Uncertainty keeps European price lists around parity. Milan recovered the losses of the morning and moved into positive territory, up 0,36% also supported by the new record of the auction of government bonds. This morning the Treasury placed 8,5 billion one-year BOTs with yields down to 0,271% compared to the previous all-time low of 0,279%. Demand was also strong with 13,549 billion euros requested. The Btp-bund spread is up to 140 basis points from 131,6 at the opening. The yield is at 2,36%. The other European Stock Exchanges also moved in contrast, not far from parity: Paris +0,07%, London +0,18%, Frankfurt -0,04% and Madrid -0,39%. The Spanish list is weighed down by Santander after the announcement of the death of the president Emilio Botin.
The markets observe the various geopolitical tension fronts, starting with the possible new European sanctions against Russia for Ukraine. The Scottish question is regaining center stage both for the potential consequences of a yes to the referendum on independence and for the possible cascading repercussions, starting from the risk that even Catalonia may be tempted by independence pushes. A report from the San Francisco Fed then idontto think that the rise in US rates is closer than what the Stock Exchange assumes. Now the market is looking to the next meeting on 17 September where strong signals could arrive to prepare the stock exchanges for the turnaround in December.
However, the declarations of the Chinese Premier Li Keqiang Li who today at the opening of the Summer Davos in the city of Tianjin reiterated that China will achieve the 7,5% GDP growth target this year and this is because China is using structural and targeted tools for "solid reforms" rather that "strong stimuli" to push the economy.
If China avoids the hard landing, Europe is grappling with unemployment and stagnation. France has just announced that the French public deficit will rise this year to 4,4% of GDP from the 4,2% recorded last year. The estimate for 2015 is a deficit/GDP of 4,3%. France therefore moves to 2017 (from 2015) the objective to reduce the deficit/GDP ratio to the threshold of 3 per cent. In Italy, Prime Minister Renzi noted yesterday that “at this moment” and for this year “we are hovering around 0 on the GDP front. "It's a stop to the crash - continued Renzi - but we haven't restarted yet". On the other hand, industrial production in Spain recorded a ninth consecutive month of growth, +0,8% in July on an annual basis. Today the president of the European Commission presented the new team including Moscovici in economic affairs, Hill in financial stability, Katainen vice president for growth and investments and the Danish Vestager in the European Antitrust. Relevant macroeconomic data are not expected from the USA but the market is looking to Apple which presented the iPhone 6 and iPhone 6 Plus with a giant screen plus the iWatch, the watch that combines navigator, payment tools as well as health control functions and fitness (estimated price between 350 and 400 dollars).
Fiat up 2,60% in Piazza Affari after the official announcement of Montezemolo's departure from Ferrari and Marchionne's arrival as president, with the market expecting news for Maranello. Cnh industrial also performed well +1,26%. The popular ones that are recovering share are highlighted: Bper +1,36%, Mps +1,26% and Ubi +1,25%. But the Bpm -1% is bad. At the bottom of the Ftse Mib Ferragamo -2,65%, Mediaset -2,42% despite the possible interest of Vivendi in the purchase of 11,1% of Mediaset Premium in the hands of Telefonica, which in July entered the pay TV of the Biscione. Stm -100%, Finmeccanica -1,41%.
Yesterday Rai Way, the Rai Group company that owns the transmission and broadcasting network of television and radio signals, submitted to Borsa Italiana the application for admission to listing of its ordinary shares on the Mercato Telematico Azionario
