THE FED AND ATHENS HOLD BACK EUROPEAN EXCHANGES ON MILAN PESANO BANKS AND LIGRESTI GROUP
European stock markets down sharply after the Federal Reserve reduced its growth estimates for the US economy and made no mention of further economic stimulus measures. In Milan, the Ftse Mib index fell by 1,68% (Ftse/Mib index at 19658) with widespread declines among blue chips. London falls by 0,6%, Paris and Frankfurt lose 0,8%. Yesterday at the end of the two-day meeting of the Monetary Committee, the Fed announced that interest rates will remain at their current level, between zero and 0,25% for an extended period of time. The recovery of the economy is slower than expected and the Fed has revised downwards the forecasts on the development of GDP for 2011, which is now indicated at 2,7-2,9%, from the previous indication of 3,1-3,3, 600%. Employment is not growing as the authorities had hoped, however the Fed confirmed that at the end of June the extraordinary program of financing the economy worth 2 billion dollars called Quantitative Easing 199 will end. unemployment benefits and on new home sales in May. A reason for caution for investors is also given by the expectation for the European Union summit today and tomorrow which will be dominated by the Greek question, although formally not on the agenda. On the government bond market, our ten-year BTPs suffer with the yield spread with the German Bund widening to 195 basis points, from 2,50 yesterday evening Once again Milan is the place most affected by the decline due to the significant weight of banks in the lists. This time, in particular, Piazza Affari suffers from the negative start of the increases by Fonsai and Milano Assicurazioni which are also reflected in Unicredit (-4,08%). Mps yields 0,552% at 3,79 euro, Bpm 1,548% at 3,67 euro, Ubi Banca 3,88% at 3,30 euro, Banco Popolare 1,58% at 3,17 euro, Intesa SanPaolo the 1,80% at XNUMX euros..
CAPITAL SUPPLEMENT FOR LARGE BANKS BASEL 3 COMMITTEE DECISION TODAY
The Basel Committee is meeting today to decide on the status of banks capable of causing systemic risk (SIFI): the body should confirm for these credit institutions the obligation of an additional capital buffer. Separately, the Association of Italian Banks announced that in May loans to households and businesses grew by 6,3% compared to the same period of the previous year. Gross non-performing loans rose by 1,2 billion euros compared to the previous month, reaching 95 billion euros. Non-performing and problem loans reached 2,59% of total loans from 2,54% in the previous month.
FONSAI/MILAN BRUSCA REVERSE AT THE START RAIN OF SALES FOR DISCOUNTED INCREASES
In this context, one of the most difficult operations of the season gets underway: the raise/bailout of the Fonsai group which, thanks to the intervention of Unicredit, will serve to replenish the company's solvency margins. The recapitalization, at a heavy discount, has received the green light from the authorities. Of note is the commitment made with the Antitrust to sell the 1% held in Generali and the various "limits" set to limit the consequences of the Unicredit-Fonsai-Mediobanca-Generali plot. Fondiaria Sai lost 6,7% to 4,15 euros. This morning the company announced that it had received the green light from Consob for the 450 million euro capital increase: the new shares will be issued at a price of 1,5 euro, with a 66% discount on last night's closing price and a 39,6% discount on the theoretical price before the detachment of the option right (Theoretical ex right price, or Terp). The new Fondiaria savings shares will be issued at 1 euro from 2,64 euro at yesterday evening's close. The option ratio was set at 2 new ordinary or savings shares for each ordinary or savings share held. The option rights will be negotiable from 27 July to 8 July. The slowdown for Milano Assicurazioni was even more abrupt: -12% to 0,68 euro. The company controlled by Fondiaria-Sai has announced the details of the 350 million euro capital increase. Milano Assicurazioni will issue a total of 1.357 million (7 new shares for every 3 held for ordinary and savings). The offer will start on June 27th until July 15th. The price of the new ordinary shares is equal to 0,2574 euros. The discount on the Terp (theoretical price of a new share after the detachment of the dividend) is approximately 37%.
NEW BPM LANDSLIDE. DOUBTS OF THE CONSORTIUM TOWARDS THE MEGA MEETING OF 6 MEMBERS
Meanwhile, the consortium for the 1,2 billion euro capital increase would have asked for guarantees on the discount on the price of the capital increase and on the bank accounts in order to proceed with the subscription of the commitments and yesterday there would have been a meeting with the general manager Enzo Chiesa for more details on the Bank of Italy's observations. To date it would seem that 6.000 members will participate in the meeting. the deputy general manager of the Bank of Italy, Anna Maria Tarantola, said she was in favor in a speech in the Senate to raise the limits on share ownership of popular companies, encourage participation in shareholders' meetings with increases in proxies and teleconferences, increase the weight of investors institutions also by reserving them the appointment of one or more members of the board of directors.
ADREANI: ADVERTISING MARKET BELOW FORECASTS BY -4/5% AND NEW DISCOUNTS ARRIVE FOR MEDIASET STOCK
MediaseT still down (-5,47%). The decline was triggered by the declarations of the managing director, Giuliano Adreani, who in a meeting yesterday evening with some investors, outlined a weak picture of the advertising market. “The market is in a difficult moment – said the manager -. Expectations for the end of the first half of 2011 are between -4%/ and -5%. For Mediaset we expect better results than those of the market, even if the total advertising sales will be slightly negative”. This trend should also be confirmed in the second half of the year, Adreani added. These indications are a downward revision compared to the previous indications provided to the market by Mediaset, which in May said it expected slight growth for the whole of 2011.
FULL ENERGY. CITI PROMOTES SNAM (+1%) EEMS (+3,5%) SWITCHES ON MAXI-PHOTOVOLTAIC SYSTEM
Eems (+3,5%) went against the trend at 1,17 euros after the announcement of the connection to the grid of one of the largest photovoltaic systems on roofs. The plant, with a power of 3,8MWp, has an economic value of 11 million euros and was built by Kopernico, the joint venture between Solsonica, an EEMS subsidiary that produces photovoltaic cells and modules, and the designer Espe. The plant was built in Cuneo on the industrial roofing of AGC Flat Glass, a multinational company among the world leaders in the glass sector. The fully integrated photovoltaic roof occupies an area of about 21 square meters. The construction of systems on roofs represents a pillar of Solsonica's future development strategy, which aims at the construction of photovoltaic roofs on civil, industrial and commercial buildings, a segment for which the Fourth Energy Account has defined incentives 10-15% higher than those land-based installations. Solsonica in 2011 should generate a turnover of 93 million eu equivalent to a production volume of 93MWp compared to 64MWp in 2010. Snam Rete Gas rises by 1% to 4,054 euros. The stock rose after Citigroup raised its recommendation to buy from hold and increased the target price to 4,6 euros from 3,75. In the study, Citigroup underlines the growth expectations of Snam's profit, which operates in a regulated environment as owner and manager of the Italian gas transportation network. Citigroup says strong dividend expectations make the stock undervalued.
