2023-08-09 21:11:56
After the stock market panic on Tuesday, calm returned to the stock markets, although it was not precisely due to a readjustment in the markets, but rather due to the reversal given by the Italian Government to its intention to tax 40% of the profits of transalpine banks , at least in part, by being forced to qualify the true scope of his “tax” and reduce its scope.
The news, released by surprise in the early hours of Monday, fell like a bomb among investors, which unleashed a stock market panic on Tuesday, before returning to calm after the general rise in the values of all European banks, and especially the Italian, who partly recovered what was lost in the previous session. And what has been the reason for this miraculous recovery? Well, the transalpine Ministry of Economy and Finance clarified in a statement that the proposed measure will be limited to “a maximum limit that cannot exceed 0.1% of the bank’s total assets.” In addition, he recalled that financial institutions that have already adjusted the remuneration of deposits – as recommended by the Bank of Italy on February 15 – “will not suffer significant impacts as a result of the approved standard.”
A direct consequence of this qualification was the return of investor confidence, which led to a positive closing of the session on the Milan Stock Exchange, thanks mainly to the recovery of the shares of entities such as Banco BPM, which rose by 5, 45%, and UniCredit, which did 4.37%. Titles such as Mediolanum earned 2.68%, those of Banca Monte dei Paschi di Siena 2.47%, as well as 2.33% for Intesa Sanpaolo and 2.21% for Bper. Mediobanca shares, which were the least affected on Tuesday (-2.48%), were also the most conservative yesterday, after rising 1.04%. In total, the value recovery of these entities was close in a single session to almost half of what was lost, almost 4,000 million.
The echoes of the transalpine banking collapse quickly reached the Spanish parquet, which closed like the rest of its counterparts with significant losses, partially wiped out in Wednesday’s session, with less intense rises than falls. BBVA was the one that had the best performance on the day, with a rise of 1.11%, followed by Banco Sabadell (+1.03%), Caixabank (+0.94%), Santander (+0.75%) and Bankinter (+0.067%).
In the rest of the continent’s markets, the unleashed tsunami was also neutralized. The Stoxx Banks sub-index, which brings together the main banking entities in the euro zone, recovered 1.3% yesterday, although it is still far from the collapse suffered, of 3.54%. The German entities Deutsche Bank and Commerzbank rose 1, 61% and 0.36%, respectively, while French banks BNP Paribas and Société Générale advanced 1.37% and 1.31%, although Crédit Agricole lost 0.14%. As for the Dutch, ING rose 0.34%, after falling slightly more than 2% yesterday, while ABN Amro lost 2.11% after presenting results, after losing 1.57 in yesterday’s session. %.
This episode of panic originates from the chaotic way of approving the economic measures by the new Italian government. Improvisation and lack of foresight have marked this latest announcement, which has had to be modified on the fly on several occasions, a situation that the investment markets do not like at all. If we pay attention to the latest version offered by the Meloni Executive, the rule “will only be activated if the interest margin registered in 2022 exceeds the value of the 2021 financial year by at least 5%”, a percentage that would rise to 10 % if 2023 is compared with the previous year. In the first draft released, these percentages were located at 3% and 6%. Urged by the stock market collapse of its entities, the Ministry had to go out to the media again to ensure that the tax will have a maximum limit of 0.1% of the entity’s total assets.
With this latest urgent reconditioning, according to analysts, the disbursement that the main Italian banks could face would not fall below 2,500 million for the first half of 2023, since their income is more diversified, to the detriment of the smaller banks, which percentage-wise they might have to pay more.
#Melonis #step #tax #returns #calm #banks #markets