POSITIVE RETURN ON THE MILAN STOCK EXCHANGE
BANKS TO THE COLLECTION, INDEX +1,18
The Milan Stock Exchange is on the rise after the "blessing" of the maneuver by Brussels and in conjunction with the meeting between the Minister of Economy, Giulio Tremonti, and a delegation of the majority to agree on a few and shared amendments. After a heart-pounding day, with a nightmare start (the FTSE Mib index came close to a 15% loss in just 5 minutes from the opening), there was a recovery in positive territory: the Ftse Mib closed the session with a +1,18% to 18.510 points, while the Ftse All Share gained 1,16% to 19.262 points. Meanwhile, London lost 1,02%, Paris 0,89 and Frankfurt's Dax 0,78%. Wall Street, meanwhile, is also falling into negative territory. The Dow Jones dropped 1,3% to 12.491 points, while the S&P500 dropped 1,9% to 1318 and the Nasdaq slipped by 2,37% to 2.791,98 points.
BERLUSCONI: PRIMARY BALANCE ALREADY THIS YEAR
THE REFUND STARTS WITH UNICREDIT (AND AZIMUT)
The intervention of Prime Minister Silvio Berlusconi also contributed to the turnaround. “Already this year – reads the note from Palazzo Chigi – we will bring the primary balance into significant surplus. The crisis pushes us to accelerate the correction process in a very short time, to strengthen its contents, to fully define the further measures aimed at achieving a balanced budget in 2014. All doubts about the effectiveness and credibility of the correction must be eliminated, but it is also necessary work to remove the obstacles that hold back the growth of our economy”. The prime minister also dealt with the banks, which have been under intense fire from speculation for days. "Our banks are solid and sheltered from the blows that large foreign banking institutions have had to suffer and have been ready to respond to calls to further increase their capitalization".
However, by chance, the recovery of the credit system, the dominant note of the afternoon, started from the only large institution that has not carried out capital operations in the last year: Unicredit, for this reason the bank most sacrificed in exchanges of the last days. The bank headed by Federico Ghizzoni opened the session in the worst possible way, with an initial suspension due to excessive downtrend. Then, the turning point in what will be remembered as one of the most volatile sessions ever. Unicredit closed with a rise of 5,89% to 1,222 euros, closely followed by Mediolanum (+4,23% to 2,956 euros), another protagonist of a sensational turnaround. But the rally involved the entire banking and asset management sector: the palm of the best stock goes to Azimut (+8,11% to 5,73 euro) which precedes Banco Popolare (+7,32% to 1,54 euros), Ubi (+5,52% to 3,672 euros), Mps (+5,20% to 0,518 euros) and Intesa Sanpaolo (+3,34% to 1,577 euros).
AT 11 AM THE BOT AUCTION CANCEL THE FEARS
BUT RETURNS GO UP 150 POINTS
What is the turning point? The day changed immediately after 11, after the diffusion of the results of the auction on Bot. In reality, in order to place the bonds, the Treasury had to accept a significant jump in yields from the previous 2,147% to 3,67%. But these days we have to settle for it. In the early hours of the morning, when the index was sailing towards a loss of more than 4%, rumors had circulated in the trading rooms according to which the auction could even have been postponed. After this first step towards normality, even from politics, for once, positive signs have arrived. After taking part in Ecofin this morning, Tremonti returned to Italy to meet the majority and define the few amendments to be included in the conversion. It was later known of the meeting, in the afternoon, with the opposition. Finally, the reassuring note of Palazzo Chigi. The government's clear message to the markets is an acceleration in approval times.
The Senate will approve the maneuver by Thursday morning, said the president Renato Schifani, so that the Chamber can start examining it already in the afternoon and approve it by Sunday. The President of the Republic Giorgio Napolitano is satisfied, sources from the Quirinale say because, finally, positive signals are also arriving from the European front. The EU Commissioner for Economic Affairs Olli Rehn has given his full support to the 40 billion maneuver launched by the Italian government in June. "The maneuver consists of a 25 billion decree and a 15 billion fiscal intervention. The Commission supports both measures. Now we will follow the application of these rules,” Rehn said during the final Ecofin press conference. The result? Government bonds reacted well, where the yield on the ten-year BTP fell by 14 basis points to 5,5% compared to yesterday. The spread with the German Bund returned below 300 basis points to 286 points. The euro recovered to 1,398 against the dollar from 1,385 this morning. The Swiss franc remains supported against the euro at 1,1659, at historic highs.
YVES GUERIN ARRIVES AT PARMALAT
FININVEST WILL PAY THE FINE TO CIR
Among the individual corporate news, it should be noted the appointment of Yvon Guerin to the position of managing director of Parmalat and the position taken by the lawyer Ghedini regarding the Lodo Mondadori. Ghedini ruled out legal interventions and clarified unequivocally that Fininvest will pay the fine decided by the Milan Court of Appeal in favor of Cir.
