the spd is in this array. martin schulz is struggling to persuade the party to follow him into a rerun of the grand coalition. let's have a look. >> marshals has been traveling around the country, trying to convince people that the spd must carry out its political responsibilities. but not everyone agrees with him. >> you are straighter. -- a traitor. >> shame on you. important thing that we have achieved in these political negotiations is this. we have now created an excellent opportunity to move europe in a new direction. that is something i will campaign for. >> and i am certain that we will be able to turn this headwind into a tail wind. >> but youngerer spd party membs are turning away from schulz, mostly because t they are opposd to a a new grand c coalition. we are convivinced that ththis coalition would threaten the existence of the spd as a political party. the social democrats are divided as never before. does this signal the end of the spd? question.big does it signal the end for the spd? after all,

there's no spd topic which was pushed through against the cdu martin schulz's spd wanted higher taxesmore refugees into germany and a commitment to a united states of europe. nothing of that is in that blueprint which now serves as the basis for the coalition talks. so bottom line is that there's a commitment of no tax hikes also for the next four years. there's a commitment of a refugee cap to no more than 180 to 22,000. and there's a commitment that those refugees with alimite limd asylum status are not allowed to bring family members to germany. bottom line is all these voices who claimed that angela merkel is in a very big negotiation position may have been proven wrong. because it looks like the cdu and csu clearly won that negotiation over so the big question now is how will martin schulz be able to actually convince his party members to vote in favor of coalition talks for a grand coalition. he needs to do that. he has a busy schedule ahead of him. january 21st is the next milestone. that's when the spd delegates have to vote on whether to formally start coalition talks with an

now she has been forced to other old partners in the spd. they have.llow these talks to begin, pretty close. tighter than people thought it was going to be. it looks like they are going to be. it looks like they are going to be. it looks like they are going to go ahead. the betting is they will probably do a deal. what would be the price of that deal? what programme will this new fourth government led by angela merkel have? there is lots of speculation, maybe it will be more european integration, more health spending, it looks like it will probably be quite influenced by what the spd wanted, because merkel has nowhere to go now, this is her last chance. she has listen left a slightly wea ker she has listen left a slightly weakerfigure she has listen left a slightly weaker figure because of this. she has listen left a slightly weakerfigure because of this. she has been awful powerful in the eu for a long time, but this has been a bit of a knock back for her. it has been appalling for her. in fact her party, the cdu and the spd did very badly or relative

spd leader martin schulz had this to say today. martin: as a social democratic party, we go into these coalition talks with the aim of giving germany a new government that not just improves the lives of the people in this country, but fulfills germany's international obligations.. with a view to the e.u. and the unity of europe. we will lead the discussions tonight in that spirit. brent: we want to pull in our political correspondent, who is outside the headquarters of the christian democrats, angela merkel's party in berlin. good evening, simon. what can we expect to come out of these talks? the leader of the young wing of the spd says the coalition can only be a repeat of the past four years. simon: yes, brent. although there has been a decision by social democrats to press ahead with full coalition talks with angela merkel's conservatives, we are going to have to be a little more patient, as the spd saving the more time -- say they need more time to decide how they will appreciate these talks, with what team. they will come to n

if you're a member of the spd, you've seen your poll number slide under the next coalition what's int for you and do the policies mean enough to you to subrogate that popularity? >> i think in the next term, with the angela merkel -- it will be in one hand, survival of the party. >> as opposition as well >> even as of opposition even if they go to the election, there's a chance it could crumble or fall back into place. at the same time, the government can get across what they want to get done and sort of, from the preliminary agreement, that started in january, it -- for the spd, i'm not sure coming away looking so good in taxation and health care they still haven't gotten all of that nailed down. >> let's talk about europe more widely, president emanuel macron pushing on the policy that he's been a proponent of. merkel has her plate full in terms of coalition talks does that leave macron in a position in terms of driving an indication, that she's going to take a more backseat too >> i think whatever happens going forward, we'll probably see a new government that we haven't quite see

