The markets had another exciting day. At Piazza Affari the Ftse Mib recorded an increase of 4,9% to 14.811 points and the Ftse All Share 2,99% to 15.321 points. The Frankfurt Stock Exchange +5,29% and that of Paris +5,74%, London +4,02% are even more effervescent. A bubbly morning also on Wall Street: the Dow Jones rose by 2,2%, the Standard & Poor's 500 by 2,1%. Merit of the expectations on the super anti-crisis plan of 2000 billion euros and the rumors about a new monetary policy intervention by the European Central Bank.
This is also thanks to the words addressed by Angela Merkel to the Greek premier George Papandreou hosted by the German Confindustria: Greece is on the "good track" with the "privatization" plan and the "political and administrative reforms", said the Chancellor. But on the other side of the ocean, US Treasury Secretary Tim Geithner continues to scold the allies: “Europe – Geithner said in an interview broadcast overnight by the ABC – still has 'some time, but not Very". In the meantime, the euro appreciates to 1,362 against the dollar from 1,353 yesterday evening. The propensity for risk rises and the positions considered safer are lightened. Raw materials and precious metals are recovering after the recent slides: gold rises by 2,6% to 1670 dollars, silver +7% to 33 dollars. WTI oil rose by 2,5% to 82,30 dollars a barrel, Brent +1,1% to 105 dollars.
AUCTION OK FOR BOTS, RISING RATES
THE BTP/BUND SPREAD DOWN TO 362
Good news also on the government bond front The yield on the BTP drops 4 percentage points to 5,56% and the yield on the bund jumps to 1,94% (+13 basis points): the Italy-Germany spread drops to 362 basis points from 380 yesterday and 390 on Friday. In the peripheral area, the bonus, the yield on the government bond of Spain, is doing better, losing 11 basis points and reaching 5,01%: the Italy-Spain spread is 55 basis points in favor of Spain. But in the morning the Treasury had placed eight billion semi-annual bills at a rate of 3,071%, the highest since September 2008. At the same time, 3,5 billion Ctz were assigned with a yield of 4,511%, a record since July 2008, against 3,408 % of last August. Investor demand for the CTZ, zero coupon Treasury certificates, was more than 1,5 times the supply.
In Piazza Affari the banks are in the limelight: Unicredit +6,86%, Intesa 5,75%, Ubi +7,14%. Insurance companies and companies involved in finance are also advancing. Generali +4,28%, Fondiaria Sai +3,86%, Mediolanum +4,91%, Banca Generali +8,53%. Eni is up 5,1%. The company has started the reopening of fifteen wells in Libya's Abu-Attifeel field. Iraqi Prime Minister Nuri al-Maliki and Eni CEO Paolo Scaroni met yesterday in Baghdad to discuss the development of the "super giant" Zubair field in the center of the country. Utilities are up, in particular Enel +7,28% The Spanish government has restarted the money collection operations which will lead to the reimbursement of the utilities, Endesa will receive 780 million euros. Runs Pirelli +5,33%, Fiat +3,3%. Saipem is up by 8,28%, Prysmian by 3,99%.
BPM SPLASHES UP BY 12%, PONZELLINI OUT
EDISON, CDP ALSO WITHDRAWN
Bpm's capital increase could be reduced to 800 million euros. This is what sources report, while the Board of Directors is underway which, among other points, should also fix the amount of the operation and the share (+12,16%) is on fire on the Stock Exchange. Last April, the board of directors defined a recapitalization up to a maximum of 1,2 billion euro. Among the novelties of the new statute, currently being examined by the board of directors, is that the future managing director of Banca Popolare di Milano will also be able to hold the dual role of general manager. For the rest, the exit of Massimo Ponzellini seems probable, if the new statute is approved. And there are more hypotheses for the future: the head-to-head for the position of managing director is between Matteo Arpe and Andrea Bonomi.
Another story concerns, however, the appointment of the supervisory board. The hypothesis is gaining ground that in the future CDS there won't be many directors on the current CDA. However, the games should close by October 9, ie thirteen days before the meeting. The CDP "is not examining" an intervention in Edison. This was stated by the CEO of the CDP, Giovanni Gorno Tempini, on a possible intervention by the Italian strategic fund. Gorno Tempini then added that in Edison "there are shareholders who are looking" to solutions. A possible intervention by the CDP, through the Fondo Strategico Italiano, had been mooted in recent weeks to support the Italian shareholders against the French of EDF and unblock the impasse in the country's second largest electricity company.
