Mario Draghi was clear: “The ECB's mandate only goes up to a certain point. There are clear limits to what monetary policy can and should do. In particular: “We cannot fix unstable public finances. We cannot restructure troubled banks”. We cannot solve the deep structural problems of the European economies. Sharing a common currency is sustainable only if each country assumes its own responsibilities” In short, Italy does not think that the ECB's parachute can be valid indefinitely.
Draghi's words to the Catholic Academy of Bavaria echo the concerns of Wolfgang Schaueble who does not hesitate to evoke the precedent set by Greece regarding the possible effects of the Italian crisis on the euro. At least for now, however, the markets are trusting the Bel Paese because, as a Crédit Suisse report published this morning headlines, "the situation is not as bad as it may seem". And so the Treasury placed 6,5 billion Btp this morning without problems, achieving slightly lower yields than those of the secondary market, even if higher than previous auctions.
THE LISTS
Piazza Affari recovered just under half of the ruinous loss of the day before with increases spread across the entire price list. The Milanese FtseMib index rose by 1,7%, more than the other European stock exchanges. London +0,8% and Frankfurt +1%. Paris rose by 1,9%. The main data of the day is the Btp auction. This morning the Treasury placed all the 4 billion 10-year bonds expected at a yield of 4,83%, lower than the 4,88% recorded this morning on the secondary market. The previous auction at the end of January had recorded a yield of 4,17%. The improvement of the BTP continued during the session and the market closed with the yield at 4,78% and the spread at 333, down 9 basis points compared to yesterday.
The auction of 2,5 billion 5-year BTPs also went relatively well, with good demand which limited the rise in yield to 3,59%. In terms of exchange rates, the euro went to 1,3103 dollars (1,305 yesterday) and 120,04 yen, while the dollar-yen is equal to 91,6. Oil is traded at 92,79 dollars a barrel, up by 0,17%.
ECONOMY RECOVERING, RALLY AT WALL STREET
Good rise in the American stock market at the end of the session, with the Dow Jones index rising by 1,26%, S&P500 +1,27%. The Nasdaq advanced 1,04%. The US economy is showing signs of recovery: economists have appreciated the acceleration of the real estate market which in January saw a 4,5% growth (over the previous month) in ongoing home sales, against expectations of +1,9 %. The data on orders for durable goods, which rose by 1,9% (excluding the transport sector) against forecasts of +0,2%, was also positive.
Tokyo's push +2,30% was much more robust. The purchase is supported by the confirmation that the new governor of the Bank of Japan will be Haruhiko Kuroda, former president of the Asian bank, who is in favor of a policy of monetary stimulus to the economy. Hong Kong also rose sharply + 1.50%. Curious note: Bloomberg, in commenting on the recovery of the quotations of Australian bonds, one of the few triple A among government bonds after the relegation of the United Kingdom, headline thus: "The Berlusconi effect drags the Bonds".
INSIDE BUSINESS PLACE
The shares of the banks raised their heads, with the exception of Mediobanca (-1,98%), in the aftermath of the accounts for the first half year announced the day before. The Mps also went down (-1,8%), while the market wonders whether the electoral outcome will have an impact on the Sienese institution which has yet to receive the so-called Monti bonds. On some stocks (Intesa, Mediolanum and Banco Popolare) Consob has imposed a ban on shorting. At the end of the session Unicredit scores +1,8% on a par with Intesa. Banco Popolare +0,6%. Generali rose by 2,5%, Mediolanum +1,7%. Unipol - 0,8%. Eni gained 2,1%.
Eric Knight, major shareholder activist of the six-legged dog, returns to office. After the battle, which he won, over Snam, Vinke is now asking for ENI's divorce from Saipem. The main road is not the sale or a capital increase but the pro-quota transfer to the current Eni shareholders, which would leave CDP with a stake of around 13% of the company, perhaps to be married later with one of the big names in the sector, Schlumberger or Halliburton. Terna rose by 1,8% after the promotion to buy Ubs.
Among the industrial stocks, Fiat rose by 2,2%, Finmeccanica +1%. Positive StM +4,1%, Prysmian +4% and Tenaris +2,8%. The list of increases continues with: Autogrill +2,4%, Diasorin +1,6%, Tod's +1,6%. Rcs +5,1% is also highlighted. Telecom Italy + 0,9%. The decisions on the fate of La 7 were postponed to the Telecom Italia Media board of directors on March 4 "because – reads a press release – the definition of some contractual aspects is still being finalised".
