THE GHOST OF DEXIA SCARE THE BAGS
ANOTHER DAY IN DEEP RED
After having danced for a long time on the edge of the precipice, the Stock Exchanges have reduced their losses, however very heavy. In Milan, the FtseMib index, after having suffered a decline of around 4%, reduces the decline to 2,72% at 14.243, Paris -2,5%, Frankfurt -2,7%. The session was conditioned by the collapse of Dexia, the Franco-Belgian public banking group, now destined to go down in history as the first victim of the sovereign debt crisis. The bank's stock is down by 19% to 1,01 euros, after having touched a loss that is even double, 38%, so as to reach 0,81 euros, the minimum in its history. The cause lies in the fall in the value of the Greek bonds it holds in its portfolio, around 3,6 billion euros: in August the bank wrote down by 20% around 1,6 billion euros of bonds with maturities prior to 2020.
If it were to devalue by 50% the value of all Greek government bonds, that is what the Dutch and Germans are asking for, who want to renegotiate the conditions agreed for Athens' private creditors, the loss would be unbearable. A formal statement arrived this morning in which France's finance ministry says France and Belgium and their respective central banks will take all necessary measures to safeguard creditors and depositors.
Less serious, but no less impressive, is the revision of the targets by Deutsche Bank: Joseph Ackermann's battleship, which is about to leave the institution next spring, will not meet the targets set for 2011. And the stock leaves the ground up 9% before settling at -5,5%. The director general of the Bank of Italy, Fabrizio Saccomanni, in a conference in Brussels suggested the need for an agreed truce on the financial markets. Give debtors time in exchange for credible stability-oriented national government plans. "With financial globalization we have gone from one excess to another," said Saccomanni. “Before, every investment seemed safe, from junk bonds to Greek government bonds. Today we are at the opposite extreme where no investment seems safe”.
THE BPM RACE IS ENDING OFF, TODAY THE BOD
THE MYSTERY CONTINUES ON THE IMPREGILO SHAREHOLDER
At this point, the great uncertainty of the banks also in Piazza Affari is not surprising. In Milan, Unicredit fell -4,5% and Intesa -6,2%. Banco Popolare -2,7%, Mps-5,22%, Ubi -2,86%. The race for Bpm stops: - 5,57% on the day of yet another decisive board of directors (or almost). Last night Investindustrial said it has 2,6% of the capital. Less aggressive sales on insurance companies: Generali (-0,7%) and the upward push on Fondiaria Sai -1,2% ended. Heavy declines for Fiat -7,47% and Fiat Industrial -8,46%, in line with the retreat of Buzzi - 7,28% and Italcementi -5,7%. Eni holds -0,2% the other oil stocks fell, especially Saipem -4,4% and Tenaris -3,6%. Impregilo +4,7% went against the trend: a still unknown investor yesterday bought 5% from various institutional investors, paying 1,97 euros for the shares, 7% more than the closing price. Telecom Italia also up +1,58%
BERNANKE: A NEW STIMULUS IS NOT PLANNED
THE BANKS ON WALL STREET ARE UNDER PRESSURE
Wall Street also continues to decline sharply, weighed down by the fall in financial stocks. Dow Jones -2%, S&P500 -1,6%, at its lowest since March 2010. The Nasdaq (-0,6%) contains losses because it is substantially devoid of financial stocks, the hardest hit due to ties with French and German finance . The tension on the markets is highlighted by the Vix index, which measures the volatility of the markets, which rose to 45%, on the highs since August reached when there were fears of the collapse of some peripheral countries of the euro area.
US data on industrial orders in September came in worse than expected, indicating a decline of 0,2% from 2,1% the previous month. Analysts had expected stable orders. At 16:00 pm, Federal Reserve Chairman Ben Bernanke's hearing on the House Committee on Business Cycle Forecasting began. Bernanke reiterated that inflation is under control but also added that "no increase in quantitative easing is planned". The euro is unchanged at 1,317, yesterday's close level against the dollar. The spread between Btp and Bund rose to 382 basis points, slightly worsening from 380 this morning.
