GREAT CELEBRATION ON THE MARKETS: STOCK MARKET +3%. THE BTP BELOW 6%, SPREAD FALLS TO 421
The response from the Stock Exchanges was not long in coming. After the agreement reached overnight in Brussels on the recapitalization of banks and the anti-spread shield, Madrid + 4%, leads the price hike ahead of the Ftse Mib +3% on a par with Paris. Frankfurt gains 2,7%.
The banks are obviously the driving force, the absolute protagonists of the start of a session that promises to be vibrant: Sanpaolo +6,8, Banco Popolare +5,2%, Bpm +5%. Increases between 5% and 7% for French institutions. The euro jumps to 1,2606 dollars, from 1,2442 yesterday evening, and overcomes the 100 yen barrier (100,50 against 98,85 yesterday). Oil trades at $79,64 a barrel.
The reaction on the government bond front is even more relevant. The yield of the ten-year BTP has already fallen this morning to 5,84% from 6,19% yesterday. The spread with the Bund drops to 421 points.
At 5 this morning Super Mario, exhausted, finally left the seat of the European Council building after a dramatic, tense negotiation that lasted 20 hours. But, surprisingly, Mario Monti comes out with the most hoped-for and least expected result; the agreement on anti-spread shield of which, the premier specified, Italy will not make use of for now. But “the euro zone – explains Monti himself before indulging in four hours of sleep – emerges strengthened”.
The agreement, approved in its guidelines provides that the Union's state-saving fund (ESM) intervenes automatically in the event that the spreads of a virtuous nation exceed a certain threshold yet to be established. On a technical level, Italy gets the shield triggered after the signing of a special memorandum with Brussels, but without triggering the intervention of the commissioners of the EU-ECB-FM troika. The technical criteria of the mechanism remain to be established, but the however, the "mental release" of the partners took place after a very hard wall-to-wall. No less important is the agreement on aid to Spanish banks: the funds will come directly from the European institutions without going through the Madrid government. For the first time the EU is directly involved in a bank recovery operation.
The parallel is disconcertingly natural: on the one hand the brace from Mario Balotelli, the new Italian, on the other an even more difficult goal by the president of Bocconi lent to politics. At 20 pm yesterday, or 45 minutes before the start of the Italy-Germany match, frau Angela Merkel was forced to cancel the press conference scheduled to celebrate the growth plan already agreed on in the previous days. Monti, backed by Spanish premier Mariano Rajoy and the "understanding" of French president François Hollande, refused to sign the treaty in the absence of anti-spread measures.
Thus began perhaps the most bitter confrontation in European history. And, among many wrong predictions, one on the contrary proved to be prophetic: in the afternoon, the Financial Times online had predicted that Monti, "one of the 125 Italians who don't follow football" would make his partners skip the match. But no one would have ever risked a happy ending to the longest night of super Mario 1 and 2.
Stock Exchange euphoria explodes in Asia for the news coming from the Brussels summit. Tokyo rises by 1,5%, Hong Kong by 2%. Futures on the S& P are also up sharply. Satisfaction with the surprisingly positive outcome of the European night overshadows the slowdown in Japanese GDP, which fell sharply in May (-3,1%).
Even more significant the leap of the euro: 1,26 on the dollar (from 1,243) with a leap of 1,5% in the space of a few hours.
Previously, the day had been extremely confusing in the markets, with frequent price swings related to rumors or statements on the proceedings of the Brussels European Council.
La Milan Stock Exchange ended a tiring day higher, characterized by frequent price swings, but with little trading. L'FtseMib index rose 0,6%. The Spanish Stock Exchange was also positive (+0,7%), while Paris fell by 0,3%.
In the morning the Treasury concluded successfully the auction of government bonds, placing 5,4 billion Btp at higher yields than the previous auction, but slightly better than the market ones. The ten-year BTPs were placed at 6,19%. In the evening on the secondary market, the yield fell to 6,16%, the spread with the Bund is at 465.
Despite the green light of the Constitutional Court to the health care reform by Barack Obama, the climate of the US markets, due to the news arriving from Europe, was conditioned by the tensions. Wall Street closed lower : Dow Jones -0,20%, S&P -0,21%, Nasdaq -0,90%.
Weight the decline of Jp Morgan -3,5% on the rumors of the New York Times according to which losses on derivatives could have reached 9 billion dollars, compared to an initial forecast of about 2 billion.
Country you go, bank you find. The institutes of the Bel Paese, for months in swing together with the BTPs, took a small revenge yesterday. Unicredit rose by 3,8%: the entry into the capital with 5% of the unknown Anglo-Russian fund Pamplona sparked speculation on the title. Understanding gained 0,9%.
MontePaschi is still in negative territory -3,5%, at the beginning of a complex industrial restructuring as well as burdened by old and new Tremonti bonds. But the Calvary of Siena has a much different dignity than the Commerzbank collapse, the second largest German bank, fell by 7,4% after announcing a capital increase of 176 million euros decided to pay bonuses to management. Meanwhile, the Libor affair, i.e. the maneuvers of the big banks to tamper with the procedures by which the Libor rate is determined, takes its first victims. : Barclays plunges 16% after a $450 million fine. Rbs (Royal Bank of Scotland) lost 12%. In Frankfurt, Deutsche Bank fell by 4,5%.
Positive Fiat +1,7%. During the inauguration of the plant built in joint venture with Guangzhou Automobile in Changsha, China, Sergio Marchionne said the group has started the process for exercising the option on 3,3% of Chrysler which expires next month and intends to increase its stake in the US company from 58,5% to 61,9% Fiat intends to exercise options on an additional 20% of Chrysler, which expire every six months from July this year to 2016 and could buy additional shares of the US company.
Telecom Italia halls +0,6%, the subject of a positive report by Cazenove. According to the broker, the stock is at a discount and the debt reduction could serve as a starting point for an increase in the stock. "After the latest dividend cut we believe that deleveraging is accelerating and that the company will reach its target of 27,5 billion euros by the end of 2012."
Meanwhile, the Telecom Italia board of directors has approved the transformation of the television division of the subsidiary TiMedia into an ad hoc company called La 7 srl. Giovanni Stella, CEO of Telecom Italia Media, is entrusted with the management of the sale. About 15 expressions of interest have arrived for the TVs of the Telecom Italia group.
Finally, any decision on the possible exercise of the liability action against the former managers of Telecom Italia, the former CEO and vice president Carlo Buora, for the events relating to the Security proceeding and the former CEO Riccardo Ruggiero was postponed to August for fake sim investigations.
Sator and Palladio presented to the Fonsai board of directors an offer 'in line with the one previously made on 8 June 2012'. The offer - specifies a note - is valid until 10 August, "without prejudice to the possibility of unilaterally revoking it upon the occurrence of certain conditions" and has been "integrated with further elements relating to the financial sustainability and economic convenience of the operation ”. Today the Premafin board of directors will have to rule on the request of the judicial custodian of the shares of Imco and Sinergia to proceed to a new meeting to evaluate both the Unipol and the Sator-Palladio offer.
Brilliant day for Diasorin +3,4%. StM rose by 1,4%, partially recovering the decreases of the previous sessions.
Ansaldo slip, down 5,7%. Positive Enel +1%, Eni +0,4%, and Terna +1,2
