MR B OUT, MILAN FLYS: +1,3%
BUT THE BTP/BUND SPREAD REMAINS AT 465
A day from other times, before the euro and the global economy, when domestic politics dictated the performance of Piazza Affari. Today the Milan Stock Exchange (and not only) followed the political debate live, betting on the resignation of Silvio Berlusconi. In the end, despite the denial of the person concerned, the Ftse Mib index closed up by 1,32% to 15.548, with a clear advantage over Frankfurt -0,63%, while in Paris the Cac 40 closed down, after that Prime Minister François Fillon has announced a "public finance balance plan" worth 65 billion euros by 2016 which provides for the acceleration of the pension reform and an increase in VAT for some consumer products. The US stocks moved little: the Dow Jones is down by 0,34%, the Nasdaq does worse at -0,79%. For once, Wall Street is looking at the evolution of the Italian political market.
The euro is up to 1,376 from this morning's low of 1,370 against the dollar. During the day, the rumors about Berlusconi's fate increased. First, thanks to Giuliano Ferrara's alleged scoop, the bond market, in the wake of the various rumors, was more agitated than a surf basin: first, the yield on BTPs broke through to 6,6%, while the spread with the Bund is dangerously close to 500 Bp (in addition to exceeding the threshold of 100 points against the Bonos), then things calmed down (partially): the yield on ten-year BTPs rose to 6,45% (+14 points basis) while the spread with the bund fell to 465 from 482 in the morning.
This morning the EFSF state-saving fund announced the opening of the placement of a first tranche of bonds, for 3 billion euros, with a maturity of 2022 and a yield of around 10 basis points. The operation follows the recent agreement between European leaders which decided to bring the amount of the fund to over one trillion euros from the current 440 billion euros.
MEDIOBANCA LEADS THE REFUND
THE FIAT TEAM IN POLE POSITION
In Piazza Affari the banks are in strong recovery: Unicredit +1,87%, Intesa +2,84%, even Mediobanca +5,36%. Heavy losses for MontePaschi – 4,28%, heavily targeted right from the start. Sale Generali +1,54% preceded by Fondiaria-Sai +3,3%. In the industrial field, in addition to the leap of Campari which rises by 2,3%, driven by the "buy" promotion of Deutsche Bank, it is worth mentioning the roaring day of the Lingotto: Fiat +2.90% and Fiat Industrial +2,15%. Mediaset is above parity, despite the problems of its number one shareholder, and rises by 0,2%, Lottomatica +0,53%.
