European stock exchanges still marked by sales in a decidedly fragile market environment. It is Piazza Affari that once again marks the biggest declines, weighed down by the banking sector, the epicenter of renewed tensions. At the beginning of the afternoon, the Ftse Mib lost 0,94%, Paris 0,41%, Frankfurt 0,26% and London 0,12%.
ECB LETTER, MPS COLLAPSES
First of all, the new indiscretions on the ultimatum letter from the ECB Supervisory Authority to MPS (the stock was suspended several times in the volatility auction), in which the Eurotower invites the institute to present a three-year plan as soon as possible restore the percentage of non-performing loans to a physiological level. The institute has partially rectified the entries.
The institute "acknowledges that it has received a letter from the ECB notifying its intention to request compliance with certain requirements relating, in particular, to non-performing loans", writes the Bank in a note, explaining that these requirements are indicated in a draft decision on which the institute was given the opportunity to present its arguments in this regard by 8 July 2016.
But so be it. And Bmps collapses to the bottom of the Ftse Mib with a tumble of 8,44%. It follows among the worst in the Bper index (-5,13%) and among the Intesa banks -3,69%.
THE TENSION ON THE BANKS RETURNS
Sales hit the whole sector with Unicredit losing 2,78%, Ubi -3,54%, Banco Popolare -2,3%. The tension on Italian banks is also fueled by an article in the Financial Times, according to which Prime Minister Matteo Renzi is ready to save the institutions with public money regardless of European rules.
In fact, the confrontation between the Renzi government and the EU Commission continued throughout the weekend, in search of an agreement on the recovery of the system that takes into account the rules on public aid and the rules on bank bailouts.
THE SPREAD WIDES AGAIN
STAGNANT HOUSE PRICES IN ITALY
The Btp-Bund spread widens again by 2,8%, to 139 basis points and a yield of 1,27%. The euro-dollar exchange rate is stable at 1,11235, oil rises slightly: Brent +0,24% to 50,51 dollars a barrel and Wti +0,29% to 49,13 dollars a barrel. Today the US price lists are closed for the Independence Day of July 4th.
On the macroeconomic front, in the Eurozone in May the producer prices of industrial products in the Eurozone rose by 0,6% compared to April and fell by 3,9% on a year-on-year basis.
In Italy in the first quarter of 2016, on the basis of preliminary estimates by Istat, the house price index (Ipab) purchased by households, both for residential purposes and for investment, decreased by 0,4% compared to the previous quarter and by '1,2% against the same period of 2015 (it was -1,7% in the previous quarter).
The persistence of the decline in house prices, observes the institute, determines an acquired rate of variation of the Ipab for 2016 (the average annual variation if prices did not vary in the following three quarters) negative and equal to -1 per cent.
Istat points out that the first quarter of 2016 therefore confirms the stickiness of prices compared to the trends in the number of homes traded which is instead on the rise (+20,6% compared to the first quarter of 2015 according to data released by the Observatory of Real Estate Market of the Revenue Agency).
RCS ROOMS AT PIAZZA AFFARI AWAITING THE COUNTERMOUSES
At the bottom of the Ftse Mib there are also FCA (-3,83%) and Mediaset (-3,81%). In contrast, at the top of the Ftse Mib, Saipem (+5,11% in the wake of maxi order in Indonesia from 1,2 billion dollars), Tenaris (+1,36%), Leonardo (+1%) and A2a (+0,58%) with the mayors of Milan and Brescia ready to discuss the new pact.
Rcs +0,68%. After the relaunch announced on Friday evening by Urbano Cairo, today opens the five-day window for a possible countermove bis by the International Media Holding consortium (Bonomi, Mediobanca, Della Valle, Pirelli and UnipolSai) which has until midnight on Friday 8 to decide whether to move again on the cash offer of 0,80 euros for each Rcs security or remain stationary.
