(Bloomberg) -- Illycaffe Chief Executive Officer Cristina Scocchia says the company’s focus is on the polarized US, which it wants to make into a “second domestic market.” Scocchia took over at Illycaffe with a mandate to bring it to an initial public offering by 2026, likely in New York or Milan. The family-owned company has been valued at over €1 billion.

Earlier, Cassa Depositi e Prestiti Chief Executive Officer Dario Scannapieco said that the Italian state lender is pushing to play a role in developing the country’s telecoms infrastructure. Cassa Depositi has been involved in a joint bid for Telecom Italia’s landline network. 

UniCredit Chief Executive Officer Andrea Orcel said he’s open to a new term at the helm of the lender, if shareholders want him to stay. Orcel said at Bloomberg’s Italy Capital Markets Forum 2023 there could be a rapid slowdown in inflation ahead and for lenders, higher deposit costs could become a headwind. 

Finance Minister Giancarlo Giorgetti said that the country isn’t planning any new taxes on banking profits, and that it is struggling to spend EU recovery cash. Giorgetti said Italy is targeting 1.2%-1.4% growth in gross domestic product this year, with no current plans to expand deficit. 

Watch the webcast of the conference at LIVE

Key Developments

  • Prime Minister Meloni has five months to find a new Bank of Italy chief to replace Ignazio Visco. There’s currently no clear choice in sight, but if the past is any guide, a summer of speculation and intrigue will precede the announcement.
  • Meloni has yet to make a final decision on Italy’s controversial role in China’s Belt and Road program after signaling her intention to pull out. Italy exported over €16 billion of goods to China last year — could it face retaliation from Beijing if it pulls out?
  • Rome opted to grant a new term for only one of the top jobs at state-controlled firms, as it reshapes Italy’s business leadership. Notably, Meloni’s government proposed Flavio Cattaneo as new chief executive officer of utility Enel SpA, resolving a spat in the coalition.
  • Lender UniCredit in May raised its full-year profit target and said it will boost payouts, after a surge in lending fueled its best-ever first-quarter. Rival Intesa Sanpaolo SpA also raised its target after lending income lifted quarterly profit.

Timestamps are Milan, CET.

Illycaffe CEO Says Roaster Wants US to Be ‘Second Domestic Market’ (4:31 p.m.)

Chief Executive Officer Scocchia tells Bloomberg’s Chad Thomas the company’s focus is on the polarized US market. Scocchia took over at Illycaffe with a mandate to bring it to an initial public offering by 2026, likely in New York or Milan. “Never say never” on acquisitions, she said.

Ferrari CEO Says EV Plant Will Be Unveiled June 16 (4:12 p.m.)

CEO Benedetto Vigna tells the Bloomberg Forum that Ferrari’s new EV plant will open June 16. Ferrari has gained more than 35% this year, making it the best-performing stock among European auto manufacturers and moving it past its one-time parent Stellantis in terms of market value. 

State Lender Bid for Landline Grid Linked to Infrastructure Needs (3:59 p.m.)

CDP’s Scannapieco said that the Italian state lender wants to play a role in telecoms infrastructure development. The lender has been involved in a joint bid to buy Telecom Italia’s landline network. 

EU Needs Risk-Sharing Tools, State Lender Chief Says (3:42 p.m.)

The EU needs to develop risk-sharing tools, Cassa Depositi e Prestiti CEO Dario Scannapieco says. Scannapieco tells Bloomberg’s Alessandro Speciale that Italy’s holdings in the national economy do not dwarf those of other European countries, and that the key for the state is to have an economic strategy, regardless of the size of its stakes in companies. 

Orcel Says He’s Open to a New Term as UniCredit CEO (3:26 p.m.)

UniCredit CEO Orcel says focus is always heavy on M&A even when other issues are more relevant. Still, obstacles to M&A in the banking sector have been underestimated. The CEO mentions regulation in particular as a key hurdle to deals. The CEO also said he’s open to a new term. 

Expected Shock to EU Economy Hasn’t Arrived, UniCredit CEO Says (3:08 p.m.)

UniCredit’s Andrea Orcel says there could be a rapid slowdown in inflation ahead. For lenders, higher deposit costs could become a headwind. The CEO says he remains determined to bring the bank’s costs under control. 

State Should Intervene on Stellantis Only if Market Fails, Giorgetti Says (2:59 p.m.)

A market solution is always preferable for any issues involving carmaker Stellantis NV, Finance Minister Giorgetti says. 

Finance Minister Says No Extra Tax Coming on Bank Profits (2:54 p.m.)

Giorgetti says Italy isn’t planning to add additional tax on profits for the country’s lenders, responding to a question from Bloomberg Television’s Francine Lacqua. The minister adds he doesn’t see liquidity issues for the country’s lenders. UniCredit CEO Orcel speaks after Giorgetti. The minister also says the decision on Italy’s pact with China is “political, not economic.”

Italy Struggling to Spend Recovery Funds, Giorgetti Says (2:46 p.m.)

Italian Finance Minister Giancarlo Giorgetti says the country is struggling to spend EU recovery cash, but country has no plans on renouncing its share of NextGenerationEU funding. Speaking remotely to the Bloomberg Italy Capital Markets Forum 2023, Giorgetti says the country is targeting 1.2%-1.4% GDP growth this year, with no current plans to expand deficit. 

 

 

©2023 Bloomberg L.P.