The impact of the elections on the Milan price list? Negligible, as is now the norm on financial markets that respond to very different logics than to the balance of a city council. “The impact will be modest – anticipates Graziano Tarantini, chairman of the supervisory board of A2A – the important thing is that the autonomy of the managers is not affected”. No anomalous reactions not even among the Prime Minister's stable companies, however slightly down with the exception of Mondadori. Perhaps the most important data concerns Cir, safe of the De Benedetti group which achieved an increase of 3,92 percent. An exploit that could be connected to the approaching response of the judiciary on the compensation due to Cir as compensation for damages. In short, in the new political framework, those 750 million euros seem ever closer. Furthermore, the boom in renewables on the Stock Exchange also gave the Engineer a hand. In the De Benedetti stable there is, in fact, Sorgenia.
Moody's warns: Japan rating cut likely in 3 months
"We do not see a credible strategy to reduce public debt", writes Moody's in a note dated May 31, explaining Japan's probable regression after the negative outlook issued in April. The news does not stop the Nikkei, which is up 1,41 percent. Positive start also for Hang Seng's Hong Kong (+0,85%) which for the Shanghai Composite (+0,46%),
Tremonti in Brescia: "Too many derivatives, the money is beaten by the financiers" and at Bocconi he listens to Bruti Liberati: a Ministry in Milan? Justice"
Giulio Tremonti, after having collected the positive outcome of the government bond auctions in the morning. imposes his lineup on the work of the assembly of the Brescia industrial association, claiming to speak last, not after the "hostess", the president of Confindustria Emma Marcegaglia. As proof of the antipathy that the minister feels towards the leader of the industrialists but also as confirmation of a certain angularity of tone which does not help his pace as a politician. But the analysis of the international situation and the dangers inherent in the crisis in the Eurozone (and beyond) deserves great attention: “Debt medicine – he said – assuming it was medicine, is over. In the first phase of the crisis he responded with public debt resources that are now finished. And two or three years that could have been different have been used in the wrong way”. "The banks were saved because they were systemic, but in this way the speculation that the institutions had in their belly was also saved". "The mass of derivatives is practically equal to before the crisis, at the levels of 2007: the currency is no longer beaten by states, but by financiers or bankers". More relevant on the political level, the meeting at Bocconi with Edmondo Bruti Liberati, chief prosecutor of Milan, the great enemy in the eyes of Silvio Berlusconi. The magistrate spoke of the risk of statute of limitations for financial crimes. “Justice is too slow – said the prosecutor. If a ministry were to be transferred to the North, perhaps it would be that of Justice".
Moebius thinks like Tremonti. “Too many derivatives, crisis around the corner”. But he has a perspective: "Africa is much more reliant"
“The next crisis is inevitable because none of the causes of the previous crisis have been corrected.” The diagnosis he made yesterday in Tokyo Mark Moebius, legendary executive chairman of Templeton Asset Management for emerging markets, impressively follows the analysis made by Giulio Tremonti in Brescia a few hours later. Here is a summary of the meeting with the international press reported by the Bloomberg agency. “Has there been an intervention to regulate the derivatives market? – Moebius wonders – I don't think so. Perhaps the number of derivatives in circulation has decreased? It doesn't appear to me”, says Moebius, explaining the reasons for his skepticism on the current trend of the markets even if the large financial imbalances offer great opportunities for investors, who in the last two years have been able to profit from the enormous liquidity pumped by governments , from Washington to Beijing or from the ECB. The fact remains that this crisis, born out of the mistakes of "banks too big to fail" has not curbed the gigantism of credit. “The banks – said Moebius – are even bigger today. Indeed, too big to fail institutions are destined to grow, according to forecasts, by a good 40 percent in the next 15 years". In essence, the big banks are today, according to Moebius, less controllable than they were three years ago, despite the intervention of the regulators. For these reasons the president of Templeton continues to rely on the growth opportunities of emerging countries. His latest bet is Nigeria where five out of the eight stocks that make up the MSCI Nigeria basket represent banks, evidently not "too big to fail”. On the contrary, "these are institutions that have made giant strides in terms of transparency thanks to the improved reliability of the regulators".
Merkel gives charge to the alternatives
By 2022, the 17 pm will be definitively stopped nuclear power plants active in Germany. The executive's decision has given wings, throughout Europe, to the titles of alternative energies. Milan was no exception: Enel Green Power led the race for blue chips with an increase that came close to 5%, followed by Terni Energia and other values linked to renewables, see the Falck renewables.
Marchionne also goes shopping in Canada
The climb of Fiat at Chrysler it is so fast that analysts struggle to recalculate and recalculate. But even yesterday, despite the absence of sales flows from New York and London, the Turin stock continued its upward march: +8% in the last five sessions. Both the exercise of the call on the 6,6% still held by the US Treasury and the now imminent purchase of Canada's remaining 1,6% stake are pleasing. In this way, Fiat completely emancipated itself from political controls on management. In the meantime, an attempt is being made to evaluate the immediate impact of the consolidation of Chrysler in the Lingotto accounts: the first consequence of the translation of the Chrysler accounts into the Irsf parameters will be to increase profits with respect to equity with the effect of reducing the price/earnings ratio from 9,5 to 4,6 times (Mediobanca analysis) . On an industrial level, while waiting for a recovery in the Old Continent, the best prospects remain on the other side of the Atlantic Ocean. Suffice it to say on the New York Times Yesterday's front page featured a report dedicated to the recovery of small and medium-sized compact cars which today account for a quarter of sales, double the figure ten years ago. And on that terrain, Fiat feels competitive.
Gaddafi record punishment from Goldman
A loss worthy of the Guinness Book of Records: 98% of invested capital, or 1,3 billion dollars. In 2008, Colonel Muammar Gaddafi lost many at Goldman Sachs who had studied sophisticated operations on foreign exchange and derivatives for this important client (so to speak). The news, which appeared in "The Wall Street Journal” on the basis of documents delivered to a commission of the US Senate, is the setting for a sensational negotiation that never came to fruition: between February and June 2009 GS repeatedly offered the LIA, the Libyan fund, the opportunity to enter the capital with 3,7 billion dollars, becoming one of the largest shareholders. But in the end the negotiation failed.
