TREMONTI: FULL AHEAD ON PRIVAZATION
NEWS IN SIGHT FOR LIBERALIZATIONS
Privatizations of tranches of state giants such as Eni, Enel and Finmeccanica in maneuver? “He who names names lies”. Thus the Minister of Simplification, Roberto Calderoli, curbed the press rumors circulating about the privatizations of private companies under public control. The law on privatizations that would be studied by the Minister of the Economy, Giulio Tremonti, should therefore not give indications on the names of the companies involved. Thus, the hostility of the League to the sale of shareholdings in the public area, which mainly concerns local utilities, seems to be confirmed. But the Carroccio's warning went without saying. Giulio Tremonti, speaking to the ABI, was explicit: Once the crisis that depressed asset values is over, we need to "start over with privatizations.
Starting with the municipalities, which, with the exception of water, will be pushed in this direction by a mechanism of incentives and disincentives linked to the internal stability pact”, Tremonti then explained that as regards the privatization of state assets (see Post and Railways , first of all) there will be a simplification of the previous dcpm. Furthermore, full speed ahead with the liberalisations. This too will contain the decree on the "strengthened" maneuver, explained the Minister of Economy. ”Within six months the field of activities, if you don't foresee anything different, is free. It is a European standard – he added – written in English which we have translated and which – concluded the Minister – I have the impression that today it will become part of the decree” The Stock Exchange reacts positively to the message. In the morning, Finmeccanica recorded an increase of 1,97, better than Eni (+1,03%) and Enel (+1,025).
THE BEST MILAN STOCK EXCHANGE IN EUROPE
PIMCO HAS FULL OF BOT AND BTP
Good rise on the Milan Stock Exchange which continues the recovery started yesterday. The main FtseMib index rose by 2,23%, Ftse/Mib to 18.923 points. After a declining opening, the other European Stock Exchanges are also now traveling in positive territory. In London, the Ftse100 rose by almost half a percentage point to 5.897,8 points, while the Dax rose by 0,8% to 7233,7 points. Caca40 was also positive, taking about 0,48% at 3.792,2 points. The improvement also affects government bonds: the yield on the ten-year BTP fell to 5,48% (-8 basis points) and the spread with the German Bund narrowed to 279 basis points from yesterday's high of 350. The euro strengthens, despite Moody's decision to cut Ireland's rating to "junk" and reaches 1,405 against the dollar.
To strike a spear in favor of Italian stocks is none other than Andrew Bosomworth, head of fixed income management at Pimco. Previously underweight in Italy, the manager of the largest fund in the world ($1.200 trillion in assets) has exploited declines in recent days to increase its position on BTPs which yesterday reached values not seen since 1997. "If the market does not stabilize, the ECB would be forced to buy Italian public debt massively to avoid a domino effect" he said explained the manager who canceled his position on American T-bonds. To judge the excesses of these days, it is enough to note that the CDS, ie the risk policy, for Italy is more expensive than the credit default swaps on Romania, Bulgaria, Poland, Chile and Peru.
VEGAS INVITATION: “DO NOT LEND TITLES”
INTESA RUNS, BUT GOLDMAN CUT TARGETS
Consob has done a work of moral suasion by asking all the institutions that have lent securities to recall them. The hope also concerns the banking foundations, the main "reservoir" of Intesa, Unicredit and MontePaschi securities. This was stated by the president of the commission Giuseppe Vegas on the sidelines of the ABI assembly. “We did a moral suasion by asking all lenders to recall them,” Vegas said. When asked if the request was binding, Vegas limited himself to answering: "No, in the meantime let's see". Meanwhile, bank stocks are breathing. Intesa Sanpaolo rises by 3,5% to 1,63 euros and drives the increases in bank shares on a positive day for Piazza Affari. The banks confirm the recovery achieved yesterday after six consecutive sessions of heavy declines that left their mark, also due to the parallel increase in the spread on government bonds, which fell this morning to more normal levels (285 bps against a record 304 ) but still high.
