Green light from Germany to the ESM state-saving fund. Germany's constitutional court has approved Berlin's ratification of the eurozone's bailout mechanism. The eight judges of the Court however, they set conditions: any increase in Germany's financial participation in the capital of the ESM, up to a maximum of 190 million euros, will have to be submitted to a vote in Parliament.
The European Stock Exchanges, after an initial bewilderment, they immediately lengthened the pace, so much so that now Milan boasts an increase of 1,3%, Madrid 1,3%, Paris 0,66% and Frankfurt 1,1%. The euro is also gaining positions against the dollar, up to an exchange rate of 1,2885 greenbacks. Meanwhile, the Italian spread drops to 339, against 353 at yesterday's close.
This morning the Asian stock exchanges took the direction of the rise: Tokyo +1,50%, Hong Kong +0,84%.
China will meet its 7,5% GDP growth target in 2012, despite the pressures its economy faces. Words spoken by Premier Wen Jiabao in his speech at the World Economic Forum in Tianjin.
Wall Street also rose, with the Dow Jones rising by 0,31%, the S&P500 index gaining 0,52%. The Nasdaq advances by only 0,02%, on the eve of Apple's press conference dedicated to the launch of the iPhone 5. The New York Times thought about it with a new investigation into the Chinese factory where Apple products are made: wages and working conditions of the workers, after the criticisms, have improved. But only because the employees have been replaced by student interns in much more precarious conditions. Worth noting is the leap in Seoul in the shares of the enemy Samsung +2,6%, which is also among the major suppliers of Apple.
So far, Moody's warning has had no impact: if Congress does not find an agreement to reduce the federal budget, the United States risks losing triple A and slipping to Aa1.
Even the European Stock Exchanges bet on the Bull yesterday, in the final. The choice of the German Constitutional Court to reject the hypothesis of a postponement of the sentence, as requested by an anti-European deputy, bodes well.
The supreme judges are called to take a position on the compatibility of the European state-saving fund Ems with the basic law of Germany. All polls of legal experts say the court should approve the fund, but it could impose conditions. Furthermore, this morning the Dutch will go to the polls to elect the new Parliament, another appointment full of unknowns for the eurozone.
Meanwhile, yesterday Greek Prime Minister Antonio Samaras reassured the European Central Bank of his government's commitment to relaunch the reform programme, as reported by the ECB itself after the premier's meeting with Mario Draghi and other senior central bank officials.
Piazza Affari accelerated in the final and closed with the FtseMib index up by 0,8%. The Paris (+0,8%) and Frankfurt (+1,3%) stock exchanges were also positive. London finished tied. The yield differential between ten-year BTPs and Bunds ended yesterday's session at lows, around 351 basis points against 366 at yesterday's close. On Friday, the spread had slipped to 349 basis points, the lowest since last April 4, with a yield on the ten-year benchmark once again within sight of 5%.
Rain of corporate bond offers, as expected. Over 20 billion offered by: Intesa (1,25 billion, 80% absorbed from abroad), Snam and the Spanish companies Iberdrola and Gas Natural. Enel +2,1% approved the issue by 31 December 2013 of one or more bonds, for a total maximum amount equal to the equivalent of 5 billion euro, "in order to optimize the profile of the related medium and long term".
Strengthened by the positive climate on the debt markets, the Treasury ups the ante: today 9 billion 12-month BOTs will go, plus 3 billion 12-month BOTs whose last issue dates back to last May: no less than 8,25 billion overall offer against the only XNUMX billion maturing.
In Milan, almost all the banks recovered the morning's decline and closed with good increases. Understanding rose by 0,9%, Unicredit gained 1,2%, Banco Popular advanced by 1,7%, Ubi +2,7%. Negative closure for MontePaschi -1,5% and Mediobanca –0,1%. Among the insurance Generali gained 2,1%. Following the announcement of the final outcome of the capital increase, Fondiaria-Leaves fell 5%, Unipol it fell by 2,5%. Milan Insurance it lost 2,1%.
Black day across Europe for the luxury sector, dragged down by Burberry which plunged 20% in London after announcing its second profit warning in two months. CEO Angela Ahrendts has announced that profit for the year ending March 2013 will be at the low end of the previously announced range of estimates, which range from £407m to £454m. The average earnings forecast by analysts was 430 million. Burberry speaks of a general slowdown in the sector globally.
In Milan Ferragamo fell by 5%, Tod’s -3,5%Luxottica -1,7%. In Paris lvmh, the global luxury giant, lost 3,3%, Swatch -2,1%, in Frankfurt Hugo Boss -8%. On the contrary, strong recovery in the final also of industrial stocks: Fiat +1,6%. At the Chrysler dealers' convention Sergio Marchionne confirmed the arrival of Alfa Romeo in the USA in 2014.
Negative closure for Fiat Industrial, down 0,9%, after Morgan Stanley lowered its recommendation to equal weight da Overweight. Finmeccanica + 0,9% StM +3,8%, driven by the effect of Apple (of which it is a supplier of mems memories). Among the mid caps, Rcs marked another maxi-rise of 17%.
We will talk about the industrial plan for the relaunch of the RCS Mediagroup group "after the shareholders' meeting on 16 October" after the necessary measures "to address the undercapitalization of the company". This was stated by the chairman of the RCS board of directors, Angelo Provasoli, as he left the group headquarters where an extraordinary board meeting was held on stock options, which lasted about two hours. To those who asked him, in the face of the strong movements in the stock that prompted Consob to turn on a beacon, whether the company is scalable, Provasoli replied: “It seems to me that it is concretely improbable. I'd be calm."
