MPS TRIUMPHS, SALES FILLING ON TELECOM ITALIA
M&A WARMS UP WALL STREET, SAD TANGO IN BAIRES
Ukraine, Iraq and yet another crisis in Argentina. The cocktail of geopolitical tensions weighs on the stocks already prudently waiting for the incoming messages from the Fomc, the monetary committee of the Fed which will meet in a few hours.
The quotations of the crude remain at the highest levels of the last nine months (106,7 dollars a barrel). The yields of T bonds are also under pressure (2,593% on ten-year bonds), a traditional refuge in hot times.
Therefore they decrease Asian bags (Asia Pacific index -0,3%) but Tokyo +0,5% recovers part of the lost ground on Monday. However, Wall Street holds the dam: Dow Jones +0,03%, S&P +0,08%, Nasdaq +0,24%. Frankfurt closed down 0,29%, London 0,34%, Paris 0,73% and Madrid 0,95%.
Piazza Affari closed the session down by 0,86% to 21.976 points. The spread between the BTP and the Bund closed at 154 basis points and the domestic 2,89-year rate settled at XNUMX. Sigmar Gabriel, Social Democrat Economy Minister in Angela Merkel's government, declared himself in favor of giving more time for debt and deficit reduction to those countries that make concrete commitments on the reform front.
M&A FEVER EXPLODES ON WALL STREET
To support US price lists the positive signals coming from the economy, in recovery after the winter frost, contributed: the Empire Manufacturing index of the New York rose much more than expected in June. US industrial production in May was also better than expected.
Even more important is the effect of the M&A wave that swept the US market yesterday. Summary: Medtronic announced the acquisition of Covidien +22% for $42,9 billion. Williams Companies climbs 18,7% on the wave of the acquisition of Access Midstream Partners for 5,99 billion dollars. Level 3 Communications – 5% bought tw telecom +7%.
Finally, Fusion-it flies +23%, preyed on Sun Disk for 1,1 billion dollars). "Such a market - Rockwell Investment manager Peter Cardillo comments to Reuters - cannot go down for geopolitical reasons".
TANGO BOND: ARGENTINA MUST PAGARAE. AND THE BAG COLLAPSES.
The slowdown in Argentina will certainly not affect Wall Street, provoked by the ruling of the Federal Court of New York. The judgments, against the advice of the White House lawyers, confirmed that Buenos Aires will have to face the payment of the Tango bonds that defaulted in 2001.
A total of 15 billion which could lead to another bankruptcy of Argentina: the Buenos Aires Stock Exchange has lost 10,1%. It is the final victory of Paul Singer, the hedge manager who sued Argentina eleven times before yesterday's triumph: for the first time a judge has agreed with a vulture fund against a state.
Cristina Kirchner Fernandez's reactions against the sentence were harsh, but the president added that Buenos Aires "will honor its obligations". It is not known how given that the credit of Paul Elliott alone is worth more than half of Argentina's reserves.
MPS SUPERSTAR, CARIGE ON THE ROLLER ROLLER
Monte Paschi is once again the best stock of the Ftse Mib: +21,34% to 2,212 euros, while the rights associated with the capital increase rose by 1,61% to 18,29 euro: at these prices, by buying 5 rights, 214 new shares can be subscribed at 1,427 euro each, with a discount of approximately 35% compared at the current share price. The volumes were very high: 43 million pessi, far above the average of the previous sessions (24 million). The promotion collected by Exane Bnp Paribas contributed to supporting the quotations of the share, which raised the rating from underperform to neutral. The French broker had been negative about Siena since April 2011.
Banca Carige recorded marked volatility on the first day of the 800 million capital increase, ending trading up by 0,86% to 0,165 euro (intraday low at 0,159 euro and high at 0,1819 euro), while the rights lost 8,2% to 0,2172 euro. Volumes were high: 40.762.428 shares and 77.612.791 shares changed hands.
