Full speed ahead. The extraordinary vitality of the digital revolution emerges from the quarterly reports of the Corporate USA, emerging from the pandemic stronger than ever. Meanwhile, President Joe Biden has played another joker: the American Families Plan, a series of investments worth 1.800 trillion dollars for education, health care, childhood, paid leave for work due to illness and family. In one hundred days, the White House mobilized 2.250 billion dollars for infrastructure (still to be approved) and 1.900 billion in generalized aid. Putting it all together comes to $6.000 trillion, about 30% of US GDP. The mix, technology plus abundant liquidity, is the fuel that will drive the engine of global recovery. Meanwhile, the Fed is watching like a good mechanic so that everything runs smoothly.
ASIA RISES, NASDAQ FUTURE RUNS
In Asia, Hong Kong's Hang Seng gained 0,7% this morning, as did Mumbai's Sensex: in India, new infections reached another record, at 379, but the stock market seems to be looking towards the ongoing economic recovery. CSI 300 of Shanghai and Shenzhen +0,2%. Tokyo is closed for holidays.
Nasdaq futures are up 1% in the aftermath of a retracement session, which closed with the S&P500 down 0,1%.
FACEBOOK +5% IN AFTER THE STOCK MARKET, 64 BILLION IN THE CASH
But the real news on the US markets were announced after the closure. Facebook achieved a 5% jump after the Stock Exchange thanks to the confirmation that social media, like Google (+2,9% yesterday), achieved a robust rise in advertising sales in the months of the pandemic: 26,17, 23,2 billion dollars in revenues, much more than the 9,5 billion expected. Net income doubled to $10 billion. Monthly unique users climbed 2,85% to 64 billion. At the end of the quarter, the company had $30 billion on hand: the buyback in progress is for $XNUMX billion.
APPLE STREAKS THE ESTIMATES. A 90 BILLION BUYBACK
It was then the turn of Apple, which tore up the estimates of analysts, although they have been revised upwards several times in recent days. Its revenues rose 54% to $89,6 billion, versus the consensus of $77 billion. The result can mostly be explained by the iPhone boom: +66%, to 47,9 billion dollars. But also increased sales of iMacs and everything that can be used for smart working. Net income more than doubled to $23,6 billion, well beyond expectations. Thanks to the good performance of business, the company has decided to increase its share buyback to 90 billion dollars, an immense figure, which alone should help keep the stock up in the coming months.
FED CONFIRMS MARKET BUYING
The Federal Reserve has confirmed all the measures prepared to counter the economy – zero interest rates and purchases of securities worth 120 billion dollars a month – and its intention to accompany the recovery with a decidedly accommodating monetary policy.
The WTI is up for the third consecutive day. Texas light oil is trading at $64 a barrel this morning. Brent at $67,52.
EUROPE CELEBRATES THE AGREEMENT WITH PFIZER
Europe, after the delivery of the Next Generation Eu national plans, this morning celebrates the agreement with Pfizer for the supply of vaccines which will make it possible to fill the gap accumulated due to the defaults of AstraZeneca (sued).
MILAN FLAT, THE BTP/BONOS GAP IS WIDENING
The European Stock Exchanges settled around parity, awaiting communications from the Federal Reserve. The situation on the bond markets is different: risk aversion takes the form of a strengthening of "core" Europe, starting with the Bund, at its highest level since February, one step away from the highs of the last twelve months at -0,22%. But the spread between Spanish BTPs and Bonos is also increasing, just to underline the conditional confidence with which the markets evaluate the Bel Paese grappling with the Recovery Fund. It is known, moreover, that the European Commission, in order to give the green light, has requested precise commitments both on the timing and on the legislative passages. The decree on simplifications is to be issued by May, in order to convert it into law by mid-July. The draft law on tax reform must be presented by the end of July.
DEUTSCHE BANK TAKES FLIGHT
In this context, Piazza Affari remains nailed to the levels of the previous day: -0,06%, at 24.459. In the rest of Europe, Frankfurt (+0,4%), Paris (+0,53%), Madrid (+0,47%) and London (+0,25%) are appreciated.
The most important data comes by Deutsche Bank (+10,86%). The main German institute recorded in the first three months of 2021 a net profit of 908 million, exceeding analysts' forecasts by 50%, against the red of 43 million in the same period last year.
DELIVERY HERO (+9,47%) DOUBLES PROFITS
Also in London the happiest notes come from the banking front (Lloyds Banking Group +3,5%). But advertising is also on the rise (WPP +3,60%) and home deliveries by Delivery Hero explode (+9,47%), which expects profits to more than double for 2021.
