* The European Banking Authority published for consultation the draft methodology for its 2018 EU-wide stress test, which will cover 70% of the union's banking sector and for the first time incorporate IFRS 9 accounting standards. The EBA removed Banco Popular Español SA and Banca Monte dei Paschi di Siena SpA from the list of banks participating in the exercise, and replaced DekaBank Deutsche Girozentrale with DZ BANK AG, according to the Financial Times.
* The ECB Governing Council is set to meet today in Tallinn, Estonia, and is widely expected to keep its key policy rates unchanged, as well as its €60 billion-per-month asset purchase program, Reuters wrote.
* New EU trading and investment services rules known as MiFID II will take effect as scheduled from Jan. 3, 2018, the head of the European Securities and Markets Authority, Steven Maijoor, said.
UK AND IRELAND
* Millions of people are heading to the polls today to cast their vote in the U.K. general election. Polls opened at 7 a.m. and will close at 10 p.m. local time, with results expected to be declared overnight and throughout Friday, Sky News and BBC News reported. About 650 members of Parliament will be elected.
* Former Royal Bank of Scotland Group Plc CEO Fred Goodwin will avoid having to appear in court after a judge ruled that there is no need for a trial over civil proceedings brought against the bank by claimants seeking reparation over the bank's controversial 2008 capital increase, Sky News reported. The judge's decision comes after the bank reached a £200 million deal with the RBoS Shareholder Action Group.
* JPMorgan Chase & Co. applied with the U.K. Listing Authority to cancel the listing of its common stock from the U.K. Financial Conduct Authority's official list and delist its shares from the London Stock Exchange.
* London Stock Exchange Group Plc unit LCH Group Holdings Ltd. urged the EU to focus on increasing cross-border supervision of euro clearing rather than forcibly moving euro-denominated clearing out of London following Brexit, Reuters wrote.
* Everbright Securities Co. Ltd. unit Sun Hung Kai Financial acquired U.K.-based specialist brokerage and research firm North Square Blue Oak Ltd.
* Ireland-based financial payments startup Plynk raised €25 million from investment trust Swiss Privée Ltd. in a series A fundraising and plans to increase its headcount to 28 from eight in the next 12 to 18 months, The Irish Times reported.
GERMANY, SWITZERLAND AND AUSTRIA
* Credit Suisse Group AG said 99.2% of the rights had been exercised in its rights offering, with 390,206,406 newly issued registered shares subscribed by investors. The Swiss lender plans to sell the unsubscribed 3,026,166 newly issued registered shares in the market. The net proceeds of the rights offering amount to approximately CHF 4.1 billion.
* The U.K. Financial Conduct Authority charged former UBS Group AG compliance officer Fabiana Abdel-Malek and Walid Choucair with five counts of insider trading that occurred between 2013 and 2014, Bloomberg News wrote.
* Deutsche Börse AG sees M&A opportunities outside of the company's core exchange business, CFO Gregor Pottmeyer said. Pottmeyer said one area his company is concentrating on is deals in the index data and analytics space, adding that Deutsche Börse could also pursue transactions in the foreign exchange and commodities areas.
* The Berlin Regional Court postponed a ruling in the legal dispute over the increase of health insurance premiums by AXA unit AXA Krankenversicherung AG, Handelsblatt wrote. A lower court ruled that AXA incorrectly raised its premiums and ordered it to refund part of the payments. If the decision is upheld, it could end up costing Germany's entire private health care sector hundreds of millions of euros in damages.
FRANCE AND BENELUX
* Allianz Group, which already holds a 63% stake in Euler Hermes Group SA, is considering acquiring the remaining shares in the French trade credit insurer that it does not own, insiders told Bloomberg News. Allianz is reportedly in talks with advisers regarding the possible acquisition.
* Jean-Louis Laurens, international ambassador for the French Asset Management Association, said France is in negotiations with up to 50 asset managers looking at establishing new EU bases in Paris in a bid to retain access to the bloc's single market after Brexit, Reuters reported.