blocks on the side of the spd.any members are unhappy with forming another government coalition with the conservatives . so there is an obstacle. with regard to what has been paper ishis 28-page already quite detailed. we should not expect any surprises in terms of policies during those negotiations. seehat are we likely to from uggla merkel in the coming weeks to make sure that she -- angela merkel in the coming weeks to make sure she stays on as chancellor? greeley is she has been very much in the background. talks, as well as the previous failed talks between the conservatives and the greens, she did not appear as the leader. she was working in the background. stitch trying to compromises where there needs to be compromises. there is no doubt she is the leader of the party. would be toority get the social democrats on board and to do so through cumbersome negotiations. chance she could not be reelected, re-chosen? if the party base of the social democrats refuses to endorse the coalition, then we are back to squ

guy: the spd has a party conference on the 21st.y, they know that that is a high hurdle they have got to get over in terms of getting the party membership on board. what does that mean in terms of the outcome here and what they need to get out of the negotiations? indeed one of the biggest hurdles. 21stpd will decide on the to enter into negotiations with the grand coalition. at the end of this, the party members will -- there are two big hurdles. what does this mean? they obviously will look at what the spd has presented, but it is not so much really for what is part of the coalition agreement. they have got something a lot out of the last coalition, and this does not help them. the convention is much more about the dynamic. what is going to happen. take over thets dialogue, and will they be able to swing the mood? the party leadership is united. they want to get it through. , andase is very critical it is a lot what the mood will be. matt: january 1 is really -- january 21 is really the first of many stumbling blocks. this could s

to the spd, orban's visit is a slap in the face.etheless, they make a point of openly supporting orban. >> without any doubt, victctor orban respects the rule of law. reporter: in a newspaper interview, spd leader martin shilts complained about the csu meeting with eurosceptic orb on -- orban, warning about his refugee policies. in their meeting at a monastery, the csu is showing on aggressive stance. this could prove difficult for the upcoming coalition talks. anchor: our political correspondent joins us from the csu party conference site. inviting victor orban to speak looks like angela merkel's political allies are trying to sink political talks before they even start. analyst: let's put it this way. angela merkel very well knows her political allies, who gather here once a year to essentially make a lot of political noise. that certainly happened today. inviting victor arman is a provocation for her, but more so for the social democrats that she hopes to put a political coalition together with. having said that, these are very s

for their part, the spd had very mixed reactions.e of them were saying that at this point, we have to negotiate until they squeal. really want to get as much as they can. it's going to be difficult going forward. briefly, what could go wrong from here? although we have this agreement with the spd over the weekend, they put in place another hurdle to relieve fully formed coalition governments? matt: exactly, this agreement was voted on by 600 delegates. over the next couple of months, the 400,000 party members, the base, will vote by mail. some of them might not be so keen for the spd members in government. they would like to go into opposition now. anna: let's bring into the conversation richard. he is still with us. the spd voted this through. there are these other hurdles that we need to get through. the euro getting a little bit of a boost. what does this mean for euro zone assets to you? micro implications or material? it may be material if it carries on for too long. investors get the idea that french parties begin to -- parties

it is under no circumstance clear that the spd and, in particular, martin schultz, will give the greenight when they have the party conference. i would say from all of the parties involved, conservatives and social democrats, the social democrats have the most difficult part ahead. phil: briefly, if talks fail, or the membership on either side rejects any deal, what happens next? reporter: germany would be faced with a minority government led by the conservatives are would have to go to fresh electctions, but fresh elections is something that basically everyone in germany wants to avoid. that is why the pressure is so high in the hands of these coalitions to try to find an agreement. phil: thank you so much. so, what do people think? well, dw has been on the streets asking people how they feel about the outcome so far and what they are expecting no. -- expecting now. >> i think it would be good to have a grand coalition sin. the one we had in the last few years was not too bad. >> i'm glad it's finally over, that they could reach an agreement. >> in general, i am not so keen on the gra

