The recovery of activity in China restores confidence to the markets, this morning the protagonists of a collective rebound thanks also to the awakening of oil under the joint push of Putin and Trump who spoke on the phone about initiatives capable of stabilizing the oil market. Brent oil gains 3%. Eni goes up by 5,6%, Saipem +1%. Saras +13%. As a result of the fall in oil prices, refining margins rose again.
But, while we wait for Wall Street, the euphoria subsides. Piazza Affari slows enthusiasm around parity after the initial rally +3%. The other price lists are also holding back: Paris even goes into the red at 13 pm (-0,24), Frankfurt +0,78%. Paris and Madrid also shine, around +1,7%. London +0,81%.
Slight drop in BTPs to 1,45% from 1,47% yesterday evening on the day of the auction which saw the doubling (or even more) of yields compared to the end of February. The 5-year BTPs were assigned for 2,75 billion euros at a rate of 0,80%, against 0,37% a month ago. Two ten-year bonds were also placed for a total of 5 billion: the first at 1,48%, the second at 1,44%, with an increase of 48 basis points compared to the end of February. Finally, a 4-year bond was placed for 750 million at a rate of 0,66%
This morning in the Financial Times, the number one of the bailout fund, ESM, Klaus Regling, said that it takes between one and three years to set up the institution appointed to issue Eurobonds, therefore, wanting to proceed quickly in resource recovery, it is better to use the current mechanism. The general manager adds that the lending capacity is currently equal to 410 billion euros. Eurozone finance ministers will meet next Tuesday to agree on the use of common resources.
Inflation in the euro area slowed down in March, mainly due to the collapse in energy prices, +0,7% yoy comes after +1,2% in February. The euro fell to 1,097 against the dollar (-0,5%). Confindustria estimates a -6% drop in GDP in 2020 due to the impact of the restrictive measures introduced to counter the coronavirus epidemic. The Italian economy should recover again in 2021, the year in which the study center of the employers' association estimates a rebound of 3,5 percentage points.
In Piazza Affari the slowdown of the banks continues in the wake of the indications of the European banking authority. Intesa Sanpaolo has decided to suspend the distribution of the dividend for 2019, aligning with the requests of the ECB. The bank's board of directors thus canceled the cash distribution proposal to shareholders of approximately 3,4 billion euro, equal to 19,2 euro cents per share, on the agenda of the ordinary shareholders' meeting called for 27 April, and resolved to propose the allocation of the 2019 profit to reserves. The board of directors will call a meeting after October to implement the distribution of part of the reserves to shareholders by the end of 2020, "also in consideration of the support to the financial situation of households and disbursements from foundations.
Intesa fell -1,44%, after the decision of the board of directors; Unicredit -2%, Banco Bpm -1,44%. Goldman Sachs cuts the target price to 1,85 euros. Instead Ubi rises +1,3%. Among the issues connected to the coupons there is also the Ops match between Intesa and the "prey" Ubi. Mediobanca -0,2%.
in the rest of the list Exor takes flight +2% which announced the investment of 200 million dollars in VIA Transportation, a company that deals with the dynamic analysis of data to optimize intelligent mobility with the aim of changing the way people move in cities in the future.
Fiat Chrysler +1,8% will temporarily cut wages of its employees by 20% for the next three months in the face of the coronavirus crisis. But the cuts will in any case be repaid by 15 March 2021. They are expected to impact the majority of the automaker's workforce globally. Payroll interventions, according to a letter written by CEO Mike Manley obtained by CNBC, will begin tomorrow April 50st. The manager will also reduce 2020% of his salary for the next quarter, while the chairman John Elkann and the other directors of the board of directors of the group have decided to waive the compensation due for the next nine months, therefore until the end of XNUMX.
Retraces Cnh Industrial -0,3% from +3% of the opening: the company warned that the 2020 targets provided in February are no longer valid and announced the production stop of the plants in North America and South America. Interventions on dividends already announced are multiplying: Prysmian-4,28% has resolved to halve the dividend initially proposed to the shareholders' meeting. It goes from 0,78 euros to 0,50 euros.
Tod's +7% has decided, in light of the ongoing health emergency, to do not distribute any dividends. Saes Getters instead reduced the coupon to 0,50 euro, the same figure as last year (against the initial proposal of 0,78 euro).
