HURRICANES: SANDY BLOCKS WALL STREET. SILVIO INVESTS THE STOCK MARKET AND SPREAD
TOKYO APPROVES NEW STIMULI. CHRYKSER PARACHUTE ON FIAT ACCOUNTS
Hurricane Sandy rages: South Manhattan is flooded with water and without electricity. Wall Street, after yesterday's stop, remains closed today as well. To find a lockout of peers duration due to bad weather it is necessary to go back to 1888. On the other hand, trading continues on the Tokyo market: futures on the S&P index are down 0,7% this morning.
Piazza Affari, on the other hand, faced hurricane Silvio, fortunately only virtual which has invested the stock list and the spread.
The repercussion on the stock market, measured on the performance of the other European stock exchanges, can be quantified at just over one percentage point: FtseMib -1,6%. Lthe London Stock Exchange fell by 0,2%, Paris -0,7%, Frankfurt -0,4% .
The Italy-Germany spread recovered to 353 points, up by 19 points with an efficiency close to 5%. “A considerably too high level compared to the fundamentals of the Italian economy”, commented Prime Minister Mario Monti yesterday during his mission to Spain. Monti then allowed himself a touch of irony with a high rate of understatement in which he excels: “Did the spread rise again because of Berlusconi? I hadn't thought about this hypothesis: I'll think about it ".
The 6-month BOT auction closed with excellent results, confirming the positive trend started in August. All the expected 8 billion euro subscribed at a yield of 1,347%, the lowest since March and lower than the 1,503% yield of the September auction. But it was there that favored the resultamount offered lower than the expiring one, due to the excellent result of the placement of the Btp Italia two weeks ago.
It will be more convincing to evaluate the orientation of the markets on the test this morning, that is,it of Btp at 5 and 10 years for a total of 7 billion.
No less disturbing is the situation of the Sicilia post-vote: the rating island it was downgraded yesterday from Fitch to BBB, with a negative outlook.
The downgrade, explains the rating agency in a note, reflects the prospect of "a budget deficit for an extended period of time amid growing financial and commercial liabilities and in a context of drained resources to keep the health service in balance".
ASIA
Fluctuating session on the Tokyo Stock Exchange +0,39% pending the decisions of the Central Bank of Japan.
This morning the Boj raised the fund for purchases on the money market to 66 trillion yen to support the liquidity of the system. The interest rate level remained unchanged.
Reflective Hong Kong –0,23%. while Shanghai, after four days of decline, interrupted its descent: the recovery of real estate stocks compensates for the fall in car prices.
EUROPE-
The Athens Stock Exchange fell by 8% following the news of the tug of war underway between the government of Antonis Samaras and the officials of the EU, the ECB and the IMF (the so-called troika) who linked the disbursement of the new tranche of aid to the launch of a new labor reform. In mid-November, the Greek government will have empty coffers and without international aid, the country risks ending up in default.
The spread between Athenian bonds and bunds rises by 34bp to 1.561, yielding 17,1%.
Meanwhile, the list of Spanish regions knocking on Madrid's door for money is getting longer. Yesterday was the turn of the Cantabria, a northern Spanish region, which has requested aid from the state fund for 137 million euros. It is the ninth of the 17 autonomous regions to request a credit line from the central government for a total of close to 17 billion euros.
Time x will kick off in mid-December. In those days the bad bank Spanish, which will come into operation on November 19, will buy with a big discount (44 billion in total) the assets "poisonous" in the hands of four publicized banks. The only one Bankia will sell assets already estimated at 50 billion for less than half (24,8 billion).
In Europe, the best stock in the Stoxx 50 index was ubs, which jumped 7,2% triggered by speculation about an upcoming announcement of a profound reorganization of the business with an associated cut of 10 employees.
ITALY
Turnaround at the De Benedetti house: the engineer takes a step back in favor of the three sons who will take control of the Cir group. This was announced in a note by Cir specifying that Carlo De Benedetti "completes the succession process within the group" after leaving his operational positions at the beginning of 2009 "in the coming weeks he will transfer control to his three sons free of charge" Rodolfo, Marco and Edoardo . Rodolfo De Benedetti, on the occasion of the next shareholders' meeting of Cir and Cofide shareholders, will be appointed executive chairman of both companies and will propose, in agreement with his family, the appointment of Monica Mondardini as CEO in April , also with the aim of further strengthening the group's management structure. Mondardini will keep the position of CEO of the L'Espresso publishing group.
The spotlight is on Fiat -0,5%, is today will announce its third quarter 2012 results and, probably, the new objectives for 2013 and 2014, drastically corrected with respect to the 2010 business plan, due to the economic and financial crisis that has hit the euro area. On the eve of the appointment, the president John Elkan revealed that "we will confirm the results for the current year which are in line with what has been said and are good".
Merit of Chrysler, is posted net profits up 80% compared to the same period last year to $381 million from $212 million, thanks to continued sales growth. For the first nine months of the year, according to the press release of the company, the net profit was equal to 1,29 billion dollars (against 509 million). Net industrial debt stood at $693 million, an improvement of $2,2 billion over last year.
Detroit is bursting with health, even too much. At this rate, a note from Morgan Stanley reads, Chrysler risks acquiring too much value and making Fiat's goal of buying 100% difficult.
In Piazza Affari the strongest declines were from the banks: Unicredit fell by 2,4%, Understanding-2,6% Banco Popular -4,3% Ubi -2,8% MontePaschi -4,4% Pop.Milano-4,4%.
At a heavy loss too Mediobanca -4,2%, which had started the session on the rise.
Positive Generali, up 0,8%.
Finmeccanica -3,8%. Ansaldo Sts it stood out with an increase of 2,3% after the release of data for the first nine months of the year which highlighted a growth in revenues and a strong improvement in the financial position.
Closing higher also for Pirelli + 1,1%.
Among the utilities, Enel fell by 1,8%, Enel Green Power -2,4% A2A -4,2%.
More contained declines for oil companies. Eni–0,9%, Saipem -0,8%Tenaris -3,2%.
