Great anticipation for the fourth edition of the BTP Valore, the Italian government bond reserved exclusively for retail investors created by the Meloni government, with the aim of inducing Italians to purchase increasing shares of the ‘home’ public debt, i.e. Italy’s, leveraging their patriotic spirit.
The mission launched primarily by Prime Minister Giorgia Meloni has been very successful so far: the so-called BTP People didn’t think twice about buying up the various BTP Values offered by the Treasury, attracted by the returns, in a context in which the returns on deposits parked at banks have remained slim for quite some time.
Also certifying the success of these renamed BTPs Patriotic and sovereignist BTPs – which will be issued again next week, from Monday 6 May until Friday 9 May, – have been the same data published by Bankitalia.
Today the Mef has made the long-awaited announcement on rates of this fourth edition:
from the first to the third year the minimum guaranteed rates are equal to 3.35%, from the fourth to the sixth year they rise to 3.90%.
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Mef announces minimum rates for the fourth edition of the BTP Valore. The ISIN code
As the Mef with the press release issued today, with which he announced the minimum guaranteed rates of the new BTP Valore and the ISIN code.
“The Ministry of Economy and Finance communicates that the series of minimum guaranteed coupon rates for the special issue of the BTP Valore, which will take place from Monday 6 May to Friday 10 May (until 1pm), unless early closure, is the following”
3.35% for the 1st, 2nd and 3rd year
3.90% for the 4th, 5th and 6th year.
“At the end of the placement, the definitive coupon rates will be announcedwhich may be confirmed or revised upwards, based on the market conditions on the closing day of the issue”.
“The ISIN code of the security during the placement period is IT0005594491″.
BTP Valore, Bankitalia confirms BTP People fever
In the Financial Stability Report recently published, Bankitalia dedicated a section to Italian government bonds, writing in black and white that “activity on the primary market continues to benefit from direct placements with retail investors”.
The numbers speak clearly:
“at the end of February, 18.3 billion were raised through the third edition of the BTP Valore, a record for an issue of this type“. And a record already successfully welcomed by the Treasury-Mef (Ministry of Economy and Finance) which commented on the outcome of the third edition, which started on 26 February and ended on 1 March:
It’s about the highest result ever in terms of value subscribed, but also in terms of number of contracts registered in a single placement of government bonds for small savers (retail), for whom the BTP Valore is exclusively intended.
Bank of Italy did not ‘just’ point out yet another great success that the Meloni government has achieved the third edition of the state title.
In its latest report on financial stability, Palazzo Koch also recalled that, “in the second half of 2023, the share of government bonds held by Italian families increased sharply following the growth in yields, exceeding 10 percent“.
Instead they have “further decreased the shares of the Bank of Italy and the Eurosystemin line with the normalization of monetary policy (therefore with the so-called QT-Quantitative Tightening process launched by the ECB), as well as those of banks and insurance companies”, in a context in which – BTP Valore included – “the placement of government bonds continued regularly, with increasing quantities for medium and long-term securities and average yields at issuance falling from the October 2023 high.”
From the picture presented by Bankitalia it emerged that Foreign investors were also shopping for Italian paper.
As regards retail participation, the Bank of Italy led by governor Fabio Panetta specified that this increased on the one hand with the issues of the BTP Valore, on the other in the wake of the decision by account holders to transfer the liquidity held in bank accounts in favor of investments considered more attractivecharacterized by higher yields (as were, precisely, the BTP Valore).
BTP Value: Meloni in the fourth act. While waiting for rates, pay attention to the loyalty bonus
It is in this context of BTP People to the rescueto the delight first of all of Prime Minister Giorgia Meloni – who has never made a secret of her objective “more government bonds in the hands of Italians” – who will start the fourth edition of the BTP Valore next Monday 6 May, according to what announced with a statement from the Treasury led by Minister Giancarlo Giorgetti, last April 11th.
GUARD
The Mef commercial
It is worth mentioning that the final rates of the third edition of the BTP Valore had confirmed those previously announced, equal to 3.25% for the first, second and third year and 4% for the fourth and fifth year.
Again in the previous issue at the end of February, the loyalty bonus was equal to 0.7% of the invested capital, against nominal coupons paid every three months.
In this fourth edition of BTP Valore, the loyalty bonus will be richer, equal to 0.8% of the invested capital, for those who purchase it during the placement days and hold it until maturity.
Thus the Mef, in presenting the new BTP Valore, now at the starting line which will be placed, as in the case of previous editions, on the MOT platform (the electronic market for bonds and government securities of the Italian Stock Exchange), through the two dealer banks Intesa Sanpaolo and UniCredit.
This special issue delivers the opportunity to invest in a highly successful instrument such as the BTP Valore, both to those who have not yet had the opportunity to subscribe to it in the previous placement, and to all the small savers and similar to whom it is dedicated.
The new state title will have a duration of six years, coupons paid every three months with pre-established and increasing returns over time based on a 3+3 year ‘step up’ mechanism.
The Isee case and the cruise title. But Meloni doesn’t stop
For this BTP Valore, the Mef has already communicated that the usual preferential taxation for all government bonds is expected at 12.5% on coupons and loyalty bonus, exemption from inheritance taxes, as well as – as provided for by the budget law for 2024 – exclusion from the ISEE calculation up to 50,000 euros, upon completion of the measure implementation process.
The exclusion from the ISEE calculation up to 50,000 euros was therefore confirmed, after the confusion that had been generated on the case, in particular on the occasion of the third edition of the BTP Valorefollowing the bombshell clarification from INPS to the measurement “state bonds outside the ISEE”, decided with the budget law of the Meloni government.
