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Thousands of Philippine and American soldiers began annual war games on Monday near disputed waters in the South China Sea, testing the readiness of the two oldest security allies in the southeast Asian region to respond to any emergency.

The European Union's likely next trade chief will face tough questions about how she would handle free trade negotiations with the United States when confirmation hearings for the new European Commission open on Monday.

Italian luxury fashion house Prada SpA said on Monday its chairwoman Miuccia Prada and her husband, chief executive officer and fellow shareholder Patrizio Bertelli, are being investigated by Italian authorities over past taxes.