SPREAD BTB-BUND UNDER 400 DRAGONS.
THE EUROZONE IS MAKING NOTABLE PROGRESS
While the cabinet also approved the decree on simplifications, from Davos the financier George Soros, who years ago knocked out the British pound, sends his approval to the Monti government: "Italy has changed pace and is now introducing the necessary reforms," he said . Soros then also speaks of the BTPs: "I think it is speculation: they are very attractive securities, but a very risky speculation, since, if things were to go wrong and the return were to rise to 10%, then a large part of the money invested would be lost". The ten-year BTPs, he says, would be a less risky investment if the rate fell to 4-5% while at current rates "for Italian banks, buying Italian bonds is practically risk-free since if Italy jumped, then automatically they would also credit institutions".
today Italian treasure has placed successfully and rates down 11 billion bots. In detail, it placed 8 billion six-month BOTs with an average yield of 1,969%, a sharp drop compared to the 3,251% recorded in the last sta at the end of December. It is the first time since last June that the yield of 6-month Bots falls below 2%. Good demand, amounting to about 10,7 billion. The auction then involved 3 billion Bots maturing on December 27, 2012, with a yield of 2,214% and requests for around 5,4 billion.
After the auction the Btp Bund spread it began the descent which took it below 400 during the day with a yield of 5,85% while at the close of the markets it was hovering around 403 points. "It's a positive sign but the tensions on the interbank market don't allow us to say that the system has returned to normal functioning", Draghi commented today from Davos. But he stressed that "Markets are exaggerating the risk of government debt and this can go on for a while longer." According to the ECB president, the Eurozone has made "remarkable" progress and a huge credit crunch has been avoided.
US GDP WORSE THAN EXPECTED
ACKERMANN, READY TO ACCEPT A NEAR 70% CUT
La shot in the arm on the government bond front he loosened the pressure on the bags after a difficult start to the session, but the pause was brief and the losses widened again. The Ftse Eb closed down 1,02%, the Dax by 0,43%, the Cac of 1,32% and the ftse 100 of 1,07%. TO Wall Street shortly after the European markets closed on Dow Jones drops 0,75% while the Nasdaq travels around parity. In the afternoon she weighed US GDP data which in the fourth quarter grew by 2,8% (interim review) against the expectations of +3% by analysts. But it goes up in January consumer confidence. The index ofUniversity of Michigan it increased in the final figure to 75 points from 69,9. A value that beats analysts' expectations by 74,1 points and improves the preliminary reading which stands at 74 points.
On the markets, the uncertainty linked to the negotiations in Greece which leaves room for profit taking. The EU Commissioner for Economic and Monetary Affairs Olli Rehn he relaunched optimism: “If not today, the agreement on Greece will still be reached by the end of the month. So within the next three days, which will be crucial." On the private creditors front, he also made his voice heard Josef Ackermann, the president of Deutsche Bank, who as IIF president is negotiating with Athens the cut of the Greek debt in private hands:”We have done a lot. We are ready to accept a cut of almost 70%”. However, the guard remains high on the Portugal: this morning credit-default swaps on Portuguese debt soared to record levels reaching 1.430 basis points, also a record for the 1.300-year spread, for the first time since the birth of the euro at over 1,3180 cents. The euro is trading at XNUMX.
UNICREDIT IN RED, CLOSES THE RECAPITALIZATION
FONDIARIA SAI DOWN ON FEARS OF A 1 BILLION INCREASE
A business square, despite the drop in the spread, the list yields under the weight of the bankers who closed the session yesterday with strong gains. Unicredit it yields a good 4,50% on the last day in which it is possible to exercise the rights for the increase which is starting to be fully booked. Among the new entries several Italian entrepreneurs such as the Roman builder Francesco Gaetano Caltagirone. Who yesterday resigned from the position of vice president and left the board of directors Ps. After yesterday's leap, MPS stock is now down 3,34%. bpm loses 3,43% . Understanding yields 0,69%.
Strong sales on the Ftse Mib also on Fiat -4,26% and Buzzi Unicem-3,94%. Fondiaria-Sai, no longer on the main basket, fell by 6,72% on rumors of a heavier-than-expected forthcoming capital increase. The capital increase could in fact rise to 1 billion from the 750 million already approved by the company's board of directors. This is what the Messenger anticipates by revealing that they are pushing in this direction the large cooperative shareholders of Unipol, eager to do a radical cleaning of the Ligresti group with asset write-downs.
AFTER THE RESULTS, FERRAGAMO GOES ON THE BUY OF DEUTCHE BANK
ENI, FULL FOR THE ONE BILLION BOND
In Ferragamo rally +7,19% later the buy of Deutsche Bank and following the publication of the preliminary accounts with a leap in revenues of 26,2%. Also in the light Tod’s +2,36%, Stm +1,89% and Ansaldo Sts +1,48%. Eni (-0,94%) sold out the one billion 8-year bond issue reserved for institutional investors. The request was made by over 700 international investors, mainly from UK, France and Germany.
