Bounce Tests a Business Square after the fall earlier in the week. The other European Stock Exchanges are also improving, as they try to absorb the effect of Donald Trump's latest decisions. TO Milano, however, the recovery lost momentum in the late morning: the Ftse Mib index rose by 0,3% around 18.800 points. Better London (+ 0,5%), Paris e Madrid they go up by 0,3%, as Frankfurt.
The rate of inflation in January in the Eurozone is expected to rise sharply, to 1,8% compared to 1,1% in December. He returned to 180 lo BTP/Bund spread this morning, tightening 10 basis points from yesterday's highs. The spread between Italian and German ten-year bonds trades at 181. Yesterday it had risen to 190, the peak since last year. In parallel, the 10-year benchmark yields 2,29%. The rate fell to 2,27% this morning after reaching 2,35% yesterday, the highest level since July 2015.
Petroleum little moved: Brent is traded at 55,2 dollars a barrel, unchanged on yesterday's close. Slight recovery for Eni (+0,3%).
The market welcomes the statements made yesterday by the president of EBA Andrea Enria who invited the EU to create a management company that buys bank non-performing loans.
Still in the spotlight Unicredit: -4% at start up, to then earn more than 1%. Now it is down again (-1,45%). The bank added another billion to the writedowns already planned in 2016 equal to 12,2 billion, therefore expects to close the year with a net loss of 11,8 billion. Wednesday's Board of Directors will fix the price and terms of the increase which could start as early as February 6th. The price of the new shares could be 10,5 euros.
Still weak Ubi (-1%), recover Bpm bank (+ 1%) and B for Bank (+1%). Down too Understanding (-0,5%). Between Saturday and Sunday, the bank's board could finalize the offer on Generali (+0,2%): HSBC lowered the recommendation to Hold from Buy, target price at 15,4 euro.
Highlights Telecom Italia (+2,5%) awaiting Friday's board meeting. This morning Morgan Stanley analysts confirmed the Overweight opinion, raising the target price to 1,15 from 1,10 euro.
In the meantime, speculation on the future role of Vivendi continues on the stock, which according to rumors is open to selling its 24% stake, which is worth around 3 billion euros, to facilitate the project of creating a pan-European broadcasting champion, of which it would belong Mediaset (+0,1%). Yesterday evening, when asked about a possible agreement with the group led by Bollorè, Fedele Confalonieri replied: "I don't know, let's see, even if I knew I wouldn't tell you."
Telecom did not comment on the rumors, while the Vivendi spokesman reiterated that the French group does not want to sell the stake in the Italian telephone company, in which it proposes to be a long-term shareholder.
Among the utilities, slight progress for Enel (+0,5%). Better Terna (+1,2%), Barclays starts hedging with Overweight and a target of 4,90 euros. Snam + 1%.
The automotive sector is also recovering. Fiat Chrysler it increases by 2% after the flattering judgments of analysts: Goldman Sachs raises its target to 21,5 dollars from 20,8 dollars, confirms the Buy judgment. UBS confirmed the Neutral judgment and revised the target price to 11,74 dollars (about 11 euros) from the previous 7,14 dollars (about 6,69 euros). For Kepler, according to Hold, the new target price is 10,5 euros from the previous 8,95 euros. Morgan Stanley has raised the target price to 13 euros from 11.
Cnh Industrial +1,7%, will release the results today. Exor + 1,9%. Brembo + 1%.
In luxury it shines Tod’s (+3,3%): Credit Suisse promotes it to Outperform and raises the target to 72 euros from 45 euros. Ferragamo also did well (+0,6%): again Credit Suisse raised the target price to 24 euros from 22 euros and confirmed the Neutral rating. Luxottica (+0,2%) closed 2016 with revenues up slightly (+2,8% reported) in line with analysts' expectations and with the low part of the guidance, helped by an acceleration in the fourth quarter mainly driven by the retail sector.
