STOCK EXCHANGE DOWN (-1,84%) AFTER THE BTP AND CCTeu AUCTION
INCREASING RETURNS, SPREADS ABOVE 300
After a heavy downward start (minimum of 18.185 points for the Ftse Mib index) also conditioned by the growth of the differential between the bund and the Btp to 317 basis points (later dropped to 312) the Milan Stock Exchange returned, around 10 and thirty, in positive ground (+0,23%), to then fall back below parity: at 12 the index marks -1,84 (Ftse Mib at 19.033) The fluctuating trend can be explained by the moods linked to the auction of Btp: the increase in yields and the lower demand have confirmed the difficulties of the Treasury. In fact, between 11.15 and 11.30 the offer of up to 8 billion euros of bonds was scheduled, divided as follows: up to three billion BTPs maturing in 2014, up to 3 billion euros in BTPs maturing in 2021, up to 1 billion bonds maturing in 2018 and a similar amount with a maturity of 2015. 2,69 billion euro of BTPs with a 10-year maturity and a yield of 5,77% were placed compared to the 5,81% expressed by the secondary market.
The request was equal to 1,37 times the offer. 3,5 billion euros of bonds maturing in 2014 and yielding 4,8% were also placed: the ratio between supply and demand was 1,314. CCT eu 840 million were also allocated at a rate of 4,58%. Previously, a few moments before the auction, the business confidence index elaborated monthly by the European Commission was communicated, this indicator recorded a deterioration in July, falling to 103,2 from 105,4 in June, this is the point lowest since August 2010: economists had expected a drop to 104.
The three-month Euribor was set at 1,610% from 1,612% yesterday. The euro trades at 1,437 against the dollar, flat compared to last night's closing levels. Brent-type oil rises to 118,15 dollars a barrel and Wti-type crude is up to 97,6 dollars a barrel: the rise is justified by fears of the arrival of a storm in the extractive areas of the Gulf of Mexico.
BANKS ATTEMPT THE REBOUND, THEN THEY BRAKE
MEDIOLANUM (+4%) DEVALUES GREEK STOCKS
First in decline then in recovery due to the attention for the sector at European level. Finally, a correction after the auction. Here is, in summary, the performance of the main Italian banks, grappling with rebound tests after the heavy declines of the last few sessions. Intesa rises by 0,4%, Unicredit advances by 0,5% (from minus 4,3% yesterday and +3,35 in mid-morning). Insurers are also recovering. Meanwhile, Unicredit has communicated the consensus estimates for the second quarter of the data that will be communicated on August 4th, the analysts' average foresees: a) revenues at 6,487 billion euros; b) net profit of 470 million euro, above our estimate of 390 million, after expenses of 3,942 billion euro and provisions of 1,450 billion euro.
Mediolanum runs (+3,91%) after confirmation of the coupon for the current year. The company has decided to devalue the Greek bonds in its portfolio by 20% in the half-year report just approved. It is foreseeable that the example will be followed by other companies. The exposure, based on the latest published data, amounts to 500 million for Generali (-0,8%) 84 million for Fonsai, 30 each for Unipol and Milano Assicurazioni.
HEAVY BLOW FOR FINMECCANICA (-14%)
MEDIASET IN FERMENT BEFORE THE BOARD OF DIRECTORS
Tenaris loses 5% while the French competitor Vallourec collapses in Paris (-15%) the day after the presentation of figures for the quarter lower than analysts' forecasts: Ebitda stood at 254 million euros, 34 million euros in less than consensus. The result was influenced by the costs of building a new plant in Brazil and by the increase in raw materials. Worst blue chip this morning is Finmeccanica, the title plummets the day after the presentation of the quarter's data. The title collapses by 14% to 61 euros, earning several times the suspension due to excessive reduction.
The defense group closed the first half with revenues down to 8,432 billion from 8,654 billion and an adjusted EBITDA of 440 million from 586 million. The adjusted Ebitda margin fell to .2% from 6,8%. Net income benefited from the capital gain on the sale of 45% of Ansaldo Energia and therefore marks a growth of 135%, equal to 456 million euro. For the full year, Finmeccanica estimates revenues between 17,5 and 18 billion euro from the previous estimate of 18,3-19 billion.
This morning Unicredit analysts lowered the recommendation to hold from buy, the target price drops to 7,7 euros. Pirelli still up +1,8%, which yesterday afternoon presented the data for the quarter, the company subsequently warned that it will raise tire prices by up to 6% starting from September. Mediaset rises by 2% on the day after the presentation of the quarterly data. In Midex, Indesit loses 3%.