the spd? out of this agreement? i think certainly they party.ary they probably don't want to destroy what is left of their leadership. there is a widespread feeling that they don't really get much out of it. then there is not a big investment hike, there's tax cuts in an area where clientele of the spd strictly sits. -- typically sits. it is an agreement that has a lot of christian democrats feeling as the merkel's party's footprints. socialiststhe young in the spd that are causing the problems. what does that tell us about the future trajectory of the spd? guntram: they want to increase their profile i'm being tough on the leadership. this guy is playing it really well. certainly, it is a clear declaration from the younger generation that they want generational change. the direction, again the party is very divided, like many social democrat parties across the world. on the one hand, people say we have to move to the left. we have to become left-alternative. basically we have to move to the center and captures the centric vote. it is that fight

new talks between angela merke'' s christian democrats and the spd.y promise a new type of politics. can they deliver? a vietnamese oil politician captured in germany by his government's secret service. he goes on trial. and the bomber of the soccer team bus confesses to the attack but said he never meant to hurt anybody. plus, women take center stage at the golden globe awards. a sea of black dresses set the stage on the red carpet as hollywood says time is up for sexual predators in the entertainment industry and beyond. ♪ brent: i'm brent goff. it is good to have you with us. the first full working week of 2018 has begun and in germany they are hoping for a new government sin. the country's main parties have been holding talks with the hope of creating a new government. the social democrats and spd have been promising voters a fresh start after they scored horribly in last year's election. and there were children offering blessings for the catholic feast of epiphany. correspondent: a rare moment of distraction for angela merkel as she received a vi

he is all of a sudden the most loved spd politician.if you want to be famous and popular, you have to be minister of foreign affairs. this is what he did and his opinion polls went through the roof. if this was a no on sunday, it would mean access for him, for schulz, a completely new generation in the spd. guy: philip lane, a hugely respected economist, joining the possible vicend, president, possible chief economist in waiting, is warning that a very hard brexit could have significant financial implications for the eurozone as a result of the wholesale funding story coming out of london. ground your ear to the telling you about how worried the ecb is about that potential funding story? carsten: on the funding story, they are worried. they are concerned. the ecb is not so concerned about the economic impact from brexit, but this means there would have to be a good transition period. if there was an abrupt exit, there would be a funding issue. in the experience of the ecb the last decade shows the ecb has the tools in place to react to

that's what today's decision of the spd allows.hat with party leader, martin schulz, convincing the conference to support the idea of a coalition, talks to form a government could begin as soon as tomorrow. his view is that if they can pull this off, if they go into government, in his view it's the responsible thing to do to try and form a government, but that it's possible, in his view, to renew the party within that coalition, but their task is going to be huge. they are very low in the polls, they will have to distinguish themselves from mrs merkel‘s conservatives if they are to try and rebuild their electorate, many of whom, of course, disappeared off to vote afd, the far right party. there is a lot of work to be done, and he's going to have to do something to unite the party, that is if they still want him as leader, because of course he has presided over this real controversy. worth just pointing out, when it comes to coalition talks which will take place later this week, if and when the two sides can get some kind of deal dr

those include a lot of the spd wish list items they have been pushing for.ngela merkel's party and her sister party, the csu, agreeing to those terms key things like switching germany's energy sources to 6 5% renewables by 2030 fresh tax relief they will end arms exports to countries involved in the yemen conflict primarily targeting saudi arabia there's going to be a ban on genetically modified plants. this is one of the real big sticking points, refugee numbers coming into the germany. the spd wanted to leave the open door policy, by they are now agreeing to a limit of 180,000 to 220,000 refugees. the big milestone is the 21st of january when martin shuchulz wil be trying to get approval from his members to pursue formal coalition talks with merkel. >> what do we expect the position to be between these two if they do formalize this coalition in terms of european integration? will they take the macron stance and want deeper fiscal union and things like that will the success of some of those further right parties in the election, will the success of those pa

