Le European stock markets are falling (Ftse Mib -0,9%), weighed down by fears of a new (yet another) political crisis in France, after Prime Minister Francois Bayrou raised the alarm about the stability of the economy and called a vote of confidence for September 8th that could bring down the government. Those paying the highest price for the uncertainty are banks across Europe are in the red weighed down by the big shots quoted in Paris: Crédit Agricole retreats by 5%, BNP Paribas by 4,8% e Société Générale the 6,8%.
Contagion effect: banks plunge into the red on the Milan Stock Exchange.
Contagion effect on Italian financial, with the Ftse Italia Banks which at mid-morning marks -1,96%. The worst stock is Unicredit which, in the aftermath of the Commerzbank rises to 26%, drops 2,2%. Also in deep red is the Popular of Sondrio (-2,1%) And Bper (-1,14%) which yesterday The lists of candidates for the board of directors of the Valtellina bank have been presented. in view of the meeting on September 15th.
The pair formed by goes down Ps (-2,11%) And Mediobanca (-2%), with the market expecting a rebound ahead of the closing of the application period scheduled for September 8th. A decision could come this weekend or early next week. The sell-off is also affecting other major companies in the sector: Intesa Sanpaolo (-1,97%), Bpm bank (-0,92%).
Among the declining stocks are also Finecobank (-1,8%), Azimuth (-1,58%), Generali (-1,5%), Unipol (-1,4%).
The possibility of "aid" in the budget also weighs on Italian banks.
A Business Square, also weighing on the sector is the hypothesis according to which the the government is reportedly considering asking for a "contribution" to credit institutions in view of the next Budget.
The government is already working on the 2026 budget law, and at Palazzo Chigi and Via XX Settembre, they're already thinking about where to find the funds to finance the necessary measures, from pensions to taxes and wages. This year, however, there's no nest egg to count on, and it's already clear that the blanket is short: Finding the necessary funding won't be easy. This is why there's renewed talk of a possible intervention by the banks. Republic, the Government has already decided to convene the ABI, the Italian Banking Association, already during the next week with the aim of finding an agreed solution, thus avoiding a clash not only with the sector, but also within the majority, with Deputy Prime Minister Antonio Tajani who has already said he is opposed to any move on the banks.
Mindful of what happened two years ago, when the tax on excess profits turned into a simple increase in reserves, the government seems to be aiming for something different. And among the options on the table is... a new intervention on DTA, the deferred tax assets on which the executive intervened last year by suspending the deduction for 2025 and 2026. “We recall that last year's budget had foreseen a temporary suspension for the years 2025 and 2026, guaranteeing revenue of €3,4 billion. If a similar solution were to be formulated, we do not expect significant impacts on the sector,” Equita states.
