EUROS IN WITHDRAWAL, BAGS STAGGER. MILAN BLACK JERSEY, THE SPREAD RISES UP
Indexes in deep red at midmorning. Milan -2,85% Ftse/Mib index at 13072 is the worst in Europe, but all the indices are bad: Paris loses 2,01%, Frankfurt 1,79% and London 1,87%.
The fastest falling stocks in Europe are those of commodities (Stoxx of the sector -3,2%), of the automotive industry (-1,8%) and the banks (-1,7%).
The market is tense waiting for the EU summit tonight, from which decisive interventions are expected on Greece and Spain and decisions on Eurobonds, which however the market fears may not arrive. In the background remains the question of what could happen in the event of Greece leaving the euro.
Pessimism was also fueled by the declarations of the outgoing Greek prime minister, Lucas Papademos, who declared to the Wall Street Journal that the risk of Greece leaving the euro is "real and that the country is already gearing up for the return of the drachma".
The Btp/Bund spread rises again to 416 points, 8 more than yesterday's close. The yield on the 5,60-year government bond is 1,26%. The euro trades at around 15 against the dollar (-XNUMX).
In Piazza Affari, the decline of Pirelli stands out, falling by 6,46% after Goldman Sachs lowered its buy recommendation to neutral this morning. Other stocks in the auto sector were also down: Fiat -3,05%, this morning announced an alliance with the Japanese Mazda. The two manufacturers have signed a memorandum of understanding for the development and production of a new rear-wheel drive spider for the Mazda and Alfa Romeo brands based on the next-generation MX-5 architecture. Both vehicles will be produced in the Mazda plant in Hiroshima in Japan starting from 2015. However, the negative opinion of Citigroup on the Lingotto weighs heavily. Fiat Industrial loses 4,06%.
Widespread declines also for other industrial stocks: Finmeccanica drops by 3,98%, Prysmian -3,74%, StM -3,2%. Parmalat was also in deep red -3,47% after the decision to acquire the US assets of the parent company Lactalis for 904 million dollars.
MontePaschi wobbles -4,84%, heavy drops for Banco Popolare -4,91%, PopMilano -5,49%, and Ubi -4,47% which wipe out the gains on the eve. Unicredit -3,89%, Intesa -3,73% despite the capital gains for the sale of shares in the London Stock Exchange. Generali is also bad -3,32%.
Among the Milanese blue chips, only a few utilities escape the downturn. A2A +1,24% close to the closing for Edison, Snam +0,5% in view of the decree law on the transition from Eni -3,02% to CDP. In Europe ArcelorMittal, the world's leading steel producer, fell by 4,3% on the Amsterdam Stock Exchange. Rio Tinto, the Australian mining giant, fell by 4,1%. In the USA, after the Stock Exchange, Dell fell -12%, after a disappointing quarterly.
Isvap, the insurance supervisory authority, has indicated Friday 25 May as the deadline for defining both the share swaps in view of the merger between Unipol and Fondiaria-Sai and of the stages that will have to lead to the definition of the new insurance hub.
The takeover bid exemption given by Consob, as is known, also sets precise conditions: via the indemnification of Premafin's managers and exclusion of the right of withdrawal due to the effect of the merger by the latter, which is being studied by the Ligresti's lawyers.