For this reason, Goldman Sachs today cut the target prices on the shares of credit institutions, in the face of higher refinancing costs and lower expected profitability after the drop in the prices of government bonds in the portfolio: "We incorporate some of these concerns in an increase in the cost of equity (10,5-11% on average) and in a reduction in earnings per share (4-7% on average)”, write the analysts. For Intesa, the new target price is 2,3 euros, up from the previous 2,5 euros. Among the industrialists, Fiat Industrial shines. Stm decreased, affected by the weakness of the entire semiconductor sector in the USA. The renewable energy stocks were positive: Enel Green Power rose by 1,3%, Terni Energia +3,8%. Among the mid caps, Brembo is positive +3,6%.
THE MANEUVER PUSHES ATLANTIA AND GEMINA
BRAKING ON THE STAMP, AZIMUTH ON THE SCUDI
The stamp duty on securities deposits changes, but not too much. The restriction on the holders of securities remains in substance: however, the progressiveness of the tax is remodulated which will be the same for everyone, and equal to 120 euros, in 2011 and 2012. From 2013, however, it will become progressive starting from a minimum of 120 euros to reach up to 1.800 euros for securities deposits «whose total nominal or redemption value at each bank exceeds 300 thousand euros». The most accredited hypothesis under study, to be transformed into an amendment to the maneuver, resulted in these terms last night. The other novelty is the decision to apply the tax to communications relating to deposits sent by financial intermediaries. It is no longer a question, as formulated at first, of the increase in the stamp duty on deposits, now equal to 34,2 euros. The report attached to the new article clarifies that the proposed modification "is informed by principles of progressiveness and has the further objective of reducing the risk of crowding out investments in government bonds". This creates a disadvantageous situation for bank bonds. The 1% limit on the deductibility of depreciation of revertible assets should be repealed and replaced with a reduction in the tax deductibility of provisions for the restoration fund.
This would be the orientation of the majority which should be translated into an amendment, to be shared with the opposition, to the decree law on the economic maneuver being examined by the Senate Budget Commission. The new formulation is judged less onerous by the markets. Leading the rise among the blue chips in Piazza Affari is Atlantia, +4,9%, and the other motorway concessionaire, Sias, rises by 7%. Gemina also rose sharply. Azimut has acquired 50% of the Swiss Katarsis Capital Advisors for 7,5 million euros. Payment is partly in treasury shares and partly in cash. Katarsis operates in Switzerland as an investment advisor on assets under management of around 90 million euros. Azimut specified that the company was valued ten times its earnings. Azimut is very active on the acquisitions front: after entering the Chinese and Turkish markets, the group bought CMG in Montecarlo and signed a distribution agreement with the Swiss Siqurgest. Thanks to these operations, the fear of a reduction in assets under management could be averted.
MEDIUM CAP: INTERPUMP IS STILL SHOPPING
BOLLORE' ONE STEP FROM PININFARINA (+24%)
The shopping of Interpump, one of the companies that are part of Gianni Tamburi's Tip, does not stop. Interpump has signed a contract for the acquisition of 53% of the Emilia-based Galtech for a value of 3,3 million euro, the buyer paying half in cash and the other half in shares. Galtech operates in the production of gear pumps and motors, in 2010 it had a turnover of 13,1 million Euros, with an EBITDA of 0,5 million Euros: in the first half year sales increased by 30% compared to the same period of the year previous. The transaction will allow for an increase of around 3% in Interpump turnover.
Pininfarina flies (+11,7%). The guidelines of the plan presented by Vincent Bolloré for the Turin company to the creditor banks have been welcomed by the creditors who are now awaiting a formal proposal from the Breton financier who has already leased the plant of Bairo for the production of electric cars. The entire stake of the Pininfarina family, equal to 77,289% of the capital, is pledged to the creditor banks, as is 100% of the holding that controls the company, Pincar. There is a mandate to sell entrusted to Banca Leonardo.