All the other banks were down: Pop.Emilia-3,5%, Unicredit -1,3%, Intesa Sanpaolo -1,5%. Banco Popolare -2,7%. The tender for the sale of Release, the bank's bad bank, which contains assets of around 3 billion euros in real estate, unsecured and mortgage loans and non-performing real estate loans, is in full swing. Yesterday the deadline for submitting offers expired and two proposals arrived on the table of the advisor Equita: that of Blackstone and that of the Fortress-Prelios consortium. Azimut lost 2,9%, Mediolanum -1,7%.
AFTER TELCO, THE MARKET FEARS A RAIN OF SALES
Black day for Telecom Italy, which finished down 4,2%, the session's worst blue chip. After Generali, Mediobanca and Intesa have also communicated that they will exercise the option to exit telco, the holding company that owns 22,4% of Telecom Italia. From June 30, the shareholders of the box will have six months to make the demerger effective, i.e. to directly hold Telecom shares and Telco debt in their hands, which between bridge financing and loans is around 2,4 billion EUR.
Yesterday Piazza Affari started betting that in a short time the Italian shareholders could start selling their shares in Telecom, bringing home the capital gains (which at today's prices are 35 million for Intesa and 110 million for Mediobanca, compared at budgeted prices). However, it is not yet clear what Telefonica will do, which could in turn ask for the spin-off by the end of the month, or could remain as the sole reference shareholder of the box. On the Madrid Telefonica Stock Exchange it fell by 0,6% to 12,48 euros.
CAIRO AND COBRA At the TOP, GTECH AT THE LOWEST
Positive protagonists of the day were two medium caps. Cairo Communication rose by 3,3%., the only participant in the auction for TV frequencies, which presented a binding offer for the 20-year rights to use the multiplex indicated as lot L3, where it intends to broadcast the channels La7 and La7d, today on TI Media frequencies. Cairo has already signed an agreement with Ei Towers to build and manage the new network. Cobra automotive rose by 49,34% to 1,474 euros, a value close to the price of the takeover bid announced by Vodafone at 1,49 euros. INTEK, the reference shareholder of Cobra, also rose sharply (more than +10%) GTech, on the other hand, fell – 2,5% to 19,18 euros, the lowest in the last 12 months. The company yesterday announced talks to buy International Game Technology, a Las Vegas-based slot machine maker. At Friday night prices, IGT boasted a market cap of $3,9 billion. The market suspects that GTech will have to resort to a capital increase to acquire the prey. World Duty Free +0,8% is among the best blue chips: Deutsche Bank has started hedging the stock with a Buy recommendation and a target price of 12 euro (upside +20% approximately. Atlantia +0,5%.
KEPLER DOESN'T SHOCK UTILITIES
Kepler Chevreux dedicated a study to utilities in view of the next phase of consolidation of the municipal companies, But the market remained cold: Acea lost 1,08%, Iren 0,24% at 1,226 euros. Only Hera rose by 0,48% to 2,1 euro. A2A almost completely eliminated the gains of the session (high at 0,8980 euro) ending just above parity at 0,8805 euro. For Kepler - Cheuvreux the company could play an important role in the consolidation process of the Italian utility sector: hence the promotion to Buy from hold with a target price of 1 euro from 0,9 euro before Eni closed unchanged, Saipem+0,4, XNUMX%.
INDUSTRY SLOWS DOWN: FIAT AND FINMECCANICA DOWN
Weak industrial values. Pirelli lost 2,56% to 12,16 euro: the Bicocca group paid today the ex-dividend coupon of 0,32 euro per share. Fiat was also down - 1,10% to 7,62 after the approval of the board of directors of the project for the merger by incorporation of Lingotto into Chrysler, with the new company to be set up in the Netherlands. The meeting will probably be convened by July. Prysmian -1,8% and Finmeccanica -1,6% also down. Among the luxury companies, Brunello Cucinelli lost 3,4%, Tod's -1,2%. Yoox closed unchanged.
