“The stimuli? A lot of badly distributed money,” he contests the Nobel Prize for Economics Joseph Stiglitz. And a confirmation comes from the Italian budget office: one in four of the Italian families that are part of the wealthiest 10% is receiving subsidies equal to the poorest 10%. Taurus, who doesn't care about fairness, takes note. Even this explains the charge of the stock markets, also favored by the purchases of the latecomers who hurry not to miss the last carriage of the rally that invests the stock markets from Milan +2% to the rest of Europe where Frankfurt stands out +2,35 % and Paris +2%.
OVER 100 BILLION RAIN ON THE NEW BTP
This morning, in fact, the hunt for the new ten-year BTP, announced only yesterday by the Treasury, which has adopted the formula of placement via syndicate, giving up the formula of the auction, is making news. The decennial it has already collected requests for over 100 billion, a new historic record for the Mef which brought down the initial spread from 15 to 9 points. An apt move, on the eve of the ECB meeting which will add new ammunition to Madame Lagarde's bazooka which has already contributed so much to extinguishing tensions over the Italian debt: the ECB bought 37 billion euros of Italian bonds in the March-May period, 4,7 .XNUMX percentage points higher than the expected share by country would suggest.
THE CAR LEADS THE RACE. FCA +3,1%
The good tone of the bond market on the eve of the ECB meeting combined with various other factors pushing up European stock markets, in line with the rally in China, South Korea and Japan, which returned to the level of February. The pan-European STOXX 600 index is up 1,14% around its three-month high, driven by gains in the insurance, auto manufacturing, banking, gas and oil sectors, supported by the rebound in crude oil back above $40.
Auto stocks, the cyclical sector par excellence, are picking up speed. Renault jumped 8,3% after completing negotiations for a 5 billion euro loan from the French state, and Goldman Sachs promoted the stock to “buy”. BMW also rallying +4,30% and Daimler +2,9% in anticipation of purchase incentives arriving from Germany. In Milan on Fiat Chrysler +3,1%. In the United States, the country from which the vast majority of the group's profits come, a good recovery is reported, compared to April: -16% year on year last month, from -47% in April.
Brembo +1,6% at 13pm. The Chinese association of automotive manufacturers expects sales to accelerate in May, +12%, from +4% in April. For the brake systems company, Asia Pacific is worth about a fifth of its turnover.
AXA RUNS, THE GENERALI-MEDIOBANCA COUPLE DOESN'T STOP
In Paris, AXA shines +6% but for now Generali has nothing to do with the French insurance company intends to cut the dividend to €0,73 per share, compared to the expected payment of 1,43 euros, to maintain liquidity during the coronavirus pandemic. AXA added that it could consider proposing an additional payment to shareholders in the fourth quarter, worth up to €0,70 per share, in case market conditions improve. Meanwhile, from Del Vecchio's front, it is specified that a possible merger of Leone +3,7% with the French group or with Zurich is not planned. Mediobanca meanwhile grinds a rise of 4%.
CHIPS ZERO LOSSES 2020, UTILITIES TRY
The list of stocks in positive territory is really long. Banks are on the rise, starting with the big ones: Unicredit +1,3%. Intesa Sanpaolo +1,65% .
Runs the technology: stm +5,9%. The US Microchip Technology has revised upwards its forecasts for the current quarter, both in terms of earnings per share and revenues.
It also advances Enel +3,5%. Enel Chile has confirmed plans to expand green activities. The utilities index could already return to positive ground today compared to January, confirming that, at least on the lists, the fear of contagion has returned.
