The economy goes. But the locomotive of growth, which runs at full capacity in Europe, loses a few pieces in the USA, as demonstrated by the decline in car sales. An understandable phenomenon, after seven years of uninterrupted growth of the market, but one that sets off an alarm bell in the light of the value that the car continues to have as an index of the propensity to consume. Also for this reason, attention is rising for the press release that the Fed will issue tonight at 20 pm at the end of the board meeting. It is obvious that rates will not rise, but the signals on the probable rise in June will be precious.
The Central Bank's indications are growing in importance because the needle of the White House's compass continues to move without a predictable logic amidst surprise statements often contradicted the next day. Yesterday Donald Trump's inevitable tweet threatened a "healthy blackout" of the federal budget in September, necessary to pass the measures (starting with the wall with Mexico) that Congress continues to refuse. Wall Street takes note of it, with a certain detachment: as long as the boat goes, the President's tweets do no harm.
APPLE: DIVIDENDS AND RECORD BUYBACKS, BUT HOLDING DOWN THE IPHONE
Reduced activity on Asian price lists. From today to the weekend, the Japanese price lists will be closed for the golden week. Hong Kong and South Korea are also closed for the celebration of the birth of Buddha. The Chinese markets were slow, with the rise in Taiwan of companies linked to the Apple production cycle.
However, Apple's accounts, released after the closure of Wall Street, partially disappointed the operators. The company has certainly been generous with its shareholders: as of yesterday, Apple is first in the world also for the dividend distributed to shareholders (13,3 billion dollars, against 12,8 billion for Exxon). The buyback also rises to 50 billion dollars. But iPhone sales dropped during the quarter: 50,76 million units (against 51.19 million in the same period last year), confirming that many "Apple addicts" have decided to wait for the model to be released in September, on the occasion of the tenth anniversary of the Apple cult product. The novelty slowed the rally of the stock (-1,84% after the stock exchange to 144,60 dollars) which in any case closed the day with a stock market value of 789,76 billion dollars.
In any case, technology (+0,3% for the sector) remains the main engine of growth these days. The Nasdaq (+0,06%) thus revised its record to 6.095,37 points. The Dow Jones rose 0,17%, the S&P 500 index rose 0,12%.
SETTLEMENT FOR OIL
Brent oil closed down 2% to $50,5 a barrel, down six-week lows. In Libya, the production of the largest oil field in the country has been reactivated. Furthermore, an important step was taken to stop the civil war: Prime Minister Fayez Al Serray and General Haftar met in Dubai last night. It seems that there will be a vote in 2018 and that the militias will be demobilized.
BP's accounts (+1,76%) supported European oil producers. Eni closed up 0,2%, Saipem - 0,2%, Tenaris +0,4%.
THUD OF THE US CAR, ITALY DOWN TOO. FCA -4,1%
The negative protagonist of the day was the auto sector, conditioned by the decline in sales on the US market. General Motors has lost 2,92%: the group has suffered a drop in sales of 5,8%. Ford drops 4,42% on sales down 7,2%. Fiat Chrysler fell 4,1% after posting a 7% drop in sales in the US in April.
After a long streak of increases, the Italian market is also slowing down. Yesterday evening, with the markets closed, the data for the peninsula were announced: for the first time in three years, the car market is showing a slight sign of slowing down. In April, 160.359 cars were registered, with a change of -4,62% compared to April 2016. FCA registered 46.900 cars, or 4% less than last year for a share of 29,2%, in growth of 0,1 percent. The other big European companies also fell (index for the sector -0,9%): Volkswagen lost 0,9%, Daimler fell by 0,9%.
INDUSTRY TURNS ON EUROPE, THE COST OF BREXIT RISES
European stocks closed higher on a day dominated by PMI indices, anticipation for the Fed meeting and trepidation for the second round of presidential elections in France. Meanwhile, sparks are flying between the European Union and London over the bill to be paid for Brexit. The EU request, urged by France and Germany, has risen to 100 billion euros, reports the Financial Times.
European stock futures are mixed before the open. In Milan, the Ftse Mib index closed up 0,6% at 20.733 points. The other markets of the Old Continent were also positive: Frankfurt recorded an increase of 0,56%, Paris of 0,7% and London of 0,64%. Best of all Madrid +0,98%. The Athens Stock Exchange is on the rise +3%.
WHITE SMOKE FOR GREECE. COMMISSIONERS IN ALITALIA
Greece has concluded an agreement in principle with its creditors on the review of the bailout plan which will pave the way for the arrival of new funds needed to meet debts due in July. The signing is scheduled for the Eurogroup on 22 May. By that date, the Greek government is also aiming for an agreement on debt relief.
The European PMI indices are effervescent, at their highest since April 2011. In Italy, the Purchase management Index relating to the purchasing intentions of company managers (not to be confused with SMEs, small-medium enterprises, as a tweet from Matteo Renzi did yesterday ) rose to 56,2 at its highest since March 2011.
In March, the unemployment rate in Italy rose again, due to a decrease in the inactive, to 11,7% (from 11,5%).
Yesterday evening the shareholders of Alitalia voted to initiate the bankruptcy process. Three commissioners have been appointed and 600 million euros are on the way from the state to ensure that the planes take off until the end of the summer, then we will see if a buyer arrives.
The Italian secondary closed modestly lower, in line with much of the Eurozone, a session with thin volumes. At the end of the day, the yield premium between ten-year BTPs and Bunds stood at 198 basis points from 196 on Friday. The 2,30-year rate rises to 2,28% from 2014%. Yields on Greek government bonds reached their lowest since the end of 6,1 with the XNUMX-year benchmark rate stopping at XNUMX%.
The mood of the market between now and the end of the week is destined to be influenced above all by the expectation for the outcome of the French presidential elections: in this context, the spread between France and Germany has dropped to 42 basis points from 45 on the eve.
ABERTIS IS WORTH AROUND 16 BILLION (11 CASH)
During the week, perhaps already today, the top management of Atlantia (+2,1%) and Abertis will meet to define the outline of the agreement between the two companies is expected very soon and in any case within the week, according to two sources familiar with the situation . According to market estimates, Atlantia would value Abertis at around 16 billion. Considering a portion of treasury shares held by the Spaniards excluded from the offer, he could have to pay around 11 billion in cash and offer paper for the rest.
Autogrill shines in the Benetton team (+1,8%).
BERNSTEIN CHOOSES UNICREDIT. GOLDMAN AT 5,1% IN AGREEMENT
In Piazza Affari the banks and in particular Unicredit rose, which gained 1,2% after Bernstein included it in his recommended portfolio.
Intesa, which on the contrary comes out of Bernstein's portfolio, marks a modest +0,1%. Goldman Sachs holds, through various funds, a 5,176% stake in the institute. Positive Banco Bpm (+0,3%) and Ubi (+2%) after the green light from the EU to purchase the good banks.
STM ON THE SCUDI, JUVENTUS ON THE STARS
Still on the shields Stm (-1,8%) always at the center of analysts' comments after last week's quarterly. Barclays and Equita Sim raised their respective target prices to 17,25 euro and 16,2 euro.
Telecom Italia closed up 1,7% on the eve of the board of directors on the accounts for the quarter. Tomorrow the assembly.
Enel is up (+1,3%) and the other utilities: A2A +1,6%, Snam +1%.
On the eve of the Champions League semi-final against Monaco, the fever for Juventus continues (+13,86%). Also Lazio (+4,91%) are in evidence after the victory in the derby against Roma (-5,56%).
