BARROSO, ADVANCE THE PERMANENT FUND
After the no to the Slovakian bailout fund, it is the president of the European Commission Jose Manuel Barroso who instills confidence in the markets: the permanent bailout fund, the ESM, which will replace the ESF, must be brought forward to 2102 from 2013 And again: The bailout fund must be upgraded to be more than a shield, it must have real firepower. The banks lengthened and the lists took heart by closing the increases after an uncertain start: the Ftse Mib rose by 2,93% to 16.505,98 points, the Dax by 2,21%, the Ftse 100 by 0,85% and the Cac by 2,42 ,XNUMX% .
Even the United States seem to have confidently overcome the disappointment of Alcoa's results, which traditionally opens the earnings season, and the Senate's no to President Obama's 447 billion dollar plan. Wall Street opened up and now, also thanks to the encouraging data from PepsiCo, the Dow Jones is up +1,16% and the Nasdaq up +1,44% In Europe and overseas, even in the absence of relevant macroeconomic signals, today Markets watched for early indications of bank recapitalization plans to come after Angela Merkel and Nicolas Sarkozy agreed on a lasting commitment on this issue on Sunday.
Barroso today presented to the European Parliament the "road map" on the stability of the euro area with the plan to recapitalize European banks. Reiterating the importance of a coordinated approach, Barroso said it must be based on an assessment by the supervisory authorities that they will have to provide "a significantly higher and higher quality capital ratio". To recapitalize themselves, the banks will first have to find private resources, then ask for government intervention and only as a last resort resort to the EFSF bailout fund. Furthermore, institutions undergoing recapitalization will not be able to distribute dividends or bonuses. In the meantime, confidence is also growing in a positive outcome of the new vote on the EFSF by the Slovak Parliament which could arrive as early as tomorrow. At the close of the European markets, the euro-dollar exchange rate was 1,38 while WTI oil traded at 85,80 dollars a barrel.
MARCHIONNE FINDS AGREEMENT WITH THE UNIONS
IN THE SPOTLIGHTS IMPREGILO, FINMECCANICA AND EDISON
The Ftse Mib driven by Fiat accelerates in the afternoon. Lingotto leaps by 7,75% after today a pre-agreement was reached between Sergio Marchionne's Chrysler and the American unions. The agreement includes investments of 4,5 billion dollars to produce new models, vehicle and component upgrades by 2015 and foresees 2.100 new jobs by 2015. Fiat Industrial (+6,27%) and Exor also performed well (4,76%).
In light of the main basket also Pirelli which rises by 5,71%. Eyes then focused on three cases: Impregilo (+3,80%) rises on the prospect of payment for the works for the Acerra landfill and on the shareholding reorganization maneuvers after the entry of the Salini construction group which owns 8,13, 3,17% of the capital; Finmeccanica (+5,10%) is in good shape waiting for an immediate sale of Ansaldo Sts and Edison (+XNUMX%) runs after the confirmation of the agreement between Edf and the Italian shareholders of Delmi. There is expectation for the price of the "put" on which the tender price will be based.
PURCHASES ON UNICREDIT CONTINUE
MATTEO ARPE INTRODUCES HIS EMPLOYEES IN PIAZZA MEDA
The main banks stretch after the first details of the recapitalization plan being prepared in Brussels. Intesa closes up 4,88% and on Unicredit (+2,33% to 1,054 euros) the purchases of recent days continue on the rumors of the entry of possible shareholders in the capital, including the Singapore sovereign wealth fund. However, Jp Morgan cut the target price on the stock to 1,05 from 1,4 euro while confirming the neutral recommendation. Mps rises by 1,39%.
Banco Popolare was weak (-0,30%). The institute has set the ordinary and extraordinary shareholders' meeting for November 26 for the transition from dual governance to the traditional one which provides for a single board. On the Popolare di Milano front (+1,89%), the road show of the lists supported by the unions began today. Matteo Arpe also presented himself to the employees, called to join the management board by Marcello Messori, leader of the Fabi-Fiba clearing. In the afternoon, the executive committee of Generali was then held with the update of the strategic plan on the agenda to 2014 and the results at the end of August.
ATLANTIA, FOR MORGAN STANLEY IS OVERWEIGHT
STM RETURNS TO POSITIVE
Atlantia (+5,50%) archives a leap forward after Morgan Stanley raised its rating to overweight from the previous equal weight despite the reduction of the target price to 13,50 from 14,80. The broker sees a potential 20% upside on the stock: the current regulatory risk priced by the shares is excessive in light of the high dividend yield of 6,6%. The traffic data released yesterday also supports Atlantia. In the first nine months of the year, the company recorded a 0,9% year-on-year drop, against -1,2% in the first six months.
After the morning's sales, Stm (+1,54%) also recovered in the wake of the European stock exchanges. The morning's sales were motivated by fears triggered by the Dutch Asml, the leading European manufacturer of equipment for the production of chips which judged 2012 "a difficult year on which it is not legitimate to make predictions".
FERRAGAMO STRENGTHENS IN INDIA
DIASORIN, CAMPARI AND BPER IN RED
The Indian market continues to be generous with satisfactions for Ferragamo (+3,02%) which in 2011 is about to close its best year in the country thanks to a 40% increase in sales. Over the next 3-5 years, the luxury group intends to bring the number of stores to 10 by expanding its presence in other cities as well as New Delhi and Mumbai. On the Ftse Mib, Diasorin (-1,53%), Campari (-0,82%) and Bper (-1,38%) closed in the red.
