BOT YIELDS COLLAPSE
SPREAD DOWN TO 479 POINTS
After a day in clear growth Piazza Affari slows down but brings home a gain of 2,09%. On the other hand, the other European Stock Exchanges are negative with the exception of Frankfurt: the Dax salt of a meager 0,44%, the Cac yields 0,15% and the Ftse 100 0,15%. Also contrasted Wall Street weighed down by disappointing data on sales, corporate inventories and unemployment benefits. At the closure of Europe the Dow Jones loses 0,27% while the Nasdaq fluctuates around parity with +0,03%.
THEauction of Bots and Spanish government bonds which was successful and saw yields drop sharply (with 12-month Italian bonds at 2,735% from 5,952%) confirmed the return of investor confidence in peripheral countries that began yesterday with the new improvement in maturities at short and the spread with the Bund on ten-year BTPs. After the auction, the spread dropped to 474,5 basis points with a yield of 6,6% and is now at 479 points. The euro, driven by the successful outcome of the auctions, regained share against the dollar at 1,2814.
The Stock Exchanges are also looking at the possible strengthening of the bailout fund: after Monti's mission to Berlin which snatched the promise from Angela Merkel today the president of the EU Commission Jose' Manuel Barroso follows the path of the premier: "We have been asking for some time that the fund be strengthened, brought forward and made more flexible", said Barroso. Finally, Mario Draghi too, in today's press conference called for an urgent strengthening.
ECB, RATES STILL AT 1%
UNCERTAINTY REMAINS HIGH, GRADUAL RECOVERY IN 2012
Draghi spoke after the Eurotower decision on interest rates that remained unchanged at 1%. Draghi said he was ready to act in February if necessary. For the president of the ECB "uncertainty remains high and there are downside risks but economic activity will gradually recover in the euro area in 2012 thanks to developments in global demand, low interest rates and the measures taken to support the sector financial". According to Eurotower forecasts, inflation will remain above 2% for several months, before falling below 2%. But to solve the sovereign debt crisis from which the risks remain, it is necessary "to urgently launch the new fiscal compact" which for Draghi "must be clear and unambiguous about the rules". And it could be signed by January. On the other hand, for Draghi, who cites Italy as a model to follow, the markets should appreciate the strong progress made by some euro area states in restoring public budgets. However, the Eurotower is very concerned about Hungary, where the new legislation, which "is not in keeping with the spirit of the treaties", "limits the powers of the local central bank".
US DATA DISAPPOINTS
If the decision on rates was already incorporated by market expectations, the US data in the afternoon disappointed instead and put a stop to the stock market run. Give him United States it has indeed arrived a trifecta of unencouraging data, in the aftermath of the reassurances of Beige Book on the US economyInitial Jobless Claims Were Stronger Than Expected Last Week, Dec Retail Sales Up 0,1%, Less Than Expectations By 0,3%; US corporate inventories rose 0,3% in November after +0,8% in October but economists were expecting a 0,4% increase.
IMF, PROMOTES MOUNTAINS.
GREECE, STILL UNRESOLVED ISSUES
Il IMF promotes the action of Monti: "These are important steps to restore confidence, spark growth and put debt back on the right trajectory," said spokesman Jerry Rice. And the Fund's mission to Italy could take place at the end of January or shortly thereafter. On the front of the restructuring of the Greek debt and the negotiations with the banks, however, the Institute of International Finance, which represents the credit institutions, underlined that "various key issues are still unresolved".
KAZAKH SOVEREIGN FUND DENIES INTEREST IN UNICREDIT
BANKS ON SCUDI, UNICREDIT SUMMIT FOR FONSAI
Piazza Affari is driven by banks, with Unicredit flying by 13,53% recovering for the third day after the bloodbath that started with the announcement of the price of the capital increase which started on Monday. The Kazakh sovereign fund Samruk-Kazyna has denied the rumors that gave it as a shareholder of about 5% of the institute. Meanwhile Citigroup raised his rating to buy. On the shields too Ps (+8,81%), suspended due to excess increases, on the day in which he is appointed the new general manager Fabrizio Viola and the unions take to the streets to protest against the leaders after 15 years. The Banco, which again excluding the capital increase option, rose by 4,07%. Ubi rises by 6,28%, Mediobanca 8,06%, Understanding by 4,03% e bpm of 6,56%.
The increase of Fondiaria Sai continues (+7,2%), no longer on the Ftse Mib, pending developments on the marriage with Unipol, now in pole position and close to formalizing the offer. L'Isvap set January 23 as the new deadline for presenting the renovation project Ligresti galaxy. Shortly before the closing of the Stock Exchange, a summit began in Unicredit with the presence also of Braggiotti, Jonella Ligresti, Nagel and Pagliaro.
ATLANTIA EXPANDS TOWL DISCOUNTS
On a Ftse Mib almost everything with the plus sign, sales pour up Atlantia which extends the discounts to -3,18%, penalized by the possible crackdown on motorway tolls, including those of existing concessions. In the morning JpMorgan he cut the rating to neutral. Weak in negative territory too Ansaldo Sts -0,69% and Rest -0,6%.
