THE BULL WAVE IS TRANSMITTED TO ASIA
SHANGAI UP FROM 14-MONTH LOWS
Asian stocks soar. The MSCI Asia Pacific index scores a 3,1% increase, recovering from the minis since last May 10th. The Nikkei 225 registers a leap forward of 1,99%, the Hang Seng of Hong Kong does better by +2,4%. Banks rose sharply, including HSBC +1,9%. The mining giant Bhp Billiton also rebounds in Sydney +3%. At the same time, the yield on futures on thirty-year T bonds takes the path of descent. The Shanghai Stock Exchange also recovered from its 14-month lows.
THANK YOU EUROPE, WALL STREET CELEBRATES
DJ UP 2,5%. FOR BUFFETT, A LEAP FORWARD OF 7,6
Even Wall Street believes it. The US markets experienced the most euphoric session since the beginning of the summer on the wave of confidence in an agreement on European sovereign debt problems. Standard & Poor's closes with an increase of 272 basis points, equal to 2,53%. Close behind is the Standard & Poor's 500 +2,33% and the Nasdaq +1,35%. A growing finale, favored by the depressed levels of the stock market: the price/earnings ratio of the S&P's slipped, after a decline of 13 per cent since last June, to 12,4 times, against a historical average of 16 times.
But the day's news is enough to bear witness to the extreme uncertainty and volatility that dominate the price lists: the index suffered a fall after the agencies recorded the statement by German Finance Minister Wolfgang Schaueble that "it is not the case" of increasing the scope of the State bailout fund, to then start up again after Austrian minister Ewald Nowotny said that there are "good reasons" to reintroduce loans to banks with a duration of more than six months. That is to refinance the titles of the Pfandbriefe, the German coffers that travel in very bad conditions. Citigroup and JP Morgan Chase & Co recorded a jump of 2,9%, ahead of Caterpillar and FedEx, both +2,5%, two stocks linked among the most sensitive to the economic cycle. On the shields, however, there is above all Berkshire Hathaway +7,6% after the announcement of a buyback by Warren Buffet's safe.
DEAL OF THE YEAR? T-10s RETURNED 28%
IRELAND BOOMS: 13% TO 8% YIELD
Investment in 28-year Treasuries returned a hefty 24,4%, up from the 2008% it achieved in 21, Yesterday, but T bonds were down 8,22 basis points. Good news, for once, on the European sovereign debt front. To begin with, the decline in the yield on the Irish bond continues, reaching 22% (-13,8 basis points today). In mid-July the yield on the Dublin bond was XNUMX%
Meanwhile, a new wave of selling has hit commodities. Gold loses 3% to 1.592 dollars (it had slipped to 1.530 dollars during the session), silver lost 3% to 30 dollars (it had slipped to 26 dollars). But the most marked drop concerns copper which drops by 4,1%: in one year the fall in prices is 23%, confirming the air of recession that reigns in the global economy. The euro is recovering against the dollar at 1,352
TREASURY AUCTIONS TO START FOR 24,5 BILLION
S&P TEAGLI RATES 11 LOCAL AUTHORITIES
The gap between Italy/Germany ten-year rates is narrowing, yesterday it stopped close to 379 basis points. An indication that bodes well in view of today's auction of BOTs and CTZs for 14,5 billion which will be followed on Thursday by BTPs and CCTs. The total offer will be 24,5 billion. After cutting its rating on Italian sovereign debt and that of the country's big banks, S&P revised its rating on 11 Italian local authorities, including the cities of Milan, Genoa and Bologna. For the city of Turin, on the other hand, the outlook was revised from stable to negative, while the long-term debt rating was confirmed at A.
EUROPE HAS THREE ANTI-CRISIS WILD CARDS IN HAND
TODAY SLOVENIA VOTES ON THE BAVY-STATE FUND
Europe is thinking of the unthinkable. This is how the Financial Times comments on the sudden acceleration of plans to attack and resolve the sovereign debt crisis that has awakened the financial markets. There are three directions of intervention in view of a possible summit of the premiers of the Eurozone to be held as early as October: 1) to approve, within a few days, the 440 billion endowment of the bailout fund; 2) equip the fund with a leverage effect capable of amplifying its firepower; 3) present plans for greater integration of the eurozone economies. Naturally, the first hurdle must be overcome, namely the approval of the new EFSF endowment by all members of the eurozone. So far the State-saving Fund has received the go-ahead from 6 out of 17 countries. Today it's up to the Parliament of Slovenia, tomorrow to Finland, Thursday the key appointment at the Bundestag.
