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Banca Carige
10 марта, 09:08

Италия не Греция - еще хуже

В 14 веке семейство Медичи из Флоренции начало восхождение к вершинам славы и власти, вкладывая доходы от процветающей торговли тканями в финансовое предприятие, которое стало крупнейшим банком Европы. Успех легендарного клана, который сейчас прочно ассоциируется с банковским делом, помог расцвести итальянскому Ренессансу и изменил мир. Сейчас итальянские банки еще раз собираются изменить мир. В первые месяцы 2016 года акции крупнейших банков Италии спикировали вниз, пишет сайт Global Risk Insights (GRI). Плохие долги достигли таких размеров, что не обращать на них внимание уже стало нельзя. В центре «итальянской» проблемы невозвратные кредиты (NPL), общий объем которых оценивается в 17-21% от всех кредитов на полуострове. В абсолютном исчислении NPL оцениваются приблизительно в 200 млрд евро или 12% от ВВП Италии. В отдельных случаях их объем достигает 30% балансов банков.

19 декабря 2014, 15:04

Futures Continue Rising As Illiquid Market Anticipates More Volatility In Today's Quad-Witching

Yesterday's epic market surge, the biggest Dow surge since December 2011 on the back of the most violent short squeeze in three years, highlighted just why being caught wrong side in an illiquid market can be terminal to one's asset management career (especially if on margin), and thus why hedge funds are so leery of dipping more than their toe in especially on the short side, resulting in a 6th consecutive year of underperformance relative to the confidence-boosting policy tool that is the S&P. And with today's session the last Friday before Christmas week, compounded by a quadruple witching option expiration, expect even less liquidity and even more violent moves as a few E-mini oddlots take out the entire stack on either the bid or ask side. Keep an eye on the USDJPY which, now that equities have decided to ignore both HY and energy prices, is the only driver for risk left: this means the usual pre-US open upward momentum ignition rigging will be rife to set a positive tone ahead of today's session. On the last trading day of the week, markets have been subdued with most European equities trade lower after coming off best levels with the FTSE MIB among the underperformers due to the weakness seen in the Italian banking sector with Banca Carige shares halted. Furthermore, the SMI is also under pressure as Roche (-5.3%) discontinued their scarletred drug trial with MorphoSys (-8.3%). In fixed income markets, Bunds initially edged lower taking cues from yesterday’s continued post-FOMC sell-off across USTs, but has since pared those earlier losses as choppy price and light volumes dictate the state of play. One hour ago a Reuters report was released citing ECB sources, stating that in any QE program, officials are looking into making weaker Euro-zone countries face a large cost and take larger risk burdens, the reports further suggest that the ECB could require weaker central banks, such as Greece or Portugal, to make provisions to cover any potential losses from a sovereign bond buying QE program. A step in this direction could help push Germany into accepting a sovereign QE program. However, these comments failed to impact the market and if anything pushed European stocks lower. Asian equities traded mostly higher after the rally on Wall Street, which saw the DJIA soar over 400 points and the S&P 500 gain the most since Jan’13. Nikkei (+2.39%) led with gains underpinned by further JPY weakness and is on course for its best session since Oct. 31. Hang Seng traded up 1.25% while the Shanghai Comp (+1.7%) pared earlier losses and made its 6th consecutive weekly gain. Further speculation for PBOC stimulus has stemmed from the on-going Chinese liquidity crunch as money-market rates jumped the most since the June 2013 record cash crunch. The 7-day and 14-day Repo rates touched their steepest level since January 2014 while the O/N Shibor rate fixed at its highest since February 6th. The USD-index has remained flat with most major pairs following suit with USD/JPY trading higher aided by the slightly weaker JPY after the BoJ raised their assessment on output and exports providing some reprieve to the Japanese economy. In addition, RANsquawk sources note of a large USD 10.8bln expiry in EUR/USD at 1.2300 and a USD 3.8bln expiry at 1.2250-60 at the NY cut (1000EST/1500GMT). In the energy complex, WTI and crude have slightly bounced back from yesterday’s sharp selloff helped by the stable USD. Brent rebounds to $60 as the falling knife catchers attempt to time the lows once again following late day selloff yesterday. "We have seen a little bit of a strike back this week from the market, stabilizing since hitting a new low on Tuesday," says Saxo Bank head of commodity strategy Ole Hansen cited by Bloomberg. "The fact we continue to see bottom fishing could indicate investors are trying to dip their toes back into the market, but we are not out of the woods yet." Separately, Copper bounced back from yesterday’s lows as it heads for its 1st weekly decline this month, with prices pressured following yesterday’s weak China property data and the current liquidity concerns which has led to increases in Chinese money market rates. Elsewhere, iron-ore prices were marginally higher overnight to halt its prior 9-day decline. In precious metals, Gold has traded relatively range-bound in sympathy with the USD which has been flat due to a lack of macro news dictating movements. Bulletin Headline Summary European equities trade lower with light volumes and choppy price action in a rather subdued session. Looking ahead, we have possible comments from Fed’s Evans and Lacker, quadruple witching and Canadian CPI and Retail Sales. Treasuries head for weekly loss led by 7Y notes as crude oil advances, ruble strengthens; S&P 500 up ~3% this week, biggest gain since October, after Fed promised patience on rate increases. U.S. Treasuries are on track to return about 6% in 2014 led by double-digit gains for 10Y and 30Y sectors, according to BofAML indexes, even as Fed policy evolution pushed 2Y, 3Y yields to highest since 2011 UST 5/30 curve spread has narrowed by more than 100bps to lowest levels since Jan. 2009 Banks added to their wins in Washington this month by getting a reprieve from the Volcker Rule that will let them hold onto billions of dollars in private-equity and hedge-fund investments for at least two more years While slumping crude prices are projected to boost U.S. economy by leaving more cash in consumers’ pockets, they also threaten to limit growth, tax revenue and job opportunities from Texas to North Dakota, subduing the most rapidly expanding U.S. regions ECB could require central banks in countries such as Greece or Portugal to set aside extra money or provisions to cover potential losses from any bond-buying, reflecting the riskiness of their bonds, Reuters reports, citing unidentified officials France’s Hollande floated the prospect of scaling back sanctions on Russia, becoming the first major EU leader to offer to ease the Kremlin’s economic pain The Swiss National Bank’s resort to negative rates leaves President Thomas Jordan holding a weaker hand for when the ECB ramps up stimulus London home prices are losing ground to other U.K. cities as restrictions on mortgage lending deterred buyers in the country’s best-performing market this year China revised the size of the economy by $308.8b, adding almost the entire