The market's excellent response to the announcement of the forthcoming consolidation of Chrysler's accounts in Fiat and the recovery of the banks after the losses at the beginning of the week were the keynotes of a distinct session, somewhat throughout Europe, from a sharp acceleration in last part of the day. Also thanks to some indications on the macroeconomic front. In Milan, the Ftse Mib index rose by 1,13%, more than in the rest of Europe: London (+0,29 the Ftse 100), Paris (+0,25% the Cac 40), Frankfurt (+ 0,33% the Dax index)
ON THE EVE OF THE AUCTION THE BTP-BUND SPEC IMPROVED
On the front of the crisis in the periphery of the eurozone, first of all, it should be noted that the Finnish parliament has not followed the example of Norway, which froze loans to Athens. On the contrary, the Helsinki assembly approved the support measures for Portugal. Meanwhile, from Greece, Prime Minister Papandreou reiterates his willingness to commit himself to pass the austerity measures without discounts. The result is a decrease in tensions on the bond front, as evidenced by the drop in the spread between the BTP and the Bund to 167 basis points (against 175) while the euro settles at 1,407 (against 1,4010).
On the other hand, the signals coming from the USA are contrasting. Starting with energy, where the Goldman Sachs effect still persists: the investment bank's report, which identified a new target of 130 dollars a barrel, also because the absence of supplies from the Libya prevailed over market indicators which surprisingly revealed that in May crude oil stocks in the US grew by 610 barrels while petrol reserves, 3,8 million, are at their seasonal highs. Despite these numbers, however, WTI crude oil jumped above $100.
Meanwhile, the erosion of house prices continues, albeit at a slower pace (-0,2% in March) than the previous figures. The alarm signal, however, comes from the data on orders for durable goods: -3,6 % in April, the worst figure since last October, much more pronounced than forecasts (-2,5%).
MEDIOBANCA AND CITI PROMOTE FIAT
During the presentation of the new Y 10, Sergio Marchionne revealed some steps in the integration process between Fiat and Chrysler, now 46 percent controlled: the US company will already join the Lingotto consolidation at the beginning of June; within the year Fiat (+3,26 to 7,12 euros) will rise to at least 51%, perhaps taking over the residual share of the US Treasury (which still controls 6,6%); for the listing, the opinion of the union's Veba fund will be decisive, which still holds the 45,5% that it intends to exploit in the most profitable way. In any case, Fiat holds an option, to be exercised in various tranches from July 2012 to 2016, on 40% of the syndicate.
But, more than the technical aspects, what counts is the "augmentative" effect of the value of Fiat, thanks to the purchase of Chrylser which will make it possible to compensate for the weak European demand. This is the reason behind Mediobanca's convinced "Buy", preceded by an even clearer advice from Citi.
America is also good luck for Prysmian: after the 175 million dollar contract for the cables that will connect New York to the New Jersey network, the stock rose by 1,47%.
INTESA LEADS THE REBOUND OF THE BANKS
The other strong theme, somewhat throughout Europe, was the recovery of the banks, which in recent days have heavily discounted the "Greek syndrome". Banca Intesa in particular benefited from this (+2,65) which recovers a good part of the ground sacrificed in the first two days of the capital increase. The stock closed up by 5,07% at 1,76 euros, followed by Unicredit (+2,69%), Banco Popolare (+2,50%) and Bpm (+3,91%) which did no harm the fine imposed by Consob on the top management of piazza Meda for irregularities in the placement of the 2009/13 convertible.
A negative note comes from Finmeccanica (-0,41%). In Goldman Sachs' opinion, the stock is "sell": "in our view - reads the report dedicated to the conviction sell list - Finmeccanica will have to face demanding challenges to defend profits and revenues given that the main customers are the governments of Italy, the United Kingdom and the United States”, forced, for various reasons, to cut expenses.
