Editor’s Note
Despite recent EU warnings, Italian markets showed resilience as bond yields hit record lows and stocks rallied, suggesting investor confidence remains strong.
The spread has fallen to 300 basis points for the first time since March 8, and the stock exchange climbed +3.19%. In the morning, investors welcomed the BOT auction, which closed with decidedly positive results: the yield on three-month Treasury bills recorded a new all-time low of 0.243%, and rates on one-year securities also fell to 0.922%. Demand was also strong. The day ended with signs of confidence for Italy, despite the EU’s warning on Italian contagion, and is also a good omen for tomorrow’s BTP auction.
The Cabinet gave the green light to the DEF, which forecasts a 1.3% decline in 2013 GDP and a 1.3% growth in 2014. However, the DEF expects the debt/GDP ratio for 2013 to be 130.4%, a record since the advent of fascism.
For Minister of Economic Development, Vittorio Grilli, there is a possibility of improvement in the second half of 2013. According to government estimates, the legislative decree on public administration will have an impact of 0.2 points on GDP in 2013 and 0.7 in 2014. According to EU Commissioner Rehn, it is highly likely that Italy will exit the EU deficit procedure.
European stock exchanges are also positive, despite the downgrade in WTO world trade growth estimates. The old continent’s markets are also benefiting from the good tone on Wall Street, which is rising in light of the Fed minutes which indicate that macro data is better than expected. However, the FOMC is strongly divided on the duration of QE. The euro slips against the dollar to 1.3055 (-0.21%), WTI oil falls 0.24% and gold falls 1.13%.
Frankfurt +2.27%, London +1.17% Paris +1.99%, Madrid rose 3.35%. At the close of Europe, the Dow Jones rose 0.87% and the Nasdaq rose 1.78%.
MPS jumps 14.73%. The MPS Foundation seems inclined to vote in favor of liability action against MPS’s former top management.
Also sprinting are Banco Popolare +9.68%, BPM +6.36%, UBI +5.75%, Unicredit +5.67% and Intesa +4.47%. Digitals rises 5.91%. Fiat also stands out at +7.38%. While on the FtseMib only Impregilo closed below par: -0.1%.
On Monday, the CEO of RCS (+1.72%), Pietro Scott Jovane, will present the accounts and plan to the financial community in a conference call, which the board of directors will have to approve a day earlier. Meanwhile, Italmobiliare takes its time on the increase by communicating that it will express its final decision within the timeframe.
AUTOGRILL (+4.53%) has identified advisors to finalize the split between food & beverage and travel & duty activities. Any proposal on the company’s proportional partial demerger could be examined indicatively by the board of directors next month in May. Regarding advisors, Merrill Lynch International, Banca IMI, Banco Santander will take care of the financial part, and Bonelli Erede Pappalardo and Uría Menéndez law firms for the legal profile.