Continue the moment of glory for Unicredit galvanized by the interest ofthe Pamplona fund. The stock closed up by 3,82%, in decided contrast with the sector, and dragged with it the Ftse Mib +0,67%. It is indeed Milan is the only one of the main European markets that manages to close in positive territory, after a day lived in ups and downs, between the auction of ten-year and five-year BTPs, inflation rising to 3,3% communicated by Istat and the alarm raised by the Confindustria study center: "The economic damage caused so far from the crisis are equivalent to those of a conflict”. For the rest it's all minus signs in a volatile day and uncertainty on the markets waiting for the developments of a EU summit now decisive: Frankfurt -1,27%, Paris -0,37%, London -0,56%. The euro is down to 1,2434
BTP AUCTION WITH SLIGHTLY INCREASING YIELDS
BEWARE OF MONTI'S ANTI SPREAD SHIELD
The price lists have in fact filed without too much attention the Btp auction where the Treasury placed bonds worth 5,4 billion close to the 5,5 expected albeit with slightly rising rates. As well as the good macro data that even today has come from Use (among other things, today the Supreme Court ruled in favor of the constitutionality of Obama's health care reform). At the center of the markets' attention are the decisions on growth for Europe on the summit table but also above all the decisive measures for the strengthening of the single currency. Here is Prime Minister Mario Monti which presents itself with the gauntlet to Germany: Monti asks for an anti-spread shield for the government bonds of those countries that have done their homework and coagulates around him the consensus of that part of Europe which now deems a blow necessary of kidneys with respect to Merkel's policy. The Bono-bund spread today it rose to 551 with a yield of 7% before falling back slightly to 541 points. The Btp-bund differential is up to 467 points from 463 at yesterday's close.
BANKS' PROBLEMS: FROM JPMORGAN TO BARCLAYS
Also on the summit table the discussion for the banking union, an increasingly indispensable element in moving towards greater European integration. In these hours, new alarming signals are emerging from the banking front of a system that contains too many contradictions: after the veil was lifted on Bankia's negative balance of over 13 billion pre-state intervention, the New York Times lifts the storm JpMorgan (which collapses on Wall Street) estimating losses for derivatives of a good 9 billion euros, well above the 2 billion euros initially estimated publicly by the bank. But the scandals also overwhelmed the European coast with Barclays (and it is not the only bank involved in the investigation), fined for manipulating interbank rates and where the powerful CEO Bob Diamond now ends up under accusation. In London, the stock yields up to 15%.
Among other things, they are back on their two-week highs overnight loans asked by the banks to the ECB to report the tensions on the markets: yesterday the eurozone institutions asked the Eurotower for 5,2 billion euros, 2,1 billion more than the previous day and the highest sum after the three billion taken on loan on June 15 last year.
Heavy banks also in Italy, penalized by tensions on the spread: Ubi -2,06%, Bpm -0,75%, Banco -0,31%. Mps yields 3,50% following the new plan which provides for a strong discontinuity with the past and heavy cuts. But which in terms of capital strengthening forces the State to dig into the piggy bank to issue new Tremonti bonds: the resources can come from a linear cut in the expenses of the Ministries, from the reduction of individual legislative spending authorisations, from the temporary use of funds at special accounting or public treasury accounts and the issue of public debt securities in accordance with the provisions of the decree law on disposals published in the Official Gazette.
At the bottom of the Ftse Mib is Ansaldo Sts -5,74% which today announced in a note that on 9 July it will implement the third tranche of the free share capital increase approved by the extraordinary shareholders' meeting on 23 April 2010, following which the company's capital will be increased from the current 70.000.000 euros to 80.000.000 euros through the issue of 20.000.000 ordinary shares with a nominal value of 0,50 euros each. The luxury of Ferragamo -1,89% and Tod's -1,57% is also bad.
Diasorin exploits +3,43% second best stock of the Ftse Mib, Fiat +1,79% and Stm +1,43%, triad +1,26%.
