(Alliance News) - Major European indexes closed in negative territory Tuesday on a day packed with macroeconomic data and results in Milan.
"The negativity appears to have been triggered by the warning that rising construction costs for electric cars would likely weigh on free cash flow in the second half of the year. Another weak set of Chinese PMIs served to weigh on sentiment, along with commodity prices, as markets seek to determine whether Chinese authorities are serious about committing to further stimulus measures for the struggling economy," commented Michael Hewson, chief market analyst at CMC Markets.
Thus, the FTSE Mib closed down 1.0 percent to 29,356.16, the Mid-Cap down 0.8 percent to 42,544.75, the Small-Cap in the red 0.7 percent to 27,007.03, and Italy Growth down 0.4 percent to 9,042.76.
In Europe, London's FTSE 100 ends down 0.4 percent, Paris' CAC 40 gives up 0.9 percent, as does Frankfurt's DAX 40.
On the main index in Piazza Affari, Telecom Italia is among the best - in the green by 1.5 percent - after news that the government is likely ready to make a move with direct co-involvement of the Treasury along with KKR and F2i on the network issue.
Driving the action in Milan is first and foremost the news that TIM Brasil, the group's real golden goose, posted better-than-expected results. In the second quarter, revenues were up 9.2 percent on the previous year and net income for the period rose to EUR121 million from EUR54 million.
"According to rumors published today by la Repubblica, which have not been denied, the U.S. fund KKR is working on an advance of its offer with respect to the September 30 deadline granted by Telecom's board of directors. Within a month, the US fund's final proposal could be ready. On the money, we would not deviate much from the figures anticipated in recent months, namely EUR21 or EUR22 billion," Francesco Bonazzi, columnist for Alliance News, wrote in his Affari in Piazza.
"KKR wants to have a majority stake in NetCo and would be joined by the Treasury, with a 15 percent share, and the pair formed by F2i and CDP, with 20 percent. The Ministry at Via XX Settembre would enter directly to limit the reach of CDP, which has 10 percent of Telecom and controls competitor Open Fiber. The fear is that European antitrust will raise exceptions to CDP's role."
Leading the way is Iveco, up 1.7 percent on the eve of the publication of the company's half-year results.
In the red is FinecoBank, which leaves 1.6 percent on the parterre despite record first-half data. The company reported that net income amounted to EUR308.9 million, up 39 percent from EUR222.5 million reported in the same period last year.
Revenues stood at EUR600.7 million, up 29% from EUR464.3 million in the first half of 2022.
Banks all suffer. The board of Banca Mediolanum -- in the red by 3.8 percent -- on Tuesday approved the consolidated half-year financial report as of June 30, reporting a net profit of EUR363.3 million, up 51 percent from the value recorded in the first half of 2022 of EUR241.1 million.
Net interest income amounted to EUR347.3 million from EUR167.5 million in the same period of the previous year, thus up 107% due to the rapid increase in interest rates and the weight of the variable component in the composition of the loan portfolio and securities held by Treasury.
On the Mid-Cap, Reply gives up 2.7 percent, after approving Friday results as of June 30 reporting a pre-tax profit of EUR113.5 million up from EUR108.7 million in the first half of FY2022.
Turnover of EUR1.04 billion records a 17 percent growth from EUR889.7 million in the first half of the previous year.
Also in the red is Safilo Group, which gives up 2.7 percent. The company announced Monday the renewal of its licensing agreement with Brazilian group Alpargatas for the design, production and distribution of havaianas-branded prescription frames and sunglasses until Dec. 31, 2028.
On the upside, among others, is Brembo, which rises 2.7 percent after announcing Monday that on Tuesday, August 1, the share buyback program approved earlier by the shareholders' meeting, for a maximum of EUR144.0 million and a maximum of 8.0 million ordinary shares, will be launched.
The program has a duration of 18 months and will therefore end by October 20, 2024.
Salcef Group, down 1.1 percent, announced Tuesday that it had completed the closing for the acquisition of the entire share capital of Colmar Technik.
The closing took place following the fulfillment of the conditions precedent stipulated in the preliminary agreement and the successful conclusion of the due diligence process.
The board of directors of Arnoldo Mondadori Editore -- in the red by 0.2 percent -- reviewed and approved Tuesday the half-year financial report as of June 30, reporting a profit of EUR12.2 million, up from EUR2.8 million in the same period of 2022.
Consolidated profit before tax is EUR12.3 million, an improvement from EUR500,000 in the first half of 2022.
On the Small-Cap segment, RCS MediaGroup -- down 1.4 percent -- reported Monday that it ended the first half of the year with a net profit of EUR30.3 million, up from EUR24.2 million in the same period last year.
Net income rose despite revenues falling to EUR439.2 million from EUR445.7 million, with first-half advertising revenues amounting to EUR179.4 million compared to EUR175.1 million in the first half of 2022. Total advertising revenues in online media stood at EUR67.7 million, accounting for about 38 percent of total advertising revenues.
Esprinet gives up 1.9 percent after announcing Tuesday that it has acquired, through its subsidiary V-Valley Advanced Solutions España, 100 percent of the share capital of Lidera Network, a Spanish-registered company with a branch in Portugal that has been active since 1999 in the distribution of software solutions in the cybersecurity field.
The agreed consideration, amounting to EUR5.6 million and subject to actionable adjustment mechanisms within one year, was paid in full in cash.
Among SMEs, SolidWorld Group - in the green by 2.7 percent - announced on Tuesday that it had finalized, through its subsidiary SolidFactory Srl, the transfer of a technology business unit from Formula E Srl, of the Vismunda Srl group, a world leader in automation for equipment dedicated to the renewable energy sector.
The economic value of the branch contributed to SolidFactory is EUR970,000. Also included in the contribution is Formula E's current customer portfolio, which includes orders worth more than EUR2.6 million, which will run out to about EUR1 million in 2023 and EUR1.6 million in June 2024, while the value of production in 2022 stood at about EUR3 million.
Riba Mundo in its first days on the Stock Exchange takes the top spot and rises 22 percent to EUR31.50 per share. The company started trading after a EUR5.3 million IPO, which would rise to EUR5.5 million if the over-allotment is exercised in full.
The free float is 13 percent and the market capitalization is EUR40 million.
In New York, at the height of trading on Tuesday, the Dow is in the fractional red, the Nasdaq is in the red by 0.4 percent, as is the S&P 500.
Among currencies, the euro changes hands at USD1.0963 versus USD1.1019 in Monday's European equities close while the pound is instead worth USD1.2760 from USD1.2857 on Monday evening.
Among commodities, Brent crude is worth USD84.92 per barrel versus USD85.53 per barrel at Monday's close. Gold, meanwhile, trades at USD1,980.25 an ounce from USD1,970.39 an ounce last night.
Wednesday's economic calendar begins at 0900 with the change in the Spanish unemployment rate, while half an hour later it is the turn of the procure.ch PMI in Switzerland.
Overseas, at 1300 CEST it is the turn of the US mortgage rate, while at 1630 CEST it is the turn of crude oil stocks data.
Among the companies listed in Piazza Affari, the results of Anima Holding, Banco BPM, BPER Banca, Ferrari, Iveco Group, Technogym and Telecom Italia, among others, are expected.
By Claudia Cavaliere, Alliance News reporter
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