Banks, Vestager opens: “Adapt rules to countries.” Positive markets even if the BoE does not cut rates – The Republic

MILAN – After the break of the day before, the markets of the Old Continent take up the gains of the road. After a brief slip of the choice of the Bank of England not to cut rates in an economy support after the referendum on Brexit that was taken for granted by most, the lists share purchases. Square Business recovers the enamel initiating and terminating in progress by 1.63%, in line with the other squares in the Old Continent: London is the only out of tune closing down 0.24%, Frankfurt gained 1.39% and Paris 1.16%. In positive territory even Wall Street , with the Dow Jones index and the S & amp; P 500 that have marked a new record. The Dow Jones gained 0.73% to close at 18506.41 points, the Nasdaq rose 0.57% to 5034.06 points and the S & amp; P 500 advanced 0.53% to 2163.75 points.

on lists, investors’ attention remains focused on the banking sector on Monday by the EU have emerged important openings the Italian plan to shore up institutions more burdened with suffering without fully taking the bail-in, or the involvement of retail investors and depositors to absorb losses before you can lengthen government aid to banks in the resolution. Confirmed today by the Competition Commissioner, Margrethe Vestager : “The banks across the EU through difficult times, no wonder that there is a strong market reaction to Brexit, but the important thing is that when we use the rules approved by all, they are adapted to the specific situation of the countries. ” And again: “If there are risks to financial stability, then there are exceptions on bail in and risk sharing” in bank resolution procedures, but “it is important – said the responsible EU Antitrust – to see what financial stability “. Even the hawk German Wolfgang Schaeuble is back as a reminder that “the solution to Italy you can within the rules.” The International Monetary Fund then went on to repeat that the Italian banking sector needs a restructuring and consolidation. Recalling the content of the annual report on the analysis of the Italian economy – published on 11 July – Gerry Rice, director of the Washington Institute communications, explained that the banking system of our country “needs a restructuring, it has to become more stronger, smaller and profitable. “

from London, meanwhile, a blow to the expectations of the financial community has come from the Bank of England has decided to leave interest rates unchanged at despite expectations for a 25 basis point cut to 0.25%, expected to help the British economy to cushion the blow of the June 23 referendum. The British central bank open to interventions in August, a “measure” package will be launched once verified the impact of the referendum on the economy potential. Meanwhile Growing skepticism around the monetary institutions: “You have created a paradox. The economy would have to tow the politics but ended up doing exactly the opposite. Relying fully to the central banks is a social situation that is created is redefining politics and politicians react scene defining the economy. in other words, it is again the policy to steer the economy, “he wrote in a recent analysis Luke Hickmore. Aberdeen.

the trend of the pound against the dollar and the jump to the news of the failure rate cut by the BoE

rising closure for the ‘ € on the dollar above 1.11 share. The single currency is changing hands at $ 1.1108 and 117.13 yen. Sterling on the rise after the Boe decision to leave rates unchanged. The pound is trading at 1.2009 per euro and $ 1.3340. In the morning, the Tokyo Stock Exchange has closed the trading day higher, while continuing the phase of depreciation of the yen while awaiting the announcement of a stimulus plan in Japan. The Nikkei index marks a 0.95% increase in gain of 154 points at 16,385.89 share. On the currency markets investors returned to selling the yen weakening the exchange rate with the dollar, surpassing portion 105. The spread stabilizes in area 125 basis points with ten-year Italian BTP making the 1, 22% after good auction result yesterday.

last night the Federal Reserve making known their Beige book has done nothing but confirm investors ‘feelings: l’ US economy continued to grow at a pace “modest” between mid-May and late June. A photograph that currently rule out a rate hike before year-end, but within the US central bank not everyone thinks the same way. The Governor of the Philadelphia Fed, Patrick Harker, reiterated just last night to expect two monetary tightening in 2016 since for him “the Brexit is now on the risks”. Today, producer prices showed an increase over the 0.5% expected in June and initial claims for unemployment benefits stopped to 254mila, less than expected.

In terms of materials first, the price of the oil more bounce of the morning: the closing of the Stock Exchange WTI EU marks a recovery of almost 2 percentage points to 45.6 US dollars per barrel, while Brent goes back to 47.2 dollars. L ‘ Gold is weak confirmation $ 1,330 an ounce area.