SOS FROM SPAIN. THE BAGS HOP FOR RESCUE. UNIPOL-FONSAI, NEW EXCHANGES ONLY TODAY
Spain has (almost) given in. “The spread says the door to the market is closed and as a state we have a market access problem when we need to refinance debt.” The SOS in Brussels was launched by Spanish Treasury Minister Cristòbal Montoro via radio Onda Cero yesterday afternoon, almost simultaneously with the teleconference of G7 ministers. The minister asked that Europe make funds available for Spanish banks, underlining, however, that an "excessive, let's not talk about astronomical figures" amount of funds is not needed. But according to Emilio Botìn, head of Santander, Spanish banks need at least 50 billion.
In short, Madrid does not want to ask, as Germany would like, the intervention of the Salva States fund and the IMF, but times are getting tighter. Tomorrow the Iberian Treasury is planning an auction of Bonos: 4,5 billion of medium-long term securities. An auction that promises to be dramatic because Spain is currently treated as a near default. It should not be overlooked that the outcome of the offer will fall during the meeting of the directorate of the ECB which could decide on the rate cut.
The Spain/Germany spread is set at 514 basis points for a 6,33-year Iberian yield of 447%. For Italy, the spread is 10 basis points, the yield on the 5,65-year BTP is 1,70%. Against this backdrop, the stock exchanges have not lost hope. From Asia there are signs of a recovery for the price lists. The Japanese stock market rises by 1,09%, Hong Kong rebounds by 7%. In addition to the outcome, deemed positive, of the G1,3 meeting via videoconference, there is the unexpected rally of the Australian economy: +XNUMX% in the first quarter.
The Wall Street indices all closed in positive territory: the Dow Jones rose by £0,22, the S& 500 +0,57% and the Nasdaq +0,66% better. The European Stock Exchanges are also breathing. In Milan, the FtseMib index rose by 0,6%, Paris +1%, Madrid +0,3%. Only Frankfurt finished the day down 0,1%. The London Stock Exchange was closed again today, the second day of celebrations for the Queen's Jubilee, and again today, like yesterday, the absence of British investors was felt in terms of lower trading. The euro is traded at 1,2445 against the dollar, down slightly from the previous session (1,249).
The markets appreciated the outcome of the G7 via videoconference. Or, at least, the messages that the protagonists have filtered. They liked what Reuters called "a session full of barrels for Germany". The Financial Times, quoting the Japanese Finance Minister, underlined that the G7 had agreed to cooperate in managing common fears in Europe starting with the Greek elections. Until the even more urgent emergency of the rescue of the Spanish banks which, according to Emilio Botìn himself, Santander's number one, need at least 50 billion.
Meanwhile, confirmation arrives that Cyprus is also now on the ropes. There is "a serious possibility" that the island could ask the EU for a bailout given the strong exposure of local banks to Greek debt. This was indicated by a spokesman for the Government of Nicosia. Cyprus already has a 2,5 billion euro low-interest rate loan with Russia to cover the refinancing requirement for this year.
In European lists, the greatest increases were seen by banks, with the European Stoxx index for the sector up by 0,8%. MontePaschi rose by 6,5% after rumors of an interest by Deutsche Bank, BNL and CreditAgricole-Cariparma for the Antonveneta branches for sale together with the brand. From the sale of the Nord Este subsidiary from that of Biverbanca, the Sienese bank could obtain 6-700 million. Unicredit gained 2,3%, Understanding + 1,3% Banco Popular + 1,5% Pop.Milano + 2,6%.
Only today will we know the outcome of the night summit between Unipol e Fonsai who followed the no less long board of directors of the Bolognese company engaged in examining the counter-proposal on the exchanges coming from the companies of the Ligresti group. The Bolognese proposal, according to rumors, would eventually be "close" to Fonsai's requests. The group led by Charles Cimbri had set its stake after the merger at 66,7%, the Ligresti companies had relaunched with an offer of 61,75%. After the exchange agreement, there will be other challenging steps. The most delicate concerns the Ligresti who will have to decide whether to renounce the indemnity and the right of withdrawal as requested by Consob or to appeal against the decision. But in this case it will be impossible to proceed with the approval of the balance sheet and the 1,1 billion capital increase of the Premafin holding at the meeting of 12 June. In fact, the creditor banks set the agreement with Unipol as a condition for the agreement on Premafin debts.
In great evidence Generali +3,9%, on the second day of market reaction to the drastic change of management marked by the confirmation of Diego Della Valle's resignation from the board of directors. Mediobanca, the largest shareholder of Generali, gained 1%. The Czech group Ppf it fell to 1,14% of Generali in 2011 and the value of the stake as at 31 December last was 202 million, while "the overall loss due to impairment recognized in the income statement amounts to 183 million euros". The agreements on the joint venture with Generali, expiring in 2014, provide for a sale option in Trieste of the 49% held by the Czech partner in the Generali-Ppf holding, with an estimated outlay of between 2,5 and 3 billion euros.
Impregile it rose 4%. The boost comes from the payment of the amount (335 million) owed by the Campania region to the company for the Acerra plant. But in the background there is also the battle for control of the company between the Salini group and Beniamino Gavio who confirmed yesterday that the new president, pending the clash at the meeting on 12 July, will be Fabrizio Palenzona. positive Enel Green Power +1%, included by Equita in its recommended portfolio from which it exits Terna -0,8%.
Among the stocks down: heavy A2A which lost 2,7%. Sharp decline of Telecom Italy -5,4%, negative Lottomatica -3,8% on which weighs the risk of new taxes on the gaming sector to finance the reconstruction in Emilia after the earthquakes.
