The Big Apple has bewitched the markets. Yesterday the CEO of Apple, Tim Cook, announced that, thanks to a series of new investments and planned expenses with US suppliers and manufacturing groups (estimated at 55 billion dollars in 2018), the iPhone giant expects to give a direct contribution to the US economy "more than 350 billion dollars over the next five years".
THE APPLE WILL REPATRIATE 38 BILLION IN 2018
Cook revealed that the Cupertino-based company (“already the top US taxpayer today”) will bring 38 billion dollars back to the States this year following the tax reform wanted by Donald Trump. The CEO of Apple, which will create 20 new highly specialized (and well-paid) jobs, explains the decision thus, the most important in the history of the tax authorities (not only in the US): "Apple is a success story that could only happen in America… We strongly believe in American ingenuity and are focusing on areas where more jobs can be created”.
Even one of the companies most hostile to the president's philosophy is starting to collaborate in a formidable way with Trump's plans.
JAPAN AT THE HIGHEST SINCE 1991
The bullish wind blowing from Wall Street pushed the Asian markets, awaiting the publication of Chinese GDP data for 2017. The Japanese stock market, also favored by the rise of the dollar against the yen, is on the rise: Nikkei index +0,3%, on the highest since 1991.
China's stock markets are up. Hong Kong +0,2%, CSI 300 index +0,3%. Above all, the banks are highlighted, after the central statistics office in Beijing communicated comforting data on the real estate market: house prices rose last month in 57 out of 70 of the country's major cities.
The Taipei Stock Exchange is up by 0,8%, that of Seoul by 0,3%, that of Mumbai by 1%.
THE DOW JONES PITCHES 26 THOUSAND POINTS, INDUSTRY BOOM
New records for the US markets. Yesterday the Dow Jones index “broke” the wall of 26 points in closing: +1,25%, to 26.115,65. Also up were the S&P 500 (+0,94%) and the Nasdaq (+1,03%).
The dollar rebounds, appreciating against the main counterparts in Asia and against the euro it moved little at 1,220.
The data on industrial production was better than expected: in December growth was 0,9%, from -0,1% in November. The Federal Reserve's Beige Book has signaled that the economy is growing between “modest” and “moderate”. In the 12 districts there was a slight increase in wages, a novelty, compared to the 2017 editions.
YIELDS ON BOND, BOEING AND IBM SUPERSTAR FLY
The signs of a recovery in inflation have not gone unnoticed. The yield on the 10-year Treasury Bill dropped to 2,58%, a level not seen since March. The biennial rose to 2,04%, the highest since 2007.
Numerous ideas on the list: Boeing +4,7%, also driven by the joint venture with Adient, leader in the production of seats for aircraft.
In evidence Ibm (+2,9%): pending the accounts Barclays has raised its rating to overweight. Semiconductors also lead the rally: Intel +2,6%, Texas Instruments +2,7%.
GOLDMAN SACHS DISAPPOINTS, THUD OF FORD AND GE
There was no shortage of disappointments: Goldman Sachs -1,9%, also due to the initial financial charges linked to the tax reform, closed in the red for the first time since 2011. There was a sharp decline in revenues from bond trading. Bank of America was also down for the same reason (-0,2%).
Ford dives (-7%) after disappointing accounts. Another slide then for General Electric (-4,7%). CEO John Flannery spoke of the possibility of tearing society apart, almost anathema to those who have preached the word of integration in the last twenty years.
Brent oil is little moved, close to the threshold of 70 dollars, crude oil from the North Sea trades at 69,5 dollars a barrel. At Piazza Affari Saipem (-0,9%), Eni (-0,4%).
NEW BLOODBATH FOR BITCOIN
It doesn't stop the bitcoin landslide, on the day the first futures contracts signed in Chicago close. The cryptocurrency even slipped below the threshold of 10 dollars and then recovered to 10.900, with a drop of 48% compared to the maximum. Such meltdowns are nothing new: in 2011, Bitcoin had lost 93% in just five months.
EUROPE, ONLY BUSINESS PLACE IS NOT IN RED
The debate on the timing and methods of the Eurozone's exit from the ECB is heating up, on which, for now, the strength of the euro hangs. In this context, despite the increasingly hotter political climate, the Italian Stock Exchange closes, albeit slightly, on positive ground.
The Ftse Mib index closed the session close to parity at 23.514 (+0.08%). Sales in other European markets: Frankfurt -0,47%; Madrid -0,44%; Paris -0,36%; London -0,39%.
Uncertainty about the outcome of the next elections shouldn't weigh substantially on the Italian economy, which hasn't been going through such a favorable phase for some time; the important thing is that we do not step back from the recent structural reforms. This is the view of S&P less than two months after the political vote in the country.
