The Stock Exchanges resisted the S&P shock: the Ftse Mib rose by 1,40%, the Cac by 0,89%, the Dax by 1,25% and the Ftse 100 by 0,37%. Thanks to the closure of Wall Street for Martin Luther King Day, the backlash comes after the successful outcome of the French auction of short-term securities: good demand and falling yields. The spread on the French 126-year bond is also down to 485 points, as is the Btp-bund differential, swinging up to XNUMX basis points.
Yes, because, as the investment banks point out, the news of the downgrades had already been discounted by the market. Yet, especially for Italy, which drops to Bbb+, despite the enormous efforts to restore the accounts, also recognized in Europe, the technical consequences of the S&P decision are a real "slap", as Minister Fornero said . In fact, many institutional funds cannot purchase securities that do not have at least a single A rating. It is no coincidence that today operators have reported purchases of government securities by the ECB, which since last week has already tripled its purchases of bonds on Italy and Spain.
On Wednesday, Prime Minister Monti will be on a mission to the City to meet Prime Minister Cameron and persuade investors of the solidity of our debt, which is much more reliable than it appears to foreign eyes. On the other hand, Monti's judgment on S&P's move is clear: "For Italy, the positive action of the Italian government is strongly underlined and the inadequacy of the governance of the Eurozone is pointed out".
The Premier met today in Rome with Herman Achille Van Rompuy, president of the European Council, who promoted Italy's efforts. And in an interview with Finnish TV, he lashed out harshly against the big US sisters: "The rating agencies - he said - are not impartial research institutes but they have their own interests and play their role very much in line with the financial capitalism USA”.
SARKOZY POSTPONES THE SUMMIT TO THREE
GREECE, WEEK OF FIRE
While Sarkozy prepares to explain the new measures of the Elysée to the French in the aftermath of the triple A cut next Sunday and the presidential elections are approaching, the French president has obtained the postponement of the three-way meeting with the Italian premier Mario Monti and with German Chancellor Angela Merkel scheduled for this Friday in Rome. The new summit should be held in February. But in Greece, after the suspension of negotiations between private creditors and Athens on debt, this week is entering a crucial week to avoid default. According to the Financial Times, Greece's creditors are considering asking the leaders of France and Germany to intervene to unblock negotiations on the amount of losses that banks and other creditors must close in a short time. In the meantime, the troika inspectors (ECB, EU and IMF) will be in Athens on 20 January to discuss the second bailout package for Greece. The euro is up slightly above the dollar at 1,265.
WATCH OUT FOR BANKS
ECB DEPOSITS TO THE STARS
As the January 20 deadline set by the EBA for the recapitalization plans of European banks approaches, the ECB, which intervened to rescue the sector in December with unlimited 36-month refinancing, signals a new record for one-day deposits of Eurozone banks at the ECB: overnight deposits exceeded 490 billion on Friday evening, up from 493,3 billion the day before at 489,9 billion. It is the highest level since the introduction of the euro. Overseas, moreover, a week of results opens for Goldman Sachs, Morgan Stanley, Citigroup and Bank of America which, however, according to the Financial Times, could undermine the optimism on the American recovery.
GOLDMAN'S BUY PUSHES FIAT
FONSAI, UNIPOL DUE DILIGENCE UNDERWAY
In Piazza Affari, Fiat shines (+7,04%) and the whole Agnelli galaxy (Exor +6,58%) in the wake of the judgment of Goldman Sachs, which confirms its buy on the Lingotto in the "Conviction buy list." Fiat Industrial also rose by 3,93%, promoted by the broker to buy. Today the group confirmed the financial targets of the 2011-2014 plan: 24 billion euro of revenues in 2011, 1,6 billion of trading profit and an industrial debt of around 1,6 billion and liquidity in excess of 4 billion. Pirelli runs (+4,93%) again thanks to Goldman who makes room for him on the "Conviction buy list". Among the major increases, Stm (+7,23%) and Ferragamo (+4,01%) stand out.
Fonsai's rebound stops (-5,22%) pending further information on a very complex operation. The CEO of Fonsai, Emanuele Erbetta, confirmed the January 27 board meeting with the 750 million capital increase on the agenda. Fonsai will ask Isvap for an extension to 28 January. Today Premafin (+0,30%), Fondiaria Sai and Milano Assicurazioni (+2,26%) approved the go-ahead for Unipol's due diligence, which should be launched quickly.
Mps leads the declines (-2,92%), but the most marked reds are transversal on the main basket: A2A loses 1,35%, Buzzi Unicem 1,37% and Parmalat 1,33%.
