With a blitz, Crédit Agricole has acquired 9,18% of the share capital of Banco Bpm. This was communicated yesterday evening by the Milanese bank, specifying that the operation "had not been previously agreed". Thus, the race to build Italy's third banking hub kicks off with a hostile French move.
Meanwhile, the bear effect of the Fed minutes has already faded. Or at least scaled down. The Wall Street indexes reacted to the messages from the Fed and to those, far more dramatic, from Treasury head Janet Yellen on the possible consequences of the war with closures in positive territory. The reasons? Perhaps the oil level, less tense than feared, or the recession-proof labor market data: new jobless claims fell to 166.000, from 171.000 the previous week, the lowest figure since 1967. Thanks given these numbers, the USA can openly challenge inflation, perhaps allowing itself the luxury of a short-lived recession, as Europe cannot do, hit by war. Certainly, as the author of a successful newsletter comments, "traders, after the experience of recent years, find it hard to think that the Fed can play against the rise".
In this context, Dow Jones (+0,25%) and S&P (+0,40%) closed in positive territory. Just above parity the Nasdaq.
The march of bond yields continues: the ten-year bond reaches 2,654, the highest for three years.
Warren Buffett took care of moving the lists: Berkshire Hathaway took over 11% of HP (+15%).
Wal Mart, the consumer giant, celebrated its tenth consecutive day of trading, with a new record.
Worth noting today was the first commercial trip of an Alphabet (formerly Google) drone in service between two California cities to deliver, among other products in the catalogue, ice cream and fresh food for pets. Walgreen and Texas Health, EasyJet and Ble Bell Creameries participate as partners in the ip start-up, Wing. Blessed is a land where drones deliver ice cream.
The ECB is also looking at rate hikes
"A large number of members felt that the current high level of inflation and its persistence required further immediate steps towards the normalization of monetary policy." Therefore the governors are ready to put a stop to the stimuli, but the uncertainty remains which has certainly worsened with the start of the Russian "special military operation" in Ukraine. Even the minutes of the last ECB meeting revealed the belief that the conditions for a rate hike with inflation at 7,5% are now satisfied. But in the end the proposal of the chief economist, Philip Lane prevailed: strictly yes, provided in the meantime new data do not signal a weakening of inflation which, unlike in the USA, depends almost exclusively on the surge in raw materials, as Fabio underlines panetta.
In short, nothing new, except for the confirmation that European monetary policy today has very limited room for manoeuvre. But the difficulties in enacting effective sanctions on the energy front confirm that the EU is unable, for now, to make a quantum leap in fiscal policy.
But the EU is still taking time on sanctions.
EU diplomats are ready to approve the Russian coal embargo, which will come into effect from mid-August, one month after the date originally planned, following pressure from Germany for a postponement. Gas and oil, which are the most important imports from Moscow, have not yet been affected by the sanctions. The European Commission had initially proposed a three-month transition period for existing contracts but at German request the deadline was extended by four months.
The ruble is on its way to highs
Meanwhile, Moscow continues to collect one billion euros a day for oil and gas sales. And the ruble, which had already plunged to 177 against the dollar, climbed back to 78, the highest since the day of the invasion. But that's not necessarily good news for Putin: Russian efforts to prop up the ruble in response to Western sanctions are draining resources from the war in Ukraine, according to US Deputy Treasury Secretary Wally Adeyemo. Adeyemo also reiterated that new sanctions will target the Russian defense industry to deprive it of materials and components.
Skyrocketing yields for Btp and Bund
The day of the bond markets ends in the red after the publication of the ECB minutes. In the end, the 2,39-year rate reached a yield of 0,70%, that on the German 2018-year rate was +170% on the record since the end of February 167. The spread flared up to XNUMX points before returning to XNUMX.
Yet Bundesbank number one Joachim Nagel last night spoke of "better times for savers", who will soon again be able to count on higher yields.
Stock exchanges in the red in the afternoon: Milan -0,59%.
The downward opening of Wall Street depressed the European stock markets, which, in the mid-afternoon, changed pace to finally close slightly down, aggravating the balance of losses on the eve.
Piazza Affari fell by 0,59%, to 24.302 basis points, despite Atlantia's new leap. Paris -0,57%, Frankfurt -0,51%, Amsterdam -0,44%, Madrid -0,16%.
Industrial production in Germany rose 0,2% month-on-month, following a downwardly revised 1,4% increase for January, the Federal Statistical Office said.
London (-0,53%) pays particular attention to Shell's alarm (-2,32%): Big Oil announced write-downs of up to 5 billion in the first quarter following its decision to leave Russia.
Atlantia, Benetton sends Perez's offer to sender
The Atlantia stock is still in the limelight on Piazza Affari, +6,87% in closing despite the Benettons' no to the advances of Florentino Perez, in his role as number one shareholder of Acs. The Real Madrid president admitted at the request of the Spanish Consob that he has an exclusive agreement with two investment funds, Gip and Brookfield, for the potential acquisition of a majority stake in Atlantia's motorway concession business. But, "at present, the consortium has not taken any decision regarding a possible offer for Atlantia", reads a note which does not clarify whether it has discussed the possible proposal with the Atlantia board of directors or with the Benetton family. However, the latter made it known that "Atlantia is and will remain a long-term strategic asset for the Benetton holding company, Edizione".
Read also - Atlantia between two takeover bids: the battle between Perez and the Benettons begins
Generali, risk of legal battles after the meeting
The Ponzano Veneto group was brought up by Claudio Costamagna, Generali's presidential candidate from the Caltagirone list. The banker said yesterday he was confident of the Benetton family's support at the meeting. In addition, the former investment banker spoke of the risk of litigation if one side wins with a margin of less than 6%. Philippe Donnet, for his part, questions whether the plan of the challengers can guarantee the dividend to the shareholders for a long time.
Telecom: no more Kkr, advances from Apax
Interest in Telecom Italia returns: +2,16%, to 0,312 euros. The assembly yesterday approved the budget (loss of 8,3 billion) and confirmed the general manager Pietro Labriola. The board of directors then unanimously resolved not to deem it appropriate, at this stage, to follow up on the due diligence request made by the Kkr. On the other hand, the private equity Apax Partners came forward, interested in some assets of ServCo (Consumer, Enteprise and TIM Brasil), one of the two companies into which the group will be divided on the basis of the 2022-2024 industrial plan drawn up by the CEO. d. Pietro Labriola and approved by the board of directors. Finally, the project for the single network was delivered to AgCom.
Tod's, in view of the Lvmh formula?
Tod's +2,52%. Diego Della Valle in a lecture at the Iulm underlined the "great advantages" recorded by the made in Italy thanks to the support of Lvmh (of which he is an adviser). “Bernard Arnault has respected and increased the value of the brands, maintained the production chains in Italy, involved the families and made financial strength available”. Reasoning that applies to Fendi, Bulgari, Loro Piana and, the analysts wondered, in the future Tod's itself, already 10% owned.
Saras, breakthrough in photovoltaics
Saras +5,9%. The market shows that it appreciates the mixed business model between sustainable refining and renewables. On 30 March, the Sardinia Region approved the single authorization in favor of Sardeolica Srl, a company operating in the renewable energy sector and wholly owned by Saras for the construction and operation of a 79 Mw photovoltaic plant.
