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tv   Bloomberg Markets European Close  Bloomberg  October 18, 2016 11:00am-12:01pm EDT

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mark: taking you from washington to rome, covering stories out of wall street, u.k., and asia. here is what we are watching today. the u.k. inflation jumps to the highest level in two years. mark carney might ignore it as economist debate, expect a rate cut in november. matt: burberry shares following the most in the year, following declines in their asia business. why a slump in sterling may not be helping the luxury retailer as one of our columnist claims bag. still missing an it goldman trying to fix and it paid off handsomely in the third
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quarter, they join the other wall street banks and beating expectations. european equities and trading, 30 minutes away from the tuesday session. equity indices under left-hand side rising for the second day. on the expectation that the global central banks will remain accommodative. the world's biggest yogurt maker reporting its slowest second-quarter sales growth and more than a decade, missing estimates amid a slowdown in baby food, traditionally one of its fastest-growing businesses. it benefited in demand from china from warm you let now slowing its china -- shares are flat on the day. a friend's distiller -- french distiller, shows higher. -- shares higher.
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growth in the u.s. improving c sales in china and they said demand is improving in the world's second-biggest economy after a government crackdown on extravagant spending has dented demand for the spirits. hennessy,h owns talking about a better china. this is an interesting chart, the spread between the german two-year and the 30. hovering at a level we have not seen since the end of may this year. the so-called steepening of the yield curve fueled by rising investor expectations for consumer prices with policymakers in the u.s. and u.k. suggesting faster inflation will be tolerated.
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90 minutes into the trading day in the u.s.. let's get to the markets desk. >> to the rally in europe, things -- u.s. stocks, the three major averages nicely higher, including the dow, s&p 500, and nasdaq, outperformance by the nasdaq. .elped by the technology shares the nasdaq on pace for its best day in a month. it has not been a smooth ride up. an intraday chart of the s&p 500 , already looking at volatility. try tooff the highs and recover, it will be interesting to see how this day trades out. one potential source of volatility for u.s. stocks, crude oil, it had been hire earlier in the session but took a dip and tried to move higher now but we see it going down and that could be ian taylor says
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they do not think opec could not make big enough cuts to balance the supply out there. it will be interesting to watch oil and see if they can recover from the decline. the 10 year yield, intraday volatility, within a more than three basis point spread. saudi arabia announced a $10 billion sale providing some competition to u.s. treasuries and a somewhat spongy cpi number. ,hen we go into the bloomberg the more important story over the last few months is of yields rising. this is a three-year chart, a massive decline as the fed has kept rates low but off of the brexit we see the 10 year yield creeping up and on pace for its best month since june of last year. this chart suggests we could see the 10 year yield climbed to the top of the range or about 2%.
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matching the estimates of some strategists. matt: some strategists. i was talking to a couple yesterday who were saying the same thing. let's check in on the bloomberg first word news. or from the newsroom. >> president obama's meeting with the italian prime minister who will be the guest as what the president says is the last eight dinner of his term in office. mr. obama noted that the u.s. and italy are partners in a wide range of projects from climate change to helping refugees. president obama: united not only by our interest but by our values, our love of liberty, our commitment to the dignity of every human being which is why i can say without hesitation that italy is one of our strongest allies in this is runs. >> a president and prime minister will have a joint news conference at 11:40 eastern time and you can watch it live on bloomberg television. hillary clinton's campaign has
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been traditionally republican state of arizona in its site. the campaign adding $2 million to its advertising budget for the state and one of her most effective surrogates will visit arizona on thursday, first lady michelle obama. clinton and donald trump are virtually tied in the state. european union governments delaying a decision on a draft trade agreement with canada, they need to address concerns over the deal and belgium's french-speaking southern region, opponents. that belgian pharma will be priced out of the region with cheap canadian fruits and vegetables. more than 350 works of art from the private collection of david bowie will be up for bid soon. they will be in three separate sales next month, at the heart of the offering, more than 200 works from key british artist of the 20 century. -- 20th century. david boeing died of cancer in january at 69. died of cancer in
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generate at the age of 69. this is bloomberg. mark: thank you. the u.k. consumer price growth almost doubled last month, more than economists forecast, inflation reaching 1% for the first time since november 2014. target, that'soe half feet boe target. clark. us now, victoria thank you for joining us. they said it is not seeing explicit evidence of town -- the pound we getting, when will we see that explicit evidence? >> it is a creek rather than a big bang move but it is coming, inflation pushing up rapidly through the early part of next year and reaching a bit above 3% iv end of next year. from where -- by the end of next year. one person is not big news but on its way out of lowflation and
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heading above the target. mark: we have heard from governor carney suggesting that the banks are coupled with letting inflation overshoot, is there a case of quickening that might cause a disturbance within the monetary policy committee? >> no magic number, if you like. the weight the bank of england is a at this is if it short-term sterling driven effect to inflation, they have to look to it. they are focusing on the longer-term game, what is brexit doing for consumer demand and the fact that inflation is moving up squeezes consumer demand and they have to focus on that longer-term picture. this,ook through all of uncomfortable, a presentational headache in the short-term but they need to focus on weaker demand. if anything, we are looking at cutting rates, cutting the bank rates for the november meeting. matt: how does the u.k.
