The failure of prices to recover in Europe is more worrying than the Italian electoral uncertainty. The consumer price index in the euro area in January, according to the final reading, it fell 1,3% year over year (-0,9% on a monthly basis).
Piazza Affari around 12 is in slightly negative territory: Ftse Mib index at 22.450 with a drop of 0,06%. Weaker, with decreases around 0,2-0,3%, Paris and Madrid. Frankfurt also lost 0,2%. In the last quarter of 2017, growth in Germany was confirmed at 0,6% (with GDP registering an increase of 2,9% on an annual basis).
The euro weakens around 1,2312 against the dollar. Investors are repositioning themselves on the political uncertainties surrounding the eurozone. On the one hand there is the Italian vote of 4 March, on the other the decision of the members of the SPD on joining a new government coalition led by Angela Merkel, a decision also expected on 4 March.
The Italian financial market, just over a week before the elections, begins to be affected by political risk. The Bund BTP spread rose to its highs of the last month, around 140 basis points from the low of 120 basis points reached in January. Yield of 10-year BTP at 2,07%.
On the other hand, purchases on the ten-year Bund restart: yield at 0,68%, on the lows of the month.
Oil companies in strong evidence. Brent gained 1,6% in conjunction with the release of US inventories data.
Eni +0,3%. Also due to the promotion of two different brokers: Mediobanca sets the target price at 20 euros, Equita at 17. Thanks also to the strategy carried out by the six-legged dog. Starting with the new enhanced supercomputer presented yesterday to investment houses. Equita, in particular, focuses on the characteristics of PC4, the supercomputer in charge of the infrastructure of the Green Data Center of Ferrera Erbognone, the most powerful in the world at an industrial level. For upstream activities, the infrastructure will allow the execution of internally developed algorithms for three-dimensional geophysical imaging, the modeling of petroleum systems, the elaboration of internal models for reservoir simulation and optimization of production plants.
“We believe – is the opinion of Mediobanca Securities – that the supercomputer is an integral part of the company's dual exploration strategy. It also represents a key pillar in the group's decision to prefer the development of internal resources rather than relying on outsourcing, as competitors do”. Also prominently featured Tenaris +2,5% and Saipem + 2,5%. Saras +3,2%, Ubs has raised its rating to Buy.
Among the utilities Italgas lose 1%, Snam earns 2,5% thanks to the promotion of Deutsche Bank. Enel + 1%. Sale Telecom Italy +1% waiting for the board of directors on Persidera. Rai Way +1,4%. Together with F2i he would have raised the offer for the digital terrestrial platform put up for sale by Telecom Italia e Cheetah.
Back to Tim, the company is working with Goldman Sachs and Credit Suisse on the network separation project, Reuters reports. Finally, Telecom Italia could abandon the joint venture on content with Canal +: the next board meeting on 6 March will deal with it.
Among the banks with little moves, the Bigs: Unicredit -0,1%. Intesa Sanpaolo +0,1%. The European Commission has extended the time frame for the coverage of non-performing loans: the European executive has extended the total coverage of the provisions of a guaranteed credit to 8 years (from the previous 7).
Exor -0,4%. Swiss Re, the Swiss reinsurance company, closed the last three months of the year with a sharp drop in the net result, but still better than expected, moreover, in the press release it states that during the year there will be a progressive increase in the prices of risk coverage policies, especially those for natural disasters. Exor controls 100% of Partner Re, an American reinsurance company.
Also worth noting: ino discount Ferragamo -2,2% and Recordati -1,7%. Strong declines also for Igd -4%, after the results, Sogefi -6% and Fincantieri -2%. Instead they go up Mayor Tecnimont e falck Renew + 2%.
