YIELD ON BTPs RISES AGAIN. SPREADS ABOVE 400
BUSINESS PLACE -2,8%, IT REMAINS THE WORST IN EUROPE
Piazza Affari is once again the worst in Europe today: FtseMib index -2,41% at 16.946 (8into 16pm), London -1,2%, Paris -1,7%, Frankfurt -1,3%, Madrid -1,1, 6,16%. The real emergency concerns the tension on sovereign debt and the yields of government bonds of Italy and Spain soar. The yield of the ten-year BTP rises to XNUMX% on its historical highs. The Spanish bono up 15 points basis at 5,61%. The yield of the German bund drops by 6 basis points to 2,11%: the differential between Italy and Germany widens to 407 basis points from 379 on Friday evening.
The euro depreciated to 1,399 against the dollar from 1,415 at Friday's close. The single European currency instead strengthened to 110,4 against the yen (+3%) after tonight Japan stepped in to curb its currency by selling yen , for the second time in three months. Finance Minister Jum Azumi explained that the intervention aims to curb purchases after the yen has been rediscovered as a safe haven currency in recent months. An anti-speculative intervention similar to the one carried out in the summer by the Swiss central bank.
CAPITAL INCREASES HIT BANKS
BUT THE POPULAR MILAN STARTS AT FULL GAS
The financial tensions affect, in particular, the banks. Unicredit -3,67%, Intesa Sanpaolo -5,31%, Ubi Banca -2%, Banco Popolare -3,11% and Mediobanca -3,3%. Impennata di Banca Popolare di Milano was suspended due to excessive increases and entered trading at 0,501 euro, up 2,89% after a start at +5,6%. The 800 million euro capital increase kicks off today and will end on 18 November. The price of the new shares is 30 cents a share, which is 40% off the Terp (at Thursday's prices). The rights to the capital increase collapsed to 0,72 euros, down 28%.
As usual, the financial tensions have a sharp impact on automotive stocks, the most cyclical: Fiat -5,2%, Fiat Industrial -1,9% and Pirelli -1,57%. Sharp decline also for Tenaris -4% and Atlantia -3,2%. Industrialists such as Finmeccanica -086% and Prysmian -1,70%, Eni loses 2%, Enel 1,5%. In Midex, Maire Tecnimont rose by 15%. The company announced that it has been awarded a 540 million dollar contract for works in Egypt.
UNIPOL-BNL CLIMBING, 3 AND A HALF YEARS IN CALTAGIRONE
FAZIO AND CONSORTE ALSO SENTENCED
The Milan court sentenced the ex-governor of Bank of Italy Antonio Fazio to three and a half years in prison and entrepreneur Francesco Gaetano Caltagirone for the attempted takeover of Unipol-Bnl in 2005. The ex-president of Unipol Giovanni Consorte was instead sentenced to three years and 10 months and to pay a fine of 1,3 million euro, while the former Bank of Italy supervisor Francesco Frasca was acquitted. Fazio was also ordered to pay €1,3m. The defendants are accused for various reasons of insider trading, obstruction of supervisory activities, insider trading.
