[edmc id=1325][/edmc] BSIC MARKET RECAP 22/02/2014 U.S. Stocks in the U.S. edged lower on Friday after quite a good week data wise: producer and consumer price index coming in as forecasted but better than expected on a monthly basis, markit’s manufacturing PMI scoring the highest variation in nearly four years. Read more…
Finmeccanica Market Cap (as of 11/10/13): €3.23bn Fondo Strategico Italiano (FSI) Market Cap: N/A Italian defence and industrial conglomerate Finmeccanica has agreed to sell its 55% stake in Ansaldo Energia, a maker of thermoelectric turbines, to Fondo Strategico Italiano (FSI), an arm of state-owned lender Cassa Depositi e Prestiti Read more…
The main rationale for the trade is a possible positive surprise of the European economy by the end of the year. The periphery has performed well and the recent resolution of the Berlusconi’s issue has reduced the political risk of the area. Moreover, the economic performances outline the beginning of Read more…
Telefonica (Market Capitalization as of 27/09: €52.5bn) Telecom Italia (Market Capitalization as of 27/09: €10.6bn) Recent news regarding Telefonica’s interest in Telecom Italia (“TI”) came to no surprise. The deal fits into the recent revival of dealmaking within the TMT sector and culminates months of speculation surrounding Telecom Italia. Read more…
On March 15th the merger was approved by the boards of the two companies, based on an exchange ratio of 1 newly issued ordinary share in Atlantia for 9 ordinary shares in Gemina. Atlantia shares seemed to be quite overvalued (8,9x the adjusted EBITDA; 7,5x for Gemina), but since March Read more…
Gold’s fall coupled with worrying macroeconomic data ignited a risk-off sentiment this week, turning investors far more pessimistic. If we add the UK downgrade, usual May sell-in and the weak momentum across markets of last week, we can imagine a bearish scenario for the coming days. In particular, we believe Read more…
The EU financial transaction tax (EU FTT, aka the “Tobin Tax”) The tax that divides Europe. “Any US or Asian institutions trading securities issued in France, Germany, Italy or Spain would also be taxed”. Aims: Raise new revenues for the EU, thus plugging gaps in national budget deficitsand Read more…
Trade idea: short Mediolanum In the next few weeks Italian financials will be under stress in our opinion. Uncertainty is likely to keep ruling the markets for political reasons and macroeconomic fundamentals are still concerning as shown by recent releases of February PMI index (45.8, -2 month on month) or Read more…
In this continuation from the previous newsletter we enter more in depth into the merits of the Monti Bonds as well as explaining the infamous three derivatives contract recently called into question (Alexandria, Santorini and Nota Italia). Monti Bonds Although it could be erroneously believed that Monti Bonds have Read more…
BMPS mkt cap (as of 15/02/13): €2.8bn Banca Monte dei Paschi di Siena, the world’s oldest bank (founded in 1472) and Italy’s third biggest lender with €224bn assets, has been at the centre of attention in recent weeks following disclosure that the bank suffered a €730 million loss related to Read more…