FRANCE LIMITS THE DAMAGES, MILAN IS WORSE
FIAT WORST BLUE CHIPS, INDUSTRIAL THE BEST
European stocks fell mid-morning after news of France's rating cut by Moody's which stripped it of triple A, leaving theoutlook (judgment on future prospects) negative. The decision reflects uncertainty about long-term growth prospects on competitiveness and the labor market.
Great expectations for the outcome of the Eurogroup on Greece which will start work today at 17pm.
The two big French banks, BnpParibas e Company Generate both down by 1,2%, Credit Agriculture falls by 1,7%. Paris reduces the decline to 0,09%.
The Stock Exchange that suffers the most is that of Milan, which is also the one that recorded the strongest rise yesterday. The FtseMib index falls by 0,52% to 15228. The London Stock Exchange loses 0,10%, Frankfurt is in positive territory at +0,28%.
The sector most affected by the sales is that of the banks, in the sights of Moody's: Unicredit drops by 1,03%, Understanding -1%, Banco Popular -1,67% Ubi -1,13% MontePaschi -1,76%.
Conflict with Moody's doesn't help Bpm – 1,75%.
In the meeting with the first six Italian institutions, the governor Ignazio Visco insisted on the need to raise the coverage of problematic credits and for a further cut in fixed costs.
After a weak start, the euro has recovered and is trading at 1,280 against the dollar, up from 1,281 at last night's close.
On the government bond market, the situation is stable: the yield on ten-year BTPs is little changed at 4,90%, the spread is at 355 (+2 basis points).
There is anticipation for this afternoon's Eurogroup meeting (17 pm) in Brussels, in which the finance ministers of the euro area will decide on the loan to Greece together with the hypothesis of a reduction in the interest rate on loans and a buy-back of bonds from Athens. The spokesman for the Commissioner for Economic and Monetary Affairs Olli Rehn said that an agreement on Greece must be reached today that covers all the guarantees and guarantees the stability of the debt. The Eurogroup is oriented towards an agreement in principle for the payment of 44 billion euros, with payment on 5 December.
Opposing destinies for the Lingotto companies Among the Milanese blue chips, the strongest loss is of Fiat falling 4,64% after UBS cut its rating a neutral da buy. Sharply down, in penultimate place, too Exor -2,67%. Agnelli's financial company was also downgraded from UBS to neutral da buy.
Fiat Industrial, on the other hand, rose by 2,37%, and is the best Italian blue chip, after the company put forward a new improved offer for the merger with the subsidiary CNH.
In the industrial sector Finmeccanica drops by 1,1%, StM - 0,9%.
The sharp rise in oil is not supportive Eni , down 0,2%. Weak too Enel -0,8%. The escalation of violence between Israel and the Palestinians sent Crude Oil up 2,5% overnight. This morning the prices are down slightly with Wti at 88,7 dollars and Brent at 111,1 dollars.
Telecom Italy drops by 0,79%.
In decline Mediaset -2,12%.
Among the mid caps Camfin increases by 7,71% pending news in the agreements between Tronchetti Provera and new investors who want to enter the controlling holding company of Pirelli –0,66%.
Rcs drops by 5,4%.