SANTANDER (+2,6%) IS SILENT ABOUT ORCEL
In Madrid, the Banco de Santander gains 2,70%. The CEO of Santander, Jose Antonio Alvarez, declined to comment on the lawsuit filed by the Italian banker Andrea Orcel against the institute for the withdrawal of the offer for the post of CEO.
Sanofi flies to Paris (+2,45%), which confirmed the forecast of a double-digit increase in profits for 2021 (+15% in the first quarter).
SPREAD AT 110, 6-MONTH BOT AT -0,481
Yields are up and the gap with German bonds. The BTP rises to 0,87%, on the highs of the last six months, from 0,86% yesterday. The spread went up to 110 points. For a few weeks now, the ten-year Italian has been suffering slightly compared to, for example, the Spanish Bono, perhaps because there is a fear that Draghi will encounter difficulties in implementing the PNRR.
Yesterday the Treasury auctioned 6,5 billion six-monthly BOTs, with a yield of -0,481, an increase of 5 cents compared to the previous month's auction. Demand was good, standing at 8,692 billion euros, with a supply-demand ratio of 1,4. The auction regulation falls on April 30th.
BANKITALIA AND CONSOB: SAVERS, STAY AWAY FROM BITCOIN
Consob and the Bank of Italy have drawn the attention of the community, and in particular of small savers, to the high risks connected with crypto-asset operations which can lead to the complete loss of the sums of money used. This is what we read in a joint note in which it is underlined that the recall "is appropriate pending the definition of a unitary regulatory framework in the European context".
The note also signals the risk of losses due to malfunctions, cyber attacks or loss of access credentials to electronic wallets. "These risks are now taking on greater significance in relation to the spread of forms of supply through the digital channel which facilitate the purchase of crypto-assets by a very large number of subjects", the note continues.
FLY MEDIASET: FRIDAY PEACE WITH VIVENDI
An air of peace is blowing between Mediaset (+8,37%) and Vivendi. Day to remember for the Biscione also in terms of volumes: more than 8 million, many more than the average of the last week (just over 1,5 million). And the success of the share also had repercussions on the Spanish subsidiary: the share in Madrid grew by 5,32%, to 4,906 euros. The signing of the agreement with the French could arrive on Friday, and they should remain in the Alfa Romeo for another five years. Furthermore, the results for 2020, better than expected, and the positive indications on advertising for the second quarter, seen as "double-digit" growth, gave life to the stock. JP Morgan recommends buying the stock.
SAIPEM SINKS, STOPPED IN MOZAMBIQUE
The negative note concerns Saipem which loses 5,06% after the results of the first quarter: revenues, equal to 1,618 billion euros, are down 25,5% on the same period last year and below the expectations of the Bloomberg consensus of 2,019 billion. Furthermore, the war in Mozambique forced the company to interrupt the project included in the order backlog as of March 31, 2021 for an amount of approximately 4 billion, of which approximately 1,4 billion for activities from April 2021 to the end of XNUMX.
Opposite scene for Tenaris (+3,36), pink jersey for the day. Eni, which will announce the accounts on Friday, +0,93%.
INTESA PREPARES MAXIMUM DEPOSIT ON PROFITS, POSTE ITALIANE SHINES
Even in Milan the most dynamic sector is the banking sector, in fibrillation for the now next turning point of the Recovery plan. Purchases in particular on Bpm (+2,75%), Bper (+2,24%) and Unicredit (+1,37%).
Agreement with San Paolo +0,50%. The assembly approved the 2020 budget, closed with a net profit of 3,27 billion, and the share to be distributed to shareholders, limited to 693,6 million due to the ceilings placed by the ECB on supervised supervision. The shareholders' vote also modifies the Articles of Association, thus making it possible to distribute interim dividends on future dividends, in line with previous top management forecasts to disburse a maxi-down payment on 2021 profits this fall. Provided that Frankfurt lifts the vetoes placed a year ago and reaffirmed in December.
The asset management sector also performed well after the publication of the robust Assogestioni collection data: above all, Poste Italiane gained 0,88%.
Generali +0,69% on the eve of the shareholders' meeting; Francesco Caltagirone has not deposited his package, which amounts to more than 5% of the capital.
Among the worst stocks are Pirelli (-2,93%), Stm (-2,29%) and Amplifon (-1,51%).
DO VALUE +4,1%, FOR EQUITA IS BUY
Worth noting is the leap in Piazza Affari for the doValue stock, which closed the session with a gain of 4,11%, rising to 10,64 euros. Equita sim confirmed the buy recommendation and the target price of 11,5 euros after the company announced that it had signed new servicing mandates for a total of two billion euros since the beginning of the year. On Aim, money on Reevo (+3,64%), which celebrated the agreement with Tiscali for the supply of Cloud, Hybrid Cloud and Cybersecurity services to business customers and Local Public Administrations.
