THE FLYING BAGS HOP FOR BEN'S INCENTIVES. TODAY THE SPANISH AUCTION. BANKS, CUT AT UBI
Asian stock exchanges believe, unreservedly, that stimulus plans for the US and Chinese economies are already on the launch pad. This is what can be deduced from the strong rise in progress on Eastern stock exchanges: Tokyo +0,92%, Hong Kong +1,60%, in line with even higher increases in Korea +1,90%.
Meanwhile yesterday, having started down, the Wall Street indices gained confidence and then lengthened their pace: Dow Jones +0,81%, S&P500 +0,67%, Nasdaq +1,12%. Better than expected the quarterly results of Bank of America and Goldman Sachs. The euro, after some ups and downs, remained at the levels of this morning at 1,2289.
Above all, the rally in oil following the weekly inventories data confirmed that the economy was rebounding. The WTI type jumped about one percentage point to over 90 dollars a barrel (90, 43 dollars this morning +0,62%) for the first time since the end of May. It is the sixth consecutive increase. Brent has gone as low as $105.
Uber Alles price lists. While waiting for the Beige Book, it was Frankfurt that dictated the timing and methods of the increase which also involved the weakest places, Milan +0,43% and Madrid +0,46%. Paris +1,7% and Frankfurt +1,5% are running, returning to levels it has not seen since the beginning of May. Here too the driving force was the expectation of stimuli arriving from the USA and China (which is no less important for Made in Germany).
The moment of truth could come today when the data on US unemployment benefits are released: an increase could be the trigger to trigger the interventions on the economy shadowed in the hearings of Ben Bernanke and by the publication of the Beige Book which shows that the US recovery "is going on but at an extremely moderate pace".
For Europe, the agenda includes equally “hot” appointments: the vote of the German Parliament on aid to Spanish banks, a key step before tomorrow's Eurogroup. On the markets, then, the Spanish auction of the Bonos takes center stage.
Great success of the auction of German Schatz (2 years) with assigned yields below zero. The extraordinary demand for "safe bonds" pushed the ten-year bund future back to its highest level since the beginning of June at 145,3 points in the expectation that institutional investors will increase their requests also on the long part of the German curve.
Meanwhile, the yield on ten-year BTPs has risen to just over 6% with the spread at 484 basis points (+6 bps since yesterday's close). bonuses 6,68%. He weighed the wait for the Spanish auctions. Today Madrid (the yield on ten-year Bonos is 6,68%) offers government bonds maturing in 2014, 2017, 2019 for a total amount of between 2 and 3 billion euros. Meanwhile, Paris is offering medium-term Btan for an amount between 8 and 9 billion and indexed Oats for an amount between 1-1,5 billion.
A busy day for the banks in Piazza Affari. Unicredit -1%, Intesa Sanpaolo +2%. Monte Paschi -2,8%, Banco Popolare -0,3%. Leonardo del Vecchio, through the subsidiary Delfin sarl, brought the indirectly owned stake in Unicredit to 2,005% from the previous 1,4%. UBI cuts plan with the aim of reducing costs by 115 million from 2014 through the closure of 44 branches and the transformation of 78 branches into mini branches. The reduction in personnel can be estimated at around 1.500 units.
Skyrocketing volatility for Fondiaria and Unipol, under capital increase. The first lost 44% to 2,746 euros, the second lost 3,2% to 3 euros. Today Premafin's board of directors will kick off the capital increase which, according to the agreements with the banks, must start by 20 July, barring improbable last-minute masses from the Ligresti family.
The worst blue chip was Snam, down 4,7% following the placement of 178 million shares, equal to 5,3% of the capital, by Eni, up 2%. The shares were sold for €3,43 with total proceeds of €612 million. Among the industrialists, Tenaris +1,4% and Prysmian +1,7% were awarded.
In luxury, Luxottica +2,2% stood out, followed by Tod's +1% and Ferragamo +0,9%. Final with a bang for StM +6,5% after the positive data from Asml and St-Ericsson. Utilities are down: A2A -1,8%, Terna -1%, Enel -1,3%.
Mediaset gained 4,6% after rumors about a review of the industrial plan which provides for an increase in savings to 400 million euros from 250 million euros. Finmeccanica rose by 1,7%: in an interview with the Wall Street Journal, the president of the holding Giuseppe Orsi says he is looking for alliances with European subjects in the defense and aerospace sectors.
