ALL BAGS DOWN. SUFFER FROM LUXURY
FINMECCANICA AND FIAT UNDER FIRE
Stock markets down across Europe. in Milan theFtseMib index drops by 0,57% to 15.776 with widespread declines in all sectors. The Stock Exchanges of London -0,8%, Paris -0,57%, Frankfurt -0,87%, Madrid -0,43%.
The debt markets continue to wait patiently for news on Greece and Spain. The Spanish government bond auction closed this morning with the placement of a total of 3,53 billion bonds between 3 and 6 months, above the maximum 3,5 billion indicated by the issuer, with very high requests and yields half-yearly down to 2,023% (previous 2,213%). But Moody's has downgraded five Spanish regions, including Catalonia.
Flat calm also on Italian government bonds. The yield on ten-year BTPs is stable at 4,75% (+1,4 basis points), a spread of 315 basis points in line with yesterday's closing and down from the 320 reached this morning at the opening.
Equity markets are going down on the wave of the US quarterly. Texas Instruments cut fourth quarter estimates last night: Stm -1,12% tonight to release third quarter results.
Among the Milanese blue chips, the fall of Finmeccanica stands out, down by 2,62% after the news of the arrest for corruption of former commercial director Paolo Pozzessere.
Strong decline also for Fiat -1,55%: Société Générale confirmed the selll recommendation and cut the target price to 3,5 euros. Fiat Industrial -1,33%.
Mediaset drops by 1,6% after Nomura lowered the target price to 1,25 euro from 1,30 euro and confirmed the reduce recommendation.
Weak too banking sector: Unicredit loses 0,66%, Intesa -0,76%, Mediobanca -1,13%.
Strong declines also in the luxury sector in the wake of the collapse of the Mulberry accounts: Ferragamo loses 4% in the wake of the collapse of the English Mullberry, resists Luxottica -0,56%. Tod’s -1,61%.
It stands out among the rising stocks Pirelli, which earns 2% after the good results announced by its competitor Michelin +5%. The Camfin holding rises by 2,7%.
Negotiations with the public area favor some increases. Impregilo rose by 0,91%, thanks to the news that the government will include funds (300 million) in the Stability Law to pay compensation to the companies that worked to design the Messina Bridge, a work that was later shelved.
Impregile it, leader of the consortium that was awarded the construction of the bridge, should receive 135 million.
Positive too Telecom Italy +0,47% on the rumors of an acceleration towards the spin off of the network.
The challenge to the monopolies of the three rating sisters begins. Universal Credit Rating Group is born, a three-way alliance between the Chinese Dagong, the American Egan-Jones Rating Co (Ejr) and the Russian RusRating Jsc to form an agency that defines itself as "independent" and which aims to break the dominance of Standard & Poor's, Moody's and Fitch. The new entity, says the cover letter, promises to carry out its assessments as an 'independent rating service provider'. A new institution, it goes on to read, is needed to "reduce the economic risk in the development of civilization".