now, the spd, having lost a lot of votes in the election, i have doubt. agreement that was reached on friday really very modest. it does not give the social democrats a lot of what they asked for. they asked for a fundamental recall of the health system. they asked for the united states of europe. matt: you are naming a couple of things that sound are most -- that sound almost impossible. do you think the paper that came out -- referring to a doctrine the came out for the preliminary agreement -- does it lay out a good plan for germany because the economy already going very well. politicians want to see news that ensures that success is stable over the next five to 10 years. >> it will be stable over the next four years. this agreement love that the next four years and says, how much money can we spend? fouris beyond the next years is a major concern. matt: we do have this incredible surplus -- i don't know if it is incredible. i should not put that modifier on it. there is a surplus and people have been saying it should be used for reducing taxes, really

what do the young members of the spd want?talk about that, i am joined by and at the close -- anika close, share of the young socialists in berlin. give me your take on where things are right now. do you think martin schultz is going to be able to convince the party, the grassroots level, to say yes to this grand coalition again? anika: i think it is a really open question at the moment. it is difficult to tell if he is going to be able to convince them or not. the young socialists are totally against a new grand coalition. brent: what do you want? anika: we want a strong social democratic party. we want politics in germany that support social justice. brent: the last election, you had your historically bad, low turnout for your party. anika: exactly. we had the worst turnout after coming out of the grand coalition for four years which we had. we went into this grand coalition with the same debate. can we support our project and values in this coalition? after four years, we notice that we have the worst outcome ever out of th

you have given a good introduction into the problems, the spd, wondering whether they will continue int disappear from the screen as it were as an independent political identity. actually, looking at germany now, if she was an ongoing concern, business, it would be time to issue a profit warning, frankly, about the health of their political culture. because the problem the conservative party has, merkel and her cohorts, they have gradually destroyed conservatism in germany for the purpose of forming coalitions. getting more and more left wing, left of centre ideas on board to the extent that nowadays you rather have a situation where there's very little difference between the two major parties. one of the reasons we keep returning such indistinct election results is that people cannot differentiate between these two parties. they have become so much a mishmash of general ideas. the conservative party has become somewhat left of centre. the punishment is there. they scored 33% in the election. they are about to disappear, already down to 20. latest polls say they are sinking evermore. t

that's what today's decision of the spd allows.ks to form a government could begin straightaway. his view is that if they can pull this off, if they go into government, in his view it is the responsible thing to do to try and form a government, but that it is possible in his view to renew the party within that coalition. but their task is going to be huge, they are very low in the polls and are going to have to distinguish themselves from angela merkel‘s conservatives if they are going to try and rebuild their electorate, many of whom disappeared off the boat afd, the far right party. there isa boat afd, the far right party. there is a lot of work to be done in years going to have to do something to unite the party. —— vote. worth just pointing out that when it comes to these talks, which as i say will take place later this week, even when the two sides can get some kind of deal drafted, the party base, all 440,000 members of the spd will have to approve it via postal ballot before a coalition can be formed. mrs merkel is not reall

it is interesting about martin short, in september the spd did very badly. having been in the party and martin schultz said i am not going into any more coalition 's. however it seems as though he has soft and that view —— softened that view and they will talk about the detailed coalition arrangement where there will be a lot of concessions from angela merkel to keep him on side. then the detailed agreement has to go to the spd membership, six months after the election, the membership may throw it out. she has gone almost certainly from hero to zero. there has really been a vacuum, who has stepped in to its? emmanuel macron. bsp to very many places. he has even hosted president trump in the eiffel tower. lots of people said they handled him very well. let's have a look at expressed. —— of the express. what he said about the french if they ever had a chance to have a referendum on the eu, he thought they might vote for frexit, as it is known. will that happen? hasn't given them a choice any time soon. the point was he gives it will a binary choice in the refe

