The cost of money in the euro area drops to 0,75%, marking a new all-time low. She established it there European Central Bank, which reduced the main reference on interest rates in the euro area by 0,25 percentage points from the previous 1%. The decision was awaited by the markets.
The ECB also has zero rates on short-term deposits held on behalf of banks, which was previously at 0,25%. A measure that could indirectly favor the flow of liquidity into the real economy. Finally the Central Institute has the rate on marginal refinancing operations was also reduced by 0,25 points, which thus drops to 1,50%. All these changes take effect from next July 11th.
After the communication on the rates, Piazza Affari turned heavily negative, coming to lose 1,86%. Slightly negative Paris (-0,18%). London (+0,32%) and Frankfurt (+0,17%) resist.
In the press conference that followed the meeting of the board, the number one of Eurotower, Mario Draghi, he pointed out how economic growth in the euro area "remains weak" and with "high levels of uncertainty" which weigh on the climate of confidence. Now “we see a weakening of growth throughout the euro area, including the countries that previously continued to grow”.
According to the ECB president, "the risks should be balanced in the medium term". Among these, "the main ones are linked to indirect taxes linked to the need for fiscal consolidation and energy prices".
The rate cut was decided at a time when "inflation pressures fell further - added Draghi -, while some of the risks" borne by the economy materialized. In any case, "inflation should fall further in 2012 and return below 2% in 2013".
Meanwhile, the euro is moving close to the lows of the week, at 1,2523. On the front of government bonds, the market reaction to the outcome of the Spanish auction was good. The drop in short-term interest rates (5,09% from the previous 5,46% over 2015) is interpreted as a decrease in tension, although the longer term marked an increase in yields (6,43% from the previous 6,04, 2022% on XNUMX).
Lo BTP/Bund spread (437) however remains far from the lows of the last few sessions, which had seen a short approach of the watershed to 400 bp
The stock exchanges are proceeding at a reduced pace in view of the early afternoon press conference in Frankfurt. The Ftse/Mib index lost 0,1%, in line with the Parisian Cac -0,11%. London +0,21%, Frankfurt +0,46%.
The automotive sector shines in Europe thanks to the news on Volvo, which is preparing to sell the aerospace division, to the British GKN +12% and Volkswagen +5% after communicating their intention to take full control of Porsche +3% by paying 4,46 billion euros plus one ordinary share of VW.
In Piazza Affari it stands out Finmeccanica + 4,4% after rumors about a Siemens offer for the subsidiary Ansaldo Energia for 1,3 billion euro.
Among industrialists, salt Pirelli +0,5%, down StM -2%.
Backtrack by Mediaset -1,4% after yesterday's strong jump (+5,5%). Telecom Italy Media +4,76% is up sharply in Piazza Affari on the news of Michele Santoro's arrival on 'La7'. “The news of Santoro's arrival pushes the stock,” comments a trader.
A report by Banca Akros he judges the news very positively, emphasizing that the share recorded strong gains in June, supported by expectations for the arrival of Santoro and the rumors about the interruption of negotiations with the journalist had subsequently caused a drop in the share. Today 'La7' will present the autumn schedules.
Decline content for banks: Unicredit drops by 0,6%, Intesa -0,7%. Still weak Generals -1%.
General Bank rose by 1,5% after announcing good net inflows in June. The first half ended with the best result since 2007.
Read full text of the speech by Mario Draghi
