IN THE PRECIPICE. ALL MARKETS BELOW BETWEEN 3 AND 4%
THE BTP/BUND SPREAD HAS BROKEN THE 400 BP DAM
The morning of passion for the Stock Exchanges continues in sharp decline. In Piazza Affari, the FtseMib index fell by 3,18% to 13.671. In the rest of Europe the losses exceed 3 percentage points: London -3,6%, Paris -3,8%, Frankfurt -3,5%. All the main lists follow the heavy fall of Wall Street, conditioned by the Fed's analysis which shows that there are "significant downsizing risks". Euro down sharply against the dollar to 1,352, close to the lows of the last seven months and the lows of the last ten years against the yen at 103,4.
The fear of an economic slowdown is depressing the prices of raw materials, starting with oil: WTI crude oil traded this morning at 84,2 dollars a barrel, down 2%. Brent at 108 dollars -1,5%). Eni drops by 2,7%, Saipem -3,4%. Tenaris was also very impressed at -7%.
Meanwhile, the fever on the peripherals rises. The bund future jumps to 138,5 points, close to the historic highs of a few days ago at 138,91, while the yield on the German ten-year bond shrinks to 1,70%. The BTP/Bund spread jumped initially to 415 basis points, close to the all-time record (416), to then return to 407, against 391 yesterday, after the ECB took action. The yield of the BTP 10 rose to 5,84%.
CARS AND OILS UNDER FIRE. BANKS IN DECLINE
BPM FEVER EXPLODES: +6%, ARPE IS CLOSER
The discounts are spread across the entire price list. Among the blue chips, the greatest losses concern Fiat -3,85%, Exor -6,15% and Pirelli -5,31%. The downgrading of S&P and the landslide of government bonds in the portfolio translate into an overall contained decline (given the times) for the banks. Intesa loses 2,3%, Unicredit -2,2, Mediobanca -1,4%. Surprisingly, on the other hand, the Banca Popolare di Milano share jumped by around 6%, just a few days before the board which will have to approve the new governance next Tuesday and start the recapitalization (900 billion is the expected figure).
It is not difficult to hypothesize that behind the increase there is the tug of war over Matteo Arpe's entry into the position of managing director within a governance that provides for a clear distinction between the management and supervisory boards, without those interdependence constraints that emerge from the Ponzellini plan, not appreciated by the Bank of Italy.
The Insurance Supervisory Institute (ISVAP), according to some advances, is about to extend the "anti-crisis" accounting decrees, approved last February 11, on the basis of which insurance companies can continue to neutralize the negative impact deriving from the to-market on government securities for the purpose of calculating the solvency margin.
Nevertheless, Generali loses 3% on the day of the executive committee meeting. Fondiaria Sai is down by 4,31%. Despite Citigroup's “buy” Campari -2% and Autogrill -3,4% also lost ground. The "sell" recommendation for Mondadori (target lowered from 2,45 to 1,5 euro) is confirmed by the 2,47% loss.
