Telecom at bottom of Mib; indexes down.

(Alliance News) - European indexes remain in the red in mid-session Monday as investors choose caution ahead of the release of U.S. inflation data.

Thus, the FTSE Mib is down 0.5 percent to 33,247.29 as is the Mid-Cap to 46,208.78, the Small-Cap is in the red 0.4 percent to 27,399.74, while Italy Growth is down 0.6 percent to 8,057.19.

In Europe, Paris' CAC 40 is in the red by 0.4 percent, London's FTSE 100 gives up 0.5 percent, and Frankfurt's DAX 40 is down 0.6 percent.

On the Mib, Telecom Italia returns to the bottom of the list after opening up 1.5 percent. The company now gives up 6.1 percent after announcing on Monday a supplement to its press release and presentation of its business plan to 2026, specifying that pro forma net debt net of estimated deleverage for the Netco deal of about EUR6.1 billion as of Dec. 31, 2023, is expected to be about EUR7.5 billion at the end of 2024.

This change is mainly attributable to an ordinary operating component-i.e., Ebitda net of investments, financial expenses, Net Working Capital performance, TIM Brasil minorities, and the taxes and other charges component-and an extraordinary operating component, i.e., impacts related to the Netco transaction such as separation costs, possible impacts from price adjustments, and additional items related to Net working Capital.

Finally, regarding the 2025-2026 cash flows, the company specified that in 2025 Net cash flow is expected to be around zero and in 2026 around EUR500.0 million.

Enel, among the few bullish performers, advances 0.5 percent. The company announced that, with the aim of rationalizing the management of distribution networks that interoperate in Lombardy, its subsidiary e-distribuzione Spa has signed an agreement with A2A - in the red by 2.1% - to transfer to the latter 90% of the share capital of a newly established corporate vehicle, in which the electricity distribution activities in some municipalities in the provinces of Milan and Brescia will be conferred.

As the company explained, the agreement calls for A2A to recognize a consideration of about EUR1.2 billion, defined on the basis of an Enterprise Value - referring to 100 percent - of about EUR1.35 billion.

Iveco Group and Inwit also rose, in the green by 1.7 percent and 1.2 percent, while Stellantis and Moncler advanced 0.8 percent and 0.6 percent.

On the cadet segment, Fincantieri rises 5.4% after announcing Thursday that it improved its loss in 2023 to a loss of EUR53 million from a loss for EUR324 million as of Dec. 31, 2022.

Revenues in the period stood at EUR7.65 billion from EUR7.44 billion in 2022.

It follows Maire Tecnimont, which advanced 2.3 percent. In recent days, it announced that Tecnimont has been awarded by tender from Sonatrach an Engineering, Procurement, Construction and Commissioning contract for a new linear alkyl benzene sulfonate plant in the Skikda industrial zone, 350 kilometers east of Algiers. The value of the contract is approximately USD1.1 billion

Danieli - in the green by 1.7 percent - reported Thursday that it closed the first half of the year 2023/2024 on Dec. 31 with a profit of EUR98.8 million, up 33 percent from EUR74.1 million in the same period last year.

Italmobiliare -- in the red by 0.9 percent -- reported Thursday that it ended 2023 with a profit of EUR51.6 million from EUR33.5 million in 2022. The board of directors will also propose to the next shareholders' meeting the distribution of a dividend totaling EUR3 per share.

UnipolSai Assicurazioni -- in the red by 0.2 percent -- on Friday reported that rating agency Fitch raised its restricted Tier 1 rating from BB to BB+.

Among smallcaps, Somec gives up 20 percent -- and the stock is suspended -- after it announced that it has reviewed its pre-closing data for fiscal year 2023 and, as a result, revised downward its expectations for 2023, which were published last September. Specifically, the company now expects Ebitda to be below the minimum value in the previously disclosed range by about 25 percent.

Net financial position, on the other hand, will be above the maximum value expected from the range by about 20 percent.

CY4Gate - in the red by 1.3 percent - announced Monday that it has signed two contracts worth a total of more than EUR600,000 for the execution of two cyber security research and innovation projects with a leading Italian high-tech company, operating both in Italy and abroad, for a duration of 12 months.

Safilo Group is flat at EUR1.18 after announcing that it has renewed its global license agreement with Missoni for Missoni-branded eyewear until the end of 2029.

Among SMEs, Pasquarelli Auto rises 1.6 percent after it announced that it signed Friday an agreement to lease a business unit of Giansante Auto, a dealership for the Fiat, Abarth, Lancia and Fiat Professional brands for the provinces of Chieti and Pescara, as well as a retailer of used cars, founded in 1949.

In 2022 Giansante Auto had revenues of about EUR24.3 million, a negative EBITDA of about EUR1.1 million and a loss of about EUR1.4 million. In 2023, the company activated the negotiated settlement procedure for business crisis resolution. The transaction is aimed at the possible future purchase of Giansante Auto.

The rent for the business unit is set at EUR10,000 monthly.

Deodato.Gallery rises 0.8 percent after announcing a partnership with EuroMilano for UpTown Milano, the residential project "that has generated a new culture of living in Italy," the company's note says.

UpTown is the first Smart District in the city of Milan and is the protagonist of the most important urban regeneration project in Italy.

The agreement has a three-year duration and the planned investment for this operation is more than EUR400,000, to be realized by December 31, 2027.

In New York on Friday evening, the Dow closed down 0.2 percent to 38,722.69, the Nasdaq gave up 1.2 percent to 16,085.11, and the S&P 500 finished down 0.7 percent to 5,123.69.

Among currencies, the euro changed hands at USD1.0943 against USD1.0948 recorded in Friday's European stock close, while the pound was worth USD1.2850 from USD1.2860 on Friday evening.

Brent crude is worth USD81.90 per barrel versus USD81.76 per barrel at Friday's close. Gold, on the other hand, trades at USD2,179.43 an ounce from USD2,181.30 an ounce Friday night.

On Monday afternoon's macroeconomic calendar, on the bond front at 1455 CET French BTF auctions with 3-, 6- and 12-month maturities are expected, while from overseas at 1730 CET it is the turn of US Treasury bond auctions with 3- and 6-month maturities.

By Chiara Bruschi, Alliance News reporter

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