BARROSO: THE EUROBONDS ARE CLOSE
EXCHANGES IN RECOVERY, MILAN NEARS 2%
The European stock exchanges lengthen upwards after a downward start: in Milan, the FtseMib index rises by 1,9% to 14.028 points. Increases of more than two percentage points in Frankfurt and Madrid. Paris +1,5%. The trend changed after the intervention of the president of the EU Commission, Josè Manuel Barroso in the European Parliament. “I want to confirm that the Commission will soon present the options for the introduction of euro bonds” said Barroso speaking to the European Parliament: for some types of issues, there is no need even to amend the terms of the European Treaty. The euro has recovered positions and trades at 1,372 against the dollar from 1,367 at yesterday's close, it had dropped to 1,360 in the morning. The yield of the 10-year Italian BTP falls by 3 basis points to 5,63%: the BTP/Bund differential is 384 points. Tax revenues in the first seven months of 2011 grew by 1,3% with revenue estimated in line with forecasts and revenues holding up well. The Ministry of the Economy says so in a note accompanying the tax revenue data for the first seven months of 2011.
FINMECCANICA (+12%) AND ANSALDO (+29%) FLYWHEEL
GENERAL ELECTRIC TOWARDS THE PURCHASE OF STS AND BREDA
The case of the day concerns Finmeccanica (+12%): this morning, in response to rumors about an alleged sale of the railway transport business, the holding company stated in a press release that "the company will provide further indications regarding its strategies in the sector of transport at the conclusion of the analyzes undertaken". Finmeccanica has already sold, or is about to sell, to General Electric, Ansaldo Breda and Ansaldo Sts (+29%). In Europe, the best sector is the car sector (EuroStoxx +1,9%), driven by BMW +3,3% and Michelin +3%. Fiat goes up by 1,5%, preceded by Fiat Industrial + 2,5% and by Pirelli + 2,1%. Strongly rising, in line with the rebound of the chips sector, the Stm share +6%. After the initial shock of the downgrading of Credit Agricole and Socgen by Moody's, already discounted with the reductions of recent days, the credit sector is recovering positions. Intesa rises by 1,3%, Bpm by 1,5. Unicredit decreased slightly – 0,3% to 0,734 euros. The increasingly likely prospect of a capital increase weighs on the action in Piazza Cordusio.
SPOTLIGHTS ON THE MERKEL-SARKOZY SUMMIT
CHINA: WE HAVE NOT YET DECIDED ON BTPs
The most important event of the day will be the closed markets, the conference call between Angela Merkel, Nicolas Sarkozy and George Papandreou. The three leaders will talk at 18:00. Meanwhile, Chinese premier Wen Jiabao has warned Europe to put its own accounts in order rather than counting on external aid interventions from other countries. Something more will be known after the September 22 meeting between the representatives of the BRICS, the finance ministers of Brazil, Russia, India, China and South Africa which have 4.400 billion dollars in foreign exchange reserves, just under half of the world's foreign exchange reserves . The China Investment Corporation (CIC) "has not yet decided" whether to buy a massive amount of Italian treasuries, according to the Beijing Youth Daily newspaper. Citing a source "close to the CIC", the newspaper writes today that the president of the CIC Lou Jiwei is still in Italy with "most of his advisers". The source added that the investment committee of the same CIC, the body competent to manage a possible purchase of securities, is not currently examining any concrete hypothesis of purchases of securities.
