>>> BMPS BoD approves upsizing of capital increase to EUR 5bn ( from E3bil)

BMPS BoD approves upsizing of capital increase to EUR 5bn

The Board of Directors of Banca Monte dei Paschi di Siena met today and resolved unanimously to submit to the Extraordinary Shareholders’ Meeting a
proposal to upsize the share capital increase to up to maximum of EUR 5bn, replacing the original amount of EUR 3bn already approved on 28 December 2013.

In a context characterized by high uncertainty and limited visibility on the process of the Comprehensive Assessment, which includes stress test and AQR, conducted by the European Regulatory Authorities, the Bank has decided to align its capital ratios to best-in-class market standards. On a pro-forma basis, post the EUR 5bn capital increase and assuming the repayment of EUR 3bn of New Financial Instruments, the Bank CET 1 ratio at 31 December 2013 will amount to 13.6% with a phased-in equal to zero and 11.3%1 on a Basel 3 fully loaded basis.

The upsizing of the capital increase up to EUR 5bn is intended to provide the Bank with a capital buffer functional to the absorption of potential negative impacts arising from the Comprehensive Assessment and continue to meet its commitments under the Restructuring Plan.

Moreover, the larger size of the capital increase would allow BMPS to accelerate the implementation of the Restructuring Plan 2013-2017, to benefit from opportunities arising from a potential recovery of macro-economic conditions and the banking activity and to potentially accelerate, depending on the outcome of the Comprehensive Assessment, the full repayment of the New Financial Instruments with respect to the schedule agreed with DG Comp.

The Extraordinary Shareholders' Meeting will be convened on 20, 21 and, if necessary, 22 May in the first, second and third call respectively, at 9.30 am in Siena, Viale Mazzini 23. Along with the approval of the capital increase, the Extraordinary Shareholders' Meeting will be called upon to grant the Board of Directors all necessary powers to define the terms and conditions for the capital increase and, nearer to the start of the transaction, to set the subscription price for newly-issued ordinary shares, the maximum number of new ordinary shares to be issued and related rights exchange ratio.

The capital increase of EUR 5bn is already guaranteed by a pre-underwriting agreement which concerns - on certain terms and conditions – the commitment to underwrite any newly issued ordinary shares remaining unsold at the conclusion of the offer for a maximum amount equal to the total size of the capital increase. In particular, the same financial institutions that signed last March the pre-underwriting agreement, namely UBS as Global Coordinator and Joint Bookrunner, Citigroup, Goldman Sachs International and Mediobanca as Co-Global Coordinators and Joint Bookrunners and Barclays, BofA Merrill Lynch, Commerzbank, JP Morgan, Morgan Stanley and Société Générale as Joint Bookrunners, have agreed to modify the terms and conditions in line with the transactionproposed by the Shareholders’ Meeting.

As part of the transaction, UBS is acting as financial advisor to Banca Monte dei Paschi di Siena, MPS Capital Services is acting as co-financial advisor to Banca Monte dei Paschi di Siena and Linklaters is acting as legal advisor to Banca Monte dei Paschi di Siena.

Source Company Press Release*

>>> Merger Talks Between Gold Giants Break Down

Merger Talks Between Gold Giants Break Down Barrick Gold, Newmont Mining Were Said To Be in Advanced Discussions

Barrick Gold Corp. ABX.T -1.88% and Newmont Mining Corp. NEM -0.88% were in advanced talks this week over a deal that would have combined the world's two largest gold producers, according to people familiar with the matter.

The talks broke down in the past few days, the people said. It's not the first time that the two companies, with a combined market value of more than $30 billion, have discussed a deal, and it's possible they could do so again.

The deal talks come as the sector adapts to the lower price of gold. The precious metal's futures fell 28% last year, the biggest annual drop since 1981.

Although the price of gold has rebounded this year, shares of Toronto-based Barrick, which is already the world's largest producer of the yellow metal, have slumped 20.5% over the past 12 months, giving it a current market value of $21 billion.

