“Over the last few months the words have changed many times. What we are now waiting for are the facts, mainly the budget law and the subsequent parliamentary discussion”. There lash by Mario Draghi leaves no room for doubts to the Italian executive: "We have seen that words have done some damage, rates have risen, for households and businesses" even if "all of this has not affected much other Eurozone countries, it remains a mainly Italian episode”.
Country where, says the EU commissioner for economic affairs Pierre Moscovici, "I see little Mussolinis”. Finally, in Montecitorio, the warning of Guenther Ottinger, European Commissioner for the Budget: "I don't think it is a good idea for Italy to increase the debt". In short, explicit support for the line of Economy Minister Giovanni Tria, mentioned by Draghi together with Prime Minister Conte and Foreign Minister Moavero.
NAVA SURRENDERS. DI MAIO: "END WITH THE SERVANTS OF FINANCE"
In Rome at the same time, after only five months, the experience of Maio Nava at Consob was forced by the two government partners to make a "gesture of institutional sensitivity", i.e. resignation for "incompatibility between the secondment from the technical offices of the European Commission and the leadership of a national Authority". Deputy Prime Minister Luigi Di Maio rejoices: “We will appoint a servant of the state and not of international finance. We will move on by ensuring Consob a chairman who can fully and freely exercise his role ”.
Just yesterday another case from the conflict school took place which opposes the logic of the markets to the claim to bend the economy to the will of politics. The Turkish Central Bank, defying Erdogan's wishes, yesterday raised rates from 17,75% to 24%. A move requested by the market to curb inflation but above all to demonstrate the institution's independence from the government, an essential ingredient for attracting investor confidence. A tug of war that promises to continue. Not only in Istanbul, because Turkish things will be seen above all in Rome.
The case of Italy, at least for now, doesn't disturb the markets too much, yesterday concentrated, as well as on the confirmation of ECB and Bank of England rates, on US inflation data, which rose less than expected.
SLOW GROWTH FOR CHINESE GDP. HEALTHY TOKYO
Favoring the rise in Asian price lists this morning is the more relaxed climate on the tariff front. Tokyo's Nikkei index gains 1% in the final session. The week ends with an increase of more than 3%. Hong Kong rose 0,8% from last Friday's closing prices, 1% over the week, thus rebounding from the lows rocked compared to January (-20%). The CSI 300 index of the Shanghai and Shenzhen stock markets is flat, the weekly balance negative (-1,2%).
Tonight, the Beijing statistics office released a series of macroeconomic data. In August, Chinese industrial production rose by 6,1%, in line with July and in line with expectations. Retail sales for the same month rose 9%, slightly more than expected. Capital investments slow down, which in the first eight months of 2018 mark an increase of 5,3%, from +5,5% in the first seven months: economists estimated +5,6%.
LESS INFLATION, WEAKER DOLLAR
The dollar is weakening against its most important counterparts, also due to the data on US inflation, which rose less than expected. This morning the euro is close to 1,170: the need for a tightening on rates is diminishing. The market also likes the decision of Congress which, on the initiative of the Republicans, made the tax cuts already adopted for this year permanent.
On positive ground Wall Street: the Dow Jones closed with an increase of 0,57%, S&P 500 +0,53%, Nasdaq +0,75%. The rebound of the technological stock is linked to the recovery of Apple (+2,4%) and the chip rally: Qualcomm rises by 4% on the announcement of a new buyback.
STABLE OIL, THUD OF SAIPEM
Oil prices stable this morning after yesterday's slowdown. Brent is trading at $78,26, down from Wednesday's highs when the $80 threshold was breached. During the week, however, crude oil from the North Sea rose by 1,8%, Wti by 1,3%.
Saipem fell sharply yesterday in Piazza Affari (-5%), the worst stock on the list, after the company announced the departure of its financial director Giulio Bozzini. SocGen strengthened its Buy rating by pushing the target price to 5,46 euros from 5,25 euros. Eni -0,2%.