* Investors who lost their money when Dutch bank SNS Reaal was nationalized over four years ago continue their attempts to get their money back, Het Financieele Dagblad reported. They have brought their case to a research commission hoping they will investigate.
SPAIN AND PORTUGAL
* Banco Santander SA Chair Ana Botín named a five-member transitional board for Banco Popular Español SA, headed by Santander CFO José García Cantera and tasked with overseeing the integration of the troubled bank into Santander, ABC reported. Botín said Banco Popular will first become a Santander subsidiary before being integrated and that Santander will give itself a one-month deadline to raise the €7 billion in capital needed to boost Banco Popular's balance sheet, according to Europa Press.
* Banco Bilbao Vizcaya Argentaria SA Executive Chairman Francisco González indicated that his bank had looked at buying distressed lender Banco Popular but that the deal did not measure up to its demands.
* Gabriela Dias, the head of Portugal's securities regulator CMVM, said it did not find evidence about mis-selling of commercial paper by failed lender Banif-Banco Internacional do Funchal SA, but said the disappearance of key documents had stymied the investigation into some 1,000 customer complaints, according to Expresso and Jornal de Negócios.
* Portuguese Prime Minister António Costa welcomed the possible entry of charity Santa Casa da Misericórdia de Lisboa into struggling savings bank Caixa Económica Montepio Geral, Jornal Económico reported.
ITALY AND GREECE
* The only option that the Italian government is considering for ailing Banca Popolare di Vicenza SpA and Veneto Banca SpA is that of a precautionary recapitalization, Reuters wrote, citing a government source who also dismissed a previous report that the government was also looking into an orderly liquidation of the two lenders.
* Meanwhile, EU regulators believe that Banco Popular's takeover by Santander has strengthened the case for intervening in Popolare di Vicenza and Veneto Banca, but applying a similar approach would be harder to execute as there are no willing buyers for the two Italian banks, according to Reuters.
* Banca Monte dei Paschi di Siena SpA is reportedly in exclusive talks to sell a portfolio of nonperforming loans, valued at about €240 million, to U.S. hedge fund York Capital Management LP, an insider told Bloomberg News.
* Banca Carige SpA board member Paola Girdinio resigned, Reuters reported. The resignation comes ahead of a board meeting to discuss a request by key shareholder Vittorio Malacalza to force out CEO Guido Bastianini, MF said, noting that Marina Natale and Francesco Iorio are seen in pole position to replace Bastianini should Malacalza get his way.
* The ECB asked Banco BPM SpA to improve risk control measures but made no request for additional capital following separate inspections last year at the two banks that then merged Jan. 1, 2017, to form Banco BPM, MF said. The paper noted that some issues identified by the ECB have now been resolved following that merger.
* Banca Popolare del Lazio SCpA promoted General Manager Massimo Lucidi to CEO, Il Messaggero said.
* Piraeus Bank SA wants to offload its Balkan units and stakes in other companies and reduce the size of its bad loans portfolio as part of its 2020 strategy, Reuters said, citing CEO Christos Megalou. The lender's plans include, among other things, the sale of subsidiaries in Bulgaria, Romania, Serbia, Albania and the Ukraine.
* The Swedish government plans to deliver its judgment on resolution fees today, Göteborgs Posten wrote. The decision is to be announced jointly by the Financial Markets Minister Per Bolund and Finance Minister Magdalena Andersson. Nordea Bank AB (publ) had warned that it would move its headquarters out of Sweden due to the government's proposal to increase the contributions that banks must make to the resolution fund.
* Brightfolk A/S, a company held by Anders Povlsen, will acquire a strategic equity stake in Swedish payments firm Klarna AB. Povlsen will acquire shares from existing shareholders General Atlantic, DST Global and Niklas Adalberth.
