FALLING AFTER THE AUCTION OF THE MILAN BTPs (-1,28%)
STRONG INCREASE IN YIELDS, SPREADS ABOVE 300 BPS
The Milan Stock Exchange, which after the initial nervousness had reversed course, is back after the Btp auction, the first test of Italy's risk after the massive sales on Friday and Monday. The FtseMib index, already in positive territory, has exceeded the percentage point of losses: at 12 and 15, the Ftse/Mib lost more than 1%, to 18.601. In the meantime, the Cac lost 1,09, the Dax of Frankfurt -0,72. The Treasury has placed securities for a value of 2,965 billion euros compared to a maximum target of 3 billion euros.
The BTP with a 5-year maturity was placed with a yield of 4,93%, the one with a 15-year maturity at 5,90% (from 5,34% at the last auction). The auction ended with a request (bid to cover) equal to 1,93 times the offer for the 2016 issue and a bid to cover of 1,48 for the 2026 issue. outcome of the operation, Nomura and Morgan Stanley comment that the auction went well. But after the results, the euro fell below 1,42 dollars, settling at 1,4178. Meanwhile, gold has set a new high in London at 1.594 dollars an ounce. Finally, the spread between the Bund and the BTP returned above 300 basis points.
GOLD AND SWISS FRANC NEW RECORDS FOR MOODY'S WARNING IN THE USA
The auction, moreover, is part of a climate of renewed concern. The announcement, with the Wall Street Stock Exchange closed, that Moody's could cut the triple A rating of the United States (which has held this rating since 1917), if the White House and Congress fail to reach an agreement to raise the public debt ceiling , is putting all financial markets under pressure. The news, in particular, causes the flight of capital towards what are considered "safe havens", the Swiss franc and gold, despite Ben Bernanke's objection, regarding the yellow metal, that "it's not money", destined to affect the cheap, but a kind of refuge for anxious collectors.
The diagnosis coming from the ECB's July bulletin helps keep the temperature high: the global recovery is struggling to take off, meanwhile "the downside risks connected to the persistent tensions in some market segments could spread to the real economy". In other words, the Greek crisis, where the debt/GDP ratio will jump to 161% before returning to more "Italian" values, risks infecting the entire eurozone.
AFTER THE AUCTION, THE BANKS COME BACK
UNDER FIRE UNDERSTANDING. THE BPM TOP MANAGERS IN BANKITALIA
The ups and downs of the banks continues in Piazza Affari. First moderate increases, then came the rude awakening after the auction of government bonds: Unicredit, which rose by 1,6%, lost 1,3%. Intesa falls by 3,28%, Ubi -2,27%. Banco Popolare -0,14%, Montepaschi -1,83%. Generali also fell (-2,72%). Heavy losses also for Bpm (-2,56%), pending the meeting of the institute's top management with the Bank of Italy to anticipate the contents of the industrial plan which will be presented to analysts on 20 July in which the main points should be: capital strengthening, balancing loans and deposits, corporate simplification. In addition to the sore point of governance.
GROUPAMA RENOUNCES TO ENTER FONSAI
DISRUPTIONS AMONG EDISON'S ITALIAN SHAREHOLDERS
A suitor for Fondiaria Sai withdraws (-0,10%). Groupama, in fact, withdrew the request to Isvap to be able to raise a stake between 10 and 20% in the company of the Ligresti group, in the meantime rescued by Unicredit. Groupama itself has notified the French COB of its intention to proceed with a recapitalization of 500 million, probably made necessary by the deterioration of assets in these months of crisis.
In short, for Groupama, the mandatory takeover bid imposed by Consob for entry into Premafin has proved to be good news over time. On the other hand, the A2A council has been postponed to Monday (-2,045) to define the Italian position to take towards EDF on the Edison dossier. The postponement is probably due to the protests of Delmi's other Italian partners who complain, starting with Iren, that they have so far been cut off from the negotiations.
GOLDMAN PUSHES FIAT INDUSTRIAL UPWARD
UBS PROMOTES FROM NEUTRAL TO BUY LUXOTTICA
The buy recommendation from Goldman Sachs (target price of 13,8 euro) pushes Fiat Industrial up +2,01%. Fiat also rose (+0,228%) while Exor advanced by 0,33%%. The UBS report (from neutral to buy), on the other hand, pushes the Luxottica share up +1,62% while Safilo gains 2,6%. Among medium-sized companies, the leap of Poltrona Frau +6% stands out.
