Italy - Factors to watch on October 23
SPY•Italian market factors include the Treasury’s planned bond auctions, a €14.9 billion tally for its BTP Valore retail bond sale, and company updates including Eni’s third-quarter results and dividend payment.
1. Markets and economy
The Bank of Italy has found no evidence that domestic bank consolidation has tightened credit for businesses, Governor Fabio Panetta said, adding that the central bank will continue to examine the issue. Panetta also called proposals to limit banks’ holdings of their government’s bonds untimely and unuseful.
2. Debt and companies
Italy’s Treasury will offer up to €3.5 billion in short-term and inflation-linked BTP bonds at an October 27 auction, and will detail BOT bills for an October 28 auction. The BTP Valore retail bond sale was due to close, with €14.9 billion placed as of Thursday. Eni was set to release third-quarter results before the market opened and said it would pay a €0.27-per-share dividend tranche on November 25.
3. Other company news
The bid by CVC Capital Partners and Groupe Bruxelles Lambert for Recordati ends Friday. Barclays reduced its stake in Banca Monte Paschi to 3.07% from 5.03%; BlackRock raised its stake in Saipem to 8.63% from 5.16%; and J.P. Morgan Asset Management raised its BPER Banca stake to 8.79% from 5.79%.
