Sales across Europe with Wall Street not doing better despite some positive macroeconomic data and corporate results. The renewed geopolitical tensions in Ukraine weigh heavily after the news, denied by Russia, of the shooting down during the night of a Ukrainian plane engaged in military action on the border of the two countries and the new crackdown on the economic sanctions imposed on Moscow by the United States and Europe. From Washington it is noted that the Kremlin has not taken "any step" to ease the tension, and sanctions are announced on the big banks and companies in the defense and energy sectors (Rosneft, Novateck and Gazprombank).
“Significant but targeted sanctions,” President Obama himself said. Russia has promised to respond with "painful measures" for the US, branding the sanctions "totally unacceptable" and "scandalous". As if that weren't enough in the afternoon, on the border between Ukraine and Russia, a Malaysia Airlines Boeing 777 200-er was shot down by a surface-to-air missile. It was on a flight from Amsterdam to Kuala Lumpur and was allegedly shot down by Russia according to the Ukrainian government. Moscow denies involvement, 295 dead.
Overwhelmed by the growing tensions, the Ftse Mib closed down by 2,21% at 20.603 points, the worst among the European stock exchanges. Moscow tumbled by 2,31%. Paris by 1,21%, Madrid -1,35%, London -0,68%, Frankfurt -1%. The airlines are sinking on the Stock Exchange: Delta Airlines loses 3,8%, United Continental 4,3% and American Airlines 4,2%, Lufthansa -2,4%.
Gold rose to 1.307 dollars an ounce (+0,55%) while the euro-dollar exchange rate was stable at 1,3524. WTI oil jumped 1,3% to 102,52 dollars a barrel. If the Btp-bund spread closed higher at 163 basis points, it was a positive day for Eurozone government bonds which recorded a rain of record yields. The French government fell to 1,58%, the Belgian to 1,59%, the Dutch to 1,37%.
In Europe, inflation data was released which in June stood at 0,5% in the 18-member Eurozone. Italy, on the other hand, dropped to +0,2% from +0,4%. Deflation in Bulgaria, Greece, Portugal, Hungary, Slovakia. Construction production in the euro area and in the EU-28 then fell again: according to Eurostat, in May compared to April it fell by 1,5% and 1,6% respectively. In April it had grown by 0,4% and 0,3%. On Wall Street, the Dow Jones lost 0,34%, the Nasdaq 0,81% and the S&P500 0,58%. Microsoft runs after the announcement of a maxi job reduction (18 units). Well Morgan Stanley who sees profit fly to 1,94 billion dollars from 980 million in the same period last year thanks to tax benefits. Strong performance in wealth management and investment banking offset the decline in trading revenues. Barbie in crisis: Mattel's disappointing quarterly has triggered sales on the stock.
On the macroeconomic front, the Philadelphia Fed index rose to 23,9 points in July from 17,8 points in June, well above the analysts' consensus of 16 points. US jobless claims fell by 3 to a seasonally adjusted 302 in the week ending July 12 against expectations for 310.
On the other hand, new construction sites in June were disappointing, down by 9,3% to a total of 893 homes, the lowest since September 2013. In Piazza Affari, only three stocks remain in positive territory on the Ftse Mib: Yoox +3,9%, after a favorable report by Jp Morgan, Fiat +1,38%, Buzzi Unicem +0,32%. The Lingotto benefited from the June sales data and above all from the press hypotheses of an interest by Volkswagen, rising during the day up to 5%, with the interest partially deflating after the denials in negotiations with the German company. Very strong trading equal to five times the recent daily average, the parent company Exor flat: -0,2%.
Among the smaller capitalized groups, Cementir rose by 8% to 5,89 euros. Telecom Italia weighed on the main basket -4,1% after the closure of the placement of the convertible bond in shares for 750 million by Telefonica, which at the end of the operation it will have a stake between 8,3% and 9,4%. String of reds for the banks: Banca Popolare di Milano -3,9%, Banco Popolare -3,7%, Mediobanca -3,5%.
The participants of the Pact of Piazzetta Cuccia have given the green light to a more streamlined structure of the same and to the elimination of the traditional subdivision into three groups. Furthermore, Vincent Bollorè increased his stake in the Mediobanca pact to 7,01% from 6,46%. The list of candidates for Mediobanca's board presented by the pact "will include two vice-presidents: the first designated by Unicredit and the second by the other shareholders on a proposal from the Bollore' group", indicates the new text of the pact. Ubi -3,3% also bad, Mps and Unicredit -3,2%, Intesa -2,8% in the final. Banca Carige sells 1,65%.
Today the Tax Unit of the Guardia di Finanza carried out five precautionary measures ordered by the Gip of the Court of Genoa as part of the investigation concerning the Centro Fiduciario spa of the Carige group: the director general of the trust company Antonio Cipollina, the deputy general manager Gian Marco Grosso and Marcello Senarega, one of the prosecutors of the Trust Center. The house arrest was decided for the former president of the institute Giovanni Berneschi and for Francesca Amisano, who was already under house arrest for measures issued in the context of another line of investigation, that relating to the fraud against Carige Vita.
