THE HANDBAGS RALLY STARTS AGAIN. MILAN +1,93%
CHINA AND BRAZIL READY TO SUPPORT THE IMF
After yesterday's slide, the stock exchanges start to rise again. Milan included, without much attention to the suspense for the vote of confidence in the government. However, the market spotlights are focused on Paris where the G-20 meeting of finance ministers and central bank governors is held today and tomorrow. Piazza Affari at 12 cinemas by 1,93%, with the Ftse Mib at 16,201, London +1,10%, Frankfurt +0,80%, Paris +1,02%. Yesterday Piazza Affari was the worst stock exchange with a fall of 3,7%.
BTP, THE SPREAD IS LOWERING WITH THE BUND
THE DOWNGRADE OF SPAIN IS NOT SCARY
Stock markets benefit from the good results announced overnight by Google and the willingness of China and Brazil to provide new resources to the Monetary Fund to deal with the euro crisis. The rejection of Spain by S&P it doesn't rattle investors too much. The rating agency downgraded the country's sovereign rating by one notch to AA- from AA, with a negative outlook, citing high unemployment, tightening credit conditions and high private sector debt, among other reasons . Meanwhile, Moscow lets it be known that the decision to buy Spanish bonds depends on the results of the summit of the presidents and heads of government of the European Union on the eurozone debt crisis, scheduled for October 23rd. This was reported by the Itar-Tass agency citing a well-informed source from Russian financial circles. “Before the decision of the Europeans, there cannot be even our decision”, underlined the source. The Btp/Bund spread returns to 362 basis points after a flare towards 375 basis points. The German Bund lost nearly a point from 134,55 this morning to 133,65 now, for a return that climbs back to 2,17%.
STM AND FIAT INDUSTRIAL, DOUBLE SPRINT
FINMECCANICA -3,2% PUNISHED BY HSBC
Stocks in the auto sector are pushing up the lists, the European Stoxx of the sector is up by 1,6%, the oil sector (+1,2%) and raw materials (+1,1%) also did well ). Stm shines (+5%), after the confirmation of the purchase recommendation by Rbs, and Fiat Industrial (+5,59%), with Exor (+4,11%) and Fiat (+4,26%). The exception is Finmeccanica which fell by 3,2%, after the rejection of HSBC which lowered the recommendation to underweight from neutral and set a target of 5 euro. Positive oil prices: Eni +2,2%, Saipem +3%, Tenaris +3,8%. Wti crude oil is up to 85,5 dollars a barrel (+1,5%). Saras scores +6%. The most contrasted sector in Europe is the banking sector. The Fitch rating agency cut UBS's rating and put the ratings of major French banks under observation for a possible cut, including BNP Paribas -3%, Société Générale -2,8% and Crédit Agricole -0,5%. .. Italian banks, with few exceptions, run against the trend: Ubi +2,47% Banco Popolare +1,6%, Intesa +1,95%. Slightly down MontePaschi -0,4% and Bper -0,2%. Unicredit restarts +1,9%. And the fever for Bpm + 23,2% remains high. Kerself suspended upwards (+14% theoretical) after an agreement with the Chinese Zongyi for a capital increase of 20 million euro.
ITALY SPA. VAT PUSHES INFLATION TO 3%
DEBT DOWN, TAX COLLECTION RISES
The VAT increase has just begun and the annual inflation rate in September immediately rose to 3%, from 2,8% in August. In fact, the tax hike has only begun to make its effects felt given that the increase started on 17 September and the Istat surveys on the territory stopped on the 21st of the month. In August, Italy's public debt returned below the 1.900 billion threshold broken in June. This is what emerges from the Supplement to the Statistical Bulletin of the Bank of Italy, according to which the debt in August stood at 1.899,553 billion, down by over 10 billion compared to the 1.911,769 in July. Tax revenues for the first eight months of 2011 amounted to 250,079 billion euros, up by 2,38% compared to the corresponding period of 2010. This is what emerges from the Supplement to the Statistical Bulletin of the Bank of Italy dedicated to public finance , which measures cash receipts.
PASSERA: NOBODY SHOULD FAIL IN EUROPE
SOCIAL DISCOMFORT IS 4 TIMES THE UNEMPLOYMENT
"In my opinion, to resolve the crisis unleashed by Greece we need to make it clear that we don't let anyone go bankrupt within the Eurozone", said Corrado Passera, CEO of Banca Intesa, who was in London today to take part in the 33rd edition of the conference on the banking sector organized by the Italian Chamber of Commerce in the United Kingdom. “We cannot be happy – he continued – with the way the crisis in Greece has been managed at a European level. We're in the corner and we don't know why: billions have been spent and we haven't solved anything. Let's be pragmatic: saving some of the small countries is cheaper than not saving them' I want to give a message to the politicians. Let's not underestimate the social unease that is growing and which affects a number of people three or four times higher than the official numbers relating to unemployment". This was stated by Banca Intesa CEO Corrado Passera. “If you add relatives and friends to these people – he continued – you get a very high number. It should be the first point on the political agenda, in Italy and in Europe. And it's not."
