The hint of a rise in European lists has faded, pushed upwards by the comforting data on Chinese imports/exports, which fell by only 3,5% in March and by the echo of the measures taken by the Fed at the end of the week. The Stock Exchanges are now awaiting quarterly data from the major US banks. In the afternoon we start with the advice of Jp Morgan and Wells Fargo. The key data, as far as banks are concerned, should be those on provisions for non-performing loans. They also expect the new forecasts for the current year, updated to Covid 19.
At Piazza Affari the index advanced about 0,15% at mid-day, better than Paris, slightly negative, but well below Frankfurt +1% and Madrid. London -0,5% is in negative ground. Only the healthcare sector shines, with Astrazeneca up 5,4% after announcing the start of a clinical trial to evaluate the potential of the drug Calquence in the treatment of Covid-19 patients.
Swedish rare disease pharmaceutical group Sobi jumped 8,3% on higher-than-expected first-quarter earnings on higher demand for some of its drugs due to the pandemic. Diasorin flies to Piazza Affari +8,4% which has signed an agreement with the San Matteo Polyclinic in Pavia for the development of two tests for Covid 19.
Btp yields rise to 1,65%, + 6 basis points. The Btp/Bund spread rises after the long Easter break: the gap moves above 210 points, compared to 194 of the previous closure on April 9th. The position of the Italian government remains very critical of the Mes, which will not be activated, while Giuseppe Conte continues to threaten not to sign the next EU budget if common debt instruments are not envisaged.
The European Union could finance a recovery fund of up to €1.500 trillion with bonds guaranteed by member states. This was stated by the vice president of the European Commission, Valdis Dombrovskis, in an interview with the German newspaper Handelsblatt.
70% of companies with at least 50 employees do not expect there will be any improvement in the economic situation in the second quarter, according to a survey conducted by Bank of Italy between 3 and 26 March, before the launch of even more restrictive measures. Confcommercio estimates a trend reduction in GDP of 3,5% in the first quarter of 2020 and 13% in April due to the coronavirus which led to a consumption collapse in March of 31,7%.
The euro appreciated slightly to 1,094 (+0,3%), from -0,3% at Friday's close. Gold moved little this morning at 1.718 dollars an ounce which in any case travels to its highest level since 2012 in dollars, but reaches an all-time record in euros with a rise of +16% in the single currency. Gold is therefore proving to be one of the best assets to protect yourself in times of pandemic.
Oil rises, but not by much, supported by the cuts (9,7 million barrels) decided by producers under the pressure of Donald Trump. Brent rose by 1% to 32 dollars a barrel, after yesterday's +0,8%. Over the weekend, the G20 countries agreed on a program to reduce crude oil production, largely borne by the OPEC + countries. Eni rises by 1%. Saipem +0,5%. Mediobanca lowers its recommendation to Neutral.
In great evidence in Piazza Affari Generals +2,4% after the announcement that the Lion will pay the dividend in two tranches 2019 equal to 0,96 euros, fifty cents in May and the rest before the end of the year, thus obeying the calls of IVASS but saving the interest of the shareholders, including the 65 retail shareholders.
UnipolSai flat: gives a free month to RCA Auto customers, which translates into less collection of about 250 million euros. With this move, the company tries to anticipate the request for discounts on the next policy.
Also good Fiat-Chrysler +2,3%: Carlos Tavares intends to speed up the integration of the group with PSA. FCA has reached an agreement with the main trade unions regarding the return to work: some plants could restart on April 20. Ferrari +0,75%.
Pirelli -0,2%: Mediobanca Securities cut its rating to Neutral. Stretch Nexi +4%: the IPO of SIA, a digital payments company that is also evaluating the merger with Nexi, is approaching. Down Unicredit -3%. Morgan Stanley lowers the target price to 11 euros. Weak Bench Bpm -1,5%. Morgan Stanley lowers the target price to 1,2 euros.
Also worth noting: Stm -0,14%. JP Morgan cuts judgment to Neutral. Weak utilities. Enel -1,2%, Snam -0,15%, Terna +0,5%. Italgas -0,6%: Barclays cut the target price.
Banca Ifis ha submitted a binding offer for the acquisition of 70,77% of the share capital of Farbanca SpA, a company held by Banca Popolare di Vicenza in compulsory administrative liquidation. The remaining 29,23% belongs to 450 small shareholders, mainly pharmacists.
