BTP ITALIA BREAKS ALL RECORDS, SPREAD TO 311
CHINESE GDP DOES NOT DISAPPOINT. EVEN TOKYO IS BOOMING
Solo an uncertain outcome of the summit of EU heads of government, scheduled for today and tomorrow in Brussels, could cloud the "forecasts of the weather" on the financial markets, oriented towards stable beauty. On the table is the delicate issue of banking supervision, a key step in kicking off interventions in Spain and unblocking the Greek solution.
The markets, however, have already made their judgment. The BTP/Bund spread drops to 311, yields on ten-years slip to 4,80%. And, via the Internet or bank branch, today the charge of one hundred thousand is expected. There could be many subscribers of the Btp Italia, judging by the boom in orders. After the more than 5 billion raised in the first two days of the market, yesterday the BTp Italia managed to catalyze subscription requests for a further 5,1 billion euros. Thanks to the over 45 orders subscribed, requests for the new BTP Italia expiring in October 2016 exceeded 10 billion euros, overtaking the result obtained with the first placement (7,2 billion). Today is the last day of subscriptions.
ASIA
The bull dominates the Asian price lists: Tokyo +1,88%, Hong Kong +0,60%. Shanghai too +1%. Many factors contribute to the rally: the good news from Europe and the USA; the prospect of new Japanese stimuli to weaken the strong yen to the advantage of exports. But, above all, no negative surprises emerged from China's third quarter GDP.
"A relatively good figure." With these words Wen Jiabao, the outgoing Chinese premier, summarizes the data for the third quarter. GDP growth was 7,4%, (against 9,3% a year ago) in line with forecasts. For the seventh consecutive quarter, therefore, the Dragon is at a standstill. But both consumer sales data and industrial production numbers point to a recovery in the cycle starting in early September. In short, the worst seems to have passed even if economists expect an "L" shape for the second world economy.
AMERICA
After a weak start, the American Stock Exchange recovered and the S&P500 index rose by 0,48%, the Nasdaq rose by 0,04%. The Dow Jones -0,03% is lagging behind.
The excellent data onconstruction activity in the USA, which jumped in September to the top of the last 4 years with a 15% growth in new construction sites for home construction, surpasses the disappointing data of some tech giants, after the disappointing results of IBM and Intel. IBM falls 4,3%, Intel loses 2,4%, Cisco -1%, Dell -1,7%.
Among the banks, Citigroup is still positive up 2% after the turnaround at the top. Bank ofAmerica opened lower but immediately recovered and is now gaining 0,7%: the second largest US bank closed the third quarter with a net profit of 340 million dollars, down 95% year on year. Earnings per share are zero, but analysts were expecting a quarterly loss. After the Stock Exchange, eBay's better-than-expected accounts were announced, driven by the excellent results of Pay Pal. However, the stock lost 0,4%.
EUROPA
The fiesta started from Madrid (Ibex +2,3%) which celebrated Moody's decision not to downgrade Spain and leave the rating unchanged at an “investment grade” level. The market witnessed a vibrant recovery of the bonds of peripheral countries.
Positive too other European Stock Exchanges: London +0,6%, Paris +0,7%, Frankfurt +0,2%.
THEeuro it strengthened against the dollar to 1,312 from 1,305 at the end of yesterday evening and reached the highs of the last month, not too far from the April levels.
Lo ten-year spread between the Spanish Bono and the German Bund it narrowed by 43 basis points to 379 basis points. The Italy-Germany differential fell by 25 basis points to 311, the lowest since mid-March.
ITALY
La Milan Stock Exchange ended the third consecutive session on the rise: the FtseMib index rose by 1,5%, returning to the levels of a month ago.
Mediobanca +5,3% leads the credit rally ahead of , Intesa +2,8%, Banco Popolare +3,2%, MontePaschi +4,7%.
In great evidence the insurance: in particular Fondiaria Sai gained 4%, Unipol +2,7%. Carlo Cimbri, CEO of the Bologna-based company said that the asset disposal program will continue despite disputes with the antitrust.
Generali rose by 2,1%.
Among the industrialists good rebound of Fiat, up 3,6%, while Fiat Industrial [FI.MI] posted a more modest 0,6% increase. StM accelerates + 3,6% despite the disappointing data of the giants of the chip sector, starting with Intel.
Sharp reduction of Impregilo -4%, which announced the sale of 23% of the Brazilian company Ecorodovias, with gross proceeds of 900 million euros. Meanwhile Igli, a 29,96% shareholder of Impregilo, announced that he is considering taking the action for liability against the current directors for the "sale of a significant share of the investee Ecorodovias at a price lower than the stock market price" and secondly "for the strategic agreement between Impregilo and Salini contrary to the interests of the company and the shareholders and solely to Salini's advantage".
Luxottica +0,63%. The eyewear giant is at the center of controversy in the US after an episode of "Sixty minutes", a very popular TV show in which the company was accused of the prices of its eyewear, which had skyrocketed thanks to the substantial oligopoly of the brands Scuderia Del Vecchio (Rayban, Persol, Oakley etc), which can count on the control of the main sales chains, such as Sunglasses and Lenscrafter. The president of Luxottica Usa Andrea Dorigo had to write a long letter addressed to all the customers of the group, i.e. to the department stores and the network of shops that buy Luxottica eyewear, to rebut the accusation of having created an abuse of dominant position on the market.
