THUD IN ASIA. FOR FITCH SPAIN ALMOST "JUNK". GHIZZONI LAUNCHES THE ULTIMATUM TO THE LIGRESTI.
The push from China, which surprisingly cut the discount rate, was not enough. The stock market rally ended in the afternoon after Ben Bernanke's speech to the US Congress. The Fed president has not made commitments for a new "quantitative easing" but, he said that "we are ready to intervene if the European crisis precipitates". The Fed is watching closely the possibility of "significant risks" to the US recovery, which could stem from the debt and banking crisis in Europe.
Meanwhile, a new cold shower was arriving from New York: the Fitch agency reduced Spain's long-term rating by three notches to 'BBB' from 'A', while its short-term rating was downgraded to 'F2' from 'F1'. Madrid is one step away from junk bond status, i.e. the obligation for most funds to dispose of non-investment grade securities. For Fitch, the rescue of the Spanish banking system will absorb at least 100 billion.
This morning the Asian lists recorded the negative news. Tokyo is starting to close in deep red with a drop of more than 2%. Hong Kong is doing better -0,45%.
Wall Street indices closed lower yesterday evening, erasing the day's gains: Dow Jones +0,37%, Standard & Poor's -0.01% and Nasdaq -0,48%. Yields on T bonds are falling again on the wave of disappointment with Ben Bernanke's speech to Congress.
A difficult end to the week is thus looming also for European stock markets, after yesterday's positive session in the wake of Beijing's intervention, the first since 2008. In Milan, the FtseMib index rose by 0,88%, London rose by 1,2% ahead of Frankfurt + 0,82%: Paris +0,42%. The rally was favored by the better-than-expected outcome of the Spanish Bonos auction: Madrid placed 2,07 billion euros of government bonds against a target of 2 billion euros.
The spread between the BTP and the Bund touched a low in the morning at 415 basis points and then recovered to 427. The yield is 5,63%. The placement of the BTP Italia saw subscriptions of almost 1,74 billion, the result of 44.688 contracts. The guaranteed annual rate is confirmed at 3,55% already announced on June 1st. The euro fell this morning, trading at 1,2521 against the dollar, from 1,256 the previous year.
The strongest increases in the European stock exchanges yesterday concerned the sectors most linked to the economic cycle: automotive (Stoxx +2,9%), raw materials (+2,7%) and banks (+2,2%). A particular note concerns the luxury sector, driven upwards by the stellar profits of Prada: +110% to 121,7 million. Even the cut in the Chinese discount rate, one of the sector's reference markets, has galvanized the entire luxury team: Luxottica + 2,5% Ferragamo + 4,7% Tod’s +1,4%. In flight Brunello Cucinelli +8% and Yoox + 6%.
It has risen among the Milanese blue chips Mediobanca, up 3,9% after statements by Vincent Bolloré who said he was ready to increase his stake in Piazzetta Cuccia by buying Groupama's share, in case the French insurance company decides to sell. Among the other banks they go up Pop.Milano + 1,6% Ubi + 1,7% Popular bank advances 1,2%, Understanding + 0,7%.
In asset management, second day of strong increases for BancaGenerali +5%. It cannot be excluded that the earthquake in Trieste may have repercussions on the subsidiary.
Meanwhile, Standard and Poor's put the rating of .into a creditwatch with negative implications Generali due to the uncertainty caused by the change of CEO which takes place 'in a difficult context'. In a note, the agency indicates that the removal of Giovanni Perissinotto from office and the proposal to appoint Mario Greco as successor is an event that has caused uncertainty about the future strategic direction of Generali and could prevent the company from reacting quickly to strategic challenges '.
Spotlight on the board of Premafin this morning who will have to examine, first among the top management of the Ligresti galaxy, the latest proposal arriving from Unipol. The boards of directors of Fonsai e Milan Insurance. Then there will be, on the 12th, the Premafin meeting on the 2011 budget and the 1,1 billion euro capital increase reserved for Unipol. It is the most delicate passage: either the Ligrestis renounce their liability and the right of withdrawal, or the operation fails. The consequences? The ad of Unicredit , Federico Ghizzoni, was clear yesterday: "If necessary, we will enforce the pledge" or 35% of Fonsai as a guarantee of the debts.
The winds of peace with Cdp are good for Telecom Italy + 1,6%. Mediaset salt by 0,7%. Among the industrialists, they go up Fiat Industrial +2,7% and Pirelli +2,4%. positive Finmeccanica +1,7%, preceded by Prysmian +3,2% and StM + 2,6%. The agreement with Gallimard for the sale of Flammarion gives wings to Rcsmedia Group +23%: the hypothesis of a capital increase is out of the question.
In view of the July 12 meeting of Impregile it the decision of the Roman group to present a complaint to Consob on the relationship between the shareholders and on the "anomalous" performance of the share in the last few sessions must be recorded. The hypothesis raised by the Salinis would concern a possible agreement between the shareholder Igli (Gavio family) and other Impregilo shareholders, while as regards the performance of the share on the Stock Exchange, which has been very volatile for some time, it is found that in the last few sessions there significant trading operations.
