MAJOR EUROPEAN SQUARES IN ROSSO
THE BTP-BUND SPREAD IS GROWING AND THE EURO IS WEAKENING
The data published by Eurostat on inflation in the euro area, up by 3% in September, and those on the unemployment, which remains stable at 10%. The Ftse Mib loses 1,70%. Frankfurt, -2,65%, Paris, -2,13% and London -2,06% are also doing badly. The expectation of the meeting between Sarkozy and Papandreu increases the uncertainty on sovereign debts and the spread between the German Bunds and Italian government bonds continues to widen reaching over 360 basis points. After having opened at 357, around 16 pm it stood at 364 bps. The spread between Bunds and Spanish bonos also grew to 316 points.
The debt crisis is also weighing on the euro. The vote of the Austrian Parliament is awaited, which must decide whether to issue the green card for the enlargement of the European rescue fund. L'yesterday's approval of German leaders and the return of the Troika from Athens brought the single currency down to 1,3525 dollars, from 1,464 yesterday. The yen, on the other hand, continues to strengthen, despite the announcement by the Japanese Central Bank to increase funds to 46 trillion yen on the foreign exchange market, or even by 50%: the euro stands at 103,75 yen, down to 104,7 yesterday.
THE BANKING SECTOR IS BAD
BPM IS THE EXCEPTION AND IT KEEPS FLYING
Almost all bank stocks are falling, in line with major European markets. Intesa loses 3,43%, Unicredit 1,65%, Bnp Paribas 5,39%, Ubi 2,11%. The shares of Banco Popolare di Milano went against the trend, reaching 1,811 euros, a jump of over 10 percentage points. At the origin of this strong increase (in the last four days the share has appreciated by almost 20%) the rumors about possible private investors interested in intervening in the capital increase. In pole position is the private equity fund Clessidra, which appears to be willing to inject 200 million euros into the bank.
SAIPEM ANNOUNCES OFFSHORE CONTRACTS BUT THE SHARES DROP
THE LUXURY SECTOR IN EUROPE IS IN FALL
Despite the announcement of Saipem of new contracts in Russia and Indonesia for 500 million euros, the stock fell by 3,47%, in line with the sector. Even the parent company Eni lost 0,68%, Stm 1,96% and Erg 0,24%.
The luxury sector seems to have reached the limit and not only in Italy. In Paris, Lvmh (-4,30%) and Richemont (-6,67%) and Hermès (4,19%) lost. In Milan, Ferragamo lost 16,02%, to 9,6%, after being suspended for most of the morning. At the end of July, the stock seemed to have taken off and had reached a peak of 13,70 euros per share; in the last three sessions, however, the share has always closed lower. Ferragamo was listed at the end of June. Safilo also lost 13,41%, due to the uncertainty about the renewal of the license with Armani and the cut of Equità to 6,4 euro of the target price - from 12,2 euro, almost half. Tod's (-5,29%), Lvmh (-3,60%) and Luxottica (-4,70%) are also bad.
