Will it go better this time or will the increase in US rates cause negative reactions like those of last December? The answer, just to celebrate the news of the day, is indeed "blowin' in the wind", as he taught us Nobel laureate Bob Dylan. Janet Yellen, who will speak to the US economists' conference tonight, has used every precaution to avoid too harsh an impact on the markets. But the disappointing data on the Chinese trade balance was enough to reawaken Wall Street's fears. The alarm then partially subsided. Who knows, perhaps, as the poet sings, “the times they are a changing”. But for now, risk aversion is the same that forced the Fed to reverse rapidly, giving up further hikes given the fragility of the recovery.
SOFTBANK-ARABIA TOGETHER FOR A 100 BILLION FUND
However, the markets are about to end the week on a note of caution. Weak Chinese Stock Exchanges: Shanghai -.5%, Shenzhen -0,8%. But today a positive note emerges from the macro data: the wholesale price index is once again on the rise after 54 consecutive months of declines. On the corporate front, the leap of SinoChem (+10%) on the wave of rumors about the forthcoming merger with ChemChina (number one shareholder of Pirelli) should be noted
Tokyo +0,2%, followed by Softbank (+3,2%), which yesterday announced the launch of a fund for tech stocks of 100 billion dollars: the most important investor is the sovereign wealth fund of Arabia Arabian.
The financial market of Thailand reacts with an appreciation of the currency and a rally in the stock market to the news of the death of King Bhumibol Adulyadej. The benchmark index of the Bangkok Stock Exchange rose by 4%.
TODAY THE ACCOUNTS OF JP MORGAN AND CITIGROUP
Final recovery for the US markets, which slipped in the middle of the session to the levels of last July, thanks to the recovery in oil prices. The Dow Jones limited the downside to 0,09%, S&P 500 -0,12%. The Nasdaq lost 0,3%.
Today the quarterly campaign gets into full swing with the accounts of JP Morgan, Citigroup and Wells Fargo (-1,26% yesterday, after the resignation of CEO John Stumpf, protagonist of the fake accounts scandal).
Verizon intends to renegotiate the purchase of Yahoo's assets (-1,8%) for 4,6 billion approved last summer. The decision comes after the announcement made at the end of September by the Internet company of a hacker attack - which took place at the end of 2014 - to the detriment of at least 500 million users.
HOLDS OIL. ANDURAND: WILL RISE TO $60
Supporting Wall Street was the performance of oil, despite the increase in US inventories. The WTI gained 26 cents, to 50,44 dollars a barrel, Brent stable at 51,79. Pierre Andurand, the most important hedge manager on the oil market, said he is certain that prices are bound to rise to $60 and above. In 2015, the financier, who constantly analyzes the performance of 10 wells, was among the first to bet on the collapse of prices.
Worst blue-chip Chevron, down 1,3%. Weak in Piazza Affari Eni (-0,6%). The Kazakh energy minister said the start of production at the Kashagan field is proceeding according to schedule and a limited amount of crude oil has already been processed and stored. This is 90 barrels per day, which will rise to 170 in November. The six-legged dog, which holds 16,6% of the field, expects production to rise to 370 barrels in 2017. Saipem -1,6%, Tenaris -0,2%. Kepler Cheuvreux increased the target price on the share from 9 to 9,7 euros.
BUSINESS PLACE DOWN 1,2%. APPS SINK THE TOM TOM
Futures on European stock exchanges anticipate a start up by 0,5%. In Milan, the Ftse Mib index closed the last session with a -1,22%, at 16.269 points. Down also Paris (-1,06%) and the other places: Frankfurt -1,04%, Madrid -0,9% and London -0,66%.
Tom Tom's star sets on the Amsterdam Stock Exchange (-7,9%). The Dutch satellite navigation company cut its revenue estimates from €1,05 billion to €980 million, as there was a sharp drop in sales. The Dutch bank NIBC has found that the increase in the average price has only partially compensated for the decline in volumes: the competition from the apps that can be downloaded on smartphones is too strong. Since the beginning of the year, the stock has lost 32%.
