STILL A RECORD FOR THE CTZ. BAGS IN FLIGHT. EMERGING PEOPLE WAKE UP, LUXURY RAISES ITS HEAD
The outcome of the Ctz auction was even better than expected. All the 2,5 billion euros have been allotted with rates falling to the new all-time low of 0,707% from 0,822% at the February auction. Demand is growing with a coverage ratio that has risen to 2,02 from the previous 1,72.
After the auction, the spread between the Btp and the Bund fell below 180 basis points (to 179 points) following the successful outcome of the Ctz auction. The yield of the 10-year BTP is 3,35%. The differential between Spanish and German ten-year bonds is 171 basis points with the Bonos rate at 3,27%.
European stocks up. In Milan, the FtseMib index rose by 0,89% to 20.989. More robust gains in Frankfurt +1,26%, followed by Paris +0,94% and Madrid +1,09%. London +0,5%. Indian stocks hit new all-time highs this morning, Brazil posted its seventh consecutive hike and major currencies are recovering after the heavy sell off immediately in the first two months.
European markets are following in the footsteps of Asian stock exchanges and Wall Street, where data on US consumer confidence and property prices contributed to the upside. Consumption in Italy is still slowing down, but less than expected.
Retail sales fell 0,9% year-over-year in January from -2,6% the previous month, economists had expected a 1,6% drop. In January, the month-to-month change is zero. Consumer confidence also rose, to its highest level since June 2011.
Recommended Mediaset +1,96% after a flying start: in 2013 the subsidiary Fininvest returned to profit even if it will not distribute a dividend. Opposed the judgments of the analysts. “Operating trends have exceeded our expectations,” ICBPI said in a statement. Even Equita, which confirms the hold opinion, speaks of Ebit above expectations and still considers valid, despite the caution that emerged in the company's conference call, the objective of creating a joint venture with Mediaset Espana's assets and opening up to an external partner.
On the contrary Credit Suisse (which confirms "outperform") expects possible profit taking on the stock while Barclays cut the target price to 3,5 from 3,65 euro confirming the "underweight" rating, Esn/Banca Akros lowered the rating to “reduce” from “hold”. Mediobanca Securities confirms "underperform" underlining, alongside the good work on costs, the high multiples at which the stock already trades and the low visibility on the advertising market.
The calmer climate on the market front favors the rebound of luxury: Ferragamo + 2,39% Yoox + 3,65% Moncler +0,95%. In Hong Kong Prada flies up by 7% scoring the best session of the year. The asset management industry rises after the results of the February collection, to the highest level since 1998. Mediolanum rises by 1,8%. Azimuth +0,08%, BancaGenerali + 0,5%.
Among the banks, Understanding salt of 1,15%, Unicredit + 0,86% Popular bank –3,09%. Retrieve Banca Popolare di Milano +2,2%. Scuderia Agnelli in evidence: Fiat gains 1,33%, Cnh Industrial +2,35%. Exor +3% rises to historic highs. Eni -0,06% is among the winners of a license for hydrocarbon exploration off the coast of Myanmar together with the Norwegian Statoil and the American ConocoPhillips. HSBC cut recommendation to Underweight from Neutral. Enel + 0,05% Telecom Italy +0,68%. Brilliant StM + 2,02% Finmeccanica + 2,53%.
