"I have no doubt that I will be the new president of the United States." Joe Biden breaks the delay, strengthened by the victories in Michigan and Wisconsin, which brought the Democratic candidate to 253 certain electors. 17 are enough for him to cross the finish line. AND sleepy Joe, as his rival Trump defined him, seems to be able to sleep peacefully. Biden is ahead in Nevada (6 super delegates), Arizona (11), and is close to a comeback on Trump in Pennsylvania (20) and Georgia (16). North Carolina (15) is the only state in the balance where Trump seems to be able to win, but it will not be enough for him. The outgoing president currently has 214 super delegates. And meanwhile, holed up in the White House, he is announcing appeals and asking for recounts. In short, it is doubtful that Trump will be able to congratulate the new president as etiquette and tradition require. Markets are unconcerned, although the rally unsurprisingly slows ahead of the weekend, which is more welcome than ever.
SHANGHAI +3,4% IN THE WEEK. TOKYO AT THE HIGHEST FOR 30 YEARS
The equity rally loses only slightly momentum this morning in Asia. The CSI 300 index of the Shanghai and Shenzen stock markets is down by 0,7%, but the week is about to close with an increase of 3,4%. Hong Kong's Hang Seng and Seoul's Kospi are at parity, while Tokyo's Nikkei is up again: +1%. The Japan Stock Exchange is near the highs of the last thirty years.
The yuan lost 0,5% to 6,6319 against the dollar. In October, Chinese exports rose by 9,3%, imports by 13,2%.
NASDAQ STILL AT THE TOP, BUT UBER MISSES
Futures anticipate another bullish opening on Wall Street. Yesterday's movement was large and much less selective than those of Tuesday and Wednesday. Neglected sectors, such as banks, also rose. The Nasdaq closed up 2,6% and the S&P500 up 1,9%: both indexes, with these gains, would sign the best week since April. But there is scope to go further, as Nasdaq futures climb 1,5%.
The main lists are up: Dow Jones and S&P +1,95%, Nasdaq +2,59%. In the aftermarket, Uber's not entirely convincing accounts did not dent the good mood. Instead, the quarterly of Square, the company of the app that allows you to transform the telephone into a payment instrument, was better than expected.
Complications in the counting of ballots for the nomination of the new US president are not disturbing the stock markets, but instead penalize the currency. The dollar index, an index that crosses the dollar with six other currencies, lost 0,9% yesterday, the worst session since May.
POWELL (FED): “WE COULD BE MORE ACCOMMODATING”
The Federal Reserve also lent a hand to the weakening of the currency. Yesterday, during the post-release press conference on monetary policy and interest rates, Governor Jerome Powell spoke with great concern about the threat of the pandemic and anticipated the possibility of a reformulation of the bond purchase plan: if necessary, “we could adjust the parameters, in order to be even more accommodating”.
The yield on the 0,90-year Treasury Note, which rose to 0,76% on expectations of a landslide Democrat victory, is back down to pre-election levels at XNUMX%.
Brent oil down 2,5%, to 39,8 dollars a barrel: on these price levels, the week would end with a 5% increase.
PIAZZA AFFARI +11% IN SIX SITTINGS
And five. At the end of the fifth consecutive session with the plus sign, Piazza Affari records a double-digit increase in less than a week, in line with the other lists of the Old Continent. What's more, almost all of a sudden the signs that promise to support the rally have multiplied. Parliament and the Council yesterday reached an agreement on the mechanism by which to link the disbursement of European funds to respect for the rule of law. A crucial obstacle has been overcome in view of the approval of the EU budget for 2021-2027, to which the €750 billion Recovery Fund is associated. The euro/dollar cross rose to 1,182 (+0,8%).
ALSO WEIDMANN CAREFULLY PROMOTES THE EXPANSIVE LINE
In this context, even the president of the Bundesbank Jens Weidmann goes so far as to support the ECB's measures to deal with the pandemic, while inviting governments not to expect this "generosity" to last forever. “It is important that monetary policy remains expansionary – he said – as the economic crisis is weighing on the inflation outlook and the lack of liquidity in the financial system could dangerously aggravate the crisis,” he said during an online event in London. But woe to getting used to such low financing costs. “What can happen if conditions change?”.
THE FORECASTS FOR ITALY IMPROVE: -9,9% AT THE END OF 2020
Meanwhile Brussels improved Italy's GDP forecast in 2020, to -9,9% from the previous -11,2%. That for 2021 instead drops to +4,1% from +6,1%. For the Eurozone, the forecast for 2020 is raised to -7,8% from -8,7% and that for 2021 to +4,2% from +6,1%.