It should be remembered the controversy that also exploded over the campaign of comunication launched by the Italian government to promote the third edition of the BTP Valore, or also the first act of 2024, with the ‘headline for going on a cruise’ commercial which immediately triggered an avalanche of criticism against the very rationale of a government bond, conceived by the Meloni government to nationalize the Italian public debt.
Meanwhile, Prime Minister Meloni goes straight on her way, convinced that It is with this bond that Italians will be able to once again be masters of their destiny.
What is certain is that the enthusiasm with which BTP People welcomed the first edition launched in June 2023 the second edition of October 2023 and the third which ended with the record of the amount collected by the Mefhas convinced the Italian government even more to focus on this investment instrument, which continues to divide Italians regarding its value.
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For his part, Meloni doesn’t back down, quite the opposite, flaunting the success of this Italian state title, as he did from breaking latest news last Sunday 28 April, when he announced his candidacy in the European elections:
“The stock market has record numbers, the debt is returning to the hands of Italians and the trend of the job market is what makes me most proud.”
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Godrej Split: From making locks to aerospace business, this is what the journey of 127 year old Godrej has been like – godrej family split from locks to aerospace see 127 year old business empire
– 2024-05-05 06:03:20
2024-05-05 06:03:20
New Delhi: Godrej Family is one of the oldest and largest corporate houses in the country. This group has become a topic of discussion these days. Now this group is going to be divided. This 127 year old group spanning from locks to real estate will be divided. Adi Godrej and his brother Nadir Godrej will get full ownership of the five listed companies of Godrej Group – Godrej Consumer Products, Godrej Properties, Godrej Industries, Godrej Agrovet and Astec Lifesciences. Whereas Jamshed and his sister Smita will get complete control of unlisted companies and land bank. But do you know how Godrej Group started? The world famous Godrej Group started with manufacturing of locks. Earlier the locks available in India used to come from England. The springs of these locks often broke. To overcome this shortcoming, Godrej had launched its locks in the market. These locks were cheaper than the locks coming from England. This is how Godrej Group was started. Let us tell you about the 127 year journey of Godreg Group.Godrej Family Split: Godrej Group, one of the biggest corporate houses of the country, was divided, see who got what.
This is how Godrej started
Godrej Group was founded by Ardeshir Godrej. He was a lawyer by profession. He left law practice in the year 1897 and started the business of lock making. Earlier he had started a surgical instrument business which flopped. Ardeshir Godrej was a supporter of the freedom struggle. Inspired by the Swadeshi movement, he launched a soap named Chhavi in the year 1918. It is believed that this is the world’s first vegetable soap in which animal fat is not used.
entered the wardrobe business
Godrej Group started manufacturing wardrobe in the year 1923. At this time, there was a rise in theft cases in the country. Godrej also used to make lockers in cupboards. People liked the cupboard with locker and Godrej locker became a hit. In the year 1951, Godrej got the order to make ballot boxes for the elections to be held in the country. Godrej Group had made 17 lakh ballot boxes for this election. The company gradually started establishing its foothold in the refrigerator, real estate, agriculture, retail and space sectors.
This person running a ration shop did wonders! This is how a company worth billions was created using products made in the kitchen.
Associated with Chandrayaan-3 mission
Godrej Aerospace has a special connection with Chandrayaan-3 mission. Godrej Aerospace is the sole manufacturer of liquid engines for Space Launch Vehicles for ISRO. Apart from engines, the company also supplies complex thrusters for satellite applications. Along with this, the company also does complex assembling for cryogenic and semi-cryogenic engines for launch vehicles.
This is why division is happening
Adi Godrej was in favor of maintaining the status quo in the family but the new generation of the family wanted clarity regarding ownership rights. All family members have stakes in each other’s companies and have representation on the board. There are significant cross-holdings between family members and family trusts that need to be separated.
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Fed maintains interest rate; “lack of progress” towards inflation goal
Washington. The US Federal Reserve held interest rates steady on Wednesday and signaled that it remains leaning towards an eventual reduction in borrowing costs, but warned about recent disappointing inflation readings and suggested possible stagnation in the move towards higher balance in the economy.
The Federal Reserve’s latest policy statement, issued at the end of a two-day meeting, kept key elements of its economic assessment and guidance intact, noting that “inflation has declined” over the past year, and framing its interest rate debate around the conditions under which borrowing costs can be reduced.
“The (Federal Open Market Committee) does not expect it to be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” the Fed repeated in a statement approved unanimously. , in which he continued to indicate that the next movement in rates will be downward.
That still leaves the timing of any rate cut in question, and Fed officials stressed their concern that the first few months of 2024 have done little to generate the confidence they seek in lower inflation.
“In recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation target,” the Fed said in the statement, while in the previous one it had suggested an improvement in dynamics, stating that the risks to the economy “are moving toward a better balance.” The new statement hints that the process may have stalled with its assessment that risks “have moved toward a better balance over the past year.”
The official reference interest rate has remained in the current range of 5.25-5.50 percent since July. Rate cuts were anticipated as early as March of this year, but have been delayed as inflation data showed that the path to the 2 percent target had stalled. The personal consumption expenditures price index, the Fed’s preferred inflation indicator, rose 2.7% in March year-on-year.
“Inflation remains high,” the Fed statement said, repeating a phrase that many analysts believe will likely have to be eliminated before an initial rate cut.
Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. local time (6:30 p.m. GMT) to provide more details on the outcome of the monetary policy meeting and answer questions.
#Fed #maintains #interest #rate #lack #progress #inflation #goal
– 2024-05-05 04:25:00
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Fed maintains interest rate; “lack of progress” towards inflation goal