Shares in Greenwich Village, Colo.-based Newmont have slipped 35.3% over the same period, giving it a current market value of $11.8 billion.

>>> Leaflet tells Jews to register in East Ukraine

World leaders and Jewish groups condemned a leaflet handed out in the eastern Ukrainian city of Donetsk in which Jews were told to "register" with the pro-Russian militants who have taken over a government office in an attempt to make Ukraine part of Russia, according to Ukrainian and Israeli media.

Jews emerging from a synagogue say they were handed leaflets that ordered the city's Jews to provide a list of property they own and pay a registration fee "or else have their citizenship revoked, face deportation and see their assets confiscated," reported Ynet News, Israel's largest news website, and Ukraine's Donbass news agency.
Secretary of State John Kerry said the language of the leaflets "is beyond unacceptable" and condemned whomever is responsible.
"In the year 2014, after all of the miles traveled and all of the journey of history, this is not just intolerable — it's grotesque," he said. "And any of the people who engage in these kinds of activities — from whatever party or whatever ideology or whatever place they crawl out of — there is no place for that."
U.S. Ambassador to Ukraine Geoffrey Pyatt called the leaflets "the real deal." But the man whose name appears on the leaflets, Denis Pushilin, identified as chairman of "Donetsk's temporary government," said he was not responsible.
Pushilin, who is a leader of the pro-Russian movement in Donetsk, acknowledged that leaflets were distributed under his organization's name but denied any connection to them, Ynet reported.
Donetsk is the site of an "anti-terrorist" operation by the Ukraine government, which has moved military columns into the region to force out militants who are demanding a referendum be held to join Russia.
Emanuel Shechter, in Israel, told Ynet his friends in Donetsk sent him a copy of the leaflet through social media.
"They told me that masked men were waiting for Jewish people after the Passover eve prayer, handed them the flier and told them to obey its instructions," he said.
READING BETWEEN LINES
The leaflet begins "Dear Ukraine citizens of Jewish nationality" and states that all people of Jewish descent over 16 years old must report to the Commissioner for Nationalities in the Donetsk Regional Administration building and "register."
It says the reason is because the leaders of the Jewish community of Ukraine supported Bendery Junta, a reference to Stepan Bandera, the leader of the Ukrainian nationalist movement that fought for Ukrainian independence at the end of World War II, "and oppose the pro-Slavic People's Republic of Donetsk," a name adopted by the militant leadership.
The leaflet then described which documents Jews should provide: "ID and passport are required to register your Jewish religion, religious documents of family members, as well as documents establishing the rights to all real estate property that belongs to you, including vehicles."
Consequences for non-compliance will result in citizenship being revoked "and you will be forced outside the country with a confiscation of property," it said. A registration fee of $50 would be required, it said.
'SMELLS LIKE PROVOCATION'
Olga Reznikova, 32, a Jewish resident of Donetsk, told Ynet she never experienced anti-Semitism in the city until she saw this leaflet.
"We don't know if these notifications were distributed by pro-Russian activists or someone else, but it's serious that it exists," she said. "The text reminds me of the fascists in 1941," she said referring to the Nazis who occupied Ukraine during World War II.
The Jewish community in Donetsk issued a statement saying the leaflet distribution "smells like a provocation." The chief rabbi of nearby Dnipropetrovsk, Shmuel Kaminezki said, "Everything must be done to catch them."
"It's important for everyone to know its not true," Kaminezki told CNN. "The Jews of Donetsk will not do what the letter says."
Morton Klein, president of the Zionist Organization of America, the oldest pro-Israel group in the USA, said the leaflets should be seen in the context of a rising tide of anti-Semitism across Europe.
"This is a frightening new development in the anti-Jewish movement that is gaining traction around the world," Klein said.
Michael Salberg, director of the international affairs at the New York City-based Anti-Defamation League, said it's unclear whether the leaflets were issued by the pro-Russian leadership or a splinter group operating within the pro-Russian camp.
But he said the Russian side has used the specter of anti-Semitism in a cynical manner. Russia and its allies in Ukraine have issued multiple stories about the threat posed to Jews by Ukraine's new pro-Western government in Kiev, Salberg said.
"The message is a message to all the people that is we're going to exert our power over you," he said. "Jews are the default scapegoat throughout history for despots to send a message to the general public: Don't step out of line."

