0852 GMT Gains in Italian banks boost Milan’s FTSE Mib index in early trade, after Banca Monte dei Paschi di Siena said it is working with the European Central Bank on a definitive solution to its bad loans woes. Monte dei Paschi shares rise 3%, while Banco Popolare is up 7.6%. Intesa Sanpaolo gains 4.5%, having been briefly suspended from trading due to large rapid gains. “I think that Atlante can solve the issue of bad loans, also those of Monte dei Paschi,” Intesa’s Chief Executive Carlo Messina said at the sidelines of a banking industry event in Rome. Atlante is privately-funded backstop fund for banks orchestrated by the Italian government this spring. The FTSE Mib index trades up 1.6%. (giovanni.legorano[a]wsj.com)
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