SPANISH AUCTION AT RISK: BONUSES OVER 7%. BAGS FORWARD WITHOUT FEAR. CRYING TELECOM
The Milan Stock Exchange. worsened after the auction of Spanish bonds and French government bonds, it improves in the wake of the other listings: the Ftse/Mib index rises by 0,46% to 13.655, less than the Parisian Cac +0,71, while the Frankfurt Dax runs +1,3%. Once again, as has happened in recent days, the markets have overcome a negative obstacle without major problems. Even Madrid +0,9%, in fact, is on the rise despite the far from exciting outcome of the auction.
In fact, the yield on 7-year Spanish bonds on the secondary market has soared beyond the critical threshold of 10%, after theIberian Treasury auction. The rate on the ten-year bond rises to 7,02%. The last time the Spanish 10-year bond exceeded this threshold was on XNUMX July.
"There is no money in the public coffers to pay for services": stated the Spanish Budget Minister, Cristobal Montoro, in his speech this morning in Parliament. According to the politician, Spain is experiencing a new recession after 2009 and has to face difficulties with a debt that "is crushing and conditioning us". In any case, the minister defended the austerity plan proposed by his government, arguing that Spain must emerge from the crisis within the European Union and the euro.
Investors snub the Spanish paper and rush to grab the French one. Paris announced this morning that it had placed 4,5 billion euros of five-year bonds with a yield of 0,86% from 1,43%, the lowest since 1999.
On the secondary side, the yield on the 10-year Spanish government bond rose by 3 basis points to 6,91%, the Spain-Germany spread reached record levels at 570 basis points. The Italy-Germany spread is 478 basis points. The yield on Italian 5,99-year bonds is 1,227%. The euro weakens against the dollar to XNUMX.
The phone is crying in Piazza Affari. Telecom Italy it fell by 4,84% after the Brazilian telephone regulator ordered Tim Brazil to stop the sale of mobile telephone services in 19 states of the country. The company has thirty days to present an investment plan capable of improving the service provided. Unlike Claro, another manager, however, it was not sanctioned in the Sao Paolo region, the richest and most industrialized. Analysts are not yet able to quantify the impact of the decision on the company's accounts. Tim Brasil, however, is the engine that supports the growth of the entire group together with the Argentine subsidiary, Telecom Argentina.
Investors snub the Spanish paper and rush to grab the French one. Paris announced this morning that it had placed 4,5 billion euros of five-year bonds with a yield of 0,86% from 1,43%, the lowest since 1999.
The banks are opposed. Vola Banco Popolare +3,65% followed by Ubi +2,25% following the announcement of a new cost-cutting plan capable of producing savings of 115 million euros. Banca Popolare di Milano + 1,74%Unicredit + 2,66% Intesa Sanpaolo -1,1%.
Generali loses 1,7%. In sharp decline Fondiaria Sai -16%. Rights are suspended due to an excess of a reduction of 6,52 euros. Suspended for excess reduction too Premafin. The closing for the execution of the capital increase of Premafin reserved for Unipol is expected today.
The stocks of industrial companies are highlighted. Fiat + 2,11% Fiat Industrial + 2,15%. stm goes up by 1,04%, Tenaris does better +1,47%. Buzzi earn 1%.
