SO THE CENTRAL BANKS WAKE UP THE STOCK EXCHANGES
Never again another Lehman Brothers. Central banks have chosen the third anniversary of the US bank's default, decreed on September 15, 2008, to send a precise message to the financial markets. Just before 16pm yesterday (10am on Wall Street) the ECB announced that, in concert with the British, Japanese and Swiss central banks, it will inject dollar liquidity on three different occasions, on 12 October, 9 November and 7 December next. The currency, intended for European banks that request it, will be guaranteed by the Federal Reserve. The risk of a liquidity crisis that had become tangible after the news that in recent weeks the ECB had had to supply over one billion dollars to banks short of US currency on two occasions is thus averted. In the evening, the president of the ECB, Jean-Claude Trichet underlined how the decision demonstrates "the unity of purpose of the central bankers" and warned of new systemic shocks that could come from the non-banking sector, i.e. from more speculative finance. Cooperation between banks is excellent news for the markets, which are now awaiting similar gestures from politics as well. The appointment is for this morning in Poland, where Ecofin will welcome a special guest: US Treasury Secretary Tim Geithner. In the meantime, the stock exchanges finally toasted almost everywhere.
ALL OF ASIA TOASTS TO THE BULL: TOKYO + 2,1%
FROM SINGAPORE OK TO THE MANCHESTER UNITED IPO
The Asian markets, from Tokyo to Shanghai, faithfully reproduced the trend of the American and European lists. The Nikkei 225 index rises in Tokyo by 2%, the Hang Seng in Hong Kong does even better. Also in the Far East it was the stocks of the financial sector that pulled the race: Mitsubishi Financial was the best stock with a leap of 3,8%. Singapore, meanwhile, has announced that it has given the go-ahead in record time (the application was submitted on August 18) to the Manchester United IPO. The offer, coordinated by JP Morgan and Morgan Stanley, provides for the offer of securities, two thirds of which are preferred shares with the right to a double dividend, for the amount of one billion dollars.
EUPHORIC BANKS ALSO ON US SQUARES
WALL STREET BETS ON THE NEXT FOMC
Central banks also gave Wall Street wings: the Dow Jones closed the session at +1,66%, S&P rose by 1,72%, the Nasdaq by 1,34%. Also on the American market, on a par with Europe, the race was led by the banks: JP Morgan and Bank of America achieved a rise of 3,3%. The optimism of the US markets after the intervention is also linked to the hope that the next meeting of the FOMC, scheduled for 20-21 September, will implement various energetic measures in favor of the US economy. It is difficult, he points out, for the Fed to widen the purse string to the advantage of Europe by neglecting the US economy which, as emerges from yesterday's macro data (increase in requests for subsidies, slowdown in manufacturing production in the New York etc) is still weak. Several economists, including Michael Feroli of JP Morgan, take for granted the start of Operation Twist", i.e. purchases on the long part of the Bond curve (15 and 30 years) with the aim of increasing the average duration of 2650 billion of Bond in circulation today.
THE GOLD MEDAL OF THE RAISE GOES TO INTESA (+10,3%)
FOR ANSALDO BREDA THE OFFER FROM ALSTOM COMES OUT
Greece will not be allowed to default and European banks will not lack dollar funds. These are the engines that pushed up the European Stock Exchanges today. After the announcement of the intervention of the central banks, the stock markets have turned on the turbo, driven by the strong growth of the banking sector. Piazza Affari was also carried away by the renewed enthusiasm: the Ftse Mib ended the session with a rise of 3,56% to 14.642 points, while the Ftse All Share gained +3,18% to 15.488 points. Numerous bank stocks were suspended due to excessive increases during the day. Intesa Sanpaolo closed with a +10,27% to 1,052 euro, followed by Unicredit (+6,90% to 0,755 euro) in the ranking of the best stocks of the Ftse Mib. Fiat also did well (+5,17% to 4,106 euros), which followed the good trend of the European auto sector right from the start of the session. The parent company Exor moved in Fiat's wake (+4,93% to 15,31 euros). Second consecutive session with a marked plus sign for Stmicroelectronics, which closed the session up by 4,26% at 4,998 euros. Some profit-taking was triggered on Finmeccanica (-0,38% to 5,24 euros), which yesterday had achieved an increase of more than 10 percent. Meanwhile, Alstom's interest in AnsaldoBreda appears.
