come from italy. mr. platten is the same officer. >> you are listening to the german press conference. the berlin suspect was shot dead by police near a train station near milan. we will take a quick break and more information for you after the break. itch your faf four to t-mobile. get unlimited everything ...and we'll give you $800 to spend anywhere you want. hurry to t-mobile and get your holidays on us. oh, that's lovely...so graceful. the corkscrew spin, flawless... ...his signature move, the flying dutchman. poetry in motion. and there it is, the "baby bird". breathtaking. a sumo wrestler figure skating? surprising. what's not surprising? how much money heather saved by switching to geico. fifteen minutes could save you fifteen percent or more. did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's over 6 times faster than slow internet from the phone company.

, and 30% in italy and so on. brian: one thing's migration, europeans not taking any of the froman migrants, migrants north africa and the middle east in large numbers. is this result the mistake of italy's european partners, of brussels? isn't it something that europe could have prevented by helping italy more with the migration crisis? they failedure that in solving this problem. made -- able even to make the distribution of refugees in different european countries. it is also a failure of germany. in september last year, when hundreds of thousands of refugees who were welcomed more didess,, chancellor merkel not consult even the most important partners in the european union. she just let them come in without a telephone e call with paris, or the eastern european countries. whyefore, they do not see they should participate in this distribution program, and they are against it. and a failureke, from brussels, and it was not the best way of handlingng the problem in berlin. brian: federica, you are shaking your he

sued anyone in italy? i have. it takes years. you might as well give up. to foreclose and extract value it is expensive and time-consuming. there are many issues that make up that price to book ratio. they are very difficult to value. matt: kevin, you will stay with us. edward robinson from bloomberg news, thank you for your input there. take a look at italian banks and see if we have got it open yet for bnps or unicredit. we do see red arrows across the board for other banks, even outside of italy. the banco poplare, down. the banca monte dei paschi, not yet open. guy: the euro-dollar, trading at a 20 month low. we are not selling off as aggressively with an italian bonds as you might have thought. we did have some big opens and we are watching for the ftse. we have come back quite a long way. the ftse is only down by .7 at the moment, that we are waiting to see how unicredit opens. we will wait and watch and bring you that number. this is bloomberg. ♪ guy: welcome back. let's talk about the italian mar

eitherfears in italy that terrorism, like we've seen in france and germany could now spread to italy? so—called islamic state have made threats saying they are going to invade rome, but we have not seen much yet, not much activity. no. there is always fear. as long as there are people prepared to die, you can expectjust about anything, because you can definitely try and destroy a network, but if there is a single individual ready to die, we are very much deprived of the cancers. the interesting thing is that for a very long period, italy seems to be a target primarily because the target of islamic state was christianity. the funny thing is that they never really threaten israel. if they decided to have an enemy, the enemy was christianity. it was quite obvious that if they had decided to have christianity as an enemy, we have the centre of christianity, or a catholic is anyway, in rome. the threat was there and it was quite possible to imagine that something would happen. then all of a sudden, christianity seems to have been dropped out of their agenda. they don't talk about it any

and italy is not all museums. >> rose: italy is not only museum. but some people think italy is a museum and you say we'll change that. some also say that you are the last best chance to change italy you are the last best chance to insure that italy is a very competitive nation in a very competitive world and no longer a museum last best chance. >> i think italy is rich of great hope around the country. i'm not the last best chance. there are a lot of best chance. a lot of chance to change italy. i think there is a new generation in italy. we fought against all the generations who really could change this country. >> here is what some of my journal stngs friends have said to me. he ask a man in a hurry. >> uh-huh. >> rose: talks too much. has tried to do a lot in two and a half years but they remind me that your priest said to you god exists matteo but you are not god. >> it's true. he told me. it's very funny. but yes, i-- i am a man in arena,. >> rose: president roosevelt said the man in the are arena deserves the credit. >> the man in the arena

