The confirmation of the forthcoming rise in US rates and, above all, the indications arriving from Brussels on the increasingly probable opening of an infringement procedure against Italy contribute to the negative trend in the price lists, anticipated at dawn by the sharp decline in the 'Asia. There Milan Stock Exchange leads the European declines: -1,3%, just above 19.100 points. Paris, Frankfurt and Madrid are also in the red with drops of less than 1%. London loses 0,6%
Tensions on BTPs are growing, while the clash between the Italian government and the EU flares up. The ten-year BTP trades at 3,44%, with the spread rising again beyond the threshold of 300 basis points.
“The government is currently busy preparing the response to the European Commission on the most controversial points of the manoeuvre. Maneuver that the government intends to confirm in its fundamental pillars ”, said the Minister Giovanni Tria during a hearing in Parliament. Meanwhile Luigi Di Maio reiterated that as soon as the budget law is approved, the decree on citizenship income and the reform of the Fornero law will be launched.
The vice president of the EU Commission with responsibility for the euro, Valdis Dombrovskis, said that the European executive is evaluating the need to open an excessive deficit procedure against Italy if Rome does not make the requested changes to the budget law by deadline next Tuesday, November 13th.
In the meantime, the descent of oil continues, flat around 70,5 dollars.
In the meantime, the strong decline of Telecom Italy -6,2% to 0,51 euro after the board's decision to proceed with the goodwill impairment and the announcement that the target of a debt/Ebitda ratio of 2,7x will not be achieved. The third quarter closed with a 0,7% year-on-year drop in Italian assets, to 3,79 billion euros, slightly better than expected. Vivendi, in opposition but in possession of the most important unitary share, does not exclude "any initiative that is suitable for protecting its interests", including the possibility of summoning the shareholders to request the revision of the board of directors.
The spokesman for the French group explained that the decision to devalue was taken by the council with the opposite vote of its representatives.
Tim isn't the only stock down after the accounts:
Leonardo -8,17%. In the third quarter revenues grow by 4% to 2,61 billion euros. Ebitda drops to 162 million euros (-14%), an unexpected decrease due to the increase in costs at the holding level. The helicopter division closed the quarter with an Ebitda of 20 million euros (+45% year on year). The company confirmed its medium-term objectives.
Tod’s -6,2%. Richemont's chief financial officer said this morning that China's golden age is over, forget about growth rates above 10%.
Also declining Moncler (-4%) and Salvatore Ferragamo (+2,25%) which closed the third quarter with 298 million euros, up by almost 3% at constant exchange rates thanks to the boost from the wholesale channel (+10% at constant exchange rates).
Weak banks. Understanding -2% Unicredit -1,4%. It also slows down Bpm bank -3,19%.
B for Bank +0,14%. In the third quarter, Common Equity Tier 1 improved to 12% from 11,63%, also because the bank managed to reduce the negative effects deriving from the widening of the spread. Total revenues at 497 million euros, down 2,5%. Operating profit drops to 175 million euros (-8%).
In asset management, Azimuth -3,19% FinecoBank +0,1%. Between insurance UnipolSai +0,7%, it closed the first nine months of 2018 with a net profit of 862 million from 430 million in the same period of 2017 and after the capital gain of 309 million generated by the sale of the investment in Popolare Vita. The figure is above consensus estimates.
Catholic -3,89%, ending the nine months with a net profit of 93 million euros and a solvency 2 ratio of 160%.
The document from the Energy Authority confirmed its intention to increase tariffs: Enel -0,9% Snam + 1,38% A2A, -0,2%. Fly That + 7%.
