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Oil prices climbed over $130 dollars a barrel for the first time ever on Wednesday, mainly driven by supply worries. OPEC's biggest producer Saudi Arabia announced a modest increase in production last week but the organisation has not signalled any intention of boosting output. European stocks fell as oil's record highs fuelled inflation fears and concerns over the outlook for corporate profits. One German bond trader said markets are now seriously worried by rising oil. SOUNDBITE: Stefan Scharffetter, Bond trader, Baader Wertpapier Handelsbank, saying (German): "Oil isn't getting cheaper anywhere. Everyone was waiting for a reaction and for the price to go down, which hasn't happened. As a result, 100 points were trimmed from the top of the Dax and that's down to the high oil price." UBS is reshuffling its risks by offloading $15 billion dollars of distressed U.S. mortgage items to asset management company Blackrock. Investors welcomed the move, seeing it as a way to cut some of the assets that made the bank one of the biggest casualties of the subprime crisis. But UBS does remain exposed to some risk. It lent Blackrock 75 percent of the funds to buy the portfolio. /// And finally Italy's Prime Minister Silvio Berlusconi has remained true to his word and held his first cabinet meeting in Naples to put the spotlight on the city's stinking garbage crisis. Collection problems that have been going on for more than a decade have come to a head in recent months. Rubbish is choking the streets, children have become ill and tourists are staying away from the area. The problem is further complicated by the mafia's involvement in the illegal disposal of toxic waste. Michelle Carlile-Alkhouri, Reuters