The Conservatives have reached a deal with Northern Ireland’s Democratic Unionist Party to form a government.
The DUP’s 10 MPs will support Theresa May’s minority government under a £1bn confidence and supply agreement, meaning there will be no formal coalition.
The Prime Minister and DUP leader Arlene Foster shook hands today as the members of the parties arrived at Downing Street to complete the deal following two weeks of talks.
The pact comes after the general election resulted in a hung parliament with the Tories falling nine seats short of an overall majority.
As part of the deal, the DUP said the Tories have agreed to improve the treatment of military veterans in Northern Ireland. But the DUP played down reports that it had sought £2bn in extra funding for Northern Ireland in return for their support to the Conservatives.
BREAKING: DUP and Conservatives sign deal to keep Theresa May in Downing Street.
— Paul Brand (@PaulBrandITV) 26 June 2017
DUP Leader giving press statement outside Number 10 as if she is Prime Minister. This is how low the Conservatives and Theresa May have sunk pic.twitter.com/hy057bTb51
— Richard Burgon MP (@RichardBurgon) 26 June 2017
Italian government agrees to bailout of two banks
Italy’s government has agreed to bailout two banks in the Venice region at a total cost of up to €17bn.
Veneto Banca and Banca Popolare di Vicenza will be split into ‘good’ and ‘bad’ bank. The ‘good’ assets will be bought by Italy’s biggest retail bank, Intesa Sanpaolo and the government will give €5bn to Intesa.
The banks will then be liquidated, leaving the taxpayer to cover the bill for bad loans and restructuring costs.
The government will provide state guarantees worth up to €12bn to cover potential losses at the ‘bad’ bank, meaning the total cost could reach €17bn.
Last week the European Central Bank said the banks were failing or likely to fail and turned the matter over to the Single Resolution Board in Brussels for disposal. The SRB then passed the issue back to Italian authorities to allow the banks to be wound down.
Italian Prime Minister Paolo Gentiloni said the bailout was needed to ensure "the good health of our banking system" and protect savers.
German conservative MEP Markus Ferber expressed his disappointment at the rescue deal, saying the "European Commission accompanies the Banking Union to its deathbed".
“The promise that the tax payer will not stand in to rescue failing banks anymore is broken for good.”
RBS axes more than 400 UK jobs
Royal Bank of Scotland (LON:RBS) is slashing 443 jobs in the UK as part of plans to move roles dealing with business loans to India.
The state-owned lender said the jobs would be transferred to Mumbai as it continues its restructuring to cut costs.
“As we become a simpler, smaller, bank, we are making some changes to the way we serve our customers,” an RBS spokesperson said.l
“Unfortunately, these changes will result in the net reduction of 443 roles in the UK. We realise this will be difficult news for staff and we will do everything we can to support those affected, including redeployment into new roles where possible. All roles which require customer contact will remain in the UK."
RBS moved at least 400 roles to India last year, including some 300 investment banking jobs. The group also cut more than 500 jobs last year as it carried out a plan to replace the staff giving investment tips with robo-advisors.
In March this year the bank said it was shedding 158 branches, mostly NetWest outlets, hitting up to 362 jobs.
Sainsbury's attempts to quell possible rebellion over Nisa takeover
J Sainsbury plc (LON:SBRY) has sweetened its offer to buy convenience store chain Nisa with a proposal that entrepreneurial shopkeepers can keep their independence after the takeover.
The proposal is an attempt to quell a possible rebellion over its planned acquisition of Nisa, The Telegraph reported. The supermarket entered talks with Nisa last week, which has angered some members of the convenience store who want it to retain its mutual status.
Nisa has completed a £160mln refinancing of its debt, jointly provided by HSBC and Wells Fargo, amid a turnaround plan under chief executive Nick Read. The new debt package will be used to boost the group’s expansion plans.
Sainsbury’s takeover of Nisa comes as Tesco (LON:TSCO) tries to close in on a deal to buy wholesaler Booker.