MPS AND TELECOM SHINE IN A FLAT BAG
THE MADRID PROMOTION DOES NOT WARM UP THE BTP
Business Square little move: the FtseMib index falls by 0,01% to 19098.
The London Stock Exchange rises by 0,16%, Paris +0,09%, Frankfurt +0,01%.
Madrid gains 0,5%. As of this morning, Madrid's government bonds no longer risk being rejected as a "junk bond". This follows Standard & Poor's decision to improve the outlook on Spain to stable from negative. The agency also demoted the Netherlands, who lost the triple A. Only three Eurozone countries remain in the top spot: Finland, Germany and Luxembourg.
The spread is stable at 234 bp.
In the absence of Wall Street, which is almost at a standstill for Thanksgiving day, a November finale without great excitement is expected.
The risk of deflation is receding in Europe. After the drop in October to 0,7% (from 1,1% in September), the annual inflation rate in November climbs back to 0,9%. This is Eurostat's flash estimate. The Italian data is more worrying: the national consumer price index rose by 0,6% in November, however resulting in a slowdown compared to October (+0,8%). It is the third consecutive drop in the inflation rate which, for 2013, thus falls to 1,1%.
Unemployment rises to 12,5%, at its highest since 1977.
The market response to Monte Paschi's business plan was good +1,85%. Aiming to drastically reduce costs through staff reductions and branch closures to improve cost-income ratio to 50% from 66%. The group also expects to achieve 200 million in net profit as early as 2015, while at the end of the plan, as already anticipated last October, the goal is to reach 900 million. Objectives that Credit Suisse analysts consider "reasonable".
The other banks were down: Unicredit -0,1%, Intesa -0,17%, Banco Popolare -0,64%, Pop.Milano +0,05%.
The front lights up Telecom Italy +1,82%, the best blue chip. According to the Brazilian press, the Antitrust could decide as early as Wednesday 4 December on the Telecom-Telefonica share plot and ask for the immediate sale of the C shares, ie those without voting rights. The Spaniards are reportedly trying to get TI to sell 67% of Tim Brasil next year, to eliminate the conflict of interest. HSBC raises rating to overweight.
Insurance companies stable: Generali unchanged, Fondiaria-Sai +0,31%.
Finmeccanica and Fiat unchanged. StM-0,1%. Prysmian drops by 0,4%, Pirelli -0,7%.
Modest changes for Eni +0,45% and Enel -0,35%.
