Turkish things at the weekend for stock lists. The collapse of the Turkish lira, slipped in the morning to new historic lows against the dollar (5,95 -14%) and against the euro (at 6,85, after having touched a minimum of 7,2) is putting the financial balance of the euro to the test and of the banks. The single currency fell to 1,145 against the dollar, below the important threshold of 1,150 and last year's minimum. The dollar-lira cross, despite the latest government interventions to support the currency, reached a new all-time high of 5,92 (+6,7%). The debt market is under pressure.
This morning the Treasury placed 6 billion 12-month BOTs, with a yield of 0,679%, the highest since January 2014, up 34 basis points from the July auction. Demand is on the rise (1,79 times the coverage ratio). Lospread climbs back to 260 points,
In Piazza Affari, the index falls by 1,6% around 21.600. The other markets were also weak: Paris dropped 1,3%, Madrid 1,2%. The fall of the Turkish lira affects the euro, which fell to 1,145 against the dollar, below the important threshold of 1,150 and last year's low. The Bund rose, whose yield fell to 0,34%, from 0,37% yesterday. The spread widens to 258 basis points, the highest in the last two months. The German Stock Exchange, in light of the close relations between Berlin and Turkey, is even worse: -1,66%.
Why the crisis in Ankara? Financial tensions are intertwined with political ones: Turkey, in fact, has imprisoned a US religious, unleashing the ire of President Trump. That's not counting the sanctions on Iran. The interventions of Erdogan's government to curb the crisis have been of no avail, at least for now. But the sultan does not intend to bow to the markets, which are demanding more attention to the debt and a slowdown in growth under the banner of grandeur: 'If they own the dollars, we have our people, our rights and our Allah" he has already said awaiting the speech he will give in the afternoon in Bayburt, a city of less than 60 inhabitants which, by an overwhelming majority, voted in June to re-elect him with expanded powers.
The sales are raging on the securities of institutions which, according to the Supervisory Mechanism of the ECB, are more exposed to Turkish finance: Unicrediti, which owns 40,4% of Yapi Kredit, the fourth largest bank in the country, is exposed for 17 billion credits , more than double the position of Bnp Paribas. The Spanish group BBVA boasts 83,8 billion credits.
Unicredit suffers -3% as well as BBVA -3,5% and BNP Paribas. Astaldi is also very bad - -2%, linked to the fate of the sale of the third bridge project on the Bosphorus. Brent oil is at a three-week low at $71,9 a barrel. Eni -1,4%, Saipem -0,8%. participating in a tender for a gas pipeline in Kuwait. Stm -4,8% fell sharply, the worst on the list after the veteran in the chip sector arriving from Morgan Stanley. Fiat-Chrysler -1,6%.
Among the insurance companies, UnipolSai stands out +2,5% after the accounts. The company, the best on the list. it closed the second quarter with 221 million euros of pre-tax profit, up 19,5% year on year. Net profit of 172 million euros. Combined ratio at 93,3% at the end of June, an improvement from 95,6%. Unipol +1,6%, closed the quarter with €157m, from -€596m a year earlier. Generals -1,2%. In the Star index, Datalogic does very well +2,4% after the excellent half-year results achieved.
