The redemption of Banco Popolare and the endorsement to Matteo Arpe of the Financial Times are not enough to support Piazza Affari, Europe's black shirt: the Ftse Mib drops 1,29%, dragged down by the banks and by the sales on Generali and Mediaset after the accounts. The Btp-bund spread returned above 300 on fears of peripheral debt: Spain may need a debt restructuring while Portugal has reported a tripled deficit. In any case, still today the country has managed to place 1,61 billion bonds on the market a year with falling rates and rising demand. Bonds maturing March 2013 were placed with a yield of 3,652%, down sharply from 4,943% in the previous auction, and demand was 2,5 times the amount offered.
The mood of the price lists is however also cautious in Europe and the USA: The Dax rises by 0% while the Cac drops by 23%. On parity London +0,10% where the Government has announced since 0,01 the cut on the highest tax rate to 2013% from 45% to stimulate the economy and competitiveness.
At the close of the European markets Wall Street proceeds mixed: the Dow Jones is down 0,07% and the Nasdaq is up 0,39%. Profit warning for oil drilling giant Baker Hughes.
The disappointing data on the US real estate sector weighs on the price lists: Existing home sales in February were down 0,9% from January. The result is worse than market expectations. In fact, sales stood at 4,59 million units, a figure lower than the expectations of economists who expected sales of 4,62 million units.
On background signs of Chinese slowdown with a worrying trifecta: the slowdown in iron consumption, denounced by large suppliers, led by Bhp Billiton; the slowdown in car purchases; the fall in real estate prices in 45 cities. And the threat of expensive oil, a sword of Damocles on the possibility of a recovery of the economy which rises to 107,10 dollars a barrel in New York.
FED READY TO ACT
GERMANY TOWARDS INCREASING THE STATE-SAVING FUND
If the storm has passed for many, the calm has not yet arrived. For Federal Reserve Chairman Ben BernankeIndeed, “the economy still presents challenges. Unemployment is still high and this creates problems for everyone”. However, Bernanke added to CNBC, the nation's long-term prospects are "very good". The Fed has said it is ready to act if the situation in Europe worsens but is not considering buying the debt of European countries in difficulty: the EU must do more to become a fiscal union. The message is clear: “We will not help Europe by putting American taxpayers' money at risk”. That's why the Fed won't even promote an increase in IMF funds.
However, signs of the opening of the strengthening of the famous firewall, the state bailout fund, seem to be arriving from Europe.According to press rumors, Germany is willing to increase its stake up to 290 billion euros from the current 211 billion. Meanwhile, the German economic research institute Rwi revised upwards its own previous forecasts on national GDP for 2012, from 0,6% in December to the current 1%. Hard line instead on the ECB: "One must not believe that there will be more three-year loans" from the European Central Bank, said German member of the executive council Joerg Asmussen, in an interview with the German weekly Die Zeit: it is "still too early" for Frankfurt to withdraw stimulus measures but the ECB must "start preparing an exit strategy. The euro is quoted at 1,32 against the dollar.
SALES ON MEDIASET AND GENERALI
THE BANKS SUFFER
Piazza Affari is dragged down by banking sector: Unicredit loses 3,28%, Mediobanca 2,46% and Mps 2,02%. In Siena, following the designation of Alessandro Profumo as chairman of the bank, the deputy administrator of the Foundation today examined the offers received for the purchase of the block of shares put up for sale. After 2011 accounts, in red General -4,63% and Mediaset -4,09%. At the end of the session, the pressure on Telecom eased -0,33% after the news of the investigation into false sim cards which involved the company. Telecom has released a note in which it specifies that it is "the injured party, who will bring a civil action against all the defendants". The company recalls that already in 2008, "as the offended party, it presented two complaints-complaints and, right from the start of the investigation, that it had proceeded to suspend the 14 employees (none of whom managers) who were involved at the time and which are the subject of the current legal proceedings”.
SATOR, HERE IS THE FINANCIAL TIMES ASSIST
The day after the presentation of the Sator-Palladio plan for Fondiaria Sai, Matteo Arpe, the banker loved by institutional funds, receives the assistance of the FT: "The proposal by Sator and Palladio on Premafin for the relaunch of Fonsai gives a chance to increase competition in the insurance sector and a rare opportunity to modernize the joint-stock company in Italy”, writes the Lex Column of the City newspaper. Which increases the dose against the Unipol plan: the reorganization with Unipol it is a significant example of how in Italy "bankers and corporate managers exercise power by cross-shareholding, nodding and winking". Fondiaria Sai goes up by 2,19% but the savings are even better at +8,22%. Premafin –1,96%.
THE REDEMPTION OF THE POPULAR BANK
STRONGER LUXOTTICA THAN NOMURA
In contrast to the Piazza Affari the Banco Popolare +3,25% which is highlighted in the aftermath of the 2011 accounts: the maxi write-down of goodwill for 2,8 billion euros brought the result into the red by 2,25 billion but, net of write-downs, the profit consolidated rises to 574 million from 308 a year ago. Not only. Pier Francesco Saviotti, Banco's managing director, said the goal is to reach a Core Tier 1 of 9% from the current 7,1% by June without converting the 1 billion euro soft mandatory. Buzzi Unicem goes up by 1,82%, Terna +1,01%, Pirelli by 0,87%. Even luxury with Tod's is doing well which advanced by 0,78% and Luxottica by 0,74% despite the cut of the rating from neutral by Nomura.
A2A, DIVIDEND DECISION AFTER THE ACCOUNTS
TXT RUNS, A FREE INCREASE COMING SOON
The president of A2A -1,85% reopens the hopes of the shareholders for the dividend after the councilor for the budget of the Municipality of Milan Bruno Tabacci had ruled out the distribution of a dividend for this year. The decision, said Giuseppe Sala, will be taken in the light of the budget results. Txt up 9,29% after being suspended for overshooting. Yesterday the board approved the proposal for a free capital increase, in the ratio of 1 new share for each share held with the aim of increasing the liquidity of the stock.
