They made a desert and called it peace. Tacitus' famous saying fits perfectly with Donald Trump's management of the Syrian crisis, who yesterday lifted the sanctions already inflicted on Turkey for having taken advantage of the withdrawal of US troops to settle accounts with the Kurds. Seen from Wall Street, the president's action has removed an annoying obstacle to the advance of the Bull. Oil, slightly down this morning, nevertheless climbed back beyond the 60 dollar barrier (60,81 for Brent) as welcomed by Saudi Arabia and Russia.
ELECTRIC CAR BOOM (+17%)
In the meantime, the markets are trying to interpret the conflicting data coming from the corporate financial statements. The most disturbing note comes from the accounts of Texas Instruments (-7,5%), which has dragged down the chip sector, the most faithful thermometer of the economy in the digital age. But the markets welcomed without drama the declining quarterly earnings of Boeing and Caterpillar, champions of the old economy. Optimism was then impressed by Tesla's boom (+17%) after the surprise increase in deliveries and Microsoft's accounts (+0,70% afterwards thanks to the brilliant results of the quarter). The positive indications of corporate America have brought good humor to Asian stock exchanges and promise increases also for the Old Continent on the day of Draghi's "last dance":
TOKYO RISES DESPITE SOFTBANK BLESSING
The stock exchanges of Tokyo and Hong Kong are up this morning, supported by the positive indications arrived in the last few hours from the large companies of the United States. Nikkei +0,6%, Hang Seng +0,5%. The CSI 300 of the Shanghai and Shenzhen lists (-0,3%) and the Kospi of Seoul (-0,2%) decreased slightly. Stock markets in Australia, Taiwan and Indonesia rose.
In the Japanese index, Softbank loses 3% after WeWork accepts its $5 billion bailout offer: the founder, and former CEO of the management company of common workspaces, Adam Neuman, exits the scene: it seems with a severance pay equivalent to $1,7 billion. The effects of the crisis that severely hit the Vision fund promoted by Softbank are destined to weigh on tech prices in Asia.
Closing up for US stocks: Dow Jones +0,17%, S&P 500 +0,28%, Nasdaq +0,19%.
APPLE TOWARDS STREAMING DEBUT, PAYPAL FLIES
Good Apple (+1,3%): analysts are optimistic about Apple's debut in streaming in competition with Netflix. Facebook also rises: yesterday Mark Zuckerberg defended his virtual currency, Lybra, in Congress claiming that it is an anti-China weapon.
With the markets closed, the fireworks arrived with Tesla earning 143 million dollars in the quarter, equal to 80 cents per share: a completely unexpected figure, given that the consensus was expecting a heavy loss. The electric sports car maker said its major development projects, including new models, were ahead of development time. The stock gained 20%.
After the stock exchange, other big names on the US Stock Exchange also presented the quarterly data. Microsoft earned $10,7 billion on revenues of $33,1 billion, both items higher than a year ago and exceeding expectations. However, the new cloud initiatives are not doing very well, in fact the stock has moved downwards.
The data for the quarter from PayPal are completely convincing, which gained almost 10% after the stock market.
The euro moved little this morning, traded at 1,137 on the day of its savior Mario Draghi's departure from the ECB scene.
THE BLACK JERSEY AT PIAZZA AFFARI, FRANKFURT GOOD
On the eve of the relay in Frankfurt, Piazza Affari slipped to the bottom of the Euroland Stock Exchange platoon. By contrast, the brightest was the Frankfurt Stock Exchange. Probably just a case but which serves to describe the different moods of the markets on the eve of a historic relay after eight years of government of "super Mario" defined as "Draghila" by the German tabloids who accuse him of having sucked the blood of savers . However, today's directorate will not be limited to a greeting to the outgoing president. Even if no communications on rates are expected, the meeting will serve to take stock of the state of the Euroland economy in the light of the economic slowdown and the start of the next Qe.
Meanwhile, the union of employees of the ECB has put to the vote, with a poll, Draghi's management judged "very good" by 54,5% of Eurotower employees. But the majority of respondents complained of a lack of transparency in hiring and what is perceived as a "widespread favoritism".
TODAY THE ANNOUNCEMENT ON SCANDINAVIAN BANKS RATES
Not just BCE. Monetary policy announcements from the central banks of Sweden, Norway, Turkey and Ukraine are coming today.
Milan lost 0,60% to 22.351 points.
