The banking system remains the exposed nerve of the Italian company. The confirmation came yesterday with the rain of sales, especially on the former Popolari, taken after the publication of the new ECB guidelines on the management of NPLs. An exaggerated reaction given that the rules will only be applied to doubtful credits generated from next January XNUMXst. But also a reminder against the excess of optimism circulating in the operating rooms: apart from the Spanish case, Italy remains the country most at risk in the EU, in the absence of reforms and the necessary confidence. Equita, with regard to the new rules on NPLs, noted that "the legislation does not take into account the different duration of bankruptcy proceedings in the various countries". But this does not justify victimhood, if anything it should push Italy to get in tune with the others.
Little news on the front of global finance. Wall Street slows down, but retouches all-time highs. The next nomination of the Fed chairman holds the table. Four names on President Trump's desk. Janet Yellen's confirmation that yesterday, speaking in Saint Louis, she avoided references on rates is not excluded. Also in contention are Gary Cohn and Kenneth Warsh. The candidacy of Jerome Powell, a member of the Fed board who yesterday said that the time will come "soon" to ease the stress tests carried out annually to determine the resilience of credit institutions in the event of a crisis, is taking off.
In Asia this morning the Japanese Stock Exchange is flat in the final session. Weak Sidney, the markets of China and South Korea still closed for holidays The Taiwan Stock Exchange rises by 0,5%. In the aftermath of the Central Bank of India's decision to keep key interest rates unchanged, the Mumbai BSE Sensex Index is up slightly. The Indian rupee yesterday lost 0,7% against the dollar to 65,1. The Indian 6,72-year yield dropped to XNUMX%, its highest since June.
With a small acceleration in the final session, the US stock markets managed to close higher, the changes in the Dow Jones (+0,1%), the S&P500 (+0,1%) and the Nasdaq (+0,05 %), are enough to send the US stock market to record new all-time highs. The good health of the economy was confirmed yesterday by the data from the Ism services index, at its highest since 2005. The decline in energy prices held back the rise.
WTI OIL BELOW 50 DOLLARS
Oil closed down for the third day in a row and below the psychological threshold of $50 a barrel. The November contract at the Nymex dropped 44 cents, or 0,87%, to $49,98 a barrel, Brent below $56. And this despite a much larger than estimated drop - of 6 million barrels - in weekly inventories Use of crude oil.
Traders focused on the fact that US production has increased to 9,56 million barrels per day, equal to the highs of July 2015, and on the fact that - with the push of shale oil - exports have reached record levels. The fear is that OPEC's efforts to rebalance the market will be jeopardized. In Piazza Affari Eni -1,2% and Saipem -2,2%.
BARCELONA HOLDS BACK ON INDEPENDENCE, MILAN -1,44%
The black jersey fell in Milan and Madrid at the end of a session dominated by corrections, especially on the banking front. But the first signs of a desire to avoid breaking with the capital are coming from Barcelona. Piazza Affari dropped 1,44%, the Ftse Mib index at 22.456.
The Spanish stock market (-2,85%) sinks as the institutional crisis worsens. The Catalan Parliament is expected to vote on independence from Madrid on Monday. This was announced by the autonomist party Cup, but yesterday evening the Catalan president Carles Puidgemont, while saying on TV that "the king has disappointed all the Catalans", did not provide precise indications on the day of the eventual declaration of independence, nor on the legal process of the provision.
Frankfurt, closed on Tuesday for public holidays, is the best list with an increase of .53%, a new all-time high. Paris contained losses to 0,08%. Flat London, -0,01%. With 181 votes in favor and 107 against, the Senate floor voted on the new public finance targets thanks to the support of the Mdp senators, the movement born from the split in the Democratic Party who left the floor when the vote for the resolutions took place to the Def.
MAXIMULT EU TO AMAZON. IRELAND AT BARRIER FOR APPLE
The European Commission has unleashed the offensive against the Big USA accused of harming competition thanks to tax agreements with various states of the Union. Yesterday Amazon was sanctioned, which will have to pay 250 million euros into the coffers of Luxembourg (which does not want them).
Even harsher is the duel with Apple, which has already been fined 13 billion euros to be paid to Ireland which, however, has refused to collect it for over a year, arguing the legitimacy of the agreement with Apple (and numerous other multinationals). The EU Commissioner Margrete Verstager thus decided yesterday to refer Dublin to the Court of Justice of the EU.
BTP LIVE, BUT THE SPREAD WITH THE BONOS IS TIGHTENING
Closing down for the Italian bond market, which in any case remained above the lows of the morning. The escalation between the Spanish central government and the Catalan authorities penalizes the government bonds of the so-called periphery of the euro area, and rewards the Bund, the safe haven asset par excellence.
