Thursday 17th October. That day the most powerful Treasury pot in the world may cry. Undersecretary Jacob Lew wrote yesterday to the speaker of the House, the Republican John Boehmer, that in mid-October there will be only 30 billion dollars in Washington homes, against the 60 needed to pay salaries and other expenses and keep the federal state going. But the Republicans deny the necessary authorization to break through the roof. Well, this year too the clash over the debt and the US budget is gathering on the markets, already under stress due to the unknown factor on tapering.
The indices of Wall Street proceed under the banner of uncertainty, in a context characterized by a high level of volatility. The political stalemate in the budget negotiations allows uncertainty to triumph and leads to caution. The S&P 500 index fights not to close the fifth consecutive session with the minus sign: it would be the first time this happens this year. Facebook rises by about 1%, benefiting from some upgrades by brokers. JCPenney department store chain down 15%.
Uncertain about the others European squares: Cac 40 -0,01%, Ftse 100 -0,3%, Dax +0,01% and Ibex +0,82%. Piazza Affari closed yesterday's session with a slight increase in the FtseMib index (+0,14%). But the minimum variation should not mislead. The near equilibrium is the result of the Telecom turbulence and some positive macro data:
1) the comforting fact about consumer confidence, which rose to 101,1 in September from 98,4 in August, the highest level since July 2011;
2) the success of theCtz auction at two years. The maximum expected quantity was placed (equal to 2,5 billion euros) with a yield of 1,623%, which compares with the 1,871% of the auction at the end of August and above all with the 1,74% expressed from the secondary market the day before. The yield on the ten-year BTP is stable at 4,22%, the spread widened slightly to 240 because the yield on the German Bund fell (1,82%).
Today spotlight onbot auction, with an offer of six-monthly bonds for 8,5 billion out of the 9,424 maturing. On the gray market, the Bot trades at a yield of 0,766%, against 0,886% in the last auction, at the end of August, ie the lowest since last May.
THEhearing in Parliament of the chairman of Telecom Italia (-4,7%), Franco Bernabè, opened in the morning a day of bitter political confrontation on the fate of the former incumbent. Bernabè said the company will have to launch a capital increase to avoid downgrading by the rating agencies. Even today trading is lively, over 14,7 million pieces changed hands, with volumes equal to about 1,9% of the capital.
Big hustle moves on the banking front. Intesa lost 1,7%. The spotlights are on the tug of war between the CEO of Intesa Sanpaolo, Enrico Cucchiani, and the chairman of the Supervisory Board, Giovanni Bazoli. On the sidelines of the ACRI meeting, the president of the Cariplo Foundation, Giuseppe Guzzetti, affirmed that "there are no tensions at the top" and Antonio Finotti, president of Cariparo, also took the same line. But among the shareholder foundations of Intesa Sanpaolo, however, the cracks can be glimpsed, despite the excellent performance of the share during the Cucchiani management (+50%). The key step will take place on Tuesday, during the management and supervisory meetings convened for Tuesday".
Unicredit rose by 1,2%: progress was recorded in the negotiations between the bank and Carlo Tassara on the debt, even if there are still issues to be resolved, in particular regarding the requests on governance. Mediobanca -0,3%, Monte Paschi -0,4%. In a parliamentary hearing, the president of MPS, Alessandro Profumo, announced that he was "at the disposal of the ministry and the EU Commission to make all the necessary changes in the interest of everyone, of the bank and of the country, to arrive at the definition of this process". Autogrill was up 3,7%, the day's best blue chip. In yesterday's meeting with the financial community, management illustrated growth strategies in America and Northern Europe.
From industrial stocks Finmeccanica recorded a rise of 0,6%, StM rose +0,9%. Positive change for Fiat +0,4%. The fund of the United Auto Workers union has chosen Deutsche Bank as adviser on how to resolve the issue of the sale of the 41,5% stake held in Chrysler, according to two sources close to the dossier. Good rise for Pirelli +2,3%. Italcementi gained 1,4% after UBS upgraded its rating to “neutral” from “sell”. Mediaset fell by 1,6%, Cheuvreux downgraded the rating to "hold" from "buy". Snam lost 0,5%. Credit Suisse raised the recommendation to "outperform" from "neutral" bringing the target price to 4,1 euros from 3,7 euros. In the morning, the stock touched the maximum of the last 12 months. Profit-taking pushes Yoox -1,4% to close the third consecutive negative session.