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inflation measure compare with others? in the u.s., our central bank has a 2% target as well, maybe a soft target. we are there on cpi but not encore pce -- on core pce. >> that is right. the picture in the u.k. and the picture in the u.s., we are still struggling to see wage momentum coming back off the recent years of crisis. as a result, there is subdued momentum on wages from that and the movement you are seeing depends very much on the various weightings of the bits of the cpi or the pce measure. the story is subdued. wagesion, until you see move up, you will not see much of an upward shift from a consistent perspective and inflation.
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in the u.s., we will start to see that over the next year or so, in the u.k., a different story because one of the consequences of brexit is that you are likely to see wages remaining subdued for longer. is view of u.s. inflation that irrespective of where pce or cpi is at the moment, it will move up. that is why the fed is talking about raising rates, it will be the opposite story in the u.k., hence the opposite debate about whether to -- despite higher inflation, we should be easing policy. , in: a recent view because the past come investors and the markets have not believed we could get up to 2%. maybe the u.s. would be looking at a future that is very japanese. is there still a concern that the u.s., the u.k., major global economies will share the same fate as the japanese? >> there is concern. with the u.s., i remain upbeat and i like to take it economy by
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economy and with the u.s., there is reason to expect inflation to push higher and one reason is the housing drivers of inflation and rental vacancy rates is driving inflation and it almost the chicken and the egg. with the labor market tightening , they can afford to do that because it is more difficult to find the workers you want. that pushes up inflation and workers demand high wages, which pushes inflation further. yes, then the u.s., fed are focusing on the fact that output and growth potential and productivity will be lower in the long-term. i do not see there being a perennial inflation problem. e, the quarterly inflation report in november, highly unlikely they will raise inflation and growth forecast, how do you cut rates when you
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are raising potentially your growth forecast? >> it is a presentational headache. they are going to have to work out as part of how they manage brexit, which is a tricky thing when we look at what the bank of england will do with their forecasts. not one of the things you can say we are doing this date and that feeds through into the forecast in a very specific way. what they will probably do when looking at this, have a growth outlook which may be looks a bit better than it did in august but the fact that there is a downside skew and that presentation is one way of getting around that. you can say you are warding off severe downside risk because central banks globally are more minded to ward off those downside risks and have a little bit risk on the upside. less damage from that given such a low time of inflation. tactically, if i were mark carney, that is what i would be doing. mark: we will see, thank you for
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joining us. close,up on the european a major exploration campaign, something their role as the region's leading operator, we will hear from the man in charge. this is bloomberg. ♪
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♪ london and new york, i am mark barton. down to the european close, 15 minutes away. matt: we are global. i am at the world headquarters of bloomberg. i am matt miller. it is time for the business
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flash, the biggest is the stories in the new starting with the incredible surge in the share ofit is time for the busis netflix, the world's largest online tv network signed up 3.6 million new subscribers in the third quarter. for now, that has put aside investor concerns about slowing growth and negative cash flow. netflix says it plans to spend $6 billion on programming next year, a 20% increase from this year. johnson & johnson posted third-quarter earnings that beat estimates, their blockbuster drug including its arthritis treatment, remicade, pharmaceutical sales, drugs, medical equipments, their biggest unit two years ago and they have beaten analyst predictions every single quarter since the end of 2010. final signofft to on his $14.7 billion settlement with drivers in the u.s. over the emissions testing scandal. one stumbling block, they do not have regulators approval of a fix for 482,000 vehicles that are still spewing pollution