the position we hold and the holds, theter holds problem of italy is italy. we need to fix our own problems. the reason why this change is so important is, it will allow the country and the government to keep pursuing, putting forward decisive reforms. and is why we need a simple clear constitutional system. francine: alberto, you disagree with this. alberto: i do, for several reasons. first of all, i don't really think the modification of the constitution put forward by this reform is so effective as the government pretends them to be. going backll that, to basics, the whole message of the reforms, the message which is understood either constituency, is that we will cut the cost of politics. costly, is something something that must be compressed. this is completely against what we know nowadays. we are not leaving a public debt crisis. cutting public expenditures is not a solution. francine: let's go back to the basics. wouldtutional reform basically mean you have more power in the prime minister. we can't 63 governments in 70 years. do you not want to strea

♪ >> uncertainty in italy. the euro slides and polls suggest the prime minister has lost his referendum on reform. -- newattentions tensions on taiwan. >> the president elect is warning corporate america, move your production overseas and that will be a big mistake. sony'spokemon on as quietly profitable game is leaving its rival in the dust. >> this is daybreak asia. i am betty liu. it is just after 6:00 p.m. on sunday. >> it has just gone 7:00 a.m. on -- in hong kong. what a way to start the week. we have the results of the italian referendum on the constitutional reform coming in a blow too have nationalism and populism in austria. shery: if you have been looking at 2016, it has been a similar theme throughout starting with brexit and then donald trump and his election. the people are speaking. anti-euroration, folks who are heading to the polls and having their say. the outlook is clear in italy and no surprise results in austria. euro losing ground in reaction against the dollar. the exit polls from italy'

>> in italy, i consider the gdp. the process of the economy is andkey factor for banking economic power. a certificate way with an one year. italy, we have significant signs of recovery. we have used nonperforming loans in-- way within one year. we are in a unique position to deliver the business model. i need to better understand what that could mean from the new government, but i am confident. francine: what is the worst-case scenario for the real economy? are owned by rea retail investors. would this be the end of the italian banking sector? >> don't forget, monte paschi has a market share of 54% in italy. we are not talking about a major account. it is more, it is clear that the story at the moment, talking about monte paschi, talking about the market share, we have a strong rise. i don't see significant threats being dangerous for the entire banking system. monte paschi is a normal bank. zero nonperforming loans. there is no other bank in europe with no nonperforming loans. you need them to understand and fully

in the case of italy clearly there's a lot of uncertainty about where italy is going in the short-term and the medium-term. the market needs a larger risk premium despite the fact the ecb are to some extent supporting that -- mark: how much of a risk premium? roughly 1.9 only a few weeks ago. >> i would say that's adequate in the context of italy having a number of the issues that are going to take potentially a long and may notlve ultimately be resolvable. a sort of relatively optimistic feeling on the eurozone over the medium-term. 2014u go back prior to spreads versus germany were out at 5%, 6%. are atshorter term we the wider spread we have been at for some time. this is still a market which is helped by the fact that draghi .tands behind the market italy the problems to one -- to some extent, what exactly their mandate is. in all likelihood we are going to just push the problem out until probably later next year or 2018 before we have a serious electoral contest which could set the tone for the medium-term. what would be attractive to you asset wise in europe at this point? what l

who has been officially informed in germany from italy and by italy? question but two, were you totally surprised that the suspect turned up in italy, or did you have any prior indication that he might turn up in italy? perhaps i can take the first part of the question. the information that we have available is that there were german federal criminal police officers based in italy and they we re officers based in italy and they were informed. the session —— the second question on the surprise element, i understand why you are interested in that, but to give you a sensible answer to this, i would have to have available interim results, but the interim results would not go to me, but they will go to my colleagues from the federal criminal office and i ask you for your understanding. i also cannot confirm the death of anis amri. that is the task of the italian authorities and that is something they seem to have done already. and the information they need to come from the italian authorities, as far as i am concerned, i have to ask, i have to thank the

