BNP ACCOUNTS SCARE EUROPEAN EXCHANGES. BTP, THE TREASURE FULLS UP. BUT THE SPREAD GOES UP
The Treasury, as expected, has filled up. All 3,5 billion of the maximum offer of the three-year BTP in December 2016 were placed, with a rate that fell to 1,41%. A similar script, for 2,5 billion, also for the seven-year May 2021, the rate of which drops to 3,02%. Lastly, the Treasury sold 1,5 billion 30-year BTPs at a yield of 4,59% against 5,19% last July. The 3-year bond yield hit an all-time low and the 30-year yield hit its lowest since January 2007.
After the BTP auction, however, Milan remains the weakest of the European stock exchanges together with Madrid with the return of some tension on the Italian government bond market. The Ftse Mib index drops 0,82% to 19880. The Italy-Germany spread widens: +5 basis points to 206 basis points. The BTP yields 3,75% (+2 basis points).
The European stock exchanges retreat after a long series of increases, the global Stoxx 600 index loses 0,3% to 331 points, it has risen for six consecutive sessions. London is down 0,17%, Paris -0,25%, Frankfurt -0,15% and Madrid -0,93%. The worried panorama emerging from the ECB's Economic Bulletin weighs on the Old Continent's stock markets, as do some negative company results: Nestlé loses 1,7% after saying it could scale back its long-term growth targets this year due to weaker demand from emerging markets and price pressure in Europe.
In Europe, the Stoxx index of banks lost 1,2%. Bnp Paribas is down by 4%: the first French bank presented data for the fourth quarter in sharp decline due to 1,1 billion provisions. Instead, Commerzbank's data for the quarter was better than expected +3%.
In Milan all the banks are down with the exception of Banco Popolare +2,65%, after the formation of the guarantee consortium for the capital increase and the promotion of Nomura to Buy da Reduce. Bper decreased -2,1%, after announcing a cut in targets for 2014.
Unicredit loses 2,6%. Intesa Sanpaolo -2,3%. Monte dei Paschi -1,6%. Among the declining insurance both Generali -0,8% that Unipol Sai -1,2%. Azimuth loses 3% from yesterday's highs. Down -0,18% Eni which also presented data for the quarter slightly better than expected and announced a new important hydrocarbon discovery in the Congo.
2013 closed with an adjusted net profit of 4,43 billion, down 35% compared to 2012 (when the consolidation still included Snam) and an adjusted operating profit of 12,62 billion (-34%). The net profit for the whole of 2013 marks an increase of 24% to 5,20 billion. Proposed distribution of a dividend for 2013 of 1,10 euro per share (up from 1,08 in 2012) of which 0,55 already distributed as an interim dividend.
Telecom Italy -0,18% while the saving they rise by 1,6% It emerged from the mandatory communications to the supervisory bodies that two large US funds, Massachusetts Financial Services and Brandes, have important positions in savings capital.
The luxury companies retreat, Luxottica it loses 0,5% also due to the "risk" that CEO Andrea Guerra could become a minister in a Renzi government. Ferragamo -2,69% Yoox -2,71%. Among the industrialists, Finmeccanica lose 1,89%, Pirelli -1,2% Fiat -0,48%. Mediaset loses 1,2%.
