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Markets: Unicredit, Fiat & Fed in focus

Friday, May 20, 2016 - 01:34

Unicredit leads Europe's shares higher in early trade, as markets apparently shrug off fears over the Fed and carmaker Fiat. David Pollard reports.

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It was a brisk start to European share markets despite reasons for it not to be. Fiat Chrysler one of them - its shares took a two and half per cent tumble in early trade. Germany's transport minister accusing it of 'completely incomprehensible, uncooperative behaviour' after it failed to attend a meeting over possible emissions irregularities. (SOUNDBITE) (English) CHRIS JUSTHAM, 7 INVESTMENT MANAGEMENT, SAYING: "It seems strange that they choose to be uncooperative in that area, particularly when you seen the impact that it's had on Volkswagen. So it seems strange they would give themselves difficulties and make trouble for themselves over absolutely nothing." UniCredit rose sharply on reports it may sell some holdings to improve its capital base. Stakes in FinecoBank, Turkey's Yapi Kredi and Poland's Bank Pekao are thought to be in the frame. That helped lift sentiment after Thursday's equity markets were dragged down by Fed talk. Recent signals now appearing to put a Fed hike on the cards if not next month, then in July. The dollar was heading to a third week of gains on that - even if markets remain a little sceptical. The oil price outlook also seen as a key factor. (SOUNDBITE) (English) CHIEF ECONOMIC ADVISER, CEBR, VICKY PRYCE, SAYING: "What will happen with it in the future, we don't know. Given the uncertainties all around the world, then there is a big issue about whether the US can sustain the type of growth that would justify raising interest rates. So my view is that they're talking about it, but won't do it." And Europe's share markets in focus for their shares as much as their share trading. France now raising competition concerns over the planned 30 billion dollar union of LSE and Deutsche Boerse. Finance minister Michel Sapin warning of the potential impact their market dominance could have on the European economy.

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Markets: Unicredit, Fiat & Fed in focus

Friday, May 20, 2016 - 01:34