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 (*).
Italian lawmakers on Tuesday pulled back from a showdown
over the political future of Silvio Berlusconi after allies of
the billionaire media tycoon threatened to bring down Prime
Minister Enrico Letta's unstable ruling coalition.
Employers' association Confindustria holds a conference in
Rome on economic policy challenges, with Enel CEO Fulvio Conti,
Snam Chairman Lorenzo Bini Smaghi and Economy Minister Fabrizio
Italy's Treasury has asked parliament to raise the ceiling
on this year's net debt issuance to 98 billion euros ($130
billion) from 80 billion euros, highlighting the difficulty Rome
is having in reining in the public finances.
Italian government bond yields rose above Spain's for the
first time since March 2012 on Tuesday on concerns about the
survival of Rome's fragile government coalition.
The Treasury offers 11.5 billion euros in bills on
European carmakers need to close more factories and cut more
jobs, executives at the Frankfurt car show said on Tuesday,
warning any recovery in demand was likely to be long and slow as
unemployment remained high and bank lending weak.
* At the last Frankfurt motor show in 2009, the big story
was not the cars, but the euro zone crisis and specifically how
the continent's car companies could survive.
This year, the crisis is waning but caution remains. As sales
continue to lag, especially in Southern Europe, the most
interesting new models are not sports or luxury cars, but family
station wagons, the epitome of practicality.
Italian luxury carmaker Maserati expects its sales to jump
to about 16,000 cars this year from 6,300 last year, boosting
the brand's profit margin by a "high single-digit" percentage,
its chief said.
The European Union Commission has approved a plan to spur
investment in communications networks and create a single market
for telecoms services despite concerns that some parts may
favour big operators, two officials said on Tuesday.
TELECOM ITALIA, TELEFONICA
* Spanish telecommunications company Telefonica is
considering raising its stake in Telecom Italia amid an expected
overhaul of the group's ownership structure, the Wall Street
Journal reported, citing people familiar with the matter.
* Telefonica and its Italian partners in telecoms holding
company Telco disagree over a possible 3 billion euro
recapitalisation plan for Telecom Italia, Il Messagero reported.
* Significant volumes of call options to buy Telecom Italia
shares at 0.80 euros in December and 0.85 euros in March have
been traded in recent sessions, Il Sole 24 Ore reported citing
dealers. Speculation among traders is that Telefonica is the
most likely buyer, the paper added.
Telecom Italia SpA is considering boosting investments in
its Italian fixed-line network under a plan which, if approved,
could require a cash injection, a trade union official said
after a recent briefing with management.
* Telefonica is in talks with Brazil's telecommunications
authority over the impact on Brazilian assets of a possible
merger between Telefonica and Telecom, MF reported.
Mid-sized lender Carige is emerging as the latest Italian
banking problem after the Bank of Italy said in a report the
Genoa bank had engaged in onerous derivatives trades and raised
objections to its accounting methods and valuations.
The European Parliament and the European Central Bank have
resolved a dispute over the new financial supervisor, paving the
way for EU lawmakers to sign off on new rules allowing the ECB
to supervise banks next year.
* BANCA MONTE DEI PASCHI DI SIENA
Monte Paschi's board meets on Wednesday to discuss the
bank's restrucuring plan after the European Union said the
Sienese lender would need to carry out a 2.5 billion euro ($3.32
billion) capital increase if it wanted to win EU approval for a
4.1 billion euro state bailout.
The bank may ask current shareholders to buy into at least
part of its planned capital increase, MF reported.
Campari announced the official opening of a $43 million
dollar packaging facility at its Kentucky distillery which chief
executive Bob Kunze-Concewitz said should help the group meet
demand for its Wild Turkey bourbon and Skyy Vodka brands.
The oil and gas company's CEO Paolo Scaroni was quoted as
saying in IL Fatto Quotidiano that he would prefer another
mandate at Eni rather than moving to insurer Generali
when his current mandate expire next year.
Banking association ABI holds Executive Committee meeting in
Milan (0800 GMT).
SCENARI IMMOBILIARI CONFERENCE
Independent property research firm Scenari Immobiliari holds
news conference to present report on "European Outlook 2014"
Banca Intermobiliare holds bond holders meeting (0730 GMT)
and ordinary and extraordinary shareholder meeting (1400 GMT).
PRIMI SUI MOTORI
Primi Sui Motori holds board meeting on H1 results.
For more details on today's events please see the full
agenda in Italian.