Milan greets the new lockdown with a leap of 1,93%, to 19.731 points: they were 17.872 at the closing on Thursday last week
EU BANKS: SOCGEN SALTS, ING AND COMMERZBANK IN DEEP RED
The other price lists are also rallying: Prosiebensat (+2%), the TV station owned by Mediaset, runs in Frankfurt (+9,7%). Commerzbank drops 6,4% after a quarterly loss, while internal reorganization continues. The Dutch Ing (-6,7%) is still suffering. Paris +1,25%: Société Générale stands out (+3,5%).
Madrid +2,1%. London only +0,33% after the intervention of the Boe.
BTP, NEW RECORD: 0,61%, SPREAD AT 125 POINTS
New positive closure for BTPs. the 0,61-year benchmark rate reached a low in the session at 125%, just a whisker from a new all-time low, while the spread on the Bund fell to XNUMX basis points.
Today's appointment with the buyback of the Treasury contributes to offering support to Italian paper: Via XX Settembre will buy back five securities including a BTPEI (September 2021), three BTPs with maturities in 2021 and 2022 and a BTP Italia with maturity in 2023 .
TODAY THE COUPONS OF THE NEW BTP FUTURA
The three guaranteed minimum coupons for the new eight-year Btp Futura, which will be launched from Monday to Friday, will also be announced today.
In addition to the news arriving from the US, some excellent quarterly reports have contributed to supporting the charge of the Bull.
LANCIA TENARIS INTERIM DIVIDEND (+13,2%)
Tenaris leapfrog, up 13,2% after the third quarter results decidedly higher than expected and the surprise announcement of the interim dividend.
CNH SURPRISES, THE IPHONE PUSHES STM
Results also affected CNH (+5%), which beat earnings estimates in the third quarter and improved guidance on the decline in sales in 2020.
STM jumped 3% also on the heels of Qualcomm's estimates which forecast a strong fiscal first quarter on the revenue front, following the increase in chip sales for Apple's 5G iPhone models.
ENEL EVER GREENER: NEW 4.100 MEGAWATTS OF RENEWABLES
Enel (+3,30%) confirmed its targets for the year, after Ebitda for the first nine months was in line with estimates, accelerating plans to reduce carbon dioxide emissions. Ordinary Ebitda for the period fell by 0,9% to 13,1 billion euros, with the growth of the business in the renewable energy sector and European grids which almost completely offset the impact of the pandemic and currency effects in Latin America. The utility giant said it commissioned 900 megawatts of new renewable energy in the third quarter and installed 4.100 MW of new renewable capacity in the past 12 months. Coal-fired power generation fell 71% in the first nine months with zero-emission generation climbing 65%. The group, which expects an ordinary EBITDA of around 18 billion euros for this year, said it will pay an interim dividend of 0,175 euros per share, up 9,4% on last year.
SNAM BUILDING WAITING FOR HYDROGEN
Snam building (-0,3%), with a net profit of 973 million in the nine months (+0,7%), with turnover rising to 2,03 billion (+3,9). A result that arrived thanks to a greater return on investments in the grid and to the fact that the company has launched a series of activities that go beyond its traditional business in the production of biomethane, energy efficiency and with activities abroad ( from Greece to France to the Emirates). Snam also confirms its commitments in hydrogen technology.
ATLANTIA STARTS AGAIN, 8,5 BILLION ORDERS FOR LEONARDO
Atlantia is also on the shields, up 3,2% despite the latest data on motorway traffic with an annual decline in traffic on the Autostrade per l'Italia network of 27% in the week ending November 26,9st and in the French one by XNUMX% in the period.
Leonardo (+1,70%) closed the first 9 months of 2020 in line with the same period of 2019. New orders reached 8,5 billion euros, while revenues amounted to 9 billion.
STABLE UNICREDIT, STILL IN RALLY INTESA
Among the banks, Unicredit was weak (-0,13%) after the results for the quarter "better than expected thanks to trading and the cost of credit", underlines the broker Equita.
bpm +0,24%. The increase in revenues and the reduction in costs made it possible to record a profit before tax from continuing operations of 239 million euros compared to 106 million in the second quarter, despite the higher write-downs on receivables.
Monte Paschi retreats by 0,3% shortly after the announcement of the quarter that sees a red at 451 million.
Intesa Sanpaolo (+2,4%) instead continued the race on the eve.
BIDEN PUSHES FALCK RENEWABLES
Falck Renewables jumps by more than 6% from the main basket, which takes advantage of the positive effects on the renewables sector in the event of Biden's victory.
The Ministry of Economic Development has prepared a device that partially anticipates the overall reorganization of the communications sector: it will be the task of the Guarantee Authority to evaluate whether the acquisitions could compromise information pluralism. Therefore, if Vivendi wants to take control of Berlusconi's TV channels, he will have to ask for authorization from Agcom which, within six months, will verify "the existence of distorting effects or positions harmful to pluralism" in terms of "revenues, barriers to entry as well as the level of competition in the markets involved". The legislative vacuum created by the sentence of the EU Court which rejected the Gasparri law will thus be filled.
