NERVE BAGS WAITING ON WALL STREET
LANDSLIDE IN MILAN: -0,25%, FOR FONSAI -5,3%
France and Germany are once again arguing over the Stability Fund. And the European lists are affected: Paris -0,39% London -0,27%, Frankfurt 0,01. The damages were also limited by Piazza Affari (-0,25% Ftse/Mib index at 15.292) thanks to the good stability of bank stocks. Banco Popolare scores +2,63, Intesa Sanpaolo +2,18% (Corrado Passera confirmed the 2011/13 targets), Unicredit +1,33%. Still on the shields Bpm (-2,15%) while the consultations on the lists for the new board continue. In evidence Terna +1,89, after the promotion of Barclays and Saipem (+1,85%) rewarded by JP Morgan.
Sharp loss for Fonsai shares (-5,3%) after the profit warning launched at the request of Consob. Fondiaria-SAI has announced that, on the basis of the information available to date and the current trends of the financial markets, it considers it reasonable to believe that the group net result envisaged in the 2011 budget for an amount exceeding 50 million euro will not be achieved. By confirming the hold rating and the target price of 1,7 euros, Deutsche Bank analysts underline the probable acceleration of the sale of non-strategic assets. The cut in Valourec's targets also penalizes Tenaris: -3,92%. Among the minor stocks, Zucchi's performance was clearly highlighted: +14,90%. The company owned by Gigi Buffon has concluded the expected agreement with the creditors.
PARIS AND BERLIN DIVIDED ON THE SAVE-STATE BOTTOM
FT: RBS ALSO MUST BE RECAPITALIZED
According to Handelsblatt, Paris does not want to place intervention constraints on the State Rescue Fund, while Berlin insists that maximum quotas be set for each individual country and precise time limits to repay the loans. The match will be tackled at the summit between the two heads of state over the weekend dedicated to the intervention plan on the banks which will then be filmed in Brussels. Presentation date: next October 17th.
Meanwhile Standard & Poor's has downgraded Dexia's rating while Franco-Belgian talks are still underway to strengthen the institute's capital. On the other hand, Moody's scissors hit the Portuguese banks and, above all, the English ones. The international rating agency has announced that it has downgraded the rating of 12 UK lenders. Ratings downgraded by one notch on Lloyds TSB Bank (to A1 from Aa3), on Santander UK (to A1 from Aa3), Co-Operative Bank (to A3 from A2), while Rbs and Nationwide Building Society were cut by two steps, to A2 from Aa3. Not only. Seven other smaller British lenders saw their credit ratings drop by one to five notches. "The move is linked to the review of support for these institutions by the British authorities," explained Moody's. Furthermore, the online edition of the Financial Times reveals that Cameron's government could inject new capital into RBS as part of European efforts to recapitalize the Old Continent's banking system. The bank, already saved in 2008, would complain of a tier 1 below the guard levels.
