The European Stock Exchanges await the indications that will arrive from the central banks in a climate of moderate optimism. At the Stock Exchange Milano, the Ftse Mib index is slightly above parity, around 22.700 points. Since the beginning of the year, the increase in the index is close to 18%, about double that of the other lists.
The 2017 Bot auctions ended on a high note: this morning the Italian Treasury placed 4,75 billion euros 1 year bot at a rate of -0,407%, new all-time low. The Btp/Bund spread trades slightly down to 135 basis points from 137 at yesterday's close and the 1,65-year reference rate is stable at XNUMX%.
Spain is also active, placing 2,89 billion of three and 9-month bonds with declining rates. The Exchange of Madrid yields 0,2%.
The stock market is flat Frankfurt. Confidence in the German economy worsened more than expected in December, reflecting the uncertainty surrounding the policies of a government still far from being formed. This is what emerges from the index Call which stood at 17,4 in December from 18,7 in November, worse than expected.
Do better do London (+0,3%). Producer prices shot up in November: +7,3% from +4,8% due to the increase in oil prices and the fall in the pound. Inflation has exceeded the 3,1% rate, the highest of 2012. Mark Carney will now have to explain why, contrary to what the law requires, he did not alert the government once he crossed the 2% threshold.
The Stock Exchange is also on positive ground Paris (+0,2%). The French Atos (+3,5%) announces it has submitted an all-cash offer of 4,3 billion euros to acquire the Dutch digital security group Gemalto (+33%). The sector tech advances by 0,9%. At Piazza Affari stm + 0,7%.
Il Brent it hits $65,70, the highest price since June 2015. The interruption of an important oil pipeline in the North Sea reduces the supply already contained by the production cut decided by the producing countries.
Oil prices are also on the rise in Piazza Affari. Eni +1,1%: Credit Suisse adjusted its target price this morning to 15,25 euros from 14,50 euros, maintaining the Hold (Neutral) recommendation. Saipem + 2,7% Tenaris + 1,4%.
Among the banks advances Unicredit (+1,2%) after the "Christmas gift" from the ECB which improved the group's risk assessment compared to 2016 following the tangible actions to strengthen and reduce fiscal risk and considering the progress made in of the Transform 2019 plan. As a result, following the results of the Supervisory Review and Evaluation Process (SREP), the European supervisor lowered the Pillar 2 (P2R) capital requirement by 50 basis points to 200 basis points.
It is in progress capital market day. The slides show that the group expects a further 4 billion euro drop in gross non-performing loans by 2019, an increase in the payout (distributable profits in the form of dividends) to 30%, from 20%, with an increasing Cet1 solidity index at 12,5%. The bank announced the reduction of its position in Fino, the NPL portfolio (16,2 billion as at 30 June).
On the contrary it decreases Ubi -3,5%: the European Central Bank is asking to do more on non-performing loans and to present a new detailed road map by next March. This is the outcome of the dialogue that has taken place in recent months between the European supervisory authorities and the bank led by Victor Massiah regarding the review of asset quality.
Between January and November of this year, Understanding (+0,28%) disbursed credit for 45 billion euro, of which 40 in favor of small and medium-sized businesses and households.
In the rest of the list it moves downwards Salvatore Ferragamo (-4%) weighed down by the downgrade of HSBC which cut the rating to "hold" and revised the target price to 24 from 29 euros. In a report entitled "Another train will pass", the broker points out that recovery stories are not easy when the economy is slowing down, as he thinks the luxury sector will be in 2018. "The culture has changed for the better and society has undertaken many initiatives that should bear fruit. But it will take time for consumers to notice these changes,” he reads. The broker also cut the estimates to also take into account a lower than expected impact of the Patent Box's subsidized tax regime.
Weak Telecom Italy (-0,20%) on the eve of a new meeting between CEO Amos Genish and the minister of economic development Carlo Calenda. Genish said today that "we need to get out of our minds that grid separation is the solution to competitiveness problems." "The network separation model is failing all over the world," he added, citing the case of Australia and Sweden, "where it's going backwards."
