Days like this are destined to remain in the history of the markets: the Black Tuesday of Russian finance; the ups and downs of oil; the tensions of Emerging currencies waiting for Janet Yellen's press conference tonight to shed light on the timing and methods of raising US interest rates. All this happened from Monday night, when Russia brought the cost of borrowing to 17% (from 10,5%), onwards.
The consequences? Great volatility on stock lists, massive purchases of bonds: the US 2,02-year T bond slips to 2,12% (from 0,566%). New all-time records for German government bonds (0,36% on ten-year), the United Kingdom and Japan (2%). The BTP is back below 1,99% (138%). The spread between Btp and Bund closed at XNUMX basis points.
BUSINESS PLACE SCALE THE ROLLER COASTER: +3,2%
It went like this on the Stock Exchanges: Tokyo, which started down, is up 0,7%, the Asia Pacific index is on positive ground. New rise in Shanghai (+1%), the highest for three and a half years. In the red Wall Street after shivering ups and downs: the Dow Jones index fell by 0,64% with a drop of 111 points, after having risen to a maximum of 246 points. The S&P 500 lost 0,5%, the Nasdaq 1,24%.
After six consecutive bearish sessions, the positive reaction of the European stock exchanges has finally arrived. In Milan, at the end of a day characterized by unparalleled volatility, the FtseMib rose by 3,2%. The index fluctuated wildly during the session, going four or five times from a 1,5% gain to a 1,5% decline. Then, in the final, the bullish surge. The other lists of the Old Continent were equally lively: London +2,1%, Paris +2,1%, Frankfurt +2,4%. Madrid +1,80%.
OIL DROP BELOW 60 DOLLARS
Not just Russia. The price of oil slips below $2009 for the first time since 60. Brent, after having touched a minimum of 58,50 dollars, closes at 59,61. The price has now halved compared to June. The data on the Chinese economy, still in a strong slowdown, gave new impetus to sales. Meanwhile, the ministers of Gulf countries, heedless of the thud of the region's stock exchanges, reiterate that crude oil production will not slow down. In Milan, oil prices rebounded vigorously: Eni +3,9%, Tenaris +4,4%, Saipem +4,8%.
THE RUBLE COLLAPSES AGAIN. COUNTER RUN IN MOSCOW
"A year ago I would not have believed it possible, even in my worst dreams, that something like this could happen." This was the comment of the deputy governor of the Russian central bank, Sergey Shvetsov, at the end of a nightmare day. The drastic increase in the reference rate (from 10,5 to 17%) did not help stop the collapse of the ruble, which fell to a minimum of 80 to the dollar, before bouncing back to around 70. The Stock Exchange, in dollars , fell by 12,33%. Government bond yields reached 15,36%.
Russia is thus experiencing the perfect storm: Western sanctions, collapse in oil prices, high interest rates and the economy in recession. The last step towards the announced disaster could be the closing of the currency borders. Hence the run on the branches: the Sberbank branch in Tversnoj Bulvar, in the heart of Moscow, closed the day with only 100 dollars in cash against 100 thousand dollars in the morning, writes the Financial Times.
WEIDMANN: Yes TO QE, PROVIDED THE ECB ONLY BUYS BUND
Hot day today on the Eurozone front. In fact, the first vote of the Greek Parliament for the election of the new president is expected today. The spread between the BTP and the Bund closed at 138 basis points and the cost of the domestic 1,99-year bond at 0,566%, but during the session the German bond rate fell to a new all-time low of 150%, widening the spread with the BTP up to XNUMX cents.
Jens Weidmann took care of warming the atmosphere: "Inflation – he said – could go down in the coming months, but even in this case monetary measures would be substantially ineffective and counterproductive". At the very least, he added, one could accept a QE based on the purchase of triple A bonds (see Germans) thus protecting the ECB's accounts. But you can't buy Btp or Bonos putting taxpayers' savings at risk.
UNICREDIT: NO DEVALUATION FOR RUSSIA
On such a particular day, Italian banks gained ground. Unicredit rose by 2,1%. The CEO Federico Ghizzoni said that the bank does not make provision for the Russian situation: "No write-downs are expected for the end of this year or for the next", underlined the manager.
Great rebound by Intesa (+4,5%). Bper (+6,6), Mediobanca (+4,3%) and Ubi (+5,7%) are doing even better. Banco Popolare +2,23%, despite Norges Bank having restated its stake to 1,960% (from 2,087%). Monte Paschi's board of directors (+3,81% after Monday's 8,1% drop) is called for tomorrow. The Board of Directors and the steering committee of the Carige Foundation is scheduled for Monday 22. It will be an opportunity to examine the status of the talks underway with potential investors in view of the next capital increase of up to 650 million by Banca Carige (yesterday +2,54 .XNUMX%).
FCA RECEIVES $3,887 BILLION FROM SHARES AND CONVERTEND
Fiat Chrysler rose by 1,4% after the good data on car sales in November in Europe: the group's registrations grew by 3,6%, against a market that grew by only 1,2%.
Company announced yesterday evening we completed the sale of 100 million ordinary shares, with a nominal value of 0,01 euros, and the convertible loan of 2,875 billion dollars. In the note released by London we read that net of expenses, approximately 3,887 billion dollars were raised with both offers. As part of the offering, major shareholder Exor bought $886 million in conversion notes, “in order to preserve its approximately 30% stake, which, after completion of the offerings, will be 29,5. XNUMX% of the share capital of FCA”.
CNH Industrial rallied powerfully by 5,2%.
THE CHINESE PUSH FINMECCANICA
Brilliant industrialists. Finmeccanica rose by 5,9%: the Chinese consortium led by Insigma on Monday delivered a binding offer for 100% of Ansaldo Breda to Ubs and Mediobanca, Finmeccanica consultants. Ansaldo Sts rose by 2,6%. The Chinese have confirmed the guarantee for a financial commitment exceeding 1,5 billion euros, through the China merchants bank (Cmb). This sum, according to financial sources, takes into account both the price for the entire share capital of Breda, which would be given a positive value, and the much higher price for Ansaldo Sts. The buyer should also launch a mandatory tender offer on the entire floating capital, at the same price paid to Finmeccanica.
StM +4,8%, Prysmian +3,9%.
CURE OF VITAMINS FOR DIASORIN
Enel Green Power goes up (+2,99%): the sale of the stake in the jv vneture Geo to the state-owned company of El Salvador Ine will produce a capital gain of around 110 million euros.
Mediaset advances (+2,95%): according to Equita, the advertising revenues of the Spanish subsidiary are up by 10%.
Finally, Diasorin + 1,7% after the FDA approved the marketing of Vitamin D 1,25 produced by the company in the United States.
