The major indices of the Italian Stock Exchange and the main European financial markets should begin the last session of the week with fractional increases given the futures on the Eurostoxx 50 which move slightly positive (+0,2%), after the positive session on Wall Street. Apple in the premarket it earns 6% afterwards better than expected data and mega bayback. In Milan, keep an eye on the accounts of Intesa San Paolo
Positive session a Wall Street, with investors digesting the stalemate on the rates Federal Reserve and the words of the president Jerome Powell which noted the lack of improvement in recent inflation data and suggested there is no rush to initiate the turnaround. Wall Street closes with Dow Jones which rises by 0,85% to 38.226,45 points, the Nasdaq which advances by 1,51% to 15.840,96 points and lo S & P 500 which achieved an increase of 0,91% to 5.064,22 points. Investors were awaiting Apple's data released after the close of trading.
Apple reported a decline in profits and revenue in its fiscal second quarter, the fifth decline in the last six periods due to sluggish sales of its flagship iPhone and competition from new Chinese products. The decline was smaller than expected, however, and CEO Tim Cook said a Reuters that the company expects a modest return to sales growth starting from the current quarter and then thanks to investments in intelligence capabilities. The company also announced a mega buyback of up to $110 billion and Apple leaders proposed the distribution of a quarterly dividend of $0,25 per share in cash. In the premarket the stock is up 6% today. In detail, Apple closed the second quarter of the 2023/2024 financial year with revenues of 90,75 billion dollars, down 4% compared to the 94,84 billion obtained in the corresponding period of the previous financial year, but above analysts' expectations who had indicated a turnover of around 90 billion. Services revenue grew from $20,91 billion to $23,87 billion, while iPhone sales fell from $51,33 billion to $45,96 billion. Apple finished the quarter with net income of $23,64 billion, compared to $24,16 billion in Q2 2022/2023. However, earnings per share rose from $1,52 to $1,53; the figure was higher than the analysts' consensus (1,5 dollars).
The longest positive sequence since 2018 on the Hong Kong stock exchange
Hong Kong has the longest positive streak of sessions since 2018. The reference index Hang Seng rose as much as 2,2%, for the ninth consecutive session of gains. Chinese tech giants Alibaba Group Holding e Tencent Holdings they were among the main architects of the rise in the Hang Seng
In recent weeks, the financial center's benchmark indices have all entered bullish territory, with Chinese money and global funds attracted by cheap valuations, Beijing's favorable political position and the peg of the city's currency to the dollar. The squares of the city are closed for the holidays Tokyo and mainland China.
He runs it yen by around 0,5% on the dollar at 152,89 on suspected government intervention to strengthen the Japanese currency to a 34-year low, while the ten-year US T bond sees a slight decline in yield at 4,58% and futures on the Nasdaq rise by 0,6%.
S&P sees debt at risk in Europe rising to 80 billion euros. Altice France weighs
The number of European companies rated “CCC+” or lower stood at 48 at the end of the first quarter of 2024, down from 51 at the end of 2023 and equal to the five-year average. We read it in a report by S&P Global Ratings. Europe is the only region where the year-to-date number of defaults is higher than the year-to-date count through 2023. Defaults in the region remain at the highest levels since 2008.
Outstanding European risky credit debt rose 45% to €80,1 billion from €55,1 billion at the start of 2024, mainly due to the downgrade of French telecom company Altice France SA to “CCC+ ”. Altice France alone added almost €23,8 billion to the total risky credit debt.
What to follow today
Full day macro data, from unemployment in Italy and Europe, to that in the USA, up to the update on pay slips. There Central bank of Norway announces its interest rate decision
Intesa Sanpaolo publishes the accounts for the first quarter of 2024 on May 3 in the early afternoon, the first bank among those listed on Piazza Affari. Analysts expect strong growth in net interest income (NII) due to high rates likely offsetting increased operating expenses, Bloomberg Intelligence Unit analysts write.
Fitch will decide on Italy's rating (BBB, stable outlook). The last to express its opinion was Dbrs which left its rating unchanged at BBB (high) with a stable trend. The BTP-Bund spread this morning it stands at 131 points, slightly rising. Yesterday the OECD he indicated Italy's GDP at +0,7% for 2024, below the government's estimates which instead sees it at +1%. Yesterday the Ministry of Economy announced that last month the balance of the state sector closed, provisionally, with a requirements of 18.100 million, compared to a requirement that last year, April 2023, was 11.798 million.
Today we will know each other the new guaranteed minimum rate BTp Value, the fourth of the series started last June, continued in October and relaunched two months ago with the third. The underlying structure of the "BTp Valore 4" is already known and follows the product placed in March: duration 6 years, increasing coupons (distributed quarterly, therefore four installments per year) with the "step-up" mechanism of 3+3 years. With a loyalty bonus of 0,8% (therefore 0,133% per year) which will be collected only by those who purchase it during placement (from 6 to 10 May) and keep it in the portfolio until its natural expiry. Via XX Settembre has so far collected 53,7 billion euros from small savers (to whom the product is aimed).
