GERMAN CONSTITUTIONAL COURT SAVES GREECE
THE RESCUE OF ATHENS IS LEGITIMATE. THE BAGS TOAST
The appeal filed to block Germany's participation in the Greek rescue was rejected today by the German Constitutional Court, which however established a more complex approval process for the next rescue operations. Financial markets breathed a sigh of relief, although the decision was expected. In the wake of the news, the main European financial centers expanded their gains: in Frankfurt, the Dax30 rose by almost three percentage points to 5.347,24 points, while the French Cac40 index recorded an increase of 2,8% to 3.047,8. 100 points. The Ftse2,20 also performed well, with a gain of 5.270,8% in London to 0,8. The enthusiasm has also infected the currency market. The euro extended its gains against the dollar, showing an increase of 1,4148% to XNUMX dollars.
BUSINESS CENTER BOUNCES (+2,9%) IN VIEW OF THE MANEUVER
REVENGE FOR CARS AND BANKS. THE BTP/BUND SPREAD FALLS
The maneuver in its final look pleases. This morning Piazza Affari found the buyers lost in recent weeks, also due to the extreme uncertainty on the front of the correction of public finances. The Milan Stock Exchange is recording a rise of 2,95%. In addition, this morning the yield on the ten-year BTP fell to 5,40% and the spread with the Bund narrowed to 357 basis points. Among the Milanese blue chips, stocks in the auto sector rebound strongly, among the most sacrificed in yesterday's session. Fiat scores + 5,7% (+7,7% for privileges) and Pirelli +4,9%. The safe of the Agnelli group, Exor, gains 3,9%. Great performance by Eni +2,92% as the downward pressure on oil prices eases. The VAT increase does not matter.
The news that Sergio Marchionne has also assumed the position of president of Chrylser as well as CEO is welcomed in a positive way. Among the banks, Unicredit shines in particular +3,71% after the fall on the eve. Monte Paschi scores +4,3%, Intesa +2,7%, and Banco Popolare +3,4%. Among the special titles, Biesse +7,7% deserves a mention; the pocket-sized wood multinational, with the assistance of P&T, the Asian subsidiary of Tamburi ed Associati, went shopping in China by acquiring control of the Center Gain group in Hong Kong which operates in the wood machinery sector. Impressive leap of EEMS (+20,24%), after the record results achieved in the installation of solar panels.
Over the course of the day, in addition to the vote of confidence in the Senate requested by the government on the amendment to the economic package and the sentence of the German Constitutional Court, other crucial appointments are scheduled for the eurozone.
The outcome of the Portuguese government bond auction will be known later: Lisbon will offer three-month bonds this morning with an offer range of between 750 million and 1 billion euros. In Strasbourg, the EU commissioner for monetary affairs, Olli Rehn, will report on developments in the Greek debt crisis.
Yesterday a source close to international creditors confirmed that Athens, without submitting a formal request, has asked to speed up the payment of international aid envisaged in the second bailout plan to cover a deficit higher than forecast. In the meantime, German Chancellor Angela Merkel warns that "the euro cannot be allowed to fail and one cannot want it to fail". The single currency “is the guarantee – added Merkel speaking to the Bundestag – of European unity” .
The rise in VAT to 21% (from 20%) in Italy will have a negative impact on the auto sector. Chrysler's board of directors changes to make room for two members appointed by Fiat while three members appointed by the US government at the time of the bailout are leaving. CEO Sergio Marchionne also assumes the role of president of Chrysler in place of an outgoing director. Finally, according to local press sources, Volkswagen is planning a one-week production stop at a Brazilian plant to reduce the existing stock of cars.