italy is used to political confusion, but this is a different era for italy. bringing in somebody who is a comedian from a populist party. >> that was in some way the backlash of the reforms. the five star movement is becoming the most popular political party in italy. in the reforms that renzi was proposing, it would have given a bonus to the majority party in the next general election in italy. now? appens markets have priced in a likely no vote, but we are in an enormous period of uncertainty. renzi has been asked to stay another weekend pass -- another week and pass the 2017 budget, but the concentration is on the banks. the third-largest italian bank needs to be recapitalized to the tune of 5 billion euros. katty: despite markets being fairly stable today, there are still economic concerns -- >> they are stable, but if they don't get a recapitalization plan going for the third-largest bank privately, they will have to look at bail-in options. katty: what does this mean for the eu more broadly? >> it is another thread that gets pulled in this fraying fabri

italy is important to the eurozone. it's an third-biggest economy is sitting on a multitude of the debt. that totals 12 trillion euros. all 29 euros states combined. italy's share of that debt is two point one trillion euros. this even puts the greeks to shame. their national debt is a tiny 312 billion euros. we remember the waves the greek debt crisis cost of. >> tonight another man has added his name to the list of candidates who want to be the next prime minister -- the next president of france. prime minister manuel valls said he wants to be the next president. he said he will step down on his post on tuesday to start his campaign. it comes just days after the extremely unpopular socialist president francois hollande said he would not run for a second term as next year. let's pull in our correspondent lisa lewis. it is no surprise, is it, that manuel valls said he wants to run for president. it is a surprise that he is resigning as prime minister. >> it seems surprising but it is quite logical if you look back in fr

a unique situation in italy. germany's secret surrender in northern italy may 2nd, 1945, code named "operation sunrise" created a very unusual situation. much freedom was given to the ss and german army forces there in northern italy. u.s. news reporters took notice. the headline of the stars and stripes through s military magazine read, and i quote, did we beat the nazis or not? in northern italy, one couldn't tell. after december 1945, there was also no allied military government in italy anymore. so once in italy, nazis on the run could feel quite safe. but to flee overseas, they still needed travel documents, passports of sorts. this is when a well-known humanitarian organization stepped in. this is my second finding. travel documents for many nazis and war criminals were provided by the international committee of the red cross. the allied refugee organization declared itself not responsible for germans or ethnic german refugees expelled in large numbers from eastern territories. there were about 12 million.

let's start in italy, were italy is waking up for this incredible defeat of matteo renzi that led to his resignation. >> let's start with the left-wing daily. they, like the majority of italian papers, are leading with a photo of sunday night's announcement. 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

he has previous links with italy . his death comes hours after german officials confirmed that his fingerprints were found inside the truck. we will certainly keep you up to date with any news as we get it. nicole: let's get you caught up in the global market action overnight as well. nikkei is closed in japan, holiday there, shanghai composite index down 1%. hong kong down one quarter of 1%. lauren: u.s. announcing settlements. we are watching the banking stocks. cac in paris is up 5 and the dax in germany up 11. nicole: let's check out what's going on with u.s. stock market futures. everybody kept an eye on 20,000. 7 weeks of gain, not one down week since donald trump was elected to be our president. this morning dow futures up 3 and s&p up 1. we have consumer sentiment and also the headlines could drive the market one way or the other. lauren: chets check in on commodities, oil and gold, oil down 52.65, gold up a tenth of 1% at 11.32 an ounce. nicole: a tweet from president-elect trump could be setting up a jet dog

the case in italy. he was responsible for the killing of march 1940 4, 1 of the most horrible reprisal killings, the most notorious in italy. italian civilians were murdered as a reprisal for the killing of 33 german soldiers in the partisans. he made it to argentina after the war. of vaticanlp officials. he lived there under his real name. of argentina, where many others left -- and had a community. he was even very prominent in the german community school and the german community -- it was not a secret he was there. 0's, after the end of the cold war, he was discovered. [laughter] >> we are going to go with nathan. alex, we will get your second follow-up after we make the rounds here. my question is, it is kind of intriguing this idea of the war crimes trials and their affect on the democracies in both germany and italy. and my question then to you is war crimeack of the trials in italy, you said it had an effect on their democracy even today. and since i am not really familiar with their workings of

