A sharply downward start for the Milan Stock Exchange, after the electoral defeat of the Cdu in Germany and the still uncertain political future for Greece. At the opening of negotiations in Piazza Affari, the Ftse Mib loses more than two points. The other European Stock Exchanges are also bad: Frankfurt scores -1,22%, Paris loses 1,57% and London is in the red by 1,22%.
MILAN SUSPENDED AT AUCTION BTP. EUROPE EVALUATES NO TO MERKEL. EVEN THE "HOLE" IN JP MORGAN AT THE CENTER OF THE CONSOB SHAREHOLDERS' MEETING
The week begins with a strong menu: the auction of Italian BTPs, the Treasury offers 2,5-year BTPs maturing on March 3,5, 3 for a value between 1 and 2015 billion euros. the offer for a total value of one billion of three BTPs already in circulation.
It is the first appointment of a hot week: out of 28-35 billion offered in European debt auctions, 14 billion will concern Italian and Spanish funding. The operations will be at the center of attention of the financial markets. In reality, since the beginning of the financial crisis (study by Chiara Manenti, fixed income stategist of Intesa) foreigners have liquidated positions for 157 billion in Italian bonds, offset first by purchases by the ECB and then, after the launch of the Ltro, by Italian banks .
German voters don't like austerity either. Yesterday Angela Merkel was beaten in the elections in North Rhine Westphalia. The most populous State of the 16 of the Federal Republic and the industrial, mining, workers and political heart of the country. The chancellor's party goes from 34 to 26%, the worst result since the war. Triumph of the Social Democrats, who rise to 39% and remain in government with the Greens. Pirates fly at 7,5%. Thus Merkel emerges seriously weakened 48 hours after her first meeting with François Hollande.
In Tokyo, the euro fell again this morning to 1,2890 against the dollar. The Japanese Stock Exchange +0,23% marks a slight rise on a par with Hong Kong +0,25%, more caution in the other lists of the Continent: the MSCI Asia Pacific index loses 0,2%, futures on the Stock Exchange are also weak American -0,2%. The Australian dollar, for the first time in 2012, fell below parity against the US dollar.
Last attempt, tonight, to avoid new elections in Greece. Yesterday it seemed that a three-way agreement had finally been found which would avoid returning to the polls again. This was announced by Alexis Tsipras, leader of Syriza (anti-European far-left) who opted out of the agreement. But an hour later the leader of Dimar (pro-European left), Fotis Kouvelis, denied everything, accusing Tsipras of "defamatory lies" and of having "exceeded all limits of political decency". According to Syriza, New Democracy (conservatives), Pasok (left) and Dimar had reached an agreement to form a government capable of lasting at least two years with the aim of implementing the austerity plan agreed with the European Union. An hour after the denial: the solution remains on the high seas.
Meanwhile, for the first time, central bankers are officially considering the possibility of Greece leaving the euro area. "I am reflecting on whether an amicable divorce is possible - comments Luc Coene, governor of the Bank of Belgium to the Financial Times - although I hope it is not necessary". “Things not envisaged in the treaties can happen – adds Patrick Honohan, governor of the Irish central bank – But these are problems that can be tackled in a technical key. It's not necessarily fatal, even if it's not a pretty prospect."
The first purges at JP Morgan kick off today after the "hole" of over two billion accumulated by the bank's CIO division, which specializes in "hedging" derivatives. To pay the first bill of the crisis will be: Ina Drew, head of CIO, Achilles Macris, head of the London trading team and Javier Martin-Artajo.
The theme of high frequency trading will today be one of the main themes of Consob's annual report illustrated today in Piazza Affari by the president Giuseppe Vegas. The report will dwell once again on the issue of the hitherto failed development of the Italian Stock Exchange, a chapter of dramatic relevance in the face of the drop in the supply of capital by the banking system. It will be an opportunity to understand at what stage the process of simplifying procedures and cutting costs for the new quotations is.
Naturally, Vegas will not talk about Fonsai but the answer to Unipol's question on the exemption from the takeover bid could already arrive tomorrow, even if the Commission could take its time and wait for the results of the Antitrust investigation. However, the week promises to be decisive for the Fonsai operation. In fact, Fonsai's board of directors meets tomorrow and has to express itself on the two competing levels: the proposal from Unipol, which aims at 62% of the new hub, and the alternative one from Palladio Sator.
Great attention during the week for the upcoming bank quarterly reports. Tomorrow there will be a meeting on the accounts of the Monte Paschi board of directors. The title has lost about 4% since last Wednesday, the date of the blitz of the judiciary in the bank. Also tomorrow, the board of directors of Intesa San Paolo will be held on the quarter, the first under the management of Enrico Cucchiani. Today, however, the spotlights will be on the accounts of Ubi.
Outside the credit sector, the most awaited appointment is the quarterly by Salvatore Ferragamo, a significant test on the upward trend of ow on emerging markets and in the USA. Meeting dedicated to the accounts also at Impregilo, in anticipation of the new duel between the Salini group and Beniamino Gavio.
The last session of last week closed slightly up for the main European stock exchanges with Milan closing the session up by 0,29%, London by 0,57%, Frankfurt by 0,91%, while Paris closed just below parity (-0,06%). The merit of the plus signs after an entire day in the red is due to the US consumer confidence data, which rose to 77,8 points in mid-May from 76,5 in April. The data disclosed by the University of Michigan is clearly better than the expectations of analysts who expected a rise to 76 points from the 75,7 preliminary reported thirty days ago. Even Wall Street, after starting down by half a point, has returned above parity: Dow Jones gains 0,3%, the S&P 500 0,5%, while the Nasdaq rises by 0,6%.
