Bull returns to the arena, from Madrid to Tokyo, driven by various positive signals, starting with the indications of the director general of the IMF Christine Lagarde: "we will see upward growth in the world economy" he declared in Nairobi. closed, the US Beige Book could provide an initial confirmation of the positive trend. In the meantime.
In Tokyo, the Nikkei index +1,15% one hour after the closing is starting to close for the first time in 2014 in positive ground: the next quarterly campaign should report a 270% growth in profits
Brilliant Wall Street: the S&P500 index rises by 0,61%, the Dow Jones +0,64%, better than the Nasdaq which rises by 0,96%. Google's leap +1,6% should be noted: the Mountain View giant has announced the birth of the Open Automotive Alliance. The commercial agreement involving GM, Honda, Audi, Hyundai and the chipmaker Nvidia aims to bring Google's Android operating system to the car's instrumentation. The first car born should be an Audi.
In Europe, Frankfurt and Paris recorded +0,83%, London +0,37%. But the real note of the day concerns the redemption of the peripheral price lists of Europe. The day was marked by the leap in Madrid (+3%), but also by gains of more than 2% for Lisbon and Athens. To complete the picture of a session lived in the sign of the banks, the +1,22% of Milan also arrived, promoted by a report by Intermonte.
At least four factors (improving macroeconomic scenario, political scenario in flux, strong liquidity, attractive valuations both with respect to interest rates) play in favor of the increase. The negative elements concern the worsening of the fiscal position and banking regulation.
BTP, BONOS AND THE DUBLIN CHARGE
The rally was triggered by the excellent performance of government bonds, starting with the return to the Irish markets. The Dublin government has placed bonds for 3,75 billion euro (the amount initially offered was 3 billion) against a request of 14 billion. The return was 3,54%. Robust demand confirming the debt appetite of the lowest rated countries.
The yield of the ten-year BTP fell to 3,87% with the spread at 198 (-4 basis points).
ELECTRIC BANKS THROUGHOUT EUROPE: BPM +8%
Everywhere, in Milan as in Madrid, London and Paris, purchases have concentrated on banks. The Stoxx European banking sector index rose by 3%. In Milan, the race is led by Banca Popolare di Milano, which gained 8% on the day in which the supervisory board, the first under the presidency of Piero Giarda, met to start the process for the appointment of the new management board , expected for next January 14th.
As for the choice of the new CEO, there is still no significant news even if the work seems to be in an advanced stage. Giuseppe Castagna, formerly of the Intesa, remains in pole position but Fabio Innocenzi, current number one of UBS Italia and Eliano Lodesani, general manager of the Cassa di Risparmio del Veneto are also in the running. However, a sensational return is not excluded, that of Fabrizio Viola, today in Mps.
Unicredit gained 3,4%, Intesa +3,2%, Banco Popolare +5,5%. Bper rose by 5,42%, Mediobanca by 5,28%. MontePaschi +2,7%: the Antitrust Authority has approved the sale by MPS of the back office activities to the joint venture formed by the Florentine group Bassilichi (60%) and Accenture (40%).
Also in Madrid the strongest increases are from the banks: BBVA +5,3% and Santander +3,7%. In Paris SocGen +4%, BnpParibas +2,9%. In Frankfurt Deutsche Bank rose by 3,1%.
ENEL AND GENERALI, THE BIG BIG PROVIDE
The big names take advantage of the excellent market structure of the debt towards Italian companies. Generali successfully placed a 6-year, fixed-rate senior bond issue for a total amount of 1,25 billion. The issue - specifies a note from the Trieste group, aimed at institutional investors - was completed 'in less than two hours' and received an application from over 500 primary investors for 9,4 billion, 7,5 times compared to the target.
Enel+1,2% mandated a pool of banks to prepare the issue of a 61-year hybrid bond in euro, callable after six. Enel will also issue a hybrid bond in sterling, maturing in 2076, callable from 2021. Both issues will be launched this morning for an amount that should be between 1,5 and 1,7 billion euros. Eni +0,4%, A2A -0,8%.
FIAT RETURNS TO MOODY'S
Fiat under fire instead -1,6%: Société Générale confirmed the Sell rating. In the meantime, Moody's announced that it had placed Fiat's Ba3 corporate family rating under review with a view to a possible downgrade. "We place Fiat's ratings under observation for a downgrade - explained Falk Frey, Senior Vice President of Moody's and chief analyst for Fiat - because the announcement of the acquisition will significantly weaken Fiat's liquidity at a time when the company still has negative free cash flow.”
Having said that, we believe that the cash remaining on Fiat's balance sheet, the unused lines of credit and the cash flow generated by the operations should be sufficient to allow the group to meet its cash needs in 2014.
StM -1,5 also fell among industrialists, downgraded from Barclays to Underweight from Equal weight.
TELECOM IN THE RALLY, UNIPOLSAI STOP
TelecomItalia's rally continues with the stock gaining 4,1% on bets on the future of Tim Brasil, which could be sold. The independent directors ask that all possible offers on the Brazilian group be evaluated in advance.
UnipolSai is the worst stock with a drop of 6% due to profit taking after the strong rally of Fonsai before the debut of the new group on the stock market.
PUBLISHING, FIRST MOVE BY RCS TOWARDS THE PRESS
Strong rise of Mediaset +5,6% and of all publishing titles in general. Rcs leap +7,9%. The company in via Solferino will manage the advertising revenues of the Press. Mondadori +5,4%, Espresso +4,7%.