one of the highest for a referendum in italy. we'll get more reaction from the continent, nancy is in brussels. what have the finance ministers been saying there? >> reporter: well, caroline, it's been a large show of support for the italian government. the message we have been hearing from finance ministers entering their regular meeting in brussels is they are confident the italian government will have a smooth transition of power. and they have been reassured so far by the market response this morning. a lot of discussion here that this is an italian issue, not an eu issue. that may come to the surprise of many looking at this as yet another indictment on a leak in brussels in the aftermath of brexit, especially when you look at the rhetoric we have been hearing from the five-star movement in italy attacking precisely that. the eu project, they are saying they want to take that control. so i had a chance to speak to the eurogroup president and asking him if this concerned him as we get close to big elections next year in franc

what it is a very important bank in italy. —— north. they are going to be battered again, there is a lot of political change in italy. i think it does raise serious questions about the capitalisation of european countries. those who hold bonds in this bank, who are pensioners in italy, there are many italians who put their money into this bank many yea rs put their money into this bank many years ago with a guarantee they would get it back with interest. they could actually see, they might have to take some of the write—down on this bank which would not go down well with the population of italy. in the international new york times, in 2018, the next secretary of state has said russia must expand. he is best buddies with vladimir putin? he was heading up a company that did 80 $500 billionjoint—venture was heading up a company that did 80 $500 billion joint—venture with russia ——a. he was given an award by russia ——a. he was given an award by russia which, as this announcement was made, was suddenly removed from his wikipedi

joe: what is your assessment of the next steps in italy? when is your guests for when we will see a new national election in italy and how would you handicap that race at this point? megan: the first thing they need to do is choose a new prime minister and i think either technocrat or more likely some candidate acceptable to the entire centerleft party would be instilled. most likely candidate would be the finance minister. that would be positive for those worried about italy's banks, since we have in dealing with the banks for quite a while. once you have a prime minister at the cable try to reform the electoral law. somewhere in the middle of next year we might have a snap election. ideank it will be a better for italy to wait until the end sothe legislature in 2018 that a new government can come to power with a mandate and not be stuck trying to negotiate with partners in europe in the midst of a french and german election. i think they should wait until 2018 what they might go ahead and have one earlier. scarlet: thank you so much. we w

we're talking about italy who is up to its neck in debt. the 20 billion euros it needs will be borrowed pushing up its national debt even further. >> the dust is starting to settle from the recent upheaval of italy's constitutional referendum, but the be leaguered banking sector struggling under the weight of bad loans still needs saving. one week after taking power, the new prime minister has had to come up with some plans fast. >> we have begun an operation that i would define as a savings. the cabinet meeting approved a document to go before parliament which authorizes the government to release the funds. this i want to say is a precautionary measure. >> the government hopes the move could inject liquidity in the banking system and bolster capital, but it's a hard sell. the 20 billion euro package is more than 1% of italy's entire gdp and it's not clear if the move is in complete compliance with e.u. rules that investors have to bear losses. but something has to be done right away. in particular, europe's oldest bank could use a hand. it

italy's prime minister resigns after defeat of the constitutional reforms in italy. the euro dies on the news that the latest on the market reaction. a look at how that could in affect investors. dow futures up about half a percent. right now s&p and nasdaq futures a little higher. you are watching "fbn:am." re sm. and morning chitchat... less interesting. xerox transportation services... ...soon to be conduent. thank you for calling. we'll be with you shortly. yeah right... xerox predictive analytics help companies provide a better and faster customer experience. hello mr. kent. can i rebook your flight? i'm here! xerox customer care services... ...soon to be conduent. wait i'm here! mr. kent? nicole: good morning. thank you to them in new york. mark kennedy emerging to be president-elect donald trump secretary of state. rex teller sin of former utah governor jon hunt men are said to be in consideration for the position. kellyanne conway confirmed to fox news that the search has been brought. the decision could come by the end of the week. potato lindsey resigned to

that 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 but that it needs change. he wants sanctions agains

