Inflation still below zero, euro strongly recovering against the dollar. In this context, the financial markets retreat, giving up a good part of the progress of the last two sessions. In particular, Piazza Affari -1,60% pays the price of the crisis in the banking sector, increasingly targeted by sales. The decrease in Paris -1,1%, Frankfurt - 0,5% and London -0,6% was less significant. Madrid -1,4%.
The dollar's descent continues, with the euro rising to 1,136, from 1,133 at yesterday's close.
Consumer prices in the euro area fell by 0,1% on an annual basis in March compared to -0,2% in February, in line with consensus expectations. In Italy they marked a drop of 0,2% compared to the same month of the previous year, instead on a monthly basis, after two consecutive drops, they showed a +0,2%.
The Btp/Bund spread widened slightly to 106,8 basis points from 105,6 basis points at yesterday's close.
VIOLA: "THERE IS NO QUEUE OF FOREIGNERS TO INVEST"
In Piazza Affari the most targeted sector is, as usual, the banking sector (European Stoxx index -1,6%). Unicredit drops by 4% crippled also by doubts about the guarantee of Pop's capital increase. Vicenza. The institute informs that “in relation to the listing of Banca Popolare di Vicenza, Unicredit is assessing whether the conditions exist to carry out the operation on schedule. On this issue, Unicredit denies having contacted the Italian Government”.
This morning UBS announced that it had started hedging the stock with a Neutral recommendation and a target price of €3,70.
It gets even worse MontePaschi -6,2%: the bank is starting to close the first quarter of the year with a loss of around 60%. This morning Bofa-Merrill Lynch cut the recommendation to Hold da Buy. The US broker's analysts are convinced that margins will remain under pressure also due to the probable weakness of the revenue growth trend. The target price was cut to 0,65 from 1,10 euro.
The opinion of CEO Fabrizio Viola is disconsolate. “In Europe in recent years I have seen very few aggregations due to regulatory uncertainty in general and then there is also an 'Italy' theme: abroad there is no perception that Italy is completely out of the recession, they look at us with interest but there is no queue of investors ready to invest billions in banks or anything else”. The manager added: "In addition, there is an uncertainty about Mps which has made everyone more cautious".
It also moves back Understanding -1,2% despite UBS starting hedging with a Buy recommendation.
Strong declines even among the popular banks: Banco Popolare plunges -7,6% below 6 euros, close to the historic low. Pop.Milan -5%, Ubi-4,9%.
It also misses out Carige -3,20% while the meeting for the appointment of new top management is in progress. The main shareholders (Malacalza family) seem intent on opposing their own plan to the proposal launched by the US Apollo fund.
ALLIANZ OFFERS A PORTFOLIO OF LIFE POLICIES FOR SALE
Among the insurance companies, Generali fell by 1,1%. Allianz -0.9%, Italy's fourth-largest life and health insurer, has mandated Goldman Sachs to sell a €4,5 billion portfolio of Italian closed-end life policies that pay a minimum interest rate of 2%. The deal could be worth around 200 million euros. The closed-end life insurance business absorbs a lot of capital under the new European capital rules for insurance companies.
RECCHI BUYS 315 TELECOM ITALIA
Telecom Italia drops by 0,7% after the appointment of Flavio Cattaneo to the top. Chairman Giuseppe Recchi bought 315.000 shares on the market at €0,95 each for a total value of €299.250.
It also moves back Mediaset -1,4%.
Ioil is also down: Brent is traded at 39 dollars a barrel (-0,6%), Wti at 37,8 dollars (-1,2%). Eni loses 2,2%, Tenaris -0,6%, Saipem -1,5%.
Enel fell by 1,1% in a context of generalized declines also for the utility sector. Snam loses 1,1%, Terna -0,9%, A2A positive +0,4%.
Finally, the industrialists. Finmeccanica -0,8% and StM -0,7% lost ground.
Fiat Chrysler is tied, Cnh Industrial falls by 1,7%.
In luxury down Luxottica -2,2% and Moncler -1,4%