On the maneuver for 2020, Italy will find a compromise with Brussels without going into confrontation as happened last year, according to a Moody's report. The rating agency adds that Italy's credit profile — rated 'Baa3' by the agency — reflects a diversified economy balanced by high public debt and low growth.
Frankfurt +0,34%; Paris -0,07%; Madrid +0,07%.
London +0,63% is the only one not apparently suffering from Brexit sickness.
BREXIT, TUSK LENDS A HAND TO BORIS JOHNSON
However, the stability of the stock is indirectly proportional to the drop in the pound which reversed course during the day until it lost 0,2% to 0,862 in the afternoon. The president of the European Council, Donald Tusk wrote on Twitter that he wanted to support the request to extend the deal with the European Union which arrived on Saturday from London. After the last votes of the Parliament, however, it seems almost impossible to meet the deadline of 31 October.
BTP ITALIA, 6,75 BILLION RAISED, 0,94-YEAR AT XNUMX%
On the day of the positive conclusion of the BTP Italia offer, the 0,94-year bond closes at a yield of XNUMX%.
The spread stood at 134 basis points (from 130).
The placement of the new Btp Italia October 6,75 was completed at a total of 2027 billion euros with a decidedly better performance than the last one last November, when 2,2 billion were totaled.
For the fifteenth edition of the bond indexed to Italian inflation, the Treasury has decided to reduce the days of offer to the retail public from three to two and to communicate the final coupon rate — which went down to 0,65% from the initial 0,60% — before the launch of the offer dedicated to institutions. The definitive coupon should be compared with the 1,45% of the previous edition, when the maturity was four years (against eight for the current edition). The almost 3 billion in retail subscriptions (2,99 billion to be precise, fully satisfied as required by the offer mechanism) were joined this morning by the 3,76 billion assigned to institutional investors, against requests for 9,85 billion.
AIM, WEIGHT THE BIO.ON EFFECT
Uncertainty about Brexit, but even more the negative signals from the quarterly reports of Texas Instruments, a faithful thermometer of the demand for chips by the economy, weighed on the mood of Piazza Affari, which was also impressed by the clinking of handcuffs in the Bio.on house, former prodigy freshman of Aim. “The investigations into the company – said the chief prosecutor Giuseppe Amato – revealed a factual alteration of the company, aimed at altering the value of the securities on the Stock Exchange. We intervened to interrupt this artificial representation that society made outside of itself"
ON THE ACCOUNTS OF STM THE SHADOW OF TEXAS INSTRUMENTS
Stm loses ground (-2,8%) in line with the semiconductor sector. The quarterly of the Italian-French group is coming.
On the other hand, the quarterly report of Nokian Tires (-2%) put Pirelli under pressure (-4,8%).
Profits were taken on Ferrari (-2,2%), one of the car stocks that has better withstood sales in the last period.
FCA MORE ELECTRIC, PAUSE FOR THE BANKS
Fiat Chrysler (-2%) takes new steps on the electric road. He announced the creation of a battery assembly center in Mirafiori, which will be used on the new generations of 'full electric' models of the group. The investment planned in the first phase will be around 50 million euros, while the preparatory works will start in the first part of 2020.
The weak general tone also affected a defensive sector such as utilities: Italgas -0,8% and Enel -1,4%.
The financials are also down. I retrace asset management: Azimut -1,9%, Banca Generali -2,1%.
The exception among the banks is Bper (+1,3%) driven by the positive opinion of Kepler Chevreux: buy with a target of 4,4 euros.
Bank Bpm-1,5%. Unicredit -0,4%. Ubi Banca -1,6%.
BELPIETRO TURN ON THE MONDADORI TITLE
Advances Mondadori (+3,8%), which received a binding offer for the acquisition of the magazines Confidenze, Cucina Moderna, Sale&Pepe, Starbene and Tustyle by La Verità. The offer, which is valid until 31 December, provides for the establishment of a NewCo, in which La Verità will hold 75% and Mondadori 25% and also entails an earn-out in favor of the Segrate group and put/call mechanisms in favor of shareholders.
Technogym -5% after quarterly results.
Gamenet -8%. A consortium of funds launches the takeover bid, after acquiring the shares of the two main shareholders, equal to a total of 48,67% of the capital, at the price of 12,5 euros per share. The price of the takeover bid, aimed at the delisting, will be established later, based on the value of the transaction with the relevant shareholders.