FRANKFURT CONFIRMS: EU GROWTH SLOWS DOWN
The meetings of the ECB and the Bank of England did not hold any surprises. The ECB left interest rates unchanged. Mario Draghi reiterated his willingness to keep interest rates unchanged at least until next summer and his intention to proceed with the reinvestment of maturing securities. There will be no talk of increases until inflation, currently at 1,7%, approaches steadily levels below but close to 2% in the medium term.
Macroeconomic forecasts confirm the slight slowdown in growth. Eurozone GDP will grow at a rate of 2% in 2018, 1,8% in 2019 and 1,7% in 2020, while in June ECB experts had forecast growth of 2,1% in 2018 , by 1,9% in 2019 and by 1,7% in 2020.
PLAZA AFFAIRS BLACK JERSEY OF EUROPE
Piazza Affari is once again the black jersey in Europe: -0,56%, 20.846 points, at the end of the swing session. The other European markets closed in no particular order: Frankfurt +0,19%; Paris -0,08%; Madrid +0,24%; London -0,4%; Zurich +0,04%.
AT AUCTION BTP AT HIGHEST SINCE 2014
Draghi's resounding rebuke to the representatives of the Italian government had a modest impact on Spreads and 234-year BTPs: 2,78 basis points, XNUMX%.
In the morning, the Treasury placed a total of 7,75 billion euro of Btp, including the new 7-year benchmark, on an offer of between 6,25 and 7,75 billion BITX. 3-year and 30-year issues were also well absorbed, amounting to 2,5 billion and 1,5 billion respectively. But rates on all three stocks were at their highest since 2014.
WEAK BANKS. MALACALZA ADVANCES IN CARIGE
The banking sector was weak yesterday, with the Italian sector index leaving 0,09% on the ground, against +0,76% of the Stoxx of the banks: Intesa Sanpaolo -0,5%, Unicredit +0,6%, Ubi Bank -0,9%.
Uphill Carige +1,2%. Malacalza Investimenti announced that it has increased its shareholding bringing it to 27,55% and that it reserves the right to evaluate a further increase in the share, in any case remaining below the 30% threshold.
Apple's rebound had an immediate echo in Europe: Stm closed with an increase of 2,2%.
STM BOUNCES, FCA BRAKES. TODAY MARCHIONNE IS CELEBRATED
Weak session for Fiat Chrysler, down to 14,96 euros: the stock consolidates yesterday's +5%. The celebration of Sergio Marchionne will be held today at the Turin Cathedral, which will be repeated next week in Detroit.
The market is waiting for news on two fronts. The sale of Magneti Marelli is now considered imminent. The Kkr fund has obtained the exclusive right to deal on a basis of around 6 billion. The succession of Alfredo Altavilla to the top of the Emea region is also tight. The favorite is Pietro Gorlier from Turin, today at the helm of Marelli, Mopar and all the components (including Teksid and Comau).
MEDIASET PROMISES "SOMETHING BIG"
Mediaset rose slightly to 2,53 euros (-20% compared to 12 months ago). During the press conference to present the new Retequattro, Pier Silvio Berlusconi said that Mediaset "is working on something big and complex" as part of the pan-European aggregation project between general interest TVs. The French network TF 1 has already denied his interest.
CHIARA FERRAGNI MAKES GIGLIO GROUP FLY
The day was enlivened by the leap of Giglio group (+14,33%). The leap is explained by the agreement with Blonde Salad, the blog managed by Chiara Ferragni. The i Box di Giglio portal will manage the e-commerce linked to the explosive blogger, a true star of the web not only in Italy (each of his advice for purchases exceeds 500 followers).
Piatta Juventus (-0,53%) which closed the financial year ended 30 June 2018 with a loss of 19,2 million euros, which compares with the net profit of 42,6 million in 2016-2017.