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which may leave them with only one option, they would have to buy back all of the cars from their owners. that is your bloomberg business flash for this hour. areleaders in big oil meeting in london for the oil and money conference today. among the topics were when to start drilling again. mobile rig count down almost 50% in the past five years and if opec can deliver on a production freeze or a cut, when do these rick scott back to work? the ceo of one of the biggest oil companies in the world, statoil, discussed his company's production plan. eldar stre when we make the decision, the long-term perspective, we do not learn -- we do not have new projects until they are as good as they can be, our current portfolio has a breakeven price of u.s. $40 per barrel and we are ready
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to move forward on these projects when they are ready. , it is a waitre and see approach, we want to see stronger commodity environment until we put forward more gigs and activity. -- rigs and effective is. >> more -- and activity. >> are you waiting for a price level, a range, or less volatility? eldar: we are waiting for an upturn in the commodity market, the fundamentals of the oil markets is heading for rebalancing, we think that will happen at some point during 2017. the on that, we expect an uptick in oil price reflecting the fact that investments in conventional oil production have been cap significantly over the past several years and we expect it to happen for the next year which will drive oil price and we are preparing ourselves for that upturn. >> what is the upturn level? think -- the basic
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nature of this is there will be volatility. during the rebalancing time which we would expect significant volatility around the current level and increasing during the rebalancing time and we expect an upturn. it is very hard these days to say where the price level will and. -- end. cost has come down significantly quickly impact the cost level going forward. there are tighter markets in general, fewer discoveries are being made which will impact the forward price market. to give anhesitant absolute level, but when you are modeling plans bump, five, 10 years down the road, you have to use a base case for oil, what is model right now? eldar: it is higher than the current level. we follow the forward markets over the next three to four years. then we have projections heading
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slightly upward from that level. on a significant higher level than today. matt: that was the ceo of statoil talking with alix steel. mark: let's move to -- from world to luxury, the sterling plunge was not enough to help burberry upset their problems in asia, let's look at the challenges facing the company. this is bloomberg. ♪
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♪ matt: we are waiting on president obama and the prime minister of italy with a joint news conference at the white house. you are looking at a live shot at the rose garden. we are going to bring that to you when it begins and you can also watch it on the bloomberg using the function live go. mark: let's talk burberry,
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shares falling the most in one year, as much as tempers and earlier, that is after they reported declines in its asia business which upset the brexit inspired boost interest spending in the u.k. let's hear more from andrea fell step. -- you say the decline is mere window dressing, i enjoyed your piece. >> it is nice to have, the market is difficult at the moment but burberry has more fundamental challenges. the boost from the weak sterling will not make them go away. mark: you have been saying that for a wild, this is a brand. -- for a while, this is a brand. they were talking about a new handbag, the bridal back, doing very well. the ponchos were very good.
