“I have an idea for you Europeans: let's cancel all duties and all subsidies and other constraints on free trade. Let's finally give life to a free market, equal for all. We are ready, but you don't want it." With this welcome tweet, Donald Trump is preparing to welcome Jean-Claude Juncker, today in Washington in an attempt to avoid tariffs on cars imported from Europe.
FROM TRUMP 12 BILLION FOR FARMERS AFFECTED BY DUTIES
But the liberal Trump has shot another arrow into the trade war. The president announced $12 billion in aid to farmers affected by the stop on imports by China and Europe, both in the form of cash aid or purchases of agricultural products to be stored in warehouses. An extreme solution, in the short term, but which protects Trump from the protests of his voters in view of the November elections.
The markets take note of the governments' moves without giving in to despondency. Trump's protectionism, together with the Chinese government's moves to support the economy hit by US pressure, are for now a shield from the worst consequences of the clash. Meanwhile, corporate accounts justify the high price levels.
In this climate, the markets are about to experience an intense day for Corporate Italy: while waiting for the FCA accounts, Stm and Saipem have already come out in numbers.
ASIAN PRICE LISTS UP SLIGHTLY
The Asian price lists have not moved much. Tokyo (+0,5%) and Hong Kong (+0,6%) rose, Shanghai unchanged, -0,15% the Korean Kospi.
The dollar is down: the euro traded this morning at 1,1688, the yen at 111,26.
Emerging currencies are in turmoil. Surprisingly, the Turkish central bank has not moved rates, despite the explicit invitation of President Erdogan. The South African rande instead showed a strong recovery (+1%): China announced investments of 14,7 billion dollars to support the country's economy.
OIL ON THE RISE: SAIPEM IN RED FOR CLEANING
Oil is on the rise: Brent +0,67%, to 73,92 dollars. Saipem announced its results for the half-year this morning: net loss of 323 million euros, net of write-downs and reorganization charges of 329 million, worsening compared to the loss of 110 million recorded in the first half of 2017. Despite this, the stock in The stock market rose by 2,6% this morning, achieving the best rise of Piazza Affari.
FLYWHEEL ALPHABET AND CATERPILLAR. GOOD HARLEY DAVIDSON
Trade worries didn't stop the S&P 500 index from setting a new record: +0,48%, to 2820 points. The Nasdaq remained unchanged (-0,01%) after hitting a new record during the meeting. Dow Jones +0,79%.
The day was marked by the run of Alphabet (+3,89%) which reached a new high at $1.275 after the sensational accounts. Facebook (+1,8%) and Amazon (+1,5%) are also advancing.
Stocks related to the agricultural world are also flying: John Deere +3,2%, Caterpillar +1,2%. Harley Davidson also rises (+7,7%): the damage from duties is proving to be less than expected.
RECORD DAY FOR EUROPE THANKS TO CARS AND BANKS
Quarterly boom, in America as in Europe. The recovery of the banking sector, under the impetus of the growing yield and the rally of the increase in the car on the eve of the trip to Washington of EU President Jean-Claude Juncker to avert the war on tariffs, which however has not yet curbed the push of the German economy. Many factors have contributed to a robust rebound in the markets of the Old Continent.
Futures on European stock exchanges anticipate a 0,3% downturn. In Milan, the index recorded a leap of 1,25% yesterday, on the wave of the strong increase in trade: the value was equal to 2,05 billion euros, with an increase of 13,71% on the previous day. Among the other lists, Frankfurt stands out, with an increase of 1,12%; London, +0,70%. Paris, advances by 1,04%.
6 BILLION BOTS COMING IN 6 MONTHS
Closing down for the Italian secondary, already focused on the ECB directorate scheduled for tomorrow. The spread in the session jumped up to 238 basis points, the highest since July 12th. The yield on Italian ten-year bonds also rose to 2,69% (from the previous 2,64%).
