SPREAD AND CHINA
Il BTP Italy closes the four days of placement with record orders just over 18 billion, more than double the first issue and ten times the second. And it's not just small investors who are buying but important orders are also arriving from institutional investors, banks, funds, pension funds, insurance companies, even banking foundations and private companies. A result facilitated by the easing of tensions following Draghi's OMT programme. So it is Btp bund spread it fell again reaching an intraday low of 309 points, however rising at the close to 314 points with a yield of 4,76% but above the 311 of the opening. The Spanish auction in the morning also did well: Madrid placed all the 4,5 billion euros of planned bonds effortlessly, achieving declining yields; over 3 years the rate fell to 3,22% from the previous 3,67%, over 4 years the rate fell to 3,97% from the previous 4,60%, over the 10 year yield to 5,45% from the previous 5,66% . The bonus bund spreads is down to 371 points from 381 at the opener. In August, Spain recorded a significant reduction in its trade deficit, which collapsed by 36,1% yoy to 3,1 billion euros and thus resumed its downward trend after the slight increase recorded in July. The exports, according to data released today by the Economy Ministry, increased by 7,4% to 16,59 billion, while imports decreased by 3,1% to 19,73 billion.
Al Bundestag the German chancellor Angela Merkel affirmed that "It depends solely on Spain" to decide on a possible request for aid to the EU. In the same venue you also later defended the proposal on the super commissioner of Wolfgang Schaeuble: Germany is in favor of taking a step forward in Europe and granting "an effective right of interference in national budgets" to the European money commissioner.
In 'uncertainty due to waiting for the EU summit as the issue of banking surveillance opens today, European lists close weakly, also weighed down by US data in chiaroscuro. Milano, the only major European market in the red, closed down by 0,3%, Frankfurt +0,58%, Paris +0,22%, London +0,10%. Madrid -0,34%. The euro slides against the dollar to 1,3104.
Upon arrival at the summit they have already registered tensions between Merkel and Hollande returning from a bilateral deal that evidently did not satisfy them.
At the start, the sentiment was supported by the data on the Chinese growth which prompted Asian stock exchanges to close positively. China is slowing down, with third-quarter GDP at 7,4% against 9,3% a year ago, but the dark news is that no negative surprises have emerged and the worst seems to be behind us: both sales data to consumption that the industrial production numbers indicate a recovery in the cycle starting from the beginning of September.
USA
In the US, on the other hand, applications for unemployment benefits did worse than expected, depressing the sentiment of the lists. Wall Street opened in the red and at the close of European stock exchanges the Dow Jones was up 0,06% and the Nasdaq was down 0,23%. In the week ending October 13, applications for unemployment benefits increased by 46 to 388, against economists' estimates for a more contained increase to 365. To the rescue of the markets, on which the pressure to sell has eased, however, came the data from the Philadelphia Fed index which improved more than expected in October, to +5,7 points from -1,9 points in September against expectations of +1%. Morgan Stanley's quarterly performance was bad, with a loss of 1 billion dollars in the third quarter against a profit of 2,2 billion in the same period last year.
ITALY
A Business Square downgrades are led by Mps -6,36% after the rating cut by Moody's, Ferragamo -4,27% affected by the double downgrade of Mediobanca (to neutral from outperform) and HSBC (to neutral from overweight). Other bank stocks contrasted: Unicredit +0,38% and Bpm +1,15%; Intesa -0,74%, Banco -0,15%, Ubi -0,19%.
Campari sells 3% after the announcement of a 400 million euro bond issue to finance the acquisition of Lascelles DeMercado, Jamaican rum producer.
Mediaset -2,99% after yesterday announcing that the board meeting to approve the accounts as at 30 September 2012 was postponed by a week to 13 November 2012. Impregilo -2,78% . Beniamino Gavio, number one of Igli (29,9% of Impregilo), announced a liability action against the management of Impregilo in relation to the sale of Ecorodovias. Gavio disputes the sale price to Pactual equal to 16,5 reais per share, against a Monday stock market price of 18,1 reais.
In light of the Ftse Mib Pirelli +1,91%, Buzzi Unicem +1,83%, Stm +1,48% which will supply the chips for three new models of Samsung mobile phones thus easing the dependence on Nokia. The mobile phone company ended the third quarter with losses of 969 million euros, 14 times higher than in the same period last year. However, these are better numbers than market expectations.
