FCA returns to racing after a setback at the opening of the transfer market on Friday morning in Milan. But Cattolica Assicurazioni is holding the court in Piazza Affari, after the blitz it has CEO Alberto Minali surprisingly dismissed: shares plunged, a clear sign that investors did not like the maneuver on the top. More generally, European stock markets greeted Cristine Lagarde's arrival at the ECB with increases on the day she takes office at the helm of the European Central Bank. An arrival also greeted by the stability of the euro-dollar exchange rate while the unexpected rise in the manufacturing index in China leaves investors surprised and happy, welcomed with rises in the main Asian markets. The Ftse Mib advanced by 0,38% at 13pm, in line with Frankfurt and London.
FCA BRAKES BUT THEN STARTS AGAIN AND CAPITALIZES MORE THAN PSA
False start, it was said, for FCA shares which opened slightly lower in Milan - after the strong leap forward following the rumors and the subsequent confirmation of the deal with PSI - but then reversed course and moved in the 14,126 euro area (+1,42%).
The market appreciates the merger project with the French group, which will lead to the creation of the fourth largest car group in the world, behind Toyota, Volkswagen and Renault-Nissan. Furthermore, before the operation, the company should distribute 5,5 billion euros in dividends as well as the stake in Comau. Peugeot, on the other hand, will give its shareholders the shares of Faurecia, in which it holds 46% of the capital. In Paris the Peugeots also started to climb again, after the setback on Thursday: they score a progress of 3,3%. After the movements of the last sessions, the capitalization of FCA, equal to 21,9 billion, has slightly exceeded that of Peugeot, equal to 20,9 billion.
However, one of the major French trade unions, the Confédération democratiche du Travail (Cfdt), judged the transfer of the new FCA-PSI to the Netherlands "scandalous" due to tax issues. It is a first negative sign”.
CATTOLICA COLLAPSES AFTER NO CONFIDENCE IN MINALI
The board of Cattolica revoked the powers of the managing director Alberto Minali to assign them to the general manager, Carlo Ferraresi. The quotations returned to the levels of autumn 2017 and when the American financier Warren Buffet entered the capital, buying 9% of the shares with his fund. In Milan Cattolica Assicurazioni, outside the main basket, sinks to -5,3% at 7,4 euros.
The other featured titles are Tenaris which leads the Blue Cips with an increase of 3,8% and Stmicroelectronics +1,23%. Weak banks.
Looking at the macro data, the market awaits the data on US jobs and on the latest survey of the ISM manufacturing index. Oil still down: Brent at 59,87 dollars (-0,6%) and Wti at 54,49 dollars (-1,03%).
