Piazza Affari continues to be in negative territory at the halfway point of the day, down by 1,91%. The other markets are uncertain which, after having resisted in slightly positive territory for longer than Milan, have begun to oscillate around parity, yielding to minus signs: London -0,16%, Berlin -0,01%, Paris loses 0,28%. %. Conversely, the Asian stock exchanges of Hong Kong (+1,68% the Hang Seng index) and Shanghai (+1,55%) closed positively. Tokyo also rose to +1,39% while the yen remained close to its record against the dollar.
In the aftermath of the Stock Exchange euphoria for the EU agreement, after a slight rise (+0,47%), the Milan stock market accelerates downwards in the wake of the BTP auction results which saw yields rise at 6,06%, the record since the creation of the euro. In detail: the fifth tranche of the ten-year March 2022 was placed for 2,98 billion compared to a range between 2 and 3 billion with a yield of just over 6% compared to 5,86% at the end of September and a bid to cover (the ratio between supply and demand) down to 1,27 from 1,374.
The Treasury then placed 3,084 billion of the BTP in July 2014 compared to a range between 2,25 and 3,25 billion with a yield on the maximum since November 2000 of 4,93% from 4,68% at the end of September and a bid to cover to 1,324 from 1,365. Two out-of-issue securities were then placed: the CCTeu of October 2017 was placed at 5,59% for one billion euros on an offer of between 500 million and 1 billion; the BTP in September 2019 was assigned for 871 million with a yield of 5,81%. The spread between the Btp and the bund is running again at 375,7 basis points from 362 this morning. Also weighing on Milan since the start of the session are the data released by the EBA which ask the banks of peripheral countries to make the greatest efforts: out of the 106 billion of capital required after the haircut of the additional Greek debt calculated by the EBA, as many as 79 will be load of the shareholders of the so-called European periphery: 30 for Greece, 26,2 for Spain, 14 7 for Italy.
In terms of saving the euro, Klaus Regling, the director of the EFSF, dampened the enthusiasm for a quick intervention in support of the plan by China, already a good buyer of the EFSF bonds. As for France, it will have to recapitalize its banks for 8,8 billion, Portugal for 4,8. Even less is required of Germany, 5,2 billion. Here is that Banco Popolare, which according to the EBA will have to recapitalize for 2,817 billion, sells 6,8% and Mps, which must put in 1,5 billion, 4,88%. Unicredit is also bad (-3,19%) which according to the EBA will have to recapitalize for 7,38 billion (practically half of what is required of the 5 largest Italian banks). Intesa Sanpaolo was also weak (-0,92%) despite being the only one to have capital deemed "adequate".
Thus the fear returns that the new specter to be fought is a worsening of the credit crunch for businesses triggered by the need for banks to recapitalize, which means either to obtain fresh resources, an increasingly difficult option after the round of recapitalizations just carried out by institutions and light of market conditions, or reduce outlays. For Bankitalia, the objectives must be achieved by avoiding excessive deleveraging, in order to contain any negative impact on the real economy. The way is to limit the distribution of dividends and bonuses.
But the events of the Bpm are also dragging the index downwards which, as the worst stock in the main basket, drops 7,28%: the institute has in fact communicated the conditions of the capital increase which starts on Monday and which provide for a discount on the Terp of 40% (and not 30% as previously thought) at 0,3 euro per share for a total amount of 800 million. Bper also fell sharply (-5,37%) which yesterday published the notices relating to the public exchange offer on the minorities of the subsidiaries as part of the group's reorganization process.
Mediobanca also fell (-1,23%) after quarterly results with a profit down to 56,8 million from 127,6 a year earlier. Fiat then fell, marking the second worst performance of the Ftse Mib with a drop of 7,18% in the aftermath of results judged by shadowy operators but above all of the announcement of the conversion of privileged and savings bonds into ordinary ones. In fact, savings soar by 18,20% and privileged by 17,24%. The same thing happened for Fiat Industrial: the ordinary shares dropped by 2,50% while the savings and privileged shares shot up by 30,29 and 34,65% respectively. Now the focus is on Wall Street. Data on labor costs, the consumption deflator for September, incomes for September, consumption again for September and the consumer confidence index (final data) from the University of Michigan for October are expected from the USA in the afternoon.
