The dollar rears its head. Therefore, stock lists suffer also because, to accelerate the sudden change of course on the eve of the holidays, the plunge in oil, down by 4%, below 40 dollars, has contributed, something that hasn't happened since last February 23rd.
Wall Street thus interrupted its positive streak: the S&P index lost 0,6%, the Dow Jones 0,5%. Worse was the Nasdaq, -1,1%. Tokyo (-0,2%) and Shanghai (-1,1%) are also in negative ground this morning, the only major stock exchanges that will not be closed tomorrow for holidays. Hong Kong -1,1%.
What worries the markets is the change in pace of the dollar: the yields of derivatives of US government bonds have moved forward, to anticipate the next leap in inflation beyond the 2% bar. Hence the signs of a possible first increase in the discount rate as early as April, as suggested by James Lockhart, president of the Saint Louis Fed. Traders, despite Janet Yellen's reassurances, believe it: the Fed, by tradition, refrains from making moves in the last quarter of election years. Therefore, the hypothesis of one rise in the spring, the other in the summer, becomes credible.
BUSINESS PLACE -1,3%. 8 BILLION AT AUCTION ON TUESDAY
Even the European stock exchanges, after a morning of good gains, reversed course following the correction in oil prices. A cautious departure of the Old Continent's price lists is expected this morning. But in Piazza Affari there will be a celebration for the wedding between Bpm and Banco Popolare, the first concrete result of the banking reforms.
Meanwhile, yesterday, the Milan Stock Exchange closed at 18.462 points (-1,3%) after rising to 18828 points at the start of the session, corresponding to a rise of 0,7%. Paris lost 0,4% and Frankfurt gained 0,4%.
On the fixed income front, the BTP weakened with a yield of 1,31% (+4 bp). Today, with the offer of Ctz and Btpei, the month-end auctions will begin. On Tuesday 30 March, between 6,5 and 8 billion Ccteu and 5 and 10-year BTPs will be offered. During the second quarter, the Treasury will launch a new three-year Btp, a new Ccteu in addition to the five-year already available with the next offer.
BPM- BANCO POPOLARE, NOW THE CAPITAL INCREASE
“The reforms work, the popular ones change: bigger, stronger, more transparent”. With this tweet, the Minister of Economy Gian Carlo Padoan greeted last night the agreement for the merger between Banco Popolare and Bpm which today, after the suspension of trading yesterday, will face the examination of the markets.
After an endless day of meetings and remote discussions with the European Supervisory Authority, the white smoke has finally arrived. The agreement provides for the creation of a parent company in which 54% of the capital will be held by Banco shareholders and 46% by Bpm shareholders. The governance system will be of the traditional type with two headquarters, one in Verona (administrative office) and one in Milan (registered office).
For the first three years, the board of directors of the parent company will be made up of 19 directors (of which at least 9 are independent): nine will be appointed by Banco and seven by piazza Meda. Subsequently, the board will be made up of 15 members (of which at least 7 are independent).
On the equity front, a capital increase of one billion is planned for Verona in technical forms to be defined, which will in any case be carried out before the merger meetings. The note leaves open the possibility of excluding all or part of the option right and of issuing convertible financial instruments.
The third Italian operator kicks off from the wedding with a network of 2.500 branches (market share over 8%), over 4 million customers, with a leadership position in Lombardy (1st with market share over 15% ), in Veneto (3rd with a market share of more than 9%) and in Piedmont (3rd with a market share of more than 12%).
Negative session for the rest of the sector: Unicredit -3%, Intesa Sanpaolo -2,3%, MontePaschi -1%, Ubi Banca -2%. Poste Italiane rallied (+3,37%) after the announcement of the dividend.
THE DECLINE IN OIL CRUSHES ENI
Yesterday the Italian price was ballasted by Eni, down by 2,3% while Brent lost 2,3% at 40,8 dollars. Crude inventories in the United States rose much more than expected, 9 million barrels against the 3 million estimated by the consensus.
Enel also fell (-0,3%) after an upward start. Yesterday the company presented 2015 data. Ebitda fell more than some analysts' estimates. The group's board also shared the strategic plan of OpEn Fiber Spa (Eof), the company set up to build and manage ultra-broadband fiber optic infrastructure throughout the country.
MEDIASET BLOWS UP, TELECOMS ALSO HOLD DOWN
Day of rumors, largely deflated, for some blue chips. StM rose by 0,98% to 4,9840 euros after a jump mid-session to 5,11 euros. The performance of European semiconductor manufacturers (Infineo and Dialog) contributed to the increase, but even more so the rumors of a possible change of the guard: Il Sole 24 Ore speculated the arrival at the top of Marco Patuano, former CEO by Telecom Italia The rumor, however, was deflated during the session.
Disappointment also for Mediaset (-4%) after the presentation of the 2015 financial statements. There were no negative surprises in the data, on the contrary, the operating profit was better than expected. But the stock was penalized by the possibility that the sale of Mediaset Premium could vanish. During the conference call held yesterday to present the data, the financial director Marco Giordani did not provide details of any kind on the fate of Mediaset Premium, according to rumors it is destined to be sold to Vivendi. Going back to the figures for the year, operating profit, thanks to an unexpected additional cost cut, amounted to 231 million euro, better than expected.
Sharp braking also for Telecom Italia (-3,6%) pending today's meeting of the nomination committee Reuters reports that the name of the new managing director will be known by the end of the month.
RECORD REQUEST FOR THE FCA BOND
Fiat Chrysler slows down (-1,2%) on the day of the launch of the 1,25 billion bond with an 8-year maturity. The company snatched a yield of 3,75%, better than initial indications (4,125% for a total of 1,25 billion).
Among the blue chips, Finmeccanica slowed down (-0,27%) despite Banca Akros raising the target price of the stock to 15,5 euros from 15 euros, confirming the buy rating while Exane Bnp raised it from 9 to 10 euros (underperform ).
HITACHI ON THE ATTACK: ANSALDO +8%
Ansaldo Sts achieved an increase of around 8% to 10,7: with the stock market closed, Hitachi confirmed that it had purchased almost 10,5 million shares at 7 euro per share, over and above the price of the tender offer just completed, which will then be adequate. A press release from the Japanese group confirms that "Hitachi Rail Italy Investments has purchased, through Intermonte, 6.936.764 ordinary shares of Ansaldo Sts at a price per share of €10,50, equal to approximately 3,47% of the capital, which added to the 46,48% already held, brings the investment to almost 50% of the capital of Ansaldo Sts (49,95%)”. Hitachi explaining that it will adjust the price of the offer to this last price and reserves the right to proceed with further purchases.
LUXURY REBOUNCES, SUPERCOUPON FOR ERG
In the rest of the price list, the recovery of luxury should be noted: Yoox +3,5%, Luxottica and Moncler also rose. Outside the main basket, the distribution of an extraordinary dividend helps Erg (+6%). Acea (-5%) and Trevi (-5%) go down.
