Italy urged torespect EU rules: Eurogroup President Jeroen Dijsselbloem said Italy shouldrespect EU rules on bailing in investors of a troubled bank that needs stateaid, saying the rules are "strict in the sense that they make very clearwhen there needs to be a bail-in and who needs to be bailed-in in whatorder," Bloomberg News reports.The IMF saidyesterday that very high nonperforming loans and lengthy judicial processes arestraining Italian banks' balance sheets, adding that concerns related to thebail-in of retail investors should be dealt with appropriately.
* was working withBanco Santander SA tofind a solution to progress the deal to merge UniCredit asset management unit Pioneerwith Santander Asset Management, Reuters reports. The two sideshad been in talks to combine the entities for about two years but the Financial Times suggestsa deal would not take place as a result of the Brexit vote. Unnamed sources forthe Ana Botín-led group would neither confirm nor deny rumors that an agreementhad been ratified in November 2015 and is now subject to the approval ofregulatory authorities in 31 countries, ElMundo writes.
UK AND IRELAND
May to become UK PM:U.K. Home Secretary Theresa May is set to become Britain's new tomorrow afterAndrea Leadsom pulled out of the race to succeed outgoing Prime Minister DavidCameron as leader of the ruling Conservative Party, leaving May the last womanstanding. Cameron will offer his resignation tomorrow, allowing May to takeover in the evening. BBCNews, SkyNews and The Guardian are among those withcoverage.
* May said "Brexit means Brexit" and pledged tomake a success of her country's decision to leave the EU, the Financial Times reports.Meanwhile, Foreign Secretary Philip Hammond emerged as a bookmaker favorite tosucceed George Osborne as the next Chancellor, though May could also choose tokeep Osborne in the job, accordingto Bloomberg News.
* Osborne said in New York yesterday that Britain will"do everything we can to make the U.K. the most attractive place in theworld to do business," The Guardianwrites.
* Stephen Hammond, a lawmaker sitting on the U.K. TreasurySelect Committee, said he expects May to make the City of London's future in apost-Brexit U.K. a high priority in discussions, Reuters reports.
* HSBCHoldings Plc's chief economist Stephen King said a long and slowBrexit from the EU could turn the U.K. into a "zombie member" of thebloc, as the country will be forced to obey EU rules but will have lessinfluence in forming them, The DailyTelegraph reports.
* Meanwhile, the first half saw 647 M&A deals worth£41.3 billion announced in the U.K., dropping from 702 deals worth £122.9billion in the year-ago period, due to uncertainty surrounding the Brexitreferendum, City A.M. reports,citing data from Mergermarket.
* Royal Bankof Scotland Group Plc could face a speedbump in the proposed saleof its Greek ship financing unit after the U.K.'s Brexit vote helped coolinvestor interest in the sale, insiders tellReuters.
* AberdeenAsset Management Plc said yesterday that it is extending thetrading suspension on its £3.2 billion U.K. property fund for two more days toensure all investors are contacted, accordingto Reuters.
* A U.S. congressional report published yesterday revealedthat the Department of Justice decided not to prosecute HSBC in 2012 for moneylaundering violations partly due to warnings from Osborne and the former FSAthat doing so could have led to a global financial disaster, The Guardian reports.
* The U.K. government launcheda consultation on allowing automated vehicles to be insured, amid expectationsthat driverless cars will be on British roads from the mid-2020s onward. Theconsultation will last for nine weeks.
* The U.K. Treasury saidyesterday that 72 financial services firms signed up to a government charterthat commits companies to link the remuneration packages of their executiveteams to gender diversity targets. The firmscollectively employ more than half a million people.
GERMANY, SWITZERLANDAND AUSTRIA
Credit Suisse closesRussian private bank unit: Credit Suisse Group AG is shutting down its privatebanking unit in Russia and is redirecting client accounts to Switzerland, ForbesRussia writes.The bank said it will stay in the country but will limit its serviceportfolio for private clients to investment advisory.
* UniCreditBank Austria AG could receive a capital injection from Germany'sUniCredit Bank AG tostrengthen it for the planned spin-off of its eastern European business, DerStandard reports.