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they just do not do enough of that. mark: what would you like them to see more of? you say the need to capitalize on their experience and expertise in digital, are you saying they have to create must-have items? >> exactly. mark: everyone is trying to do that. >> they need to be more cutting edge than they are. they just need more of it. one of the interesting things revamped, not to everybody's taste but it is driving sales and interest. not just in the bags, but in the clothing as well. that is a big change and that is what burberry needs, and entire makeover like it had 20 years ago when it was revamped. matt: i had the pleasure of being over in great britain during and after the brexit vote. ties a number of hermes
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cheaper because of the drop in the town. there were a lot of gas drop in pound. drop in the why are not a selling a lot of to wealthyuct tourists? >> they are selling them, sales in the u.k. up 30%, pretty impressive. when they see the cheaper prices, they are buying and things like the more fashion lead items were doing better than the classic. where they do get it right, they really get it right but they do not have enough of those things. they need more excitement. you can only have so many trenchcoats. you need to create a buzz around the brand. matt: i have a whole collection of trenchcoats in my closet. the fabrics coming over or more
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expensive, i assume that is the case when they buy something from italy, it costs more. >> that will be the case and burberry do make their -- a fair amount in the u.k., so they do have advantages, the trenchcoats are made in the u.k. and some of the fabric is from here as well. they have that benefit but they will face higher import cost. mark: great job. thank you, great to see you. matt: president barack obama and italian prime minister matteo renzi will be giving a news conference, in a few minutes, they will definitely be on time. we will bring you that live from the rose garden. this is bloomberg. ♪
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♪ and newve from london york, you are watching the european close on bloomberg television. stocks finishing up in european trading, every single industry group on the stoxx 600 is rising and the weaker dollar propelling
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shares. banks, travel, leisure, real estate, all gaining. just increase since september. -- the biggest increase since september. it previously held out against the net income. sterling slide has had a big impact on yield. haveir shares in dublin dropped roughly 9% since brexit. on the day after the referendum, they fell almost 25%. they have recovered somewhat. moto typek with shares.
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falling as much as 4.5% earlier. that is the biggest fall since june of 27 after the rendering -- after the referendum. warranty and antitrust provisions contributing to a 480 million euro cut in operating profit at its car parts unit, higher research and development spending, and cause from disruptions in the supplier in japan because of an earthquake in august hurt profits, shares not as low as they were, down 1.5% today. love this chart, the market. you of the world's negative yielding bonds which contracted for a second week in a row and now totals $10.4 trillion. the 3.1% drop put the value of debt starting to lose money if held to maturity on track for its biggest monthly decline since september. itce december last year when fell 14%, the peak of this index is colby bloomberg article is was $12.2regate index
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trillion in june, up from $3.3 billion in july of 2014. the recent plunge in that came as the benchmark of debt prices fell by 2.3% in two weeks, the biggest slump since -- in 19 months. what a wonderful chart showing how the market value of negative yielding bonds is contracting for a second consecutive week. matt: one of the most fascinating stories out there, i am taking a look at the commodities that are moving. is onesons why, crude you have to watch, at one point today, for a while, over $50 per barrel, nymex kreuz not brent. -- crude, not brent. trading around the high levels, not the red arrow, on optimism that opec will be able to cut and because of the drop in the dollar. take a look at the dollar, down
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a quarter percent, not a huge move but another move. today's back to back, helping to put upward pressure on commodities like coffee. i picked coffee, it is a two standard deviation move from where it normally trades. look at the gmm screen, i look at it every morning, you can see the moves of various assets based upon their strengths away from the average. in the see copy commodities coffin caught -- called a big move up for coffee. both had been in an uptrend because of tighter supply and a weaker dollar. i want to look at the 30 year, it has fallen 4% this month, that is the value, pushing the yield higher and that has been an important move to watch. the 30 year yield at 2.52%. green arrows across the board,
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not massive moves for stocks, half a percent on the dow, 80 points, the s&p of 7/10 of 1% and continuing to get stronger. at its highest for this section. the nasdaq up 1% and change. let's get the first word news. president andy german chancellor meet in berlin tomorrow for talks on fighting in the ukraine. putin'sis a vladimir first visit to berlin since russia annexed crimea and fighting broke out two years ago . he will join the ukrainian president and angela merkel and the french president to focus on talks over ukraine. the gremlin says putin will be open to talking about syria as well. in syria, russia temporarily stop the bombing the city of aleppo, the russians have called for civilian and rebels to leave
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, 250,000 are trapped in eastern neighborhoods of the city. russia is facing increased pressure to end the siege and the u.s., u.k., and germany have threatened to impose more sanctions. in iraq, the offensive and that retaking basel from islamic state may lead to a humanitarian crisis, thousands of iraqi troops advancing on most, the u.n. says that could lead up to 700,000 residents of the city to flee and there are plans to build camps that could house most of the refugees but iraqi officials say that staying put may be safer for people living in muscle. ecuador has cut off internet access for julian assange. he has been held up in ecuador embassy in london since 2012 under a grant of diplomatic immunity. he is trying to avoid extradition to sweden for an alleged sexual offense. the u.s. has accused russia of providing with wikileaks of providing e-mails that undermine the presidential election.
