what will the european central bank do next? the japan times says that airbnb has axed 80% of its listings ahead of new tighter regulations that come into force next week. and finally the scottish daily mail has on the front page that scotland is to be the first part of the uk to introduce a deposit return scheme on cans and bottles. so let's begin. jonathan charles is managing director for communications at the european bank for reconstruction and development hello. i am here and ready to go. he is back and braced for wrecks at. the latest twist in turn is quite significant. it is the gift that keeps on giving, brexit. we are approaching a significant crunch point to give you look at theresa may over the last few years she has tried hard to kick the can down the road to try not to admit to the moment when she has to take a very strong position that upsets one wing of her party or another. be they

remain as or levers, soft, hard, however you wish to characterise them. there is a cabinet discussion today about continuing a close relationship with the eu, a paper that says that britain will have to remain ina that says that britain will have to remain in a custom agreements of some sort in close alignment in order to avoid a high border in northern ireland and the whole of the uk will have to stay in this agreement and it will be without end. that is the controversial end. it's called the hotel california option, you can check out that you can never leave the union. this is david davis's option. it says he is on the verge of resignation. here's the brexit secretary and this reveals these difficult factions within her cabinet. she cannot seem to overcome. in the end you have people who believe quite strongly on one part of a cabinet that britain really needs to leave the eu. and

negotiate its way in the world with fresh trade agreements. on the other hand you have other members of the cabinet, economic realists, who feel the pain of doing that is too great and britain have to stay alive. she is trained to keep them together. i think she is reaching the point where one way or another she must make a decision about what sort of brexit britain is going for. that is the centre of this round today. sodas david davis. my gut —— so does david davis. my gut reaction is that he will not resign. but this is a matter of principle for a number of region people. it is about ideology. people have believed in this for a long time in cabinet and they feel very strongly about it. the question is, are they prepared, in effect, to trigger a serious revolt in the conservative party? you don't know where it will end up. to reason they might have to go. if they do that.

or indeed, a fresh election. —— theresa may may have to go. there is too much political uncertainty. it isa too much political uncertainty. it is a decision with ramifications way beyond this single document they discussed today. we shall watch this space. looking now in the meantime at what the new spanish prime minister has decided to do. he has formed his new cabinet having become prime minister last week. this was after leading an historic no—confidence vote against the popular party. a huge change in spain. he leads a minority government so he is trying to set up what he really believes. there are some interesting messages from this new cabinet. you have a vast majority of women in ministerial positions. that is unusual for any government. it says a lot. is trying to position himself as a

forwardthinking prime minister who believes in equality and that it is not about men and women it is about getting the right person for the job. he thinks there are some very talented women. he has gone for someone talented women. he has gone for someone who sends a signal our that he does not believe in catalan independence. someone who is a cata la n independence. someone who is a catalan was put into government who believes in keeping the whole country together. he sends a signal as well that he is very pro— european. if you look at the peak of ministers he has many european expertise in there. people who want to deepen european integration as he does. following on from this, brussels is breathing a sigh of relief after a turbulent time with italy. such a contrast with italy. on one hand and lisa is that we want to reform the whole european union ina way to reform the whole european union in a way that gives power back to member states and does not make it such an integrated force. you have pedro sanchez saying no, i believe in integration and what we have now

was not enough, i would like to go further. i have been reading comments about the fact that there are more women than men in the cabinet. this says that this could mean stability, that, actually, we will see an easier time for spain, a more stable and progressive time. will see an easier time for spain, a more stable and progressive timelj think we should... the jury is out on that. in the end he is leading a minority government and that is not easy to get legislation through the country. it does not normally lead to stability. i would say that it is a sign he has more in common with emmanuel macron in france and he does with angela merkel in germany. he is seen to be a modernising person. looking at the financial times. while this is going on, the european central bank needs to keep the ship afloat. and it looks like they are now going to get to a point where they are taking the eurozone off that trip feed programme of quantities easing that has been so

effective for the uk, the us and the eurozone. it did keep the economy going during tough times in the money flowing through the arteries of the system. this was prompted by a story but in other papers as well, from my old man —— friend peter in which he has said that the confidence economy is the underlying strength is good and that has bolstered confidence that inflation will move to where they wanted to be. and, again, a sign that this quantitive easing, this lifeblood of money flowing through the system can slowly be withdrawn and they can end the bond sales that have been p°ppin9 the bond sales that have been p°pping up the bond sales that have been popping up the european economy for so popping up the european economy for so many years popping up the european economy for so many years now. popping up the european economy for so many years now. i would say that asa sign so many years now. i would say that as a sign that they are confident. they think things are on the right track. growth is not dependent on artificial stimulation. it is really bad. and, also, a sign that they are confident that italy is not going to

