THE EUROPEAN EXCHANGES LOSE DUE TO THE UNCERTAINTIES ABOUT THE BAVY-STATE FUND
PUBLIC AUCTION: FRANCE HOLDS UP, SPAIN IS STRONG
The news that the State bailout fund will be able to buy sovereign debt bonds on the secondary market for securities that will comply with budgetary constraints gave new life to the stock exchanges in the middle of the day, after a sharp decline at the start. Around 16:30 Milan was losing around 1,5%, in line with the other markets after the disappointing outcome of the meeting in Frankfurt in which the French president Nicolas Sarkozy spoke of "stalemate".
This morning, moreover, Reuters had written that the Monetary Fund is against the disbursement of the tranche of aid to Greece and asks for further study: the ECB and the European Union are inclined to pay Athens the 8 billion euros. This morning the spread between the BTP and the Bund had dangerously approached 400 basis points, jumping to 397 at the opening. Meanwhile, a new record was recorded for the yield differential between the French ten-year Oat and the German Bund at 119 basis points , the highest since the introduction of the euro.
Then, thanks to the purchases of the central banks and the outcome of the auctions on French and Spanish securities, the emergency (in part) subsided. This morning France placed government bonds maturing in July 2015 at an average rate of 1,96% and maturing in July 2016 at 2,3%. Maturities in 2013 offer a rate of 1,3% and those in July 2014 of 1,58%. Paris has offered between 6,5 and 7,5 billion euros of fixed income securities. The spread with the German bund and the French 116-year bond is stable at 115 basis points from last night's record of 3,9. The Spanish Treasury today placed three government bonds for 3,25 billion, just above the middle of the offer range of 4,25-2017 billion euros. The average yield on 4,782 bonds was 2009%. The last auction dates back to 2019. The bond maturing in 5,11 was placed at a yield of 4,969% against 15% in the auction last September 2021th. On the 5,433 ten-year benchmark it was 5,896% from 21% at the auction last July 1,8st. Requests equaled 2017 the offer on the 2,1 bond, 2019 on the 2,2 maturity from 1,8, and 2021 on the 1,9 bond from XNUMX in July.
Our Btp remains unchanged with the yield rising to 5,92% and the spread falling to 385 points from 395 basis points. Trading rooms report supportive purchases by central banks. Among the banks, Intesa loses 1,8%, Ubi -1,73%, Unicredit -1,77%. According to the rumors relaunched by the Financial Times, the mechanism being studied by the EBA to determine the capital requirements of European banks could lead to total capital strengthening needs at system level included in the range of 70/90 billion (from filled in 6/9 months), a figure well below the 200 billion previously indicated by the International Monetary Fund. Bpm (+0,73%) goes against the trend while the last blows of the heated campaign between the opposing lists are consumed. Today the candidates on the list headed by Marcello Messori are in Gallarate.
SUDDEN CUT BY GOLDMAN SACHS TO PRYSMIAN – 4,1%
FIAT CONSENSUS: 60% OF THE PROFITS COME FROM CHRYSLER
Pirelli +0,88% is recovering on the wave of the judgment of Morgan Stanley which expects "positive surprises" from the next quarterly. On the contrary, Prysmian fell - 4,08% after the cut from buy to neutral and the target price by Goldman Sachs and Finmeccanica -1,57%.
Among the industrial stocks, Fiat Industrial falls -1,72% while Fiat rises by 0,73%. Consensus data on the third quarter have been published. For the automaker it forecasts a trading profit of 705 million euros, of which 120 for Fiat Auto and 440 million for Chrysler. Net profit is expected at €170 million, net industrial debt in line with expectations at €4,1 billion. StM loses 0,3%. St-Ericsson reported third quarter revenues of $412 million due to a positive $20 million licensing contribution. The net loss was $211 million. The company expects "slight sequential revenue growth" for the fourth quarter.
However, the rebound of Nokia +7% helps the leading chip company. Boom in trading and prices for Eems +5,6% after the announcement of the agreement with Coop Adriatica and Coop Nord Est, for the sale to members/customers of a turnkey domestic-scale photovoltaic system. B&C speakers are also recovering + 4,8%.
