After the long course of the Bull, as expected, the debutante ball started. Yesterday, DoorDash's Wall Street debut exceeded forecasts: the home food delivery company closed up 80%, reaching a capitalization of 71 billion dollars. But the landing of Airbnb could be even more spectacular: we are talking about a valuation of about a thousand dollars for each house, or room, or apartment on the platform. Among other things, the bubble is justified by the desire of the markets to leave the pandemic behind, even if the numbers, for now, do not justify the euphoria: yesterday the ceiling of 3 deaths in a single day was exceeded in the US .
In Asia this morning, Tokyo's Nikkei is down 0,1%, Hong Kong's Hang Seng 0,4%, Seoul's Kospi 0,2%. The CSI 300 index of Shanghai and Shenzen is up by 0,3%, on expectations of very positive macroeconomic data arriving next week. In November, according to Bloomberg, industrial production and retail sales should have accelerated further. The wine war underway with Australia doesn't disturb much: tonight Beijing forced Australian exporters to deposit a deposit in view of an investigation into the state aid they have received in recent years. Also tonight, 21 Chinese companies were delisted from the S&P and Dow Jones indexes, following the White House order.
The stalemate in the United States Congress on aid to be sent to families, companies and public bodies in difficulty due to the pandemic stopped Wall Street's race yesterday. The news of the legal war unleashed by a large front of prosecutors, states and authorities against Facebook gave a push to the Nasdaq (-1,9%). The request for a stew of Mark Zuckerberg's empire makes its way by imposing the sale of What's App and Instagram.
Euro appreciates against the pound after last night's three-hour "frank" meeting between Boris Johnson and Ursula von der Leyen.
TIME OUT: BORIS AND URSULA TOWARDS DIVORCE
Time is up. We will make a decision by Sunday evening. This is how Boris Johnson and Ursula von den Leyen broke up late yesterday evening after a "frank discussion" at dinner. Three hours served to finalize the details of the divorce up front, notes the Financial Times, to formidable fish courses, especially scallops which, after Brexit, will cost 20% more in the EU.
"We had a frank discussion - said Von der Leyen - in which we clarified the positions once and for all: the distances remain considerable". The British prime minister, who immediately left for London, confirmed that "there are still great distances between our positions".
BUT MERKEL FINDS AGREEMENT ON THE RECOVERY FUND
Instead, we are moving towards an agreement by tomorrow between Brussels and the rebels of Hungary and Poland which will allow the take-off of the 1.800 billion euro EU budget and the Recovery Fund. The diplomats, under the impetus of Germany, have identified a compromise between the request to subordinate aid to the respect of principles not guaranteed by the current legislation of two countries and their threat to blow up the agreement between the 27. The agreement should predict that new rules, calibrated with great caution, will only apply from 2021.
PEPP AND TLTRO TODAY THE ECB'S VITAMINS FOR GROWTH
As regards the last ECB meeting of the year, it is obvious that Christine Lagarde intends to reiterate the need for an expansive policy. There will be an increase in the amount and duration of the PEPP (500 billion more by the end of the year) and an increase in the TLTRO at attractive conditions. According to François Rimeu, senior strategist at La Française, “we could see a reduction in inflation estimates following the rise of the euro. And it must be remembered that for the first time we will also have projections for 2023. We expect the inflation forecast for 2023 to be, once again, below the target (about 1,4% of core inflation). We also expect a comment on the strength of the euro, but there is nothing the ECB can do.”
EXOR ON THE ATTACK: ELKANN IN CHINA TOGETHER WITH HERMES
Exor will invest 80 million euros in Shang Xia, subscribing to a capital increase that will give it the majority of the Chinese company. The current two partners, Hermès and the designer Jiang Qiong Er, will remain in the shareholding structure to share the development of the label with the Agnelli family holding company. Beyond the numbers, the prestige of the French partner counts: "With Exor we share a profound family and entrepreneurial culture, thanks to which we will be able to achieve new successes for Shang Xia", said Axel Dumas, executive president of Hermès, the only one to having been right by Bernard Arnault. who in vain tried to break the unity of the family.
PEUGEOTS BUY, TOWARDS THE OK OF THE ANTITRUST
Runs FCA (+2,76%), favored by the rumors about a forthcoming green light from the EU Antitrust for the merger with PSA. As foreseen by the agreements, the Peugeot family has acquired a further 2% of the transalpine company. Even better Ferrari (+2,81%). Pirelli did well (+2,11%) promoted by Kepler Cheuvreux from hold to buy, with the target price going from 4,2 to 5,2 euros.
STM PUSHES MILAN AND PARIS DOWN
Negative day for Piazza Affari, which, the black jersey of the old continent, falls below 22 thousand points (21.969, -0,38%). Below also Paris (-0,25%) which is also a victim, like Milan, of the collapse of Stm after the accounts and, above all, the forecasts on the objectives.
The Italian-French group, which lost about 12% in both Milan and Paris, paid for the effects of the US embargo on Huawei and, even more, for the decline in automotive sales. The recovery prospects are weak: in 2023 revenues will be around 12 billion dollars and the operating margin equal to 16% while analysts expected around 18% already in 2022. The less brilliant than expected trend of the profit is in partly due to the unfavorable euro-dollar exchange rate.
POSITIVE FRANKFURT, ATHENS UP FOR 14 WEEKS IN A STRAIGHT
The other markets rose slightly: Frankfurt +0,46%, Madrid +0,1% and London 0,07%. Of note is Athens (+1,5%), in the running to record the fourteenth consecutive week on the rise, the longest series ever.
SPREAD AT 115, ANNUAL BOTS AT -0,498%.
The Treasury has assigned all the 7 billion euros of annual BOTs offered at auction with further lower rates. The average yield fell to -0,498%, from -0,478% in November's placement. Demand exceeded 12,8 billion euros with a coverage ratio of 1,83.
The Italian secondary ended a session with a marginal gain dominated by expectations for the last medium/long-term auctions of the year. The gap between BTP and Bund rates on the 10-year segment stands at 115 basis points from 117. The 0,54-year rate is 0,55% from XNUMX% at the previous closing.
BANKING RISK: UNICREDIT/BPER CHECK
The maneuvers on the banking front are back. The project of an investment bank emerges to integrate Unicredit (+1,2%) and Bper (+2,5%). In the combination, Unipol, the main shareholder of Bper Banca, would take over from Aviva upon expiry of the insurance partnership agreement with UniCredit. The new group would also have a stable nucleus of Italian shareholders with a 10% stake. Bench Bpm +1,26%.
MONCLER STILL RUNS, TOD'S WAKES UP
The effect of the purchase of Stone Island by Moncler continues in luxury (+3,81%). Buy on Ferragamo (+1,73%) and Cucinelli (+0,55%). Tod's takes off (+5,32%).
ENI AND MAIRE FULLY HYDROGEN
Eni +0,6% and Saipem -0,47%. The two companies have signed an agreement to cooperate in the identification and engineering of decarbonisation initiatives and projects in Italy.
Maire (+6,5%) has signed a MoU with Enel Green Power for a green hydrogen plant in the USA.
