Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Monte Paschi Surges as Italy-Germany Spread Narrows: Milan Mover

Aug. 13 (Bloomberg) -- Banca Monte dei Paschi di Siena SpA, the bailed-out Italian bank, rose the most in four months, leading gainers on the benchmark FTSE MIB Index, after Italy’s 10-year yield premium over benchmark German bunds shrank to the least in two years.

The country’s third-largest bank rose as much as 9.7 percent, the biggest gain since April 10, and was up 7.5 percent at 22.5 cents as of 3:55 p.m. in Milan. That gives the Siena, Italy-based bank a market value of 2.61 billion euros ($3.5 billion). The FTSE MIB rose 0.2 percent.

Monte Paschi is the most exposed lender in the country to Italy’s sovereign debt, holding about 29 billion euros of bonds at the end of June, more than three times its tangible capital. Chief Executive Officer Fabrizio Viola is trying to revive profit after acquisitions, investments in sovereign debt and derivatives hurt capital. Paschi posted its fifth straight quarterly loss in the second quarter.

Italy’s 10-year yield was little changed at 4.16 percent, while benchmark German rates climbed eight basis points to 1.79 percent, narrowing the difference to 237 basis points, the least since July 2011.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.