BUSINESS PLACE RUNS. THE SPREAD DOWN TO 427 bps. MERKEL OPENS TO PURCHASES ON BTP AND BONOS
The Milanese indices accelerate, leaving behind the rest of the European stock exchanges which are confirmed to be more cautious. The Ftse-Mib rose by 1,48% to 13.644 points followed by Madrid which advanced by 0,98%. The rest of the European indices are less euphoric: London +0,17%, Frankfurt +0,13%, Paris -0,27% in negative ground.
On the government bond market Btp improves with yield falling to 5,83% (from 5,88% last night) and lo spread with the Bund is reduced to 427 (8 basis points down). The euro is up at 1,27 from 1,267 against the dollar.
The Milan indices are supported by the items reported by The Guardian of a go-ahead from the German chancellor Angela Merkel the Italian proposal to make use of the EFSF bailout fund to buy government bonds.
Here is what the British progressive newspaper writes: “Angela Merkel is ready to allow the use of the 750 billion of the eurozone bailout fund to buy the bonds of countries affected by the crisis, in a desperate effort to lower costs for Spain and Italy and thus prevent the collapse of the euro. Germany has long opposed using EFSF resources for this purpose. Fearing that in the end Berlin would pay the bill while the beneficiary countries could use this escape route to escape the austerity already imposed on Greece, Portugal and Ireland.
But Germany succumbed to pressure after Spanish debt costs soared to unsustainable levels. For now, Merkel's spokesman has limited himself to saying that "no decision has yet been taken".
If European support arrives for our BTPs, the benefits will be considerable for the balance sheets of the banks, which are all on the rise today. MontePaschi it rose by 4,44% also in view of the imminent sale of the subsidiary Biverbanca. Popular Milano earns 2,35%, Banco Popolare + 2,35%. Unicredit salt by 1,32%, Understanding + 1,75% Mediobanca + 5,54%.
With the banks, insurance rises: Generali +1,87%. It stands out among industrial stocks Ansaldo, up 3,37%. The parent company Finmeccanica earns 4,12%, StM +1,1%. Positive too Fiat +2,09% and Fiat Industrial + 0,92%. Pirelli + 1,18%.
It strengthens Saipem +3,04%, supported by Mediobanca's decision to raise the recommendation to performer da neutral. Oil is down with the WTI traded at 83,8 dollars a barrel (-0,2%). Tenaris + 1,96%.
Eni 0,2% salt. The six-legged dog launched a new bond this morning, dedicated to institutional investors. The operation, managed by Banca Imi, Deutsche Bank, Rbs, Societe' Generale and BBVA should pay a premium of 210-220 basis points on the midswap, funding should close in the late morning. The increase of continues today Enel Green Power + 2,24%.
After the good numbers of Inditex (Zara) does not betray the expectations even the Scandinavian Hennes & Mauritz (+2,56%). Fly to Dublin AirLingus (+24%), driven by the offer of Ryanair (+0,43%), which put 694 million euros on the plate to take over the carrier, already 29,8% controlled.
