SOS OF DRAGONS ABOUT UKRAINE. US BOMBERS IN IRAK
TOKYO LOSES 2,6%. BAGS AND SPREAD UNDER FIRE
"The increase in geopolitical risks, together with developments in the economies of emerging countries, have the potential to negatively affect the conditions of the economy". The alarm raised by Mario Draghi it has invested all the financial markets, not only Europe: Ukraine, first of all, but also Syria, Iraq, Libya and Gaza, are heavy mortgages that the markets can no longer ignore.
A few hours after Draghi's words, the US air force took off to bomb ln Iraq ISIL troops moving towards the conquest of Erbil, the capital of Kurdistan, threatening Christians and US citizens.
The news sent a rush Tokyo to -3%, then rebounded to -2,6% with the release of good Chinese export data (+14,6%). All the Asian price lists are in negative territory. On Wall Street, the Dow Jones index and the Nasdaq fell by 0,46, the S&P500 by 0,56%.
Heavier the reaction of the European Stock Exchanges: Paris lost 1,3%, Frankfurt -1%, London -0,5%. Of note is the disappointing result of industrial production in Germany in June, up by only 0,3% on the previous month, against the +1,2% expected.
THE PRESIDENT OF THE ECB: "ITALY, NO REFORMS, NO INVESTMENTS"
Much more marked the descent of Piazza Affari, who in the morning had sketched a recovery after the collapse on Wednesday. TO Milano the FtseMib index fell by 1,9%. Draghi's judgment on Italy is severe, which has slipped into recession for the third time since 2008: the country can restart "only with reforms, because the lack of reforms is a major factor discouraging investment". Given the difficulties in starting a virtuous cycle.
"For the countries of the Eurozone the time has come to hand over sovereignty to Europe as regards structural reforms”. In this context, the BTP suffers again with the yield rising to 2,85% (yesterday it was 2,80%) and the spread with the German Bund widens to 180, the highest since 23 May. Meanwhile, the race for "safe havens" is accelerating: the German 1,069-year bond trades at 2.382%, the US T bond at XNUMX%, down on the American closing. Thus a new Bear departure is looming in the last session of a difficult week which marked a turning point for the price lists after a long season of low volatility.
BANKS, PEOPLE SUFFER. BPM ACCOUNTS TODAY
New landslide for the credit sector. In Europe, the sector index dropped by 1,03%, in Milan the decline was much heavier: -3,02% In particular, cooperative banks were under fire starting from Bper -13% in free fall after the accounts for the first half year. La Popolare closed the period with a net profit of 42,5 million euros, compared to a loss of 19,9 million in the same period of 2013, while net non-performing loans increased by 2,6% to 6,6 billion with a non-performing component of 2,6 billion (+6,8% since the end of the year).
Heavy too Popular Milan 7,8% which will give the quarterly today. Banco Popolare -4,3%. The declines of the main banks were more contained: Unicredit -1,1%, Intesa -2,6%. Monte Paschi is also bad -3,6%. The first half closed with a net loss of 353 million against a 'red' of 379,4 million in the first half of last year. The net result for the second quarter is negative for 178,9 million. – Among the insurance companies, UnipolSai -3,2% performed particularly badly. Generali fell by 1,2%.
FIAT AND TELECOM, RECOVERY TESTS
The session also offered positive points: Fiat it achieved a partial recovery, after the massive losses linked to the risk of a wave (for now only feared) of recessions. The stock closed at +1,39% after -3,11% and -5,55% in the last two sessions. . Positive Telecom Italia +1% on the wave of rumors about an upcoming alliance with Vivendi in response to Telefonica's blitz on Gvt. Mediaset also performed well +1,14% which could be part of the operation.
BOOM DAY FOR MONCLER DOWN JACKETS
Lastly, a day of recovery for luxury driven by Moncler +6,2% boosted by broker upgrades after second quarter results. Yoox advanced by 2,8%. Tod's + 2% after the bills. At the end of the first half, net profit fell to 56,154 million (from 75,672 million). Ebitda dropped to about 103 million (from 129 million), revenues to 478 million (from 491 million). The net financial position, as at 30 June, is positive for around 114 million. 'In a difficult market situation – commented Diego Della Valle – our medium-term plan continues with all the investments necessary to guarantee us solid future growth, both in turnover and in Ebitda, thanks also to careful cost control '.
RATES HURT FOR UTILITIES
Tensions on the cost of money front had an immediate echo in the valuation of utilities. Enel left 2,9% on the ground. Heavier the braking than A2A -5,5% and by Atlantia -4,1%. The oil sector was also weak: Eni lost 1,4%, Saipem -1,7%.
