20 trillion dollars. Yesterday evening the capitalization of the Standard & Poor's index surpassed this peak, hitting yet another record of the incredible financial start of the Trump era. Apple's record was no less impressive: yesterday the Apple crossed the peak of 700 billion in value, driven by purchases on the iPhone but even more by the possibility that soon the company will be able to repatriate the 230 billion dollars with large discounts cash parked across the border. What is fueling the purchases is precisely the expectation of the tax reform promised by the US administration, or rather a cocktail of tax cuts accompanied by the main dish: a boost to exports financed by the greater burden on imports.
But Brussels doesn't agree: if this is Trump's reform, it is the threat from the EU, we will sue the United States for violating WTO rules. And a devastating trade war will start for everyone. The markets for now do not care. The US president, however, today faces another emergency: the resignation of security adviser Michael Flynn, forced out after evidence of his too close relations with Moscow. Flynn allegedly had an unauthorized interview with the ambassador to the United States.
APPLE ABOVE 700 BILLION, IN VIEW OF THE "INCREASED" IPHONE
New historic records for Wall Street: Dow Jones +0,7% to 20,412,16 points. S&P 500 and Nasdaq +0,52%. The absolute protagonist was Apple, present in all three indices. The title of the Apple marked a new high at 133,29 dollars (+0,9%). The purchases on the stock were triggered by the report by Simona Jankowsky of Goldman Sachs, which raised the target to 150 dollars. Apple, according to Goldman Sachs, is about to launch a new, revolutionary iPhone based on augmented reality on the occasion of the tenth anniversary of the first iPhone. Favorable judgments also from Morgan Stanley, Drexel and other investment houses: Apple's sales should have largely exceeded those of Samsung in 2016.
YELLEN AT THE CONGRESS TODAY. GOLDMAN AT THE HIGHEST FOR EIGHT YEARS
Not just Apple. Goldman Sachs climbs 1,6% to $246,6, less than a dollar off its eight-year high. Citigroup closes at +2,3%, driving the Financial sector (+1,1%). This is how the big banks celebrate the unexpected resignation of Daniel Tarullo, the Federal Reserve board member who led the application of the rules of the Dodd-Frank Act: the revision of the law is approaching.
This will be one of the hot topics in the testimony of Fed President Janet Yellen, today in Congress (tomorrow it's the turn of the Senate). In addition, of course, to the next rate choices by the Central Bank. Meanwhile, Trump's pressure on the board is growing: after Tarullo's departure, the vacancies on the board rise to three.
The dollar crushes the euro to 1,060, the high of the last month. Expectations of accelerating economic growth are pushing equities higher and bonds lower. The yield on the 10-year Treasury Bill rose to 2,44% from 2,40% on Friday night.
THE DOLLAR WEIGHTS ON THE OIL. TOSHIBA SINKS TOKYO
The rise of the US currency is holding back oil, with Brent at 55,6 dollars a barrel, down 2% (Wti -1,7%). The data show that the OPEC countries are respecting the agreements and are reducing production, as envisaged by the agreements signed in December. But in the meantime the production of US shale oil has grown.
Oil companies on the rise in Piazza Affari: Eni (+0,9%) yesterday sold 10% of the Shorouk field in Egyptian waters to BP (value 375 million dollars plus another 150 million for the investments already made). Saipem +2,6%.
Asian markets are affected this morning by China's inflation data, which has never been so high in the last two and a half years, but Flynn's resignation and the drop in crude oil are also weighing.
Toshiba's decision (-0,9%) to postpone the publication of the accounts after the collapse of the nuclear division weighs on Tokyo (-9,5%). Hong Kong -0,2%, Shanghai -0,1%, Seoul -0,2%.
Consumer prices in China rose 2,5% yoy in January, more than expected. Producer prices are at their highest levels in the last five years.
THE EUROZONE IS GROWING, ITALY LESS. TODAY'S GDP 2016
Brussels has conditionally discharged the Italian accounts, pending the inevitable correction to be made shortly. But it was the autumn economic forecasts that improved the climate. For the first time in ten years all the countries of the Eurozone are growing. For 2017, the EU indicates growth for Italy of 0,9% and 1,1% for 2018. For 2017 and 2018, these are the lowest levels of growth in the entire EU area. This morning the data relating to the Italian GDP and that of Germany for the fourth quarter of 2016 was published.
Meanwhile, yesterday was a day of robust increases for all European stock exchanges. In Milan, the Ftse Mib index appreciated by 1,07% to 19.065 points, up like Paris (+1,44%), Frankfurt (+1,06%) and Madrid (+1,29%). Further behind London (+0,22%).
The stocks with the greatest gains are those of the Mining-Commodities sector (European Stoxx +2,6%), reinvigorated by the leap in iron and copper prices. After a 4,3% rise on Friday, copper rose again yesterday by 0,6%, returning to levels it has not seen since May 2015.
HOLDING DOWN THE SPREAD, THE BTP30 AT 3,43%
The situation on the debt market is also improving. The yield differential between BTPs and Bunds on the 10-year segment stood at 189 basis points from 196 at the opening and a maximum of over 200 points before the auctions. The 2,23-year benchmark rate fell at the close to 2,29% from XNUMX% at the opening.
On the other hand, yields on new issues rose. The Treasury placed a total of 8,5 billion euro of government bonds with various maturities:
– the yield on 3-year BTPs rose to 0,25% from 0,06% in January;
– the 7-year yield rose to 1,59% from 1,15% in January;
– the 30-year yield rose to 3,43% (highest since October 2014), from 3,14% in November.
UBI AND BANCO BPM FLY, THE INSURANCE IN THE RALLY
Positive day in Piazza Affari for the banking sector, more than ever the mood barometer of the Italian market. The basket rose by 0,5%. Yesterday was the day of the rescue for the former Popolari. The banking sector, the barometer of the list, confirms that it is going through a positive phase: the basket rose by 1,05%.
At the head of the platoon Ubi Banca (+6,42%) on which Société Générale raised the target price to 3,7 euro from 3,3 euro (Buy judgment confirmed) and Banco Bpm (+6,64%) galvanized by quarterly accounts, published last Friday.
Unicredit +0,16%: UBS raised its target price from 13,2 to 13,8 euros, confirming the neutral recommendation.
The quarterly reports are also the basis of the UGF rally (+5,98%) on which Kepler Cheuvreux raised the target price from 4,01 to 4,1 euro (buy) and on Unipol Sai +4,68%: Banca Akros increased the target price to 1,9 from 1,8 euro, confirming the neutral recommendation after the 2016 results.
Remaining with the insurance companies, the wind of speculation on the possible moves of Intesa (+2,57%) blows again on Generali (+0,47%). Lively Mediobanca (+2,95%), whose destinies are intertwined with those of Generali which is expected to meet the board of directors tomorrow. Board members could consider restructuring Intesa Sanpaolo's 3% stake.
Utilities contrasted: Terna + 0,8%, Snam +0,9%, Enel -0,4% and A2A -0,7%. Telecom Italia advances by 0,5%. Mediaset +1,9%: Silvio Berlusconi reiterated that the family considers the company "absolutely non-transferable".
Fiat Chrysler rose by 2,2%: Icbpi confirmed the buy recommendation and the target price of 11,3 euros on the stock.
Among small-medium sized companies, Cementir gained 10% after the release of 2016 data.
Prada advances: +2,04% in Hong Kong after the accounts.
