Bad day for the European stock exchanges which mark widespread declines, also conditioned by the decision of the World Bank to lower the global economy growth forecasts for 2014 to +2,8%, from the previous estimate of +3,2%. The negative wave also has other reasons: a) the fear that the growth of theoccupation, higher than expected, prompts the Fed to accelerate the exit from QE and to bring forward the rate hike; b) the tensions on the Petroleum after the capture of Mosul by Al Qaeda militias; There you realize, especially in Europe, sul debt market after strong gains following the ECB meeting.
Tokyo retreats by 0,8%. Traders are expecting little news from the Bank of Japan's board meeting. Hong Kong -0,23% and Shanghai -0,15% also fell.
Wall Street retreats after a long series of records: S&P -0,35%, Dow Jones -0,60% and Nasdaq -0,14%. The market didn't like the defeat in the primaries of Eric Cantor, the Republican leader who played an important role in approving the Tarp plan and in the compromise on the budget. The victory of the Tea Party can reopen the conflict between Congress and the White House.
Bearish sitting also in Europe. The London Stock Exchange fell by 0,5%, Paris and Frankfurt fell by 0,8%. Stormy day for airlines. Lufthansa plummets in Frankfurt -14,2% after lowering its targets for the next two years and drags Air France -7% and the rest of the sector downwards: in the face of these numbers, it is better to speed up the Alitalia-Etihad confrontation . In Milan, the decline was sharper, with the FtseMib index down by 1,2%, weighed down by widespread declines among banks and by the Monte Paschi effect. The euro/dollar exchange rate is substantially stable at 1,353.
8,5 BILLION BTP GOING TO AUCTION. SPAIN OFFERS A DECENNIAL
A day of great interest is looming on the government bond front. The Treasury will offer in the auction from 3 to 3,5 billion Btp in 3 years, from 3 to 4 billion in the new 7 year and between 0.5-1 billion in 30 years. Yesterday 6,5 billion euros were placed in 12-month Treasuries at a yield at the new low since the introduction of the euro at 0,495% from the previous 0,650%. The offer was 11 billion.
In the meantime, Spain has mandated a group of banks to launch a new ten-year government bond this morning. On the eve of these operations, the market showed high volatility: many operators cashed in after the gains of the last few days. But the market's attention remains high, especially for the new 7-year which should achieve a yield of just over 2%. Below 1%, on the other hand, 3-year terms should be priced. In the evening, the 10-year BTP traded at a yield of 2,78% (from 2,80% yesterday). Spread unchanged at 138.
GENERALI DECIDES TO EXIT TELCO. MEDIASET ATTEMPT BY PHONE
In the spotlight this morning Telecom Italia +0,2%. The Board of Generali -0,48% yesterday evening gave the go-ahead for the company to leave Telco, the vehicle which owns 22,4% of Telecom. The board – reads a note released by the insurance group – 'has resolved to exercise the demerger option from Telco in accordance with the provisions of the Agreement, giving a mandate to the Group CEO Mario Greco to define the specific methods for the exit' . Generali controls 19,3 which corresponds to the direct 4,3% of Telecom, while the other shareholders are Mediobanca, Intesa and Telefonica.
In addition to obtaining direct possession of the Telecom shares, the Telco shareholders will also have to divide up the debt of the vehicle equal to 2,4 billion. In a pro-quota demerger, Generali will inherit a debt of about 470 million, while each of the two banks would have to take on about 170 million of debt. Telefonica with 14,8% of Telecom will be the company's first shareholder, but will take on 1,6 billion euro of debt.
The Spanish group has opened another dossier with an Italian company. Mediaset -2,36% paid for some profit taking after the latest increases and regarding possible moves on Digital Plus (selling Telefonica or keeping the current 22% or trying to increase the share of D+) the president Fedele Confalonieri, stated that he has not yet made any decision. Meanwhile, the battle for the rights to Serie A football is raging. the Cologno Monzese group, according to rumors, has prepared an alternative move worth over 850 million a year to secure the licenses for all matches in digital mode.
THUD OF MONTE PASCHI. BUT THE STOCK REMAINS ON THE RISE
Exchanged in fits and starts between one suspension and another due to excess downtrend, MontePaschi shares recorded a fall of 20% to 1,771 euro. However, the stock remains up 15% from last Friday's closing price (adjusted for the capital increase). The right is down by 10% to 17,80 euros. All of this has led to a significant increase in volumes handled, which went from 9 million yesterday to 60 million, almost seven times as much.
The rest of the sector was also negative: Unicredit fell by 1,4%, Intesa -1,7%, heavy loss for Mediobanca -2,8%. Banco Popolare dropped by 2,5%, Pop.Milano -2,1%. The European sector index marks -1,16%. In asset management, Mediolanum fell by 2,7%.
CRUDE FLAMES, OIL STOCKS UNDER PRESSURE
Troubled waters in the world of oil. After Bulgaria's stop at South Stream and the bad news from Kashagan (works in the field risk a stoppage of at least a year according to The Wall Street Journal) here is the news that in Iraq Shiite guerrillas close to al Qaeda have occupied the city of Baiji , in the north of the country, taking control of Iraq's main refinery. Oil is little moved: Brent is traded at 109,8 dollars a barrel (+ 0,3%), Wti at 104,62 dollars.
Significant drop for Tenaris -2,3%, world leader in pipes for the oil industry, overwhelmed by the fall of its French competitor Vallourec -11%, which announced a profit warning. Among the other oil companies, Eni fell by 1%, Saipem -1,1%.
FERRAGAMO RETOUCHES THE PRICE LISTS, DEA SELLS HEALTHCARE
The EU antitrust investigation into Fiat Finance contributed to the slowdown of Fiat, which fell by 1,7%, Finmeccanica -2,2%, StM -1,4%. Enel lost 0,7%. Among the few stocks on positive ground, Ferragamo stands out +0,3% after the announcement that it will raise prices in China and some European markets. Yoox -2,5% falls again, Moncler and Tod's closed almost unchanged.
Dea Capital also toned after announcing that it has reached an agreement for the sale, through Santé SA, of an 83,43% stake in Generale de Sante to Ramsey Health Care, Australia's leading private healthcare group, and Credit Agricole Assurances .
