Piazza Affari achieves the best performance in Europe and flies above 25 points, a level that the Ftse Mib has not seen since 3 October 2008. At the end of the day, the blue chip index marks +1,02% to 25.120 points, driven by rally of Ubi Banca, Banco Bpm and Nexi. Since the beginning of the year, despite the very strong difficulties due to the Coronavirus, the increase is 8,25%.
THE FORECASTS OF NOMURA
Investors decide to ignore Nomura's gloomy forecasts on Italy which even speaks of a recession for 2020: «Considering the low growth rate with which Italy is starting this year, we now expect the country to enter a recession in 2020, with -0,1% year-on-year growth, well below the current Government estimate of 0,6%», writes Nomura in his baseline scenario contained in a report dedicated to the global economic impact of the coronavirus . The reply from the Minister of Economy, Roberto Gualtieri, was immediate according to which "It is still premature" to estimate the impact of the coronavirus on the Italian economy, "we are waiting to monitor developments in the Chinese economy, we are working" on this, "but we are monitoring the economic effects on the various sectors to eventually identify specific measures for individual sectors". Thus the Minister of Economy Roberto Gualtieri responding to those who asked him if there was already an estimate of the effects of the emergency on the Italian economy.
THE EUROPEAN EXCHANGES
Despite the lack of input from Wall Street, closed for Presidents' Day, the other European Stock Exchanges also closed the session positively, confident in the news from China. The Chinese central bank has injected liquidity with a one-year credit line of 200 billion yuan (MLF) at a rate of 3,15%, lowered from the previous 3,25%, in order to ease pressure on companies suffering from the effects of the coronavirus epidemic. The Pboc today also proceeded to carry out a liquidity injection on the 100 billion yuan markets, on the day of the expiry of the 1.000 billion yuan reverse repo, thus draining the figure of 900 billion.
The new measures, aimed at stimulating the local economy, bode well for the old continent's price lists, which all record above-par performances: in addition to Milan, Frankfurt (+ 0,29%), Paris (0,31%) led by Alstom (+3,5%), Madrid (0,52%), London (0,35%).
BANKS FLY TO MILAN
Where's Banca (+ 5,5%), Bpm bank (+ 5,4%) and Bper (+3,3%), rightly considered to be the protagonists of future banking mergers, dominated the session, pushing up the sector index (Ftse Italia Banks +1,82%). The bank led by Victor Massiah presented its new business plan today, positively surprising the market in terms of profit targets (665 million at the end of the plan compared to 353 million net of non-recurring items in 2019). However, the institute plans beyond that 2 thousand redundancies by 2022 and the closure of 175 branches, decisions that will lead to a 1,9% drop in operating costs.
Also up sharply nexi (+3,87%) who continues to benefit from rumors about a possible wedding with Sia. Not only that: Citigroup has revised the target price of the stock upwards, bringing it from 13,7 to 20 euros, with confirmation of the Buy recommendation. Stands out Pirelli (+4,4%) pending the new industrial plan which will be presented on Wednesday 19 February.
THE WORST TITLES OF THE FTSE MIB
It is placed at the bottom of the main list stmicroelectronics (-2,66%) followed by Leonardo (-0,87%). Weighing fears about the new US tariffs that should start in March. Negatives too Campari (-0,56%) And Azimuth (-0,54%).
FEATURED TITLES
Outside the Ftse Mib flies there Lazio (+11,48%), who after beating Inter is openly launching a challenge to Juventus for the Scudetto race. Also up sharply Interpump (+8,28%) which presented its accounts today, Cleansing (9,65%) and Illimity Bank (+5,77%). In deep red ePrice (-9,2%), which filed with revenues falling by 20,6% to 130,57 million euros and a negative final result for almost 41 million euros.
SPREAD, OIL, EURO
Turning to the bond market, the spread drops to 130 points (-3,83%), while the ten-year yield stands at 0,902%. Little moved the euro-dollar, with the cross scoring 1,083118 points, at its lowest level since April 2017. Petroleum stable with April Brent at 57,2 dollars a barrel and March Wti at 52,2 dollars a barrel.
