Italian bank Banca Monte dei Paschi di Siena SpA said on Thursday it would raise up to 2.5 billion euros ($2.64 billion), cut thousands of jobs and close dozens of branches in part of its multi-year plan to reorganize its balance sheet, turning a page on a chapter that has seen the lender suffer state recapitalization and the disposal of billions in bad debt.
The world’s oldest bank has said it will aim to cut around 4,000 jobs through a voluntary exit scheme, a move Monte dei Paschi plans to create 270 million euros in savings a year from 2023 against one-time restructuring costs of around 800 million euros. It will also close some 150 branches, bringing its network to just over 1,200 branches.
Emmanuel Macron calls for compromise after losing majority in Parliament
PARIS-French President Emmanuel Macron said on Wednesday he was ready to work with other parties to form a new coalition, after losing his majority in the French parliament in elections this week.
The French leader said he was open to building an alliance with other political parties to form a new parliamentary majority. His party could also make deals with other political parties on individual bills.
Polio virus found in London sewage puts UK on high alert
Polio has been detected in London’s sewerage system, British health authorities have said, putting clinics on high alert for an infectious disease that has not been recorded in Britain for nearly four decades .
Britain’s Health Security Agency sounded the alarm on Wednesday after finding several closely related polioviruses in sewage samples taken from an east London treatment facility between February and May. This pattern of detection suggests that some form of virus has spread locally, the agency said.
Rolls-Royce offers $2,500 payout to workers as inflation bites
LONDON-Rolls-Royce Holdings PLC is offering British staff a one-off payment of GBP 2,000, or about $2,450, hoping the bonus will help ease pressure from union officials and employees amid rising inflation while keeping a lid on the manufacturer’s jet engine costs in the face of an uncertain economic future.
The move is one of many approaches companies are taking to deal with soaring inflation, which is pushing unions and workers in many parts of the world to demand higher wages. Private companies have for months been raising wages and salaries and offering signing or retention bonuses, amid post-lockdown demand booms and extremely tight labor markets. More recently, soaring prices for items ranging from food to fuel have weighed on workers’ purchasing power, prompting employers to raise wages to make up the shortfall.
Farmers stick to Bayer roundup, undeterred by Supreme Court ruling
The U.S. Supreme Court this week denied an effort by Bayer AG to stem thousands of lawsuits alleging its Roundup weed killer caused cancer among landscapers and residential gardeners. On Alan Meadows’ farm in Tennessee, it was business as usual.
As America’s highest court on Tuesday refused to hear Bayer’s appeal of a 2018 jury verdict linking the company’s herbicide to non-Hodgkin’s lymphoma in a California plaintiff, Meadows said he was spraying the chemical on his own 4,000-acre farm, which he said he’s been doing since the 1990s.
US grows push for exception to EU sanctions on Russian oil
A US push to reduce one of the European Union’s sanctions on Russian oil has tentatively started to gain traction within the 27-member bloc, with officials debating whether to allow insurers to cover oil shipments. Russian oil if the price of oil would sell for falls under a cap.
After weeks of infighting, the EU in early June approved a ban on insuring Russian oil shipments alongside a ban on Russian oil imports that is expected to come into effect this year. Given that many shipments of Russian oil are insured in the EU and the UK, Treasury Secretary Janet Yellen has repeatedly said she fears EU plans could take Russian oil off the market. worldwide and drive up prices further.
The European Parliament supports a broader carbon tax at the borders
The European Parliament has approved legislation to tax imports based on the greenhouse gases emitted to manufacture them, a plan that is shaking the global trading system.
Legislation backed by parliament on Wednesday expands a previous tariff proposal to include certain chemical manufacturers. It also sets a faster timetable for implementation than the previous proposal, which was drafted by the European Commission, the executive arm of the European Union.
Fed Chairman Jerome Powell says higher interest rates could cause a recession
Federal Reserve Chairman Jerome Powell has said the central bank’s battle with inflation could lead it to raise interest rates high enough to trigger a recession, offering its most explicit warning this year.
“That’s by no means our intended outcome, but it’s certainly a possibility,” Powell said Wednesday during the first of two days of congressional hearings. “We are not trying to provoke and do not believe that a recession will have to be provoked, but we believe that it is absolutely essential” to bring down inflation, which is at its highest level in 40 years.
Congress unlikely to respond to Biden’s call for a three-month gas tax suspension
President Biden has called for a three-month suspension of federal gasoline and diesel taxes — a move that is unlikely to have the support needed to pass Congress and economists and business leaders say it will. would do little to cope with record high gasoline prices.
“I fully understand that the gas tax exemption alone will not solve the problem, but it will provide families with immediate relief,” Biden said at the White House on Wednesday. “Just a little respite.”
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswire
June 23, 2022 05:34 ET (09:34 GMT)
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