Between April and June Apple, Alphabet and Microsoft, i.e. the three Big US that yesterday communicated the data for the quarter, accumulated profits of 57 billion dollars, or 5 billion rounds per week, double the figure a year ago and 30% more than estimates. A stellar performance which was matched by a decline after the Stock Exchange, after the announcement of the results: Apple, which recorded its best quarter ever (21,7 billion in profits) lost 1,5%, Alphabet did worse ( -1,6%), the parent holding of Google (18,52 billion earnings). Microsoft -0,83% despite earnings up 47%.
MAESTRI (APPLE) CAUTIOUS ABOUT COMING QUARTERS
Why such coldness? Perhaps the Stock Exchanges are convinced that the best is behind them. The same CFO of Apple, Luca Maestri, warns that the next quarters may not be as good. And the demand for a stronger and more severe Antitrust in the face of so much firepower will grow. The big names also paid for the market's caution in anticipation of Jay Powell's press conference at the end of the Fed meeting. And, even more, the crisis on the Chinese market.
THE STOCK CRASH NOW SCARES THE PARTY TOO
The collapse of the stock market is also starting to worry the authorities in Beijing. An editorial by Securities Times, a financial newspaper controlled by the party, warns that "there is no need to lose one's head because the market is solid". But strong sell-offs on tech and school stocks have caused tensions on bonds and the yuan exchange rate.
This morning the Shanghai stock exchange, in recovery, closed on the game. Hong Kong, the hardest hit in recent days, dropped 0,2%.
The other Asian markets were weak: the Nikkei lost 1,4%, the Kospi of Seoul -0,5%, BSE Sensex of Mumbai -0,5%. In Asia, the health situation leaves no room for optimism. South Korea and Thailand announced record daily infections yesterday. The Sydney authorities have warned that the lockdown, which has been underway for a month, will last at least another month.
WALL STREET FUTURES DOWN, TESLA DOWN
Wall Street futures are down slightly: yesterday the S&P500 closed down by 0,5%, the Nasdaq by 1,2%, the Dow Jones by 0,2%.
Above all, the travel, movement and mass entertainment companies, such as those of casinos and cruises, have declined. Tesla is also down (-2%).
The yield on ten-year Treasury notes fell to 1,24%, also due to the success of the 61 billion dollar auction of five-year notes.
Gold is at $1.805 this morning.
SICKNESS IN CHINA STIMULATES THE RACE FOR THE BUND
European stock markets in red awaiting the response from the Fed. To avoid nasty surprises, the markets have chosen the path of prudence, taking refuge under the shield of the Bunds. The malaise of the Chinese markets also weighs, victims of the grip of Xi Jingping determined to punish the Dragon companies that have chosen Wall Street.
MILAN -0,8%, IMF RAISES ESTIMATE FOR ITALY
Milan also closes in the red (-0,83%) which interrupts a streak of five positive sessions. However, the index stops above 25 points (25.086).
In the update to World economic outlook, the IMF has revised upwards its estimates for Italian GDP in 2021, bringing them to +4,9% from the +4,3% assumed in June. A similar revision also applies to GDP in 2022, which rose to +4,2% from the previous +4%.
But the improvement for Italy is also estimated on the public accounts front, with forecasts for this year's deficit/GDP ratio rising to 11,1% from 11,8% in June and the debt/GDP ratio down to 157,8 .159,9% from XNUMX%.
PARIS IN THE RED, BUT KERING'S (GUCCI) PROFITS FLY
Paris was also in the red (-0,71%) after a controversial meeting.
LVMH closes negative (-0,56%) after a rising session (+2,2%). Analysts are very positive: Invest Securities underlines the "perfect timing" of the acquisition of Tiffany on the eve of the boom in the American market.
With the stock exchange closed, the data from Kering arrived. Sales nearly doubled in the second quarter, led by a marked acceleration of the Gucci brand. Comparable revenues increased 95% to $4,16 billion in the three months to end-June compared to a year ago and were 11% above pre-pandemic 2019 levels. Growth was led by North America, where retail sales increased more than 260%, and from Asia. Gucci, which accounts for more than half of the group's revenues and 76% of operating profit, saw an 86% increase in sales over the period.
Michelin +1,4% and Dassault Systèmes are advancing after the accounts.
Down Frankfurt (-0,64%) and London (-0,42%). Below also Madrid (-0,87%) and Amsterdam (-1,05%).
THUD OF RECKITT, TENCENT KEEPS PROSUS OUT
Reckitt, the British maker of Lysol, fell nearly 9% after announcing a margin warning due to rising costs and posting disappointing second-quarter sales growth.
