The Greek match went into extra time. Late in the evening, the European ministers agreed to postpone the Eurogroup to !3 today with the aim of reaching the longed-for agreement by the afternoon, before the summit on immigration. Meanwhile, the meetings continued during the night. The uncertainty was reflected in the financial markets.
The Tokyo Stock Exchange (-0,4%) is starting to close in negative ground after six days of rising. The other Asian markets were weak. Meanwhile, the process of modernizing Chinese finance continues, in forced stages: the administrative constraint that imposed a ceiling on the ratio between deposits and loans has been abolished. Banking stocks rise in Shanghai +0,7%, but the stock market registers a new decline.
Sharp step backwards for US indices: the Dow Jones falls by 1%, S&P and Nasdaq -0,7%. The GDP trend in the first quarter was revised upwards -0,2% (against the initial -0,7%): thus the chances of a rate hike already in September are rising. The euro/dollar ratio was stable above 1,12.
EUROPEAN PRICE LISTS IN RED: MILAN 0,6%
The news arriving from the Greek front dominated the session of the European Stock Exchanges, in constant fibrillation. At the end of the session in Milan, the Ftse Mib index lost 0,6%, after strong fluctuations. In mid-morning, the Milanese index reached a minimum of 23.240 points, coinciding with Tsipras's announcement that the creditors had not accepted the proposals sent by the country. Madrid (-0,7%), Paris (-0,24%) and Frankfurt -0,6% were also down. On positive ground only London +0,15%, outside the euro area.
The Btp/Bund spread, which rose during the day to a peak of 142 points, stood at 133 points. The Athens Stock Exchange lost 1,7%, after two days of large increases. The yield on the 2-year Greek bond rises by 1,1% to 21%.
GREECE: THE LAST ISSUE ARE PENSIONS
Pensions, but not only. The negative opinion of the Monetary Fund has provoked the last (hopefully) dissent on the agreement. In Christine Lagarde's opinion, the draft presented by Athens provides for few cuts (especially on social security) and too many taxes, with the risk of choking the economy. If there is no change, it is the institute's thesis, the situation in Athens will remain unsustainable. The only alternative would be the restructuring of Athens' debt, a solution disliked by the EU and not envisaged by the statute of the ECB.
Greece, meanwhile, is resisting: Tsipras knows that a new collapse on the pension front (after moving forward the retirement age) could result in Parliament's no. The time factor conditions the latest round: the loan with the IMF expires at the end of the month.
VENDI AT 14,9% IN TELECOM: "READY TO GO SHOPPING"
Vincent Bolloré's season begins in Telecom Italia. Vivendi, chaired by the Breton financier, announced yesterday evening that it holds 14,9% of the ordinary shares of Telecom Italia (-1,1% on the Stock Exchange yesterday). In a note from the French group which states that the new "reference shareholder intends to accompany Telecom Italia in the long term". The company chaired by Vincent Bolloré received 1,11 billion ordinary shares (8,24%) of Telecom Italia, in exchange for 4,5% of the capital of Telefonica Brasil, as envisaged in the deed of sale of Gvt to Telefonica ( operation closed on 28 May last year).
Separately, the French group, which recently acquired 1,90% of the former incumbent's ordinary shares, further increased its stake on June 22 by 4,76% for a total of 6,66%, with a total investment of the order of approximately 1 billion euros. “The entry into the share capital of a leading Italian company – continues the note – is part of Vivendi's strategy to establish itself in a country that shares the same Latin culture and identical roots”.
On the eve of the provision on broadband, once again postponed, a player enters the field who has 10 billion in cash to invest in Italy as well.
MEDIASET SALE, TODAY THE MONDADORI-RCS BOOKS DECISION
The Fininvest planet is in turmoil. Mediaset rose by 0,5%: Mediobanca Securities confirmed the outperform recommendation and the target price of 4,98 euros after the comments made by the CEO of Rai Pubblicità, Fabrizio Piscopo, who underlined a surprising increase (+9% year on year) of advertising in the month of May. Cairo Communication is also growing (+2,3%).