output of Malaysia; GDP of world’s second- largest economy was 58.8t yuan in 2013, according to a nationwide economic census; revision won’t affect 2014 growth China’s benchmark money-market rate jumped the most since a record cash crunch in June 2013 as new share sales locked up funds in the banking system Sovereign yields mostly higher. Asian stocks gain, European stocks lower, U.S. equity-index futures rise. Brent crude and copper gain, gold lower US Event Calendar 11:00am: Kansas City Fed Manf. Activity, Dec., est. 7 (prior 7) 10:00am: Fed’s Evans speaks in Chicago 12:30pm: Fed’s Lacker speaks in Charlotte, N.C *** As usual, DB's Jim Reid concludes the overnight summary Before we make our final comments of the year regular readers will know I'm one for pointless anniversaries well today marks another one. 5 years ago today on the first very snowy day for years I moved out of London after 14 and a half years and migrated back home to the Surrey countryside. As a result my golf handicap has improved immeasurably but my social life has diminished. I don't get told off for playing my music too loud anymore but I also have to drive to get a pint of milk. I have to commute rather than walk everyday but I don't get so frustrated at having to battling through hoards of people most of the time. I don't pay ridiculously high service charge on a flat anymore but 5 years on I still haven't finished exorbitant refurbishments. What looked a bargain at the time is proving less so with all the building work. Overall I'd recommend it to people who are naturally becoming more anti-social as they age, who love golf, who like to play music louder and who want much, much more space for their money. However be realistic about any house that needs work. It will cost you 3 or 4 times what you think, especially if you get married during the process and have your eyes opened to the finer things in life!!! Who knew the cost of wallpaper! Overall no regrets although my retirement has been pushed back a few decades!! Having said that if markets extrapolate the past 2 days continuously for a few years maybe I can retire before my building work is finished. The S&P 500 (+2.40%) saw its best 2-day gain (+4.49%) since November 2011 with the Dow (+2.43%) last night seeing its best single-day gain since December 2011. The S&P 500 is now back to just 0.7% off its December 5th highs. Most of the wires seem to link it to the Fed being dovish and using the word 'patient' but the truth is that you could equally say that Yellen made some surprisingly hawkish comments given all that has been going on of late. In reality equity markets were also given a late boost from a turnaround in energy stocks despite what turned out to be a weak day for oil overall. The energy component of the S&P 500 closed +2.13% with the bulk of the gains coming in the last hour of trading as both WTI and Brent rallied 1%-1.5% off their intraday lows at the end of the US session. It was in fact another day of volatility in oil markets however with significant intraday high-to-low ranges for both WTI (7.97%) and Brent (7.11%). After both grades traded as high as +4% in the morning, WTI (-4.18%) and Brent (-3.12%) closed weaker, dropping to $54.11/bbl and $59.27 respectively – the latter closing below $60 for the first time since May 2009. Comments from the Saudi Arabia oil minister Al-Naimi did little to calm the oil market. Specifically the minister said that ‘it is difficult, if not impossible', that the kingdom or OPEC would carry out any action that may result in a reduction of its share in market and an increase of others. Although the minister did provide some hope for those hoping that the current drop in prices is more of a temporary thing, stating that ‘what we are facing now and what the world is facing is a temporary situation and will pass’. Credit markets strengthened further, CDX IG closed 4.6bps tighter (nearly 12bps in two days) whilst US HY energy names extended their two-day gains to rally 61bps in cash spread terms. Spreads have now tightened 96bps over the past two days to 780bps – back to last Thursdays levels. Treasuries also swung around, the yield on the 10y benchmark opened at 2.136%, traded to an intraday low of 2.109% and then weakened in the afternoon to close near its wides at 2.208% - 7bps wider on the day. With the market largely focused on further digesting the Fed statement and comments, as well as keeping up with the swings in oil, data yesterday was something of an afterthought although readings were largely unexciting. Jobless claims once again printed below 300k, decreasing by 6k to 289k and nudging the four-week average down to 298.75k. Elsewhere the flash PMI services reading came in weaker than expected at 53.6 (vs. 56.3 expected) and the December Philadelphia Fed business outlook dropped to 24.5 from 40.8 in November – although this still remains at the higher end of the historical range. The leading index series (+0.6% vs. +0.5% expected) was largely in line. Back to markets and earlier in the day Europe closed notably stronger. The Stoxx 600 finished +2.95% which marked the largest one day gain since November 2011. Energy stocks (+2.12%) benefited from the earlier day’s rally in oil although much of the focus was on the Swiss National Bank who announced that they are to introduce negative interest rates on deposits (- 0.25%) in an effort to curb demand for the Swiss Franc. The Franc weakened as much as 0.7% versus the Euro – only to then retrace the bulk of the losses and finish 0.26% weaker at 1.204 to the Euro. Over in Russia, the ruble closed relatively unchanged (+0.05%) at 61.622 although swung over the course of Putin’s annual conference in which the President appeared to shift the blame for Russia’s woes onto western nations. Putin did however appear to acknowledge a potential for oil prices to stay continually low, noting that ‘under the most negative external economic scenario, this situation can last two years’, and going on to say that ‘if the situation is very bad, we will have to change our plans, cut some things’. Russian equities closed firmer, the $- RTS closed +6.50% whilst 10y hard currency yields rallied 26bps to close at 6.845%. Following the results of the first round of the Presidential election, Greek assets continue to firm. The ASE closed +1.47% and short-end yields bounced further off their recent highs. The 3y notes closed 42bps tighter at 9.556% whilst 5y notes rallied 35bps to 8.956%. Elsewhere, Bunds finished weaker with the 10y yield climbing 2.4bps off Wednesday’s record low to close at 0.617%. Before we look at the day ahead, markets in Asia are following the US lead this morning with most major bourses trading in the green. The Nikkei (+2.16%), Hang Seng (+1.30%) and Kospi (+1.71%) are all trading firmer, although Chinese equities have bounced between gains and losses. The CSI 300 is currently unchanged and the Shanghai Comp +0.61%. The Bank of Japan, as largely expected kept its current pace of stimulus on hold at ¥80tn. It’s a quiet end to the week in the US this afternoon with just the December Kansas City Fed manufacturing index print due. Of more interest perhaps will be comments from the Fed’s Evans and Lacker who are due to speak this afternoon. Before this in Europe this morning we’ve got trade data due out for the Euro-area as well as PPI and consumer confidence prints due in Germany. In France we get manufacturing and business confidence and in Italy we receive industrial orders.    

