BANKS SINKING EUROPEAN EXCHANGES
THE SPREAD BETWEEN BTP AND BUND RISES TO 345 BP
The decline of the European Stock Exchanges worsens, dragged down by the rapid selling on the banks, despite the ban on short selling. In Milan, the Ftse/Mib index drops by 3,63% to 14.513, Paris even 4,03%, Frankfurt -3,66%. The decline took shape as the hours went by, after an opening that was already in sharp decline for all the European stock exchanges. Frankfurt, with a loss of around 3% since the opening, confirms itself as one of the epicenters of the crisis, also in the wake of the electoral setbacks of German Chancellor Angela Merkel, which accentuates Europe's difficulties in pursuing a coordinated policy of support to countries in difficulty. In the regional elections of Mecklenburg-West Pomerania, Merkel's Christian Democrats (CDU) fell to 23%, the worst result since 1990. Social Democrats rose to 36,1%.
5,35 YEARS AT 22%, XNUMX POINTS ABOVE MADRID
THE GERMAN JUDGES ARE FEARED ABOUT THE BCE PURCHASES
But the most painful note is still represented by the strong tensions on Italian and, to a lesser extent, Spanish government bonds. Sales on the 13-year BTP drove up the yield by 5,35 basis points to 345%. The spread with the German Bund is 5,13 basis points, the highest level since the ECB launched the program to purchase Italian government bonds. On the market, Italy is worse than Spain: Madrid's ten-year bond yields 4% (+323 points compared to Friday) and the spread with the Bund is 1,414 points. The euro is weakening against the dollar to 1,4205 (from 1,1140 on Friday night) and against the Swiss franc, which rose to XNUMX. The week is full of crucial appointments to test the solidity of attempts to resolve the sovereign debt crisis in the euro area. A ruling by Germany's Federal Constitutional Court on Wednesday could curtail the German government's freedom to finance crisis-hit countries, such as Greece. In fact, the Court will have to say whether Berlin, by financing the rescue of countries such as Greece, Portugal and Ireland, is infringing national laws and European treaties, according to an opinion shared by the President of the Republic Chistian Wulf himself. The day after the European Central Bank, internally divided on interventions on the bond market for BTPs and Bonos, will make an assessment of the plan in place in the monthly meeting of the directorate, scheduled for Thursday. The Frankfurt institute should in fact decide whether to continue buying Italian government bonds. Finally, this week Greece will find out how many private investors have accepted the government bond swap. By Friday afternoon the banks will have to say whether or not they are interested in the swap.
US CAUSES MAKE THE BANKERS SHAKE
DB, CREDIT SUISSE, BARCLAYS LOSE 7%
The sovereign debt crisis is making itself felt above all on the banking front. Bank stocks, as well as commodities and construction stocks, got off to a bad start. In the credit sector, in particular, the biggest declines are concentrated in the City, where Royal bank of Scotland and Barclays slip by 8,94% and 7,38% respectively. Credit Suisse was also very bad in Zurich, down by 7,5%. Société Générale is down 7,5%. Deutsche Bank in Frankfurt loses 7,5%. The US government's decision to sue a group of 17 banks for the damages suffered by the state agencies Fannie Mae and Freddie Mac on subprime securities contributes to complicating the situation for the big banks. The 17 banks also include Deutsche Bank, Credit Suisse, Royal Bank of Scotland. The Federal Housing Finance Agency (FHFA) has filed the appeal in the New York City Court and the Connecticut Federal Court. The FHFA is accused of having given misleading information to Fannie Mae and Freddie Mac about the solidity of the mortgage loans that were the basis of the subprime securities, which the two agencies decided to guarantee. The FHFA appeal states that Deutsche Bank "sold" securities to Fannie Mae and Freddie Mac for 14,2 billion dollars, to Credit Suisse for 14,1 billion, to Rbs for 30,4 billion, to Société Générale for 1,3, 4,9 billion and to Barclays for XNUMX billion.
ONLY MEDIOBANCA IS DEFENDING IN MILAN
RAIN OF SALES ON INDUSTRIAL
In Milan, Bpm dropped sharply (-3,9%). But Understanding -4,8% and Unicredit -4,3% are doing worse. Mediobanca, the only stock up in the morning, now takes 1,1%. . But the Bear also affects industrial stocks: Fiat -3,3%, Fiat Industrial – 4,1%, Finmeccanica -5%, Prysmian -3% as well as Italcementi -4,7% (the worst stock among those with a high capitalisation) and Buzzi -3%. The downgrading by Bank of America weighs on Enel Green Power -3,8%. The only positive note concerns Poltrona Frau +3,8%: the company announced on Friday that the group's managing director Dario Rinero bought 25 shares at a price of 1,099 euros. An investment that took place after the publication of the results for the first half of 2011 which highlighted: a turnover of 128,7 million euros, -2% on an annual basis (but +6% on a quarterly basis), an Ebitda of 6,9 million eu growing by 14% on an annual basis but above all an Ebit of 3,4 million, much better than the 300 thousand euros of June 2010. For the second part of the year, the management expects the continuation of the growth trend highlighted in the last quarter thanks to an order portfolio that has grown by 6,5% since the beginning of the year. Edison today at the center of the awaited meeting between the Minister of Development, Paolo Romani, and the president of Edf, Henri Proglio has lost altitude after a brilliant start. Meanwhile, the indiscretion for which Acea said it was willing to intervene was confirmed. In Edison after the request of the Minister of Development Paolo Romani who probed the availability for an investment for the Edipower plants (50% owned by Edison).
