HAPPY, IT TAKES 20 BILLION MORE. TODAY THE AUCTION BOT. HEAVY CLOSURE AT WALL STREET. AND TOKYO LOSES 1,8%
Sharp slide of the Japanese Stock Exchange -1,81% caused by the fall in exports to Beijing, partly explained by the friction between the two countries, partly by the slowdown of the Chinese economy. Hong Kong -0,17% and Shanghai +0,1% are holding up better pending the long-awaited support interventions by the Chinese government, which have not yet arrived.
Hopes of stimulus to the Chinese economy pushed higher yesterday in Amsterdam ArcelorMittal , the world's leading steel producer with growth of 2,7%, and in London Rio Red +2,4%, major producer of iron ore. But optimism is not shared on Wall Street.
The aluminum giant alcoa, -0,9% after the Stock Exchange, expects a 1% drop in world demand due to lower Chinese demand. "We expect a significant drop in demand in various areas of the planet, starting with China," said CEO Klaus Kleinfeld, commenting on the third quarter data. Alcoa's accounts, which opened the US quarterly season, report a drop in quarterly revenues compared to 12 months ago from 6,4 to 5,85 billion dollars.
Yesterday Wall Street celebrated the fifth anniversary of the all-time high of the S&P index, reached on October 9, 2007. But the event was celebrated with a massive decline, motivated by the cut in the IMF's estimates: the Dow Jones dropped by 0,81, 500%, S&P0,99 -1,52%, the Nasdaq even -XNUMX%. In Asia, S& P futures signal a bearish start to today's session.
The signs of the recession, of course, do not spare Europe. In an interview with Reuters, the head of public debt management of the Treasury Maria Cannata explained that for the current year, the issues of Italian government bonds will amount to 460-465 billion, 20 more than those forecast until summer: an increase that is a direct consequence of the upward revision of the state requirement, which in the update note of the Def accompanied the worsening of the 2012 GDP estimate to -2,4%.
The new series of auctions begins today: 3 billion euro of three-month BOTs and 8 billion of 12-month BOTs, far more than the 7,7 billion maturing. The government bond market in the Eurozone was calm on the eve, where the 10-year BTP is traded at a yield of 5,08%, with a spread of 361, widening by 3 basis points.
It is not only the Italian public finance that has to deal with a sharply worsening economic situation: the Monetary Fund reports that European banks could find themselves in the need to liquidate assets for 4.500 billion in 2013 in the absence of "fiscal policy" measures and the establishment of a single banking supervision. A phenomenon that can be explained by the flight of capital from the Eurozone which could resume soon if the hoped-for reforms do not arrive. The credit available to the economy could drop by 4% in Italy, Spain and the other southern European economies.
In one year, between June 2011 and June 2012, Italy and Spain suffered from a flight of investors due to the intensification of the debt crisis. The outflow amounted to 235 billion in Italy, or 15% of GDP, and in Spain, 296 billion, or 27% of GDP.
The Italian government passed the ten billion stability law overnight. Starting next year, the lowest Irpef rates will decrease by one point, from 23 to 22% for the bracket up to 15.000 euros and from 27 to 26% for that up to 28.000 euros. But there will be an increase in VAT, albeit by just one point instead of two, from 10 to 11% and from 21 to 22% starting from July 2013. Among the public revenues, the Tobin Tax stands out.
The echo of the bottles thrown at the motorcade escorting Angela Merkel to the center of Athens has dashed the hopes of the most optimistic. Throughout the day, investors have been waiting in vain for positive signals from Angela Merkel's visit to the Greek capital. The German Chancellor limited himself to giving signs of availability, but there has not yet been any real openness towards Athens' requests: at the end of the meeting with the Greek premier Antonis Samaras, Merkel said that Athens must remain in the euro area , but we have to see what this statement means in the light of the demands of the Greek government.
The disappointment of the markets was perceived in the closing stages of the session. The stock exchanges have lost altitude ending the negotiations on the downside. In Milan, the FtseMib index fell by 0,37%. The declines of the other Stock Exchanges were stronger: London -0,6%, Paris -0,8%, Frankfurt -0,9%, Madrid -1,8%.
Among the blue chips, the best stock was StM, up 3%: The company confirmed it has tasked JP Morgan with finding a buyer or partner for the ailing St-Ericsson joint venture, which several restructuring plans have failed to bring back to profit. Furthermore, the French government would be ready to co-finance a new nanotechnology plant in Crolles, in southeastern France. Energy stocks recovering on crude oil prices: Eni + 0,6% Total +0,2%. Down Tenaris -0,2%.
Between 24 September and yesterday, the CDP sold a further 1,6% of Eni's share capital, for a value of approximately 1,01 billion euros, thus completing the planned sale of 3,3% of the oil company's shares , for a total value of over 2,106 billion euro.
Utilities with dropped Enel which marks a decline of 1%, A2A unchanged, Enel Green Power -0,8%. That -3%. Among the Italian banks the signs are mixed. Understanding -0,8% Unicredit + 0,5% Ubi -0,7% Banco Popular-1,8%, forced to withdraw the offer of a bond due to lack of demand. On the day of the hard-fought assembly, MontePaschi sells 3% on the field. Asset management stocks also struggled: Azimuth + 1% Mediolanum -0,5% General Bank + 0,6%.
Telecom Italy drops by 1,7%. Among the industrialists, Finmeccanica closed almost at parity, -0,1%, while the subsidiary Ansaldo sts it ran up 2,6%. Among the mid caps, Amplifon +0,5% sustained by the new judgement buy of Commerzbank. Goes down Camfin -4,1% after the prolonged rally. Yesterday a complaint was filed by the Malacalzas with the Milan Public Prosecutor's Office and Consob against Marco Tronchetti Provera on the Camfin affair.