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the news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg markets. mark: let's get to a story gaining attention in the corporate bond, pimco made a big purchase of bonds from deutsche bank earlier this month, they call them to your one bonds, the kind of debt that suffers losses in a crisis. why make the investment of spooked.irm's too why is pimco less afraid to tread where many others dare not? >> they would claim they did their homework and not investing indiscriminately so they bought some deutsche bank senior bonds for what they said was a huge premium and they have bought tier one bonds of lots of other european banks, probably less of deutsche bank been more conscious of the risk at the junior end of which are in -- deutsche bank. mark: aren't there questions
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about how they may behave in a crisis if one emerges? >> that is right and we have had lots of evidence earlier in the year, a big selloff around worries over where -- whether the coupons will be paid. deutsche bank and particular recently has seen its so-called security nosedive, a leak around what they may take the department of justice. matt: we saw a 10% drop earlier this year, which is a significant amount in these kinds of securities. tim go owns $10 billion that pimco owns $10 billion of debt, risky bank debt, a huge wager. isn't it? >> it is a significant bet, investors get paid between about 6% and 10% for these bonds, depending on who is issuing them , so you do get paid.
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let's not forget that yields are crunching towards zero in a lot of european corporate bonds. you do get paid for the risk, the question a lot of people will be asking pimco and other big funds who buy them, are you getting paid enough? matt: interesting to see this story on the same day we see so many distressed funds have too much cash and nothing to do with it. isn't it the kind of investment that would be considered as a stressed investment at up to buy deutsche bank debt? >> that is quite right. deutsche bank would claim that their debt is not trading at a distressed level and is saying that the price of the securities has been very volatile. nothing has happened yet that has not been a coupon cancellation, there has not been a grand offense matt:. what kind of let -- grand offense. matt: what are the prices you see on deutsche bank bonds changing hands?
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>> a few days after the leak about the department of justice fine and what they might ask deutsche bank four, the securities reached a record low of $.69, so they would be issued at -- that is the worst. mark: who else is holding them and who else is cutting their exposure to these types of riskier investments? >> one fund we know has cut its exposure is common yet, a big french asset manager, they say they are still prepared to hold them but given it has been a very volatile asset class this year, they will be more picky and demand higher yields in return for holding them. mark: thank you for bringing this up to date on this fascinating story. matt? matt: coming up, president obama and the italian prime minister will be giving a news conference live from the rose garden. outside the white house.
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they are scheduled to come out in about 15 seconds. notver, the president does have a reputation for always being on time, regardless of the election. a commercial he recorded and published yesterday, we will bring that event to you live when he comes out. this is bloomberg. ♪
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♪ mark: you are watching bloomberg markets. from london, i am mark barton. matt: i am matt miller in new york. in moments, president obama and the italian prime minister will hold a joint news conference and we will take the event live on bloomberg television. in a few months, italy will hold its own referendum vote.
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at stake is how they are run as they endure a banking crisis, economic stagnation, and migration into the country. thank you for your time. how does it look? is theonths out, but how mood in the country and how are the polls lookin? >> a few -- polls looking? >> for a month and a bit, the polls are changing and there seems to be a narrow majority against the reforms. the problem for the prime minister is he made the mistake of promising to resign if he quit which has united all the opposition against him. the problem is that if he loses the referendum, he might come under a huge pressure to quit. mark: what help been cut president obama give prime minister renzi.
