Today ECB, deaf to Giorgia Meloni's criticisms, will raise rates by 75 points to 2%, the highest level since the first quarter of 2009. A decision that the markets discounted which did not prevent further progress for bonds. While waiting for Christine Lagarde's words, the operators preferred to concentrate on the decisions of the Bank of Canada which, surprisingly, raised rates by only 50 basis points, compared to the 75 basis points expected, from 3,25% to 3,75%. This leaves open the hope that even the FED at the beginning of November will be less aggressive than expected.
Meta's revenues go down, the New Economy suffers
While waiting for the next decisions, the Bull slows down after the strong rises of the last few days. But the markets, thanks to the strength of the banks and the "old economy", seem able to withstand the sudden slowdown of the tech sector, victim of lower consumption and higher rates. Clamorous tonight the descent of Meta (formerly Facebook) -12% after the stock market. Mark Zuckerberg's company has burned another 67 billion dollars which add to the almost half a billion lost in recent months. Meta, for the second quarter in a row, lost turnover (27,7 billion -4,4%) while costs increased (over 100 billion for the current year). But the Facebook crisis, aggravated by Apple's new privacy protection policies, is just the tip of the iceberg of the expected slowdown of the new economy: Google's profits are down, Snap's shoulder strap, Microsoft announces a slowdown in the race for the cloud. The result? Since the beginning of the year, the Nasdaq has lost more than 30% against 20% for the S&P index.
Unicredit runs, Crédit Suisse cleans up
- In Europe, bank stocks take care of supporting the lists, starting with Unicredit +4,31% after profits of 1,7 billion euros in the quarter, two thirds above forecasts. Analysts are now awaiting Banca Intesa's reply (quarterly on 4 November).
- The recovery in interest rates also favored the accounts of Barclays need Deutsche Bank. The great sufferer, namely Crédit Suisse, is cleaning up, hopefully once and for all. The bank reported a quarterly loss of around CHF 4 billion, mostly due to an asset adjustment. The financial group plans to increase its capital by 4 billion francs, sell assets in the management of securitizations and reduce costs by 15% to face a complicated scenario.
Milan updates the highs of the month, the Btp are running
Business Square closed with a 0,5% gain on its one-month high In line with 100 FTSE in London (the autumn financial report, the first by Rishi Sunak, was postponed), less than in Frankfurt +0,8%, supported by the excellent results of Mercedes.
- The future of the index Euro Stoxx 50 is down by 0,3%.
- Il construction sector ten-year bond starts again on the day of the ECB from 4,35%, the Bund at 2,10%. The Treasury sold all 4 billion BTPs, both 5-year and 10- and XNUMX-year indexed, all with declining yields.
- Twenty's rate decline also on US bonds: the 4-year bond is close to 4,08% this morning from XNUMX% yesterday morning.
- Double travel speed a Wall Street: Nasdaq down -2,04%, Dow Jones flat - 0,01%, S&P -0,67%.
- This morning the future of S & P500 marks an increase of 0,5%.
Asia recovering but the profits of the Big Chinese are declining
The braking of the accounts of Samsung (-23%) this morning confirms the difficulties of the tech sector also in Asia. South Korea's GDP rose 0,3% sequentially in the third quarter, the weakest growth in the past four quarters. Year-on-year growth is +3,1%, a slight improvement compared to the April-June period.
Il Nikkei of Tokyo -0,6%. The two-day meeting of the Bank of Japan board has begun, the decision will be communicated tomorrow morning.
Recover the China. The Hong Kong stock market is up 1,7% thanks to the boost from tech. Alibaba +7%, JD.com +9%. Little moved the CSI300 of the Shanghai and Shenzen lists -0,2%. The decline in profits generated by industrial activities in China continues in an increasingly marked way. According to the National Bureau of Statistics, the decline in the January-September period was -2,1%. The profits of manufacturing companies mark a drop of -13% in the same period.
Gas, Meloni anticipates the green light for extractions in Italy
- Petroleum Brent e WTI up 0,2% from yesterday's +3%. An increase supported by two factors: signs of a recovery in global demand and a drop in the dollar, to which the price is inversely correlated.
- European gas yesterday +4,5% to 104 euros. According to numbers from Assorisorse, the Confindustria association of extractive companies, Italian gas production could increase from 3,3 billion cubic meters in 2021 to around 6 billion cubic meters a year by 2025 and over 7 billion of cubic meters in the following years. Increasing national production is what the Draghi government wanted to do and what the Meloni government has already reiterated in its program.
Stm opens the parade of accounts today
In the night the accounts Stm. The company closed the third quarter with an increase in revenues and operating profit better than expected. The former climbed 35% year over year to $4,32 billion on strong demand. Operating profit adjusted at 1,27 billion, consensus at 1,15 billion. The chipmaker expects a turnover of around 2022 billion for 16,1: the previous indication was 15.9-16,2 billion.
Saipem. Thanks to the significant increase in revenues from the offshore construction area, the third quarter closed with an adjusted Ebitda of 215 million euros. The company has improved its indications for 2022: excluding onshore drilling area, the year will close with nine billion euros of revenues, adjusted EBITDA expected at over 550 million euros, net debt post IFRS at approximately 300 million euros .
Moncler closes the third quarter with revenues of 638,3 million euros, up 12% at constant exchange rates, driven by strong growth in Europe and the recovery in Asia thanks to the reopening of stores in the Chinese market.
Tim. Kepler Cheuvreux lowers the judgment to Hold.
Italian post. The final results of theOpa Sourcesense confirm that Poste Italiane will hold 98,37% of the share capital. Borsa Italiana will order that Sourcesense shares be delisted from trading on Euronext Growth Milan.
