The U.S. Department of Justice (DOJ) investigation into German insurer Allianz is looking at possible misconduct by fund managers and misrepresentation of risk to investors, three people with knowledge of the matter told Reuters. The probe, disclosed by the company on Aug. 1, is focused on Allianz funds that used complex options strategies to generate returns but racked up massive losses when the spread of COVID-19 triggered wild stock market swings in February and March 2020.

European Union finance ministers said on Friday that changes to EU budget rules, now under review, should support investment in the post-pandemic economy and allow for a more realistic path in cutting some countries' huge public debts, Reuters reported. Finance ministers from the 27-nation bloc are starting discussions during a two-day summit in the Slovenian town of Brdo on how to amend the rules to better fit changed economic realities once they are reinstated from 2023. "We will need a debt reduction path that is realistic for all member states.

EasyJet Plc rejected an unsolicited takeover approach and said it plans to raise more than $2 billion, giving the U.K. airline a buffer to see it through a return to leisure travel, Bloomberg News reported. The shares fell as much as 14%. The preliminary offer was conditional, all-stock and had a low premium, EasyJet said Thursday in a statement. It was rejected unanimously by the board and has been withdrawn. Instead, the discount airline will sell 1.2 billion pounds ($1.65 billion) of stock through a rights offering and raise an added $400 million in debt.

European power companies could be burdened with debt and face credit rating downgrades if they fail to take action to reach climate neutrality by the middle of the century, a new study says, Bloomberg News reported. The European Union plans to reach net zero emissions by 2050 as part of efforts to curb global temperature rises and mitigate climate change. As power generation is the largest single source of carbon dioxide emissions, curbing pollution from the sector is crucially important to achieving the bloc’s climate targets.

Irish inflation hit a 10-year high in August, driven by a rise in the cost of transport, housing, restaurants and hotels, the Irish Times reported. Central Statistics Office (CSO) data shows consumer prices rose 2.8 per cent in the 12 months to the end of August, the sharpest level of price growth seen since November 2011. The latest figures come amid a series of warnings about rising costs for businesses in several sectors. The acceleration in prices is connected to the resumption of economic activity after lockdown, supply chain blockages, higher oil prices and Brexit.

UniCredit and Italy’s Treasury are set to extend discussions over the sale of state-owned bank Monte dei Paschi di Siena beyond an exclusivity deadline on Wednesday, Reuters reported. Italy’s second-largest bank agreed at the end of July to start exclusive talks to evaluate buying “selected parts” of Monte dei Paschi (MPS), which is 64% owned by the Treasury following a 2017 bailout. The two parties agreed to guidelines for an accord at the time stating a deal must leave UniCredit’s capital reserves unaffected and boost its earnings per share by at least 10%.

German industrial production increased in July after three consecutive months of declines that have reflected supply chain problems, official data showed on Tuesday, the Associated Press reported. Overall production increased by 1% compared with the previous month, the Economy Ministry said. In June, it had dropped 1%. There were bigger increases in the production of cars and car parts, which was up 1.9%, and machinery, which rose 6.9%.

The European Union moved Tuesday to force Poland to comply with the rulings of Europe’s top court with plans to seek daily fines against the nationalist government in Warsaw in a long-running dispute over Poland’s judicial system, the Associated Press reported. In a rare move, the EU’s executive branch, the European Commission, said it wants the European Court of Justice to “impose financial penalties on Poland to ensure compliance” with one of the tribunal’s orders from July.

The $10 billion takeover battle for British supermarket group Morrisons between two U.S. private equity groups looks set to be decided by a rarely used auction process, Reuters reported. Morrisons said on Wednesday that it was in talks with Clayton, Dubilier & Rice (CD&R), Fortress Investment Group and Britain's takeover regulator about an auction to settle its future. Last month, Morrisons agreed a 7 billion pound ($9.6 billion) offer from CD&R, which has former Tesco boss Terry Leahy as a senior adviser.

German asset management company Deka Investment has taken action, and eyes further steps, to claim damages from the insolvent payment processing company Wirecard, a spokesperson for the company told IPE. Deka Investment has already notified possible claims for its invested capital in the context of the insolvency proceeding relating to Wirecard’s assets, the spokesperson added. Asked whether Deka was planning further legal action, the spokesperson said the asset management firm was in “close contact with a law firm” on possible action against other parties in the interests of its investors.