italy's a strong country. our bank is a strong pan-european commission bank, and we plan for the medium to long-term. so let's separate until december 13 when lee will announce a new strategy. monsieur, how much i do looking at monte dei paschi's capital raising exercise to give you a look at what the market is like in any eventuality? >> we do not comment about other banks. as i said, i feel that unicredit is a strong bank, and italy is a country with a lot of potential. let's focus on the medium to long-term, and let's not be too bothered by the events overnight. it's important to take the medium to long-term perspective, and this is what we are doing. we will plan on december 13 two announce a clear and strong strategy. can you talk to me a little bit about the business model? you will lose revenue because you are selling off. you lose those sales -- how you make up for them? well, we are very pleased that we announced this morning that we are starting to enter negotiations with amundi, and we are very plea

. >>> new trouble for italy. the country's prime minister says he will resign after a lopsided defeat at the ballot box. >> also ahead, a rising death toll. investigators look for answers after a warehouse fire kills dozens of people in oakland, california. >> plus new questions about donald trump's foreign policy after the president elect launches a fresh twitter assault on china. hello and welcome to our viewers here in the united states and all around the world. i'm rosemary church. >> and you're watching cnn news room. >>> we have a busy hour ahead. first with that vote in italy. the prime minister losing a constitutional referendum in a landsli landslide. >> supporters of european populism see it as a big win, but the populist movement was shot down in austria, voters rejecting a far right candidate in their election. >> we are reporters covering these big political developments for us. we'll get to them in a moment. let's start now in italy. one woman helped to narrow the signs of italy's senate. instead it

the first one is the importance of italy. italy played a central role as a nazi escape hatch. the port of jen waw was the closest overseas port for people stranded in central europe. in this port is where countless refugees converged looking to leave and start a new life and a better life away from europe. these refugees were a diverse group. survivors of the holocaust, anti-communists, slave laborers, stranded pow's and so on. hiding among them in plain sight were nazis and war criminals. in fact, the majority of nazis and war criminal whose fled europe at the end of the war escaped through italy. it was there that hollow cost survivors and perpetrators crossed paths once again. and the code captures this very absurd situation quite well, in my opinion. let's read this quote together. the italian austrian border region was quite unique, it was a quite unique place after 1945, a kind of no-man's land. this photo here of a g.i., as you can of course recognize from the uniform, and a young man, actually -- it's a young ss man -- guarding jointly a red cross building in may 1945

guy: is italy too big to fail? >> yes, i think -- italy is different in comparison to greece. look at the italian economy and its contribution to the european gdp. i think it is the third strongest economy, continental economy in europe. i think everybody must be interested that italy can further down the road be stronger than ever. franco-germanthe appetite to saving italy? it is the fourth-largest debt market in the world. is there enough interest to keep the european union together that the germans and french would bail out italy? >> that is a crucial question, but we have to explain it to the people because we have to maintain the cohesion of europe and the european monetary union. i think we have to explain it to the people. and in particular to the german vote, we have to say, germany is always running well when our neighbors are running well, i in economic terms, but political terms as well. guy: so, what you are talking about is fiscal transfers. the german economy and italian economy are diverging, not converging. the situation is getting more precarious. you have to

let's get the latest in italy. italy on hold. the italian prime minister was asked to wait to resign until next years budget had been approved. this is italy seeks to minimize the political instability triggered by renzi's stinging defeat. let's get to francine lacqua. when will renzi step down? we hear talk of linking this to the budget. this is a very live budget conversation. is italys interesting is the president of what chooses next. we understand that the president of italy had over an hour of around 6:30 p.m. or 7 p.m. and it was clear by the statement, this is the president 's palace. the president is externally concerned about civility. he had forced or asked gently mr. renzi to stay on until the budget lies past. it just puts to bed the budget for 2017. there will still be these two houses to a lower parliament and the budget law has gone through to the lower house and it needs approval to the senate. we understand that this could be approved as soon as friday. it could take as much as a week. until next tuesday. we und

