CTZ AUCTION, FIRST TRIAL BY FIRE FOR THE TREASURE. MARKETS BET ON ECB AND FED MOVES
The big summer auction starts this morning. The Treasury takes the field with an offer of Ctz (3 billion) and Btp-i (up to one billion). The offers of 6-month BOTs and 5- and 10-year BTPs will then follow. A total of 18 billion to be raised by Monday 30. A crucial test to verify, after the recent storm, the return of some foreign investors.
On the eve of the verdict of Egan-Jones, a US rating agency, which cut Italy's rating from B+ to CCC+, giving the possibility of a default of Italy at 22 percent. The yield of the ten-year BTP fell to 6,39% (from 6,54% yesterday), the spread in the evening was 513 (-18 basis points).
2,32 billion 30-year Bunds were placed at a record low yield of 2,17% from 2,41% at the previous auction. But Moody's negative outlook on the most important German Lander falls on German public finances, six in all, including Bavaria and North Rhein Westphalia.
The openness of the Austrian member of the ECB, Ewald Nowitskry, regarding the banking license for the ESM bodes well. Nowitzsky, very close to the Bundesbank, said that he "can talk about it". Meanwhile, the United Kingdom officially enters a recession: at the end of June, GDP fell for the third consecutive quarter. According to the Financial Times, London risks losing the triple A in the short term.
Positive session for the Asian stock exchanges, starting from Tokyo +0,38%, pending the decisions expected from the next Fed meeting. Meanwhile, in the second quarter, South Korea's GDP rose by only 2,4%, to lowest rate since the first quarter of 2009. But Japanese finance also has its scandal at the top of the banking system. The two top executives of Nomura resigned this morning in the wake of an investigation into insider trading.
Contrasted session in US Stock Exchanges. On the one hand the negative data on the sales of new homes and the slide of Apple (-4,6%) after the disappointing accounts for the quarter, on the other the positive notes coming from Boeing +1,9%, Caterpillar +2% and from the financial sector which already discounts the probable expansive measures of the Fed. The Dow Jones closed at +0,47%, S&P -0,03% Nasdaq -0,31%.
After three consecutive sessions of declines in which the FtseMib index lost almost 10%, Piazza Affari achieved a timid recovery. The index closed with an increase of 1,1%, after having almost rebounded by 2% in the middle of the session. The other European stock exchanges also slowed down towards the end: London ended the session with parity, Paris and Frankfurt recorded gains of 0,2%.
In Europe, the greatest progress was made by auto stocks (Stoxx of the sector +1,8%) with Daimler up 4,1% after announcing that 2012 operating profit will not be lower than 2011. In Milan Fiat gained 2,3% and Fiat Industrial 4,1%, encouraged by the good indications of the American Caterpillar which sees global growth opportunities in the construction equipment business.
The greater strength of Piazza Affari compared to the other European stock exchanges comes from the banks: Unicredit rose by 1,3%, Understanding + 1,4% Popular of Emilia + 3,2% Ubi even +7,6%. In insurance, Generali it rose by 1,1%.
Violent adjustments for the companies interested in the maxi-aggregation: Fondiaria-Leaves it lost 9,7% after the discussion of the rights to the capital increase was concluded. Unipol it closed up 8,8%.
The mystery of the agreement between the Ligresti family and Mediobanca promises future developments. Alberto Nagel will explain the bank's position to the public prosecutor's office, which denies the existence of an agreement. Consob awaits indications from the judiciary to start any initiatives. Among industrial stocks, it ran Ansaldo +2,5%, a clear increase Prysmian + 3,6% StM it recovered after yesterday's drop and rose by 4,7%.
Strong game, Telecom Italy rose by 2%: in Brazil a painless conclusion is approaching in the story that saw the local telecommunications authority impose a halt on the commercial activity of the subsidiary Tim Brazil. Sharp rise of Amplifon +7,5% after good quarterly data.
Telefonica decides this year not to pay the dividend to meet debt maturities, cancels the buy-back program and cuts its revenue estimates for 2012. On the occasion of the publication of the half-year report, the company announced that it was canceling the dividend and the buyback program relating to 2012, as an exceptional measure and to resume remunerating shareholders in 2013.
