The mini-rally has already stopped Milano, today the worst European Stock Exchange: the Ftse Mib index loses 1,4% under the pressure of persistent sales on banks (European Stoxx index -1%) and Generali. Better Paris e Frankfurt, down 0,3%, e Madrid (-0,1%). In positive ground only London (+0,6%), driven by the performance of mining stocks.
Weak the BTP, with the 2,08-year yield rising to 2,02% from yesterday's 187%. Spread with the Bund widening to XNUMX.
According to the latest polls, 100% of investors expect a rate hike from the next Fed meeting on December 14th. Central bankers should already have at their disposal a dense collection of data to justify the increase in the cost of money.
Il dollar it floats near the recent 13-year high, taking a breather from recent gains ahead of the Thanksgiving holiday. The US currency trades against the euro at 1,0606, close to an 11-month low.
Petroleum up while the agreement between the OPEC countries on a production cut seems less easy than expected: to overcome the resistance of Iraq and Iran, the decisive summit has been postponed to 30 November. Brent is traded at 49,3 dollars a barrel (+0,4%). Among the energy Saipem + 0,1% Eni -0,3%.
Enel -0,5%: Kepler Cheuvreux raises to 4,6 euros from 4,5 euros, Buy confirmed.
Meanwhile, the tension on Italian banks is growing again. Banca Popolare di Milano falls down by 5% dragging with it also Banco Popolare, down 4,8%. The price drops to its lowest since 2013. In the inspection recently conducted in the two banks, according to Il Sole 24 Ore, the ECB would have found the need for the Veronese group to raise the levels of coverage on non-performing loans by 1-2 billion, although not necessarily requiring a recapitalization. The hypothesis is that a "capital decision" could come from Frankfurt that raises the minimum amount of capital to be held against the risks.
Unicredit -3,8% and Intesa -2,9% are down. Down too Mount Paschi (-3,7%): the necessary quorum has been reached for tomorrow's extraordinary shareholders' meeting which will have to approve the proposed capital increase of up to 5 billion euro requested by the European Supervisory Authority. According to the explanatory note released upon Consob's request in view of the meeting, the Sienese bank expects to obtain 1.043 million from the conversion of the bonds subordinated shares of the bank (out of a total value of 4,28 billion).
The accounts for the first nine months of 2016 close with a pro forma loss of 4,54 billion, 360 million euros more than previously published. The out-of-pocket costs of the restructuring plan amount to 448 million.
Philippe Donnet, the CEO of Generali (-3,95%) said today on the sidelines of the investor day that the company "wants to participate in the solution for MPS, therefore it will look at the terms of the conversion of the bonds". The CEO reiterated that the company intends to accelerate efficiency and profitability with the exit from less attractive markets (13-15) and the rationalization and simplification of the operating machine in mature markets.
Donnet instead denied yesterday's rumors about a plan to cut staff with 8.000 redundancies: "It's a number that doesn't exist," he said. The optimization of the international geographical presence will bring a billion in revenues by 2018, while a net reduction in costs of 200 million is expected from simplification in mature markets, says a note. The 2018 targets of cash generation in excess of 7 billion, an average operating Roe above 13% and dividends of over 5 billion have been confirmed.
Among the industrialists it advances Fiat Chrysler (+0,3%): Goldman Sachs raises its target price to 10,6 dollars (9,97 euros) from 8 dollars. Buy judgment confirmed. Brake instead StM-0,4%: MainFirst raised the target price to 8,5 euros from 7 euros. Confirmed Neutral.
Telecom Italy -0,5%. Vivendi announced to be rose to 23,15% of the capital.