S&P: ITALY FORWARD, BUT CONTINUITY IS NEEDED
During the press conference to present the 2018 outlook, the EMEA chief economist of the S&P rating agency Jean-Michel Six stated: "Since I've been an economist there have been elections in Italy, always uncertain... but the Italian economy has always continued to move forward, perhaps more slowly than in other countries, but it has continued”. The country manager of S&P Roberto Paciotti also spoke on the subject of the elections, explaining that "the key issue is to have continuity".
On the other hand, the spread between Italian and German ten-year bonds increased sharply: +3,25%, in the area of 150 basis points, with the yield of the Btp 10 at 1,99%. The tone of the debate a week before the ECB directorate marked the session.
In response to the solicitations of the hawks, the number two of the ECB Victor Constancio wanted to dwell on the strength of the euro which is not accompanied by the recovery of inflation. It is the lack of acceleration in consumer prices, declared the central banker, which makes it necessary for the central institution to continue with the expansionary monetary policy.
BANKS, NOTHING DONE IN MEETING WITH ECB SUPERVISION
Day of discussion between Italian bankers and Danièle Nouy, head of Supervision of the ECB, on the subject of non-performing loans. The result, at first sight, was disappointing: each remained on their positions in view of the formulation of the guidelines of the addendum scheduled for next March.
The outcome of the interim summit was obvious and did not affect the session: the basket of Italian banks closed at +0,46% better than the sector's Stoxx. The former Popolari are the exceptions, the most sensitive to the issue of non-performing loans: Bper leaves 1,95% on the ground, Banco Bpm -1,09%, Ubi -0,55%. On the other hand, the big names are on the rise: Unicredit +0,99%, ahead of Intesa (+0,46%). On Mediobanca (+0,31%). Morgan Stanley reiterated the Overweight recommendation by adjusting the target price to 11,50 euros from 11,40 euros.
The race for FinecoBank continues (+0,42%): Banca Imi confirmed the hold opinion, with a target price of 8,3 euros on the stock after the Italian Equity Roadshow of Borsa Italiana in London. Azimuth settles down (-0,3%).
Among the insurance companies, Generali rose in the afternoon (-0,82%) in closing. Mediobanca confirmed the Neutral rating, however pushing the target price to 17 euro from 16,0 euro identical to that set by Ubs, which has a more optimistic rating: Buy. Mediobanca instead strengthened its positive view on Unipol, bringing the target price to €4,90 from €4,88, confirming the Outperform recommendation. Since the beginning of the year, the stock has gained 11%.
MONCLER AT THE TOP, LEONARDO WAKES UP
Moncler best title on the main list with an increase of 3,14% to 26,24 euros, one step away from the recent historical record of 26,58 euros.
Leonardo gained 1,81% after SocGen improved its judgment to "buy" from "hold" with a 12-month target at 14 euros, stating that the discount compared to competitors will decrease as the market picks up confidence in the new management team. The group will approve and present the new industrial plan next January 30th.
Fiat Chrysler finished up 0,43%. According to Acea, the association of car manufacturers, for Europe 2017 closed with registrations up by 3,3%. Sales are up in all major markets except the UK. The FCA group sold 1.044.714 cars in 2017 in the Europe of the 28 plus EFTA, with an increase of 5,2% compared to 2016. The share rose from 6,6 to 6,7%.
In the utilities sector, A2A stood out (+1,35%): Banca Imi confirmed the add rating and the target price of 1,8 euro.
TELECOM ITALIA, THE JV WITH VIVENDI STARTS AGAIN
Telecom Italia (-1,63%). Yesterday the process for the creation of the joint venture with Canal Plus, Vivendi group, applying the procedure with related parties of greater significance, therefore in line with the indications of the board of statutory auditors and Consob.
Recordati lost 1,27% after Credit Suisse cut its rating to "underperform" from "neutral" with a stable target of 38,6 euros. Pirelli fell by 1,39%.
THREE STARS IN FLIGHT: TECHNOGYM, FILA AND IMA
Technogym (+3,6%) marks a new historical record at 9,60 euros. The company will be the official supplier of the PyeongChang Olympic Winter Games. This is the seventh Olympic experience for the group since Sydney 2000.
Fila (+2%) also closed at a new high of 20,85 euros. The stock is back from three consecutive upward years (+45% in 2017). Exane announced that it has started coverage of the stock with an Outperform purchase judgment and a target price of 23 euros. According to French analysts, the stock trades at a discount compared to its competitors on the 2018-2019 Ev/Ebit multiple.
Brilliant session for Ima (+2% at 72,65 euros). Banca Imi has announced that it has started hedging with an Add recommendation (accumulate) and a target price of 81 euros which offers a revaluation of around 10% on paper.
