Mario Draghi, on the eve of the trial at the Constitutional Court of Karlsruhe on the constitutionality of the OMT plan of the ECB, took to the field in front of the monitors of the German TV ZDF. The ECB, he said, "will not intervene to ensure the solvency of a country in general". But he also underlined that in the past the ECB has spent less on bond purchases than the other main central banks and that thanks to the greater calm that reigns on the markets following the announcement of the OMT programme, "the risk for German taxpayers is today significantly lower than a year ago."
Today the ball passes to the judges in red robes before whom a series of illustrious witnesses will file, almost all Eurosceptics. The process will not end before September 22, the date of the German elections. In short, the judgment will hang like a sword of Damocles on the summer of Bot and Btp.
Meanwhile, on the eve of tomorrow's 3- and 12-month BOT auction, the situation of government bonds appears relatively stable, with the 10-year BTP traded at a yield of 4,28% (+7 basis points) and a spread at share 268 (+4 basis points) thanks to the increase in German Buns at auction.
Markets increasingly in the hands of central bank decisions. The monthly meeting of the Bank of Japan concluded a few hours ago: the governors took note of the recovery in GDP, driven by exports and the relaunch of domestic consumption. It was therefore decided to continue the policy of buying securities on the market for an annual amount of between 612 and 714 billion dollars. They have not been adopted, as had been assumed, for further purchases to avoid the volatility of the Japan bond. The reaction? The yen strengthens (98,2 against the dollar), the stock market loses share, slipping below 1,5% one hour after the closing.
WALL STREET MC DONALD LIKES IT MORE THAN APPLE
The US stock market is lagging behind. The Dow Jones closed at -0,08%, S&P500 -0,03%, Nasdaq +0,13%. Two reassuring pieces of news during the session: James Bullard, chairman of the Federal Reserve of St. Louis, said in Montreal that with such a low level of inflation it is possible to continue with the current level of bond buybacks for a long period of time. The market also benefited from the promotion of the United States by one of the debt rating agencies: Standard & Poor's raised the outlook to "stable" from "negative". The rating remains AA+. In the note, the analysts explain that in recent months the risk of a slowdown in the economy caused by the entry into force of new taxes has reduced.
Apple -0,7% after the presentation in San Francisco at the annual developer conference of the music streaming program Tines Radio and the new iOS 7 operating system for iPhone and iPad. Smartphones and tablets now represent 70% of Apple's revenues. Mc Donald's rises +1,3% thanks to higher-than-expected revenues from the Dollar Menu. Sharp fall of Booz & Allen -3,3%, last employer of Edward Snowden, the former CIA agent who revealed the interceptions of millions of Americans, In 2010, at the time of the IPO, the company, which makes a third of turnover with government agencies, had flagged "possible security breaches" as a risk.
BUSINESS PLACE, A REPORT MAKES THE BANKS WALKING
Closure down for the Milan Stock Exchange which recorded a fall in the FtseMib index of 0,8%. The decline in London (-0,1%) and Paris (-0,2%) was less substantial. The Frankfurt Stock Exchange rose by 0,6%. There are slight but disturbing crunches in the dam of finance in our house grappling with the constant fall of the real economy (see the decline in GDP). The most alarming signal comes from the banking front, among the most exposed in anticipation of the European appointments at the end of the month, precisely in the field of banking union.
The credit institutions all closed down with more substantial losses for MontePaschi -4,6% and popular institutions, starting with Pop.Milano -4,1%, Ubi -3,4%, Pop.Emilia -4,3, 1,8%. Unicredit lost 2,9%, Intesa -771%. A report by Société Générale contributed to the weakness of the banks, in which it is argued that the results above expectations for the first quarter of the Italian banks show an aggregate profit of 16 million, one of the highest levels of the last five quarters, but the quality is bad. The French broker advises taking advantage of Italian banks after the recent appreciation. Not only. We also read that Italian banks trade at a XNUMX% premium compared to their competitors in the euro area and this is not sustainable given the deterioration of the scenario.
BUFFETT TROLLING FONSAI. SHAKE REMOTE. RCS LANDSLIDE
The most favorable push comes from Warren Buffet. Berkshire Hathaway's interest pushes both Milano Assicurazioni +3,2% and the parent company Fonsai +3,2%. Unipol rose by 0,4%. Generals -0,2%. Brilliant Ansaldo Sts +2,4% and Pirelli + 2,3%. Prysmian rose by 1,6%. The new absolute record of Yoox +4,2% should be noted. But there are also weaknesses in Piazza Affari. The first note of weakness concerns Telecom Italia -4,4%. Marco Patuano's statements did not help the company: CEO Marco Patuano denied the hypothesis of a spin-off of the mobile network and postponed an assessment of the possible merger with 3 Italia to the next Board of Directors. So far all known. The forecast on the timing of the unbundling of the fixed network is less obvious, Patuano expects a long process, 15-18 months.
The landslide of the former Italian incumbent contrasts with the liveliness of Deutsche Telekom +1,44%. supported by the offer of the Japanese Softbank for the US subsidiary T mobil. New thump for Rcs – 9%. The stock has lost 34% since the day of the meeting for the capital increase. The terms of the operation will be decided on Thursday the 13th, as established yesterday by the pact meeting.
Fiat ended up with a sharp decline -4,6%: JP Morgan's considerations weigh on the probable capital increase after the planned merger with Chrysler, which according to Sergio Marchionne could be completed within the year. Eni limits the damage -0,4% after UBS lowered the target price to 20 euros from 21 euros and removed the stock from its list of favorite European shares (European Key Call), while confirming the "buy" judgment. Saipem is up 3,02%.
Also to be recorded with a fall of Maire Tecnimont -10% and Rcs -9%, both falling just a few days after the start of demanding capital operations.
