hello. this is business briefing. i'm david eades. italy is without a government — again. the prime minister resigns even before taking office, when the president refuses to approve a eurosceptic candidate for the post of finance minister. the rise of the black stuff. oil traders continue to bet on demand outpacing supply, as prices hover close to a four year high. and on the markets, should tell you the uk in the us are not functioning today the public holiday reasons. as we have a look around, let's be honest not the busiest day of the year. the hang seng up about 0.5% there. a little jolt as well for the well, so near and yet so far. italy's most unlikely prime minister in decades, giuseppe conte, has quit before he ever got to govern. all because italy's president rejected just one of his nominations for the cabinet.

that one was paolo savona, a fierce eurosceptic who'd been handed the post of finance minister. well, president mattarella dismissed him because of his anti—eu and anti—euro attitude. and it's left the populist parties of the five star movement and the league calling for the president to be impeached. with me is lawrence gosling, editor—in—chief at what investment. it is quite a pickle. it would be no great surprise to see the markets in a certain state of disarray over what on earth is going to happen next anyway. yeah, so on friday the markets got a bit nervous. the expression we hear all the time is markets don't like uncertainty. ironically in italy, for the last 20 yea rs, ironically in italy, for the last 20 years, they have existed on coalition governments. another one, it is not too much of a surprise. now because of the antiestablishment rhetoric coming out of the whole discussion, that is what makes the

market quite nervous. we saw the cost of borrowing for the italian government become quite expensive on friday. and that is the point, suddenly one of the rocks of pro—eu, pro— suddenly one of the rocks of pro—eu, pi’o— euro suddenly one of the rocks of pro—eu, pro— euro support is possibly being kicked away. that is the real worry from brussels perspective, we still don't know of it is going to happen but it is a country with massive debt, no sign of growth. everything is going the wrong way for it, no wonder that moody ‘s among others are having a look at it. it is spending more than it is making in simple terms, that makes the ratings agency think we should downgrade it to close to junk status. if your credit is that bad, it is a lot more expensive to borrow money in financial markets. realistically, if that happens in the next few days or a week may be, what is the knock—on effect likely to be about if we are still looking at a state of limbo initially? it makes the euro week

again, it calls into question the kind of muted recovery we've had across the eurozone, so again we get back to not quite a financial crisis that we have seen over past summers, but i think as we get into the summer but i think as we get into the summer months, financial markets will get increasingly nervous as to how this plays out. what are the options, a rerun, another election, andi options, a rerun, another election, and i suppose the league in particular are thinking well, that might bolster our position further? may be at the expense of the five star movement? well, the two right—wing parties got close to 20% of the election. again, i think we have a rerun, you will see a shifting around of those numbers. i think it is going to be a period of negotiation for the italian political system. it appears that way. thank you. we will hear from you ina way. thank you. we will hear from you in a few minutes as well. south korean prosecutors have raided the offices of samsung securities after a so—called fat finger trade. let's go over to our asia business

hub, where rico hizon is following the story. there is the fat finger, i think this one was fatter than that. absolutely. just to you what a fat finger years, is a keyboard input error in the potential markets, david, whereby in order to buy or sell is placed at a far greater size than intended for the wrong stock or contract at the wrong price, or with any number of import errors. so this is what happened to samsung securities, the brokerage firm of south korea's biggest firm. they gave billions of shares to employees, that is more than 30 times the value of its outstanding shares. it prompted a public complaint, an outcry, particularly after it was discovered, david, that

some workers quickly sold off the shares. so the country's financial watchdog found that 21 employees traded or attempted to sell shares to make a profit from this era. a seoul prosecutor official declined to provide any further details as the investigation is currently under way. after the error, it samsung securities promised to rebuild its internal control process and set up a fund to assist investors affected by this incident. less fat fingers i hope, going forward. -- lower. is going to ask you what you would have done if you have got some of those shares. i will leave that for another day. thank you very much. one of the big themes in the financial markets during 2018 has been the sharp and consistent rise in oil prices. earlier this month, the price hit $80 a barrel for the first time in four years — it's running now aroung $76 a barrel. there's been a soaring price

of gasoline and diesel that's hit many emerging economies, including india and brazil, because of their dependence on imported crude oil. there have been strikes and protests over the availability and rising price of fuel. so what has driven up the cost of crude? well, one reason is president trump's decision to quit the nuclear deal with iran. that's caused markets to price in the impact of falling crude exports from iran, which produces around 4% of global oil supplies. 0il production‘s been falling since the start of 2017. nations from the oil producing cartel opec — and russia — have sought to rebalance global supply and demand for oil. but the economic and politicical crisis in oil—rich venezuela has seen an even sharper decline in crude oil production. that's led oil traders to speculate that demand for oil will exceed supply — and that pushes up the price. with me is seema shah, a senior global investment strategist at principal global investors. thank you very much forjoining us.

