Piazza Affari is already celebrating the (for now virtual) government chaired by Monti: +2,2, Ftse/Mib at 15.384. After opening more than 1%, the index began to climb vertically, on the wave of purchases by major international operators, convinced that Italy has finally converted to the super Mario formula which stands for l combined Monti/Draghi (“and maybe Balotelli” jokes a City trader). The markets thus tried to forget the "terrible Wednesday", which also affected Wall Street and Asia.
The key appointment for today was the auction of the 12-month Treasury bonds offered by the Treasury for an amount of 5 billion: it went better than expected. The annual bonds were placed for the total amount offered by the Treasury, equal to 5 billion euro, against a demand that came close to 10 billion euro (9,947 billion). The yield stood at 6,087% gross, an increase of 2,517 points compared to the previous auction. The annual BoT returns above the threshold of 6% gross for the first time since October 1997. But yesterday evening, before the announcement of Monti's appointment on the gray market, the yield was 7,65%. In short, even on the government bond front, we see a recovery after a very heavy day that saw bond yields shoot up to historic highs since the introduction of the euro. The yield on the ten-year BTP rose to a maximum of 7,50%, with the spread on Germany widening yesterday up to 576 basis points. Meanwhile, the yield on the ten-year BTP has fallen to 7,05%, the spread with the German Bund is 534 points from 554 yesterday evening. Among the Milanese blue chips we note the recoveries of the banks. Intesa +6.01%, Unicredit +6,61%, Banco Popolare +5,51%, MontePaschi +3%.
Bank of Italy has given a positive opinion on the inclusion of cashes in the calculation of Unicredit's Core Tier 1 capital. These are 3 billion high-yield bonds that will substantially contribute to reducing the need for new capital needed by Unicredit to strengthen its capital as requested by the European supervisory authorities and achieve the target of a Core Tier 1 at 9% within June 2012. At the end of June, Core Tier 1 was 9,12%, cashes included. Yesterday the Unicredit Strategic Committee reviewed the industrial plan that will be presented to the press on Monday: some stable shareholder foundations of the group do not have the resources to participate in the capital increase and that some new institutional investors could join the group.
Pirelli runs up by 5,95% to 6,73 euros in the wake of the new 2011-2014 industrial plan which provides for an average annual growth in total revenues of 10%. Since the beginning of the year, the Pirelli stock has risen by 8,4% and boasts the best stock market performance of the entire European automotive sector. Fiat also recovers +4,54% and Fiat Industrial +4,98 For the Stock Exchange, the day will be characterized by a heavy rain of corporate results, but it will be difficult to identify movements dictated by the accounts, in a situation of such great stress for the whole the Italian financial market.