* UBS GroupAG imposed a hiring freeze in its wealth management unit as part ofits cost-cutting program, Bloomberg News reports.
* DeutscheBörse AG and LondonStock Exchange Group Plc agreed to to 60% from 75% the minimumacceptance threshold of the tender offer by HLDCO123 Plc to acquire allregistered no-par-value shares in the German firm, as part of the plannedmerger of the two companies.
* Meanwhile, Klaus Nieding, vice president of German privateinvestor association Deutsche Schutzvereinigung für Wertpapierbesitz eV, advisedshareholders not to agree to the merger of Deutsche Börse and LSE. "Thereis no Plan B after the Brexit. I don't think the merger has a reasonable chanceof success," he tellsHandelsblatt.
* PostFinanceAG saysit launched a joint venture with German online crowd lending marketplaceLendico Global Services GmbH, Lendico Schweiz AG, which will offer crowdfinancing for small and medium-sized enterprises in Switzerland starting in thefourth quarter.
FRANCE AND BENELUX
Dutch government bondyields dip: Dutchgovernment bond yields dipped to a record low amid fears over economic growthafter Britain's vote to leave the EU, DeTelegraaf reports.Dutch 10-year yields dropped to minus 0.012% after going into negativeterritory for the first time in history last Wednesday.
* ABN AMRO Group NV will not be able to recoup a €175million loss it made with investments in Bernie Madoff's Ponzi scheme after theDutch Supreme Court threw out an appeal, DeTelegraaf reports.The Dutch lender estimated in 2008 it had lost about €1 billion in Madoff'sscheme. It has since recouped about half of that.
* The Dutch government has made €47 millionmore than anticipated from selling its stake in insurer ASR, Het Financieele Dagblad reports.
* SWIFT joined forces with Fox-ITand BAE Systems to improve its cybersecurity, Les Echos notes.
SPAIN AND PORTUGAL
Spain, Portugal await EC decision on sanctions: The EuropeanCommission is expected to decide today whether or not to adopt sanctionsagainst Portugal and Spain for breaching budget deficit limits. If the move isapproved, ministers will have 20 days to decide on the value of the fines,which could reach up to 0.2% of the countries' GDP, Correio da Manhã reports.
* Portuguese Finance MinisterMário Centeno has been trying to ensure that zero sanctions are implemented incase the EC decides to adopt punitive measures, Diário Económico writes.In an interviewwith TSF Rádio Notícias, he criticized the sanctions, arguing that Portugal hasbeen on a recovery path despite its slow growth.
* Banif-BancoInternacional do Funchal SA signed a multiphase for the sale of its Brazilianoperations to BTG Pactual Group. The deal will roll out as a joint venture betweenthe two banks and progress into a complete acquisition by BTG Pactual.
ITALY AND GREECE
UniCredit approves strategic review, sells FinecoBank stake:UniCredit's board approved the launch of an in-depth strategic review as itseeks to boost capital and profitability, Reuters says.UniCredit also launched a placement of up to 10% of online broker via anaccelerated book-building to institutional investors, a deal that CEOJean-Pierre Mustier said could boost UniCredit's common equity Tier 1 ratio byup to 7 basis points and leave UniCredit with a majority stake in FinecoBank.
* Italy's treasury aims toapprove a decree offering banks a state guarantee to help them sell off badloans by the beginning of August, a source tellsReuters.
* Quaestio, the asset manager forItalian bank rescue fund Atlante, proposed that Beniamino Anselmi and CristianoCarrus be respectively appointed as chairman and CEO of in an Aug. 8shareholder meeting, MF says.Atlante owns 98% of Veneto Banca.
* Greece's Ministry of Finance put forward a proposal for the immediaterelaxation of capital controls in the country, Naftemporiki reports.The proposals include allowing depositors to withdraw €840 every fortnightinstead of €420 a week.
* Bank of Greece Governor Yiannis Stournaras described badloans as "gangrene" on the banking system and spoke of the need toreduce it by 40% or €41 billion by 2019, Imerisiawrites.Stournaras added that this should be a major goal of banks as it will lead to areturn to profitability.
