GERMANY COOLS EXPECTATIONS FOR THE OCTOBER 23 PLAN
GREECE, WORKING ON A 50% CUT ON BANKS' LOANS
The European stock exchanges are nervous again: first they reduce the rises (which reached 2% in the morning) and then they pass into negative territory, oscillating around parity. The Ftse Mib fell by 0,19%, the Cac by 0,06% and the Dax by 0,67% while the Ftse 100 resisted, rising by 0,27%. The reaction is linked to the declarations of the Finance Minister of Germany, Wolfgang Schäuble: a final decision on the Eurozone rescue program will not arrive on October 23rd. Even Chancellor Angela Merkel has given us hers by defining it an "impossible dream" to hope that the next European meeting will lead to an agreement that solves all the problems of the debt crisis.
The spread between the BTP and the Bund also rose to 360 from 350. In the morning, the sentiments of the lists were supported by the expectations that Europe will be able to quickly develop a concrete plan to deal with the crisis after the ultimatum arrived from the G20. No postponement is allowed anymore, the representatives of the USA, Great Britain and Canada repeated: the plans for the strengthening of the banking system and for the consolidation of the sovereign debt must be ready for the European summit on Sunday 23 October to then be examined of the G 20 of 3-4 November in Cannes.
On the table is the recapitalization of banks (50 are those of systemic importance identified by the G20), the expansion and role of the EFSF state-saving fund (which currently has a capacity of around 440 billion) and the plan to avoid Greece's default . On this front, the orientation that emerged from France and Germany is to increase the share payable by individuals, ie banks, the famous haircut (cutting) on loans which could reach 50% from the initial 21%. To convince the banks to accept a cut of this size, the German government would be making use of the mediation of the managing director of Deutsche Bank, Josef Ackermann, according to reports from the tabloid Bild.
BUNDESBANK, GROWTH PROSPECTS WORSEN
PHILIPS RUNS AFTER THE ANNOUNCEMENT OF THE CUTS
The euro, after rising close to 1,39 on the dollar on Friday, weakens to 1,384. Oil is up on the New York electronic market at 87,71 dollars a barrel. However, there are new fears on the economic recovery front: in its monthly bulletin, the Bundesbank states "Germany's growth prospects have worsened with companies cutting their estimates and with foreign orders falling". The following macroeconomic data are expected from the United States in the early afternoon: at 14.30 pm the New York Fed data on the manufacturing sector for October and at 15.15 pm the month-on-month industrial production for September. Highlights today are Philips running after above-expected quarterly results and the announcement of 4.500 job cuts due to margins down 50% from a year ago. Asian stock exchanges are also doing well (Tokyo + 1,5%, but camera manufacturer Olympus is falling) and US futures are also positive.
FOR SAIPEM CONTRACTS FOR 1,5 BILLION DOLLARS
BANKITALIA IMPOSES CHANGES TO BPM'S GOVERNANCE
Saipem (4,89%) runs in Piazza Affari, which brought home new contracts for 1,5 billion dollars and Tenaris (+3,68%). Strong increases also for Buzzi Unicem (+3,14%) and Pirelli (+2,81%). Mediaset did well (+2%) on developments in the Endemol affair. The banks are also in green with Banco Popolare rising by 2,2% while Unicredit has reduced the increase by 3% and travels around +1,16%. Intesa rises by 1,2% while Banca Popolare di Milano moves against the trend with a drop of 2,12% after Bankitalia approved the new statute but imposed some changes to governance including the increase in voting proxies from three to five and the elimination for the management board of the obligation to comply with the binding opinions of the supervisory board on certain matters.
He also called for "veto rights" for institutional investor representatives in the appointment of management board members. Piazza Meda enters the hot week before the shareholders' meeting on Saturday 22 October for the appointment of the new Supervisory Board: tomorrow the board of directors dedicated to the "easy careers" dossier is held, in particular on the documentation that Bpm must present at the request of Consob regarding the appointments made in the last 5 years.
DIASORIN PAYS FOR THE REVIEW OF THE ESTIMATES
MAFFEI SUSPENDED AWAITING COMMUNICATION
Diasorin collapses by 7,7% after the downward revision of the estimates for 2011. Lottomatica (-1,08%) Prysmian (-0,97%) and Campari (-0%) are also among the biggest falls. Borsa Italiana then communicated that the ordinary shares of the Minerali Maffei Group are suspended from trading for today's session pending a press release.