that's what today's decision of the spd allows. to form a government could begin straight away. his view is that if they can pull this off, if they go into government, in his view, it's the responsible thing to do to try and form a government, but that it's possible, in his view, to renew the party within that coalition, but their task is going to be huge. they are very low in the polls. they will have to distinguish themselves from mrs merkel‘s conservatives if they are to try and rebuild their electorate — many of whom, of course, disappeared off to vote afd, the far right party. there is a lot of work to be done and he's going to have to do something to unite the party — that is, if they still want him as leader — because, of course, he has presided over this real controversy. worth just pointing out, that when it comes to coalition talks which will take place later this week, if and when the two sides can get some kind of deal drafted, the party base, all 440,000 members of the spd, will have to approve it via postal ballot bef

delegates from the social democrats, the spd, will vote on whether to enter formal coalition talks withrly four months after the country's election, angela merkel has still not managed to form a government and many in the spd are anxious about entering another coalition, given their vote was eroded in september, after four years as thejunior partner. thomas, martin schulz has been travelling the country trying to sell the idea. trying to rally the support in the run—up to sunday's vote. trying to rally the support in the run-up to sunday's vote. you have givena run-up to sunday's vote. you have given a good introduction into the problems, the ten juanma, given a good introduction into the problems, the tenjuanma, wondering whether they will continue in government with merkel and they might disappear from the screen —— the spd, wondering whether. rigging and germany, if it was an ongoing concern, and germany, if it was an ongoing concern, business, would be tied to issue a profit warning —— looking at germany. frankly about the health of their political culture. the problem their politic

that is the name of that coalition -- it is political slang for the grand coalition the tween spd andhe cdu party. the vote was extremely close. it will be remembered as a moment in german politics. it saved germany from having to go back to the polls which would have been a disaster for the country. it is a statement on the waning popularity of angela merkel. >> how has the german press been reacting? >> they have been pretty critical -- one paper says -- the general feeling that the other party averted what could have been a disaster -- the spd .eader won but not convincingly one tabloid went further and said this is a total loss for sc career. the party leader finds himself weakened after the congress and his career as leader is uncertain. only a few days away from the games in south korea. a popstar made a visit to south korea. >> she is not just any popstar. she is the leader of the north korean spice girls. they have been dubbed that. -- she was hand-picked by president kim jong-un. they are rumored to have had an affair dating to their teens and it only broke up because kim jon

is a likely they will be happy enough for the deal to close -- the spd?there are a few things in there be spd will like, moreurope, but they have spending for the eu. gotax issues, they have sort of more reduction of sociales of the solidarity surcharge for incomes -- small and medium income earners. there are elements which the spd will like but they have a bigger problem, they are worried that another angela merkel coalition will squeeze them further in the public opinion. this is a decision spd members have to make, do they want another grand coalition which will make them not look good at the end, or will they run the risk of new elections? nejra: our -- thank you so much. for more stories, pick up the latest edition of bloomberg businessweek. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate

what does it tell us about the csu's relationship with the spd?nternal bavarian purposes to show that they are not falling with political correctness with tentative views. that does not have any bearing on what they are doing in berlin. this is grandstanding. matt: how much longer does he have an office anyway? daniel: exactly. is anyway not very strong right now. they are below their target of 50% in the state of bavaria. you have to read everything in this local prison at the european level. there is no alternative for germany to play a strongly constructed role in europe. which i havee consistently taken ultimately in berlin and brussels. forget about what is happening in bavaria. matt: is this the end? i mean, the writing on the wall is clear for him. what about angela merkel? she has been not only the , and in somermany sense, of europe, but at the g20 in hamburg, she got a standing ovation when she walked into the philharmonic as the leader of the free world. could this be the end of her career? at least the dusk of angela merkel? it happens

