HOLDS THE BOT DAM. RECOVER THE PLACE OF BUSINESS. IN RECOVERY BPM, SAIPEM STILL SUFFERS
As expected, the Treasury has placed all the 8 billion euro of six-monthly BOTs, but the rate is back above 1%, revising the highs since last February. The average yield rose to 1,1052% from 0,538% at the May auction. Demand reached 10,9 billion euros with a coverage ratio down to 1,36 against the previous 1,58.
The Btp-Bund spread is around 300 basis points: the differential between the Spanish and German ten-year bonds is 317 basis points, with the Bonos rate at 4,94%. Piazza Affari absorbs well the negative news on the Italian public finances. According to a report published today by Repubblica and the Financial Times, Italy risks losses of 8 billion euros on derivative contracts restructured by the Treasury in 2012 for 31,5 billion.
The Ftse Mib gains 1,22% to 15.240. The stock exchanges of Frankfurt +1,2%, London +0,81% and Paris +1,22% also rose. Madrid even rises by 1,51%.
“We are ready to act again if necessary” said the president of the ECB, Mario Draghi, this morning in a hearing before the Finance Commission of the French Parliament. However, he continued, “it is important to understand that there are limits to what monetary policy can achieve. It is not about the limits of our mandate. It is basically about what the different institutions are able to do”.
In Germany, consumer confidence rose to a six-year high, says the GFK survey. The German research institute Ifo estimates growth of the German economy of 0,6% for this year and 1,9% for next year. French quarterly GDP fell by 0,4% in line with forecasts.
The euro is trading at 1,307, unchanged from last night's close. Among the Milanese blue chips, Banca Pop.Milano stands out with a recovery of 3,48%. The cooperative institute has seven consecutive sessions of declines behind it in which it accumulated a loss of 22% in which it also discounted the indiscretions of a Consob investigation into last Saturday's shareholders' vote.
BancoPopolare +1,72% and Pop.Emilia +2,84% are also positive. Among the other banks, Unicredit +1,09%, Intesa +1,88% and MontePaschi +3,63% rose. Saipem -3,04%, again in the red. Eni advances +1,57%.
Good rise also for Enel, which rose by 2,6% and for Enel Green Power +3,06% which could benefit in the USA from the Obama plan for the development of renewable energies. The utilities are bubbling: A2A +0,64%, Terna +1,97%, Snam +1,96%. Telecom Italia gains 2,86%. Lengthens the StM step +2,08%.
