TREASURE DRIVES OUT THE BEAR THANKS TO BOTS. THE DISPUTE WITH THE UNIONS HAS A WEIGHT ON FIAT
The Treasury sold BTPs with 5 and 10-year maturities for 5,65 billion euros, just under the maximum target of 6 billion, recording a drop in rates. The average yield on the 5,24-year bond fell to 5,82% from 5% at the August auction, revisiting the lows since March. Over the 4,09-year period, the yield fell to 4,73% from the previous 2017%. The Treasury has also assigned Cct 1 for 4,56 billion euros, (maximum pre-set amount) with a yield of XNUMX%.
Before the auction, the Btp-Bund spread widened to almost 380 basis points (378,5) just a few minutes after the results of the Treasury's Btp auction. The yield rose to 5,23%. Piazza Affari reacted positively to the outcome of the medium/long-term Btp auction. In Milan, the FtseMib index rises by 0,3%, shortly before it fell by 0,2%. The main European Stock Exchanges rose slightly, Paris and Frankfurt rose by 0,4%, London +0,2%. Madrid remains at stake with a drop of 0,5%.
Today's session could reserve some surprises for the arrival of some important macro data from the USA and for the new finance law that will be presented in Spain. The Spanish government, grappling with the discontent that resulted in street demonstrations, will present today a tough 40 billion euro finance law with heavy interventions on the pension system. Moody's rating review is pending on Madrid this week.
To make matters worse, the news is that the Spanish region of Castilla La Mancha could request emergency funds of 800 million euros from the central government. Castilla La Mancha would be the fifth Spanish region to make an official request for aid. The Spanish government has set up an 18 billion euro aid mechanism to solve the financing problems of the country's 17 autonomous communities. Catalonia, Valencia, Murcia and Andalusia have already declared that they will resort to aid.
The euro is trading at 1,286 against the dollar, from 1,287 at yesterday's close. Oil recovering with Wti at 90,2 dollars a barrel (+0,3%) and Brent at 110,1 dollars (+0,1%). Fiat is down by 1,53% to 4,282 euros. In the last 9 sessions the title has lost 11% of its value. Today, the news of the failure to reach an agreement between Fiat and VEBA is holding back prices. The Lingotto has exercised the right to purchase the 3,3% of Chrysler held by Veba, but the two groups have not yet reached an agreement on the price. With this purchase Fiat would rise to 61,8%, the goal is to reach 100% of Chrysler.
There are actually two open fronts with Veba, a fund managed by the Uaw union, United auto worker. It is also yesterday's news of the lack of agreement on the negotiations between the union and Chrysler for health coverage aimed at the car group's retirees. In Milan, the biggest increases for the blue chips are Buzzi +1,4% and Campari: the latter gains 1,7% thanks to the promotion of JP Morgan which raised its recommendation to Overweight.
Among the stocks related to oil is Tenaris to soar with a gain of 0,6%. Eni slides down 0,3%.
