2.878 in favour, 6 abstentions, 1 against . But this too is a testimony of “China-style democracy, i.e. the starting date of the new Cold War between the superpowers, the beginning of the end of global finance. Donald Trump will hold a press conference this afternoon in which he will illustrate the consequences of the vote that marked the end of the diversity of the former British colony. London has announced that it will allow 300 residents of the former colony, those born before 1.997, to acquire British citizenship. The Hang Seng index may be excluded from major benchmarks for managers who are unable to invest in emerging markets. Under this sword of Damocles, the price lists lose much of the optimism triggered by the recovery of economic activities.
Meanwhile, today the governor of the Bank of Italy, Ignazio Visco, will hold the traditional Final Considerations, this year electronically due to the pandemic. Expectations are for an overall check-up of the country's economy in this first phase after the peak of the Covid-19 epidemic.
ASIAN PRICE LISTS WEAK, WALL STREET HOLDS DOWN
The Asian price lists, for now, are retreating slightly. Hong Kong's Hang Seng is down 0,7%, while the Shanghai Composite is on par. Tokyo's Nikkei fell by 0,3%, and Seoul's Kospi by 0,4%.
The yuan, the Chinese currency, is stable after yesterday's large gain against the dollar.
The consequences on Wall Street were heavier: the S&P500 closed down by 0,2%, the Dow Jones by 0,6%, the Nasdaq by 0,5%.
TRUMP CALLS FOR CENSORATION OF TWITTER
However, the squeeze on social media anticipated by Trump was also weighing on US price lists, furious at the treatment that was reserved for his tweets from Twitter, which added the term "to be verified" to the president's latest outings. The White House wants to review the legislation that guarantees immunity to social platform managers regarding what is written by users.
Facebook lost 1,6%, Twitter 4,4%.
The winds of crisis with China are holding back the recovery of commodities. Brent Oil was down 0,6% to $35,1.
BONOMI: 1 MILLION JOBS AT RISK, COLAO FOR EU FUNDS
Third day of rise for the euro-dollar, at 1,109, on the highs of the last two months. As a result of the plan approved by the EU. But the turnaround in Brussels, welcomed yesterday with enthusiasm by Piazza Affari, must now face the toughest tests. Meanwhile, according to the president of Confindustria Carlo Bonomi "between 700 thousand and one million jobs would be at risk" due to the coronavirus crisis. The government is once again evaluating the possibility of resorting to the 36 billion euro of the State-saving fund which is due to Italy. The task force led by Vittorio Colao will define the Italian reform and investment plan which, in all probability, will be ready in September.
REGINA BUSINESS PLACE, IN THE SIGN OF THE EU
Spreads in decline, Piazza Affari rampant to the point of eliminating the decreases accumulated since March under the weight of the pandemic. The announcements arriving from Brussels made themselves heard in Milan the following day, largely offsetting the effect of the negative news that continues to arrive from Istat. In May, the consumer confidence index dropped to its lowest since December 2013 at 94 points. The business confidence index is even worse, falling to the lowest level in the historical series, at 71. In short, the road remains uphill.
Piazza Affari lengthened its pace in the afternoon. The index gained 2,46% to 18.351 points.
THE GOVERNMENT BLIDA BUSINESS PLACE AND MTS
In the evening the government wanted to lock down Piazza Affari. In the evening, the Council of Ministers examined an implementing decree on special powers to defend strategic assets such as Borsa Italiana, which also includes the Italian government bond trading platform Mts. The company is now controlled by the London Stock Exchange (LSE), which is carrying out the 27 billion dollar merger with the American Refinitv (formerly Thomson Reuter) and could sell all or part of Borsa Italiana to obtain the green light from the authorities European antitrusts.
The European Commission will express its opinion on the LSE/Refinitiv merger on 22 June. Meanwhile Euronext, the main market company in the eurozone, has already expressed interest in acquiring Piazza Affari in the event of a sale. The Five Star Movement has already spoken out in favor of an intervention by the CDP to bring back control of a strategic asset to Italy.
Positive, under the impetus of the Recovery Fund, also the other price lists of the Old Continent. Pan-European Stoxx hits new 11-week highs. Progress was confirmed in Paris (+1,76%, despite profit taking on auto stocks), Frankfurt (+1,04%) and Madrid (+0,68%).
The rally extended beyond the euro zone: Zurich flies (+2,2%) on the wave of pharma (Novartis +2,7%), while London rises by 1,24%.
