EUROPEAN EXCHANGES WEAK WAITING FOR THE FED
ALSO WAITING FOR THE GREEK MEASURES
Weak European stock markets awaiting today's decision by the Fomc: the Dax loses LO 0,79%, the Cac 0,75% and the Ftse 100 0,25%. Milan moves uncertainly, swinging volatile around parity (-0,34%): the Ftse Mib went from an intraday low of 14.273,90 to a high of 14.537,13.
The Fed's rate decision is expected in the evening. The consensus is for a cost of money that remains unchanged close to zero. But all eyes are on the possible announcement of new monetary expansion measures through a "Twist" operation, i.e. the rebalancing of the US government bond portfolio towards longer maturities to lower long-term rates in order to favor the refinancing of mortgages and the return of investors on shares and corporate bonds.
A new quantitative easing program appears to be shelved for now. On the Greek front, there is expectation of the agreement in principle that would have been reached between the Greek government and the representatives of the Troika who are expected in Athens next week. Athens should present the new austerity measures launched by the Government of Athens. Among the measures on the table would be the reduction of salaries and pensions, layoffs in the public sector, the abolition of subsidies and incentives and increases in taxes on transport fuels and heating fuels.
BNP AVAILABLE WITH FURTHER EFFORT
BTP SPREAD UP SLIGHTLY
In the meantime, French banks, still under pressure on the markets, are receiving a signal of greater availability: BNP Paribas, said CEO Baudouin Prot, is ready to participate in an additional effort by all private investors in Greece, giving up collect a further part of his claims. In the aftermath of the S&P downgrade on Italy, government bonds deteriorated slightly to 393 basis points as purchases of German bunds continued: the Budesbank announced that 4,188 billion euros of the bund were auctioned in September 2021. average yield is 1,8% (previous auction 2,15%) and the bid to cover 1,5 (from 1,4).
The yields of Portugal rose today in the auction, which placed on the market bonds for 1,25 billion euros in three and six months with the yield premiums on the six-month bonds rising to 5,249% from 4,989%. For German Finance Minister Wolfgang Schaeuble, in an interview with the Berliner Zeitung, the speculation against Italian securities can be explained more by the mechanisms of political decisions, and less by economic facts.
Greece is still at the heart of the problem of attacks on European titles. But the Italian government is expected, again according to Schaeuble, to quickly and resolutely implement the recently prepared package of measures. The euro strengthens to 1,37 against the dollar.
BUSINESS PLACE: FIAT INDUSTRIAL HALLS
FIGHT THE BANKS
Fiat Industrial (+4,94%) stands out in Piazza Affari in the wake of the positive results of Iveco and the growing prospects of the agricultural machinery market. Fiat Spa, on the other hand, falls (-3%) on which UBS analysts have today reduced the target price to 7 euros from 8,5. Meanwhile, Moody's cut its rating from Ba1 to Ba2, indicating a negative outlook. Impregilo also performed well among the cyclical markets, rising by 2,56%. Terna (+2,7%) and Snam Rete gas (+1,34) are up, while Enel Green Power is among the worst performers (-1,75%). Enel is also weak (-0,90%). Eni rises by 0,93%.
Contrast the banks with Unicredit which fluctuates around parity while Intesa Sanpaolo yields 0,45%. In the red Ubi of 1,87%. Banca Popolare di Milano by 0,96%: the renewal of governance on the board today through the transition to the dual system with a 17-member CDS and a 5-member management committee with the aim of separating ownership and unions by management. The definitive decision, according to what was stated by the president Massimo Ponzellini, will arrive next Tuesday. Mediobanca drops by 1,14% on the day of the board meeting on the annual results.
