Pessimism reigns on the markets which open the second quarter of 2020 with a sharp decline. Business Square, which also loses almost two percentage points (-2% around 16.700 points), is one of the least affected lists. They do much worse Frankfurt -3% and Paris -3,4% London -3,4%. The red alert on the coronavirus launched by Donald Trump ("it's a matter of life and death") contributes to amplify the reactions, in open contrast to the optimism heralded until a few days ago.
The PMI indices confirmed the gravity of the fall in the European manufacturing system: the numbers signal a drop from 49,2 (already a sign of recession) to 44,5, the lowest figure since 2012 but, warns Chris Williamson of Markit, "the worse than the decline is yet to come: the figure does not yet reflect the steep decline in business and consumer spending. In Italy, activity contracted in March at the fastest pace for eleven years. at its lowest level since April 2009.
Keep going up it spread: at the end of the morning the gap between the BTP and the Bund settled at 205 points after having risen to 211, under the downward pressure of the securities of a large part of the Eurozone. The 1,59-year rate is at 1,53% (from XNUMX%).
Medium-long term emissions are multiplying. Yesterday it was the turn of Belgium which, for a 7-year bond, collected orders for 57 billion (against 8 offered). This morning it's Portugal's turn. But Germany and Greece are also active.
Eurozone diplomacy is on the move. The German left but also a part of the government parties in the Netherlands have broken a spear in favor of the Italian demands on the Eurobonds. The Financial Times anticipates the possibility that the European Commission will take the field with its one hundred billion euro credit line, guaranteed by the European Union. Meanwhile, the decline in theeuro against the dollar at 1,093 -1%.
Il Petroleum, Brent is trading at $25,2 a barrel. Eni +0,7%, Saipem -1,3%.
Stretch, for the second day in a row, Atlantia +5,2% in the wake of a possible agreement with the state. The Benetton family which controls Autostrade through Atlantia – in turn controlled by the Edizione holding with 30% – would fall in Atlantia's capital below the majority stake. Aspi would pay a penalty of over 2 billion to support the Genoa system, including the port system, for the collapse of the Morandi viaduct and would accept a 5% reduction in tariffs on the entire network, guaranteeing the maintenance investment plan. In exchange, article 35 of the Milleproroghe which revokes the concession could be sterilized. The F2i funds, the Australian Macquarie and the Cassa Depositi e Prestiti could acquire the shares of Atlantia.
Weak banks later the postponement of dividends to after October XNUMXst, starting from Intesa Sanpaolo -3,1%. Similar decision by Ubi -2,7% and Bpm bank -1,8%.
Generali -1,7%. Moody's has cut the rating of Italian companies active in the life sector.
After an initial flare-up, the race went out Pirelli -2,3% after having also scored +4% in the wake of the news of the entry into the capital of Bicocca of Brembo + 0,88 % with a share of 2,4%. The operation, said the Bergamo-based group, stems from "a non-speculative and long-term approach".
Camfin and Longmarch, the Luxembourg vehicle of the Chinese Niu family, have signed a preliminary and non-binding memorandum of understanding to evaluate a potential strategic partnership in private equity activities. The alliance could also include participation in financial instruments relating to a position corresponding to 5,19% of the Italian company.
Different reports from analysts:
Buzzi -1,7% Citigroup starts hedging with Buy. Target price at 22,5 euros.
Mediaset +0,3% Goldman Sachs lowers the target price to 1,2 euro.
Moncler -1,3%. JP Morgan brings the target price to 32 euros.
Confinvest +3,7%. The Italian leader in the trading of physical investment gold. Integrae Sim has raised its recommendation to Buy, bringing the target price to 5,84 from 3,14 euros.