28 октября 2014, 18:10

Sunday Bloody Sunday

Authors: Silvia Merler On Sunday, the ECB and EBA published the results of their comprehensive assessment of banks balance sheets, and Italian banks where the worst performers. The stress tests singled out 25 banks that would be falling short of the 5.5% minimum CET1 threshold, based on data as of end 2013. But once the measures already enacted in 2014 are taken into consideration, the number of banks failing the test is reduced to 13. Of these, 4 are Italian. Banca Monte dei Paschi di Siena, Banca Carige, Banca Popolare di Vicenza and Banca Popolare di Milano will need to raise respectively 2.1bn, 0.81bn, 0.22bn and 0.17bn, for a total of 3.31bn. It is the largest share of the total net (of capital raised in 2014) shortfall of 9.5bn identified from the test.13 banks are found to effectively fail the ECB stress tests. 4 of them are ItalianMarkets gave Italy a very rude awakening on Monday morning. Milan stock exchange closed on Monday at -2.4%. By the end of the trading session MPS had lost 21.5% and was valued at 0.79 euros, whereas Carige ended the trading day down by 17% at a value of just under 0.08 euros per share. But leaving the market reaction aside, the truth is that beyond capital some long-lived problems of the Italian banking sector have by now been known for a while but not addressed. In this respect, the comparison with a country like Spain - where the banking system has been subject to a deeper monitoring and restructuring during the financial assistance programme of 2012-13 - may yield striking insights. First, the Italian banking system is still keeping in place a strong liason dangereuse with the (huge) government debt. This is not at all a special feature of Italian banks (as Figure 1 shows) but with almost 80% of their sovereign long direct gross exposures concentrated on Italy, Italian banks are found in this supervisory exercise to be among the most exposed to the sovereign debt issued by the domestic sovereign. Actually, if one excludes the countries that have been or are under a EU/IMF macroeconomic adjustment programme, Italian banks are the most exposed in the Eurozone (Figure1 and Figure 2 left).Note: Long Direct Gross Exposure Sovereign debt accounts for 10% of Italian banks asset on average and the home bias in debt portfolio seems to have increased since the last EBA testMore interestingly, the exercise shows that this “home bias”, which is deeply at the root of the sovereign-banking vicious circle that characterised the euro crisis, has even worsened over the last three years. Domestic exposure has grown (rather than decreased) as a percentage of total sovereign exposure on the books of all those banks that were already tested in 2011 with the exception of UniCredit (Figure 2).Note: Long Direct Gross ExposureSovereign debt accounts by now for around 10% of total assets of Italian banks, on average. The carry trade on these holdings might have kept banks afloat over the last 3 years, but these gains are actually concealing deeper structural issues that Italian banks have - until now - never been forced to facein full. One such long-known problem of the Italian banking system is profitability, which is (and has been for quite a while now) very low. According to ECB data, average return on equity has been negative over the period 2010-2013 and the comparison with Spanish banks is especially striking. After the huge drop in return on equity during 2012, Spanish banks recovered, whereas Italian banks seemed to have never done it (Figure 2).After the huge drop in return on equity during 2012, Spanish banks recovered, whereas Italian banks seemed to have never done soDifferences between Italy and Spain are evident also in the reliance on Eurosystem liquidity and the pace of reimbursement, which until very recently has been significantly slower in Italy than in Spain (Figure 3 right). Italian banks have borrowed less - in absolute terms - from the ECB facilities, but have been sticking to the central bank liquidity for longer, accelerating reimbursements only in recent months. This may be explained by the fact that their alternative funding is relatively more expensive than it is for Spanish banks. Interest rates paid by Italian banks on retail (households’) deposits is in fact still significantly above those paid by their Spanish equivalents, not to mention German banks. More interestingly (and worryingly) deposit interest rates in Italy have only very recently started to drift downwards, contrary to Spain, where convergence has started earlier and moved faster.These few elements depicts a gloomy Italian banking system which has been spared - until now - from the deeper monitoring and restructuring that have been undergoing in Spain and other programme countries, but at the cost of finding itself stuck in a limbo where lack of capital (in some cases), low profitability (in general) and rising bad loans are hindering credit and therefore further harming the potential recovery.Even if the economic cycle were to improve and bad loans to subside, the low profitability will stick due to structurally high costs and inefficienciesAs pointed out, among others, by RBS’ Alberto Gallo, this is not a sustainable situation. Even if the economic cycle were to improve and bad loans to subside, the low profitability will stick due to structurally high costs and inefficiencies (such as Italy’s very high concentration of bank branches and length of the judicial process, for example). One possible answer to these issues could be consolidation, which has been important in Spain but basically absent in Italy. This is partly due to specific features of the Italian banking structure, which make such reform very difficult. In particular, as shown in figure 4, banks are closely bound together by equity cross holdings in which bank foundations play often a significant role. And bank foundations are often dominated by local politics (see for example this summary account of professional politicians presence in Italian banks’ foundation boards), which may hinder consolidation on the bases of various (not necessarily economic) interests. This suggests that a meaningful reform process in the Italian banking system can hardly go separate from a deep restructuring of this governance structure.Needed consolidation is made difficult by a corporate governance structure that is strongly tied with local politicsAll these problems are long known, but have not yet been addressed. In our (Italian) language, there exists a fascinatingly peculiar expression: La Bella Figura. While it is impossible to appropriately convey all the nuances of its meaning, it could be broadly translated with “nice appearance” and it fits well also to the attitude that has until now been kept about the Italian banking system’s need for reform. Hopefully the stress test results will act as a wake up call, forcing some to finally acknowledge the importance of  substance over form. Read more...