that's what today's decision of the spd allows. stay with us on bbc news.men around the world have been on the march. in las vegas, they're protesting donald trump's presidency and trying to persuade more women to stand for office. the people of saigon have just heard that, at last, there is to be a ceasefire. the reaction of american servicemen was predictable. i'm going home. demonstrators waiting for mike getting and his rebel cricket team were attacked with tear gas and set upon by police dogs. anti—apartheid campaigners say they will carry on the protests throughout the tour. they called him the butcher of lyon. klaus altmann is being held on a fraud charge in bolivia. but the west germans want to extradite him for crimes committed in wartime france. there, he was the gestapo chief klaus barbie. millions came to bathe as close as possible to this spot, a tide of humanity that is believed by officials to have broken all records. welcome back. this is bbc news. our top story this hour. us senators have postponed a vote until monday afternoon that could h

cdu and sps -- spd have commented.erkel has said she wants explore terry talks to be by the end of this month and negotiations to take place after that. thegems were on show at palace and a gang seized a jeweled brush and a pair of earrings. the collection is a renowned exhibition of indian jewelry and precious stones. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. guy: thank you. let's talk about what happened yesterday with fed minutes. the fomc remains unconcerned about continuing flattening of the yield curve. the spread has narrowed to 50 basis points. at the lowest since october. let's talk about central banks and get an idea of what 2018 will bring. income. a fixed let me start with you. bill gross is worried about the flattening curve. the fed is not. who is right? >> the field -- the yield curve -- there were 66 quarters of and theng yield curves 40 seven quarters of steepening yield curve have averaged 1.47%. it is a much better an

mark: the spd calling for further concessions on health, labor, immigration. palatable is that for merkel's block? demands are quite heavy if you look at it. they are going at the heart of the labor law and immigration which is contentious with merkel's bavarian sister party. and also an issue which has been long debated in earlier talks of health insurance. if you look at the small print you will realize the spd has put the bar low and they have opened a lot of opportunities for a deal. they have not made this into a real hard-line. some people say if we only get one of these three issues, we will be happy. mark: thanks for joining us. the latest goings-on in attempts to form a coalition. vonnie: attempts at governing here too. they are not working out at the moment. pictures of house minority leader nancy pelosi. she is holding a news conference. the senate is scheduled to take a procedural vote at noon eastern that could end the government shutdown. the senate went on recess for a while for members to talk amongst themselves. they were due to be back around

and the spd on the left. they are pro—refugees. december, and that means the first time ever, the al—mohammed family gets to experience a german christmas market. cheering and applause. 0n radio: ..0pinion polls are turning, people are getting more and more worried about what we will do about the massive influx of refugees into the country. we're looking at 1.1 million... today in gera, a demonstration by pegida, a far—right protest group expanding all over germany. chanting in german. "abschieben, abschieben," is "deport them". "people should go to the toilet in front of refugee homes." speaking in german. we are allowed to film... excuse me, can you stop blocking our camera 7 the black and the white, i won't touch it, the black and the white are northern prussia, and the white and the red are southern prussia. i'm here because i love my city, i love my country... what are you worried about? i am worried about my family. i am worried about my race, the german people. they lose their normal blood. so the crowd is shouting now, "we

out of the second biggest party to continue the coalition talks it just means the coalition talks the spdl have more talks. it was a massive and crucial step forward but it was close. and it's not a done deal yet again, it's another factor that merkel herself will likely be weaker in the next decade than the last decade. >> they're not quite where we are. >> exactly exactly. and compared to other countries, any is better. >> exactly >>> to political news, vice president mike pence is meeting with israeli prime minister benjamin netanyahu in israel the vice president is receiving a warm welcome from the government which has praised the trump administration for recognizing jerusalem. the decision has upset israeli and palestinian allies >>> back in washington, the government shutdown enters day three this morning john horovitz joins us from d.c. good morning, john five days, 21 days, 16 days, respectively if we last as long as the latter two, 21 days and 16 days, take us through what we likely will see in the next few days and how it may affect the economy and the market >> well, i think wh

