The FTSE MIB slipped to 42,474 on Wednesday as investors digested cautious comments from Fed Chair Jerome Powell on the timing of further US rate cuts and followed domestic merger headlines. Leonardo jumped 4.5% after hawkish NATO remarks from US President Trump boosted defense names. Banco BPM gained 1.2% as the Italian government said it would set conditions on a potential tie-up with Credit Agricole, while UniCredit added 0.3% amid ongoing takeover speculation with Commerzbank. In contrast, Monte dei Paschi lost 1.9%, the bank was listed as a pontential M&A option by Banco BPM.