A few days before the deadline, 12 creditors have joined the operation debt swap with Athens. But if the desired quota is not reached, Greece is ready to use collective action clauses, potentially triggering, according to Isda rules, the payment of CDS. Word of Evangelis Venizelos, Prime Minister of Greece. "Greece – he said in fact – in the absence of voluntary adherence to the debt swap plan, is ready to use the collective action clauses which would automatically impose losses on creditors". “With near-universal membership there is no need to activate collective action clauses. But these clauses exist in our legal system, and we are ready to implement the legislative provisions if necessary ”, he added.
The dance on Greece's default and the chill that came from China triggered sales on the Stock Exchanges which, although recovering from the morning, closed in the red. The Ftse Mib dropped by 0,68%, the Dax by 0,79%, the Cac by 0,39% and the Ftse 100 by 0,61%. Even Wall Street travels in negative territory at the end of the European markets: the Dow Jones loses 0,60% and the Nasdaq 1%. Positive US data were not enough to change the mood of the operators. The Ism services index rose to 57,3 points in February from 56,8 points in January, with a better-than-expected result. The euro is just above 1,32 while oil is at 106,80 dollars a barrel.
In China Premier Wen Jiabao it lowered its growth target to 7,5% from 8% in 2012. Things do not seem to be going well in Europe on the growth front: in February the Eurozone composite PMI fell to 49,3 points from 50,4 points in January, a figure worse than expected. Then there is the "surprise" Spain that it will not be able to meet the deficit reduction objectives established with Europe. The deviation from Spain's deficit target is "serious", said Olli Rehn's spokesman, recalling that a deviation of 2% was communicated in November and has now become 2,5%.
The markets are now looking towards the appointment of Thursday 8 March with the decision on the ECB's rates, even if the expectations of the operators favor an unchanged cost of money, after last week's maxi injection of liquidity in favor of the banks.
SPREAD, ITALY-SPAIN DUEL
ECB, NO BOND PURCHASE FOR THE THIRD CONSECUTIVE WEEK
The challenge between Spain and Italy continues on the spreads. After the brief overtaking on Friday, in the morning the spread rises to 320 but soon triggers the reverse to 311 points. Italy thus scores a new overtaking of Spain whose differential was traveling at 315. At the close of the markets, the Btp-bund spread was quoted around 311 with a yield of 4,93%. The descent of the spread on theDraghi Monti effect it is even more evident if we consider that last week the ECB did not buy government bonds on the secondary market for the third week in a row. Tomorrow the Eurotower will drain 219,5 billion euros to sterilize the excess liquidity generated by the Securities Markets Program launched in May 2010.
BANKS IN RED
PREMAFIN, HEAD OF INSTITUTIONS ON THE UNIPOL OPTION
I'm in Piazza Affari weaken the banks: Bper -3,08% , Bpm -2,10% among the worst but also Unicredit, Intesa Sanpaolo, Banco Popolare and Ubi Banca are in the red. Mps fluctuated, however, closing against the trend with an increase of 0,28%. For Repubblica, Claudio Sposito would aim to acquire a 4% stake through Clessidra Sgr. Day of meetings also for the other financial issue of the moment: Fondiaria Sai (-4,75%). Today took place the meeting between Premafin (+1,89%) and the creditor banks to examine the debt restructuring plan of the holding company as part of the Unipol proposal. There doesn't seem to be an alternative proposal on the table that came from Palladio-Sator as March 8 approaches, the last day to adhere to the offer of the Arpe-Meneguzzo axis.
FINMECCANICA, LOSSES BETWEEN 1,9-2,5 BILLION IN VIEW
FIAT DENIES CLOSURES IN ITALY
Finmeccanica closed the session in the red by 2,91%, the last stock of the Ftse Mib. The group announced the postponement of the board of directors for the approval of the 2011 accounts from March 14 to 27. Analysts, as reported by Repubblica, expect a loss of between 1,9 and 2,5 billion. Again according to the newspaper, it is possible that a phase of change at the top of the group could begin in the spring, with Franco Bernabè and Vito Gamberale in contention to take the place of Giuseppe Orsi. In fact, Bernabè enjoys the great esteem of Monti and the American administration, but his move to Finmeccanica appears highly problematic and unlikely less than halfway through his Telecom presidency.
Reassurances arrive from Turin on the front of the production plants in Italy of Fiat group (-0,86%). ”I spoke to Sergio Marchionne and John Elkann. I had the reassurance from both that the press reports about the closure of factories in Italy are groundless,” said Minister Elsa Fornero. Statements shortly after followed by an official press release from Lingotto. "There is no plant closure plan in Italy," the group said. Today Consob announced that UBS holds 2,006% of the capital
BENETTON DELISTING STARTS
LUXOTTICA, AT THE ROAD SHOW FOR THE NEW BOND
This morning Consob approved the Holding edition document for the Benetton delisting (-0,99% to 4,60 euros). The financial holding company of the Benetton family has launched a tender offer at 4,60 euros per share (dividend included), with an acceptance period between 5 March and 30 March.
Instead, the Luxottica European road show (-0,15%) for the new 500 million bond for institutional investors. Last stop on Friday in Milan and Frankfurt.
