on the spot see the thoughts that i yet have said that they will remain in opposition they actually broke off. the other center right grouping led by deputy prime minister unto thee nor final but of cos not that the prime minister to step down will have to see what happens in times of lindsay takes longer means that the nine year old hobby of florence a very handsome empty. i'm anxious to get in front teeth. this may mean that i will come a long day which translates to the dedication and b that she deals with the old and brings in new and that's what she wants to do this time round we left the scene with it. he creates the new government with the team will get the support from parliament will padilla house as well as the senate's he expects a fall in otago full back tomorrow cost will be his resignation by the current prime minister and the collective. semangat to reporting from rome the belgian parliament voting by presenting majority to him to ex

. >> what is silvio berlusconi's --e in all of this quest arc in all of this? >> he is still very much a player. he consulted with nicole itano as one of the leaders of the major parties. renzi needs to work with electoral on the reform law. that will be crucial to his success going forward. after they deal with that, this is sort of how cabinets and parliaments are formed, then berlusconi support is less assured, renzi may then faced fresh elections. >> thank you very much. had aernor mark carney clear message on the state of the uk's economy and interest rates during his first sunday morning tv appearance in the u.k. manus cranny is here. forward guidance, we knew that already. it is forward. >> it is phase two. jobs, wages, household, spending, they have got to rise before the threat of higher rates comes down the pike. economy, thereur is a world that exists beyond the perimeter of zone one or two. zone.beyond the london there is a united kingdom of great britain and northern ireland. >> what we are seeing is that there is a very big -- there are very big f

opposition, from moderates on the center-right such as his rty.rior minister's part political pals with silvioo pull inmanage dissidents from his own party, there were four dissections there, that explains the narrow majority. thank you, dan liefgreen joining us from italy. we will be back in a couple minutes. see you then. ♪ >> good morning, welcome back. you are watching "the pulse," live from bloomberg's european headquarters in london. these are the top headlines. ukraine's acting president says a vote on a national unity government has been delayed. was an opposition politician elected parliament speaker last saturday, he is now interim president. his challenge is to fill a government vacuum so officials can seek an economic aid package needed to fend off a default. we think it will happen thursday. german exports surged in the fourth quarter the most in three years, boosting an expansion and europe's largest economy. the german gdp rose 0.4%, supported by stronger investment. mt. gox is off-line, efforts to reach they bitcoin exchange site are directing users to a blank page. amid allega

. >>> meantime, italy's prime minister is set to meet with silvio berlusconi this morning. renzi is now the third leader in a row appointed by the president, not by the people which berlusconi has criticized saying it is not a democracy. renzi could present his list of ministers later this week. this has a number of key names, including the ceos of vodafone have reportedly turned down his invitation to the government. >> are you concerned about what you're seeing on the ground, on the political front? >> i think it's great that the markets are taking this positively. clearly, italy needs a bit of an acceleration on reforms. but then, at the same time, markets want stability and obviously renzi's 100-day plan is not really about stability. it's about upheaval. it's about really changing the system radically. we really take heart from the fact that the markets take this positively. it's a great investment for him. >> are you invested in italy? >> yes, we are. >>> let's get back to one of our on other top stories. the death toll in ukraine is now estimated at 25. this marks th