Italy – Factors to watch on Dec. 4

The following factors could affect Italian markets on Wednesday.

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 .

ECONOMY

Italian Prime Minister Giuseppe Conte said to several dailies on Wednesday that a reform of the European Stability Mechanism (ESM) should be approved in a package with other measures, including the reform of the European banking union.

“I still haven’t signed anything and won’t sign a blank cheque,” Conte was reported as saying in Corriere della Sera. He added that he did not rule out a delay in the approval of the reform.

IHS Markit releases November service Pmi data (0845 GMT).

COMPANIES

FTSE Indexes quarterly revision announcement expected (will be effective as of Dec. 23).

(*) BANKING SECTOR

Moody’s said on Wednesday its outlook for the Italian banking sector changed to stable from negative as problem loans fell and were expected to keep falling. The rating agency added that Italian banks are set to have stable or moderately better profitability this year and in 2020.

ATLANTIA

Credit rating agency Moody’s downgraded on Tuesday Italian infrastructure group Atlantia to Ba1 from Baa3, pushing it into non-investment grade territory.

UNICREDIT

Jean Pierre Mustier has shed bad loans, raised billions in capital and crafted a quirky new image for UniCredit with the help of Elkette, a soft-toy he brings out for selfies with fellow bankers ranging from Jamie Dimon to Lloyd Blankfein.

But he has yet to convince investors in Italy’s top bank of its long-term growth prospects.

A business plan that pledges to give back 8 billion euros to investors while cutting 8,000 jobs is unacceptable, the ruling 5-Star Movement said late on Tuesday in a statement.

GENERALI

Italian insurer Assicurazioni Generali has held talks with U.S. rival MetLife Inc to buy the bulk of its European assets but discussions have stalled due to differences over the price, four sources told Reuters.

(*) FIAT CHRYSLER

U.S. Commerce Secretary Wilbur Ross said on Tuesday the Trump administration has not ruled out imposing tariffs on imported autos, after letting a review period end in November with no action.

A2A

Italy’s biggest regional utility A2A has signed a deal with China’s Talesun to acquire a pipeline of solar power projects with an overall capacity of around 1,000 megawatts.

(*) ITALGAS, ENEL

Italy’s biggest gas distributor Italgas is among favourites in the tender for the privatisation of Greek utility Depa Infrastructure, while Enel is in the race for a 50% stake in Greek power group Hedmo, la Repubblica said.

LEONARDO

Leonardo and Colombia’s Corporacion de alta tecnologia para la defensa (CODALTEC) signed a Memorandum of Understanding under which the two organisations will work together to identify potential projects in Colombia, the Italian group said on Tuesday.

France’s Safran and MTU Aero Engines of Germany have agreed to develop together a jet engine for a Franco-German fighter, removing a key obstacle to one of Europe’s flagship defence projects.

Britain, with Swedish and Italian support, has embarked on a rival European fighter project called Tempest, while Spain has signed up to the Franco-German “Future Combat Air System”. (*) CEO Alessandro Profumo, asked whether he would be confirmed in his post, up for renewal in the spring, said that three years weren’t enough to give a strong boost to the company but that it was up to the company’s shareholders to decide whether he would stay on, Il Messaggero reported.

(*) CARIGE (shares suspended from trading)

Italy’s market watchdog Consob gave its go ahead to the troubled Italian lender’s capital increase which is due to start on Wednesday and run until Dec. 13.

Italian state-owned bad loan manager AMCO said late on Tuesday it will buy for about 1 billion euros a portfolio of Carige’s problem loans with a gross book value of 2.8 billion euros.

(*) CERVED

Italian bank and bad loan specialist Credito Fondiario and Intrum Group are the only two remaining bidders for Cerved’s debt management division, Il Sole 24 Ore said.

(*) MUTUIONLINE

Subsidiary 7Pixel said on Tuesday it filed an appeal against Google to define the damages caused by U.S giant’s anti-competitive actions through its Google Shopping website, as ruled and sanctioned by the European Commission on June 2017.

(*) ALITALIA

The Italian government delayed its plan to free up new funds for the loss-making airline, Il Corriere said.

Rome is looking for a manager and a commissioner to spearhead the turnaround of the airline after a group of potential rescuers backtracked last month, Il Sole 24 Ore said.

DIARY

Rome, Bank of Italy Governor Ignazio Visco speaks on the ESM reform before the Chamber of Deputies and Senate Budget committees (1300 GMT).

Rome, Conference “5G Italy, the global meeting in Rome” continues (0800 GMT); ends on Dec. 5. Expected attendees include Huawei Italian unit Chairman Luigi De Vecchis, Health Minister Roberto Speranza, Culture and Tourism Ministry Undersecretary Lorenza Bonaccorsi.

Rome, Unipol Group and The European House Ambrosetti hold news conference to present first report on “Welfare, Italy” with Unipol CEO Carlo Cimbri, and Chairman Pierluigi Stefanini, ISTAT President Carlo Blangiardo, European Commission representative Manuela Geleng (0730 GMT).

Rome, Economy Ministry Undersecretary Pierpaolo Baretta and Labor Minister Nunzia Catalfo due to attend a seminar on labor (0900 GMT).

Milan, Italian banking independent association FABI holds annual assembly with Bank of Italy Director General Fabio Panetta, Banca Carige special administrator Fabio Innocenzi, Italian banking association ABI President Antonio Patuelli and Director General Giovanni Sabatini (1130 GMT).

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

For pan-European market data and news, click on codes in brackets: European Equities speed guide………………. FTSEurofirst 300 index………………………… DJ STOXX index……………………………….. Top 10 STOXX sectors……………………… Top 10 EUROSTOXX sectors…………………. Top 10 Eurofirst 300 sectors………………. Top 25 European pct gainers………………….. Top 25 European pct losers…………………… Main stock markets: Dow Jones…………… Wall Street report ….. Nikkei 225…………. Tokyo report………… FTSE 100…………… London report……….. Xetra DAX…………. Frankfurt market stories CAC-40…………….. Paris market stories… World Indices………………………………. Reuters survey of world bourse outlook……… Western European IPO diary…………………….. European Asset Allocation…………………… Reuters News at a Glance: Equities…………… Main currency report:………………………….

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