EU BAGS IN THE HANDS OF DRAGONS. USE CRAZY ABOUT TWITTER. TELECOM, BPM AND GENERALI HEAT UP THE MARKET
Will Mario Draghi lower rates? The slowdown in inflation follows the alarm raised by the EU Commission. Signals that pave the way for a possible rate cut by the ECB as early as tomorrow. But for Citigroup, the central bank will prefer to use non-standard measures (Ltro), leaving the door open to a cut in the December meeting.
The success of Btp Italia November 2017 (22,27 billion, well beyond the previous record of 18 billion) will allow the Treasury to make a fairly sharp cut in the auction program by the end of the year. The Ministry of the Economy could significantly reduce BoT issues up to the end of 2013 and cut the mid-December auctions in the medium and long term. On the secondary market, the 10-year BTP closed the session with a yield of 4,20%, spread at 246.
CHIRCUIETTIO DEBUT AT 26 DOLLARS
Asian stock markets are slowing down, awaiting the indications coming from the ECB and tomorrow's data on US employment. Tokyo loses more than half a percentage point, Hong Kong -0,6%. The tension on market rates weighs on Chinese stock markets, at their highest since June, in reaction to the economic recovery. Tensions are also rising, as demonstrated by the car bombs that exploded in front of provincial party offices on the eve of the CCP plenum which will kick off on Saturday the 9th.
The price is $26, for an overall valuation of the company of $18 billion. Twitter might as well be at the moment of the market's most awaited debut. “Unless you live on the moon you will already know that today is the day of the debut of Twitter,” according to Streetinsider, one of the most active Net voices on Wall Street. Indeed, the atmosphere on Christmas Eve is electric.
Today at 8.30 am New York time (14.30 pm in Italy) the Nyse will hold an industry conference in connection with the other US lists immediately before the IPO of the year. The goal is to avoid a repeat of the chaos of Facebook's debut that is still weighing on the Nasdaq's reputation (and accounts).
On Wall Street, meanwhile, yesterday evening the Dow Jones index closed up 0,82%, S&P500 up 0,35%. Nasdaq bucked the trend, -0,2%, weighed down by stocks such as Tesla and Abercrombie, down 14,7 and 13,4% due to data from the last three months. The quarterly season is coming to an end. 418 S&P 500 companies submitted data, 75% beat earnings estimates.
Purchasing session for European indices waiting for the ECB. Except for London, where the FTSE 100 index lost 0,08%. The Cac 40 gained 0,79%, the Dax 30 0,35% and the Ibex 35 0,42%. The Ftse Mib marked an increase of 0,89% to 19.262 points.
TELEPHONE PUTS 2 BILLION ON THE PLATE. DINI IN MEDA SQUARE
A day in the spotlight for Italian finance.
a) Telecom Italia leap +3,1% on the eve of the approval of the new industrial plan which, according to rumors, could provide for a capital increase of 2 billion euro.
It will be a high-voltage board of directors that will begin at 13 at the headquarters in Piazza Affari. There are many points under discussion: the nine-month accounts, the business plan and governance. Even more burning issues concerning the sale of Argentina and the strengthening of the capital structure. The news has spread that Telefonica, a shareholder of Telco with 66%, would be ready to inject liquidity into Telecom of two billion euros, probably through a convertible (the Spanish group has just sold the Czechoslovakian subsidiary for 2,5. approximately XNUMX billion euros).
Meanwhile Marco Fossati is working on a single list for the Telecom Italia board which aims to gather the consent of foreign institutional investors. Yesterday Fossati met about thirty analysts in London to illustrate options for 'creating value for all shareholders' (this is the title of the presentation submitted to the financial community). "I'm trying to promote a public company - he said - to be able to do so, you need to change the board with the four, therefore to the minorities and then change the statute". Fossati has a list of names ready to submit to the meeting but his intention is to define a single list that will find the support of Assogestioni and which will also include any proposals for foreign funds.
B) Pop.Milan +1,5%. An illustrious name is looming for the Bpm summit. Former premier Lamberto Dini is a candidate for the presidency of the management board of Banca Popolare di Milano in the event of a shareholders' affirmation of a list linked to Raffaele Mincione, the institute's second shareholder. Meanwhile, the international rating agency Standard & Poor's lowered the long-term ratings of Banca Popolare di Milano and Banca Akros by a notch (from 'BB' to 'BB-'). The long-term and short-term ratings have also been placed under observation for a possible downgrade.
C) General +0,4%. Third quarter results will be announced this morning. In the meantime, IVASS has asked that the Board of Directors of Generali give a new ruling on the possible liability action against the former CEO Giovanni Perissinotto and the former CFO Raffaele Agrusti regarding the so-called alternative investments and that, in the light of this, expresses an assessment on the adequacy of the severance pay agreed with the two managers. The board of directors of Enel +1,9% (the subsidiary Enel Green Power +2,4%) and Finmeccanica +2,1% are also expected during the day.
FROM PIRELLI AND PRYSMIAN WIND OF OPTIMISM
Brilliant day for Pirelli +5,37%. The stock benefited from the accounts and the industrial plan presented today in London. The targets of the new 2014-2017 industrial plan envisage an Ebit margin above 15% from the approximately 13% expected for this year, while the return on investments should pass to 28% from 20% in 2013.
An improvement in the net financial position is also expected to -500 million euros from -1,3 billion estimated for the end of the year, with investments equal to 1,4 billion. “Third quarter results are in line with our expectations, profit better than expected. As regards the 2013 targets, the most positive surprise is the debt which falls more than expected”, commented the Intermonte analysts who confirmed the outperform recommendation on the Pirelli stock.
In the rest of the price list, Prysmian's great performance rose by 3,9% after the results of the quarter. Gtech also rose by 3,1% after announcing results in line with market expectations. On the other hand, the end of the session was mixed for the banks: Intesa +0,2% and Unicredit +1,2% rose. Negative results for MontePaschi -0,4%, Mediobanca -1,2% and Ubi -0,4%. Little move Eni +0,3%, another good rise by Saipem +1,4%. Among the mid caps, Piaggio gained 6,9%, Poltrona Frau +5,1%, Fiera Milano +5,3%.
