AUCTIONS: TOMORROW THE BIG MATCH ITALY-SPAIN
AND TOMORROW IS ALSO THE DAY OF TRUTH FOR MPS
Le Asian bags they open the financial week downwards: Tokyo drops by 0,40%, along with Sidney and Seoul. Conversely, Hong Kong was up +0,34%. Commodity stocks are down sharply. The euro drops to 1,2529.
Operators have two concerns: the biblical times of European decisions; the concern about the braking of China and the USA. The Bloomberg panel of experts predicts that the accounts of US companies, after 11 positive quarters, should close in the red.
The time for penalties has come for financial Italy. Tomorrow the Treasury faces the markets with an offer of zero coupon securities for 3 billion euros. In the same hours the Spanish Treasury is also on the field with an auction of Bonos at 3 and 6 months.
It's on this ground, he warns George Soros, that the future of the euro is at stake. “It is not too late – he writes – for an agreement which does not limit itself to reaffirming the long-term objective of European political union but which also contains a precise road map of commitments to get there”. That is: a) the EFSF fund should buy the Greek securities owned by the ECB; 2) the ECB itself should undertake to purchase Italian and Spanish bonds in unlimited quantities; 3) Italy and Spain should approve the necessary reforms to allow the launch of the Redemption Fund, i.e. the EU guarantees on public debt exceeding 60 per cent of GDP. Otherwise, concludes the financier, the dissolution of the euro will only be a matter of time.
Big maneuvers in view of the European summit on 28-29 June. German Chancellor Angela Merkel will be in Paris on Wednesday to prepare the summit a day in advance together with François Hollande. While the troika mission to Greece was postponed due to the health problems of the prime minister and the finance minister, and will be held next week, as soon as possible, announced Amadeu Altafaj Tardio, spokesman for the EU commissioner for economic and monetary affairs Olli Rehn.
Meanwhile news coming from Athens the impossible Greek mission of getting the Germans to agree to an extension of the recovery plan does not help: in 2010-11, 70.000 officials were hired by the government in full violation of the law which, on the contrary, envisaged a clean cut. According to the weekly To Vima, which cites a dossier by the troika inspectors, 12 other people were hired by local authorities while the process of merging some municipalities was underway.
Finally, great relief for a scoop of Der Spiegel which publishes a study by the German Finance Ministry on the costs of the end of the euro. An apocalyptic scenario emerges that does not spare Berlin, which risks 5 million unemployed.
The European stock exchanges reopen their doors after a high-tension session finale, despite the good intentions expressed by the prime ministers at the four-party summit in Rome.
The index FtseMib recorded a drop of 0,6%, a better result than the other Stock Exchanges: London fell by 0,9%, Paris -0,7%, Frankfurt -1,2%.
For Piazza Affari, the balance for the week is a drop of 0,3%, which extends the negative performance since the beginning of the year to -9,4%.
Spotlights on some possible protagonists of the week.
Il Mount Paschi first of all. Last Friday, the Rocca Salimbeni institute closed sharply up +6.2%. In part, the performance is linked to the impact of the new ECB rules: the central bank has widened the collateral meshes to be exhibited in order to draw loans from Frankfurt, a valuable novelty for Spanish banks but which will also be useful in Siena.
In large part, however, the performance is linked to the wait for tomorrow's dedicated board of directors on the industrial level but, above all, to the instruments chosen to recover between 700 million and 1 billion, necessary to bring the assets up to the levels requested by the EBA. There are two possible ways: a new request for Tremonti Bond, or rather, more expensive but more linear, the issue of Co.co.bond aimed at the market. In the last quarter of an hour of trading on Friday, the main banks burned through the day's gains: Unicredit fell by 0,5%, Intesa -1,1%.
Oil stocks also deserve great attention. After last week's drop, crude oil is showing signs of awakening this morning at 80,27 dollars in the wake of tensions in the Middle East. Eni -1,5%, Saipem -3,9%, Tenaris -2,3%. The tensions on the Syria-Turkey front and the affirmation of the Muslim Brotherhood in Egypt could change the downward trend.
Wednesday 27 will be held the Fonsai assembly to approve the capital increase reserved for Unipol. "Then - declared the CEO of the Bologna-based company Carlo Cimbri - together with the guarantee consortium we will evaluate the right time to start the capital increase" already in July to start the merger process "starting from September" to be completed "by the end of 2012 so as to make the merger effective in January 2013". But first Consob will have to rule on the exemption from the takeover bid on Milano Assicurazioni. Maybe already this week.
Negative end of week for i industrial titles: Finmeccanica lost 1,9%, Fiat Industrial -3,6%, Prysmian -2%, Pirelli -2% but positive for utilities, starting with Enel +1,7%, A2A +1,2% and Atlantia +1,1%.
