Records, records, more records. Yesterday Wall Street was the scene of an exceptional day, in which several historic operations were carried out, for a total of 70 billion dollars: the purchase of Tiffany by Lvmh, the most important deal in the history of luxury; Charles Schwab's landing in Ameritrade, a $26 billion industry-changing BSA deal; but also the American blitz of Novartis (9 billion dollars) and the shopping of the Japanese Mitsubishi. A real boom, which continued this morning in Hong Kong with the Asian debut of Alibaba: +7% after the placement of securities for 11,1 billion dollars of the e-commerce giant.
CLOSER TO AGREEMENT BETWEEN CHINA AND THE USA: APPLE SUPERSTAR
In this context, the new historical records of the US stock exchanges are not surprising: Dow Jones +0,68% and S&P 500 +0,75%. Nasdaq +1,32% in the wake of Apple (+1,75%), pushed upwards by the echo of positive signals on the front of the negotiations between China and the USA. Tonight, Beijing's Commerce Ministry announced that high-level telephone talks were held between the two delegations during the day, thus fueling hopes of signing an agreement within the year. But the feeling is that already today, in the vicinity of Thanksgiving on Thursday, the Taurus can take a mini-vacation to catch his breath. That is, metaphorically speaking, how much room for growth remains for the year-end rally.
Tokyo's Nikkei is up 0,5%, Seoul's Kospi 0,7% and Sydney's S&P ASX 200 0,7% higher this morning. Flat stock markets in China and Hong Kong.
Risk appetite remains high. The Japanese yen, the preferred starting currency for carry trades, fell for the fifth consecutive day to 109. The Chinese yuan strengthened to 7,02.
ONLY UBER DOESN'T PARTY, SLOW GOLD
Only Uber (-1,52%) did not participate in the party: the company risks losing its license to operate in London.
The march of safe havens slows down. Fifth consecutive day of decline for gold, to 1.454 dollars.
The race for business puts pressure on the money markets. Yesterday, the New York Fed received requests for 49 billion dollars which the institution only half satisfied (25 billion).
THE MARKET ASKS FOR NEW CUTS, THE FED IS A NICHE
Meanwhile, the yield differential between two and ten-year Treasuries (just 13 points) confirms that the market is once again putting pressure on the Central Bank to cut rates. Tonight Jerome Powell, describing the situation in the United States said that the glass is not full but well over half: there is no intention, for the moment, to make commitments on rate cuts.
EUROPE ON THE RISE, BUT THE IFO OFFERS NO INSIGHTS
Yesterday was also a day of increases for Piazza Affari and the other European stock exchanges, in a climate of greater confidence in the China-US trade negotiations. The most important macro data of the day, the IFO index on the business climate in Germany, did not hold any surprises: in November, the indicator elaborated on the basis of interviews and surveys stands at 95 points, from 94,7 previously. The Ifo index on expectations improves to 92,1 from 91,6: the consensus expected 92,5. Nothing exciting, therefore, but the confirmation that the great descent of the euro economy is about to end, without encroaching on recession.
BETTER BUSINESS PLACE THAN PARIS, BITCOIN SUFFERS
The Milan Stock Exchange scores a rise of 0,84% to 23.454 points.
Paris limits the gain to 0,54% despite the positive response of the market to the deal of the century: the purchase by LVMH (+2%) of the control of Tiffany (+6,20%) for 16,2 billion dollars, in what is the largest transaction ever in the luxury sector. Equita analysts also see a positive effect on the accounts for Lvmh, with profits expected to rise by 5% in 2020.
Frankfurt (+0,61%) and Madrid (+0,68%) are also on positive ground.
At the top of the lists is London (+0,93%), which is starting the elections on 12 December with a forecast that seems solid, given the advantage of Boris Johnson in the polls.
Bitcoin is still on a roller coaster: -11% yesterday in trading in Europe to 7.250 dollars amid fears of a Chinese squeeze on the virtual currency.
SPREAD TO 150 POINTS WAITING FOR THE AUCTIONS
Positive session for bonds in anticipation of month-end auctions. The ten-year rate settled in the 1,15% area, after closing at 1,18% the previous session. At the close, the spread is 150 basis points from 155 on Friday.
Today the Treasury will make available up to 1,75 billion euros in Ctz and 500-750 million in Btpei. The most demanding appointment, the one with the medium-term auction, foresees the offer on Thursday of 5,75 billion in 5 and 10-year BTPs and in Ccteu.
TURKISH RAISE FOR UNICREDIT, TIFFANY GIVES MONCLER THE CHARGE
Prysmian stands at the top of the Piazza Affari list (+4,9%) after the connection Western Link has been taken over by the customer, the National Grid & Scottish Power. Taking delivery of the work makes it more likely that the 2019 debt target of 2,25 billion euros will be reached.
Positive banks in Unicredit's wake (+2,9%), after the institute confirmed negotiations with the Turkish partner Koç Group for a reorganization of its stake in Yapi Kredi. A possible total or partial sale of the stake could lead to a release of capital of up to 70-80 basis points of the equity solidity ratio, with a maximum dilution on 2020 profits of 6%.
In view of the business plan (scheduled for December 3) Credit Suisse has revised its rating upwards from "neutral" to "outperform" with a target of 14,6 euros from 11,3 euros.
Effervescent luxury after the Tiffany operation which could trigger a series of mergers. Moncler leaps by 2,4%, Ferragamo rises by around 1,3%.
FCA: 90% OF INVESTMENTS IN ITALY TO BE STARTED
Fiat Chrysler is making progress (+1,75%, to 13,60 euros), which has already started 90% of the investments planned for Italy, said the Chief Operating Officer for the EMEA region Pietro Gorlier. The plan aims to help the group launch its first electric and hybrid models and achieve full capacity utilization at Italian plants.
Tim takes a break (-0,05%) interrupting the streak of increases. JP Morgan raised the target price on ordinary shares to 0,71 euro from 0,67 euro, with the overweight rating confirmed.
AUTOSDRADE: ATLANTIA TREMS, GAVIO GROUP IN TILT
At the bottom of the list is Atlantia (-1,3%). Autostrade per l'Italia's concession must be revoked and national monitoring of the Italian motorway network must be launched, said Foreign Minister Luigi Di Maio in a post on Facebook. The ASPI Board of Directors, in its first meeting under the presidency of Giuliano Mari, formalizes the appointment of the new CEO Roberto Tommasi.
Astm (-2,6%) and Sias (-1,6%) also fell sharply yesterday after the collapse of a viaduct on the A6 motorway near Savona. The stop of the judiciary to traffic on the A26 Lets predict another tough day for dealers.