Dutch Prosus, which owns a stake in China's Tencent, slid 8% to its lowest level since May 2020.
SPREAD AT 106, SIX-MONTH BOT AUCTION UNDERWAY
The race to purchase the German "paper" considered a safe haven is starting up again. 0,44-year Bund at -0,41%, on the lowest since February, from -XNUMX%.
The Btp trades at 0,61%, the lowest since March. The spread is at 106,4 points.
At the short Btp auction, the Treasury assigned the maximum amount offered with rising yields. Today will be the turn of the 6-month Bot (7 billion offer).
In this case, yields are expected to drop further compared to the placement in June, when the all-time low was reached: yesterday the stock was quoted at -0,55% on the gray market.
A TOAST FOR CAMPARI SUPERSTAR: PROFIT +101,9%
Piazza Affari, despite its decline, has found a way to dedicate a toast to Campari, which has shot up by 5%, to an all-time high after the accounts of a sparkling first half ended with revenues of 1,08 billion euros, up by 37,1% over the same period of 2020 and 22,3% over 2019, before the pandemic. Adjusted operating profit (Ebit) rose by 88,7%, while net profit rose by 101,9% to 156,8 million. Net financial debt decreased to 1,06 billion.
Quarterly effect also for Italgas (+0,45%). Banca Intesa's analysts underline that “it is a set of solid results and slightly above expectations for net income and debt”.
TIM: REVENUES AND MARGINS DOWN IN THE HALF
When the stock market was closed, they arrived Tim's accounts (-1,2%). The telecommunications group ends the first half of the year with revenues only slightly down and margins under even more pressure due to greater competition and costs related to investments for the launch of the alliance with Dazn. At the end of June, the group drops to 7,56 billion (-2,5%) and the GOP falls to 2,77 billion (-18% due to the deconsolidation of Inwit). Revenues from domestic fixed telephony services, which are the heart of the company, fell to 4,29 billion (-1,4%). On the other hand Tim Brasil returns to growth, which now accounts for over a fifth of revenues.
RCS, MICCICHÈ LEAVES THE BOARD. CAIRO IN THE SIGHT OF INTESA
Troubled waters in Rcs Mediagroup (-1,36%), where Gaetano Miccichè leaves the board of directors. The president of Intesa Sanpaolo's Imi-Cib division resigned yesterday from his role as director, explains a company statement, "due to his current commitments and those that he expects to assume in the next period as well". However, the step back by the banker who has assisted Cairo, president, managing director and main shareholder of RCS for years, comes two days before the board meeting on Friday 30 July. the first after the arbitration award which rejected the claims for compensation made by RCS against the US fund Blackstone for the story concerning the sale of the property in via Solferino in Milan. Miccichè had been among the most critical on the RCS board for months, together with Pirelli CEO Marco Tronchetti Provera, both on the decision to sue Blackstone and on that of not making any provisions in the financial statements.
THE BANKS ARE BRAKING, A BITTER RETURN FOR CARIGE
The banks are hit by the letter. Among the worst performers are Big Unicredit and Intesa Sanpaolo, down by 2,5% and 1,6% respectively. Bper also down, down by 1,4%.
Carige -57.88% to 0,6318 euros. In practice, there were no trades on the first day of trading after the suspension from 2 January 2019 following the commissioning of the ECB concluded thirteen months later with the bailout of the Interbank Deposit Guarantee Fund (FITD).
Nexi also down (-1,8%) in the wake of the bad results of the French competitor Worldwide (-8,5%).
OIL DOWN, STM SUFFERS
Strong sales also on oil: Eni -1,1%, Tenaris -1,5%, Saipem -0,7%.
Stm suffers (-2,44%), Diasorin holds after the start of coverage by Morgan Stanley with "equal weight" and a target price of 167 euros.
PININFARINA AND BIESSE RUN, SOMEC F SHOPPING
Out of the main basket, a sharp rise for Pininfarina, up 6%. Biesse stands out among the mid caps (+5,34%).
Well done to Aim Somec (+3,03%): the company has signed an agreement for the acquisition of 60% of Bluesteel, a European player in engineered systems for facades and windows.
It should be noted that Ulisse Biomed, the Italian healthcare biotech company active in the diagnostics, theranostics and therapeutic fields, has received orders for a value higher than that of the offer launched in the IPO phase. The company has therefore decided to close the offer early today. The debut on the price list is scheduled for August 6th.