the news will complicate talks with the spd the spd called for increased taxes on the wealthy >>> theang seng surged past the 30,000 point mark to hit a decade high. the index was boosted on optimism on h share reform mainland companies listed in hong kong can convert nontradable shares into free-floating h-shares >>> you can see the hang seng was up almost 2% in overnight trading. another story from china, the manufacturing sector grew in december hitting a four-month high the market pmi rose to 51.5 beating forecasts. higher prices for raw materials mean input costs continue to rise jonathan fenbi from t.s. lombard joins me on the show so we had strong manufacturing numbers out of china for december i want to talk about the general growth outlook for china going into next year it seems on one hand mr. xi jinping wants to focus on de-leveraging the financial sector but also keep the economy underpinned. what is your view for this year? >> this is the big question for 2018 for china the balance between a degree of tightening, which i think we'll see, supply side mechanisms to bring do

investors away from hikes in asia since the best start since 2003 >>> and there are greater worries of an spd rebellion and signs of a division between a deal with angela merkel conservatives. >>> good morning, everyone it's monday. it's martin luther king jr. so the u.s. out for today the hanover from asia was a little mixed we did have a strong session in top topix. different picture in china, we'll get into some of those stories in just a little bit as you can see the hanover is grim when it comes to the stocks, the market is opening 10% weaker let's get to individual indices. the number one story in uk this morning is the yen inside administration according to the reports from the bbc there are three banks that have sizable exposure you can see the ftse 100 is trading in the red this morning. in fact, that say theme across the board. you can see every single european index is trading in the red. i did want to alert you to dax as well. with the talks taking place, but the picture is quite grim. media leading the charge up 6% beverage is up .2% to the downside, health care lagging, and 0.6%

the spd will negotiate hard to do that, while the conservatives have hinted limited room for maneuveringe talks are expected to start this week. javier is here now. the business and political elite gathering where the air is thin and cold. javier: we are talking about. those. many of the world leaders are there to speak at the meeting of the world economic forum. the prime minister of india defended more cooperation between the worlds largest economies against what seems to be a protectionist approach by the current u.s. administration. his message was also a clear promotion for his own country, which has seen steady growth. it wants the world to know it is ready for more. it is the first time in 20 years that the head of india's government has come to davos for the worleconomic forum. he has brought 100 executives and six ministers within. his message was simple, warning against the protectionist tendencies of some countries. he is diametrically opposed to president donald trump, who has imposed punitive tariffs on a range of imports. >> many societies and countries are becoming more an

. >> there was unanimity from everyone but we have to go to exploratory talks with the spd to build a stable government. >> within her conservative party, people are saying that angela merkel will last another four years at the most. no one discusses this openly, but many are thinking about the time after merkel. intentional successors now have to position themselves. at the same time, merkel pass to plan how she can hand over power without losing it too fast. so what is the next step? there are a lot of unanswered questions. >> what was the first question? oh. and have a great start to the new year. >> whether that turns out to be good or bad, 2018 will certainly not be boring. phil: we all have days like that. i'm sorry, what was the question? president trump has a promise of tax reform that would be a win for companies, but not all companies are fans of it. >> at first, it was seen as a win. some corporations are saying there are nasty surprises in store. you would think those countries would enter the new year with a sense of glee because on paper, the tax reform hands them a tax

many coalition deal still have to be voted on by spd party members.esidents living close to the banks of the river seine art evacuating amid rising floodwaters. the water flowing through the french capital has been swelling due to heavy rain. water levels are expected to reach their peak over the weekend. turkey's president has revealed plans to expand and offensive against kurds in northern syria, despite widespread international criticism. today, he announced that turkish forces will head east from an enclave in syria, toward the iraqi border. ankara wants to drive kurdish fighters out of the region, that there is a risk that the confrontation with u.s. troops stationed in a town -- they are allied with the kurds. the united states has raised concerns over the operation, and asked turkey to limit the military actions. turkey's president appeared to brush aside objections from washington. here is what he said. resident erdogan: we will continue operation olive branch, in its seventh day today, until all our goals are achieved. we will read the area o

