May 29, 2017 / 4:04 AM / 2 months ago

Italy - Factors to watch on May 29

9 Min Read

The following factors could affect Italian markets on Monday.

Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).

For a complete list of diary events in Italy please click on .

Politics

Former prime minister Matteo Renzi suggested on Sunday that Italy's next election be held at the same time as Germany's, saying this made sense "from a European perspective".

Debt

Treasury sells 6.0 billion euros 6-month BOT bills. Subscriptions close at 0900 GMT.

Companies

Banks

Banca Popolare di Vicenza and Veneto Banca have asked an investment fund backed by Italy's healthier banks to come to their rescue by helping to cover a capital shortfall, as demanded by the European Union.

Another meeting between EU Competition officials with representatives from the Italian Treasury, Bank of Italy and ECB, but without the top managers of the two banks, is likely on Wednesday to continue discussing the restructuring of the lenders, Il Messaggero said on Saturday. There is room to cut the amount of private capital called for by the EU to around 600-700 million euros, it said.

Both banks will hold board meetings on Tuesday, various papers reported at the weekend.

Il Sole 24 Ore on Sunday said Italy aimed to halve Brussels' request of an additional 1.25 billion euros in private capital for the two banks.

Financial consultants could present a plan that envisages the tie-up of the two lenders with larger rival Monte dei Paschi on Tuesday to the parties involved, Corriere della Sera said on Saturday, without citing sources. It said the plan was still just "a hypothesis needing study".

The idea of a three-way merger has no future as Monte dei Paschi is close to completing the process that will open the door to the state bailout, Il Messaggero reported on Sunday.

The only way to win over Brussels and prevent the two Veneto banks failing is to cut costs more aggressively than currently envisaged, Corriere della Sera said on Saturday citing people close to the matter. The 20 percent job cuts will have to rise, maybe even double, the paper said. Prime Minister Paolo Gentiloni is involved in talks with the EU, it said.

La Stampa reported on Sunday EU authorities demanded the two banks cut remaining staff by a further 10 percent after a 30 percent reduction achieved through the sale of various units and early retirements.

Undersecretary Pier Paolo Baretta was quoted on Sunday as saying a solution must be found by the summer as the two Veneto banks could not afford to wait any longer.

Banca Monte Dei Paschi Di Siena

The bank and Italy's government aim to sign an accord with EU Competition authorities over the lender's restructuring plan towards the end of the week or early the following one, Il Sole 24 Ore reported on Sunday. Given that it should take at least 3 weeks for the Commission to ratify the accord, it would be the only way to ensure the proposed state recapitalisation can take place in July as indicated by the economy minister.

La Stampa on Sunday said a green light from Brussels would arrive by Thursday.

Intesa Sanpaolo

The bank has a put option to exit in the mid-term its investment in the consortium, led by ArcelorMittal, that has won the bid to buy steel maker Ilva, Il Messaggero said on Saturday. The paper said Intesa should invest around 100 million euros.

La Repubblica on Saturday reported Intesa was set to buy a 5-10 percent stake in the consortium from Gruppo Marcegaglia through put and call options. (*) The lender's new strategy is expected to include plans to close hundreds of branches, shave hundreds of millions of euros off its cost base and shrink its bad loan portfolio by a third, the Financial Times said, citing people briefed on CEO Carlo Messina's discussions with investors. The bank is also expected to outline aggressive plans to increase the market share of its Italian general insurance business, while boosting its fund management activities by a quarter by adding an extra 100 billion euros of assets, the people said.

(*) Ferrari

Sebastian Vettel extended his Formula One championship lead over Lewis Hamilton to 25 points on Sunday after becoming the first Ferrari driver since Michael Schumacher in 2001 to win the showcase Monaco Grand Prix.

Saipem

The oil services group said on Friday a decision to settle some tax disputes would result in 79 million euros in costs for the first half which are not reflected in its current guidance for 2017 net reported results. However, guidance on net debt for the full year is unchanged, it said.

Saipem has won an offshore drilling contract worth more than 100 million euros from the Eni-Rosneft joint venture, Saturday's Il Sole 24 Ore said, citing Rosneft CEO Igor Sechin.

Telecom Italia

The company is not interested in bidding for soccer rights to Italy's top flight Serie A, La Stampa said on Saturday citing sources.

Mediaset

Pope Francis on Sunday said he hoped the predicament of the broadcaster's Roman workers could be solved in the company's best interest, not just its profit, and that the rights of all involved, first and foremost the right to a job, could be protected.

Poste Italiane

New CEO Matteo Del Fante will seek to relaunch the post office's traditional businesses of mail and parcel delivery under a new business plan currently in the making, while taking a step back on asset management, Il Sole 24 Ore reported on Sunday. Payment services continue to be an important business for Poste and there could be news in the short term, it said.

The new plan should be ready in the autumn, Corriere reported on Sunday. Del Fante has cut the positions of two deputy general managers his predecessor Francesco Caio had appointed as he redesigned Poste's new top management team, the paer said.

Rcs Mediagroup

CEO Urbano Cairo told La Stampa in an interview on Sunday that the publisher may decide to issue bonds to lengthen the average maturity of its debt.

Dada

The company is looking to make acquisitions in Italy and abroad to diversify its portfolio and grow, Il Sole 24 Ore said on Saturday, citing Dada general manager.

Brembo

Share split begins.

Parmalat

Ordinary shareholders' meeting (0800 GMT).

Proxy advisers Glass Lewis and ISS have suggested Parmalat shareholders vote in favour of suing the top executives in power in 2011-2012 due to the damages caused by a cash pooling contract that allowed top shareholder Lactalis to manage Parmalat's liquidity, Il Sole 24 Ore reported on Sunday.

Unicredit

Savings shareholders' meeting in Milan (1300 GMT).

Maire Tecnimont

The engineering group still sees 2017 revenues at 2.8-3.0 billion euros and an EBITDA of 170-180 million euros with up to 50 million euro in net cash at the end of year, Il Sole 24 Ore reported on Sunday in its Letter to the Investor.

(*) Ipo, Pirelli

The tyre company will be re-listed in Milan in the last quarter of this year and rules out a secondary listing for the time being, CEO Marco Tronchetti Provera said on the sidelines of the Monaco Grand Prix.

For Italian market data and news, click on codes in brackets:

20 biggest gainers (in percentage)............

20 biggest losers (in percentage).............

FTSE IT allshare index

FTSE Mib index........

FTSE Allstars index...

FTSE Mid Cap index....

Block trades..........

Stories on Italy...... IT-LEN

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