Silvia's Feed
Oct 17, 2011

UniCredit weighs options as recapitalisation looms

MILAN, Oct 18 (Reuters) – The board of UniCredit
meets on Tuesday as Italy’s biggest bank by assets weighs
options to shore up its capital position ahead of an EU summit
that is expected to include a plan to recapitalise the region’s
banks.

Chief Operating Officer Paolo Fiorentino said on Monday the
board meeting would be routine but one source close to the
situation said there could be a “quick exchange of views” on the
bank’s upcoming business plan and likely capital increase.

Oct 13, 2011

UniCredit shares plunge on cap hike concerns

MILAN (Reuters) – Shares in UniCredit (CRDI.MI: Quote, Profile, Research, Stock Buzz), Italy’s biggest bank by assets, fell 12 percent on Thursday on investors’ concerns over the bank’s need for billions of euros to shore up its capital position.

UniCredit’s capital shortfall is estimated at over 12 billion euros ($16.4 billion), according to Reuters Breakingviews data, if it is to meet tough requirements from the European Banking Authority.

Oct 8, 2011

Italy’s Fiom union calls Fiat strike on Oct 21

MILAN, Oct 8 (Reuters) – Italy’s radical metalworkers union
Fiom has called a one-day strike at Fiat plants
nationwide for Oct. 21, saying it feared the carmaker planned to
further wind down its operations in the country.

The strike was decided after Fiat earlier this week said it
was quitting employers’ group Confindustria in a row over labour
contracts, a move which Fiom says could be a precursor for a
gradual disengagement from Italy.

Oct 7, 2011

Fitch warns on Italian banks; ECB funding rises

MILAN (Reuters) – Italian banks risk being caught in a vicious cycle and face a further loss of confidence if the euro zone debt crisis worsens, Fitch warned on Friday, as data showed Italian lenders increasing their reliance on the European Central Bank for funding.

Explaining its decision to downgrade Italy’s sovereign debt rating to A+ from AA-, Fitch said the increased cost of funding and worsening asset quality due to the weak economy would place further pressure on the banks’ already strained profitability.

Oct 7, 2011

ECB funding to Italian banks rises in Sept

MILAN, Oct 7 (Reuters) – Italian banks sharply increased
their reliance on funding from the European Central Bank in
September as a spreading debt crisis crippled interbank lending
across the euro zone, data showed on Friday.

The data, posted on the Bank of Italy’s website, showed that
funding from the ECB rose to 104.7 billion euros ($140 billion)
at the end of September from 85 billion euros the month before.

Oct 3, 2011

Chrysler labor talks test Detroit’s new reality

DETROIT/MILAN, Oct 3 (Reuters) – When contract talks between
Chrysler Group LLC and the United Auto Workers union opened in
late July, expectations were high for a swift deal.
Representatives of both sides even wore matching maroon jackets
in a show of unity for the cameras.

But by September, when negotiators had moved behind closed
doors at Chrysler’s headquarters north of Detroit, the talks
bumped into issues of economics and ego. The lack of progress
forced a contract extension into the middle of October,
prolonging the uncertainty for 26,000 Chrysler workers.

Oct 3, 2011

Analysis: Chrysler labor talks test Detroit’s new reality

DETROIT/MILAN (Reuters) – When contract talks between Chrysler Group LLC and the United Auto Workers union opened in late July, expectations were high for a swift deal. Representatives of both sides even wore matching maroon jackets in a show of unity for the cameras.

But by September, when negotiators had moved behind closed doors at Chrysler’s headquarters north of Detroit, the talks bumped into issues of economics and ego. The lack of progress forced a contract extension into the middle of October, prolonging the uncertainty for 26,000 Chrysler workers.

Sep 23, 2011

Dapper Ermotti eyes top job at UBS

MILAN (Reuters) – Ever since he joined UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) in April as head of Europe, Middle East and Africa, Sergio Ermotti has been touted as a CEO-in-waiting, ready to take over the reins at the Swiss bank whenever its German chief Oswald Gruebel decides to step down.

That moment looks set to come sooner rather than later now that Gruebel, 67, is facing calls to resign over a rogue trading scandal that cost the bank $2.3 billion.

Sep 21, 2011

Greece, Telecom writedowns hit Mediobanca profit

MILAN, Sept 21 (Reuters) – Italy’s Mediobanca
posted an 8 percent fall in net profit in the fiscal year to
end-June due to 313 million euros of writedowns that included a
46 percent cut on the value of its Greek bond holdings.

The Milan-based boutique investment bank, a powerhouse at
the heart of Italian capitalism through a web of
cross-shareholdings, took a 109 million euro charge on its
exposure to Greek bonds and a 120 million euro one on its stake
in Telco, the holding that controls Telecom Italia .

Sep 21, 2011

Moody’s cuts Fiat on Chrysler risk, weak Europe

MILAN, Sept 21 (Reuters) – Moody’s cut Fiat’s
credit rating on Wednesday to reflect its closer ties with U.S.
automaker Chrysler and the increased risk of a loss of market
share in Europe and greater competition in Brazil.

Moody’s, which had put Fiat on review for a possible
downgrade in April, cut its rating one notch to Ba2 from Ba1,
with a negative outlook.