In view of the last quarter of a complicated year, Taurus wears a gala suit. All lists, with the exception of Japan, are in positive territory, starting with Europe. The deficit for September is reduced thanks also to the arrival of good news both from the USA, where negotiations on the new aid plan for families and businesses have resumed, and from China, which on the eve of the autumn holidays confirmed its support for income and businesses. The ideal climate to enjoy the show of the first confrontation between Joe Biden and Donald Trump scheduled for tonight.
MAXI DEAL IN TLC IN JAPAN
Tokyo's Nikkei is down 0,3% this morning. The market is busy digesting the turnaround in telecommunications. tonight Nippon Telegraph&Telephone announced that it intends to take 100% of the subsidiary NTT Docomo, Japan's first telephone company, a 38 billion dollar operation that was welcomed by the new prime minister Suga. The goal, according to Nikkei Asia, is to cut costs (and tariffs). Hong Kong was also down (-0,4%). The Korean Kospi is on the other hand (+0,7%).
SHANGHAI TOWARDS THE GOLDEN WEEK, AID TO SMEs
Shanghai rises (+0,5%), even if volumes are about 30% below average, as the Chinese market is preparing for a long holiday break: Thursday is the anniversary of the proclamation of the People's Republic. For the occasion, the Chinese travel again. There will be 600 million domestic tourists.
Reuters reports this morning that the next five-year plan will be based on lower economic growth forecasts than those for the 2016-2020 period. The People Bank of China released a statement tonight in which it confirmed its commitment to the manufacturing sector, especially medium and small companies: the aid will come through a lowering of the cost of credit and an improvement in access to loans.
FINANCE AND PLANES GIVE WALL STREET A PUSH. BOEING +6,4%
Positive session yesterday for US lists: Dow Jones +1,51%, S&P 500 +1,61%, Nasdaq +1,87%. The financial, energy and aviation sectors are in great evidence in the wake of aid arriving from Washington (+4,1%). Boeing climbs 6,4%: this next week there will be a test on the reliability of the Maxi 737.
THE NYT PUT TRUMP KO: IT PAYS NO TAXES, IT'S FULL OF DEBT
Attention is focused on the presidential match. On the eve of New York Times he dealt a blow below the belt to the president, revealing in a stunning report with first-hand sources that the president paid only $12 to the IRS over a 750-year period. But the most disturbing revelation is that Trump is burdened with 420 million in debt. Nancy Pelosi, Democratic Speaker of the House, said that a president who is up to his neck in debt and also exposed to foreign banks "is a problem for our national security" as he can be blackmailed.
Brent oil is down 0,3%, to 42,3 dollars a barrel, from +1,1% yesterday. Gold at 1.881 dollars an ounce, unchanged after +1% in the previous session.
EUROPE OK: NEVER SO GOOD SINCE JUNE
At the start of the week, the European stock exchanges put aside doubts and uncertainties, posting the most robust rise since the beginning of June. To favor the rebound also the words of Christine Lagarde: "The ECB is ready to intervene with new monetary stimulus", said the president during a hearing in the European Parliament, acknowledging that the economic recovery is "uncertain and incomplete, with companies wary of investments and consumers reluctant to buy" .
LAGARDE DEFENDS PEPP PURCHASES, EUROS AT THE LOWEST SINCE APRIL
During the speech, Lagarde defended the extraordinary securities purchase program, Pepp, defined as an "extremely effective" tool, which has no significant side effects. Lagarde also reiterated that the ECB is closely monitoring exchange rate movements. The euro trades at 1,164 against the dollar, +0,1%: last week it lost 1,7%, its worst week since April.
MILAN +2,47%, FRANKFURT LEADS THE RACE
The closure is in clear progress for Milan (+2,47%), which rises above 19 points (19.160). Same result as Madrid and Paris. Frankfurt is even better (+3,17%). Volkswagen has announced that between 2020 and 2024 it plans to invest around 15 billion euros in the electric mobility segment in China, the largest automotive market in the world, together with three local joint ventures.
BREXIT, TODAY WE START AGAIN IN VIEW OF THE OCTOBER SUMMIT
London +1,48%. "The positions of the United Kingdom are far from those deemed acceptable by the EU," said yesterday the vice president of the European Commission, Maros Sefcovic, after talks with Michael Gove, the British minister in charge of the divorce settlement. The Times reported progress on state aid. Today the rounds of official talks are starting again and the hope is to be able to achieve something tangible by the Council summit on 15/16 October. This too will have contributed to the positive tone of the markets.