THE SPREAD AT MARCH LEVELS (186 PINTI)
The BTPs are well tuned, with yields and spreads on Bunds at their lowest since the end of March. The premium of the Italian ten-year rate over the German equivalent ends at 186 basis points, the lowest since March 27, after starting the session at 199.
The reference ten-year yield (April 2030) closed at 1,43% from 1,55% on the previous day.
BTP AT AUCTION TODAY: A DROP IN RATES EXPECTED
The auction of medium and long-term bonds is held today. At the disposal of investors there will be up to 7,5 billion Btp in five and ten years together with the Ccteu December 2023. A sharp drop in prices is likely. Yesterday on the secondary market the five-year July 2025 closed with a yield of 1,02%, to be compared with the 1,36% of the auction at the end of April on the June 2026 bond, but also with the 1,928% of the placement via union on 21 April last. The 2030-year August 1,55 was trading at a yield of 1,78%, from XNUMX% at the end of April.
NEVER (PIMCO): THE PLAN HELPS, BUT THE DEBT STAYS
The European Union's €750 billion recovery plan is no game changer, as the level of debt relief for countries like Italy will be marginal. This was stated by Nicola Mai, lead sovereign credit research analyst at Pimco in Europe. “This is a step in the right direction, which could allow the suburbs to inject more stimulus into economies from 2021 – said the analyst – but the reduction of the debt level will be marginal. And the uncertainty surrounding political approval remains significant."
BANKS LEAD THE RALLY: FLY MPS
The positive streak in Piazza Affari lengthens, up from five sessions in a row.
Strong increases for banks thanks also to the drop in the spread. Among the most popular titles, Mps and Popolare Sondrio, both + 6,1%; runs Bper (+4,02%). Mediobanca (+4,3%) and Unicredit (+3,53%) were also well received. Intesa limits the increase to 1,5%. Finecobank +5,80%.
NORSA AGAIN AT THE HELM OF FERRAGAMO: TITLE BOOM
Salvatore Ferragamo is also making a big splash (+13,6%) under the pressure of the return of a historic manager, Michele Norsa, in the role of executive vice president with the executive powers previously exercised by Ferruccio Ferragamo, who remains president. At the end of the month, the company will exit the main basket to the benefit of Inwit. Jefferies upgraded the stock to hold from underperform. Moncler also rises (+5,9%).
STM GETTING TAILORED TO MICRON
Among the industrialists, Pirelli shines (+8,8%). Stm +2,07% after the crash on the eve. The recovery was encouraged by the news from the United States, where Micron Technologies, a leading company in memories (DRAM and NAND), announced results that exceeded expectations due to the greater demand for components related to data-centres.
Also noteworthy is Prysmian (+1,19% to 19,2 euros), which acquired from Ailes Marines an order worth 80 million for the supply of inter-array submarine cable systems for the wind farm. Banca IMI confirmed the add rating, target of 18 euro.
MION: THE BENETTONS READY TO GO TO ATLANTIA
On the other hand, Atlantia closed in negative territory (-1,2%), always at the mercy of the news related to the possible revocation of the motorway concessions. Edizione, the Benetton family holding company, is willing to make room for new investors in Autostrade per l'Italia or even in the parent company Atlantia. This was stated by the president of Edizione, Gianni Mion, in a statement sent by e-mail by a spokesperson for the holding.
“We have always been open to dilution in the presence of credible partners with agreements for the implementation of development projects in the interests of companies and all stakeholders, shareholders included,” said the manager. “This is even more true for Autostrade per l'Italia and for Atlantia”.
DIASORIN, STOP THE DESCENT. OVS PROMOTED BY KEPLER
After the strong reversal of the last two sessions, Diasorin rebounds (+4,4%) in the wake of developments related to molecular and serological tests linked to Covid-19.
Utilities, such as Italgas (+2,2%) and Enel (+2,8%) are recovering. Among the oil companies, Saipem gains more than 5%.
Among Tip's subsidiaries, new increase by Ovs (+8,68%). Kepler Cheuvreux raised the target price from 1,2 to 1,3 euros, confirming the buy recommendation. Sesa (+4,31%) has drawn up a binding agreement for the acquisition of a majority stake in the capital of Analytics Network.
THE EU PLAN GIVES TESMEC WINGS
Tears Tesmec (+17,5%) in the aftermath of the launch of Next Generation EU, the aid package proposed by the European Commission which provides for an impulse to the use of trains for the transport of goods and people.
Alkemy (+6,99%), a company specializing in business consultancy, should be noted: Banca Imi reiterated the buy recommendation and the target price of 9,7 euros, after the 'Virtual Star Conference 2020', organized by Borsa Italiana.
