European stock exchanges closed with little movement at the end of a day characterized by new signs of weakness in European industry. The stock exchanges of London, Paris and Frankfurt closed in parity, Madrid +0,1%. In Europe, the sectors with the greatest decline are Automotive (Stoxx -0,7%) and banks (-0,3%). Pharmaceuticals (+1%) and oil stocks gained, despite the decline in crude oil, with Brent trading at 102,6 dollars a barrel (-0,5%) and Wti at 95,7 dollars (-0,2 %). In Milan, the FtseMib index fell by 0,5% to 20.345. The manufacturing index slipped for the first time since June last year below the 50 point threshold, down for the fourth consecutive month.
The situation was also stable on the government bond market with the yield on ten-year BTPs at 2,41%. The markets are now concentrated in awaiting the ECB's directorate on Thursday: among operators, the feeling prevails that the central bank, before setting in motion new expansive measures, will wait for the launch of the Tltros (mid-September) and will continue to work (take-off expected, December). But, as usual, the highlight will be Mario Draghi's statements. The euro/dollar exchange rate is unchanged at 1,313.
APPLE
Wall Street reopens, attention for Apple grows. According to rumors, the group is considering a price of around $400 for the wearable electronic device, the so-called iWatch, which it should present on September 9th. The device is expected to go on sale in 2015.
BANKS/UKRAINE
Vladimir Putin has asked Kiev to open negotiations to change its model of state, while the European Union has given Moscow a week to withdraw its troops, otherwise proposing new sanctions including a ban on Europeans to buy Russian government bonds. The tensions are reflected in the European credit sector (-0,41%). In Piazza Affari banking in no particular order. Monte Paschi -2,55% is the worst title. Credit Suisse returned to hedge the stock with a neutral rating. Banco Popolare also fell sharply -2,27%. The Swiss broker chooses Intesa San Paolo -0,8% as the best stock and considers Ubi Banca +1,26% "a cheap alternative for long-term play". Bpm slightly up, Unicredit down -0,7%. Azimut loses 1,7%, Mediolanum -1%, Generali -0,5%, UnipolSai -0,08%, almost unchanged.
OIL
Oil stocks recovering, despite the decline in crude oil, with Brent trading at 102,6 dollars a barrel (-0,5%) and Wti at 95,7 dollars (-0,2%). The exception is Eni which dropped 0,32% at 18,92 euros despite Goldman Sachs having included the stock in its conviction buy list. Morgan Stanley, on the other hand, reduced the target price from 20 to 19,5 euros, confirming the equalweight judgment and according to the experts, the company would face various challenges, many of which are beyond the control of the group, even if the high yield on the stock provides support against any downturn. Saipem lost 2,49% to 17,61 euros after Deutsche Bank reduced its rating from hold to sell and the target price from 18 to 16 euros.
Among the utilities, A2A leaves 1,8% on the ground. The municipality of Brescia, says the mayor Emilio Del Bono, is ready to sell a second tranche of shares, if the performance of the stock allows it. “The reduction of the public share below 50% would be a positive indication for the stock – comments the daily note from Equita – even if it would not create an immediate speculative appeal. In the short term, on the contrary, it would create pressure on the stock”.
FIAT
Fiat closed down 1,1% at 7,36 euros. Fidentiis has decided to cut the recommendation and Sell from Hold, lowering the target price in the range of 6,5-6,9 euros from the previous 6,9-7,3 euros. Analysts are convinced that once the hurdle of the merger has been overcome, the market will return to focus on the group's fundamentals which remain weak. In August, the Italian car market fell by 0,2%. FCA reports a decrease of just over 6,6% to 14.731 units for a share of 27,6% (-2% compared to the same month of 2013, +0,3 percentage points over the previous month).
LUX OPTICS
Luxottica rose by 0,47% to 40,84 euros and the president, Leonardo Del Vecchio, made it known that the historic CEO, Andrea Guerra, is down outside the group. In the post-war era, Luxottica will have two managing directors, one focused on the markets and one dedicated to corporate functions. The board of directors thus appointed the current general manager, Enrico Cavatorta, as CEO of the corporate functions and (pro tempore) of the markets, pending the appointment of the second managing director who is "being defined". A steering committee led by the patron Del Vecchio himself will also be set up.
TELECOM
Telefonica will leave Telecom Italia -1% immediately after the conclusion of the Gvt purchase. This was stated by Cesar Alierta adding that the main obstacle in his adventure in Ti "was not being Italian". Meanwhile, the president of Telecom Giuseppe Recchi has opened up the possibility of agreements between the company and Mediaset. The situation of Telecom's shareholders, for now, is as follows: the Telco holding, controlled by Telefonica, Intesa Sanpaolo, Mediobanca and Generali, controls 22,4% but is destined to dissolve shortly. The Spanish group will therefore become the first shareholder of the group, with just under 15% of the capital but has offered Vivendi the option to purchase 8,3% of Telecom Italia, as part of the GVT agreement, an option which the French group rated it “attractive”. The same phone.
It also has a convertible loan outstanding (expiring in July 2017) and therefore the obligation to sell a stake of up to 9% of Telecom Italia's capital on a forward basis, but with bond buyback clauses also for any "reason that does not allow the transfer of Telecom Italia shares”.
COSTRUZIONI
the 3,8 billion euro put on the table by the government in the Sbolcca Italia decree did not offer particular stimuli to stocks in the cement-construction sector. However, Italcementi rose (+2,73%) following the upgrade of Exane from neutral to outperform (target price confirmed at 7,7 euro). The changes for construction were more modest: Salini Impregilo collected 0,76% while Astaldi sold 0,52% at 6,65 euro.