Furthermore, the exchange of Treasury securities also weighed on the BTPs: this morning 2 billion were placed, against the withdrawal of just under 2,8 billion euros of four BTPs and a maturing CCTEU. The 2,249-year rate rose to 2,225% from 2,263%, after shooting up to 180%, its highest since mid-July. The yield differential between Italian and German government bonds rose to 176 basis points from 183, after reaching a peak in the 43 area, the highest since the beginning of June. The Italy/Spain spread narrowed to 73 basis points: in June it was XNUMX.
BANKS IN RED, ITALIANS LOSE DOUBLE
The basket of Italian banks dropped 2,3%, about double the European sector index (-1,2%). Moreover, robust reactions have not been lacking around Europe. Especially in Spain where the game of suffering is intertwined with the tug of war underway in Catalonia. Banco de Santander lost -4,14%, the BBVA (lost 4,03%, Caixabank 5,27%. In Paris, SocGen lost 1,1%, Bnp Paribas 1,77 .0,97% In Frankfurt Deutsche Bank limited the losses to -XNUMX%.
FORMER POPULAR PEOPLE UNDER FIRE, TOWARDS THE RETURN OF MPS
The bill for Italian banks is more salty: Banco Bpm -5,3%, Ubi Banca -3,5%, Bper Banca -3%, Unicredit -2,6% Intesa Sanpaolo -1,7%, Unicredit -2%. Monte Paschi will be back on the list by October, Fabrizio Pagani, head of the MEF secretariat confirmed yesterday.
Bad day also for insurance companies (Generali -2,2%) and for asset managers: losses around 2% for Anima, Azimut, Finecobank and Banca Mediolanum -2%. Sales are not limited to financials.
PIRELLI LIMITS THE DAMAGE TO THE DEBUT. INDUSTRIALS WEAK
Among the industrialists, Pirelli returned to the red, making its debut in Piazza Affari with a drop of 0,5% after having suffered a loss of 3% compared to the placement price at the start. Fiat Chrysler (-0,4%) and Ferrari (-0,1%) were also weak. Stm also fell back in closing (-0,7%) which had risen above 17 euros during the session.
CAMPARI SELLS LEMONSODA BUT KEEPS THE CRODINO
Campari unchanged which, with the markets closed, announced the sale for 80 million euro of the soft drinks sector to the Danish Royal Unibrew. The division sold, which includes Lemonsoda, Oransoda, Pelmosoda and Mojito Soda, the Crodo brands (excluding Crodino), the Crodo manufacturing and bottling site, the water source and the warehouse, recorded in 2016 net sales of 32,8 million and a contribution margin of 6,3 million.
CDP OPENS TO TELECOM (LOWEST SINCE APRIL)
Another bitter session for Telecom Italia (-1,9%) which slipped to the lowest level since April at 0,76 euro. The company has given mandates to Barclays, Credit Suisse and Lazard for the sale of Persidera from which it could obtain a price between 350 and 400 million euros. Meanwhile, the president of Cassa depositi e prestiti, Claudio Costamagna, said yesterday: “Open Fiber remains our priority but if the government asked us to join Telecom by exercising the Golden Power, we would look to see if it is advantageous or not. We don't have any preconceptions."
Moncler slows down in luxury (-2,7%). Mediobanca Securities lowered the recommendation to Neutral, the target price confirmed at 26,2 euro. The same analyst raised the target price of Yoox Net to Porter -39% to 28,2 euros from the previous 0,4 euros. Mediobanca also cut Luxottica's target -0,21% from 46 to 44 euros (hold opinion ).
FALCK'S LANDSLIDE, LANDI RENZO RECOVERS
Still big moves for small/mrdium caps. Falck Renewables sells 5% after Kepler's downgrade which moved the recommendation to 'hold' from 'buy', while raising the target price to 1,6 euro from 1,5.
At the Star Landi Renzo, down more than 16% on Tuesday following the announcement of the sale of professional loudspeaker maker Eighteen Sound to B&C Speaker, rebounded by 12%. Further reductions for Trevi (-3%) , on the lowest levels since 2004, and Esprinet (-1,5%). Tiscali also loses out (-5,4%). Profits were taken on Centrale del Latte (-6,5%), after +40% in three sessions on the wave of the agreement with Alibaba to sell long-life UHT milk in China.
Waste Italia soars (+27,7%) after the subsidiary Waste Italia Holding filed the application for admission to the liquidation arrangement with creditors procedure to the court of Milan.