all that talk, we havejust thank you very much forjoining us. all that talk, we have just seen a bit of a bump at odds on the price of oil. do you think that is permanent orjust of oil. do you think that is permanent or just a of oil. do you think that is permanent orjust a blip? we could see a slight fall back as a lot of the other countries try and pick up supplies. the overall theme is that we have had rising oil prices since the ninth ofjune, so an 80% increase in oil prices since last june, it is very significant. 0ne issueis june, it is very significant. 0ne issue is increasing demand, so the global demand has increased. that has been one issue, another is president trump's decision to pull out of the iran nuclear deal. it is very difficult to predict how the geopolitical situation is going to go but we can expect it is the start of the driving season in the us and that demand continues to remain strong, but they are likely to remain stronger than we have seen in recent yea rs. remain stronger than we have seen in recent years. a lot will presumably depend on the attitude of opec

recent years. a lot will presumably depend on the attitude of 0pec and russia as to whether they want to open the taps a bit more, and whether they are willing to do that. there is this expectation that saudi arabia and russia would try to make up arabia and russia would try to make upfor arabia and russia would try to make up for that decline in exports from iran, which is why market expectations not been as negative as in previous episodes. you look rahman, the situation it could find itself in, who are the winners at the moment from this oil price rise? well, it is anyone who is an oil exporter, you have saudi arabia, russia, those countries tend to do better. actually, the position of the us has become better in recent yea rs. the us has become better in recent years. now, it has become an oil exporting nation, so there profits tend to see a rise as oil prices rise. the merchant markets are

really going to be hit hard here. absolutely, and the thing to remember about the merchant markets is that they tend to move as one asset class. as soon as one country sta rts asset class. as soon as one country starts to climb, all of them all together moved with it. so even though countries like saudi arabia and nigeria, as i said will benefit, the overall trend of emerging markets pulls them down with them. do you think that a bit more supply will be put out there, that they will be put out there, that they will try to do something to help demand? i think they will try to put more supply out there. the key thing is going to be how this meets expectations and how this affects the potential markets. that is what eve ryo ne the potential markets. that is what everyone is going to be focused on. 0k, thank you very much indeed. now let's brief you some other business stories. brazil's president michel temer has given in to demands from truckers to cut the cost of diesel by 46 brazilian cents a liter. that cut is to be frozen for 60 days, the president said

the president said on tv, as the strike paralyzes much of the country's economic infrastructure. mr temer also agreed to four other demands the truckers made. more than 200 flights were delayed or cancelled at stansted airport, london's third airport, after a fuelling system was damaged by a lightning strike. stansted says the problem's been fixed, but passengers should check with their airlines before leaving home. up next, newsbriefing. we'll take you through the stories making headlines in the global media today. that will include, as we have said already, some discussion about the situation in italy. join in a moment. —— me. parts of the midlands and wales are recovering from flash

floods caused by heavy rainfall yesterday. in some places, more than one month's rainfall fell in a single hour. the environment agency has 20 flood warnings and more than a0 flood alerts in place — covering much of central england. ben ando's report contains flashing images. the waters rose with taking speed. in some parts of birmingham, they had more rain in one hour than the average for the whole of may. 0n had more rain in one hour than the average for the whole of may. on a bank holiday weekend in edgbaston, there was little residence or the emergency services could do other than watch and wait as floodwaters reached up to five foot in—depth. some of these houses have been flooded the times in recent years. the police have urged people not to

travel but stranded cars like this one were perhaps the most effective warning to other drivers. one were perhaps the most effective warning to other driverslj one were perhaps the most effective warning to other drivers. i do not think this is safe. some motorists did make it through, while birmingham bore the brunt of the deluge, flash floods also hit parts of buckinghamshire, berkshire and northampton. in many areas, the rainfall fell very, very dramatically from neighbourhoods neighbourhood. the flooding extended as far west as welshpool in wales. the storms also lead to dramatic lightning displays. today, the heavy downpours may continue in some parts, though elsewhere, forecasters say it could be barbecue weather. some enjoyed the hottest day of the year so far, with temperatures possibly reaching 29 celsius in the south—east. coming up at 6am on breakfast — charlie stayt and naga munchetty will have all the day's news, business and sport. they'll also take a trip on the number 840 bus from leeds to whitby.

don't ask me why, it looks very pretty though. that might be a clue. this is the briefing from bbc news. the latest headlines: there's growing pressure on the british prime minister to reform northern ireland's strict abortion laws, that follows the republic of ireland's vote to overturn the abortion ban. italy's populists have called for the president to be impeached, following failed efforts to establish a coalition government. an anti—immigration rally by germany's biggest far—right party has been overshadowed by much bigger counter—demonstrations. 5000 alternative for germany supporters were outnumbered by some 25,000 anti—afd protestors. right, time to look at the stories that are making the headlines in media across the world. we begin with the financial times website. it has a look at the possible constitutional crisis looming over italy.

the president had vetoed the prime minister's appointment of a euro—sceptic finance minister. we will focus on that in a moment. the front page of china daily is reporting on how china supports north korea and us leaders' willingness to hold the summit, expecting it to be held not only on schedule, but also to bring peace to the korean peninsula. deutsche welle 0nline is covering the mass rally in berlin staged by far—right populists, as well as opponents of the afd, who — according to the police — outnumbered them four to one. as for the front page of gulf news, that's reporting on the rather unusual suggestion from a former indian spy chief to invite the pakistani army for a dialogue to reduce tensions between the two countries. finally, the guardian's sport pages looks at attempts by the liverpool coach to replace the team's goalkeeper loris karius with roma's alisson becker, as well as transfer talks for real madrid's cristiano ronaldo and gareth bale.

so let's begin. this does feel to be, and the financial times emphasises it particularly in this, but beyond saying that the president should be impeached according to coalition parties, but there is a democratic problem here that one character, one minister, albeit an important one, is being denied a seat at the table by the president, and yet he has beenin by the president, and yet he has been ina by the president, and yet he has been in a previous italian government. the financial