The week ahead

Brexit remains in the spotlight this week as Theresa May is expected to lay out her offer to fellow EU leaders for the rights of both British and EU citizens living within the EU and Great Britain. Continental leaders criticised Britain’s initial proposal however the UK government is braced to defend a key part of it.

May is due to publish 15 pages of details on Monday on how she intends to protect the rights of millions of EU nationals residing in Britain once the country has left the bloc in 2019.

Italy’s Bailout & RBS Relocation

Italian authorities announced on Sunday that they are prepared to spend as much as €17 billion as part of the shutdown of two regional banks, Veneto Banca & Banca Popolare di Vicenza, in a deal that will transfer the lender’s best assets to Intesa Sanpaola SpA, for a nominal sum.

On Friday evening, the European Central Bank declared that the pair were set to fail, having “repeatedly breached supervisory capital requirements”. Both have been flailing for several years despite efforts to shore up their capital and restore their health.

Meanwhile, British lender Royal Bank of Scotland is planning to relocate 443 jobs dealing with business loans to India as part of a restructuring program with the intention of becoming a smaller bank. All roles which require customer contact however will remain in the UK. The banks shares opened higher on Monday morning.

Holland & Barrett – SOLD

Holland & Barrett, the UK's biggest health food retailer, is being bought by a Russian billionaire for £1.8bn. L1 Retail, a fund controlled by Mikhail Fridman, is buying the 1,150-shop chain from US private equity firm Carlyle.

"We believe that the company is well positioned to benefit from structural growth in the growing £10bn health and wellness market and has multiple levers for long-term growth and value creation," said L1 Retail managing partner Stephan DuCharme.

Markets on Monday

Global stocks advanced on Monday morning as Nestle SA sparked a rally in European shares and oil climbed for a third straight session after entering a bear market last week.

The Stoxx Europe 600 Index gained 0.7 percent as of 8:19 a.m. in London, with Nestle surging 3.8 percent, the most in a year. L’Oreal jumped 2.6 percent, poised for a record close.

The pound increased 0.3 percent to $1.2751, bringing its four-day gain to 1 percent. The euro was flat at $1.1199.