28 октября 2014, 18:10

Monday blues for Italian banks

Authors: Silvia Merler On Sunday, the ECB and EBA published the results of their comprehensive assessment of banks balance sheets, and Italian banks where the worst performers. The stress tests singled out 25 banks that would be falling short of the 5.5% minimum CET1 threshold, based on data as of end 2013. But once the measures already enacted in 2014 are taken into consideration, the number of banks failing the test is reduced to 13. Of these, 4 are Italian. Banca Monte dei Paschi di Siena, Banca Carige, Banca Popolare di Vicenza and Banca Popolare di Milano will need to raise respectively 2.1bn, 0.81bn, 0.22bn and 0.17bn, for a total of 3.31bn. It is the largest share of the total net (of capital raised in 2014) shortfall of 9.5bn identified from the test.13 banks are found to effectively fail the ECB stress tests. 4 of them are ItalianMarkets gave Italy a very rude awakening on Monday morning. Milan stock exchange closed on Monday at -2.4%. By the end of the trading session MPS had lost 21.5% and was valued at 0.79 euros, whereas Carige ended the trading day down by 17% at a value of just under 0.08 euros per share. But leaving the market reaction aside, the truth is that beyond capital some long-lived problems of the Italian banking sector have by now been known for a while but not addressed. In this respect, the comparison with a country like Spain - where the banking system has been subject to a deeper monitoring and restructuring during the financial assistance programme of 2012-13 - may yield striking insights. First, the Italian banking system is still keeping in place a strong liason dangereuse with the (huge) government debt. This is not at all a special feature of Italian banks (as Figure 1 shows) but with almost 80% of their sovereign long direct gross exposures concentrated on Italy, Italian banks are found in this supervisory exercise to be among the most exposed to the sovereign debt issued by the domestic sovereign. Actually, if one excludes the countries that have been or are under a EU/IMF macroeconomic adjustment programme, Italian banks are the most exposed in the Eurozone (Figure1 and Figure 2 left).Note: Long Direct Gross Exposure Sovereign debt accounts for 10% of Italian banks asset on average and the home bias in debt portfolio seems to have increased since the last EBA testMore interestingly, the exercise shows that this “home bias”, which is deeply at the root of the sovereign-banking vicious circle that characterised the euro crisis, has even worsened over the last three years. Domestic exposure has grown (rather than decreased) as a percentage of total sovereign exposure on the books of all those banks that were already tested in 2011 with the exception of UniCredit (Figure 2).Note: Long Direct Gross ExposureSovereign debt accounts by now for around 10% of total assets of Italian banks, on average. The carry trade on these holdings might have kept banks afloat over the last 3 years, but these gains are actually concealing deeper structural issues that Italian banks have - until now - never been forced to facein full. One such long-known problem of the Italian banking system is profitability, which is (and has been for quite a while now) very low. According to ECB data, average return on equity has been negative over the period 2010-2013 and the comparison with Spanish banks is especially striking. After the huge drop in return on equity during 2012, Spanish banks recovered, whereas Italian banks seemed to have never done it (Figure 2).After the huge drop in return on equity during 2012, Spanish banks recovered, whereas Italian banks seemed to have never done soDifferences between Italy and Spain are evident also in the reliance on Eurosystem liquidity and the pace of reimbursement, which until very recently has been significantly slower in Italy than in Spain (Figure 3 right). Italian banks have borrowed less - in absolute terms - from the ECB facilities, but have been sticking to the central bank liquidity for longer, accelerating reimbursements only in recent months. This may be explained by the fact that their alternative funding is relatively more expensive than it is for Spanish banks. Interest rates paid by Italian banks on retail (households’) deposits is in fact still significantly above those paid by their Spanish equivalents, not to mention German banks. More interestingly (and worryingly) deposit interest rates in Italy have only very recently started to drift downwards, contrary to Spain, where convergence has started earlier and moved faster.These few elements depicts a gloomy Italian banking system which has been spared - until now - from the deeper monitoring and restructuring that have been undergoing in Spain and other programme countries, but at the cost of finding itself stuck in a limbo where lack of capital (in some cases), low profitability (in general) and rising bad loans are hindering credit and therefore further harming the potential recovery.Even if the economic cycle were to improve and bad loans to subside, the low profitability will stick due to structurally high costs and inefficienciesAs pointed out, among others, by RBS’ Alberto Gallo, this is not a sustainable situation. Even if the economic cycle were to improve and bad loans to subside, the low profitability will stick due to structurally high costs and inefficiencies (such as Italy’s very high concentration of bank branches and length of the judicial process, for example). One possible answer to these issues could be consolidation, which has been important in Spain but basically absent in Italy. This is partly due to specific features of the Italian banking structure, which make such reform very difficult. In particular, as shown in figure 4, banks are closely bound together by equity cross holdings in which bank foundations play often a significant role. And bank foundations are often dominated by local politics (see for example this summary account of professional politicians presence in Italian banks’ foundation boards), which may hinder consolidation on the bases of various (not necessarily economic) interests. This suggests that a meaningful reform process in the Italian banking system can hardly go separate from a deep restructuring of this governance structure.Needed consolidation is made difficult by a corporate governance structure that is strongly tied with local politicsAll these problems are long known, but have not yet been addressed. In our (Italian) language, there exists a fascinatingly peculiar expression: La Bella Figura. While it is impossible to appropriately convey all the nuances of its meaning, it could be broadly translated with “nice appearance” and it fits well also to the attitude that has until now been kept about the Italian banking system’s need for reform. Hopefully the stress test results will act as a wake up call, forcing some to finally acknowledge the importance of  substance over form. Read more...

27 октября 2014, 19:45

Italy's banks: Looking sickly

UK Only Article:  standard article Fly Title:  Italy's banks Rubric:  The European Central Bank’s stress tests have hit Italy's banks hard Byline:  A.F. Location:  MILAN Main image:  20141101_wbp501_473.jpg ITALY was left feeling especially hard done by on October 26th following the results of the European Central Bank’s asset quality review. Of the 25 institutions that failed its stress tests, nine were Italian, including the worst performer, Monte dei Paschi di Siena (MPS). Italy's central bankers immediately said that they thought the results confirmed the overall solidity of the Italian banking system. The review was based on out-of-date data from the end of 2013, they pointed out. Once capital injections in early 2014 worth €11 billion ($13.9 billion) were taken into account, only two still faced shortfalls: MPS, Italy’s third-largest bank, and the much smaller Banca Carige. Markets, however, disagreed with ...

27 октября 2014, 12:32

Italy's oldest bank under pressure after failing stress test -- business live

Rolling business and financial news, as 14 European banks are told to raise 25bn in new capital, including Italys Monte dei Paschi. 8.32am GMTShares in a second Italian bank, Carige Bank, have also slumped this morning, down 17%.Carige, which is the largest bank in Liguria, is expected to raise at least 500m through a rights issue after European authorities found an 810m capital shortfall in its books.Trading in Banca Carige suspended after shares opened down 17% after EBA #stresstests failed the Italian bank 8.28am GMTAustrian lender Raiffeisens shares have also surged, by 7.3%, after passing the stress tests. 8.24am GMTAnother sign of relief -- shares in Austrian bank Erste Group have jumped by 7.5%. 8.23am GMT 8.21am GMTItalys Monte Dei Paschis shares are being hammered in early trading in Milan after it became the most high-profile casualty of the bank tests.Trading in the worlds oldest bank has just been temporarily suspended after they slumped by 15% in a rush of early selling.BMPS -15.00% (HALTED)raising the question of once again how much more money must be pumped into this bottomless pit of a bank that has had to raise extra capital each of the last three years. 8.11am GMTMost bank shares are rallying this morning, pushing the Eurostoxx Banking Index up by 1.7%.It tracks all the main banks across Europe, 8.10am GMTShares in Germanys Commerzbank have surged by almost 9%, over in Frankfurt.Commerzbank opens up 9pct after stress test pass. 8.05am GMTThe FTSE 100 has rallied 50 points at the start of trading, up 0.79% at 6439.Mike van Dulken, head of research at Accendo Markets, says:sentiment is being buoyed by the European bank Stress test results. 7.58am GMTGood morning, and welcome to our rolling coverage of the financial markets, the world economy, the eurozone and business.Theres mild relief in Europe this morning after yesterdays stress tests of the regions banks showed up fewer problems than feared.Eurostoxx50 futures up 1% now after ECB stress testsA slightly 'Gung-ho!' stance to earning season on both sides of the pond may trigger positive opening for Europe. FTSE +20, DAX +30, CAC +19The bank was one of nine Italian banks deemed to have failed the stress tests carried out by the European Banking Authority, which published its findings on Sunday and concluded 24 banks out of 123 it had tested across the European Union needed more capital.Monte dei Paschi di Siena, which is already in the midst of a restructuing exercise, said it had been penalised by the methodology used by the regulators and appointed UBS and Citigroup to advise it of its options and explore all strategic alternatives for the bank.Banca Monte Paschi, the main casualty of the ECB stress tests, called to open down 15% Continue reading...    

