FINMECCANICA HIGHLIGHTS. BUT THE DEBT HOLDS BACK BUSINESS PLACE
Europe is trying to recover while waiting for the US quarterly results. However, Milan is the exception, which folds after a positive start. The Ftse Mib -0.31% index is down at 20,550. The spread is still tense at 168, 12 points more than Spain.
Paris rebounds +0,57%, preceded by London +0,66% but ahead of Madrid +0,16%. The best price list, perhaps thanks to the victory at the World Cup, is Frankfurt +0,75%. Piazza Affari's about-face coincided with the publication of the latest data on public debt: more than 20 billion in May to 2.166,3 billion. Since the beginning of the year the debt has increased by 96 billion with a growth of 4,7%. The rise in the debt/GDP ratio is inevitable, underlines via Nazionale. Meanwhile, the data on European industrial production is falling again: -1,1% in May both in the Eurozone and in the EU28.
In evidence Generali which reduces the increase to 0,13% after the news of the sale of the subsidiary Banca della Svizzera Italiana (BSI) to the Brazilian financial group Btg Pactual at the price of 1,5 billion Swiss francs, equal to 1,24 billion EUR. “With this operation we exceed the Sovnecy 1 target” commented the CEO Mario Greco. “Now we can move forward – he added – focusing on the core insurance business”. UnipolSai rises by 0,5%. Big Pactual is also at the center of the rumors about Telecom Italia +0,06%. The Brazilian group would be ready to take over Telefonica's share in the TLC group.
The Lisbon Stock Exchange recovered 0,4%, but the Banco do Espirito Santo lost 7% also due to the sales of the family of the same name which reduced its share from 24 to 20%. The 10-year Portuguese government bond strengthens, the 5-year yield falls by 3,78 basis points to XNUMX%.
The news from Lisbon is not good for the banks. The Big Unicredit +0,2% and Intesa +0,1%, MontePaschi -1,5% hold on. Banco Popolare loses 3%, Ubi Banca -2,9%. Slip by Snam after the commissioning of Italgas decided on Saturday by the court of Palermo on the basis of the anti-mafia law. Kepler confirms the hold rating: the damage is only to the image.
Tenaris increased by +0,7%, benefiting from the decision of the American authorities to increase duties on imports of Korean pipes for the oil industry (OCTG) into the USA. Tenaris is the leading US producer of seamless pipes. Among the industrial stocks, Finmeccanica +1,8% and the subsidiary Ansaldo Sts +2,7% run, the latter being promoted to Buy by Kepler Cheuvreux. Italcementi falls -1,6%: Jefferies reduced the target price to 10,5 euro (-25%).