QATAR LOSES 1,2 BILLION ON DEUTSCHE BANK. BUT IT'S BUYER
Another difficult day for Deutsche Bank (-2,9): the agreement with the US authorities on the 14 billion dollar fine still seems far away. Qatari investors who hold the largest stake in the institution are considering buying more shares if the German bank decides to raise new capital. Reuters writes it, citing sources close to Qatar's investment policy.
Funds controlled by former Qatari prime minister Sheikh Hamad bin Jassim al-Thani bought 6,1% of Deutsche Bank in mid-2014 and subsequently increased the stake to just under 10%, options included, to July of this year. In light of the recent drop in the stock, Qatari funds have lost over $1,2 billion on paper. The intention is to stay just under 10%, one of the sources said. In Germany, anyone who owns more than 10% in a listed company is subject to stricter transparency obligations.
BTP ITALIA COUPON TODAY: 0,35-040%
Mixed session for the debt market, but the BTPs were supported by the good response to yesterday's auctions. The 1,37-year rate closed at 1,875%. This morning 3 billion BTPs at 7, 15 and 8,5 years will be offered for the reopening, placed yesterday for the maximum amount envisaged of XNUMX billion, with a slightly rising yield.
The Treasury will communicate today the amount of the guaranteed minimum real coupon for the new 8-year BTP Italia, on offer between Monday and Thursday next week. The yield should be between 0,35% and 0,40%.
FLY FINECO, UNICREDIT BRAKES. MOODY'S AWARDS BPM-BANCO POPOLARE
Stormy day for the banking sector. The Italian index dropped 2,74%, but positive notes were not lacking. Finecobank was the best stock on the main list with an increase of 5,58%, to 5,06 euro, after the placement of 20% at 4,55 euro by Unicredit (-3,64%). The stock, promoted to "buy" by Banca Akros and Equita, is particularly well served by the one-year lock-up commitment on the remaining 35% taken by the parent bank.
Rise of similar proportions for Banca Generali (+5,67%), in recent days considered a potential buyer for Fineco.
On the eve of the d-Day of the merger meetings, sales rained on Banco Popolare (-4,69%) and Banca Popolare Milano (-4,61%). After the strong gains of the previous days, the operators have taken a more cautious position in anticipation of the meeting of the institute's members in Piazza Meda: enrollments have exceeded 12 units.
The merger between Bpm and Banco Popolare is positive and if it doesn't go through, with the shareholders voting against at Saturday's meetings, it would be "a missed opportunity". This was stated by Edoardo Calandro, assistant vice-president and banking analyst of Moody's, during a meeting in Milan. "We see the merger as positive and for this reason we have put the ratings of the banks under 'review' for an 'upgrade'". Furthermore, added the analyst, regardless of the merger "the two banks are also solving some problems that kept the rating low".
Weak insurance companies: Generali lost 2,86%, Unipol 4,12% and UnipolSai 4,41%.
CHINA SCARES THE CAR. EDISON'S OPA ON ALERION
The signs of an economic slowdown in China have triggered an alarm signal for the Automotive sector: Fiat Chrysler -3,4%, Brembo -1,7%. Ferrari is also slowing down (-0,6%): Mediobanca Securities has raised its target price to 6,5 from 6 dollars. CNH is down 2,7%. JP Morgan confirmed its underweight rating on the stock in view of the quarterly results, bringing the target price to 6,5 from 6 dollars.
Mediaset closes at +0,15%, at 2,606 euros, after having touched a low for the day at 2,502 euros. The stock accelerated on the back of press rumors according to which Vivendi is preparing a new plan to resolve the dispute over Premium, which foresees the involvement of Telecom (-0,93%).
Fireworks over Alerion (+21,91%). Edison yesterday launched a counter-takeover bid at 2,46 euros per share with the aim of becoming the number two in the sector in Italy, behind only Erg Renew, but surpassing its direct competitor Enel Green Power. Alerion is already subject to a partial takeover bid (on 29,9 percent of the capital) by a Bolzano operator, the Fri-el Green Power group. Compared to the previous offer, Edison pays 29,5% more.
