MILAN (Reuters) – Italy passed a tough market test on Friday as its three-year borrowing costs fell well below 5 percent at an auction hours after Moody’s cut the country’s rating to two notches above junk status.

The U.S. rating agency surprised markets on Friday by lowering Italy’s sovereign debt rating to Baa2 amid persistent worries about Spain’s ability to sort out its banking problems, concerns about a Greek exit from the euro and doubts over Italy’s long-term resolve to push through much-needed reforms.

MILAN/LONDON, July 12 (Reuters) – Italian fashion house
Valentino has been snapped up by the Qatari royal family for 700
million euros ($857.5 million), the latest purchase of a top
European luxury brand by an emerging market investor.

The luxury label loved by Jacqueline Kennedy Onassis and
Audrey Hepburn said on Thursday that Mayhoola for Investments
S.P.C, an investment vehicle backed by a leading Qatari, had
bought it from UK-based private equity fund Permira and minority
investors the Marzotto textile entrepreneurs.

ZURICH/MILAN (Reuters) – Julius Baer (BAER.VX: Quote, Profile, Research, Stock Buzz) will pool its Italian activities with Milan-based asset manager Kairos Group for a 20 percent stake in the combined entity, two sources familiar with the matter told Reuters on Thursday.

The Swiss bank will have a long-term option to lift its stake or take over entirely the combined Julius Baer SIM-Kairos entity, which will apply for an Italian bank license, according to both sources.