BANKS, THERE IS THE EU AGREEMENT. TODAY HELP IN ATHENS
THE FED, MORE MONEY UNTIL UNEMPLOYMENT FALLS
Two big news at the reopening of the markets.
At four in the morning this morning there was white smoke in Brussels on the banking union supervision.
Meanwhile, in the US, Ben Bernanke has lived up to expectations: the Fed to replace the now expired Operation Twist, hInitiated a new $45 billion Treasury bond purchase program in addition to $40 billion a month Home Mortgage Buyback Program. The expansionary measures decided by the Fed will remain in force until the unemployment rate, currently at 7,7%, falls steadily below 6,5%
Il Quantitative Easing, already discounted, did not impress Wal Street, the Dow Jones -0,02% is practically unchanged, the Nasdaq is down 0,28%. Only the S&P climbs 0,04%
Great session yesterday in Piazza Affari. The Ftse Mib index rose by 1,15% to 15.764, closing just above the level (15.700) it was at last Friday before the announcement of Mario Monti's early resignation.
The spread between BTp and Bund ends the day in decline. In closing, the yield differential between Italy and Germany on the ten-year maturity dropped 10 basis points compared to yesterday's close and settled at 330 basis points, on the lows of the day. The yield on the Italian ten-year maturity is also down, which is worth 4,64% at the end.
There are conditions for a successful auction of 3-year BTPs and for the 2026 bonds offered this morning by the Treasury.
ASIA
Great performance of Tokyo Stock Exchange +1,75%. Three days after the early vote, the rally was favored by the sharp fall of the yen against the dollar (83,49, the lowest since March) which gives new life to companies. The general impression is that Shino Abe, favored at the polls, will take immediate fiscal and monetary measures to revive businesses.
Sitting at a small trot instead for Hong Kong - 0,14%.
AMERICA
The Fed does not see inflationary tensions on the horizon for "at least 1-2 years". Interest rates, therefore, will remain at levels close to zero until mid-2015, when Bernanke will probably have handed over the baton to his successor. After avoiding the risk of another '29.
In the US, expectations of a thaw between Democrats and Republicans on the crucial issue of taxes are rising. The President of the United States has lowered his demands for new taxes to $1400 trillion over 10 years from a $1600 trillion initial tax bill. But the distances between the parties remain large both in terms of numbers and in terms of approach to the problem: there is time until December 31st to reach an agreement capable of avoiding the economy falling into the abyss.
EUROPA
The European markets were cautiously positive: London + $0,35, Frankfurt + 0,33%, Paris +0,01%.
Here are the terms of the Brussels agreement for single banking supervision.
At the end of a very long night of negotiations it was decided that: a) the direct supervision of the ECB will apply to institutions with at least 30 billion in assets, or between 150 and 200 institutions; b) the smallest banks, starting with the German regional banks, remain under the supervision of the national authorities; c) the new regime will start in March 2014, six months after the elections in Germany; d) Great Britain obtains guarantees on the "dual regime" which guarantees the independence of countries that are part of the EU but not of the euro area.
Today the EU will unblock the financial aid promised to Greece.
The markets have already registered the novelty. The 10-year spread fell by 40 bps to 1.094 for a yield of 12,3%, the lowest since April 2011. The 30-year spread fell by 7 bps to 837 for a yield of 10,6%, the lowest since August 2011, against yields around 25/30% last summer.
ITALY
Second day of vivacity for the utility: Enel +1,2%, Enel GreenPower +2,4%, A2A +1,8%, Atlantia +0,9%.
Featured Banks: Intesa +2,1%, Monte Paschi +1,6%, Banco Popolare +2,7%. Unicredit +0,9%, Banca Popolare di Milano +2,3%, Banca Popolare dell'Emilia Romagna +3,3%.
Between the insurance, Generali +1,6%, Unipol recovered (+3,2%) after yesterday's fall.
Mediaset +5,6%, benefits from the "buy" recommendation of the American broker Berenberg: in three days, the Biscone house achieved an 8% increase.
Fiat +0,6% while in Paris, Peugeot gained 8% after announcing a tightening of cost cuts.
Bright Telecom Italia+1,6%.
Among the minor titles, Trevi +2,6% after the news of new orders, Astaldi +1,8%, Saras +3,7%.
