The euro is irreversible and Draghi has released the expected bazooka. With a strong decision and with only one vote against (“it's up to you to guess who it is” he said ironically), the ECB board launched the program for the purchase of government bonds on the secondary market. Which will be conditional on the request for aid from the state-saving fund. And unlimited, despite Chancellor Merkel's opposition to unlimited purchases.
Ma Angela Merkel she returned, in the press conference after the meeting with the Spanish premier Rajoy, to support the independence of the ECB. “The ECB acts independently, within the framework of its mandate – he said, however specifying that "all the measures that serve monetary stability, such as those of the ECB, cannot replace political actions". A concept reaffirmed by Draghi, among other things, who urged the development of the "two legs" of Europe, the economic and the political one, otherwise the euro cannot work. Draghi also called for the intervention of the IMF. And in the afternoon came the reassurance of the number one of the Fund, Christine Lagarde: the Draghi plan is good, the IMF is "ready to cooperate for Eurozone stability".
Thus the Bundesbank remained isolated. The reaction is angry, complete with a press release: the President of the Bundesbank, Jens Weidmann, "is against the ECB's plan for unlimited purchases of government bonds", the plan "could cause the reforms to be postponed" in the countries at risk. In essence, Buba reiterates, the plan announced by Draghi "is in practice a loan to countries by printing banknotes".
Le Bags after Draghi's words, which left the cost of money unchanged at 0,75%, took flight, after an already positive morning waiting for the plan. The Ftse Mib jumped by 4,31% to 15.780,32 points on the highs of the last five years, Frankfurt +2,91%, Paris +3,06% and London +2,11%. Madrid + 4,53%, Angela Merkel, speaking of the meeting with Prime Minister Rajoy, said that there was no discussion of any conditions imposed on Spain.
The Btp-bund spread literally deflates to 372 points, after yesterday the spread had already started a decisive descent on the expectations of the outcome of today's board. The yield is at 5,29%. The Bono-bund spread was also down to 446. In the morning, Spain placed all the 3,5 billion planned Bonos at almost halved yields. The 2-year bonds, maturing in April 2014, recorded an average yield of 2,798% against 4,706% last June, with double demand compared to supply. Bonos expiring in June 2015 achieved an average return of 3,676% from 5,086%, with a bid to cover ratio of 1,8x. France also benefits from the easing of tensions, which has placed 10-year bonds (April 2022) for 3 billion euros with rates at 2,21% from 2,53%, the lowest since 1999. The euro recovers against the dollar to 1,2628 (+0,20%).
Wall Street is also doing well, looking to Europe but also to some important macroeconomic data after former President Bill Clinton "consecrated" Obama in the electoral battle (he stopped the US decline, Clinton said of the current US president). Initial jobless claims fell by 12 to 365, better than expected. The creation of jobs in the private sector in August was also better than the estimates, which in ADP estimates was 201 new jobs (145 units expected). In August, the private sector in the United States created 201.000 jobs. Now, as usual, we look at the official data, including the public sector, which will be announced on Friday. Finally, the Ism services index rose in August to 53,7 points from 52,6 in July, achieving a better result than expected: the employment component improved from 49,3 points to 53,8 while that of new orders fell to 53,7 from 54,3. After Draghi's words, the S&P500 rises to its four-year high (+1,85%), the Dow Jones runs by 1,8% and the Nasdaq by 1,92%. WTI oil rose by 1,56% to 96,85 dollars a barrel.
In Piazza Affari sprint of the banks, the first to benefit from the Draghi plan and the reduction of the spread. Bpm soars to +11,14%. Citigroup has raised its estimates on the stock to “take into account recent results and the latest industrial trends. Bper rises by 9,96%, Ubi +9,17%, Unicredit +8,14%, Mediobanca +6%. Piazza Cordusio and Piazzetta Cuccia are also taking a breather after the positive outcome of the placement of the unopted share of the Fonsai-Unipol double recapitalisation. In Mediobanca, faith was renewed yesterday in the successful outcome of the investigations involving CEO Alberto Nagel in relation to his signature on the Ligresti papello. Generali also did well (+6,18%) on expectations for changes in the shareholder structure. Today the company announced that it has revised the agreements for the sale of the 69% stake in the Israeli Migdal, to be finalized by October, with a price that has fallen to 705 million from the previous 835 million. Impregilo also stands out on the Ftse Mib (+6,24%%) thanks to the promotion by Intermonte to outperform from neutral.
At the bottom of the index Luxottica falls -4,79%, the only stock in the red on the main index. However, the eyewear group reduces the fall compared to the morning after the announcement yesterday evening of the sale by Del Vecchio, through Delfin, “up to a maximum of 33 million shares of the eyewear group, equal to approximately 7% of the share capital, through an accelerated bookbuilt offering reserved for institutional investors”. This morning Delfin completed the sale of only 3,8% of the share capital for 486 million euros and 18 million shares, thus closing the operation. The free float of the stock increased by 20% to 33%. L'Espresso closed up 3,80%, the protagonist of a rally with suspension and increases up to over 11%. The title arose from rumors of contacts between Carlo De Benedetti's group and Sky Italia for the start of a collaboration in the digital terrestrial television sector, with the creation of a joint venture (Sky allegedly supplied the contents, L'Espresso le digital frequencies). Sources close to the group however underlined that there are no company agreements and not even a joint venture being studied but there are commercial agreements already in place regarding the rental of the transmission band.
