The markets have meshed the fifth after China's surprise interest rate cut. Instead, the expected intervention of the Fed Chairman Ben Bernanke and European square they scaled back the rise: Milan rises by 0,88% to 13.545,32 points after reaching 13.690 points in the afternoon, Frankfurt by 0,82%, Paris by 0,42% and London increasing by 1,18%. The Dow Jones rose 0,69% and the Nasdaq 0,22% as European markets closed. The euro against the dollar is down slightly to 1,2560 while WTI oil trades at 84,80 dollars a barrel.
BERNANKE, RISKS FOR THE US ECONOMY FROM EUROPE
IMF, 40 BILLION BAILOUT FOR SPANISH BANKS
Like Obama, Bernanke returns to point the finger at the crisis in Europe which, he says, is making itself felt on the American economy, weighing on exports, on the confidence of companies and consumers, putting pressure on the financial markets. US banks, Bernanke notes, are stronger and more solid than in previous years but, he stated, "the situation in Europe poses significant risks to the financial system and the American economy and must be monitored closely". US growth will continue in the coming quarters at a moderate rate and the fed has said it is ready to act to protect the US economy if the euro crisis worsens. Today the data on claims for unemployment benefits came as no surprise: requests fell last week by 12.000 units to 377.000 units in line with market estimates.
After the Boe left interest rates unchanged, just like the ECB yesterday (which will support the banks with unlimited loans but has not announced new Ltros), Europe is now looking at the rescue plan for Spanish banks and the preparatory work for the European summit at the end of June.
Merkel's openness to political union and optimism that Spanish banks can get help without triggering a Madrid bailout they argued optimism. Confirmed by the outcome of the Spanish auction in the morning: Madrid recorded solid demand and even raised a little more than the expected maximum, with a total of 2,07 billion, even if yields increased. On the other hand, yields are down for medium-long term French bonds at auction today. The Bono-bund spread decreased to 472 basis points, below the 493 at the opening. The Btp-bund differential closes at 433.
According to S&P, the bad debts of Spanish banks are between 80 and 112 billion. According to the IMF, Spain needs 90 billion to recapitalize the banks, of which 50 can be collected on the market by institutions while the remaining 40 must be found in other ways. The direct use of the bailout fund "is one of the elements that is being discussed" in view of the meeting at the end of June, he confirmed Enzo Moavero Milanesi, responding to reporters on the sidelines of a hearing of the European Economic and Social Committee on "The sovereign debt crisis". So that Madrid doesn't have to activate a real request for help that would put in place the Troika and new structural reforms after the tears and blood maneuvers already launched by the government in the serious situation of the Spanish economy. In any case, said Moavero, the issue of saving the Spanish banks will pass "first to the Eurogroup and Ecofin". The NYT is confident that Germany will throw in the towel and allow an agreement on banks with no limits on public finances. Meanwhile, the chancellor's government Angela Merkel, who declared that the fiscal compact will not be enough to stop the crisis in Europe, has reached an agreement in principle with the opposition on the plan that provides for the introduction of a tax on financial transactions, a form of Tobin tax not yet known in particular, that it can be implemented regardless of the green light from the entire EU.
LUXURY RISES ON PRADA'S ACCOUNTS
RCS (+23,15%), NEGOTIATIONS ON FLAMMARION IN ADVANCED PHASE
A Business Square luxury shines again, also driven by the accounts of Prada (+47,9% revenues) with Salvatore Ferragamo climbing the best stock of the Ftse Mib by +4,60%. Also in evidence were Saipem +4,41%, Stm 3,20%, Prysmian 3,19%, Ansaldo Sts 3,10%.
Also good Mediobanca +3,05%% after the declarations of Vincent Bollorè who said he was ready to increase his stake. Telecom Italia rises by 1,57% % after the opening of the CDP to a collaboration on the new generation fixed networks. RCS jumped by 23,15% in the wake of rumors that an agreement with the French publisher Gallimard is imminent. In a note, at the request of Consob, the group specified that the exclusive negotiations with Gallimard for the sale of the French subsidiary Flammarion are "at an advanced stage", but that to date it is not possible to formulate precise indications on the conditions and values of the possible operation
BONOMI (BPM), REVOLUTIONARY PLAN BY JULY
ANTITRUST ON FONSAI, OVERALL APPROVAL FOR COMMITMENTS MADE BY THE PARTIES
Sales on A2A -2,94%, worst stock in the Ftse Mib. Sales on Generali are back -1,12% after the increases following the blitz on the change of top management. On the insurance hub front, yesterday evening Unipol (+1,72%) formalized its proposal for the merger, accepting a 61% stake in the post-merger entity but rejecting the condition on capital gains from property sales for Fonsai shareholders ( +0,00%). Premafin's board of directors (+0,28%) is scheduled for tomorrow, the councils of Fonsai and Milano Assicurazioni. The question of the waiver of the indemnity of the Ligresti and the right of withdrawal still remains on the table. Today the president of the Antitrust said that the authority had sent its opinion to Isvap on the operation in which he expressed "the overall appreciation, not on the individual points, of the commitments made by the parties".
Il banking sector little moved overall: Intesa +0,53%, Unicredit unchanged, Banco Popolare +0,70% while Mps yields 0,18% after the end of the sales effect in view of the branches. Purchases on Ubi Banca +1,93% and Bpm rises by 1,92%. The chairman of the management board and the managing director of Bpm, Andrea Bonomi and Piero Montani, announced to the employees in a letter to employees "a revolutionary industrial plan, with which Bpm will set great growth objectives but above all will aim at a important turnaround". The plan will be presented by July 15th.
