Financial turmoil engulfs Italy amid political uncertainty

Financial markets in Italy have plunged amid fears that the eurozone's third-largest economy is heading towards another election that could shape up to be a referendum on whether to stay in the euro.

Premier-designate Carlo Cottarelli, a former IMF official, is expected to submit his list of ministers to President Sergio Mattarella in Rome, two days after an attempt by two populist parties to form a government failed over the president's rejection of their anti-euro economy minister.