The Ministry of the Economy announced in the evening that 27 billion 6-month BOTs against 6 billion maturing will be offered at auction on 6,5 July. The details of next Monday's medium-long placements will be communicated today: Intesa Sanpaolo expects an issue of 9,25 billion euros, including the new 2028-year December 5, alongside the reopenings of XNUMX years and Ccteu.
SCUDERIA AGNELLI TO THE RESCUE. MANLEY'S DEBUT TODAY
In Piazza Affari there was the rebound of the Agnelli-Elkann galaxy, after the dramatic day on Monday, followed at thesudden change in leadership due to the worsening of Sergio Marchionne's health conditions. Strong recovery by Cnh (+3,78%), ahead of Exor (+1,53%). Ferrari's reaction was weaker (+0,39%), down on Wall Street. FCA +2,39% on the eve of today's quarterly report, the first test for the new CEO Mike Manley.
Psa shares fly to Paris (+11,8%): after just one year of Tavares management, Opel is profitable.
CHIPS FLY: STM'S REVENUES +18%.
Stm shines (+4,12%), supported by the rally of the Nasdaq and by the results arriving from the big technology companies in Europe (Stoxx index +0,79%). In Zurich, the semiconductor group Ams took the lion's share (+3,55%).
The data for the quarter were announced this morning, approved yesterday by the Board: net revenues amounted to 2,27 billion dollars (up 18,0% year on year), operating margin at 12,7%, net profit of 261 Millions of dollars. For the third quarter, net revenues are expected to increase by around 10,0%, gross margin around 40,0%.
DAY OF RECORDS FOR BANKS. FLY UNICREDIT
The banking sector was tonic throughout Europe with the Italian index rising by 2,91% and the European one by 2,30%. In great evidence Unicredit + 3,55% on the prospect of entry into the Euro Stoxx 50 basket of the top 50 companies in the euro area. The Bank still benefits from the EBA's decisions on the cashes affair.
Mediobanca (+2,93%) and Intesa Sanpaolo (+3,08%) also did well, in line with the good performance of the sector in Europe. In Zurich, UBS gained 4,32 after closing the second quarter with profits of 1,3 billion francs, up 9% and above market expectations.
BALZO DI CREVAL: CREDIT AGRICOLE ACQUIRES 5%
Credito Valtellinese flies off the main market (+13,24%), boosted by the bancassurance agreement with Crédit Agricole which will enter the share capital with a 5% stake (and an option up to 9,9%).
Banca Carige closed in parity which during the session had recovered more than 2% after the slide on Monday due to the rejection of the capital plan by the ECB.
TIM, REVENUES DOWN BY 2,7%
Positive closure for Tim (+0,30%). The accounts for the first half of the year report a profit of 618 million euro, up by 3,7% on a like-for-like basis. Revenues amounted to 9,5 billion, up 1,5% year on year. Comparable revenues on a like-for-like basis in the first half of 2018 are down by 2,7% compared to the first half of 2017. Group EBITDA is 4 billion euros, stable. Net debt fell by 167 million to 25,141 billion at the end of June compared to last December. The sale of the subsidiary Persidera continues.
DAY IN GRIGO FOR UTILITIES
Bad day for utilities, the defensive sector par excellence (-0.87%). The black shirt fell to A2A (-2,37%). Italgas (-1,13%) and Snam (-0,98%) are also bad. Enel -0,76% after the coupon of 0,132 euros detached on Monday. The wait for the six-monthly reports is rising: A2a, Snam and Italgas are called to the test of accounts next week.
BIG HIT IN SPAIN FOR AMPLIFON
Among the mid-cap companies, Amplifon stands out (+7,3%), at the top of the Star list after announcing that it has acquired the Gaes group for 528 million euros. Gaes is the largest private specialist operator in the hearing care retail sector in the world, with a leading position in Spain, the tenth largest market in the world.
Weak Inwit (-4,55%) and Sogefi (-4,29%) after the quarterly reports. The performance of Terni Energia (+8,35%) should be noted, which sold two company branches relating to energy efficiency to the Estra group. In Aim, Gamenet boomed (+18,18%) after the acquisition of 100% of GoldBet, a company authorized to collect games and bets in Italy.
