Thursday, August 4, 2016

Europe, the BoE effect does not last long. In Milan, down even Mps – Il Sole 24 Ore

It lasted just the effect of the Central Bank of English, it did play for measures to support the economy of Britain, expected to slow down. European stocks, which had stretched up on the news, have slowed while Wall Street opened slightly above parity (here follow the trend of price lists). The rest of the cut of 0.25% interest rate move by the Bank of England and to expand the quantitative easing program had already been called into account by investors, especially after the last few days the PMI index showed a contraction of ‘manufacturing activities across the Channel, plunged in July to its lowest levels since 2009. Madrid is rising supported, while Milan registered a sharp slowdown, reflecting the downward turn of some blue chips.

Banks under the lens, weak MPS
In Milan (FTSE MIB) the spotlight once again remain focused on the banks’ actions. Unicredit, who yesterday lost ground on the day of the spread of the half, gaining ground, despite the market from continuing to question on whether the information again, Jean Pierre Mustier, short ads a capital increase of 7-8 billion euro. Banca Mps, after having repeatedly changed direction, loses altitude as investors continue to question the outcome of the increase from 5 billion euro capital Rocca Salimbeni is forced to make. Meanwhile, according to Exane BNP Paribas the oldest bank in the world in September could greet the pan-European index Stoxx Europe 600. Among the banks are kept under the Bper, Mediobanca and BPM in the day when the leaders of the three institutions meet to the approval of the accounts of the April-June period.

Effect accounts of Unipol, well Tenaris despite half-year, down Fca

Unipol rewarded in the wake of the half-year closed with consolidated net profit to 276 million, down from 446 million in 2015, as it had benefited from an extraordinary result for the financial management. The board has decided to invest $ 100 million in Atlas 2. And again, Fca, after a start rising, has the knack of reversing the reflecting profit-taking after yesterday’s exploits triggered by the rumor that the company is in talks with Samsung for the sale of Magneti Marelli, valued at up to $ 3 billion. Agnelli Galaxy continue to climb Ferrari, are fine Exor. Tenaris is gettonata despite the disappointing half-year which saw earnings move from 321.4 million to 4.9 million.

Fly Safilo, up RCS

In the main basket fly the Safilo Group much to boast the best performance in Milan. The company eyewear, yesterday in trading hours, spread the half-year that has seen flying net. RCS Mediagroup earn points after the change at the top, with the ad out, Laura Cioli, and the president, Maurizio Costa, for the settlement of Urbano Cairo. Yesterday the publishing company announced a third quarter profit per19,9 million from red to 60.2 million a year earlier.

Euro

in terms of the euro exchange rate is quite stable on yesterday’s values ​​(here follow the trend of the cross). Oil is up slightly (sequi here Brent and WTI). The spread is declining in area 124 points.

Boe takes the field in economics support

For the first time since March 2009, the Bank of England gave a scissor kick to the reference bank rate bringing it to a record low level of 0.25 percent. The decision, which was expected by analysts, was taken unanimously by the board (nine directors out of nine). The Bank of England also decided to expand the program to purchase government bonds over the next six months, extending it to 60 billion pounds at a height of 435 billion. In addition, the central institution of the Channel has launched two new plans, one for the purchase of 10 billion pounds of corporate bonds and another, the potential value of 100 billion pounds, to ensure that banks do not decrease the loans after rate cut to a record low. The Bank of Ighilterra impute a marked economic slowdown, which affected output of Britain from the European Union.

The British economy outlook is “significantly weakened,” has in fact indicated the Buoys, which thus reduced the growth estimate for 2017 from 2.3% to 0.8% and for the in 2018 from 2.3% to 1.8 percent. The BoE has retained the estimate for 2016 to 2%, as there has been an expansion in the first half of the year wider than expected. The BoE also estimated a decline of business investment: a drop of 3.75% in 2016 compared to the 2.5% growth forecast made in May and a decrease of 2% in 2017 compared to the growth forecast of 7.25% formulated in May. Down also investments in property: a rise of 1.25% is expected for 2016, reduced from the previous estimate of 4%, while for 2017 the decline is estimated at 4.75% (the May forecast was a growth of 5.25%).

For the Bank of England, in addition, high inflation will be kept by the weakening of the pound: the forecast is + 2.1% in 2017 and 2.4% in 2018. The measures taken , however, also serve to ensure that inflation does not fall below its medium-term target.

Sterling falls after Boe decisions

thud of the pound after the decisions of Boe who cut the benchmark rate to 0.25%, a record low for the English central Bank, and expanded the government bond purchase program of 60 billion pounds by starting even from a plane 10 billion for the purchase of corporate bonds. The relationship between the dollar and pound stood at 1.3159 over the previous all’1,331 the announcement of Boe. At the same time weakens the euro is worth 0.8458 from 0.8306 before the decision of Boe.

ECB reiterates its readiness to take action

the European central Bank has reiterated its readiness to intervene with further measures. In Economic Bulletin published today the Eurotower indicated that given the uncertainty, the Governing Council “will continue to follow very closely the economic and financial market developments and to safeguard the transmission of its accommodative monetary policy to the real economy ».

The institute also pointed out that “in the coming months, hand in hand which will be available more information, including new staff projections, the Governing Council will better re-examine the underlying macroeconomic conditions, the most performance likely inflation and growth, and the distribution of risks around these trends. ” However, “if necessary to achieve its objective, the Council will act by using all the tools available within its mandate.”

For the ECB ‘the inflation rate in the euro area will remain at low levels or maybe even slightly negative in the coming months before recovering later in 2016 “. Linflazione “is expected to grow in 2017 and 2018, even though the outcome of the referendum in the UK has increased the level of uncertainty about the prospects.”

(Il Sole 24 Ore Thomson Plus)

© All rights reserved

LikeTweet

No comments:

Post a Comment