DEEP RED ON THE MARKETS
BTP-BUND SPREAD CLOSE TO THE HIGHESTS FROM THE EURO
Stock markets plummeted the day after the Fed meeting. The alarm over the risks to the economy and the disappointment with the measures announced by the Central Bank with the "Twist" operation cast a decisive pessimism on the world markets. The ax of the rating agencies on banks also weighs on the lists, in particular the US Bank of America, Wellfargo and Citigroup. After last night's closure in the red on Wall Street, the European indices archive another day of marked declines: the Ftse 100 drops 4,67%, the Dax 4,96%, the Cac 5,15%. In Italy, while the clash over the government's step backwards continues, the Ftse Mib drops by 4,52. The Treasury today revised its growth estimates downwards, which this year will stop at 0,7% and next year at 0,6%.
In the morning, the spread between ten-year BTPs and the bund rose to 413 with a yield of 5,84%, a level close to the highest level since the introduction of the euro, to return below 400 in the afternoon. The spread of the Spanish Bonos moves above 361 points. "It is very difficult to ask Italy for more on the fiscal front", EU Commissioner Olli Rehn commented today, adding that structural reforms in Italy are "important" and can boost growth. Meanwhile, the cost of insuring against the default risk of Italy, Spain and Germany is growing, reaching a new record of 105 for the first time above 100 basis points. For Italy, with a 5-year maturity, the cost is 550 basis points, up by 20. For Spain, with the same maturity, the cost is 450 basis points.
NO TO RECESSION IN EUROPE
BRUSSELS DOESN'T LOOK ABOUT ATHENS
On fears of an economic slowdown, oil dropped to 81,59 dollars a barrel in New York while the euro fell to 1,3382 against the dollar. Meanwhile, consumer confidence continues to decline in the data released by Brussels: the European Commissioner for Economic Affairs, Olli Rehn, from Washington, where the G20 work is about to begin, does not foresee a new recession for Europe, even if the reduction of growth estimates is "worrying" due to the high unemployment rate. Rehn also rules out both the hypothesis of a disorderly default and an exit from the euro for Greece.
For the US Treasury Secretary, Timothy Geithner, the European crisis is a threat to the American economy: "the stakes for us in solving the European crisis are high" but he says he is confident about the agreements reached to resolve the crisis that the IMF has the potential to favor. On the Greek front, tension remains high: yesterday evening the Greek executive announced a new series of heavy corrective measures. Brussels does not say too much about the announced measures and refers the judgment to the responsibility of the Troika for which the date for the return to Athens has not yet been decided which should however be next week.
In France, where banks have come under market scrutiny for exposure to Greek debt and sparked liquidity fears, BNP Paribas CEO Baudouin Prot has officially denied rumors of ongoing talks with Qatar over a state investment Arab in the bank. The banker also declared that the hypothesis of carrying out devaluations on Italian government bonds is not being considered at this stage.
INDUSTRIAL SALES
FIAT PAYS THE MOODY'S CUT
In Piazza Affari, fears of a slowdown in global growth hit Tenaris hard, which leaves 8,87% and Saipem (-8,22%) in the field, despite the new contracts in recent days in Canada, Nigeria, Angola and Arabia Saudi. Strong sales also on Pirelli (-8,27%) and Exor (-6,41%). Fiat Industrial fell (-5,73%) and also Fiat (-4,55%) hit by Moody's rating cut to Ba2 from Ba1 while news arrives from the USA that Chrysler and the Uaw trade union have decided to extend the second time the employment contract expiring yesterday to continue negotiating a new agreement.
In the auto sector, bad news also for Landi Renzo (-7,63%, Star) whose rating was cut by Exane to underperform from neutral. Sales also on energy: Eni sells 5,28% and Enel 5,10%, which however saves itself from the ax of Standard and Poor's which confirms the rating, albeit with an outlook confirmed as negative. On the other hand, Terna's credit rating is reduced to A from A+, which however drops by a modest 1,53%. Edison was also bad (-3,35%) on the day in which the top management of A2A examined the plans for the Edison reorganization: take over Edipower entirely controlled by Edison with its own resources or return to the original plan of March. The decision of which path to follow in the negotiations with the French will have to be taken in the supervisory board on 28 September.
MEDIASET GOES OFF
CAIRO ADVERTISING RISES
Mediaset drops 6,98% after S&P equity research cut its rating to sell. Cairo Communication closed down by 1,60%. Advertising sales strengthened, above all thanks to La7 (Ti Media). Based on the order backlog as at 21 September, revenues for advertising broadcast and to be broadcast on the La7 and La7d channels in the third quarter rose by 38% to €30,8 million, while those relating to the Cairo group titles and licensed increased by approximately 8% to 9,6 million euro.
SALVATORE FERRAGAMO,
NO NEW PLACEMENTS
Salvatore Ferragamo (-8,96%) denies the press rumors that would have attributed to the company the desire to proceed with a new placement to reassure investors and denies the existence of joint venture companies in Brazil or Russia
BPM STILL SUPPORTED BY THE DUAL
UNICREDIT LOSES 6,27%
The banks that have been downgraded by S&P following the decision on Italy's rating limit the reductions. Mediobanca, which saw its long-term rating cut to A from A+, closed around parity with a slight decrease of 0,09% following the annual results (year ended 30 June 2011). Intesa Sanpaolo closes down by 1,5%. The bank led by Corrado Passere is among the seven institutes, together with three of its subsidiaries (Banca IMI, Cassa di Risparmio di Bologna and Biis), which have had their rating cut to A from A+.
In the red Unicredit (-6,27%), Ubi (-4,20%), Banco Popolare (-2,46%), Mps (-5,96%). Countercurrent and best stock of the Ftse Mib, Banca Popolare di Milano which rises by 4,88% in the wake of the revision of the institution's governor towards the dual system. Next Tuesday the board of directors is called to deliberate on the new govrnance and on the capital increase (which should settle at 900 million out of 1,2 billion in the initial hypotheses).
