Monte dei Paschi’s last-ditch rescue plan faces high hurdles

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With the ink barely dry on its bailout plan, Italian bank Monte dei Paschi di Siena faces a Herculean task convincing investors to back a third recapitalization in as many years and avert a banking crisis that would send shockwaves across Europe. The plan aims to clean up and bolster the bank’s balance sheet once and for all, restoring to health a lender whose frailty threatens the wider Italian banking system, the savings of thousands of retail investors and the increasingly weak political standing of Prime Minister Matteo Renzi. A financial crisis in the euro zone’s third-biggest economy would also risk creating contagion across Europe, a region already reeling from Britain’s decision to leave the EU.

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Monte dei Paschi’s last-ditch rescue plan faces high hurdles

German authorities clear Opel diesel engines: report

A view shows the logo of Opel on a car in Moscow, Russia, July 6, 2016. REUTERS/Maxim Zmeyev

FRANKFURT (Reuters) – Germany’s Federal Office for Motor Vehicles has approved diesel engines of General Motors’ Opel unit, after initial doubts about whether the engine control software was permissible, weekly Bild am Sonntag reported. Engines of the 2.0 CDTI type which are built into Insignia, Cascada or Zafira branded cars have been cleared, the paper reported. Opel had no comment while the Federal Office for Motor Vehicles was not immediately available for comment. …

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German authorities clear Opel diesel engines: report

UK and China regulators discuss framework for financial projects

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By Michelle Price HONG KONG (Reuters) – British and Chinese securities watchdogs are discussing an agreement that will pave the way for landmark financial services projects between the countries, sources said, easing fears that Britain could be a less attractive partner for such deals after last month’s vote to leave the European Union. Britain’s Financial Conduct Authority (FCA) and the China Securities Regulatory Commission (CSRC) are cooperating on a regulatory framework for a scheme for distributing fund products in each other’s jurisdiction and a proposed London-Shanghai link for trading shares, two people with direct knowledge of the matter said. Britain, home to the EU’s biggest finance sector, has been pushing in recent years to deepen its financial services ties with China, which has agreed to these and other cross-border financial services schemes as part of the UK-China Economic and Financial Dialogue (EFD) program.

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UK and China regulators discuss framework for financial projects

Helicopter money talk takes flight as Bank of Japan runs out of runway

A man runs past the Bank of Japan (BOJ) building in Tokyo, Japan, July 29, 2016.   REUTERS/Kim Kyung-Hoon

The Bank of Japan’s review of its monetary stimulus program promised for September has revived expectations it could adopt some form of “helicopter money”, printing money for government spending to spur inflation. The BOJ disappointed market hopes on Friday that it might increase its heavy buying of government debt or lower already negative interest rates, cementing the view that it is running out of options within its existing policy framework to lift prices and end two decades of deflationary pressure. With little to show for three years of massive monetary easing, economists say BOJ governor Haruhiko Kuroda’s “comprehensive assessment” of policy could push it into closer cooperation with Prime Minister Shinzo Abe, who announced a fiscal spending package worth more than 28 trillion yen ($275 billion) on Wednesday in a bid to kickstart growth.

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Helicopter money talk takes flight as Bank of Japan runs out of runway

Chinese consortium agrees to $4.4 billion deal for Caesars online games

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A Chinese consortium that includes game developer Shanghai Giant Network Technology Co Ltd and e-commerce company Alibaba Group Holding Ltd founder Jack Ma has agreed to acquire Caesars Interactive Entertainment Inc’s online games unit for $4.4 billion in cash, the companies said. Caesars Interactive Entertainment is currently owned by Caesars Acquisition Co (CAC) and Caesars Entertainment Corp .

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Chinese consortium agrees to $4.4 billion deal for Caesars online games

U.S. authorities subpoena Goldman in 1MDB probe: WSJ

A view of the Goldman Sachs stall on the floor of the New York Stock Exchange July 16, 2013. REUTERS/Brendan McDermid

Goldman received the subpoenas earlier this year from the U.S. Department of Justice (DoJ) and the Securities and Exchange Commission (SEC), the Journal reported, citing a person familiar with the matter. The authorities also want to interview current and former Goldman employees in connection with the inquiries, but none of those meetings had occurred by Friday, WSJ said. The Department of Justice and the SEC declined to comment.

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U.S. authorities subpoena Goldman in 1MDB probe: WSJ

Data in focus as market struggles for direction

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Wall Street, seeking direction as the S&P 500 has been stuck in a narrow trading range for 12 days, will next week shift its attention from second-quarter corporate earnings reports to economic data. Investors will be looking for signs of economic strength to reinforce the positive direction hit Friday, when the S&P 500 hit an intraday record high. The overall tone will be of an economy that is getting better at a reasonable pace,” said John Manley, chief equity strategist at Wells Fargo Funds Management in New York.

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Data in focus as market struggles for direction

‘Sell everything,’ DoubleLine’s Gundlach says

Jeffrey Gundlach, founder of DoubleLine Capital, speaks at the Sohn Investment Conference in New York City, U.S. May 4, 2016.  REUTERS/Brendan McDermid

Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Friday that many asset classes look frothy and his firm continues to hold gold, a traditional safe-haven, along with gold miner stocks. “The artist Christopher Wool has a word painting, ‘Sell the house, sell the car, sell the kids.’ That’s exactly how I feel – sell everything. Nothing here looks good,” Gundlach said in a telephone interview.

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‘Sell everything,’ DoubleLine’s Gundlach says

Berkeley study finds scarce evidence of market ‘front-running’

Oracle's Executive Chairman of the Board and Chief Technology Officer Larry Ellison gestures while giving a demonstration during his keynote address at Oracle OpenWorld in San Francisco, California September 30, 2014. REUTERS/Robert Galbraith (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)

Two University of California, Berkeley professors have taken a deep dive into new data and found that claims in Michael Lewis’ bestseller “Flash Boys” that retail investors are being gouged, or “front-run,” by high-speed traders not to be true – at least not now. Professors Robert Bartlett and Justin McCrary said their findings contradict the common belief that fast traders systematically exploit others who rely on public data feeds, which in the past were notoriously slow. “Flash Boys: A Wall Street Revolt” touted two theories of market abuse that the study, “How Rigged Are Stock Markets?

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Berkeley study finds scarce evidence of market ‘front-running’

U.S. extends oversight of Fiat Chrysler safety practices by a year

A new Fiat Chrysler Automobiles sign is unveiled at Chrysler Group World Headquarters in Auburn Hills, Michigan May 6, 2014.   REUTERS/Rebecca Cook

U.S. auto safety regulators said on Friday they were extending oversight of Fiat Chrysler Automobiles NV for an additional year, requiring the Italian-American automaker to submit to monthly meetings and early disclosures of potential vehicle issues. In July 2015, Fiat Chrysler agreed to a $105 million settlement with the U.S. National Highway Traffic Safety Administration for mishandling nearly two dozen recall campaigns covering 11 million vehicles. Fiat Chrysler said in a statement that the NHTSA’s decision to extend the requirements was not based on the company’s performance to date, but rather to “facilitate continued communication,” citing a letter from the agency.

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U.S. extends oversight of Fiat Chrysler safety practices by a year