OBAMA: "THE EUROPEAN RESPONSE TO THE CRISIS IS INSUFFICIENT"
Europe's response to the crisis "is not enough". Word of Barack Obama who took the opportunity of a round table with the Hispanic community to intervene harshly, for the second time in a few days, on the response of European governments to the threat of recession which is "entirely unsatisfactory". "Most of the problems we have had in recent months - said the president - depend on the fact that in Europe we have not seen the necessary measures taken to deal with the crisis of the banks and the financial system". The president retorted to Wofgang Schaeuble, German Finance Minister: “Europe's problems are not the cause of the United States' problems. Even if Obama thinks otherwise”.
WALL STREET IN FALL: S&P -2%, NASDAQ -1,6%
Falling final on Wall Street after a nervous session, punctuated by declarations, often of the opposite sign, arriving from Europe. In the end, the feeling prevailed that there was still a long way to go for effective intervention on debt crisis hotbeds. And so, in the final, the Standard & Poor's 500 shows a loss of about 2%, followed by the Dow Jones Industrial, down 1,6%. The Nasdaq lost the most: -1,6%.
BANKITALIA, SQUINZI: "THE APPOINTMENT MAY BE POSTED TO THE END OF OCTOBER"
“Today's meeting was just routine. By now everything should arrive at the next council meeting on 24 October. There they will tell us something. At the moment there has been no communication from the government". So says Giorgio Squinzi, president of Mapei and vice president of Confindustria but also a member of the superior council of the Bank of Italy, interviewed on the sidelines of the World Regions Forum in Milan yesterday evening. Of course, an extraordinary convocation of the Council which will have to examine the candidacy of Mario Draghi's successor at the top of the Bank of Italy can arrive at any time.
But, as Squinzi said, there is a real risk that the paralysis imposed by Giulio Tremonti's insistence in favor of Vittorio Grilli will cause the choice to be postponed to exactly one week from Draghi's entry into the ECB: yet another gratuitous, bad impression for Italy. Luckily, he probably won't be like this. Faced with the risk of subdivision of the seat that enjoys greater authority, the antibodies activated by the Quirinale downwards to protect the independence of the Bank of Italy, represented by the investiture of Fabrizio Saccomanni, are about to be triggered.
TRICHET'S LETTER, A GOVERNMENT PROGRAM
The publication in Corriere della Sera this morning of the letter dated 5 August sent to the Italian government by Mario Draghi and Jean-Claude Trichet in which the "conditions" (moreover widely known) for the match helped to remind us of the political importance of the match start of Btp purchases by the ECB. It is a real government program in which the executive is ordered to initiate those measures (liberalisation, privatisation, job flexibility, interventions on the cost of public employees) necessary to reassure the markets and EU partners. An intrusion of the "marketers" that Tremonti has not digested.
BPM, THE BANKITALIA INSPECTION ARRIVES
By chance, in the decisive hours for the investiture of Mario Draghi's successor, the always critical case of Bpm, i.e. the bank in which Giulio Tremonti and Umberto Bossi managed to impose their candidate, exploded in Milan , Massimo Ponzellini, in agreement with the internal trade unions. After the board marathon, which in the night between Tuesday and Wednesday practically ratified a list of 11 directors (out of 19) of the new supervisory board and the entire management committee (5 out of 5), decided in a meeting of friends of the Bpm, but in which the "notables" of the internal union took part, something not foreseen by the statute, the Bank of Italy's Supervision took the field.
An inspection is underway aimed at ascertaining the existence of a link between whoever manages the Bank and the Friends of Bpm, or rather a perverse plot which weighs heavily on management choices. The rules established in a confidential document for a preferential lane for appointments and promotions in Piazza Meda go in this direction, but also the modalities of the agreement between the Amici, the Bonomi group and Mediobanca, which leads the consortium for the next increase of capital and which played a decisive role in blocking the way for Matteo Arpe.
After the inspection, the Bank of Italy, which is responsible for approving the new statute, could freeze the right to vote for the Amici in the next meeting on 9 October. Via Nazionale can count on the full support of the national secretariats of the trade unions. Yesterday the Fiba Cisl resigned the secretary of Bpm Franco Filettini, denouncing "the worst corporate culture". One wonders what would have been the behavior of the Supervisory Authority in the event of a greater influence of politics, see the Ministry of Economy and Umberto Bossi, deployed for Vittorio Grilli as "from Milan", on the Bank of Italy.
GREECE, IT'S A CLASH BETWEEN BERLIN AND PARIS
"This crisis represents the baptism of fire for our generation." Thus José Manuel Barroso, president of the Commission, in the European Parliament on the occasion of the debate on the introduction of the tax on financial transactions. And, above all, on the eve of the Bundestag's vote on strengthening the state-saving fund. “We are at a crucial moment in our history – added Barroso -. If we don't proceed on the road of unification, we will soon separate”. And again: “Greece is in the eurozone and will stay there”. While Barroso ended his speech to applause, the tug of war continued between the Germans and the Dutch on one side and France, backed up for the occasion by Joseph Ackermann, CEO of Deutsche Bank. The German government insists on revising the terms of 21 July: the agreement envisages too few sacrifices for the banks compared to those asked of the states, ie the taxpayers. “But if we reopen the negotiations – warns Ackermann – we risk blowing everything up”. It is probable, however, that this is precisely the intent of the hawks. Omar Issing, one of the fathers of the euro, has come out in the open: "Greece – he said – must be put out".
