BBB, or Build Back Better. This is the bet made by President Biden, who yesterday launched his plan to remake America: 2.250 billion dollars which will serve, among other things, to redo 20 km of roads, repair 10 charging points for electric cars and install another 500 thousand. The announcement, already taken for granted, does not excite Wall Street, which philosophically welcomes the idea that, in order to finance the plan, as well as making a deficit, Biden intends to resort to raising corporate taxes to 28% for fifteen years. On the contrary, taxes, however low (only the reliefs for the rich decided by Trump are skipped) are much less scary than debt. The good news is that bonds have embraced the plan with no new hiccups.
The 1,73-year Treasury Note is sitting well at 5% yield after giving more than a thrill. In the first three months, the 2004-year future lost just over 4,2%, the worst quarter since 2021. For the Bloomberg Barclays index, which uses all US government bonds as a reference, the -XNUMX% first quarter of XNUMX is the most negative result for forty years.
LACK OF CHIP BRAKS THE YELLOW CAR
The tranquility on the bond front, together with the prospect of US investments, favored the start of the second quarter of the Stock Exchanges with a plus sign. Asia Pacific index gains 0,6%; the CSI 300 of the Shanghai and Shenzen indexes, as well as the Tokyo Nikkei, gain 0,5%. The shortage of chips is holding back Tokyo's industry: In February, Japanese industrial production fell by 2,1% compared to the previous month. The decline was influenced by the earthquake that struck the north-eastern area and which interrupted the supply of components destined for the main automobile companies.
Hong Kong (+1,2%) is not affected by the US decision to cancel the favorable legislation for the former British colony, now under the control of Beijing.
APPLE FLIES: +21% TURNOVER FOR THE QUARTER
Nasdaq futures are up this morning by 0,3% after yesterday's strong rebound in the technological stock: +1,54%, a gain that allowed the stock to close March with a slight rise of 0,4%, against +6,6% of the Dow and +4,2% of the S&P.
Apple rallied 1,0% after UBS promotion. In the first quarter, Apple's turnover was 111,4 billion dollars (+21%).
THE FORMER TOSHIBA MEMORIES AT AUCTION: 30 BILLION
In the aftermath, Micron Technology presented indications for the current quarter that exceeded expectations: the largest memory chip maker in the United States estimates revenues of around 7,1 billion dollars. The Wall Street Journal writes this morning that Micron itself has its eye on Kioxa Holding, the Japanese chip maker. Western Digital would also be in the running to take over the former Toshiba Memory, at a valuation in the order of 30 billion dollars.
OPEC+, THERE IS NO AGREEMENT. THE SUMMIT STARTS TONIGHT
WTI oil, which fell by more than 2% both yesterday and the day before, is back below 60 dollars a barrel. The preliminary meetings between the OPEC+ delegates did not lead to the drafting of a unitary document to be supplied to the discussion of the plenary phase which begins in the late afternoon today. The declarations of the general secretary of the cartel, Mohammad Barkindo, who is very cautious on the trend of demand, do not allow us to foresee a change of attitude on the current cuts regime.
Gold, on the other hand, gained more than 1% yesterday and is at $1.711 an ounce this morning
EUROPEAN EXCHANGES FLAT, INFLATION IS NOT SCARY
The European stock exchanges said goodbye to the first quarter with a flat session, recording without particular emotion the expected rebound in inflation (+1,35% from +0,9% in February), momentarily pushed above the EU target by the increase in energy prices. The rise in ten-year yields of Italy and Germany in the wake of US bonds is not even worrying. “Speculation can test us all it wants – said Christine Lagarde to the microphones of Bloomberg TV – We have exceptional tools to use at the moment. We will use them where necessary." The contagion curve is more worrying. The German research institute Diw warns: "Only when the infections are under control, in particular thanks to advances in vaccinations, will the sectors related to consumption show significant and sustainable momentum".
TENARIS (+46%) QUEEN OF THE QUARTER IN MILAN
Piazza Affari closed the session flat: +0,05%, at 24.646 points, consolidating the highs for 13 months.
The leading stock since the beginning of the year is Tenaris (+46%). The world leader in seamless pipes is favored by the initiation of major infrastructure projects around the world.
Frankfurt too (+0,02%) confirmed the highs reached at the end of the quarter.
PARIS -0,34%, MACRON CLOSES FRANCE
Paris -0,34% awaiting the message from President Macron, who yesterday evening announced tougher measures against the pandemic: schools will remain closed until April 26th. Three stocks that have risen more than 30% since January: Société Générale, Saint Gobain and Arcelor Mittal.
