THE STOCK BELIEVES IN THE EU RECIPE FOR GREECE
WE SEE THE BULL ON THE DAY OF THE "WITCHES"
Angela Merkel and Nicolas Sarkozy give new life to the stock exchanges of the Old Continent. In fact, after a downward start, the European price lists abruptly changed course almost simultaneously with the start of the press conference of the premiers of France and Germany. The solution to the Greek crisis, the German chancellor began, "must be quick", but she reiterated that it is also necessary to involve private individuals in the rescue operation "on a voluntary basis". Positive notes come from Athens, awaiting Parliament's vote on the new government on Tuesday: Greek bank stocks are recovering by 4% on the wave of the replacement of Finance Minister George Papaconstantinou with Evangelos Venizelou, formerly in Defense.
In Milan, the Ftse-Mib index rises by 1,3%, Madrid +1%. Paris +0,7%, Frankfurt +0,5%, London is on par. However, the expiry of the "three witches", i.e. the concentration of technical expiries of futures and options, contributes to amplify volatility.
The euro recovers compared to this morning, the exchange rate is set at 1,4239, above last night's close.
Tension on the peripheral bond markets eases: the 10-year Greek bond rebounds and its yield falls by 7 basis points to 17,35%. This morning, Prime Minister George Papandreu presents the new government: according to rumors, Papandreu has removed George Papacostantinou from the leadership of the finance ministry and replaced him with Evangelos Venizelos, previously defense minister. Papacostantinou pays for everyone because, in the eyes of the crowd, it was he, in agreement with the EU and the International Monetary Fund, who developed the severe austerity plans. Greek bank stocks rebound 4%.
BPM SICKS UP (+12,76% THE MAXIMUM). “BUT BNP ISN'T IN IT”
MPS GOES UP. LIKE THE DISCOUNT ON NEW TITLES
The change of course of the market was immediately reflected in the banking securities sector. Banca Mps, which at the start had marked a new drop (-1,7%) after the publication of the terms on the capital increase which will start on Monday, quickly rose again in positive territory (+2%). Yesterday evening the board of directors of the Sienese bank determined the price of the new shares offered to shareholders as part of the capital increase: 0,446 euro.
The new shares are offered at a discount of 27,88% on the theoretical price, former subscription right, of the ordinary shares calculated on the Wednesday evening price. The value of the transaction is 2,15 billion euro. Goldman Sachs brought the target price to 1,1 euro from 1,5 euro. The discount on new titles, according to operators, is better than expected.
The rebound of Bpm was much more energetic, after the long series of downward sessions: the bank in Piazza Meda scores a rebound of as much as 12,76%%, despite the rumor of an interest by BNP Paribas for the institution been defined, at the request of Consob, as "devoid of any foundation".
Fonsai, already in the black jersey from the eve, also made a strong recovery (+5%). rises by 5%: the closing of the agreement between the holding company Sinergia and the lending banks for the stand still project of the debt of Sinergia and Imco (300 million euro) now seems a matter of days. The Board of Directors is expected to meet on June 22 and should fix the price at which the capital increase will take place, which should be completed by the end of July.
LOVING NOTES FOR LUXURY. AVARA IPO FOR PRADA
MORGAN BACKS TOD,S. VALENTINO LEAVES SAFILO
Prada's Hong Kong IPO turned out to be less generous than the company (and Banca Intesa) had hoped for. However, the Italian brand collected 2,14 billion dollars, lowering the offer price from 48 Hong Kong dollars, the maximum value of the fork, to 38,5.
Bad news also for the luxury listed on Piazza Affari. This morning Morgan Stanley lowered the recommendation for Tod's to equalweight from overweight. In the report, analysts write that going forward there will be little positive stimulus for the stock of the footwear and apparel company which is down 3,8%.
Safilo was also down (-2,9%). This morning the high-end eyewear company announced that Valentino's licensing agreement, which expires at the end of the year, will not be renewed. On a later note, Safilo announced the renewal of the license with Alexander McQueen until the end of 2015 but the news failed to offset the effect of the non-renewal with Valentino, who signed an agreement with Marchon.
FIAT DOES NOT PICK UP THE GEAR OF THE RECOVERY
THE STOCK EXCHANGE PUNISHES INGOT AND INDUSTRIAL
Fiat's share of the European car market remains nailed to 7,3% also in May, a month that saw a strong recovery in registrations in the EU27 (+7,1% to 1,209 million vehicles) thanks to France and Germany . The market punishes Fiat (-3,1%) and Industrial (-3,3%).
Brent-type oil is down at 111,9 dollars a barrel (-1,8%) and Wti trades at 92,7 dollars (-2,3%). Eni now earns more than 1%.
This morning, the high-end eyewear company Safilo announced that Valentino's license agreement, which expires at the end of the year, will not be renewed. On a later note, Safilo announced the renewal of the license with Alexander McQueen until the end of 2015.
Safilo explains that the non-renewal with Valentino "goes in the direction of the rationalization of the license portfolio desired by the managing director Roberto Vedovotto".