26 октября 2014, 23:03

Девяти итальянским банкам не хватает капитала

Более половины из 15 протестированных банков Италии провалили стресс-тесты, свидетельствуют материалы Европейского центробанка.Среди них один из старейших банков Италии Banca Monte Dei Paschi. Дефицит капитала у него составляет 4,25 млрд евро в 2014 году, и лишь частично - на 2,14 млрд евро - он может быть покрыт лишь за счет права банка на привлечение капитала.Дефицит капитала итальянских банков составляет в общей сложности 9,41 млрд евро на конец 2013 года и 3,31 млрд евро после пополнения его в нынешнем году. Провалили стресс-тесты итальянские Banca Carige (дефицит капитала 1,83 млрд евро), Veneto Banca (0,71 млрд евро), Banco Popolare (0,69 млрд евро), Banca Popolare di Milano (0,68 млрд евро), Banca Popolare di Vicenza (0,68 млрд евро), Credito Valtellinese (0,38 млрд евро), Banca Popolare di Sondrio (0,32 млрд евро) и Banca Popolare dell'Emilia Romagna (0,13 млрд евро). ЕЦБ опубликовал в воскресенье результаты годовых стресс-тестов 130 банков еврозоны. По данным регулятора, в 25 крупнейших банках еврозоны в результате проверки обнаружился недостаток капитала. В течение двух недель им нужно представить планы по докапитализации. Для покрытия дефицита капитала банкам будет дано до девяти месяцев.

23 октября 2014, 11:50

Monte Paschi and Carige set to face capital gap in ECB tests: Bloomberg

Italian banks Monte dei Paschi di Siena (BMPS.MI) and Banca Carige (CRGI.MI) are likely to need additional capital to plug shortfalls found by the European Central Bank (ECB) in region-wide bank stress tests, according to a media report. The lenders face capital gaps under the most severe of the ECB's stress-test scenarios and are unlikely to have raised enough cash this year to fill the hole, Bloomberg reported, citing a source who asked not to be identified. Monte dei Paschi di Siena and Banca Carige declined to comment. The ECB is carrying out the checks of how the biggest euro zone banks have valued their assets, and whether they have enough capital to weather another economic crash, before taking over as their supervisor.

22 июля 2014, 15:03

Stocks Desperate To Put Ukraine In Rearview Mirror But More Russian Sanctions Loom

