BEAUTIFUL FINAL FOR MILAN AND FRANKFURT
PARIS LIMITS THE MOODY'S EFFECT. SPREAD AT 384 BP
Final in beauty for the European stock exchanges thanks also to the stability of Wall Street. The Eurostoxx 50 index of the main blue chips reduced losses from -2% in the morning to -0,15%. The Ftse Mib index rises by 0,34% to 15970, followed by Frankfurt route (+0,31%). The other European Stock Exchanges reduced the reductions: London -0,48% and Paris -0,79%. The negative performance of French banks, weighed down by Moody's warning on the French triple A, weighs on the performance of the Old Continent. Bnp Paribas dropped 4,8%, worse Société Générale (-5,2%) while Crédit Agricole scores -3,5%.
The euro is stable at 1,368 against the dollar, from 1,373 at last night's close. On the government bond market, the Bund strengthens (135,6) and the yield spread widens with our Btp rising to 384 basis points from 368 yesterday afternoon. Piazza Affari is supported in particular by the securities of banks and industrialists. At the macro level, good news came from data on producer prices for September, better than estimates both on a monthly basis (+0,8% against an expected increase of 0,2%) and on an annual basis (+6,9% against 6,4%). Excluding food and energy, prices fell by 2% against expectations of a rise of 0,1%.
ADVANCE OF AGCO FOR FIAT INDUSTRIAL
JP MORGAN PREFERS PIRELLI
After a declining start, Fiat reversed course +2,35%. The data on car registrations in Europe in September are not comforting: in a market that grew overall by 1,1%, Fiat group sales fell by 7,8% and the market share fell to 6,5%. % from 7,1% in the same period of the previous year. Furthermore, JP Morgan intervened today on the stock, confirming the underweight recommendation and lowering the target price to 4 euros from 6 euros. Barclays has instead raised the target price to 6 euros from 5 euros, confirming the equal weight recommendation.
The CEO of the American AGCO, Martin Richenhagen, confirmed last night that his company would be interested in taking over Cnh from Fiat Industrial +2,19. Acgo is a manufacturer of tractors and agricultural vehicles with a capitalization of 3,6 billion dollars, half of what Cnh capitalizes. The operation is unlikely, also due to the constant denials of the Lingotto. Furthermore, if the operation were to take place, Agco would risk being limited by a probable intervention by the Antitrust because the two entities would become a dominant subject in the agricultural segment. Pirelli (+3,94%) manages to gain 30% from the low of the last 12 months reached on October 4th.
Today JP Morgan produced a report on the auto industry in which it cuts the target price on a good portion of companies in the sector. Among other things, analysts write that tire manufacturers have better prospects than car manufacturers due to the secondary market for tire spare parts. The Stock Exchange embraces this vision: the German Continental rises by 2,2%, Michelin +2,5%.
BPM, WELCOME STEP BACK
LEAP OF UNICREDIT. BOD STILL IN PROGRESS
The intonation of the banks of the Bel Paese is good. Unicredit rises by 2,7%, Intesa +1,22%, Banco Popolare +0,84%, Bpm +0,97%. Speaking of Popolare Milano, it was announced yesterday that Giorgio Benvenuto withdrew his candidacy for the supervisory board of Pop Milano, on the list of the Friends of the Bpm Association, at next Saturday's meeting. The decision, communicated by Benvenuto himself in a letter to the president of the institute Massimo Ponzellini and to the president of the Associazione Amici della Bpm, Allessandro dall'Asta, is due to the lack of the more stringent eligibility requirements introduced by the Bank of Italy.
Benvenuto's choice to withdraw his candidacy "was caused by the introduction of constraints for the eligibility of short-sighted directors with respect to the desire to find the best solutions for the relaunch of Banca Popolare di Milano", the secretary general claims in a separate note of the Uilcas, Massimo Masi. "In the future, the institute will have to renounce the contribution of experience and professionalism of a man like Giorgio Benvenuto, whose indisputable morality represented a guarantee for the path of transparency in Banca Popolare di Milano, which Uilca has always declared as an indispensable requirement to research in the near future,” added Masi.
The Unicredit board of directors is still ongoing. When questioned by journalists on the topics on the agenda, the general manager (Chief operating officer) Paolo Fiorentino said that routine topics will be addressed. Reuters writes, quoting a source inside the bank, that the directors will also begin to exchange ideas on the industrial plan and on the capital increase. Since there is still no definitive picture regarding the minimum capital requirements for systemic banks, it is difficult for analysts to arrive at precise conclusions regarding the need for additional capital. Very different and distant hypotheses are circulating among the brokers regarding the amount of the recapitalization, ranging from 5 billion euros to 13 billion euros
GOLDMAN SACHS FINISHES IN RED, DISAPPOINTS IBM
WALL STREET CONSOLE WITH COCA COLA
Wall Street cuts losses completely and fluctuates around parity, also thanks to the results of Bank of America +5,9%, State Street +5,3% and Coca Cola +4% which have allowed us to overcome the impact of disappointing accounts of Ibm, announced at the end of Monday's session, and those of Goldman Sachs, still up, despite the losses in the quarter reported in the latest accounts. Indeed, for the second time since it entered Wall Street in 1999, Goldman Sachs closed a quarterly quarter in the red: a $393 million deficit against profits of $1,9 billion a year ago.
Only in the last quarter of 2008, at the time of the bankruptcy of Lehman Brothers, which occurred in September of that same year, Goldman had done worse. "Our results have been significantly impacted by the current scenario," remarked Lloyd C. Blankfein, head of the New York banking institution. Within the banking sector Goldman Sachs was a "special surveillance": a few weeks ago Citi had anticipated a substantial quarterly loss for the US bank and equal to 65 cents per share.
