The ECB is considering whether or not to announce numbers and duration of the scheme purchase of government bonds, aimed at reducing borrowing costs for Italy and other high-debt countries which will come into effect on July 21 together with the first increase in interest rates for over a decade. A lot of uncertainty, combined with Wall Street's negative reaction to the decline in consumer confidence, translates into a new wave of selling on European lists: Business Square -1,40%- thus back below 22 thousand (21.792 points). The futures on the opening of the US markets are not helping: Nasdaq almost flat, following the worst session in the last two weeks.
Spreads down in anticipation of German inflation
In the meantime, however, it improves it spread slipped to 187 points with the yield of the ten-year BTP falling to 3,46% from 3,54% yesterday. All eyes are on a series of speeches – including those by Christine Lagarde and Jerome Powell – on the agenda for the last day of the ECB meeting in Portugal. But the data on inflation in Germany will be no less followed at 14 pm. The forecast is for +30% as regards the harmonized EU data, from +8,8% in May. Some economists point out that growth could be weaker because the new controlled tariffs on public transport came into effect on January 8,7st.
However, the alert level on inflation remains high, the data released this morning show that in Spain, in June, the increase in consumer prices was +10,2%, the EU harmonized figure +10%, the consensus it expected +8,8%, roughly May's yoy growth.
Ruble up, Chinese yuan flat
Worth noting is the new leap forward of the ruble in response to the new sanctions which was discussed at the G7. The Russian currency gains 3% against the dollar and reaches levels it hasn't seen since 2015. Chinese Yuan little moved: the Yuan's share in Russia's economy will increase, said the governor of the Russian central bank Elvira Nabiullina. The governor added that there is a demand for Chinese currency deposits. But Beijing is using strong methods to control the distress of savers. It has emerged that the authorities have decided to use the Covid 19 tracing measures (with extensive use of artificial intelligence) in an improper way. A few hundred citizens, who had come to the city to protest against the blocking of their savings by some rural banks in financial difficulty, as soon as they arrived at the station and when it was time to read the QR Code which was to authorize the go-ahead, received a report of code red and were stopped and put back on the return train the following day, in violation of confinement regulations.
Stock exchanges suffer: cars under fire
In Piazza Affari the operators reject the team exr in the aftermath of the agreement on the 'Fit for 55' package of green measures for the climate which provides, among other things, for the 100% reduction of C02 emissions by 2035 for new cars and vans, therefore the halt to the sale of cars petrol and diesel by that date. It also moves back Classic Ferrari for sale – 3,1% who also received, together with Lamborghinia five-year derogation. Losses around 3,5% also for Exor e Cnh. Down too Stellantis.
Eyes still focused on Milan Saipem while the 2 billion euro capital increase is underway: the rights are suspended (theoretical -61%), the stock stabilizes +0,39%, The Algiers Court of Appeal has condemned the company for illegal behavior in construction of a gas liquefaction plant. The company has said it will appeal, but in the meantime it has to pay part of the fine imposed, around 150 million. Morgan Stanley lowers the target price to 5,2 euros.
Ta the banks well Bpm bank +1,22% and Popolare Sondrio +1,8% after the presentation of the business plan.