Following the overnight ramp in various JPY crosses (dragging equity futures higher, and the Nikkei up 0.8%) it is as if the market is desperate to put all of last week's geopolitical events in the rearview mirror, and while yesterday there were no economic events of note, today's CPI and existing home prints should provide at least some distraction from the relentless barrage of one-line updates on Ukraine and Gaza. Still, that is precisely where the biggest risk remains, with an emphasis on the possibility of more Russian sanctions, this time by Europe. Today will likely see more headlines on the situation as EU foreign ministers meet as well as the Russian Security Council. Watch out for headlines from all angles. Perhaps the most market-friendly outcome is that EU leaders talk very tough but do not agree on intensifying sanctions against Russia. Reuters thinks that despite all the tough talk, the EU is unlikely to punish Russia beyond the speeding up of the imposition of already agreed individual sanctions. A summit of EU leaders on July 16, the day before the airliner was downed, agreed the EU would punish Russian companies that help to destabilize Ukraine. According to Reuters, diplomats said Tuesday's meeting in Brussels was still not expected to go much further than agreeing on the people and possibly companies to be hit with asset freezes under the framework agreed last week. Previously, they had only said they would decide on the list by the end of July. Citing unnamed diplomats, Reuters said moving towards more sweeping economic sanctions could only be decided by heads of government. The next scheduled summit of EU leaders is on August 30, though EU members could call for another emergency meeting. An unknown element today will be the Dutch, who have previously advocated caution in imposing sanctions against Russia, but are likely going to be a large swing factor today. The Netherlands previous caution with respect to Russia was perhaps to due to its significant economic ties, but they will be forced into action given the loss of life they have experienced in the MH17 tragedy. In terms of the Russian Security Council meeting, not a lot has been reported on what to expect from this. Putin will chair the meeting to discuss "issues connected with safeguarding the sovereignty and territorial integrity of the Russian Federation," the Kremlin said in a statement on Monday. Turning to Asia, we’re seeing a tentative but positive tone to trading ahead of today's events which include the EU foreign ministers meeting, US CPI and a number of important corporate earnings. There are solid gains being recorded across the Hang Seng (+1.15%), HSCEI (+1.5%) and Japan has return from holidays with a 0.8% gain in the Nikkei. There is an interesting article on Bloomberg today, suggesting that there is a rift within the Bank of Japan’s board with respect to the ability of the central bank to meet its inflation target. According to the article, a majority of the nine members disagree with Kuroda’s view that the BoJ’s QQE program is sufficient to get 2% inflation, and most conclude it cannot be done without government steps to raise Japan’s growth potential, citing unnamed sources. USDJPY is broadly unchanged today. Elsewhere Indonesia remains a focus with official election results to be announced later today. IDR continues to rally and is a further 0.3% stronger today while Indonesian USD sovereign paper is trading stronger.  MSCI Asia Pacific up 0.6% to 147.8; Nikkei 225 up 0.8%, Hang Seng up 1.7%, Kospi up 0.5%, Shanghai Composite up 1%, ASX up 0.1%, Sensex up 0.9%. Equity markets in Europe shrugged off the lower close on Wall Street as the strong performance from Asia-Pacific equities prompted a gap higher at the open, with the energy and materials sectors outperforming on a recent rebound in commodities prices. Earnings in Europe have been received favourably, with ARM Holdings (ARM LN), IG Group (IGG LN) and Actelion (ATLN VX) outweighing a poor update from Credit Suisse (CSGN VX), who have been forced to close their commodities trading unit in order to offset losses prompted by US tax fines. 17 out of 19 Stoxx 600 sectors rise; basic resources, oil & gas outperform; retail, media underperform. 73.2% of Stoxx 600 members gain, 24.8% decline. Eurostoxx 50 +0.5%, FTSE 100 +0.6%, CAC 40 +0.3%, DAX +0.5%, IBEX +0.5%, FTSEMIB +0.6%, SMI +0.2% Today’s calendar looks more interesting than that of the last 24 hours. The EU foreign ministers’ meeting starts at 8:30am London time this morning. Ahead of that we have some European corporate earnings with Credit Suisse (which were a bigger miss than expected) and Norsk Hydro’s results. Today’s US earnings calendar today features results from a number of megacaps including the likes of McDonalds, Coca-cola Co, Verizon (before the open) and Apple and Microsoft (after-market). A major focus today is on US CPI. Consensus is +2.1% YoY and +2.0% in headline and core respectively. There is also existing home sales today. Both pieces of data have the capacity to move treasury markets. Hungary’s central bank also holds its rate meeting today. Market Wrap S&P 500 futures up 0.1% to 1967.7 Stoxx 600 up 0.5% to 339.7 US 10Yr yield up 1bps to 2.48% German 10Yr yield up 1bps to 1.16% MSCI Asia Pacific up 0.6% to 147.8 Gold spot down 0.4% to $1307.5/oz Bulletin Headline Summary from RanSquawk and Bloomberg EUR/USD approached YTD lows at 1.3477 this morning, after July’s support at 1.3491 was broken. Real money supply and strong demand for USD/CHF lifted the USD-index to six week highs as thin trade exacerbated price action All eyes on Brussels as the EU foreign affairs presser is expected to unveil further sanctions on the Russian arms and dual-use industrial goods sector US earnings calendar thick and fast today, with Apple, Microsoft, Verizon, Coca-Cola, McDonalds, Lockheed Martin and Altria all due today Treasuries decline, led by 7Y and 10Y notes as global stocks rally; 5/30 curve touches new 5-year tight in overnight trading. EU governments labored to identify more Russian businesspeople and companies to sanction and pressed Putin to speed a probe into the downing of Malaysian Air flight MH17 or face isolation 54% of jobs in the EU are at risk of advances in computerization, according to a study by economist Jeremy Bowles published by Bruegel, a Brussels-based research organization. U.S. Secretary of State Kerry put the onus on the Gaza Strip’s Hamas rulers to halt two weeks of fighting with Israel that has killed more than 600 people, the overwhelming majority of them Palestinians Credit Suisse said it will exit commodities trading as a $2.6b fine to settle a U.S. tax investigation pushed the Swiss bank to its biggest quarterly loss since 2008 Texas Governor Rick Perry said he will send as many as 1,000 National Guard troops to help secure the border with Mexico; about 57,000 unaccompanied minors have arrived at the border since October, double the total from fiscal 2013 U.S. Senator Ron Johnson’s lawsuit challenging an Obamacare provision subsidizing health insurance for members of Congress and their aides was dismissed by a judge who found the lawmaker failed to show he’d been harmed Sovereign yields mostly higher. Euro Stoxx Banks +1.54%. Asian and European stocks equities gain, U.S. stock futures rise. WTI crude and copper higher, gold declines US Event Calendar 8:30am: CPI m/m, June, est. 0.3% (prior 0.4%) CPI Ex Food and Energy m/m, June, est. 0.2% (prior 0.3%) CPI y/y, June, est. 2.1% (prior 2.1%) CPI Ex Food and Energy y/y, June, est. 2% (prior 2%) CPI Core Index SA, June, est. 238.227 (prior 237.776) CPI Index NSA, June, est. 238.535 (prior 237.9) 9:00am: FHFA House Price Index m/m, May, est. 0.2% (prior 0.0%) 10:00am: Richmond Fed Manufacturing Index, July, est. 5 (prior 3) 10:00am: Existing Home Sales, June, est. 4.99m (prior 4.89m) Existing Home Sales m/m, June, est. 2% (prior 4.9%) Supply ASIAN HEADLINES The Nikkei 225 (+0.84%) managed to pull back the majority of Friday’s losses after yesterday’s market closure, with Chinese and Hong Kong markets (Shanghai Comp +1.02%, Hang Seng +1.69%) benefiting from the PBoC choosing not to drain liquidity overnight. FIXED INCOME Fixed income markets trade softer, with strong equity markets weighing, as Bund futures continue to retreat from contract highs at 148.49 printed on Friday. Furthermore, relatively poorly received (bid/cover 1.84 vs. prev. 2.04) Gilt supply (circa 30K Gilt futures contracts) has pressed prices lower. Italian and Spanish 10yr yield spreads trade slightly tighter, as markets take a favourable view on consolidation in the Italian banking sector, after Banca Carige unveiled plans to offload assets. Barclays Prelim Pan Euro Agg Month-end Extension +0.11y (Prev. month 0.09y, 12m ave. 0.08y), Prelim Treasury Month-end Extension +0.08y (Prev. month 0.08y, 12m ave. 0.09y) EQUITIES Equity markets in Europe shrugged off the lower close on Wall Street as the strong performance from Asia-Pacific equities prompted a gap higher at the open, with the energy and materials sectors outperforming on a recent rebound in commodities prices. Earnings in Europe have been received favourably, with ARM Holdings (ARM LN), IG Group (IGG LN) and Actelion (ATLN VX) outweighing a poor update from Credit Suisse (CSGN VX), who have been forced to close their commodities trading unit in order to offset losses prompted by US tax fines. FX EUR/USD tripped stops on the way through 1.35 to hit the lowest level since February at 1.3481, with real money supply weighing on the currency as USD/CHF buying lifted the USD-index by almost 0.2%. Traders now eye a base in EUR/USD at the yearly lows of 1.3477, with analysts at IFR noting talk of option barriers at 1.3475 and 1.3450. COMMODITIES Oil trades slightly higher ahead of the NYMEX open as continued instability in the Middle-east and eastern Europe keeps a floor under prices. Nonetheless, expectations of a resumption of shipping from Libya’s Brega oil port could keep a cap on Brent price action. Precious metals markets have fallen alongside