BUFFETT HELP WALL STREET, EXPIRE HOLY EUROPE
BUT THE BAGS ARE SCARED. WAITING FOR THE ECB AND THE GDP
They brake the Asian bags after a disappointing data on the services sector in China. Slow down to Tokyo the Nikkei index – 0,2%, the drop in Hong Kong -0,5% more marked. The state of the real estate market is particularly worrying, slowing down despite the injections of Beijing liquidity, confirming that the economy is still weak.
Again Wall Street must thank Warren Buffett: Berkshire Hathaway's positive results have helped the recovery after the crash on Friday. However, the Dow Jones index advanced 0,46%, the S&P 500 0,84% and the Nasdaq 0,72%.
Instead, Europe must thank the Espirito Santo effect: the intervention of the Portuguese central bank has restored calm in the credit sector. Paris gained 0,34%, while Frankfurt lost 0,61%, London 0,02% and Madrid 0,17%.
Piazza Affari closed the session up 0,09% to 20.381 points. Clear improvement of ten-year BTP with the yield down to 2,68% from last Friday's 2,75%, the spread with the German Bund narrows to 155 (-7 basis points). Oil prices are on the rise: Brent at 105,4 dollars a barrel (+0,5%), Wti at 98,1 dollars (+0,2%).
ESPIRITO SANTO, EU RULES PASS THE FIRST TEST
Waiting for Thursday's ECB directorate, the market has taken note with satisfaction of the rescue of Banco Espirito Santo, conducted according to the rules established by the Bank Resolution Mechanism approved by the EU. The Portuguese Central Bank it injected 4,9 billion euros into a state-controlled Novo Banco where Banco Espirito's deposits and most of its assets will be moved. The government will then arrange for the sale of the institute which will repay the cost of the operation, financed with the money left over from the European fund managed by the troika. The shareholders of Espirito Santo, including the Crédit Agricole which holds 14,9%, will instead have to bear the losses of the old management.
BANKS, THE SHOW OF ACCOUNTS BEGINS WITH UNICREDIT
The removal of the Portuguese risk has reassured the Italian credit sector on the eve of an important week for the accounts of the system. The board of directors meets today Unicredit +0,9% for review of second quarter accounts. Thursday will be the turn of Ps -1,4% and Bper. Bpm +1,2% and Banco Popolare - 2,6% will close on Friday.
Advance in the meantime Understanding +1,4% in the wake of the results announced last week. Ubi +1,8%. Banca Akros which raised its rating from reduced to hold (target price confirmed at 6 euro) in the light of the good fundamentals and the fall in the share price in the last quarter.
Mediobanca -1,6%.
Also noteworthy is the leap of Banca Ifis 5,09% to 14,05 euros after having recorded double-digit growth in net profit between January and June and having confirmed the “largely positive” expectations for the second part of the year.
Banca Carige however, it lost 1,79% after lifting the curtain on the accounts for the first half on Friday evening, showing a loss of 45,5 million euros. The managing director of the Ligurian bank, Piero Luigi Montani, declared that the institute is studying the early repayment of all the ECB loans obtained with the 2011-2012 Ltro plan and the request for a new tranche of 750-800 million euros under the TLTRO programme. The exclusive with the Apollo fund for the sale of insurance companies will expire in September. Among the companies, Generali rose 0,58% at 15,69 euros in the wake of the rating increase received by Credit Suisse (from underperform to neutral) and by Exane (from underperform to neutral).
CHINESE SHOPPING, EVEN TELECOM GOES YELLOW
China is getting closer and closer. The central bank of China, the same one that invested in Fiat (2%) and in Prysmian (2,018%), holds a direct stake of 2,081% in the share capital of Telecom Italy + 1,5%.
The Chinese bank positions itself behind Marco Fossati's Findim, which holds 4,989%, and Telco with a strong 22,447%. Beijing's investment is worth just over 310 million. The news came on the eve of the board meeting which will analyze the accounts for the first half of the year today, an opportunity also to return to the Brazil chapter. L'to Marco Patuano, has repeatedly reiterated that the possible sale could only be discussed if an offer with a substantial premium is presented. In January, Marco Fossati quantified the enterprise value at 30 billion.
In the meantime it has taken off the possible merger with Gvt (Vivendi stable( appreciated by the Brazilian authorities, opposed by Telefonica. Mediobanca Securities analysts continue to believe that market consolidation represents the best option for both the Brazilian and Italian markets. Among other companies covered by Beijing Prysmian shopping (share of 2,018% announced on July 28) shows a decline of 2%.
On the other hand, Enel +0,6% and Eni +0,3% are up of which the People's Bank of China owns just over 2% since last March. The two investments are worth respectively 780 million and 1 billion.
FIAT REMAINS 10% BELOW THE WITHDRAWAL VALUE
Consob confirmed yesterday the presence of the Chinese central bank (investment 177 million) in the capital of Fiat – 0,63% to 7,065 euros, well below the value of the withdrawal (7,727 euros) which can take place after the merger with Chrysler, against which just under 8% of the capital voted 8% of the capital voted. The period for exercising the right will begin shortly, up to a maximum of 500 million euros, beyond which unification with Chrysler will be skipped.
Positive Pirelli +0,6% and Brembo +0,5%, in line with the positive trend in Europe of auto sector (Stoxx +1%), where the German BMW +1,7% and Daimler shine.
LUXURY
The Russian crisis weighs on the luxury sector, with the exception of Moncler +1,9%. Tod's lost 2,93%, Salvatore Ferragamo 3,41%, despite the good results of Michael Kors for the first quarter of the fiscal year 2014/2015. Finally, a heavy drop for World Duty Free -3%, which on Friday announced lower than expected results.
