THE BOT DAM RESISTS, BUT RATES AT 2,1%. PONZELLINI EFFECT ON BPM, NOT ON IMPREGILO
The wave of yields rises again. The 8,5 billion euro of six-monthly Treasury bonds auctioned today by the Treasury were sold in full against a demand equal to 1,6 times the amount offered. The rate rose to 2,104% from 1,7% last month, thus reaching the highest level since December. On the secondary market, the ten-year BTP is traded at a yield of 5,66%, a slight improvement compared to yesterday (5,70%). The spread with the Bund decreased to 429 points (-5 points). The FtseMib index, after a slight increase, fluctuated around parity at +0,05% after the auction. The London Stock Exchange advanced by 0,21%, Paris +0,38%, Frankfurt +0,71%.
Once the Bot auction has been closed, the markets look beyond the ocean: in the afternoon, the data on consumer confidence will be released (the index is expected to grow to 69,5, the highest since 2007) and that on the house prices in march. The Spain/Germany spread, which yesterday had risen to 513 basis points, the maximum in the euro's 13-year life, fell back to 500. The Spanish institute Liberbank has announced that it will study, on the occasion of a scheduled board meeting today, a possible merger with competitors Ibercaja and Caja 3.
The euro is recovering to 1,256 against the dollar, from 1,254 at last night's close. Oil is up, supported by fears of tensions in the Middle East (Wti at 91,7 dollars a barrel +0,9%, Brent at 107,5 dollars). Positive oil prices: Tenaris +1,7%, Eni +0,5%. The incentives in sight for the Chinese car have effects on the European sector. Fiat +2,4%, Fiat Industrial +2%, Pirelli +1% benefit. Exor rises by 2% on the day of the meeting. "We studied the opportunity of Formula One, which we never managed to materialize because its values, even in view of a listing, were very high for us". Thus explained the president of Exor John Elkann, president and CEO of Exor, during the shareholders' meeting in Turin regarding the interest of the Agnelli family in an investment in Formula One.
Among other industrial stocks: StM +1,1%, Finmeccanica +0,5%, Diasorin +0,6%. L'arrest of Massimo Ponzellini does not slow down Impregilo +1% of which he is chairman in office; on the contrary, Banca Popolare di Milano lost 2,1%. Astaldi rose by 3,5% after obtaining 6,5 billion dollars in loans to build a bridge and a motorway in Turkey.
Recent data on consumer spending and construction investment point to a further decline in Spain's gross domestic product in the second quarter. This was underlined by the Bank of Spain in its monthly bulletin. In the first quarter, GDP contracted by 0,3% compared to the fourth quarter of 2011 and recently the Madrid government estimated a similar decline in the second quarter as well. The Bank of Spain bulletin cites the decline as signs of economic weakness the drop in car registrations in March and the plunge (-17%) in the hiring of workers in the construction sector.