>>> US Closing Dow-0,10% S&P+0,14% Nasdaq+0,23%

Closing Market Summary: Stocks End Strong Week on Mixed Note

The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.

Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 billion (expected $15.52), while IBM revealed in-line earnings on revenue that was roughly $500 million below expectations.

The results from the two pressured the technology sector (-0.3%), which was down as much as 1.0% during early action. The sector was able to shed the bulk of its losses thanks to strength among chipmakers and other high-beta components. Chipmakers rallied throughout the session after upbeat earnings from SanDisk (SNDK 82.99, +7.14) and Taiwan Semiconductor (TSM 20.71, +0.56) underpinned the space. The broader PHLX Semiconductor Index, meanwhile, jumped 1.9%.

Even though Google and IBM pressured the market early on, equity indices were able to rebound with help from several other major listings that reported above-consensus results. General Electric (GE 26.56, +0.44), Goldman Sachs (GS 157.44, +0.22), Morgan Stanley (MS 30.76, +0.87), and PepsiCo (PEP 85.55, +0.78) all beat their estimates.

Also of note, the biotech space remained volatile with the iShares Nasdaq Biotechnology ETF (IBB 222.16, -0.57) spending some time on each side of its flat line. Furthermore, the ETF ended just above its 200-day moving average (220.19) after spending the past week near that key level.

Although the Nasdaq and S&P 500 posted modest gains, the Dow Jones (-0.1%) was unable to catch up to its peers as losses in several large components like IBM, American Express (AXP 86.22, -1.18), and UnitedHealth (UNH 75.78, -2.41) acted as a wet blanket on the price-weighted index.

Treasuries retreated steadily throughout the session, causing the benchmark 10-yr yield to add nine basis points to 2.72%. The slide took place amid reports from Geneva indicating representatives from the European Union, United States, Ukraine, and Russia have reached an agreement on steps aimed at de-escalating the crisis in Ukraine. The agreement was announced by Russia's Foreign Minister Sergei Lavrov, who also said Ukraine needs ‘decentralization' and ‘more regional powers.'

Trading volume was above average thanks to a boost in activity resulting from options expiration. As a result more than 800 million shares changed hands at the New York Stock Exchange.

Today's data was limited to two releases:

* The initial claims level increased to 304,000 for the week ending April 12 from an upwardly revised 302,000 for the week ending April 5. The consensus expected the initial claims level to increase to 312,000. The Department of Labor stated that there were no special factors impacting the claims data. However, we remain skeptical of that. Over the past few years, the DOL has had extreme difficulties managing the seasonal adjustment factors around the Easter holiday. With Easter falling on a later date this year, we suspect that the claims are underreporting actual layoff levels. We expect some volatility in the next few weeks before the initial claims level settles back in the 320,000 -- 330,000 range by the beginning of May.  * The Philadelphia Fed's Business Outlook increased to 16.6 in April from 9.0 in March. The consensus expected the index to fall to 8.6. There was a general strengthening across the board. Shipments spiked to 22.7 in April from 5.7 in March. Most of the gain was the result of a significant strengthening in new orders demand, 14.8 from 5.7. The gains in shipments, however, may not be sustainable. Unfilled orders softened as the related index fell to 2.0 in April from 2.6 in March. Without a steady supply of backlogs, weaker new orders will pull down shipments growth. The employment index increased to 6.9 in April from 1.7 in March. 

Monday's data will be limited to the Leading Indicators report for March which will be released at 10:00 ET.

