Even GM gave in. The US union, after six weeks of strikes, brings home a “historic” agreement: at the end of the contract, in four years, the average annual salary of a blue suit will be 84.500 dollars. The turning point, for now, does not slow down Wall Street and does not worry the Fed too much which, for once, will not increase rates. But it will help convince Powell to keep his attention on the cost of money even if yesterday the US Treasury anticipated that it will issue new securities for "only" 76 billion more dollars in the quarter, less than expected. But the first news regarding central banks came from the East.
In the meantime, the Bank of Japan has decided to adopt a more flexible approach by allowing the yield on ten-year government bonds to rise above 1%: the move is an attempt to counter inflationary pressures. Now the ball is in the government's court which has already said it is ready to intervene on the currency. According to traders, the alert threshold is 150 exchange rate. After the decision the stock exchange Tokyo rose by 0,7%.
China's decline is also being felt in Europe
However, Chinese stock markets are falling. Hang Seng by Hong Kong -1,9%. CSI 300 of the price lists Shanghai and Shenzhen -0,6%, Taiex of Taipei -1%. The data released overnight indicate that theThe economy is slowing down again. The manufacturing PMI index fell to 49,5. The services component also slows down to 50,6.
China's new slowdown is also being felt in Europe. The stock exchanges of the Old Continent are about to open lower, futures of the EuroStoxx50 index -0,2%.
Yesterday the Ftse Mib of Milan appreciated by 0,19% to 27.339 basis points, led by Mediobanca, + 3,46%.
Milan -3,3% in October, inflation data today
During October Milan lost 3,3% approximately, in line with most price lists. Almost all. Out of twenty European sector indices, for example, 16 recorded monthly losses of more than -2%. To save oneself, but not completely, one had to have Energy, Insurance and Media, which recorded performances just below parity. They are in the queue with losses approaching -10%. Automotive and Retail.
At 11 am the data are published Eurozone GDP and inflation. According to the forecasts of Intesa Sanpaolo economists, inflation is expected to fall sharply in October to 2,4% from 5,3% in September. The index should rise again at the beginning of next year, and then fall again in the 2nd half of the year, until it reaches 2,2% in December 2024.
Lively day of government bonds of the euro zone, with purchases supported by signs of a slowdown in inflation. Ten-year Bund at 2,82%. BTP at 4,73% from 4,79%. Spread at 192.
Tomorrow the changing of the guard in via Nazionale
Today Vincenzo Visco will give his last speech as governor of the Bank of Italy while waiting for the relay race with Fabio Panetta, replaced on the ECB board by Piero Cipollone.
On the corporate front, the spotlight is on Stellantis quarterly which showed revenues growing by 7% and deliveries increasing by 11%: Carlos Tavares will have the honor and burden of commenting on the agreement with the Uaw.
Apple, before the end of the day, presents the new Macs
They are Wall Street futures are weakt. Yesterday the S&P500 achieved one of the best sessions of the month, +1,2%.
On Wall Street, it is clear from the performances that they are the tech those who suffer the most the high interest rate scenario: the Dow Jones lost -2,2% in the month, against -3,3% of the S&P500 and -3,80% of the Nasdaq.
Spotlight on Apple which, while waiting for the accounts, yesterday presented the new 14 and 16-inch MacBook Pro and 24-inch iMac models, together with the new, more powerful M3 chips
The US Treasury is satisfied: 76 billion fewer new bonds
Adjustment session for US government bonds before the Fed. XNUMX-year Treasuries unchanged at 4,87%, Two-year Treasury to 5,02%.
In the quarterly issuance program for the fourth quarter announced yesterday evening, the US Treasury issues decrease by 76 billion dollars between October and December than expected in the previous quarter, thanks to expectations of higher revenue. Investors were awaiting the announcement very carefully, given the sharp increase in Treasury yields which on the 100-year segment have risen by XNUMX bps since July.
Moving on to raw materials, the Brent is at $87,80, the wtf at $82,70. Prices slightly up from over -3% yesterday. October, despite the strong geopolitical turbulence, is about to end with a loss of around 8%. Supply concerns sparked by conflict in the Middle East tempered China's disappointing data.
The strikes cost Tavares 3 billion, but Stellantis' revenues increase
At center stage is conference call by Carlos Tavares. In the meantime, the quarterly accounts: Stellantis closed the third quarter with net revenues up 7% year-on-year to 45,1 billion euros, supported by an increase in volumes with stable prices, partially offset by the impact of exchange rates.
The group's consolidated deliveries amounted to 1,427 million pieces, up 11% compared to third quarter 2022, with year-on-year improvements in Europe, the Middle East and Africa, North America and South America.
The overall stock of new vehicles amounted to 1,387 million units as of September 30. Global electric car sales increased by 37% compared to the third quarter of 2022, mainly driven by the Jeep Avenger, Citroen Ami, Peugeot E-208, new Fiat 500e and Citroen e-Berlingo models.
The strikes have had a negative impact on net revenues of approximately 3 billion euros at the end of October, compared to production plans. Faced with the results achieved, the group confirmed its guidance for 2023, based on which it expects to record double-digit growth in the adjusted operating margin while achieving industrial free cash flow. The 1,5 billion euro buyback program is finally in line with the group's plans and should be completed during the fourth quarter of 2023.
In Piazza Affari he is still under the spotlight In bondage. The Brookfield fund has asked for a meeting with CDP's top management because it has targeted the payments company and aims to beat CVC's competition, MF writes, adding that at the moment there are no negotiations.