The Mondadori Board of Directors will meet today to evaluate the possible offer for Rcs Libri in view of the expiry of the exclusive next Monday. It is probable that the Board will give a mandate to the CEO Ernesto Mauri to proceed with the purchase proposal between 120 and 150 million. On the other hand, the sale of the R101 radio to Lorenzo Suraci, owner of Rtl 102,5, for around forty million is in sight.
Highlights in the Rai Way towers sector: Berenberg has started hedging the stock with a buy rating and a target price of 4,85 euro. For analysts, the stock market price does not reflect the upside that could derive from a potential consolidation with Ei Towers (unchanged).
FCA: GIULIA AT THE WAY. BUT NEGOTIATIONS WITH GM ARE UPWARDS
"The relaunch of Alfa is one of the most important projects of my career", said Sergio Marchionne as he presented the new Giulia Quadrifoglio in Arese, the first fruit of the industrial plan which for Alfa Romeo puts "over 5 billion euros of investments on the plate and an aggressive product plan, of which the Giulia is just the beginning”. Then will come "another seven models will follow in the next few years and in 2018 we would like to reach 400 units sold, almost six times more than last year when they were 68". And he added: "Before 2018 they will all return from layoffs to Mirafiori".
The manager, however, has acknowledged that the forcing for a merger with GM has not borne fruit. "We are a long way from any scenario involving an offer to GM shareholders", aimed at integration between the two groups, said the CEO. As regards the placement of 10% of Ferrari, Marchionne specified that the group is working and that "in a couple of weeks, an application will be presented to the SEC for the listing of the shares on Wall Street".
The operation will be completed within the year, according to the group's forecasts, not before 12 October, while the spin-off of the company is expected at the beginning of 2016, which will deliver a Ferrari share to all FCA shareholders. In the morning Goldman Sachs revised the target price of the stock downwards from 20,1 euros to 19 euros. The investment bank confirmed its buy rating, considered by analysts "the best choice in the European automotive sector, the stock with the greatest upside potential".
THE CARIGE INCREASE CLOSES (-5,4%). UNDERSTANDING, THE CHINESE ARE COMING
Tensions on the Greek front marked the day for the banking sector. Only Ubi Banca rises (+0,53%), recovering Tuesday's losses. The other popular ones were weak: Banco Popolare -0,13%, Bper -0,18%, Bpm -0,51%. The Bigs are down: Intesa -0,82% despite the news that the People's Bank of China holds 2,0% of Intesa Sanpaolo's capital. Unicredit -1,17%, Mps -2,04%.
Heavy the thud of Carige (-5,4%). Today the capital increase for 850 million closes. In the financial sector, Azimut (+1,43%) should be noted. Citigroup confirmed its positive view on the Italian asset management sector.
ORDERS FOR FINCANTIERI, SAIPEM ON THE RISE
Saipem's recovery continues (yesterday +1,4%) triggered by the promotion of Deutsche Bank and by the prospects opened up by the preliminary agreement between Russia and Greece for the passage of the gas pipeline arriving from Turkey.
Within the Oil&Gas sector, Tenaris (+0,71%) and Eni (+0,24%) also rose. Erg +0,27%. Banca Imi raised the target price on the stock to 14,8 from 14,6 euros, confirming the buy recommendation.
Weak luxury: Yoox (-3,8%) was the worst blue chip of the day. Ferragamo (-1,14%), Moncler (-1%) and Luxottica (-0,9%) are also down.
In contrast, Safilo, one of the liveliest stocks with an increase of 2,2%. French broker Bryan Garnier raised his recommendation to Buy from Hold, keeping the target price of 15 euros unchanged.
Fincantieri (+0,65%) celebrated the signing with Virgin Cruises of a binding letter of intent for the construction of the first three cruise ships of the company, the new operator in the cruise sector belonging to the Virgin group.
