FIAT AND FERRAGAMO HOLD THE DECLINE IN BUSINESS. AND DRAGHI INSISTS: LOW RATES ARE NOT A PROBLEM
Weak start for the Milan Stock Exchange with the FtseMib index falling by 0,41% to 18761. On the government bond market, the 10-year BTP is traded at a yield of 4,08%, the spread slightly decreasing at share 231 (-3 basis points). Contrasted by the other European markets: Paris +0,17, Frankfurt -0,08%. The Spanish Ibex climbs 0,39%. London -0,24%.
The Ifo index, one of the leading barometers of business confidence in Germany, rose to 109,3 points in November from 107,4 points in October, above an expected 107,7 points. It thus reached its highest level since April 2012.
"Low interest rates may threaten financial stability over time, but we currently have no evidence of this," Mario Draghi said in Frankfurt this morning. “If we see that low interest rates create localized risks, then local tools should be used to address them – added the ECB president -, in particular the national authorities should make full use of the macro-prudential tools they have at their disposal”.
Fiat rose by 0,77% after the news that the banks that are to place Chrysler have valued it at 10 billion dollars. If the figure is confirmed, the Detroit group would be worth less than the electric car maker Tesla Motor, whose market capitalization is around 15 billion dollars.
Equita this morning raises its opinion on Fiat to "buy" as it believes that Lingotto and Veba will reach an agreement before Chrysler's landing on the Stock Exchange: the Italian manufacturer should be willing to pay a premium compared to the placers' assessments. Exor +1,5%, Cnh Industrial -0,4%.
Luxury: on the catwalk Salvatore Ferragamo +4,11% to its all-time high (27,6 euros) on exceptional volumes. Luxottica -0,46%, Tod's +1%, Yoox +1,5%. Mediaset rises by 2,94%: Goldman Sachs confirmed the stock in its "Conviction Buy List" with a target price of 5,1 euros.
Generali drops by 1,38%. The company would be interested in taking over Sace, the public company that insures exports. An industry analyst considers the hypothesis "unlikely: Generali is engaged in a disposal plan, with a target of 4 billion in 2015". It's hard to imagine that, at this stage, the company led by Mario Greco is committing itself to a onerous acquisition like Sace. But Equita Sim writes that "from an industrial point of view, the fit would be optimal because Generali wants to strengthen the corporate segment and Sace works with 75.000 Italian companies and could be a platform to be extended to Generali's foreign customers". But a capital increase "of at least 2 billion" will be needed to finance the deal.
The banks moved little: Unicredit -0,38%, Intesa -0,58%, MontePaschi -1,75%. The reactions to the government sales were modest: Eni unchanged and Stm +0,34%. Finmeccanica drops by 1,52%. Weak Enel -0,3%. Net decline of Saipem -2,12%. Telecom Italia drops by 0,22%. Atlantia is down sharply -1,63%. Among the small caps Tiscali flies +10% on the hypothesis of an interest by Sky.
FIAT AND FERRAGAMO HOLD THE DECLINE IN BUSINESS
AND DRAGHI INSISTS: LOW RATES ARE NOT A PROBLEM
Weak start for the Milan Stock Exchange with the FtseMib index down by 0,41% at odds of 18761.
On the government bond market, the 10-year BTP is traded at a yield of 4,08%, the spread slightly decreasing to 231 (-3 basis points).
Contrasted by the other European markets: Paris +0,17, Frankfurt -0,08%. The Spanish Ibex climbs 0,39%. London -0,24%.
The Ifo index, one of the leading barometers of business confidence in Germany, rose to 109,3 points in November from 107,4 points in October, above an expected 107,7 points. It thus reached its highest level since April 2012.
"Low interest rates may threaten financial stability over time, but we currently have no evidence of this” said Mario Draghi this morning in Frankfurt. "If we see that low interest rates create localized risks, then local tools should be used to address them – added the ECB president – In particular, national authorities should make full use of the macro-prudential tools they have at their disposal”.
Fiat it rose by 0,77% after the news that the banks that are to place Chrysler have valued it at 10 billion dollars. If the figure is confirmed, the Detroit group would be worth less than the electric car maker Tesla Motor, whose market capitalization is around 15 billion dollars.
Equita this morning raises its opinion on Fiat to "buy" as it believes that Lingotto and Veba will reach an agreement before Chrysler's landing on the Stock Exchange: the Italian manufacturer should be willing to pay a premium compared to the placers' assessments.
Exor + 1,5%Cnh Industrial-0,4%.
On the catwalk, he parades Salvatore Ferragamo + 4,11% at its all-time high (27,6 euros) on exceptional volumes.
Luxottica -0,46% Tod’s + 1% Yoox + 1,5%.
Mediaset up 2,94%: Goldman Sachs confirmed the stock in its "Conviction Buy List" with a target price of 5,1 euros.
Generali drops by 1,38%. The company would be interested in taking over Sace, the public company that insures exports.
An analyst in the sector considers the hypothesis “incredible: Generali is engaged in a disposal plan, with a target of 4 billion in 2015″. It's hard to imagine that, at this stage, the company led by Mario Greco is committing itself to a onerous acquisition like Sace. But Equita Sim writes that "from an industrial point of view, the fit would be optimal because Generali wants to strengthen the corporate segment and Sace works with 75.000 Italian companies and could be a platform to be extended to Generali's foreign customers". But a capital increase "of at least 2 billion" will be needed to finance the deal.
The banks moved little: Unicredit -0,38% Understanding -0,58% ,MontePaschi -1,75%.
Modest reactions to government sales: Eni unchanged and Stm +0,34%
Finmeccanica drops by 1,52%. Weak Enel -0,3%.
Sharp reduction ofSaipem-2,12%.
Telecom Italy drops by 0,22%.
In sharp decline Atlantia -1,63%.
It flies between the small caps Tiscali+10% on the hypothesis of an interest from Sky.
