The Fed is closely monitoring the formation of new bubbles. The risk, in recent times, "has grown a bit". Thus Ben Bernanke in response to a question from a senator in the US Congressional hearing. I mean, it's not a red light yet, but yellow is closer. On the one hand, the central banker reassured the markets about the continuation of the economic stimulus policy, but he also stated that "already in the coming months" the central bank could decide to reduce the purchases of securities on the secondary market.
A multi-dimensional discourse which, in figures, can be summarized as follows: Qe will continue until unemployment falls below 6,5% and inflation rises above 2,5%. But will Qe remain at its current size or will it shrink? Reading the minutes of the latest Fed meeting, published yesterday, "a certain number" of Fed board members said they were open to curbing buying as early as the next meeting scheduled for June 18-19. That's not the majority view, but Bernanke, evidently intent on curbing the markets' euphoria, said yesterday that a slowdown in the pace at which he buys bonds, now amounting to $85 billion a month, could be decided "already" in the next months.
TOKYO COLLAPSES - 2,7%. YESTERDAY EUROPEAN STOCK MARKS RECOVER
The result? Wall Street, effervescent after the Qe's words of confirmation (the indices have updated their historical highs) reversed course and closed in negative ground: S&P 500 – 0,83, Dow Jones -0,52% and Nasdaq even -1,11 ,1,2849%. All within a few minutes, enough for the dollar to leap to a three-month high: XNUMX against the euro.
The dollar index loses 0,3% to 83,60 and gold jumps over the threshold of 1400 dollars an ounce reaching 1410 dollars, +2,5%. Much more marked the reaction of Tokyo, the most effervescent square in recent months. The Nikkei index lost about 2,7% this morning. Hong Kong is down by 1,64%, fearing an imminent slowdown in the Fed's monthly purchases. Europe closed in positive ground before Bernanke uttered the words of prudence that triggered the reverse of the stock markets.
The London Stock Exchange gained 0,5%, Paris +0,3%, Frankfurt +0,6%. The stocks that have reacted best are those most linked to the economic cycle: mining (Stoxx of the sector +0,7%), banks (+0,4%). In Milan, the FtseMib index rose by 0,6%,
Moreover, in Bernanke's hearing there was no lack of a positive mention of the Old Continent. "Since last summer, financial conditions in the eurozone have improved somewhat, which should help mitigate the economic slowdown in the Old Continent and at the same time reduce the effects on the American economy."
TRONCHETTI AND MALACALZA FIGHT AGAIN. HIGHLIGHTS EGP
Among the blue chips in Piazza Affari, the banks stood out, led by Intesa +2,6% and Montepaschi +1,7%. Unicredit gained 1%, Ubi +2,3%. Among the industrial stocks, Fiat rose by 0,9%, Fiat Industrial +1,2%. These are “completely false statements and assessments”. So Fiat Industrial in a note replies to the concerns related to the transfer of the tax office from Italy to London. “For many years – reads a note – CNH Global has had its registered office in the Netherlands. In Italy, on the other hand, as in other countries, the national companies that carry out activities in every single nation and which will continue to pay taxes where they operate are based".
The statement that Italy would lose more than 500 million in taxes “'is therefore absolutely false. This figure derives from the consolidation of the taxes of each individual Group company in accordance with local laws.
Exor, the holding company of the Agnelli family, closed up 1,1%. Terna dropped sharply -3,3% after the second shareholder, Romano Minozzi, completed the sale of his entire stake, equal to 5,3%. Strong rise of Enel Green Power +2,9% which increased investments in wind power in the USA. Snam backtracking -0,9%. Among the mid and small caps, d'Amico rose by 4,7%, Trevi +4%, Ei Towers +2,9% and Poltrona Frau +2,5%.
Maire Tecnimont closed down -4,1%. The real estate companies are warming up with Aedes (+35%) and Gabetti (+12%). RCS -3,3%. The meeting in view of the shareholders' meeting (May 27) which will have to approve the capital increase of 30 million euro will probably be held on Monday 400 May.
Camfin +0,99%. Q&A between Marco Tronchetti Provera and the Malacalza family. A note from Mtp spa and Mtp Partecipazioni communicated in the afternoon that "today they invited Malacalza Investimenti srl to a meeting to be held on May 23rd to define, among other things, within the scope of the procedures set out in the agreements in force, the definitive and complete separation of the respective equity investments in Gpi spa as requested by Malacalza Investimenti”.
But Malacalza Investimenti itself announced that it had declined the invitation to the meeting: 'Malacalza Investimenti - reads a note - communicates that the timing of the proposed solution, its concomitance with the operation proposed by the press which - in the outlines described – distorts our industrial stake in Camfin”. The note speaks of 'further conditions set in the separate communication sent to us via fax today by Marco Tronchetti Provera (conditions curiously not mentioned in his statement)' which lead the family not to accept Tronchetti's invitation.
Last episode tonight. 'Dear Sirs – reads the text of the communication sent from the Tronchetti headquarters – we are replying to your fax today, the content of which leaves us not only amazed but frankly astonished…. It is hardly necessary to remind you that these are matters pertaining to listed companies, for which you assume all and every responsibility also under this profile for the disturbance that your contradictory behavior may cause on the market”.