BITTER DEBUT FOR DELIVEROO (-26%)
The black jersey belongs to London (-0,83%). It collapsed on its debut Deliveroo (-26,30%) after placing it at the minimum of the fork (271 pence against the initial 390). “The greatest fear is the regulation of workers' rights. Deliveroo's riders' flexible employment model is an important pillar of the group's plans for success,” writes Sophie Lund-Yates, equity analyst at Hargreaves.
The decline in Zurich continues (-0,61%): Credit Swiss remains knocked out (-4,93%) due to fears for losses related to Archegos, the US fund which went into default, sending part of the banking sector.
SPREAD AT 96 POINTS, 0,66 YEARS XNUMX%
Positive closure for BTPs. The ten-year rate stands at 0,66%, down from 0,69% on the previous day. The spread to 96 points was also slightly down.
Strong interest from specialists in the reopening of Btp auctions: the request was more than three times higher than the additional offer for both the 5-year and the 800-year bonds, reopened for 600 and XNUMX million respectively.
BIDEN CHARGES BUZZI, PRYSMIAN-RWE AGREEMENT
Industrial stocks still stand out. Buzzi Unicem is confirmed (+1,88%), supported by the prospect of US contracts for infrastructure. Prysmian (+1,99%) stands out, having signed a contract with Rwe Renewables, one of the largest developers of offshore wind farms in the world, for the construction of a "key in hand” worth over 200 million euros for the 1.4 gigawatt Sofia offshore wind farm. Equita sim confirmed the hold recommendation and the target price at 28 euros.
THUD OF PIRELLI, A HYDROGEN VAN FOR STELLANTIS
He disappoints Pirelli on the day of the presentation of the business plan. The stock first rose by more than 1,5% and then dropped 3%: the industrial plan expects to return to pre-Covid levels only in 2022.
Stellantis (-0,11%) announced it will begin deliveries of the first hydrogen-powered mid-size vans in Europe by the end of 2021. They will be launched under the Peugeot, Citroen and Opel brands. A hydrogen version for passenger vehicles will be launched later.
Purchases on Ferrari (+1,8%), profit taking on Cnh Industrial (-2%).
GOLDMAN SACHS AWARDS ENI AMONG THE TOP PICKS
The oil sector is on the move. Goldman Sachs raised its target price on Eni +0,9%, a stock included among the top picks of the American investment bank in the oil sector, assuming a robust year for the entire sector. In detail, analysts increase the target price of the six-legged dog from 12,5 to 13,5 euros. Morgan Stanley raised the recommendation to “overweight” from “underweight” with a target price rising to €12,3 from the previous €8,2.
In deep red instead Saras, the worst in the list with a drop of 7,4% after the results of 2020 with Ebitda which in the fourth quarter showed a loss of 31 million euros on a comparable basis. Broker Kepler Cheuvreux cut the target price on the shares to 0,48 euros and reduced the rating to "reduce" from "hold".
AUTOGRILL RUNS, CDP PRESENTS THE OFFER ON ASPI
Autogrill always tonic, with a leap of more than about 5%. The stock has been in an uptrend channel for six sessions in which it has gained more than 17% as the market is repositioning itself on the restaurant company in view of the reopenings.
Atlantic -0,19%. The consortium formed by Cdp Equity, Blackstone and Macquarie sent the offer for the purchase of the stake, equal to 88,06%, in Aspi.
Tim, BULGARIAN MAJORITY FOR GUBITOSI. DE MEO ON THE BOARD
Time +0,15%. The shareholders' meeting confirmed the current management with a large majority and reiterated the centrality of Vivendi, which with its 23,9% yesterday represented 41% of the meeting, just enough to elect the majority of the board of statutory auditors, i.e. 3 out of 5 mayors. The management list promoted by the president Salvatore Rossi and by the CEO Luigi Gubitosi did the en plein. And so, in addition to the president of Cdp Gorno Tempini, the president Rossi and the CEO Gubitosi, yesterday the CEO of Vivendi Arnaud de Puyfontaine, his right-hand man Frank Cadoret and five independents were appointed including the CEO of Renault Luca DeMeo.
Banks moved little: Unicredit and Intesa lose around half a point, Bper -1,1%. Worse Mediobanca (-1,9%) and Banca Bpm (-2,5%).
MOODY'S PROMOTES PIAGGIO +4,7%
Comments on Piaggio (+4,7%) and on the parent company Immsi (+2,8%): Moody's has revised the company's outlook to stable from negative, confirming the Ba3 rating.
On the Aim, Esi, active in renewable energies, scored a +5,11%, to 3,5 euros. Integrae Sim increased its target price on the stock to 7,5 euros from 7 euros, confirming the buy. In rally Marzocchi Pompe (+10,06%), a company active in the design, production and marketing of high performance gear pumps and motors.
