ASIA AT A MINIMUM, CAPITALS RUN ON T BOND AND BUND
DRAMATIC FRAMEWORK FOR THE "PRIMA" OF IGNAZIO VISCO
It is difficult to imagine a more dramatic setting for thedebut of Ignazio Visco who today, for the first time, will read the Final Considerations at the assembly of Bank of Italy.
Il heavy thud of the Asian Stock Exchanges, which are about to close the worst month since 2008, is the last piece of a dramatic picture: a Tokyo the Nikkei index closes at -1,64% , Hong Kong to -1,23%. In April, the combined capitalization of global stock markets fell by $6 trillion.
The downturn has not spared Wall Street: index Dow Jones -1,28%, index Nasdaq -1,17%, lo S&P even -1,43%. Impress the fall of Rim -10%. The Blackberry company has warned that the current quarter will close in the red and announced that it has recruited two advisors (JP Morgan and RBC) to evaluate new partnerships and business models.
Last evening the central bank of Brazil decided to cut rates to 8,5% at the historic lows for the country. The goal is to revive growth, which fell to 2,7% (against 7,5% last year),
The most sinister sign is, probably, the race for “safe havens”, i.e. the new minimum records of yields on German Bunds at 10 years (1,27%) or ten-year US, slipped 1,62%. The alarm does not spare the euro, which is in full retreat: the single currency has dropped below the psychological threshold of 2010 for the first time since 1,24 July 1,2378. The single currency this morning was traded at 1,2438 (XNUMX yesterday's reading by the ECB).
In reverse, gold is in full retreat: 1562 dollars an ounce.
Oil also fell sharply: the Wti future trades at 88,3 dollars a barrel (-3%). Brent fell to 103,3 dollars, -3,2%, on its lowest since December 20th.
This morning the Italian treasure completed with some difficulty theauction of 5-year and 10-year BTPs. Yields climbed to their highest since January. The 5,90-year yield rises 464%, back in the red alert zone, while the spread with the Bund has recovered to XNUMX basis points. The most worrying were the allotment rates of the five-year terms: 5,66%, ever closer to those of the ten-year terms, confirming that the curve is flattening with shorter maturities (the two-year term has risen to 4,4 %), because the effect of Ltro has worn off. A phenomenon that combines with the new flight of foreign investors from BTPs and corporate bonds: around 200 billion from April to today.
They multiply the contacts between the big names. Among the initiatives a phone call from Barack Obama to Mario Monti e a tough stance by former German chancellor Gerhard Schroeder towards Angela Merkel's policy.
Meanwhile the prospect of a collapse of the Greek situation is increasingly tangible. What dampened the residual hopes of investors was the release of a survey on the elections of 17 June in Greece: according to this survey, the anti-European party Syriza is in the lead with 30% of the votes, in second place is New Democracy with 26,5, 24,5%. During the afternoon, another survey was released which places the two formations on a pair at XNUMX%.
Euler and Coface have suspended the disbursement of export credits to Greece.
Signals of comfort instead from Brussels where, by the mouth of the cCommissioner for Economic and Monetary Affairs Olii Rehn, the European Commission has declared itself ready to give Spain additional time to recover from the budget deficit below 3% of GDP if it presents a solid budget for 2013 and 2014. Europe has also opened up the possibility of direct interventions in the capital of banks by the anti-crisis funds of the euro area to deal with the crisis that is affecting some of the main Spanish banking groups.
Fiat Industrial +1% was the great protagonist of the session in Piazza Affari. Yesterday the company announced that it had proposed to the board of directors of the subsidiary Cnh to evaluate the benefits deriving from a potential integration through the merger into a new holding company incorporated under Dutch law. Exor instead it finished down by 1,2%.
Pirelli closes at – 3,5% , Fiat -5,1%. Below also Prysmian -3,3% and Tenaris -3,6%.
In Business Square it fell there Banca Popolare di Milano -4,8%. The Piazza Meda institute announced yesterday that it will not pay the coupon on two of its bonds. Also down sharply People of Emilia -3,6%. Positive Banco Popolare +1,1% and Unicredit + 0,2%.
Tough day for Generali which lost 3%.
The utilities also suffer: Enel -2,8% Enel Green Power -3% A2A -2,8%. The Board of Eni has today decided that it will sell a stake of 30% less one share of the voting capital of Snam -1,1% a CDP at a fixed price of 3,47 euros per share, equal to a premium of approximately 11% compared to yesterday's closing price on the Stock Exchange at 3,1360 euros.
The total consideration, equal to approximately 3,517 billion euros, will be paid by CDP in three tranches, the first of which at the time of the closing, for a total amount of approximately 1,759 billion euros, the second by 31 December 2012, equal to approximately 879 million euros, and the third by 31 May 2013, equal to approximately 879 million euros.
Mediaset loses 3,7%. %. The luxury stocks suffer: Tod's -2,6, Luxottica -3,5%.
But she construction titles: Impregilo -4,7%, Buzzi -4,3%.
Telecom Italy it closed up 1,1%. Bernstein brought the rating to outperform from neutral this morning. Another broker, Morgan Stanley, has listed the stock as a short-term opportunity.