the 14-year-old premier is promising to resign if italian that if italy's rejected plan -- if italy rejects this plan. move willnt says the reduce important checks and balances. however he insists if the yes they will remain the strongest nation in europe. >> it is urgent italy reforms and looks to the future. we will know after the fifth of december. the country will be more capable of standing up to the challenges facing europe and the world, or it could be a country that is closed off. with our speak reporter in rome. an opinion poll shows there has been quite a lead for the no group. reporter: this vote is going to be decided on a handful of votes. a couple of weeks ago the no vote was ahead by 4%. still about 50% of voters undecided or unclear whether they are going to abstain from this. mr. lorenz he will be encouraged by the latest voting we have the countries in brazil and argentina. voters often vote for the centerleft. that could be a bonus for mr. lorenz e. they say this is his last chance to bring about meaningful change and stop the political instability that has caused 60 gove

italy's referendum approaches. on the topic of the global economy, a wide-ranging conversation with imf chief christine lagarde. all right, let's have a look where european equities are trading right now. 30 minutes to the close of equity trading. we are seeing downward pressure on european stocks. broad-based losses. you can see a lot of red in the picture. weakness,en seeing although the ftse men index -- mib indexes on track for its best performance. a little pullback out of the jobs report. the euro pretty much unchanged. in the fixed income space, you are seeing yields coming down both in the core and the periphery. germany's 10 year yield down 8 basis points. yesterday was the worst day for tenure balloons -- 10 year bunds for quite some time. we are seeing a little bit of pressure on nestlÉ in the commodity space. brent crude holding up, headed for its best week since 2009. a lot of focus on the italian referendum. i want to show you what investors have been doing to hedge. options traders have been driving

he moved to italy following the arab spring back in 2011. as we said he had multiple id's about six different names that he used, three different nationalities, had been in trouble before in italy but they apparently had no evidence that he had been radicalized authorities say about 3 and a half years ago he was arrested for setting fire in a refugee camp. in germany we are told possibly the way to track him down, we don't know how he was able to escape after he rammed that truck through the christmas market in berlin. they were able to track some of the papers. also a cell phone they were able to track as well and see his route around the christmas market where he circled a couple different times before ramming the truck. >> you make the point it does bring it up again how difficult these people can be to track if you don't have a trail to go on. in other words, if there's no terrorist watch list that someone is appearing on that u nothing else in their past that points to something like this that may have happened there's not a long record

crucial votes in italy and austria this weekend. the french president takes himself out of the running in the french elections. -- the donald trump rally runs out of steam. stability in europe is a concern. job reportit today's which will be critical for the way forward. ministerblow for prime may. the liberal democrats unexpectedly gained a seat in government. welcome to bloomberg daybreak. our flagship morning show in london. what a few hours we have seen. the u.s. dollar rallies. where does it go from here? be based onlly uncertainty. we came from what has been the best month since 2014 to reach the highest levels since the bloomberg of the inception dollar index. what we have done here is shown you some key indicators as to why the bears might take control and put this rally on hold for now. what you are looking at here -- the red light. honeymoon period. donald trump is elected. the short-term crosses above the signal line. later in november, you see it cross back down indicating the bears may take back charge of this rally. th

so how did he get all the way to italy? this is what we know about his movements, at 8pm on monday he attacked the christmas market then vanished, managed to get to sian berry in france, a train ticket in his pocket showed he went to turin and then onto milan central station arriving at 1am and finally he took the metro to the last stop, where he was shot. translation: row at the end of this week we can be relieved that one acute threat has come to an end but the general threat posed by terrorism will continue. we would oui’ terrorism will continue. we would our utmost to make sure our state as a strong state. so germany is trying to root out radical islamic networks. we visited this place today, a short distance from where anis amri's new video was recorded. this is one of the places that anis amri was known to frequent in the months he was in berlin. a residential complex but the reason he would come here, in this corner, what used to bea here, in this corner, what used to be a mosque. it was closed down and became a me