THE DECISION ON GREECE SLIDES
50% DEFAULT LIKELY
Black smoke for Athens. Ecofin's decision on aid for 8 billion needed to pay salaries and pensions will not be taken on 3-4 October but at the next meeting around 10 October. Meanwhile, Athens' finance minister is visiting Germany three days after the Bundestag vote on new capital for the state bailout fund. The performance of Greek bonds discounts a 95% default.
MILAN YESTERDAY QUEEN OF EUROPE +3,3%
FINMECCANICA AND MEDIASET RUN +4,5%
The drafts of the agreement between the Big Europeans have revitalized the share lists, starting with that of Milan. After the bad start, the European markets have gained momentum. The Ftse Mib index reached a maximum of 14.337 points in the middle of the day (a level that corresponds to an increase of almost 5%), to then slow down after the opening of Wall Street to 13.673 points. Finally, another turnaround and an uphill finish: an increase of 3,3% to 14.118 points. Important gains also in Europe: Frankfurt +2,9%, Paris +1,8%, Madrid +2,5%, Zurich +1,9%. The rise in London was less extensive (FTSE 100 -0,4%), penalized by the weakness of raw materials companies: the sector index lost 0,1%.
In Milan, especially the banks took action, which could be helped to recapitalize themselves by this new highly leveraged fund. Intesa Sanpaolo +8,3%, Unicredit +6,3%, Banca Popolare di Milano +3,6%, Ubi +6%, Banco Popolare +2,9%. The increase affected the insurance companies: Generali +5,5%, Fondiaria Sai +5,7% and Unipol +5%%. Car stocks are neglected: Fiat +0,05%, Fiat Industrial -1,6%, Pirelli flat. Finmeccanica gained 2,7% also due to the news regarding its partner Boeing. Finally, Mediaset rebounds +4,5%.
BPM, BANKITALIA REJECTS THE PONZELLINI DRAFT
THE CGIL TAKES THE FIELD AGAINST PAPOCCHIO
Bankitalia's flat no to the latest draft of the Bpm statute presented yesterday by the president Massimo Ponzellini and the general manager Enzo Chiesa. In fact, the project does not give guarantees on the effective autonomy of the management board with respect to the supervisory board which the "friends" of BPM believe they can continue to control thanks to their weight in the meeting. So we worked overnight to present to today's board of directors a text, drawn up by Professor Umberto Bocchino, which can satisfy the supervisory authorities.
Yesterday Anna Maria Tarantola was explicit: at this rate the only solution is the commissioner. The isolation of the internal unions in via Meda was also demonstrated by the clear stance of the national secretary of the CGIL, Susanna Camusso: enough with Ponzellini's "game of three cards". This is what can be read in a press release signed by Susanna Camusso, together with the general secretary of the banking category, Agostino Megale, and the secretary of the Milan Chamber of Labor, Onorio Rosati. "Gattopardesque" choices that seem to want to change everything in order to change nothing will not be shared in any way", says the union, adding that, in terms of governance, "as far as we are concerned, the reference compass is based on ethics, rigor and to the transparency indicated by the Bank of Italy”.
INTESA WITHDRAWS, ROMANI RAISES THE WHITE FLAG
EDISON LEADS TOWARDS THE CONTROL OF EDF
After the resounding no by Bruno Tabacci, councilor responsible for the municipality of Milan, the supervisory board of A2A is starting today to liquidate the Zuccoli award, ie the proposal to finance the purchase of the entire Edipower from Edison. In parallel, Productive Activities Minister Paolo Romani renounces government mediation to find an Italian solution. At this point, the March agreement which provides for Edison's transfer to Edf, the retrocession of some plants to A2A and a put to the benefit of Delmi shareholders is back in the news. As in the Parmalat case, the Italian solution advocated by Giulio Tremonti proved to be unfeasible.
