Day of sales on the markets with the euro renewing its two-year low. Investors are weighed down by fears about growth and disappointments about the Fed's minutes, which is divided on possible measures to support growth and has not given any indications in this sense in the short term.
Milan leads losses at -2%despite the successful outcome of thebot auction in the morning. The Treasury has assigned all 7,5 billion euro of one-year BOTs, recording an average yield down to 2,697% from the 3,972% of the mid-June auction. It should also be noted that overnight deposits parked by banks have fallen to their lowest in almost seven months Eurozone banks in the coffers of the ECB, at 324,9 billion, the lowest level since last December 21, from 808,5 billion the day before. Just yesterday, the zero rate on deposits decided by the ECB last week (together with the cut in the cost of money to 0,75%) was triggered with the aim of putting liquidity back into circulation and stimulating credit.
The other European markets are in red, albeit with more contained declines: Frankfurt -0,53%, London -0,99% and Paris -0,70%. On the French list difficult day for Peugeot which has reached an all-time low. Today the group announced the cut of 8.000 jobs in France and the closure in 2014 of the historic plant in Aulnay, near Paris, where 3.000 people work. The Rennes site will also be affected by layoffs, with an announced cut of 1.400 jobs out of a total of 5.600. The stock has hit an all-time low. Only Madrid (-2,5%) did worse than Piazza Affari.
Widespread sales also on Wall Street. At the close of Europe, the Dow Jones was down 0,33% and the Nasdaq down 1,20%. The euro-dollar exchange rate drops to 1,2195, WTI oil to 85,10 dollars a barrel. Tensions are once again created on the government bonds of Italy and Spain: the Btp-bund spread rises to 466 basis points from 453 at the opening with yield at 5,91% and the Bono bund spread at 438 from 429.
ECB, STILL UNEMPLOYMENT EMERGENCY
SURPRISE RATE CUT BY THE CENTRAL BANK OF KOREA
Il monthly bulletin of the ECB he renewed the unemployment alarm which does not seem to show signs of improvement in the coming months and expressed fears on the Eurozone's recovery capacity due to high unemployment and debt tensions.
La BoJ he left rates firm near zero but ruled out further quantitative easing measures. The governor of the Bank of Japan said that the crisis in the Eurozone is the first problem of the prolonged slowdown in the world economy and that the turbulence "of the European debt would need stronger attention". Signs of slowdown also from emerging economies where central banks have cut the cost of money: for the eighth time since August the Brazilian central bank and unexpectedly for the first time in three years the Bank of South Korea.
REQUESTS FOR UNEMPLOYMENT BENEFITS DECREASE IN THE USA
It doesn't help in this context the good data on US work which beat expectations: unemployment claims fell by 26 units to 350 in the week ending July 7, marking the largest drop since last January, with claims down to the lowest level since March 2008.
Piazza Affari is a carpet of minus signs. Only A2a A +0,19% goes against the trend. Telecom Italia collapses amid downward suspensions -6,47%, on fears of a slowdown in activities in Brazil which in May marked an unexpected fall in retail sales. There are therefore also fears for telephone consumption.
Among the worst of the Ftse Mib the Bper -4,52%. The other main banking groups are also in the red. Unicredit -2,44%, Intesa -1,73%, Mps, -1,39%. Mediobanca -3,72%. Spanish banks are also under pressure. Credit Suisse reduced the recommendation on the BBVA stock to Neutral from Outperform by cutting the target price to 5,5 euros from 6,5. The target price has also been cut for Santander, to 4,6 euros from 5,4. At the bottom of the list is still luxury with Tod's losing 4,37% and Ferragamo 4,14%.
FONSAI, GREEN LIGHT TO PROSPECTUSES FROM CONSOB
IMPREGILO, SHAREHOLDERS' MEETING POSTPONED TO JULY 17
Matches of the day are though Fonsai -11,46% and Impregilo -1,56%. The insurance hub obtained the expected green light from Consob for the prospectuses of the capital increases, after already postponing the start of the increases last Friday. The two operations will thus start on 16 July. As specified in the note released by Fonsai, Unipol is expected to irrevocably undertake towards the company to subscribe in full any category B savings shares that may have remained unopted following the outcome of theoffer on the stock exchange, for a maximum amount of approximately Euro 182 million. The final conditions of the increase remain those approved by the Board of Directors on 5 July. The capital increases are a crucial step in being able to complete the operation of the great Unipol. But Sator and Palladio they will not throw in the towel: in the next few days they will present an appeal to the Council of State against the Tar order which rejected the request for suspension presented by the two funds against the Isvap provision which authorized Unipol to take control of Fonsai.
And the long day of the Impregilo meeting which saw the duel between Gavio and Salini it closed with a final vote which ratified the postponement of the meeting for 5 days, to 17 July next, and rejected the proposal made by shareholder Igli to extend the meeting until 3 September next. The postponement to September did not pass due to the lack of an absolute majority. “It's not a market decision – commented Pietro Salini, of Impregilo – but we can't oppose it. We need the Carabinieri”. In this assembly, Salini collected 7,8 million proxy votes and Gavio just 1,5 million. The biggest change is the role of Amber: the fund, already the second largest shareholder with 5%, has officially risen to 7,2%