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 trouble. a multibillion euro rescue deal is hanging by a thread. bank is ind's oldest big trouble. after a bad year where shares it needs 580%, billion euros to recapitalize. it had hoped to get that from a consortium of investors. but uncertainty caused by the referendum result may change that. crisis talks are hinging on the biggest investor, the qatari investment authority. if they backed out, others would likely follow. then the government could be forced to nationalize the bank. and aould be unpopular blow to the economy, already struggling with low gdp growth, along with the second-highest government debt. there are also fears that the banks may follow. plagued by sector is 3 billion in nonperforming loans. could get is a lot of italian people having a run on the banks, going to the banks and withdrawing their money. the already fragile italian banking sector.

italy took 17% of the vote in 2013. germany's right wing afd party won less than 5% that same year and in france, the national front won 15% of votes in regional elections last year. we'll continue to follow the developments, again in italy and austria on this day. >>> we want to turn to a tragedy now in oakland, california. at least nine people are dead after a warehouse fire in oakland. it happened as dozens of people were arriving for a music event. authorities warn the death toll could rise. >> we have recovered nine victims at this point. those victims have been transported from the scene to our coroner's bureau. the identification process has begun with those victims. we are rushing their fingerprints to identify them. and then notify family members as we get those identifications. >> the warehouse contained artist studios but officials say it did not have permits for people to live there. here's how one person described how he lost a friend. >> i just ran outside and i watched this warehouse burn. >> officials sa

tom: how removed is italy from being greece? italy is not germany, i get that . how close is it to being greece? .ames: it is not quite the same we are not talking about the same level of collapse. we are talking about 0% trend growth and high levels of debt, low productivity growth. there is a slow trend pace of growth but it is not something we expect to collapse anytime soon. francine: italy is still part of the g7 and greece was nowhere anywhere near part of the g7. this is bloomberg. ♪ francine: this is bloomberg "surveillance." you are looking at live pictures from the city of london, overlooking the london bridge. tom keene is in new york. where the action will be this weekend is in rome because of that all-important referendum the markets are taking this referendum as a constitutional reform which will give more power to the prime minister, on possibly a vote from the government. you can see a lot of different options of what could happen and weaken possibly wake up to messy markets on monday. tomorrow we speak with the former prime minister of italy, m

i think the problem is low growth in italy. they're not growing enough to get their debts down to a sustainable level. they need to find ways of releasing the potential of the italian economy. there isn't enough internal competition in italy. a lot of oligopolies keep prices high. that doesn't allow italy's economy to breathe. they can't devaluate more because they're in the europe but -- liz: can i interrupt, sir. mateo wanted to streamline law making and boost competitiveness which would have neutralized some of those problems. they rejected that. i wonder are we about to see not the dissolution of the euro you but beginnings of a slight crumbling here as we see death by a thousand cuts? greece hanging by a thread although trying to come back. italy may not have the required levels you must have. can you pay the dues to the club up the street? if you can't you can't be the member. >> the short answer is no, we're not seeing that. what we're seeing another political crisis in italy where an opportunity to speed up change has b

in italy. i don't think it will be used again. julie: i want to broaden it out and look at european banking and the settlements we heard about today for deutsche bank and credit suisse. about how talking this is a relief for their shareholders, the deutsche bank will not have to raise capital. how big of a relief is it for these banks and for deutsche bank in particular? big pick upion in on yields. i think that has helped you a lot of the relief we have seen now, i don't think deutsche bank and credit suisse are completely out of the woods. there is a need to raise capital. considering the existential fears from a few months ago, it's quite early to see 14 billion coming to less than half that area taken into account a lot of it is paid out. lorenzo, put your political hat on. italy is going through a time of transition, it's possible we can have an italian election next year. uncertainty, how can the italian economy come out of it? there has been a. -- time of lackluster growth. renzo: i thin

