failed attempts to rescue the German engineering company Babcock Borsig, bringing the fifth event of the insolvency in Germany for high profile companies. The creditor banks have been burned in the past when they tried to save the construction company Philipp Holzmann, did not want to risk again, given the current economic conditions.
The Bank HSBC business has raised its recommendation on the sector of oil and gas in Europe, from Neutral to Overweight. The reasons for the upgrade to be found in the reasonable assessment of the oil groups, in the soundness and transparency of profits, the power budgets despite weak demand. Estimates earnings per share were raised an average of 5% for 2002, but lowered by the same percentage for 2003.
A rebound of great consequence has been the real star of today at the Milan and other world markets, emerging from one week, the last much to forget. The NASDAQ closed then an increase of 3.14%. Protagonists of the session were Finmeccanica and STM, but the rise has affected almost all the titles in a more or less high. Big dusting also Eni, Enel, the phones in the galaxy of Marco Tronchetti Provera, the Government’s asset management and some banks such as Unicredito and IntesaBci. Nine were less insurers and securities of the luxury, like Tod’s and Bulgari, which have found a bit ‘of serenity. There was some red mark as Italcementi and Fondiaria while Benetton, which is weighing on the imminent release of a bond of 300 million, has recovered plus sign on the finish.
The research department of Credit Suisse First Boston reiterates its opinion on the title of neutral oil French Total Fina Elf. Also confirmed the target price of 175 euros. Today the stocks traded slightly upward +0.36% passing from hand to 169.10 euros.
New fears of attacks and the negative opinion expressed by Merrill Lynch on the U.S. technology sector pushed Wall Street to the bottom but they are also weighing on the opening of the main European stock exchanges. Piazza Affari meanwhile, opened with a slight fall of 0.15% due to a false start of Pirelli, Tim, Finmeccanica and Mediolanum. Still pressure on banks such as Banca di Roma, Monte dei Paschi Eni.In but also positive, however, Alliance, Fiat and UniCredito.
Gust reviews Sanpaolo-Imi. The quarterly certainly not brilliant led some analysts to revise downward their judgments. After the downgrade of Morgan Stanley, Credit Lyonnais gave a rating “reduce” from “hold” with a price target to 12.4 euros. “We have revised downward the assessment because we fear a worsening of profitability for the whole of 2002,” the statement said. Centrosim, however, confirmed the recommendation to “outperform.” Positive for Fideuram Bank after completion of the acquisition of SanPaoloInvest. Sanpaolo-Imi yields 3.9% to 11.80 euros.
Lehman Brothers took a buy on the title Unicredito with a target price to 5.4 euros, against a previous 4.8 euros, which still reflects the caution of the banking business in the judge ’s impact of the reorganization taking place in the Institute of square Cordusio. Unicredito is still the preferred title of Lehman in the Italian banking landscape. Unchanged net profit estimates for the coming years. According to Lehman, net income is estimated at 1.6019 billion euros for 2002, 2.2103 billion for 2003 and 2.666 billion for 2004.
Start of the week slightly negative for the main European stock exchanges that seem to breathe a bit ‘breath after the race last eighth. Piazza Affari so open with a slight fall of 0.15% due to a false start of Unicredito, Mediaset, Mediolanum and Pirelli. Resist instead Bipop, Saipem and Eni, which benefits from the likely cut in oil production by 1.5 million barrels.
The week starts with the right way for the bank stock of the Milan stock exchange: a guide advanced Unicredito, which marks an improvement of 2.15% to € 4.18 euros. In good also rising Bnl (+1.09%), Banca di Roma (+1.51%), MPS (+1.93%), IntesaBci (+1.36%), Rolo (+1.71%) and Sao Paulo (+1.02%).
Clear sky horizon of Carrefour, one of the leading supermarkets in Europe, who received an upgrade by Credit Suisse First Boston. Analysts have raised their opinion to be retained to buy, its price target was set at 80 euros. Carrefour marks, the Paris stock exchange, a small decline losing 0.23% to 66.15 euros.
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