FROM DRAGHI (AND DUBLIN) A LITTLE COMFORT TO THE MARKETS
CDP AND FSI APPOINT FINMECCANICA AND SNAM
At the European level, discussions are underway “to find a way to make recourse to the ESM for the direct recapitalization of banks possible”. The said the president of the ECB and the European Systemic Risk Council, Mario Draghi, responding to questions from MEPs on the possibility that the permanent bailout fund could also be used to resolve the most urgent cases of difficulty in the banking sector. But to describe the current situation, the ECB president used words that are as effective as they are disturbing: “In many countries and for many governments, the situation is for those who are crossing a river and have to face very strong currents. He's halfway across the ford and continues to go forward even if he doesn't see the opposite bank because there's too much fog”.
Il Draghi's message returned some optimism to the European stock exchanges after yesterday's sharp drop. In Milan, the FtseMib index rose by 1,2% to 13026, London rose by 0,83%, Paris +0,81%, Frankfurt +0,52%.
Even today i pre-election polls they play an important role in the mood of the market: yesterday the price lists trembled because the Syriza party, which wants to re-discuss the agreements with Brussels, is once again in the lead in Athens. Today the stock markets are recovering because, again according to the polls, the referendum underway in Ireland will end with the approval of the fiscal compact.
THEeuro it is recovering slightly to 1,240 against the dollar, from 1,236 yesterday. Among the macro data, the German data on the trend of consumption in April stands out, up by 0,6% on the previous month, better than expected (+0,2%). Data on employment trends in the USA are expected in the afternoon.
Sul government bond market, where no auctions are scheduled today, the ten-year BTP is slightly improving with a yield down to 5,86%, from 5,93% yesterday. Spread at 458 (6 basis points down).
After last night's fall (-3,2%), the crude this morning is stable with the wtf at 88 dollars a barrel and the Brent at $ 103,5.
In Milan after the agreement to sell the Cassa Depositi e Prestiti 30% of Snam, Eni advances by 2,22%, Snam goes up by 4,44%.
Positive Finmeccanica +1,63% that will sell 14% of Avio to the FSI fund when the aircraft engine company will be listed on the Stock Exchange (by 2012).
Fiat down 0,7% and Fiat Industrial advanced by 2,01%: on the latter, JP Morgan raised the target price to 9 euro. Exor gains 0,4%.
Good upside for StM +2,3%. Positive morning for the banks: Unicredit +0,6%, Intesa +0,7%, Ubi +0,6%, MontePaschi +0,9%.
It still goes down Banca Popolare di Milano -0,7%. "The management of the banks must be correct" and where inconsistencies emerge "we work for appropriate changes of top management and the collaboration with the judicial authority is intense". AND' what the governor of Bank of Italy said, Ignazio Visco, in his report to the annual meeting speaking of the banks' commitment to curb the interference of crime, he added off the cuff this passage on the need for correct management or a change of top management.
It doesn't stop the descent of Mediaset -2%.