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. charlie: it is not only museums but some people think italy is only museums and you say we will change that? some also say that you are the last best chance to change italy. you are the last best chance to ensure italy is a competitive nation in a competitive world and no longer a museum. last best chance. mr. renzi: i think italy is rich of great hope around the country. i'm not the last best chance. there are a lot of best chances to change italy. there is a new generation that fought against the old generation who really could change this country. charlie: here is what some of my journalist friends have said to me. he's a man in a hurry, talks too much, has tried to do a lot in two and a half years, but they remind me your priest said to you god exists

he said he was from the south of italy. when they didn't buy his accent they asked to see some proof himself didn't have papers and didn't have a telephone but he had .. 22 caliber shot gun. the chief of police said he was like a ghost and we pulled out that shotgun, shot one of the two officers who stood him. the other killed amri on the spot. dna and a scientific face match led to the positive i.d. amri used at least six aliases since leaving tunisia he slide on a boat for reefs, did four years in jail, radicalized there. italy tried to deport him but tunisia would not recognize him. he went to germany and was under surveillance for suspected plans to stage an attack. germany tried to deport him but had problems with paperwork. he returned here to italy and the journey ended about the regs is not over. enter. >> interpreter: our tippings is -- attention is at its highest level but italy is present. >> reporter: despite chaos here in italy and a government that recently collapsed, this country is feel can like it has its a

this is not against italy's euro membership. that said, the five-star movement which in the next general round of elections come february 2018, italy might come to power. they are against the your e row, but they are not against the eu. this is a very important distinction to be made. >> the reaction is relatively muted for the loss for the incumbent prime minister. >>> well, coming up, president-elect trump considering new possibilities for secretary of state. the latest names still ahead. olay total effects vitamin enriched to revive skin and fight 7 signs of aging your old school dance moves might show your age, your skin never will olay. ageless. >>> welcome back to politics. president-elect trump is considering new possibilities for secretary of state. for the latest we turn to tracie potts who is live for us in washington. good morning, tracie. >> reporter: the trump team is considering new possibilities. and we are following the recount effort. today the green party outside trump tower talking about now petitioning federa

italy has a strange political history. i think they will work through it and i think that is what the markets are saying. you think there is a divorcing in some of these cases from the political and economic? in all of these cases the perception seems to become the effect on the economy will perhaps not be as dire as anticipated. john: i think that as well put, that is exactly what is happening. we on wall street sort of do things. when i think the ramifications and repercussions are something the politicians may do are known and discussed, they tend not to happen despite all the rhetoric. me this rally has legs and then tell me who is going to lead it higher. this is the s&p 500 industry group peterson the truck -- industry group. since the trump victory -- companies types of continue to lead the way? what is the upside from here? john: the upside is we are going into the second half of the second phase of a normal bull market. in the beginning there is the push phase where the central bank is pushing money to make the ec

italy loo

focusing on italy first. ben wedeman has the story from rome. >> sunday morning italians will be going to the foals cast their vote in a constitutional referendum where they will be given the is choice to either reject or accept modifications to 47 of the 139 articles of italy's 1948 constitution. basically it's all about cutting down the powers and the size of the italian senate. basically, making it a much smaller body instead of 315 members, it will go down to 100 and they will be a pointed and they'll have very little way in the way of decision-making power. ma day a reigns i says this is a good way to streamline a cumbersome political process. but his critics say this poses the danger of giving dictatorial power or too much power to whoever is in the position of prime minister. many people harking back to the days of mussolini who was one of the reasons why the cumbersome political system exists here. he has says if they reject the constitutional changes he will resign. many opponents have turned this si

kn in italy it's a bigger deal. we'll watch that for sure. >>> turning to politics, donald trump once again tweeting about lockheed martin and boeing. the president-elect says what he calls the tremendous cost and cost overruns of lockheed martin's f-35 joint strike fighter program led him to ask boeing to "price out a comparable f18 super hornet jet." lockheed martin shares dropping in the afterhours trading session on that news, off by 2%. boeing shares did edge slightly higher in the afterhours statement. up by 0.2%. boeing says it has committed to working with the president-elect and his administration to provide the best capability, deliverability and affordability across all boeing products and services to meet our national security needs. >> this is the next chapter of negotiation from lockheed from president-elect trump. i don't know much about these programs, but i have read and according to defense expert the cited in the papers, the boeing f15 would need significant upgrades to match what is happening wit