BANKS AND BTP PUSH UP PIAZZA AFFARI
LVMH IS BREAKING DOWN, BUT NOT MADE IN ITALY LUXURY
Il Thanksgiving Day in the USA was celebrated in the Old Continent with a robust rise.
Milan was the liveliest Stock Exchange with a positive change of 0,9%, the Ftse/Mib index at 19.099, Madrid +0,62%, London +0,08%, Paris +0,22%, Frankfurt also did well by 0,4% and scored the new all-time high.
There are two reasons for the good Italian performance:
a) The success of the last Btp auction with settlement in 2013: the Treasury placed 2,5 billion 10-year bonds this morning (March 2024) with a rate down to 4,01%, from 4,11% in the previous auction at the end of October. On the secondary market, the yield on ten-year BTPs fell to 4,04%.
b) Good earnings for banks (Stoxx +1%). In Milan Intesa rises by 2,05%, Unicredit +1,9%. Among the other banks in Piazza Affari, Banco Popolare +2,02%, Ubi +2,2%, Mediobanca +1,43%.
La equity investment in Bank of Italy may be revalued up to 7,5 billion euro (maximum shareholding cap of 5%, dividend up to 6%). It seems that the ECB considers the revaluation as capital. If confirmed, for Equita the revaluation is worth 70 bps of capital for Intesa, 20 for Unicredit.
The sector is also lively in the rest of Europe. in Frankfurt Deutsche Bank +1,5%, in Madrid Santander +1,1%, the French Société Générale +1%, the Swiss Ubs +2,5%.
Positive too Italian luxury stocks, despite the world leader in the sector, Lvmh in Paris falling by another 0,8% in the face of the slowdown in Chinese demand.
Ferragamo +0,38%, Tod's +1,12%, Luxottica +1,01%, Cucinelli +2,6%.
Positive Enel + 0,83% Eni + 0,03%.
Telecom Italy +0,7%. According to a non-binding opinion from the Brazilian antitrust, Telefonica should be fined for the operation that led it to strengthen control of Telecom Italia - while maintaining its voting rights unchanged for the time being - because it violated a regulatory agreement that separates interests of the two companies in Brazil.
among the major industrial stocks, great leap for Fiat +1,73%, Finmeccanica +0,94%, Pirelli +1,77%.
Weak StM -0,08%.
The publishing companies are supported by the arrival of a support plan for publishing by the Letta government (120 million euros): RCS Mediagroup +4%, Mondadori +3,4%.
