EU SUMMIT, DON'T LIKE THE AGREEMENT ON BANKS
FINMECCANICA AND MEDIASET SINK IN MILAN
Falling final for the European stock exchanges, led down by Milano which drops by 2% to 15861%, preceded by Madrid -2,84% . Paris -1,08 and Frankfurt -0,97% were also bad. London damage limits :-0,38%.
The positive note comes from the debt market. Thanks to the resounding success of the third issue of the BTP Italy (18 billion euros), which especially surprised foreign commentators, our spread is about to close the week at its lowest since March at 313 basis points, for a yield of around 4,73%.
Greece is also improving after the praise of the EU heads of government to Antoni Samaras: the Greece/Germany spread is at its lowest in the last 13 months at 1.495 for a yield of 16,5% against 28% in July.
Wall Street retreats after the disappointing quarterly results of the tech giants, the S&P500 falls by 0,79%, Dow Jones -1,01% Nasdaq – 1,45%.
Google rises by 0,4% after yesterday's plunge -8%. Microsoft -2,7% after a 22% drop in earnings, higher than expected.
It was the banking sector that depressed European markets. The Stoxx index for the sector fell by 2,9%, with negative peaks for Spanish and German institutions, bizarrely united by destiny.
At the Brussels summit, concluded with the agreement to launch the single ECB supervision of the 2013 European banks by the end of 6.000, Angela Merkel it had to give in, despite the fears of its majority, worried by the fact that holes in the Landesbanks (regional banks) and in the Sparkasse would come to light: Deutsche Bank falls by 3,2%, Commerzbank -5,5%.
As for Spanish banks, penalizing them is Angela Merkel's clarification that the direct recapitalization of banks by the European stability mechanism ESM can only take place when a single banking supervisor is established, therefore much longer times than the market expected. Not only. The Chancellor wanted to underline that the interventions of the ESM "cannot be retroactive": Bankia falls by 11%, Banco Popular -5,8%.
In Milan Unicredit, the most linked to the German system, decreased by 3,4%, Understanding -3,19% Popular Milan -3,1%. The landslide continues MontePaschi -1,86%, after -6% on Thursday.
Among the industrialists Finmeccanica suffered a drop of 5,55% even before the judicial storm exploded over the Defense holding company.
Also declining Fiat –2,53% and Fiat Industrial -2,86%.
Thump of Mediaset which drops by 5,66% after Mediobanca lowered the target price to 1,12 euro.
