Deadline for submissions is today at 21pmjoining the Greek swap. Are we at the tipping point, as indicated yesterday by Charles Dallara, chief negotiator for the Institute of International Finance (IIF)? For now, the markets seem to believe it. THE European lists yesterday they returned to breathing, even Wall Street closed with a plus sign, supported by the positive data on US employment in the private sector. The Nikkei jumped 2,01% in Tokyo today, with a final rally to 9.768,96, benefiting from a weakening yen after Japan posted a record current account deficit, the highest since 1985.
EYES TO THE GREEK SWAP
The turning point came with the increase in membership of the swap from 39% to 58% involving 30 major private institutions and also the majority of Greek pension funds. Among the Italian institutions, Banca Generali, Intesa SanPaolo and Unicredit have joined. But attention remains high because it is necessary to reach a threshold of 90%. Otherwise Greece has threatened that it will not pay the international law bonds while it will use the collective action clauses for the Greek law bonds, effectively forcing them to join the swap. An event which, according to the rules of the ISDA, would trigger the payment of CDS. From Germany it is the German development bank Kfw, owned by the federal state, to suggest prudence: the signs seen so far on the international financial market - said the president - suggest that private individuals will not participate sufficiently in the debt swap Greece, effectively paving the way for default.
It arrived last night the appeal of the EU Commissioner for Economic Affairs, Olli Rehn: “It is important that all investors recognize that Europe is committed to full available funds to this voluntary (Greek) debt swap and that full participation is needed for the Greek (reconciliation) program to go ahead”, said Rehn who added: "A contribution, that of private individuals, which is indispensable to ensure the future sustainability of the Greek debt", "decisive to the financial stability of the euro area as a whole".
S&P PROMOTES ITALY
For S&P, however, a failure of Greece is difficult: "Although it is one step away from the abyss, the possibility of it going bankrupt is difficult," reassured John Chambers, director of sovereign debt at Standard & Poor's. But it is from Standard & Poor's that surprisingly came an appreciation for Italy which still yesterday led the increases of the European markets (The Ftse Mib +1,12%, the Cac rises by 0,89%, the Dax by 0,57 .100% and the Ftse 0,44 by 2012%). "If we look at what Italy has done in just a few months, we can only be surprised," said chief economist Jean-Michel Six. “316,7 will be a very dangerous year -he added-, we have to see what will happen in the emerging markets but I don't want to give a too gloomy image: there are also positive situations like Italy”. Yesterday the spread closed at 4,94 points with a yield of XNUMX%. The ECB's interest rate decision is also on the agenda today.
CHINA TOWARDS THE INTERNATIONALIZATION OF THE YUAN
China reports the Financial Times intends to extend loans in renminbi to other BRIC countries to take another step forward in the internationalization of its currency. The China Development Bank will sign a memorandum of understanding in New Delhi with Brazil, Russia and South Africa and will make loans available in renminbi and not only in dollars with the aim of boosting trade between these countries and promoting the use of the currency for international trade instead of dollars
THE INCREASE RISK IS REMOVING FOR THE BANK
PREMAFIN ASKS FONSAI'S DIRECTORS TO RECONSIDER THE INCREASE
A Business Square the banks are rebounding after yesterday's sharp declines. Popular bank it shines with +7%, after a report by Equita Sim placed the emphasis on a lower risk of capital increases. Thanks to the improvement in the spread, the market is betting that the situation can improve for those institutions that need to strengthen their capital by June to comply with the EBA diktats. Bpm rises by 4,74% and Mps by +3,60%. In Siena, the Foundation obtained the formal go-ahead from the Treasury for the sale of the bank's share package. Unicredit also did well +3,14%, where the match is being played for the candidate to succeed Dieter Rampl. The summit between the shareholder Foundations and a meeting of the governing committee took place in Piazza Cordusio and the task of sounding out the mood of the shareholders is entrusted to Federico Ghizzoni. Among the names circulating, there are two economists such as the former president of Borsa Italiana, Angelo Tantazzi, and the former president of ENI and IRI, Gian Maria Gros-Pietro.
Whirlwind of meetings also for Premafin which leaps by 8,42%. The board of directors of the holding was held yesterday and confirmed that it had asked the directors of Fondiaria-Sai (+5,20%) to evaluate the possibility of reducing the capital increase announced by 1,1 billion on the basis of an update solvency margins, thanks to the positive trend of the markets and the good operating performance of Fondiaria Sai in the first few months of the year. Premafin has also given a mandate to the accountant Ezio Maria Simonelli, together with Bocconi professor Stefano Caselli, for the certification of the reasonableness of the restructuring plan of the finance company currently being prepared and has extended the assignment to Maurizio Dallocchio also to assist in the process of impairment test and evaluation for financial statement purposes of the direct and indirect investment held by the financial company in Fondiaria Sai. Dallocchio had already mandated the assessment of the exchange ratios of the proposed merger with Unipol and the adequacy of the issue price of the approved Premafin capital increase.
Today, however, the proposal expires Matteo Arpe of Sator and Roberto Meneguzzo of Palladio, who were seen leaving one of Palladio's Milan offices, and who urged Premafin to take a formal position on the offer.
