The countdown to the Greek elections has begun: Will Greece leave the Euro? In Athens, the withdrawals of families and businesses have reached 500 million a day while the Greek press is sounding the alarm: Greece has about 2 billion euros to pay salaries and pensions until next July 20th. According to the German press (Die Zeit), Greece will probably need a third aid package which, however, can only arrive if the government that emerges from the June 17 elections is in favor of reforms. In Greece, however, polls indicate that 70% of the population does not want to leave the euro. Antonis Samaras, number one of the center-right New Democracy party, in case of victory sees room for Athens to renegotiate the aid package agreed with the IMF and the EU after the changes underway in Europe with the financing maneuver of the Spanish banks.
Ma after Spain, Rome ended up under the eye of the storm (the WSJ spoke of a moribund Italian economy): the Government promptly rejected any hypothesis of recourse to European aid and Monti is preparing to bring growth measures to the cabinet on Friday to relaunch infrastructure and development. Today the 12-month bot auction recorded rates rising to 4% but also good demand which eased tensions on the markets. The Btp auction for 4,5 billion is expected tomorrow. The Btp-bund spread closed close to 472 basis points, down from 474 at yesterday's close. The Bono-bund differential was under tension, closing at 526 basis points.
On the government bond front, the decision by Pimco, the world's leading bond investor, which reduced German government bonds to a minimum, draws attention in its portfolio due to fears related to the debt crisis: with the increase in risks Germany loses quality, is the thesis of Pimco, the federal budget of the German state risks being heavily damaged by the significant commitment in the European bailout funds .
The European stock exchanges, after a volatile day, closed with contained declines compared to the lows of the day: Milan is the worst among the main European markets and closed down by 0,65%, Frankfurt -0,14%, Paris -0,55% while London closed up by +0,18%. Madrid rose by 1,42% still under the effect of the bailout of the banks. Wall Street opens lower on disappointing macro data on retail sales and producer prices, despite last week's 18% jump in mortgage applications. At the close of the European markets, the Dow Jones dropped 0,08% while the Nasdaq rose by 0,25%. The euro recovered slightly against the dollar to 1,258.
At Piazza Affari the banks resist: Bper + 1,85%, Ubi Banca +1,20%, Bpm +1,10% Unicredit +0,59% while Intesa closes in the red -0,10% and Mps at -4,01 to 0,1843 .XNUMX at historic lows after being suspended in the volatility auction. The institute is grappling with the need to recover fresh resources to strengthen its capital ratios to comply with EBA requests without resorting to a capital increase. Mps counts on selling the stake in Biverbanca "in the short term", said CEO Fabrizio Viola. But it is unlikely that we will be able to get to other sales (such as Antonveneta branches, real estate, Consum.it) in a short time and so it is probable that we will have to resort to the issue of Cocobonds (hybrid bonds) on which, Viola said, the Viola bank is thinking. Cocobonds for analysts would be dilutive to earnings per share. The new business plan will be presented on 26 June.
Highlights General which one hour after the closing kicks into gear and closes up by 3,01%, best stock of the Ftse Mib. After the go-ahead of the painful Premafin shareholders' meeting for the capital increase reserved for Unipol, the holding leaps at the start by 5% with suspension in the volatility auction and then closes at -0,43%, Fonsai rises by 2,84% and Milan by 0,78%.
Industrialists are down with Fiat Industrial selling 2,68%, Fiat 2,46% and the Exor holding which scores – 5,03%. But Pirelli also lost 3,44% after Morgan Stanley found that volumes are not improving. Among the worst Prysmian -3,56%.
However, the worst stock on the Ftse Mib is A2A -5,70%. Today the president of Iren, Roberto Bazzano, said that there are no dossiers open at the moment on the merger with A2A, a hypothesis relaunched by Bruno Tabacci, councilor for the budget of the Municipality of Milan, for the creation of a large utility in the North. Parmalat is also bad -3,68%.
Fly instead Telecom Italia Average +6,84% on the green light for the sale of Telecom Italia and in the wake of several suitors who are allegedly studying the dossier, from the L'Espresso group in Cairo, but also foreign companies such as Al Jazeera, a Qatari broadcaster, and CCTV (Chinese broadcaster).