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this is his last state dinner in the white house. can he give his campaign a boost? >> there is use symbolism. we have the welcome ceremony at the white house and president obama called matteo renzi young and handsome which is nice to hear and paying tribute to him for challenging the status quo. it is an endorsement. matt: let me cut you off. president obama and matteo renzi are speaking. pres. obama: is english is much better than my italian. we are looking forward to dinner been at the state . as i believe our italian friends peaking italian] it means, first duty, than
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pleasure. tonight's dinner will be a pleasure and today we are focused on our duties. working to advance the security and prosperity of our people. i want to begin by expressing our deep gratitude as americans for the short and every alliance with italy -- extra ordinary alliance with italy, we are lucky to have many strong allies around the world, few are as strong and reliable and capable as italy. in good times and in bad, we can count on each other and i want to think the government and the people of italy for the hospitality and the generosity they showed many american military personnel and families stationed in italy, far away from home. please also note that our thoughts continue to be with the -- you are still working closely with local governments to recover and rebuild from the devastating earthquake that took place this summer.
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in our work together over the past two years, i have come to count on him as one of my closest partners on the world stage. by view of his progressive vision come his energy, the reforms that he is pursuing which are sweeping the bold vision he has for italy and the world, i think he embodies a new generation of leadership, not just for italy but for europe. it is critically important because as i have said repeatedly over the past several years, a strong and united and confident and prosperous europe anchored in liberal traditions rights, that and is a necessity for the united states and necessity for the world. a strategic interest of hours that we have a successful united europe. and today, we focused on a number of key challenges facing
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europe, our transatlantic alliance, and the globe. on the economic front, we agreed that our focus has to remain on growth. creating jobs and prosperity for our people. he has been pursuing very bold economic returns, structural reforms in italy that are not byy, that are often resisted existing institutions and inertia. but the italian economy has shown signs of growth. it still has a long way to go to put italy on a path to long-term and sustainable growth and the upcoming referendum to modernize italy's political institutions are something the united states strongly supports because we believe that it will help accelerate italy's path toward a more vibrant dynamic economy and a more responsive political system.
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onteo shared his thoughts how, in the wake of brexit, the european union can move forward and focus on delivering security and prosperity that europeans deserve. and we both agree that, without growthasis on demand and and investment in infrastructure and projects that can put people back to work, particularly young people, that much of the economic fragility in europe will continue. by the way, that has an impact around the world, including on the american economy as well. we both reaffirmed our strong support for negotiations around the transatlantic trade and investment partnership with cancer for jobs and exports and innovation and growth on both sides of the atlantic. we talked about, as nato allies, our unified determination to
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defend every allied and to continue to strengthen nato's defense posture. italy will be a key contributor to nato's joint task force which is now operational and can deploy anywhere in europe on short notice. concernssed our shared around the situation in ukraine. and the importance of keeping sanctions, including eu sanctions in place until russia and ukraine are both implementing commitments under the minsk agreement and we are determined to work the politically -- diplomatically with the normative group to achieve that goal. i thank italy very strongly for his leading role in the coalition against isis. after the united states, italy is the second largest contributor of forces in iraq, tying forces are helping to stabilize cities through its training of police after they are liberated from title -- isil.
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the start of operations to major stepsul, is a forward, it is iraq's second-largest city. perhaps a million civilians are still living there. in addition to rooting out isil, our focus jointly is on the safety and humanitarian aid or civilians escaping the fight. that will be a top priority for both our governments. l will be a difficult fight and there will be advances and setbacks but i'm confident that just that -- just as they have been defeated and communities around iraq, they will be defeated in mosul. one of ournues to be strongest counterterrorism partners as we prevent terrorist attacks in our country's. ies. we continue our strong support of the libyan government of national court which we have seen continues to face challenges to its authority.
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italy provided critical diplomatic support to libya's effort to force the government and together we continue to support the government of national accord as it works to from libya and provide services throughout the country and as they tried to expand in afghanistan, italy plays a vital role as we train and assist afghan forces and support afghan development. we discussed the continued need for strong and coordinated response to the largest migrant and refugee crisis in europe since world war ii. as the leader of use naval operations in the mediterranean, italy and his partners have helped save hundreds of thousands of lives. theato agreed in warsaw, alliance moving ahead to increase support of the eu operations and i want to commend you and the italian people. the leadership in europe that you have shown as an eloquent
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voice for a collective orderly and humane response to this crisis is in keeping with our values and shared commitment to human dignity. the past two weeks have been a council reminder that when our countries work together , we can leave the world a little -- a little bit better than we found it because the united states and italy joined with other nations across the globe and have brought the paris agreement on climate change into force. we reach an agreement to limit aviation emissions after the montréal protocol, nearly 200 nations just this past week agreed to phase down production and consumption of dangerous hydrofluorocarbons which are a enormous contributor to greenhouse gases at a major step towards achieving the goals we set in paris. strongle, italy is a partner for development, especially to combat hunger and malnutrition around the world.