the head of the spd saying he doesn't draw any red lines, but he would like to see some red policiesthese exploratory talks. and these are only exploratory talks to see if the social democrats want to play ball. then they vote on the 21st of this month to see if they want to enter into formal talks. angela americale is up against a lot of issues. both sides are quarreling over how to cut taxes. social democrats want more housing construction. on the other side, the conservatives want to see defense spending increased to 2% of gdp. so a lot of difference there's that we saw in the first round of talks yesterday there are dozens of lawmakers on both sides that are talking and working groups right now. they're meeting today at the cdu party headquarters. but there is a news blackout also. they only said from yesterday they were constructive, serious traux. and that's about it. we're going see by the end of the week if they have another common ground to proceed. >> so chris, what will it take to pull germany out of this political crisis? and can merkel survive it? >> well, that's the big

anna: is that because there's son of spd policy in the agreement?he experience of the first round where they really seemed to suffer a lot a 20%re whittled down to party and they don't want to see that again. what they really should be telling the membership is if you got a 30 billion euro budget surplus just think what we can do with that. anna: what kind of german government do you get if you don't get thissurplus coalition? >> you would get another and the electorate may actually be quite upset about that because they voted now it's the politicians turned. that's why the social democrats are trying to go down this road even though they really don't want to because they are feeling it is theirdo we end up with miy government? duty to make it work. anna: what broader implications are there for the eurozone and what we know so far about this german government stance about kris and other areas where european unity is tested? how much do we know about the german coalition stance? not that much change either way. even with the jamaica coalition you wou

mainstream people in germany, with the spd and the social democratic which is mostn germany. party -- we need to rethink this relationship and look at our options. it has put wind in the sales to people who might be skeptical about the relationship with america to begin with. anna, this is one of your special fields. as i agree that he is erratic and -- in the foreign-policy area, we do see some continuities and coherence. the ideologies have been coherent. we see that in the policies -- input out by mcmaster the washington post, they are portraying the world as an arena of competing actors. they have been looking at the world like that ever since. it also shows the international security strategy. this is how he looks at europe also. this is why we also see some continuities. comes tole, when it eastern europe, he has been very supportive towards eastern europe against russia anand he s let some of the policies, we have seen with the previous administration in place, reinforcing troops and sending poland.o pull in -- to along withing gas political interests. this is very coh

the spd leadership remains confident, but they have convincing to do.ing that berlin votes against this because you would expect them to want to support their own jobs and effectively, they want to vote themselves out of government. not what you see in washington. guy: i think the washington story could become more interesting on the back end of the week. it will be interesting to see if the dollar demand, if we were to get a government shutdown. let's shifted to where i am sitting. growth picking up more quickly than expected, which could have implications for the rate of interest rate increase. that is according to a speech yesterday, it was -- an optimistic view was offered for u.k. productivity. >> although i agree with projections for growth, the leadsis i discussed today me to believe that in the medium-term, the risk to productivity may be skewed to the upside. economyrward, if the evolves with steadily increasing -- would be expect required over the next three years. a different outcome for protecting the growth would effect a policy rate path.

the socials really want be a speedy to go further -- once the spd to go further left.o get rid of the private tier of the health care system. they also want to raise taxes on the wealthy, which is something they haven't gone in this preliminary agreement. they have been pushing. we haven't had exact polls, because the delegates don't submit to such polls. a former chairman said he thinks there is a 60% chance this will go through on sunday. if there is a yes vote, what happens next? there is a lot of horsetrading to be done to get this across the line. what makes or breaks the deal? what schulz once is halfway through to have a review and be able to renegotiate whatever terms they come to in talks. that could be seen as a springboard for the spd to get more of what it once. the former chair says. the man who runs the parliamentary coalition for merkel, the union blocks, says that if there is a yes vote, he expects them to begin talks within a week and says those talks to be over in two weeks. tocould come fairly quickly another vote by the social democrats. this time,