Bad start to the financial week on European markets: the postponement of bank dividends, the drop in oil prices and the increase in pressure on the spread, despite the ECB's massive purchases of debt securities, contributed to a session in the red, in line with the Asian stock exchanges. Milano leaves 1,4% on the ground around 16.500 points, worse than Paris e Madrid, which lose respectively 0,86% and 1,27%, around parity Frankfurt. London -0,7%. Wall Street futures fluctuate around parity.
Confidence in the eurozone recorded its worst monthly drop ever in March, falling to 94,5 points (from 103,4).
Il Petroleum Brent slid to $23,5 (-5%) the lowest level since 2002. Goldman Sachs forecasts a contraction in demand this week never seen in history, a drop of 26 million barrels per day, equal to about a quarter of total daily consumption, which exceeded 100 million barrels before the outbreak of the pandemic. Oil prices hold: Eni + 1,1% Saipem + 0,1%.
The BTPs are in great pain, weighed down by the negative outcome of the Eurogroup. The spread Italy-Germany rises by a hair's breadth from 200 points, the Italian 1,44-year rate reaches 1,33% (from XNUMX% on Friday). On the other hand, the yield of the Bund, at the center of requests as a safe-haven asset, is down.
The debate on the resources to be allocated to deal with the damage of the pandemic is raging. EU Commissioner Paolo Gentiloni, after admitting that "the issue of bonds generically defined to mutualize debt will never be accepted" suggests creating "a new guarantee instrument for unemployment and a plan to support businesses". But the space for an agreement that goes beyond what has already been established by the ECB seems small.
Coronabonds are not the only tool in the fight against the coronavirus, nor even the most effective, according to what was declared today by the Vice-President of the European Central Bank, Luis de Guindos.
The Government has announced an extraordinary plan in favor of the families most affected by the crisis which could reach 10 billion euros through funds available to the mayors and to be distributed to needy citizens for spending vouchers (400 million) and an emergency income of 800 euros per month for two months for those who have not been able to work.
The ECB's recommendation to suspend the payment of dividends for the 2019/2020 financial years and not to carry out buybacks until at least 2020 October XNUMX weighs on the banks, as it considers it crucial that financial institutions conserve capital to preserve their ability to support the real economy in this delicate moment.
The Bank of Italy has also extended this recommendation to less significant banks under its supervision.
All the institutes fall back starting from the Big ones: Unibelievet loses 7,12%, Intesa, which will hold the board of directors tomorrow, 5%. Down too Bpm bank e Bper with discounts of more than 4%. Asset management securities also suffer for the same reason: Banca Mediolanum -5,7% , Fineco -4,1%, Azimut -2,4%.
Also down sharply Atlantia -5,5%
There is no shortage of positive notes, starting with the advance of Diasorin +5,5%, driven by involvement in the search for coronavirus tests. It shines Recordati +3,4%. They also go up stm +2,8% and utilities: Italgas + 3%. Enel 0,4+%. Terna +0,2%, he announced that the electricity dispatching network is holding up well and there is no fear of blackouts.
The market has appreciated the self-reduction of salaries (for 90 million) of the players' squad Juventus + 4,8% at 13.20pm. In the Scuderia Agnelli recovers positions Cnh +2,12%, harshly punished after the resignation of the CEO.
Exor -1,7%. Covéa has confirmed its interest in closing the acquisition of Partner RE. Based on the memorandum of understanding signed in February, the acquisition is expected to close within the year and provides for a cash sale of $9 billion. fca -2,4%. Around parity Ferrari.
Campari -2,7%. The shareholders' meeting approved the transfer of the headquarters to the Netherlands and the distribution of the dividend of 0,055 euro per share was confirmed. The company also stated that in light of the ongoing health emergency due to the COVID-19 virus, the previously provided 2020 outlook (February 18) cannot be confirmed.