* Tax authorities in Greece identified hundreds of allegedGreek tax evaders as holders of bank accounts in Switzerland and startedopening legal proceedings against them, Tages-Anzeiger notes.Total balance on the accounts is said to be up to CHF4 billion.
DNB, Tryg post Q2results: DNB ASAtoday reportedgroup profit attributable to shareholders of DNB Bank ASA of 4.11 billion Norwegian kroner in thesecond quarter, down on a yearly basis from 4.55 billion kroner. The group'sattributable first-half profit declined year over year to 8.89 billion kronerfrom 10.69 billion kroner.
* TrygA/S today reportedsecond-quarter profit of 734 million Danish kroner, up from 580 million kronerin the year-ago period. Profit on gross business amounted to 907 million kronerin the second quarter, compared to 11 million kroner a year ago.
* SBAB isforecasting a continuance of low interest rates in Sweden in the wake of recentdevelopments, including the Riksbank's decision to hold the repo rate unchangedat negative 0.5% and the Brexit vote, DagensIndustri reports.The central bank is not expected to increase the repo rate again until 2018.
Alior Bank launchestender for Bank BPH stake: Alior Bank SA announced a tender offer for a 66% stakein Bank BPH SA,offering 31.18 Polish zlotys per share, news agency PAP says. Bank BPHshareholders can subscribe to the offer between Aug. 1 and Aug. 16. The tenderoffer is part of acquisition of Bank BPH's core business from GE Capital.
* Vnesheconombank is discussing the sale of its Ukrainianunit PSCProminvestbank with several interested parties and expects to leavethe Ukrainian market by mid-2017, news agency Prime reports.
* Russian First Deputy Prime Minister Igor Shuvalov said theplanned sale of a state stake in JSC VTB Bank will not be carried out in 2016, Vedomosti reports.Russia earlier said it was planning to divest a 10.9% holding in the lender.
* Santander, which is present in Poland through , isinterested in acquiring RaiffeisenBank International AG unit Raiffeisen Bank Polska SA, Reuters reports.
* Polish financial regulator FSA gave until Aug. 12 topresent another version of its recovery program, Rzeczpospolita reports.
* Turkey's Fibabanka AS lifted its growth target for 2016 to 40%from 25% after signing a subscription agreement with the Abraaj Group for a9.95% stake in Fibabanka, Dunya reports.
* Halk Sigorta AS, the insurance arm of , decided to lay off GeneralManager Bulent Somuncu. Deputy General Manager Bulent Karan is temporarilytaking charge of the company.
* The Kazakh central bank yesterday decided to lowerthe base rate to 13.0% with a band of plus/minus 1%, saying inflation willremain within its target range over a 12-month period and up until 2017-end.
IN OTHER PARTS OF THEWORLD
Asia-Pacific: BTMU, Mizuho to join international payment system; ClearView eyesAsian buyer
Middle East and Africa: Israeli court stays pay cap proposal; Angola lowers growthforecast
Latin America: BM&FBOVESPA ups stake in Santiago stock exchange
North America: Thomson Reuters selling intellectual property, science biz for $3.55B;First Hawaiian registers for IPO
North America Insurance: Oregon health insurance co-op folds; Aetna, DOJ officials talkHumana deal
NOW FEATURED ONS&P GLOBAL MARKET INTELLIGENCE
EU-basedinsurance trio likely to stick to remaining UK ops: With their U.K.life insurance operations either reduced or eliminated, AEGON, Ageas and AXAlook set to maintain their presences in the country in the wake of the vote forBrexit.
UBS CEOdenounces tax information requests: Sergio Ermotti also toldSwitzerland's SonntagsZeitung that UBS Group's private wealth clients andinstitutional investors may eventually have to bear the cost of negativeinterest rates.
Sheryl Gesto-Obejera,Arno Maierbrugger, Brian McCulloch, Danielle Rossingh, Praxilla Trabattoni,Mariana Aldano, Heather O'Brian, Mike Hatzidakis, Gerard O'Dwyer, Beata Fojcikand Ali Kayalar contributed to this report.
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