BANKS AND PRYSMIAN IN RALLY BEFORE THE FED
BUT FORD'S WARNING -7% BRAKS FIAT
Markets accelerate in Europe while the FOMC meeting, in Washington , draws to a close.
In Piazza Affari, the FtseMib index rose by 1,15% to 18131, with gains spread across the entire list. Rise similar to the Madrid Stock Exchange.
on the government bond market the 10-year BTP it is trading at 4,08%, spread stable at 224.
The other Stock Exchanges report lower earnings: Frankfurt +1,06%, Paris +1%, London +0,24%. All sectors are growing, driven by tech stocks (Stoxx of the sector +1,5%), banks (+1,3%) and insurance companies (+1,3%).
More cautious Wall Street: Dow Jones up 0,14%, S&P up 0,1%, Nasdaq down 0,38%.
In anticipation of press conference by the Fed chairman, on Wall Street the focus is on Ford -7,28% after announcing that its 2014 operating margin target of between 8 and 9% is at risk. The Detroit giant also said it expected global pre-tax profit of $7 billion to $8 billion next year, down from estimates of $8,5 billion in 2013. Ford earlier said the profit for 2013 would have exceeded 8 billion.
Su Fiat -2,12% weighed by the Ford profit warning (destined to reduce the price of the Chrysler IPO) in the USA and the news from Brazil where the end of tax breaks is forecast for 2014, new safety regulations and, in perspective, the slowdown in demand: the Brazilian finance minister, Guido Mantega, after a meeting with trade unions and sector representatives, ruled out any postponement or derogation on the application of the new regulations on active and passive safety systems.
Earn instead Pirelli + 2,74%.
In Milan, the queen of the price list is Prysmian +5,05%, Credit Suisse's favorite security for 2014 (outperform and target price at 21 euros), both for the potential for growth in margins and for the potential recovery of the European economy. Finally, for the investment bank, the share trades at a 15% discount on the sector.
Follows stm +2,84% in line with the European tech sector.
Finmeccanica gains 1,87%, Norway has confirmed that it will sign a contract with AgustaWestland, a company of the Finmeccanica group, for the purchase of 16 helicopters).
Italian banks recover with the exception of MontePaschi -1,97%, penalized by the tough tug of war between top management and the main shareholder, the MPS Foundation, over the timing and methods of the expected capital increase.
Understanding rises by 1,31%, Unicredit +2,43%. At the top there are also Mediobanca +2,34% and, above all, Banca Popolare di Milano +3,67%.
Insurance on the rise: Generali +1,94% and Fondiaria Sai + 1,13%.
At Piazza Affari the titles of luxury and made in Italy are also highlighted: Luxottica gains 1,88% supported by HSBC which raised the recommendation to Outperform from Neutral, target price raised to 46 euros from 42 euros.
Ferragamo rises by +2,79%, Tod’s + 0,43% Moncler + 2,9%.
Finmeccanica gains 1,87%, Norway has confirmed that it will sign a contract with AgustaWestland, a company of the Finmeccanica group, for the purchase of 16 helicopters). Bittersweet Spain for Italian groups.
Enel +1,79%. After 2 years of suspension, investors in the Spanish company will receive 1,5 euros per share in January. The move is a positive sign in terms of the balance sheet. But it indicates that the energy reform is no longer scary and bodes well for the future trend of the two shares whose purchase experts recommend.
Mediaset -0,55% is evaluating a plan for the integration and development of pay-TV activities in Italy and Spain, where the group owns, through Mediaset Espana, 22% of Digital Plus.
The Spanish Supreme Court with a sentence overturned the Rajoy government's decision on the assignment to commercial broadcasters of a series of new channels without going through a public tender. A provision that directly affects the market leader, i.e. Mediaset Espana, the main competitor, Atresmedia (Antena3, owned by the De Agostini group) and the other minor operators Veo TV (RCS group and Net TV).
Closes in deep red RCS MediaGroup -3,94% despite a note underlining that "the current management trend and the preliminary prospects for next year remain in line with the objectives and strategic path of the 2013-2015 Plan" .
Finally, the mother of all matches between Rome and Madrid. Telecom Italia moves back by 1,02% in view of the meeting called to rule on a request for revocation by the board of directors.
