Markets are taking a breath, or rather, holding their breath, as they adjust their positions as Trump's latest decisions and exemptions on tariffs have fueled hopes that there may be room for negotiations. Asian stocks are rising, led by Japan, after Trump raised the possibility of a suspension of duties on cars. The next sectors to be hit by the tariffs will be the semiconductors and pharmaceuticals, for which the United States has officially opened investigations. In the meantime, the US-EU tariff negotiations. Commissioner Sefcovic brought Europe's offer to Washington to stem the customs war. In particular, he spoke to his American counterpart about the possibility of freezing the web tax, of planning more purchases of liquid gas in the US and of ensuring that Europe will not make agreements with China, turning into a bridge for goods from the Far East. Xi Jinping has suspended the export of some Rare lands, at the start of his tour in Southeast Asia
Uneasiness and underlying uncertainty remain after the reciprocal tariffs imposed by the president this month wiped $10.000 trillion from global stocks and triggered a sell-off in US Treasuries, too, amid growing fears of a recession. The Petroleum, while their remains just below the all-time high. Special surveillance is the dollar, whose role as a safe haven for the global financial system has been called into question by Trump's policies.
Wall Street closes higher for second consecutive session
The New York Stock Exchange posted a day of gains for the second consecutive session. The Dow Jones closed up 0,78%, the S&P-500 ended the day up 0,79% compared to the close of the previous trading session. Fractional gains for the Nasdaq 100 (+0,57%); along the same lines, moderately up the S&P 100 (+0,63%).
Yesterday Trump said he is evaluating possible temporary exemptions at the rates on motor vehicles imported components, to give auto companies more time to start manufacturing in the United States. “I’m looking at something to help the auto companies,” Trump told reporters in the Oval Office. “They’re switching to parts that were made in Canada and Mexico and other places, and they need a little bit of time, because they’re going to make them here.” The U.S. administration is also continuing its plan to impose tariffs on semiconductors and pharmaceuticals and the Department of Commerce has formally opened an investigation on the two sectors. The move, which surfaced late Tuesday in the Federal Register, is expected to preempt the imposition of tariffs. The new duties threaten to upend a chip industry that has surpassed $600 billion in global sales of semiconductors essential to everything from cars and airplanes to cell phones and consumer electronics.
In Asia, Tokyo and Seoul stock markets rise, automotive drives
Following Wall Street's second consecutive session of gains, Asia-Pacific is bullish.
Trump said he is evaluating possible exemptions temporary tariffs on motor vehicles and components to give companies more time to start production in the United States. The Tokyo stock exchange is rising with the Nikkei index at +1,3%. Automotive companies are standing out: Toyota +5%, Mazda +4,4%, Subaru +4%. The yen is little changed at 143,1 to the dollar. In the last few hours, some major Japanese companies, including Tepco Power Grid and Yamaha Motor, have put on hold the placement of planned yen bonds, due to the surge in volatility. Last week they had abandoned the plan to issue bonds, Suntory Holdings and Nippon Express Holdings.
The actions of some luxury goods manufacturers collapsed after sales of LVMH fell more than expected in the first quarter, weighed down by weak demand for luxury goods in China and the United States.
South Korean government supports businesses
The bag of Alone earns 1%. The government of the South Korea ha allocated another $4,9 billion for the domestic industry semiconductors in response to “growing uncertainty” over Donald Trump’s US tariffs. “An aggressive fiscal investment plan has been developed to Help local businesses to address growing challenges in the global semiconductor race,” the finance ministry said in a statement. Seoul is a major exporter to the U.S., and its key microchip and automotive industries would suffer greatly from the tycoon’s 25 percent tariffs. “To foster a dynamic, private-sector-led ecosystem for semiconductor innovation and growth, the government will increase its investment in the sector from 26.000 trillion won ($18,2 billion) to 33.000 trillion ($23,1 billion),” the ministry added. South Korea is home to the world’s largest memory chip maker, Samsung, and the world’s largest memory chip supplier, SK Hynix. The ministry admitted that “increasing uncertainty” following the tycoon’s tariff threats has prompted the powerful industry to clamor for government support.
China's Rare Earth Weapon
The bag of Hong Kong is slightly up. On parity the CSI 300 index of stock exchanges Shanghai and Shenzhen. President Xi Jinping has suspended exports of several critical materials, including some Rare lands, as he started his tour of Southeast Asia by visiting the Vietnam to then also go to Malaysia and Cambodia in an attempt to present itself as a better trading partner than the US under Trump. The threat on Rare lands It is one of the most feared weapons that could lead to the blocking of supplies, of essential components for the military, electronics, automotive, aerospace, but also semiconductor and a wide range of other consumer goods, not only to the United States but to the entire West. Beijing, reported the New York Times, is working to develop a new regulatory system that, once in place, could cut out some companies, including American military contractors. Zhongrong, the Chinese shadow bank that managed $108 billion is at risk of liquidation, according to sources Bloomberg.
European stock markets seen on parity. At Piazza Affari to watch Stellantis and Prysmian
European stock markets should open around parity: EuroStoxx50 index futures up 0,1%.
Monte Paschi Bank. Today the board of directors of Banco BPM will meet to discuss the strategy to be followed in the assembly that MPS will hold on Thursday 17th.
BPM desk. Credit Agricole has made official its strengthening to 19,8% of the institute's capital by converting its derivative positions into shares. This is what emerges from Consob updates in which the date of the operation is indicated as April 9th. On the same date, Deutsche Bank eliminated its share in the Piazza Meda bank from 5,18% as of February 19th.
Banca Popolare di SondrioThe Antitrust Authority has opened an investigation into BPER's offer for Sondrio, believing that the operation could significantly impede competition in the local markets of the provinces of Varese, Pavia and Como.
lvmh closed the first quarter of 2024 with revenues down 2% to 20,3 billion, about one billion euros less than consensus estimates. Sales of the 'Fashion & Leather' division, which alone accounts for half of the group's turnover, recorded a -5% decline on an annual basis, well below consensus expectations. The turnover of perfumes and cosmetics remained unchanged at 2,18 billion (-1% on an organic basis), similarly to that of 'selective retail', stable at 4,19 billion (-1% on an organic basis). The watches and jewelry division grew by 1% to 2,48 billion (but stable on an organic basis). In any case, all divisions underperformed compared to market expectations.
Campari. HSBC cuts target price to 7,9 euros.
FinecoBank. KBW cuts the target price to 19,28 euros.
Prysmian sold, through its subsidiary Draka Comteq, a 3,7% stake in Yangtze Optical Fibre and Cable (Yofc) to support the acquisition of Channell.
Stellantis could benefit from Trump's stand-by on car tariffs. The Court of Turin has declared admissible the class action filed against Stellantis by three consumer associations in the case of the defective Takata airbags. This was reported by Codacons and the car manufacturer itself.
Tenaris. Stifel cuts target price.
Team has signed with Mef and Retelit the 700 million euro agreement for the sale of Sparkle, which should be finalized by the end of the year. The agreement provides for a possible price adjustment, if certain objectives relating to Sparkle's 2025 Ebitda are not achieved