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thank you once again for your friendship and partnership. i could not ask for a better partner and the american people could not ask for a better friend and ally that italy. p.m. renzi: i am not sure you are typing is as well as my english. you improve very quickly. , thank you for the reception. about the great honor which is here today for italy is something i would like to confirm, something i would like to underline with great strength but as president obama said, our result was an occasion to talk about our duties and after that to talk about pleasure. that have to do
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with our political times, i want to thank the united states of america for the extraordinary support through the battle that italy is having in our country, within europe, to affirm a paradigm of growth, not only of austerity at all levels, and the united states are a model. country has6, your indicated, shown us the way to get out of the crisis after the war. i believe europe can and should do more, italy considers the american example as the reference point in this battle. we know that we have to do our homework at home, the structural reform, and therefore what the president just reminded us of is the priority, starting with the labor market.
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i have to ask for his forgiveness because i use these person jobs act which is something i copied but something open source and i think we can other's expression from the great initiatives that were set forth by the obama presidency. this has created 580,000 jobs in they are insufficient but at least they are a first step to leave our difficult situation . thank you, president obama for the work you have done as a leader in the energy field. today, italy is one of the main nations that sustains and upholds the vision. november,working in in this direction in order to have clean energy, sustainable environment for our children, and thank you for the work we
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have done together in the field of culture. i believe we find ourselves in a season of our political life, maybe some people choose hatred, the cultural of intolerance. we have to bet on liberty, we have to bet on our identity, the guys that make this country extraordinary and europe has a desperate need to find its own soul. and is due to its children its grandchildren. this is the first topic of conversation we had. in terms of italy, we want to make sure the g7 and italy and the beautiful sicily is an important and relevant appointment and we commit ourselves because the work we began together, dear president, under presidency, may continue.
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the legacy of president obama will not only remain in the united states, it has to be clear and absolutely loud, it will involve the europe and we feel totally committed in this direction. finally, before i talk about international policy, i want to tell you that we thank you for -- a small village in the center of italy has been affected by a dramatic earthquake, it is also the town where a's the was born -- where a pasta was born. the small community that had so -- when yous not come to visit italy in the next few months, i believe we will want you to taste, thanks to the cook their, one of the best pasta you have ever tried in your life.
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this is a way of saying we are a community that says who can be an element of identity in the future. in terms of international policy , the international -- the italian agenda is in agreement with the american agenda. we are convinced of the need to affirm the values of being able to live together, being civil throughout the world, that is why we commit ourselves to work with the international coalition in all theaters, starting in iraq where italian troops are supporting a operation to save the dam in mosul. we believe it is crucial not to succumb to the culture of fear. in the future, we cannot know
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what will happen but if there is a great inheritance left by the american dream, this is the best way to proceed. recently, a lot has been said about innovation and technology. think theade people future is a threat. i am convinced that in italy and the united states, we can help new generations to think of the future, not only -- think of this as a great opportunity. for this reason, the agenda of the united states has presented is an agenda we agreed upon and we will be working together on it. thank you, so much, mr. president. matt: --pres. obama: we will take a few questions. i will start with the ap. >> donald trump says hillary clinton's talks to top about vladimir putin and they insult
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the russian leader? he says if elected he may meet with the russian leader before and i pray to, what do you think about that approach to vladimir putin and how would that affect america's interest on the international stage? secondly, does it distress you that folks at the fbi and state department talked about the proper level of classification of e-mails that were on secretary clinton's server? would you a knowledge the appearance of impropriety and just a department -- should state department officials look into it? for the prime minister, with the governing referendum happening soon in your country, what would passage mean for your -- for you to lead the country and what would failure mean for your political future and italy's role in the european union? pres. obama: i will be more subdued in our discussions

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