THRILLING BANKS, THE SPANISH NEED ANOTHER 50 BILLION
GREECE AND HUNGARY FEAR THE DEFAULT
It's a creepy day for Italian banks: Unicredit lost 17,27% after yesterday's 14,45%, Bpm 10,74%, Banco Popolare 10,27%, Ubi 8,90%, Mps 8,55% and Intesa 7,33%. The sector, which has a strong weight on the Ftse Mib, dragged down Piazza Affari by 3,65%. But the index is red for all titles and only Fiat is saved, which rises by 3,57%, after the announcement of the increase to 58,5% in the share capital of Chrysler, and Pirelli which rises by 0,52%. The other European stock exchanges also fell, albeit with more contained reductions: the Dax dropped by 0,25%, the Ftse 100 by 0,78% and the Cac by 1,53%.
While Mario Monti runs by surprise to Brussels (and tomorrow he will meet Sarkozy) to make Italy's voice heard in the aftermath of the severe plan to restore the accounts, the European emergency has exploded again with force. Numerous voltage fronts: laid down by the Greece which without the release of the new aid runs towards default by March toHungary, which is part of the EU but not the euro area, where thegovernment bond auction flopped and without immediate aid, it too risks default while the florin falls to historic lows against the euro. An economic instability in Hungary would also fully invest our banks, especially Unicredit and Intesa which are respectively the seventh and fifth banks in the country. Then there is the Unicredit recapitalization, already known since December in response to EBA requests but which set a heavily discounted price (43%) for the new shares, a decision that was interpreted as a sign of weakness on the success of the operation. Fears about new bank recapitalizations have rekindled almost everywhere. In Germany Deutsche Bank has also been hit by rumors of an upcoming capital increase. While from Spain, which until recently seemed to be in a better situation than Italy, the government estimates that the banks will need another 50 billion to deal with bad debts in the real estate sector.
BTP-BUND SPREAD AT 522 BASIS POINTS
EURO AT THE MINIMUM FOR 16 MONTHS UNDER
Spreads between government bonds and Bunds thus return to tension almost everywhere (in a vicious circle that aggravates the situation for the banking sector) with the differential between the ten-year btp and the bund which once again exceeds 520 basis points. In Italy the employment emergency continues to bite: preliminary data from Istat indicated the increase in unemployment to 8,6% and the surge in youth unemployment to 30,1%, the highest level in 2004.
Doesn't help ease sovereign debt tensionsFrench Oat Auction that goes through, albeit with a result in light and shade: France has placed 7,9 billion securities between 10 and 30 years on a range between 7 and 8 billion against an almost double demand (15 billion ) even if lower than the December auction. Yields increased slightly. For 3,29-year bonds, the yield was 3,18% versus XNUMX% previously.
The euro continues its decline and touches the minimum for more than 16 months at 1,2795 against the dollar. According to the Anglo-Saxon press, the single currency has been given a strong shoulder by the hedge funds which intensified their bets against the euro in the last week of 2011.
USA, UNEMPLOYMENT DATA BETTER THAN EXPECTED
BUT WALL STREET CONCERNS EUROPE
Europe's Troubles Cross the Atlantic and Overshadow Good Unemployment Data: according to ADP estimates, the private sector created 325 jobs in December, against the 175 expected by analysts; initial claims for unemployment benefits fell by 15 units, better than expectations which indicated a drop of 6 units, settling at 372 in the course below the psychological threshold of 400 units. But on Wall Street, which opened slightly lower, the Dow Jones moved down by 0,60% while the Nasdaq reacted with a slight rise of 0,12%.
TWO PROPOSALS FOR FONSAI
The game continues on the insurance company Fondiaria Sai (-14,78%) which has already received two separate offers. Sources close to the dossier explain that the Clessidra fund and Unipol have formalized offers, presenting two separate proposals relating to the reorganization of Premafin and Fondiaria-Sai. A due diligence could start as early as next week. No comments from Unipol and Clessidra.
