Piazza Affari, in an unstable balance, takes note of the maneuver announcements arrived in the morning from the Minister of Economy, Giovanni Tria, and in the middle of the session it gained 0,2%, remaining above 20 thousand.
This morning the number one of the Treasury defended in the House Budget Committee the numbers of the Update Note to the Def rejected yesterday both by the Bank of Italy and by the Court of Auditors. The Budget law in 2019 increases net debt by around 22 billion and contains hedging measures for 15 billion.
Meanwhile, the Treasury has managed to place 6 billion Bots in 12 months (equal to the quantity due to expire), but only at yields more than double compared to last month. The yield of the 12-month Bot rose to 0,949% from 0,436% of the September placement. This is the highest figure for 5 years. Demand slowed down, reaching 9,763 billion euro with a coverage ratio of 1,63 (from 1,91 at the September auction).
Lo spread fluctuates around 292, the 3,23-year yield at XNUMX%.
According to the "Giornale", Luigi Di Maio would be ready to fire Giovanni Tria to replace him with Andrea Roventini, associate professor at the Sant'Anna High School in Pisa, expert on basic income (to be financed with assets) and declared enemy of the flat tax.
Mark Zandi, chief economist at Moody's Analytics, in an interview with La Stampa, argues that it is logical to expect that the worries about Italy will also be reflected in the next assessments by the rating agencies. "The judgment of the markets - he says - like that of the rating agencies, is not based on politics, but on numbers, which are objective data and the same for everyone". And again: "It's like gambling with Italy's long-term economic and fiscal health".
The other Euroland price lists continue in red: Paris, Frankfurt e Madrid suffer losses between 0,3-0,4%. Down too London (-0,1%) while the signs of a forthcoming Brexit agreement are multiplying. A compromise on the border between Ireland and Ulster should be identified by Monday, the last open issue. There GBP it rose to 1,3162 against the dollar, driven by data on GDP growth in the third quarter.
Slow down the Petroleum, however close to the highs: Brent at 84,75 dollars a barrel. Saipem +1,2%: Barclays has raised its target price to 6,6 euros. Eni + 0,9%.
Difficult day for luxury. Moncler it tumbles down 4,4% and is today's worst blue-chip. Morgan Stanley downgrades sector rating to Underweight from Neutral on top-down outlook. Luxury stocks "are vulnerable to general underperformance" compared to "value" stocks, write the broker's analysts led by Krupa Patel. The sector "looks stressed" even after the recent sell-off and Chinese consumer confidence appears to have peaked, they add in the note.
LVMH loses 4,7% in Paris, despite third-quarter sales posting organic growth of 10%; Kering -3,7% Richemont -1,4%. In Milan they are also in red Ferragamo (-2,6%) And Tod’s (-1,8%).
The path of the automotive industry also thwarted. The European stoxx is down about one percentage point. In Milan he retreats Brembo (-4%). Down the Agnelli stable: Ferrari -2,4% despite the buyout of Société Générale, Exor -1,05% Cnh Industrial -1,2%.
Fiat Chrysler -1,5%. According to Bloomberg, the company and Calsonic Kansei (KKR) have found an agreement on the price of Magneti Marelli, excluding however the division of plastic components and LED lighting from the perimeter, and could announce the agreement by the end of the month.
The banks are in progress. Reuters wrote that European banking supervisors have stepped up their monitoring of Italian banks' liquidity levels.
Where's Banca + 1,4% Unicredit +1,7% and Intesa Sanpaolo +2,4%. Salt too Bpm bank (+2,9%) which entrusted Nomura with the task of managing the sale of the stake in Agos Ducato.
Generali +1,6%. Caltagirone has recently bought 0,13% of the capital.
Recommended Rest (+4,80%) which could list the assets in the usa.
Berenberg updated ratings on utilities: Terna -1% rejected Hold from Buy. Italgas (target price raised to 5,60 euros). Snam -0,2% (target raised to 5,90 euros).
Back off Astaldi (-5%): Fidelity-managed funds cut their stake to 4,295% from 7,131%.