THE BTP RISES ON THE EVE OF THE AUCTIONS
The BTP closed slightly in positive territory (0,83% from 0,84%) in anticipation of the medium-long term month-end auction scheduled for today. The Treasury is making available between 6,75 and 8,25 billion euros in three bonds, with yields expected to decline. The securities offered are the new 2031-year BTP benchmark April 0,9 (coupon 5%), the 2024-year at the third reopening and the CCTEU February XNUMX, at the thirteenth tranche.
At Monday's close, the 10-year Bund spread was 136 basis points from 137 on Friday. In general, government bonds in the Eurozone have seen rising yields.
ONLY ATLANTIA SUFFERS, ARM IRON ON THE PRICE
All the blue chips rose sharply, with the exception of Atlantia (-1,15%). The threat of revocation of the concession to Autostrade per l'Italia weighs heavily, which today will meet a Board of Directors to evaluate the response letter to be sent to the Government, which has given the company until Wednesday to provide indications on whether or not to continue with the path decided upon July for the exit of the Benettons. The Toto group presented an expression of interest for the 88% stake in ASPI.
ENERGY RUNS, SNAM/A2A AXIS ON HYDROGEN
The energetics awaken: Eni +2,5%, Saipem +6% and Tenaris +4%. Snam (+1,9%) and A2a (+3,4%) have signed an agreement on hydrogen.
Yesterday a maxi-marriage was announced in the US shale oil segment. Devon Energy (+5%) announced the merger with WPX Energy (+9%), an all-paper operation worth 12 billion dollars.
FCA AND PSA TOWARDS THE AGREEMENT WITH THE EU ANTISTRUST
Fiat Chrysler (+4%) and Psa Peugeot have made a series of concessions to allay the fears of the EU Antitrust on the merger project between the two groups which will give life to the fourth world car manufacturer. The French house is ready to grant Toyota a greater share of production capacity in the joint venture established by the two houses in minivans. Ferrari +1,48%, Brembo +3%. Industrialists are also up sharply. Flywheel Buzzi Unicem (+5,43%) and Cnh Industrial (+4,27%). Pirelli (+3,85%), Leonardo (+3,43%) and Stm (+2,79%) also advanced.
SUPERSTAR EUROPEAN BANKS, UNICREDIT GUIDE
But the real driving force behind the rally on the European stock exchanges was the banking sector, which reacted to the downpour of sales which had plunged the sector index to its lowest level since the end of the 5s. Deutsche Bank, Commerzbank and Bnp Paribas recorded gains of more than 5,45%. Unicredit (+XNUMX%) did the same, also in the wake of the plan to restructure the assets in Italy held together with Aviva.
TOWARDS THE SALE OF THE JV WITH AVIVA
The UK partner is considering a fractional sale of its Italian business, which could include two joint venture deals focused on life insurance and general insurance policies managed by a network of intermediaries. The 50-50% joint venture that Aviva and UniCredit will likely bring to market soon includes a premium portfolio of around €3bn and could be worth around €600m. Allianz, Unipol and possibly Generali could be interested, as well as private equity firms such as Cinven or Blackstone.
Bank Bpm +0,5%. Global banking authorities have said they are ready to offer new relief measures to banks, considering that the second wave of the pandemic and the extended period of remote working will strain their resilience. The Basel Committee on Banking Supervision said the outlook for global financial stability remains uncertain.
Mediobanca (+4%) and Intesa Sanpaolo (+2,89%) also performed well.
AMPLIFON, NEW MAXIMUM. BOUNCES AUTOGRILL
Amplifon flies (+6,14%) to a new all-time high after the signaling of Sonova and Danieli (+7,95%) after the company and Hebei Iron & Steel (HBIS), world leader in steel production, signed a trade and technology cooperation agreement. Autogrill rebounds (+5,18%).
WE BUILD IN RED. PANAMA ARBITRATION WEIGH
In the red Webuild (-5,52%), in the wake of the Panama Canal dispute. In fact, the company announced over the weekend that an arbitration award had been issued by the International Chamber of Commerce which requires the consortium of Gupc builders to repay up to a maximum of 210 million euros of the fees collected by the consortium from the Autoridad del Canal de Panama (Acp). Astaldi is also bad (-1,9%).
