THE AVALANGE OVERWARDS ALL THE EXCHANGES: MILAN -3,96%
THE EURO AT A STEP FROM 1,40 ON THE DOLLAR. FREE RECORD
An avalanche. The Italian Stock Exchange has experienced one of its worst days. But, unlike on Friday, the attack on Italian finance has spread to all European markets, confirming the fact that sales on Italian public debt securities, the most liquid and most significant in terms of absolute value (the stock of Italian public debt is in first place in Europe), have the significance of a vital test for the stability of the common currency. Here is the war bulletin at the end of a day in which it is difficult to identify a positive note: In Milan, the FtseMib index of Piazza Affari lost 3,96% ending up at 18.295 (at the levels of May 2010), Madrid -4,3 .2,3%, the Paris Stock Exchange drops by 2%, Frankfurt -1%, London -500%. In New York, the S&P1 index falls by 1,5%. The euro fell 1,403% against the dollar to 1,4265 (from 1,1735 on Friday night). The Swiss franc shot up to 1.555 against the euro, a new all-time high. Gold also rose to 0,7 dollars an ounce (+1.108%) and to XNUMX euros, a new all-time high for quotations in euros.
THE GAP ON THE BUND NEARS 300 BP, THE BTP RISES TO 5,55%
THE CHINESE RATING AGENCY ALSO DOWNGRADES ITALY
The yield on the 30-year BTP rises by 5,55 basis points to 14%. The yield on the 2,68-year German Bund fell by 290 basis points to 180%. In order to feel safe, investors choose the German government bond which yields practically as much as inflation. The spread between the yield of the ten-year BTP and the Bund is 100 basis points. Compared to ten days ago, when it was at 1, it has widened by XNUMX basis points, i.e. by XNUMX percentage point. To give an idea of the situation is also news arriving from the East: the Dagong rating agency, the fourth in the world, has announced that it has placed Italy's creditworthiness under observation for a possible downgrade.
THE CONSOB MOVE DOESN'T WORK
TARGET SHOOTING ON BANKS AND INSURANCE
Everything or almost everything goes down in the stock exchanges. The greatest losses concern insurance companies (European Stoxx in the sector -3,2%), the car industry (-3,1%) and banks (-2,3%). One thing is certain: the Consob move did not stop the massive sales on the titles. Standing out in this tender was Unicredit (-6,33% to 1,154 euros), on the day in which the bank in Piazza Cordusio announced that it will confirm its 8,7% stake in Mediobanca upon renewal of the next shareholders' agreement. Intesa SanPaolo was also down (-7,74% at 1,526 euros), Bpm (-6,39% at 1,435 euros) and Mediobanca (-4,28% at 6,15 euros). The 2,15 billion euro capital increase of Banca MPS (-4,48% to 0,492 euro) was 99,91% subscribed. The Monte Paschi di Siena Foundation has announced that it has purchased more than 50% of the new shares issued. The bank's goal is now to distribute two billion in dividends by 2015. The asset management sector is not doing better, which is also the victim of suspensions during the stock exchange day. Mediolanum closed trading down by -6,28% to 2,836, while Azimut took 7,42% to 5,3 euros.
BLACK DAY FOR THE “LODO” DUELISTS
THE FININVEST GALAXY COMES DOWN, THE CIR AS WELL
The negative closure of Mediolanum is partly linked to the difficulties of the Fininvest galaxy, after the appeal ruling on the Mondadori award. Both Mediaset (-3,82% to 2,918 euros) and Mondadori (-4,51% to 2,246 euros), who paid the price for the sentence handed down on Saturday morning by the Milan Court of Appeal regarding the Mondadori award, are in line. It is more difficult, apparently, to explain the landslide of Cir which closed with a loss of 7,2% at 1,66 euros after violent swings. In the first stages, the stock soared up by 6% to 1,898 euros and immediately afterwards it fell by 9% to reach a minimum of 1,624 euros. Two considerations justify the uncertainties about Cir's future: the holding company will still have to wait for the final sentence of the Cassation; rumors have circulated that the group could use the liquidity to buy La7 from Telecom Italia.
DOUBLE FAILURE FOR MARCHIONNE'S TITLES
THE AVALANCHE DOES NOT SAVE ENI AND ENEL (-4,9%)
Eni shares were also red (-2,76% to 15,5 euros), even after the confirmation of its strengthening in Egypt. The Egyptian prime minister, Essam Sharaf, and the managing director of the San Donato company, Paolo Scaroni, met today in Cairo, in fact confirmed Eni's commitment in Egypt as foreseen by the recent agreements. Eni is the leading international operator in Egypt with a production of 500 barrels per day. The decline, however, spared no one. Fiat falls down by 5,8% Finmeccanica by 2,4%. The landslide does not spare Enel (-4,9%). Fiat Industrial loses 1,6% to 8,22 euros. But during the session it collapsed to a minimum of 7,70 euros, despite not being a financial security. The French broker Exane BnpParibas intervened on the stock this morning, lowering the target price by 5%, bringing it to 9,7 euros from 10,20 euros. The recommendation is confirmed.
WALL STREET AWAITS THE DEBUT OF THE QUARTERLY
THE FEDERAL BUDGET AND RATINGS INCREASINGLY AT RISK
Complicating things, many experts repeat, is the tug of war between Obama and the Republicans over the cut of the federal deficit that the White House would like accompanied by tax increases for the wealthiest. In the event of no agreement, the rumors assume that the rating of the USA will be downgraded, which would lose the triple A rating of S&P, with enormous consequences for international finance. But Wall Street, for now, does not show signs of excessive nervousness, even if it continues weakly during a session heavily conditioned by the crisis in the peripheral countries of the euro area. Dow Jones -1,2%, S&P500 -1,6%, Nasdaq -1,7%. The absence of macroeconomic data relating to the US economy does not provide insights capable of guiding US investors. Instead, the quarterly reports, starting with Alcoa this evening, will guide them. Analysts are expecting earnings per share growth of 13%, the lowest in years. In the meantime, Wall Street penalizes the banking giants JP Morgan (-2,9%) and Bank of America (-2,5%).