A year after taking office at the top, the CEO of Enel Flavio Cattaneo, will bring to the vote of the shareholders' meeting, scheduled for 23 May 2024, the proposal for a buyback for a maximum of 500 million shares, equal to approximately 4,92% of the capital, with an outlay of up to two billion EUR. The share buyback plan appears in the third item on the agenda ("Authorization for the purchase and disposal of own shares"), and will start once the previous one, which would expire on 10 November 2024, is revoked.
Anima, an Italian asset manager listed on Euronext Milan, has finalized the acquisition of Kairos Partners SGR, following the completion of the authorization process and in particular the receipt of the authorization from the Bank of Italy. The acquired company will be consolidated by Anima with effect from May 2024.
Tim increased the overall nominal value of the bond exchange offer launched as part of the sale of fixed network assets (Netco) to KKR to 5,5 billion euros from 5 billion previously announced. The telecommunications group e Oracle infrastructures have started a strategic collaboration with the aim of responding to the growing demand for cloud services from businesses and public administration.
Plenitude (formerly Eni gas and electricity) closed 2023 with an adjusted operating profit of 515 million euros and an adjusted net profit of 220 million euros, both up by approximately 50% compared to 2022. The results obtained were driven by the good performance of the retail sector and by the increase in installed renewable capacity and related production, confirming the value generated by the company's integrated business model, which in the coming years will also see an ever-increasing contribution from the electric mobility sector. The increase in the operating result was offset by higher financial charges, due to the increase in both debt and interest rates, higher net charges on equity investments, connected to the worsening of the results achieved by equity-valued subsidiaries, and higher income taxes as a consequence of the best result.
The French insurance group AXIS closed the first quarter of 2024 with gross premiums and other revenues growing by 6% to 34 billion euros. P&C Commercial lines premiums were up 7% to 12,1 billion euros, P&C Personal lines premiums up 6% to 6,4 billion euros, Life and Health premiums up 6% to 13,8 .229 billion euros. The Solvency II ratio stood at 2%, up 23 points compared to FYXNUMX. Separately, AXA announced that AXA and Athora have agreed to mutually terminate the sales agreement relating to the purchase of a closed life and pensions portfolio from AXA Germany, initially disclosed on 14 July 2022. AXA will retain this portfolio, which is well capitalized and duration matched, as well as the revenue associated. The resolution is expected to have no impact on the financial targets announced by the Group as part of its new “Unlock the Future” strategic plan.
Stellantis remains in the spotlight, after the strong correction suffered in the previous two sessions. The Ministry of Transport communicated that in April 2024 they were in Italy registered 135.353 cars, up 7,52% compared to the 125.884 in the same period last year. In the first four months of 2024, registrations in Italy grew by 6,1% to approximately 587 thousand cars.
Stellantis sales, however, fell slightly. In April 2024, the group's registrations amounted to approximately 42,5 thousand units, a decrease of 1% compared to the approximately 43 thousand cars sold in April 2023. Consequently, the market share of Stellantis it stood at 31,3%.
Cnh Industrial has cut its profit forecast for 2024, affected by slowing demand for its tractors and agricultural equipment as fluctuating crop revenues and rising borrowing costs curb investment in the sector. For CNH, sales of agricultural equipment, which represent almost 75% of total revenues, fell 14% to $3,37 billion in the first quarter, while revenues in the Construction segment, which usually represent about 16% in sales, fell 11% to $758 million. CNH now expects full-year adjusted earnings of between $1,45 and $1,55 per share, compared to the previously estimated range of $1,50-1,60 per share. The group also expects an 11-15% decline in agricultural segment sales for 2024, steeper than the 8%-12% decline previously expected.
Classic Ferrari for sale the number of cars produced will increase in a limited manner, focusing instead on growth in profitability. “We will continue to be consistent with our strategy: limited growth in volumes and it will not be done by increasing model volumes but by entering new segments,” he explained Enrico Galleria, chief marketing and commercial officer of Ferrari, on the sidelines of the presentation of the new Ferrari 12Cilindri.
Cleansing, a company active in the Italian real estate sector with development and trading activities listed on Euronext Milan, closed the first quarter of 2024 with a production value of 516 thousand euros, up compared to the 314 thousand euros obtained in the first three months of last year. The final result was negative for 2,39 million euros, compared to the red of 7,52 million recorded in the 1st quarter of 2023. At the end of March 2024 the net financial position was positive for 42,24 million euros, compared to 50,24 .102,71 million at the beginning of the year. Also at the end of March, the real estate assets were recorded in the balance sheet for 102,35 million euros, from 2024 million at the beginning of the year. Risanamento's management expects that the 2023 financial year may record a negative result but consistent with that of the XNUMX financial year.
Societe Generale closed the first quarter of 2024 with revenues of 6,6 billion euros, substantially stable compared to the first quarter of 2023 (-0,4%), driven by the excellent performances of Global Banking and Investor Solutions, Private Banking and International Retail Banking , from the increase in revenues and interest margin in France compared to the fourth quarter of 2023, despite the shift from sight deposits to remunerated savings, the stabilization of margins and the normalization of used car sales results in Ayvens.