fixed income, as EU sanctions on Russia are seen sparing the resources and commodities sectors. Near-term focus shifts to the API crude oil inventories due after market and the August WTI option expiries due at the pit close * * * DB's Jim Reid Concludes the Overnight Summary Ever since news broke that Thursday's tragic plane crash may have been caused by a missile fired by pro-Russia separatists I've felt that this story was an incredibly dangerous one for global stability and also the global economy. However most of these major geopolitical events do eventually pass even if concerns heighten so maybe the market is correct to be relatively sanguine. Will this be another such occasion? In my mind the market is not assigning a high enough probability of this situation escalating to uncomfortable levels but the reality is the most likely outcome is that it doesn't. Therein lies the dilemma of investing. Do you position for the most likely outcome along with the crowd or do you stand more alone and position for the lower probability but higher impact outcome. Over a career you'll probably get higher overall returns with the latter strategy but you may have more uncomfortable moments explaining and surviving frequent small under-performance. Also trading liquidity is shallow enough at the moment, especially in assets like cash credit, that it doesn't necessary pay to try to capture short-term moves. So we're not changing our recommendations at the moment but it’s fair to say we feel uneasy at developments over the past few days. Indeed the newsflow continues in this story with no signs of an imminent solution or escalation yet. However with Russia seemingly not keen on accepting the West's version of events, President Obama putting some pressure on them yesterday afternoon and EU foreign ministers meeting today there is a real possibility of a ratcheting up of sanctions on Russia later this week – including possibly more hard-hitting “level 3” sanctions. The US may find it economically easier to deal with this outcome than Europe though. On a client call yesterday (call replay details included at the end), DB’s Yaroslav Lissovolik, DB’s Head of Research (Russia) discussed Putin’s likely next actions and commented that opinion polls in Russia are suggesting war fatigue, with two thirds against continued support for the pro-Russian separatists. Given this there is a chance that Putin may wish to de-escalate the situation if possible, although Yaroslav noted that Putin may decide to escalate the situation further in the near-term in order to de-escalate at a later point. Also on the call was Frank Kelly, DB’s geopolitical go-to man, who gave his view on the US position. After watching Obama’s press conference yesterday he sees the White House’s position as giving Putin the opportunity to save face and help de-escalate the situation before the stepping up of sanctions. For example Frank thinks we need to see Putin call for a ceasefire and take actions to support it and/or help secure the MH17 crash site. If these actions aren’t forthcoming he believes the US will announce further sanctions on Russia. As we mentioned earlier, today will likely see more headlines on the situation as EU foreign ministers meet as well as the Russian Security Council. So watch out for headlines from all angles. Perhaps the most market-friendly outcome is that EU leaders talk very tough but do not agree on intensifying sanctions against Russia. Reuters thinks that despite all the tough talk, the EU is unlikely to punish Russia beyond the speeding up of the imposition of already agreed individual sanctions. A summit of EU leaders on July 16, the day before the airliner was downed, agreed the EU would punish Russian companies that help to destabilize Ukraine. According to Reuters, diplomats said Tuesday's meeting in Brussels was still not expected to go much further than agreeing on the people and possibly companies to be hit with asset freezes under the framework agreed last week. Previously, they had only said they would decide on the list by the end of July. Citing unnamed diplomats, Reuters said moving towards more sweeping economic sanctions could only be decided by heads of government. The next scheduled summit of EU leaders is on August 30, though EU members could call for another emergency meeting. An unknown element today will be the Dutch, who have previously advocated caution in imposing sanctions against Russia, but are likely going to be a large swing factor today. The Netherland’s previous caution with respect to Russia was perhaps to due to its significant economic ties, but they will be forced into action given the loss of life they have experienced in the MH17 tragedy. In terms of the Russian Security Council meeting, not a lot has been reported on what to expect from this. Putin will chair the meeting to discuss "issues connected with safeguarding the sovereignty and territorial integrity of the Russian Federation," the Kremlin said in a statement on Monday. So we may get a short term relief rally if the EU foreign ministers meeting ends today with no concrete steps towards further sanctions – but this doesn’t take away from the fact that we still face a potentially dangerous threat to global stability. Following yesterday’s speech from Obama, we saw a small relief rally as the US president said he still preferred a diplomatic resolution for Ukraine and did not announce any level 3 sanctions. Some also highlighted that Obama chose to discuss the situation in the Middle East first, before the Ukraine/Russia crisis, and was perhaps trying to play the situation down a touch. Either way, US equities bottomed just before Obama’s comments, and from there the S&P500 recovered around 0.33% to close at -0.23% on the day. Rates closed marginally stronger (10yr yield at 2.47%, -1.5bp) although yields also bottomed shortly before Obama spoke and traded upwards towards the end of the NY session. However, this didn’t stop the US30yr yield (3.26%, -3bp) closing at its lowest level in more than a year. Turning to Asia, we’re seeing a tentative but positive tone to trading ahead of today's events which include the EU foreign ministers meeting, US CPI and a number of important corporate earnings. There are solid gains being recorded across the Hang Seng (+1.15%), HSCEI (+1.5%) and Japan has return from holidays with a 0.96% gain in the Nikkei. There is an interesting article on Bloomberg today, suggesting that there is a rift within the Bank of Japan’s board with respect to the ability of the central bank to meet its inflation target. According to the article, a majority of the nine members disagree with Kuroda’s view that the BoJ’s QQE program is sufficient to get 2% inflation, and most conclude it cannot be done without government steps to raise Japan’s growth potential, citing unnamed sources. USDJPY is broadly unchanged today. Elsewhere Indonesia remains a focus with official election results to be announced later today. IDR continues to rally and is a further 0.3% stronger today while Indonesian USD sovereign paper is trading stronger. As we noted in last Friday’s EMR, one corner of the fixed income market worth watching closely is US high yield. The Fedchair has warned repeatedly that she sees worrying signs in the HY market and last week’s flow data from Lipper suggested that perhaps US retail investors are beginning to take heed of those warnings. According to Lipper, retail-cash outflows from HY funds in the week ended July 16 were the single largest one-week redemption in 11 months. The latest EPFR data also confirmed the same, with their data showing that retail investors’ redemptions from US HY funds hit 57 week highs for the week ending July 16th. ETFs were the major contributing factor to that week’s outflows and yesterday we saw the major US high yield ETFs resume their downward moves in price. The iShares iBoxx High Yield ETF closed 0.17% lower (its 9th down day in the last 12 sessions). In addition, the ETF’s 10-day average premium to NAV is now in negative territory (i.e. trading at a discount to NAV), which last occurred last summer. So certainly some evidence of retail selling of the HY asset class. Something to watch over the next few weeks. On a separate but somewhat related theme, the US Securities and Exchange Commission is expected to vote tomorrow on a plan that may require some money market funds to float the value of their fund’s shares, rather than sticking to the norm of a fixed $1 per share. If the five-member commission on July 23 votes for the plan, institutional money market funds would float the value of their fund’s share price, thus creating a potentially sensitive situation where these perceived low-risk funds could “break the buck”, i.e. trade lower than $1/share. The SEC is also considering the introduction of withdrawal restrictions and exit fees on these funds. Similar to the HY situation described above, in a world accustomed to central bank liquidity, it’s difficult to understand how markets will behave if flows go the other way and perhaps the SEC’s proposals to introduce “gates” on redemptions is a reflection of that unknown. Today’s calendar looks more interesting than that of the last 24 hours. The EU foreign ministers’ meeting starts at 8:30am London time this morning. Ahead of that we have some European corporate earnings with Credit Suisse and Norsk Hydro’s results. CS is expected to report a negative headline earnings number following recent settlements with US regulators, but as is usually the case of late; markets will be more interested in the underlying earnings. Today’s US earnings calendar today features results from a number of megacaps including the likes of McDonalds, Coca-cola Co, Verizon (before the open) and Apple and Microsoft (after-market). A major focus today is on US CPI. Consensus is +2.1% YoY and +2.0% in headline and core respectively. There is also existing home sales today. Both pieces of data have the capacity to move treasury markets. Hungary’s central bank also holds its rate meeting today.    