FINLAND APPROVES STRENGTHENING OF EFSF
There is no shortage of positive news. The Helsinki Parliament has approved the strengthening of the state-saving fund (EFSF), which will have a dowry of 440 billion dollars. Meanwhile, tomorrow the representatives of the EU, the ECB and the Monetary Fund, the so-called Troika, will be in Athens to resume the discussion on what guarantees the Papandreou government is able to give to obtain the mid-October aid package.
HEDGE FUND CRISIS, MAN GROUP IN FREE FALL
Warning on the hedge front. Shares in Man Group, the world's second-largest hedge fund, lost 40% on the London Stock Exchange yesterday after it revealed it suffered $7,1 billion in customer buyouts in the recent quarter. Assets under management fell by 6 billion from the 71 already under management.
BAGS DOWN: MILAN -0,4%, PARIS -0,9%, FRANKFURT -0,8%
After three days of rising, the European stock exchanges backtracked yesterday, in a nervous session, characterized by continuous ups and downs: few trades and a lot of volatility. The FtseMib index of Milan finished down by 0,4% after a grueling series of swings between positive and negative changes. Paris lost 0,9%, Frankfurt -0,8% Consob extended the restrictive measures on short selling to 11 November and the disclosure obligations on significant bearish positions to 25 November. According to a note published on the commission's website, the assessment of the measures adopted was made "in close cooperation with the authorities of the other countries (France, Spain, Belgium and Greece) which have adopted similar measures and under the coordination of the 'Esma”.
A particular day on the government bond market where all yields rose, especially that of the 2-year German Bund, back above 2% (it hadn't happened since 5,61 September). The yield on the ten-year BTP rose to 6% (+363 basis points) and the spread remained unchanged at 1,362 points. The euro continued to strengthen and was trading at 1,358 against the dollar yesterday evening, from 0,8 at the previous close. The worst losses on the Piazza Affari list concern oil stocks: Eni -3,1%, Saipem -4,3%, Tenaris -2%. On the other hand, all the utilities closed with profits: A2,3A +0,5%, Enel +1,6%, Enel Green Power +1,3% and Atlantia +XNUMX%.
Day of strong increases for Lottomatica +2,5% and Impregilo +3,4%. For the banks, the bitter battle between bulls and bears has ended almost in parity. The following rose: MontePaschi +0,7%, Banco Popolare +0,8%, Pop Emilia +0,1%, Mediobanca +0,2%. Reverse for Intesa -0,1%, Unicredit -0,1%, Pop.Milano -1,5% and Ubi -2%. Profit taking was felt on industrial stocks: Fiat Industrial -2,9%, Prysmian -2,2%, Stm -1,9%.
GM-UAW AGREEMENT, COSTS INCREASING FOR THE COMPANY
The contract signed in Detroit between the Uaw and GM will lead to a 1 percent increase in costs for the company. "It is an excellent deal both for us and for the employees - said Dan Ackerson, CEO of the group - and it is proof that this is truly a new GM". The company expects to recover two-thirds of the employee bonus in cost-cutting. In this way the disbursement will not exceed 215 million. The blue overalls hired in times of crisis will not participate in the benefits of the company's pension fund which, for the first time since 1953, has not granted increases to pensioners.
In return, GM pledged to reopen the Saturn plant and bring 6.400 jobs back to the US. It is unlikely that the Chrysler contract will have very different conditions, even if before sitting down at the table with Sergio Marchionne, UAW leader Bob King intends to close with Ford. But the exchange between wage moderation and investments seems to be the obligatory path: it is increasingly easier for the center of gravity of the new Fiat/Chrysler models to move across the Atlantic.
TELECOM ARGENTINA WANTS YOU TO GROW
TI CEO Marco Patuano said yesterday that Telecom is interested in increasing the stake in Telecom Argentina: "We are particularly interested in raising the stake but at economically rational conditions," said Patuano, adding that the company is "evaluating and discussing” this possibility. As of June 30, 2011, Argentina accounted for 10% of revenues.
If we also count Brazil, South America accounts for 34% of turnover. Faced with the stagnation of revenues on the domestic market, and in particular from furniture, the group's strategy is to strengthen itself in the South American continent, where it recently announced that it will participate in the recapitalization of the Brazilian subsidiary for 480 million euros. Patuano also confirmed the targets set by the company for 2011, underlining that "the summer was in line with expectations".
EDISON, DELMI BOD ON THE EXIT TODAY
“Giving the put, i.e. the price and methods of exit of the Italian shareholders grouped in Delmi in favor of EDF in three years; align Iren's interests with those of Delmi and verify if the March draft is still valid also for the French". Here are, in the words of the vice president of A2A Rosario Bifulco, the objectives for closing the Edison deal as quickly and in the best possible way, after any possibility of opposing the sale to the Parisian shareholder has vanished. Today it will be up to the Delmi council to formalize the decision and choose the "ambassador" who will have to negotiate the exit.
The March agreement provides for EDF to take the majority of Edison's capital, the Italian shareholders to go into the minority and the unpacking of the nine Edipower plants among the various shareholders. But an immediate exit cannot be ruled out. In the eyes of the market, the definition of the price is crucial, also as a reference for any mandatory takeover bid on minorities.