* S&P 500 +0.9% YTD  * Dow Jones Industrial Average -1.0% YTD  * Nasdaq Composite -1.9% YTD  * Russell 2000 -2.1% YTD 

>>> U.S., EU, Russia Talks Working Toward Joint Statement on

U.S., EU, Russia Talks Working Toward Joint Statement on Ukraine First Sign That Geneva Discussions are Making Progress

GENEVA—The foreign ministers of Ukraine, Russia, the U.S. and the European Union are working on a joint statement, in a sign that talks in Geneva may have made progress, according to two officials involved in the talks on Thursday.

Both officials said it wasn't yet clear whether a joint statement would eventually be agreed among all four governments.

No details were immediately available.

Thursday's meeting, which started late morning in Geneva, is the highest-level direct talks between Moscow and Kiev since Russia's annexation of Crimea. (Follow the latest updates on the crisis in Ukraine.)

Three pro-Russian protesters have been killed and thirteen wounded in the Black Sea port of Mariupol. Ukrainian soldiers opened fire when three hundred pro-Russian separatists stormed the National Guard base throwing Molotov cocktails. Western diplomats had said no major breakthrough is likely but that they hoped the talks would start a process which could ease tensions between Ukraine and Russia and calm the troubles in eastern Ukraine.

Pro-Russian separatists have seized government buildings in a number of towns in eastern Ukraine in recent days. Washington has accused Russia of backing the violence.

Russia, which has tens of thousands of troops on Ukraine's border, has repeatedly denied intervening in Ukraine.

Diplomats have said the test is to design a package of steps that can win Russian buy-in without pressing Kiev into political changes it doesn't want. Moscow has backed a call by pro-Russian separatists to give Ukraine's eastern provinces much greater autonomy from Kiev.

Russian President Vladimir Putin told a live Russian TV show he hopes he doesn't have to send Russian troops into Ukraine but hasn't ruled it out, accusing the Kiev government of committing "a serious crime" by using the military to quell unrest. "This will be the first opportunity for this contact group to meet," said White House spokesman Jay Carney late Wednesday. "And we expect the conversation to focus on the need to de-escalate, the need for Russia to demobilize its troop presence on the border with Ukraine, the need for armed separatist groups within Ukraine to disband and disarm."

Russian President Vladimir Putin said Thursday morning the Geneva talks are a chance to find compromise on Ukraine, but he accused the Kiev government of committing a "serious crime" for sending troops into the east.

The U.S. and the EU sought to raise the ante on Russia to engage in meaningful talks. Mr. Carney said the U.S. had "additional sanctions prepared and we'll impose them as appropriate."

The EU is currently deciding how many Russian officials to add to a travel ban and asset freeze list and the bloc's executive. The European Commission on Wednesday sent details to member states about possible broader sanctions measures, although there are divisions over what could trigger this next phase of restrictions.

The North Atlantic Treaty Organization also said Wednesday it would increase its flights over the Baltic nations and send ships to the Mediterranean and Baltic seas in response to Russia's threat to Ukraine.

Russia has repeatedly denied it is directly involved in the latest violence in eastern Ukraine and said it has troops on the border only as part of a military exercise.

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"It's always possible if there's a will," he said.

Ukraine's acting President Oleksandr Turchynov said Monday that a referendum could be held alongside the presidential election vote that could pave the way for greater regional autonomy.

Ukraine's parliament approved a statement on Wednesday welcoming talks but warning that the country's constitutional arrangements and foreign policy choices "cannot be the subject of international negotiations."

Thursday's discussions are also likely to touch on energy issues. Russia has hiked the price for gas exports to Ukraine. Mr. Putin wrote last week to 18 EU leaders warning Moscow may have to demand Kiev starts making prepayments for gas because of unpaid bills. He warned European consumers could suffer if there is any eventual disruption in Russian gas supplies through Ukraine.

European foreign ministers on Monday asked the EU's executive to respond to Mr. Putin's letter for the whole bloc.