01 февраля 2014, 20:18

Italy Unveils Most Bizarre Bank Bailout Yet

The biggest problem facing European banks - one we highlighted most recently yesterday when we showed the latest 20% surge in Spanish Banco Popular Non-Performing Loans to a fresh record - and one we have been covering since 2010, which as of 2012 amounted to some $4.5 trillion that needs to be "remedied" - is the staggering amount of bad debt on the books of Europe's numerous banks, the bulk of which especially in the periphery are cojoined with their sovereign host in an unbreakable bond which despite Europe's theatrical attempts to sever, only keeps getting stronger. But while, so far at least, the conventional "under the table" can-kicking European bailout mechanism involved a process whereby banks would issue bonds with a sovereign "guarantee", then promptly repo them to the ECB at virtually no haircut as the Goldman alum-led central bank did everything in its power to keep injecting liquidity in an insolvent continental banking system (while everyone pretended to not realize what was going on as the "A-ha" moment of public epiphany would mean the emperor would suddenly have no clothes and the jig was up), this week things changed. On Wednesday, Italy's government voted final approval to a decree hiking the value of Bank of Italy's share capital from €156K to €7.5 billion - something that had not been done since the 1930s. Of course, politicians determining the fictitious value of a central bank is one thing, as idiotic as it may be. However, what is truly preposterous is the covert bailout that accompanies the decree: a key part of the decision was setting a 3% ceiling on the stake that the bank's shareholders can own in the central bank. This means, as Reuters reports, that Intessa and UniCredit, currently the central bank's largest shareholders with stakes of 42 percent and 22 percent respectively - not to mention two of Italy's most NPL-heavy banks - will have to sell the bulk of their central bank "equity" stakes. And who will they sell them to? Why the central bank itself, and in return they will pocket up to €3.5 billion ($4.7 billion) from the sale of their central bank holdings. Said otherwise, Italy took not only bizarro accounting, but also monetary financing of insolvent banks by the monetary authority, and thus Italy's taxpayers, to the truly next level. Some more details on this supremely grotesque, and certainly not last, bailout from Reuters: The decree says the banks have three years to comply with the new rules.   Should Intesa Sanpaolo sell a 39 percent stake, it could cash in up to 2.3 billion euros before tax according to analysts' calculations based on the new share capital of the Bank of Italy.   UniCredit could pocket a gross capital gain of around 1.15 billion euros from the disposal of its 19 percent stake in the central bank.   The only other lender with a stake in the central bank exceeding 3 percent is Carige which stands to reap a capital gain of 73 million euros if it sold part of its holding to comply with the decree. And the cherry on top, confirming that Basel III is the biggest regulatory supervision joke conceived in Basel whose only purpose is to perpetuate a system of insolvent banks no matter the taxpayer cost, is that the capital gains from the sale would be used to boost the banks' core capital. For those asking - yes: Italy's central bank just made sure Intessa and UniCredit pass Europe's stress test with flying color courtesy of a direct $4.7 billion deposit. Sadly, this most brazen bailout will only benefit the abovementioned two banks:  "The ownership limit will benefit only Intesa Sanpaolo and UniCredit," said Fabrizio Bernardi, analyst at Fidentiis Equities. "It will not help, however, Monte dei Paschi di Siena and Banca Carige, which are desperate for capital," he added. Monte dei Paschi has to raise 3 billion euros later this year to pay back state aid, while Carige needs to boost its capital by 800 million euros. That's ok, we are sure the MIT diaspora of brilliant bankers who rule the world (literally) will come up with some another ingenious plan to mask the epic insolvency of Monte Paschi in the 11th hour, kicking the can for another several months, until the next leg lower in the European depression forces Europe's banks to get yet another bailout, and so on, until one day there are no more people left to fool. Perhaps the piece de resistance is that not only is the central bank bailing out insolvent banks, but it is indirectly also funding the sovereign: the new law will also help public finances thanks to the taxation of the capital gain the banks will register. Simply remarkable. And it would have been even more unbelievable had nobody in Italy's parliament figured out this was simply yet another taxpayer funded gift to Italy's banks. Somebody, however, did. Guardian reports that late on Wednesday, MPs of Beppe Grillo's M5S "stormed the government benches, put on symbolic gags and kept up a barrage of whistling after the speaker, Laura Boldrini, cut short the debate and ordered a vote on a complicated and intensely controversial measure to square Italy's public accounts. One of Grillo's followers said an MP from the governing majority had slapped her during the disorder. Opposition MPs claim that the measure would hand more than €7bn (£5.8bn) of taxpayers' money to the banks." Of course, what better way to fast-track yet another taxpayer bailout than to cut any debate short. And this being Italy, where the phrase "political circus" is redundant, things just went uphill from here: Members of the far-right opposition Brothers of Italy party showered chocolate coins on the government's representatives in the chamber and unfurled an Italian flag. After the vote was taken, Boldrini's party colleagues in the radical Left Ecology and Freedom (SEL) party broke into a chorus of the old partisan song Bella Ciao, prompting the M5S to respond with a rendition of the national anthem.     It is the first time since the foundation of the Italian republic after the second world war that a speaker has used the power to cut short a debate in this way. If she had not intervened, the decree at the centre of the dispute would have lapsed at midnight and Italian homeowners would have been landed with a bill for €2.2bn.   Enrico Letta's left-right coalition government won the vote by 236 to 209.   The decree was the latest stage in the government's tortuous efforts to fulfil an election pledge by Silvio Berlusconi to scrap an unpopular tax on first homes – and to do so without increasing Italy's already vast, €2tn public debt. Part of the cost is being passed to banks.    But the decree included provisions for an increase in the capital of Italy's central bank – a move that will swell the balance sheets of the commercial banks that are shareholders in the Bank of Italy.   Since the central bank is to use its statutory reserves for the increase, the M5S argued that it amounted to a gift of more than €7bn to the banks. And they were right. But that's ok - at least everyone get's to pretend for a few months longer that the system, which now needs ever more creative bailouts, is solvent.        

Выбор редакции
17 июля 2013, 00:10

Deals of the day -- mergers and acquisitions

(Updates Commerzbank; adds Orange SA, Onyx Pharma, Banca Carige)

26 февраля 2013, 17:21

Биржевой регулятор Италии запретил короткие продажи акций банка Intesa Sanpaolo

Национальная комиссия Италии по компаниям и бирже (Consob) запретила короткие продажи акций банковского гиганта Intesa Sanpaolo SpA до конца торгов среды из-за падения их стоимости более чем на 10%, сообщается в релизе регулятора. Кроме того, Consob запретил короткие продажи ценных бумаг банка Banca Carige до конца торгов среды из-за их удешевления на 9,22%. Ценные бумаги телекоммуникационной компании Telecom Italia пока продолжают торговаться, несмотря на снижение котировок на 6% до 0,55 евро, что является минимальной отметкой с августа 1997 года.