Futures down; focus on government crisis in France

(Alliance News) - European stock markets are preparing for a down start Thursday, with investors focused on the political chaos in France after the collapse of Prime Minister Barnier's government. His ousting via a vote of no confidence forces him to resign, while the budget that caused his downfall is now outdated and to be rewritten, increasing political uncertainty.

On the economic front, investors will be closely watching Eurozone retail sales data.

Thus, the FTSE Mib-after closing up 0.8 percent to 34,083.91 last night-is marking a red of 55.00 points.

In Europe, London's FTSE 100 is giving up 10.40 points, Paris' CAC 40 is giving up 32.30 points, and Frankfurt's DAX 40 is just below par.

Among the smaller listings last night, the Mid-Cap rose 0.8 percent to 47,490.98, the Small-Cap advanced 1.7 percent to 27,827.41, and Italy Growth finished up 0.1 percent to 7,723.95.

Returning to Milan, on the Mib last night Campari did best of all, closing ahead 4.3 percent. The company announced before the open that it has chosen Simon Hunt as Chief Executive Officer of Campari Group. Hunt will take over from current interim co-CEOs Paolo Marchesini, Chief Financial and Operating Officer, and Fabio Di Fede, Chief Legal and M&A Officer.

BPER Banca--up 0.4 percent--reported Wednesday that it has received prudential requirements from the European Central Bank to be met as of Jan. 1, 2025. The ECB ruled that BPER will have to maintain on a consolidated basis a minimum capital ratio in terms of Common Equity Tier 1 ratio of 8.93 percent - consisting of the sum of the minimum regulatory Pillar 1 requirement of 4.5 percent, the additional Pillar 2 requirement of 1.27 percent and the Combined Buffer Requirement of 3.16 percent -, while the minimum Total Equity requirement will have to be 13.41 percent.

Eni - in the green by 0.1% - on Tuesday reported that Enilive, a company dedicated to mobility products and services, announced a new agreement with easyJet airline to supply some flights departing from Milan Malpensa airport with sustainable aviation fuel - Sustainable Aviation Fuel.

Assicurazioni Generali -- in the green by 0.4 percent -- announced Wednesday that it has reached an agreement to sell 100 percent of its stake in Generali Life Assurance Philippines, Inc. to The Insular Life Assurance Company, Ltd. The sale will have a negligible impact on Generali's Solvency II Ratio and will generate a capital loss of about EUR20 million, net of taxes and minority interests, with no impact on normalized net income.

UniCredit -- up 0.2 percent -- announced Wednesday a partnership with Blackstone to distribute the Blackstone Private Equity Strategies Fund to its wealth clients in Italy starting Dec. 3.

Snam closed in the green by 0.4 percent. The company and VTTI on Tuesday said they had completed the acquisition of shares in Terminale LNG Adriatico Srl, the company that owns Italy's largest liquefied natural gas regasification terminal located in the waters off Porto Tolle, Rovigo.

Also down went Nexi, Terna and Erg, down between 0.3 percent and 0.8 percent.

On the Mid-Cap, Digital Value closed up 13 percent, bringing its green for the past month to 86 percent. It is reported that Citadel Advisors raised its short position on the stock to 0.71 percent from 0.61 percent.

In light of the industry slowdown and new market estimates, simulations related to the impairment test for the 2024 financial statements were analyzed.

These simulations suggest possible write-downs of some assets, estimating a total impact between EUR70 and EUR90 million.

LU-VE--up 1.5 percent--reported Tuesday that it has inaugurated the doubling of its LU-VE Tianmen plant in China's Hubei province. The production facility has expanded from 19,000 square meters to over 43,000 square meters with 6,640 square meters dedicated to finished goods storage.

On the Small-Cap, doValue closed in the green with a 23 percent flight.

Eurotech rose 1.6 percent after it announced Wednesday that it has received the resignation effective immediately and for personal reasons of nonexecutive and nonindependent director Alberta Gervasio.

KME Group--in the red by 1.4 percent--reported that its subsidiary KME has received approval from the German antitrust authority to acquire 100 percent of the shares of Blackhawk Holding, a German holding company that owns 100 percent of Sundwiger Messingwerk GmbH. Closing of the transaction, which now goes through the Austrian antitrust authority, is expected in the first quarter of 2025.

Mondo Tv - in the green by 1.5 percent - reported it is in the process of signing a new agreement with German company PLAION PICTURES GmbH one of Europe's leading distributors.

Borsa Italiana reported that Bioera's stock is suspended from trading.

Among SMEs, FAE Technology -- down 2.0 percent -- on Tuesday approved a EUR2.0 million capital increase to complete the acquisition of IpTronix Srl, scheduled to be completed by Dec. 31.

The transaction, approved by the board of directors, involves the issuance of 478,468 ordinary shares at a unit price of EUR4.18, a 39 percent premium to market value.

Promotica gave up 2.6 percent. The company on Tuesday reported that it launched five loyalty campaigns in November for major national and international retail players such as Coop, Carrefour and the DESA group, worth a total of more than EUR24 million.

Reway Group - in the green by 0.6 percent - on Wednesday reported that the closing of the acquisition of 60 percent of Vega Engineering S.r.l., a multidisciplinary engineering company, for an entreprise value of EUR3.6 million was completed.

In New York on the European evening, the Dow closed in the green by 0.7 percent, the Nasdaq rose 1.3 percent and the S&P 500 advanced 0.6 percent.

In Asia, the Nikkei advanced 0.3 percent, the Shanghai Composite closed in the green by 0.1 percent, and the Hang Seng is giving up 1.1 percent.

Among currencies, the euro changed hands at USD1.0537 from USD1.0529 in Wednesday's European stock close. The pound is worth USD1.2728 versus USD1.2703 on Wednesday evening.

Among commodities, Brent crude is worth USD72.39 a barrel from USD73.31 at last night's close. Gold trades at USD2,647.84 an ounce from USD2,679.04 an ounce last night.

Thursday's macroeconomic calendar has construction PMIs for Italy and the Eurozone at 0930 CET.

At 1100 CET, there is anticipation for the OPEC+ summit, and the Eurozone retail sales report is due at the same time.

In the afternoon, from the U.S., at 1430 CET, continuing unemployment claims will be released, and at the same time, the trade balance figure will be released.

It closes, also from the US, at 2230 CET with the Fed's balance sheet.

No particular announcements are expected among the companies listed in Piazza Affari.

By Maurizio Carta, Alliance News reporter

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