GEITHNER: EUROPE, MULTIPLIES THE FUND'S RESOURCES
THE HAWK JURGEN STARK: HOW THE EU WILL GO TO THE BOTTOM
After the bankers, it's up to the politicians. The opportunity to measure the degree of cohesion of EU finance ministers will kick off in a few hours. In fact, the informal Ecofin summit will be held in Wroclaw, hosted by US Treasury Secretary Timothy Geithner. His is not a simple courtesy visit. Geithner, in fact, intends to put pressure on the governments of the eurozone to increase the resources available to the bailout fund to avert the risk of default of Greece and the other Piigs. Geithner, in particular, will advise Europeans to imitate the US strategy used to deal with the subprime mortgage emergency: thanks to the Talf program, the New York Federal Reserve was able to mobilize 200 billion in resources with a leverage effect of 1 to ten. The same logic, applied to the 440 billion euro bailout fund, could provide the euro area with the necessary means to support all countries in difficulty. It is difficult to predict the eventual success of Geithner's proposal. Certainly, the German hawks will continue to do battle, inside and outside the ECB. Yesterday the bank's outgoing member, Juergen Stark, spoke for the first time since his departure from the ECB directorate. “In the short term – he said among other things – certain support operations can cause a momentary beneficial effect on sick countries. But, in the long run, this policy risks jeopardizing the very existence of the currency and of the European Union”.
MEANWHILE AT UBS, FALCO WEBER AWAITS GAME
DISCOVERED THE "HOLE" OF A TRADER FOR 2 BILLION
In the meantime, bad money awaits the recognized leader of the hawks: Axel Weber, former governor of the Bundesbank, in that capacity the most dangerous alternative in recent months to Mario Draghi's candidacy for the presidency of the ECB. Weber, surprisingly, was chosen in recent months to succeed Kaspar Villiger as president of UBS. In that capacity he will have to deal with the consequences of the deeds of Kweku Adoboli, a 31-year-old trader from the London branch of the bank whose existence until recently Weber was unaware of. But Adobolu, a Ghanaian of origin, a brilliant graduate in computer science from the University of Nottingham, was arrested by Scotland Yard on charges of having caused a hole of two billion with "illicit operations" without the knowledge of the bank. The script of the Kerviel case which gave rise to the vicissitudes of Société Générale is repeated. At least, this is the opinion of the Stock Exchanges which yesterday punished UBS with a 9% drop.
JOHN MACK LEAVES THE GUIDE OF MORGAN STANLEY
SINCE 2009 THE CAPITALIZATION FROM 70 TO 31 BILLION
One of the most powerful and famous bankers in global finance leaves the scene: John Mack, chairman of Morgan Stanley, who emerged unscathed from the disasters of the post-Lehman Brothers crisis, will leave his office at the end of the year to the current CEO, James Gorman. The balance sheet of Mack, the sixth son of a Lebanese emigrant, is not the most exciting if he looks at the Stock Exchange. Morgan Stanley shares have lost 40 percent of their value since January 31,4. Capitalization is equal to 70 billion dollars against 2009 billion at the beginning of XNUMX.
EDISON, AGREEMENT TO POSTPON THE AGREEMENT
LODOZUCCOLI COMES FORWARD. AND UNDERSTAND
Next week will be a hot week for Edison's reorganization: the so-called Lodo Zuccoli will be officially presented to A2A's management and supervisory boards in view of the new summit, on Friday 23 September between the Minister for Economic Development, Paolo Romani and the number one by Edf Henri Proglio to discuss the reorganization of Foro Buonaparte. In the meantime, the agreement to postpone the expiry of the agreements between Delmi and the French Edf was ratified in extremis by the A2A board of directors yesterday. The board which lasted over three hours addressed the proposals on the table: on the one hand, the already known one which envisages Edf with an absolute majority in Edison, the Italian shareholders in the minority and the unpacking of Edipower among the various shareholders. On the other hand, that of the chairman of the management board, Giuliano Zuccoli, is also emerging, with the consent of the Ministry of Development and the probable direction of Intesa Sanpaolo (Corrado Passera met the mayor of Milan Giuliano Pisapia at Palazzo Marino), which foresees that Edison passes entirely to the French, but that the 9 Edipower plants, of which Edison controls 50%, all become Italian.
THE LONG MARCH OF CALTAGIRONE CONTINUES
THE SHARE IN ACEA RISE FROM 15 TO 16%
Francesco Gaetano Caltagirone reduced his stake in Acea to 16,05% from the previous 15,02% after purchases in August. The Roman entrepreneur communicated this in a note, listing the purchases made between 2 and 30 August in an internal dealing communication. The total value of the purchases was approximately 12 million euro.
FACEBOOK POSTPONES THE LISTING FOR A YEAR
EMPLOYEES "DISTRACTATED" BY THE UPCOMING EARNINGS
We will have to wait a little longer for the listing most awaited by American investors. Contrary to initial announcements, the Facebook IPO, which could raise over 66 billion dollars, will arrive at the end of 2012 and not in the spring of next year. According to the Financial Times, the founder and CEO, Mark Zuckerberg, wants the staff focused on the product and not on the possible revenues from a placement on the stock exchange. The IPO, which will be one of the largest in the world with Facebook valued at 66,5 billion dollars, could take place – as reported by the Financial Times, quoting some sources – after September 2012. “They are in no hurry. They don't need money and it's easier to concentrate when you are private. Facebook will land on the stock exchange when it's ready, not before” highlights Lise Buyer, Google consultant in the IPO process.