destabilise too much, despite what we just discussed with the issues with the italian government being not so pro— european. but that will not so pro— european. but that will not be enough to upset european growth or, indeed, the single currency. this is a sign of great confidence. the markets obviously will adapt to that and that he is trying to get forward signalling, as are other people in the ecb, that this is where we will go. again, another caveat, forward signalling on the economy can often go right. you can have an unexpected event and suddenly we will read something of. and tomorrow the g7 meeting start. that will be interesting. the front page of the japan times about a b&b axing 80% of listings because tighter regulation comes into effect next week. —— aianb. this is a big disruptor in the market. many people use aianb. regulation is catching up use aianb. regulation is catching up with aianb. this is a new law in

japan about private lodging services. it says that if you want to rent out your apartment or a room on aianb or other sites you need to have all the official paperwork that shows it is up to scratch and you have permission. and is no bad thing. is no bad thing. for an example alert service you do not wa nt to example alert service you do not want to ——..., you do not want to check into a nun service that unsafe apartment. —— to an underserviced and on safe apartment. regulation is catching up on what a b&b —— aianb have done in japan catching up on what a b&b —— aianb have done injapan is that they have removed some 82 880% of the properties. —— 80% of the properties. —— 80% of the properties. it is right. aianb say they will restore some of those properties if people say they have permission. we have seen tightening regulations in the us, such as in

new york. in paris and london. i think it shows that the disrupters do not have it all their own way. the scottish daily mail about scotla nd the scottish daily mail about scotland being the first in britain to banish the bottles. interesting. scotla nd to banish the bottles. interesting. scotland is ahead of the game on many environmental issues when it comes to implementing environmental policy. here they will be charging for every bottle deposit and you get the money back if you take the bottle back. i lived in germany 15 oi’ bottle back. i lived in germany 15 or 20 years ago and there was a bottle recite scheme and you saw children collecting bottles and taking it back and they got money back. they got half a deutsche mark back. they got half a deutsche mark back. so scots are ahead of the rest of britain and we are a long way behind other parts of europe. that is the briefing. thank you for your company. good morning. the weather looks very

sluggish over the next few days into the weekend as well. so it is going to be difficult to get the detail right. wednesday, most places had a warm, summer's day. not much cloud around at all. over the next couple of days, in the south, there will be more cloud around. maybe one or two heavy and thundery showers. on the whole, most places will be dry. a fair bit of cloud across eastern areas on wednesday but this is the cloud coming in from the near continent that threatens a few heavy and thundery showers, notjust overnight — perhaps into thursday as well into the southern parts of england as well — not many of them, most places will be dry. more cloud will feel humid around southern areas and around the coast there could be patches of cloud on the cooler side but generally temperatures into the low 20s as they were on wednesday. we could scrape an isolated sharp shower across western scotland and western northern ireland, if those form, they will fade

overnight, still one or two showers into the south—west of england and south wales. again for eastern areas, turning misty and more areas of low clouds and patchy fog too. it will improve through the day on friday and again we have the risk of a few showers here and there. same sort of areas around southern england and wales and clipping the far north—west of the uk, but large parts will be fine and dry and it will feel warm in the sunshine again. always cooler around those north sea coasts because we have an onshore breeze, once again high pressure to the north of the uk and lower pressure to the south and it's around that that we are seeing storms, heavy rain, maybe over the continent through the english channel and the threat of one or two heading into england and wales on saturday. the risk is still there, across the western side of ireland, cooler along the north sea coast. during the second half of the weekend this area of low pressure is closer and the weather front too, it threatens to bring with it heavy rain. still could be a few sharp showers across scotland and the chance of one or two for northern ireland but again some spells of sunshine and

temperatures into the low 20s. looking ahead into monday and tuesday, again, most places will be dry. briefly we may see some high—pressure arriving on tuesday, but then we see atlantic winds after that. maybe a change on the way. hello — this is breakfast, withjon kay and steph mcgovern. northern ireland's abortion debate heads to the uk's highest court. in the next few hours judges will decide whether tougher rules on terminations are a breach of human rights. good morning — it's thursday 7th june. also this morning: another bump in the road in the brexit negotiations as tensions between theresa may

and david davis put the brakes on proposals for the uk's backup customs option. plastic pollution reaches the antarctic — one of the earth's last wildernesses. the cost of carillion's collapse. the financial watchdog says it could cost taxpayers at least £150 million and the final bill could be even higher.