European shares accelerate downward after the sentiment in the euro zone worsened more than expected in February in the wake of the fears for the global economy. The Sentix index, which monitors the morale of investors and analysts in the euro zone, fell to sixth in the current month from 9.6 in January. Economists had expected a reading of 7.6.
“The euro area is demonstrating, and no surprise, it is not immune to the considerable loss of momentum in the global economy,” it said in a note Sentix. The sub-index of expectations for the euro zone economy has slipped to 1.5 from 6.3 in January, to a minimum of November 2014.
So now the Eurostoxx50 recedes 1.5 %, Frankfurt and Paris glide by almost 2.5%, Madrid is the worst (-2.54%). London reduces damage, so to speak, to 1.84%. In Milan the FTSE MIB index fell below the psychological 17,000 points at an altitude of 16,965 points threshold (-1.65%). European markets also weighs the high voltage to the Athens Stock Exchange due to the uncertainties for keeping the government led by Alexis Tsipras, the center of protests and street demonstrations for the pension reform.
The main index of the Athens stock exchange gives 5%, bringing the budget for the year to -24%. The announcement of the pension reform in January by Tsipras foresees the reduction to 2300 euro monthly maximum amount (from 2700) and a minimum of 384 Euros. The measures are part of the plan requested by the former Troika (EU, IMF and ECB) in exchange for the new plan of aid by 86 billion euro traded in July.
The BTP / Bund spread widens to 132, 6 points from the previous Friday to 125.927 points. The yield on Italian ten-year rising to 1.59%. “And the risk aversion on the” markets’ round, with European shares after starting positively have turned downward. “In a situation of high volatility and uncertainty, investors sell the suburbs and buy safer assets such as the Bund,” says one
agency MF-Dowjones strategist. As for specifically Italy, it weighs also the time of difficulties experienced by the banking sector. Some titles are on the Milan stock exchange suspended in the volatility auction: MPS 
marks a theoretical decline of 6.95%, Anima 6.5%. The board of MPS approved last week the final results of the fourth quarter, after that in late January
preliminary data had been provided.
During the conference call revealed that the Sienese bank It has outsourced the management of 12% of non-performing loans (3 billion euro) but account for 80% in terms of positions (82 000) to improve processes and reduce complexity. Moreover, a unit dedicated to the recovery with 700 employees for the remainder of the internal portfolio management was created (23 billion).
At the same time MPS it is evaluating strategic options for this business unit and according to Equita analysts is possible that it could replicate the experience of Unicredit with internal bad-bank. The institute has finally confirmed that it is possible to increase the sale of the portfolio of impaired loans by $ 3 billion under the plan to 2018, thanks to government guarantees scheme.
“According to our calculations, however, hardly the amount will significantly exceed 3 billion given the Srep the “constraints, stress the Equita analysts have revised downwards their earnings per share estimates for MPS 11% and consequently the target price from 1.3 1.04 EUR (hold rating confirmed).
“The solution to the problem of lightening the weight of impaired loans remains a major transit point for the recovery of current assessments of the MPS market . The management is working on the issue, but the times do not seem to be fast “, complain the ICBPI analysts (ratings and target price under review). But this time they are not only the banks to be targeted: Fca is suspended with a theoretical decrease of 7.54% and consequently Exor (-5.25%), Poste with -6.60% and Saipem with -17.50%.
No comments:
Post a Comment