The negotiating thread between Athens and its creditors has snapped. Yesterday the IMF delegation announced that there are still wide differences with Athens and that the technical negotiations for an agreement guaranteeing new financial support to the country have been interrupted. "There are large differences between us on most of the key issues," said Fund spokesman Gerry Rice. "There hasn't been any progress recently that has narrowed these differences and so we are a long way from an agreement." Bild writes that Germany has launched "serious consultations" to decide on the first measures in the event of Greece's default.
Given the situation, it is legitimate to expect a hot day on the stock markets, already in fibrillation in view of the Fed meeting of 16-17 June. But the performance of the Asian Stock Exchanges does not betray particular tensions. The slight gain this morning the Tokyo Stock Exchange, supported by the rebound of the dollar. Slight positive movements also on the other lists in the Asia Pacific area. After the upward start, Wall Street suffered the effects of the Greek drama: the Dow Jones index reduced its rise to 0,25%, the S&P500 to 0,2% and the Nasdaq to 0,11%.
TURNOVER IN TWITTER, MURDOCH LEAVES TO THE CHILDREN
Good macro data raised the odds of a Fed rate hike in September. In detail, the weekly requests for unemployment benefits stood at 279 thousand units (275 thousand units the consensus), import prices in May marked an increase of 1,3% (+0,8% consensus) and retail sales grew by 1,2%.
On the corporate front, the resignation as CEO of Dick Costolo, one of the founders of Twitter, victim of the lack of revenue growth of the social network, is significant. Powers pass to Jack Dorsey, another veteran of the company. Rupert Murdoch, 84 years old, has decided to hand over the role of number one to his son James next year, supported by his brother Lachlan.
MILAN +0,3% AFTER A ZIG ZAG SESSION
Zigzag ending for the European price lists: a sharp thud after a session marked by robust increases, then a last-minute recovery to much lower levels. In Piazza Affari, the FtseMib index closed with an increase of 0,3%, after rising by about 1,5% until mid-afternoon. The Frankfurt and Paris Stock Exchanges also reduced their gains to +0,6% and +0,7% respectively. The Athens Stock Exchange finished the session with an 8% rise led by the recovery of the banks which received a another breath of fresh air from the ECB. But the cold shower coming from the International Monetary Fund came later.
The euro weakened against the dollar rising to 1,124, from 1,132. On the government bond market, yields on ten-year BTPs fell to 2,14% from 2,24% yesterday, as did those of the German Bund to 0,88% from 0,98%. As a result, the spread remains unchanged at 125.
BAD LOANS THE BANKS AWAIT THE PADOAN REFORM
Roller coaster day for Italian banks. In the middle of a positive session, awaiting the fiscal measures promised by the Minister of Economy Pier Carlo Padoan, the cold shower of the break on Greece arrived.
Unicredit thus closed with a rise of 0,3%. The CEO Federico Ghizzoni said that the project on restructured loans between UniCredit, Intesa Sanpaolo and Kkr has started: the American group is already contacting customers with potential restructuring proposals.
Understanding +0,5%. The bank is not interested in acquiring Julius Baer, CEO Carlo Messina said yesterday, adding, still on the subject of M&A, that the bank is willing to enter into negotiations for the sale of the Ukrainian subsidiary Pravex but at the moment there are no buyers.
An HSBC report favored the rise of Ubi (+1,6%), promoted to hold from veteran with a target price of 6,82 euros from 6,12 euros and Banco Popolare +0,92% buy from hold and the target price at 17,03 euros from 13,36 .0,9 euros. On the other hand, Pop.Milano was negative (-0,93%), although promoted by the broker to hold as a veteran with a target price of 0,80 euro from XNUMX.
Final sprint for the increase of MontePaschi. The stock experienced a free-range day yesterday with an increase of up to +6,2%, then reduced to +2,6% in the final, thanks to the fibrillation over Greece. Some US funds have accelerated purchases, in view of a possible entry into the bank's syndicate agreement. From the launch of the capital increase on 25 May to date (the negotiation of the rights was concluded on 8 June) the MPS share has lost around 10%.
Carige. Standard & Poor's removed the institution's rating from the negative credit watch, assigning a new stable outlook.
ENEL GREEN POWER THE BEST BLUE CHIP
Enel Green Power was the best blue chip with a gain of 2,8%, to 1,7840 euros. Unfortunately, however, the performance since the beginning of the year remains a disappointing +3% which places it among the worst in Piazza Affari (FtseMib +22%). This morning Equita rewarded yesterday's novelties in South Africa, confirming the Buy recommendation with a target price of 2,30 euros. The group has been awarded two contracts in South Africa for the supply of energy from wind farms, for a total investment of around 340 million euros.
On the other hand, the Oil&Gas sector conditioned by the decline in crude oil (Brent at 65,34 dollars -1,5%, Wti at 60,37 -1,73%) contrasted: Tenaris -2,8%, Eni +0,18% . Stable Saipem (+0,1%). Citigroup raised its recommendation to buy from sell and the target price to 12,6 euros from 8 euros. Analysts see great earnings potential, think EPS could reach 1 euro per share by 2018, that the company could win tenders worth 12 billion in the next 7 months and reach a 3% dividend yield in the medium term. However, Citigroup also expects a capital increase of 2,5 billion.
FCA, BERNSTEIN DOES NOT EXCLUDE TAKEOVER OFFER FOR GM
Fiat Chrysler advanced by 1,3% on rumors that, rejected by General Motors, the company would now be studying a possible marriage with Peugeot, which gains 2,5% on the Paris Stock Exchange. While awaiting plan B, Mediobanca Securities raised the group's target price from 16,4 to 17 euro, with an outperform rating. Bernstein's Max Warburton report instead focused on the hypothesis of a hostile offer for GM by Fiat Chrysler, difficult to hypothesize given the different capitalization. "The only possibility would be a card-to-card offer which, in order to have any hope of success, should be very dilutive for FCA shareholders".
Finmeccanica (-1,3%) and Exor (-1,3%) are down.
