Rising opening for Piazza Affari which is trying to recover after yesterday's heavy losses. In early trading, the main Ftse Mib index rose by 0,74%, to 14.318 points.
DRAGONS IN SPAIN FACE THE RECESSION BULL. FIRST DECISION ON FONSAI TODAY. WAITING FOR FINMECCANICA
A rate cut is unlikely. The announcement of new extraordinary plans, not even two months before the second phase of Ltro, as well. But the meeting of the directorate of the Central Bank nonetheless takes on a new flavour.
The ECB enters the Plaza de Toros today. The directorate of the central bank, in fact, has chosen to meet in Barcelona, one of the epicenters of the economic and financial crisis of the Old Continent. A choice made some time ago, when it was probably hoped that, after the Greek crisis, Europe would find a positive step. On the contrary, fate wants the bankers to face an armored city (6.500 policemen), after Spain has suspended the validity of Schengen and restored border controls: another warning on what Europe risks under the pressure of austerity alone.
The latest bad news comes from Brussels: an agreement has not been reached on Directive IV which must set the Basel 3 requirements for European banks. Britain, supported by Sweden, Poland and the Czech Republic, is insisting that it can apply stricter requirements to its institutions. Germany and France oppose to avoid a bull run that also affects their banks. Try again on May 15th.
Meanwhile, the wind of recession is blowing in Europe. And this time the USA, due to the disappointing trend of employment, is not helping. The result was a very heavy day for the Milan Stock Exchange which closed the session with a loss of 2,6%. In the decline, Piazza Affari was accompanied only by the Madrid Stock Exchange (-2,5%), while Paris ended the session up by 0,4% and Frankfurt suffered a decline of 0,7%.
The Italian manufacturing sector showed the most marked fall in orders for three years now. Production and the number of employees are also decreasing, which, at a European level, has exceeded the threshold of 10 per cent. The index that measures the activity of the manufacturing sector has plunged for the ninth month in a row below the threshold of 50 points, the boundary between crisis and growth.
Negative start for the American Stock Exchange after the disappointing data on the trend of employment in the USA. In March, industrial orders recorded the largest drop in the last three years, and in April private companies created only 119 jobs, less than the 170 estimated by economists. However, the indices have recovered from the lows of the opening, Dow Jones -0,08% and S&P500 -0,25%, while the Nasdaq +0,31% has canceled the loss.
Contrasted seat on Asian price lists. The Hong Kong Stock Exchange loses half a percentage point after the decision by Temasek, Singapore's sovereign wealth fund to put large parcels of shares of China Construction Bank and Bank of China up for sale -3,7%, which reinforced fears about the solidity of Beijing's financial system. Things are better in Tokyo: the Nikkei 225 index rises by 0,31%.
On such a negative day, the art world records an absolute record. In a Sotheby's auction in New York one of the versions of "The Scream" by Edward Munch, dated 1895, was bought after a fierce battle by a still unknown buyer for 119,9 million dollars. The previous record belonged to "Nude, green leaves and bust" by Pablo Picasso, sold for 106 million in 2010.
Government bonds are under pressure starting from the ten-year BTP, with the yield rising to 5,51% and the spread with the Bund widening to 390 points (+9 points).
In Piazza Affari, the decline has raged across all sectors. Banks were hit the hardest by the sales. Fell Ubi, which lost 7,1%, Popular Milano fell by 5,2%, Banco Popolare -4,9% Understanding -4,6% Unicredit -5,6,% MontePaschi -5,1%. In Madrid Santander e bbva they lost 3,3%.
Today the Antitrust will clarify the limits of the suspension of the Fonsai-Unipol operation, clarifying what the companies can or cannot do pending the decision. The performance of the main stocks involved in the reorganization of the 'Ligresti galaxy' was substantially in line with the general price lists: Fondiaria Sai closed down 2,48% at 0,9 euro, Unipol by 3,21% to 22 euros net. Worse did the title of Milan Insurance, which lost 5,57% at a price of 0,23 euros, and above Premafin, down by 6,19% to 0,21.
The shareholders' meeting of Rcs Mediagroup appointed Angelo Provasoli as president, Roland Berger and Giuseppe Rotelli as vice presidents, while Riccardo Stilli, deputy general manager, was entrusted with the vicarious functions of the general management for the ordinary management of the company until the appointment of the new Ad. The appointment of a vice president, Rotelli, not included in the pact list, is the main novelty pending the arrival of the new CEO. Diego Della Valle's eagerly awaited pyrotechnic speech, which confirmed his intention to buy new shares, should be recorded. In the meantime, the stock is up: +5,6%.
“The hypothesis of a merger between Snam and Terna is not being studied”. Minister Corrado Passera struck down the prospect of a network society yesterday in Parliament. on the stock exchange, Snam -2,8% Terna –1,6%.
Heavy reductions also among the other utilities. Enel fell by 3,1%, A2A -5,1%. The municipal council of Brescia, in its meeting on May 7, will vote on a joint motion between majority and opposition forces on the future of A2A which plans to move the industrial and autonomous environment center to Brescia, while the energy one would remain in Milan , to overcome the dual system and to reduce the remuneration of super-managers. Now we await the response of Bruno Tabacci, councilor in Milan.
Among the few stocks that finished higher were StM +0,7% and Luxottica +3%. The first was promoted by Goldman Sachs buy at 6,30 euros. Luxottica is pushed by Bank of America which has set a target price of 31,5 euros, up from the previous 27,5 euros. In contrast too Pirelli + 2,2%.
Among the industrialists, Fiat it fell 2,1% despite Chrysler's good sales results in April. In April, the Fiat group also recovered market shares in Italy, thanks to the recovery of registrations blocked in March by the car transporters' strike. "In the worst April since 1983 as regards car sales - reads a note from the Lingotto - Fiat increases its share by 2,2% compared to the same month in 2011 (31,4%) by registering around 41 cars ”. Fiat Industrial it finished down 3,9%.
Fiat also, after six years, terminated the commercial collaboration in India with Tata. The Lingotto has decided to set up a new company that will commercialize Fiat products together with those of Alfa Romeo and Chrysler.
Finmeccanica it fell by 2,6% on the eve of the release of the first quarter 2012 accounts expected after today's board meeting. The subsidiary Ansaldo it lost 4,2%.
Backtrack by Ferragamo which fell by 6,6% after five consecutive sessions of strong increases in which it gained a total of 25%. Discount also for cucinelli -3,9%.