* PZU SA and Polish development fund PFR finalized their purchase of a 32.8% stake in Bank Pekao SA from UniCredit SpA for about 10.59 billion Polish zlotys, or 123 zlotys per share. UniCredit said the sale will add 70 basis points to the group's fully loaded common equity Tier 1 ratio.
* The Polish Financial Supervision Authority still expects Raiffeisen Bank International AG to meet the June 30 deadline set for the IPO of Polish unit Raiffeisen Bank Polska SA, despite the lender's decision to suspend prospectus proceedings, Reuters reported.
* Commerzbank AG's Polish unit mBank SA is interested in acquiring Polish zloty-denominated deposit and loan portfolios from Deutsche Bank AG unit Deutsche Bank Polska SA, Puls Biznesu reported.
* Stanislaw Kluza, who until recently served as management board president at Bank Ochrony Srodowiska SA, is the main candidate to become head of the Warsaw Stock Exchange, Rzeczpospolita reported. Boguslaw Bialowas was appointed acting management board president at BOS from June 16, and will be officially named president after approval by Polish regulator FSA.
* The Polish central bank's monetary policy council retained the reference rate at 1.50%, the lombard rate at 2.50%, the deposit rate at 0.50% and the rediscount rate at 1.75%, Warsaw Business Journal wrote.
* Vnesheconombank posted an IFRS net profit of 14 billion Russian rubles for the first quarter, compared with a 58.3 billion ruble net loss one year ago, Vedomosti reported.
* PAO Rosgosstrakh is set to receive a 30 billion Russian ruble contribution from its biggest shareholder, RGS Holding, to help the insurer cover losses from its motor third-party liability insurance business, news agency TASS reported.
* Bulgaria's Financial Supervision Commission approved the merger of Euroins Insurance Group AD's Bulgarian unit Euroins Health Insurance into EIG Re, SEENews reported.
* JSC Halyk Savings Bank of Kazakhstan agreed to sell a 60% stake in JSC Altyn Bank to China CITIC Bank Corp. Ltd. and China Shuangwei Investment Co. Ltd. Halyk Bank's stake in Altyn Bank will drop to 40% following completion, expected in the second half.
* A London court backed OJSC International Bank of Azerbaijan's petition to prevent creditors from pursuing legal action against its assets and liabilities in the U.K., Reuters reported.
* Türkiye Sinai Kalkinma Bankasi AS completed its capital increase from 2.05 billion Turkish lira to 2.4 billion lira.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: China investors to buy Kazakh bank stake; Reliance unit eyes stake sale via IPO
Middle East & Africa: S&P cuts Qatar; South Africa may trim rates sooner; Sanlam warns on profit
Latin America: Temer said to retaliate against J&F; court decision won't impact Banorte result
North America: Cordray faces possible contempt charges; JPMorgan applies to delist from LSE
North America Insurance: Senate GOP divided on Medicaid; UnitedHealth ups dividend
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
Santander to capitalize on Spanish, Portuguese recovery with Banco Popular buy: Santander's purchase of its failing rival Banco Popular will enable it to capitalize on an ongoing economic recovery in Spain and Portugal, while an improving property market should ease the process of flushing out Popular's toxic real estate loans.
EU's 'too big to fail' powers pass 1st test, but questions linger: The first post-crisis use of the new EU bank resolution mechanism enabled a quick sale of Banco Popular to Santander, but left questions for markets and investors about the consequences of the deal.
UK digital startup Tandem expects to regain banking license soon, founder says: Having seen its banking license withdrawn following the loss of a key investment, Tandem now expects to regain the permit in early autumn, CEO and founder Ricky Knox said.
Leo Magno, Ed Meza, Meike Wijers, Gerard O'Dwyer, Beata Fojcik, Mike Hatzidakis, Ali Kayalar, Heather O'Brian, Brian McCulloch, Sophie Davies and Helen Popper contributed to this report.
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