"The cycle of increases changes pace: from now on, no more sprints, we will run a marathon". In other words, metaphor aside, last night's hike will probably be the last 75 basis point increase by the Fed. But the president Jerome Powell in the press conference he froze the enthusiasm of Wall Street: the war against inflation continues. Indeed, at the end of a path of mini-rises, rates will rise more than initially expected. It is really premature to talk about a turning point. "I'm starting to see the light at the end of the tunnel - said Powell - but it's very, very far away".
In summary, in December rates will probably rise by only half a percentage point, but futures point to late spring next year as the arrival point of the monetary tightening, at 5%-5,25%, against the previous 4,5% . Mr. Fed's show first galvanized the markets, given the soft tones of the statement, then depressed them with his warnings. Powell's not exactly hawkish and not even dovish, let's say "hawkish" attitude, has not satisfied investors but shouldn't cause further upheaval:
- Il Dow Jones closed down by 1,55%, theS & P 500 -2,55, new cold shower for the Nasdaq to -3,36%. This morning, US futures signal stability.
- The settlements of the Big Health continue after the opioid scandal: Wal Mart, Wallgrenn and CVC have agreed to pay 13,8 billion dollars to the victims.
- It dramatically affects the pronounced weakness of the Big Tech, once again in the sights of sellers: Amazon -4,8% fell to lows since April 2020, Meta (Facebook) -4,9% updated lows since 2016, A (Google) -3,8% fell to new lows since January 2021. The heavy sell-off hasn't ended yet.
- On the rise, but not by much, also the yields of the treasury bonds to 4,10% (5 points more) and the dollar to 0,9825 against the euro. “I realize – admitted Powell – that this is a problem for many, but it is part of our strategy against inflation, an important battle for everyone”.
Opening in red in Europe. Spreads at 216
European stock exchanges are expected to open down 1%, this is the negative change in the EuroStoxx 50 future.
Yesterday, at the end of a waiting session, Piazza Affari +0,03% it was the only one in Europe to close with a positive sign.
Lo spread between ten-year Italian and German it rises to 216 basis points (+2,75%), with rates of 4,28% and 2,12% respectively.
Today Bank of England it will raise rates again by three quarters of a point to 3%. There GBP is up, as well as the yen supported by new purchases to cool the rise of the dollar.
China does not loosen its grip on Covid
In Asia, China's stock markets fell after the reconfirmation of the guidelines on the fight against the pandemic by the Beijing health authorities. China's National Health Commission cooled the expectation of a softening of health rules with a statement underlining the importance of vigilance and contagion control. The Foxconn plant that makes most of the iPhones has been shut down and fenced off.
Hang Seng of Hong Kong loses 2,5%. CSI300 of the Shanghai and Shenzen lists -1%.
On equality the Nikkei of Tokyo and the BSE sensex of Mumbai. Slightly up the Kospi of Seoul. S&P ASX200 of Sydney -1,8%.
Oil holds back, the oncoming cold pushes gas (+8%)
Il Petroleum WTI, influenced by indications from China, decreased by 0,6% to 89,5 dollars a barrel. The EIA (Energy Information Administration) communicated that the US crude stock decreased by about 3,1 million barrels, compared to the +80 expected by analysts. Gasoline stocks decreased by approximately 1,26 million barrels compared to the -0,6 million expected by analysts.
Yesterday the gas European +8% to 125 euros, also in anticipation of an imminent drop in temperatures. Good news for Italy: at the end of the injection campaign concluded on October 31st, the filling level of storage of Stogit (100% subsidiary of Snam) reached 95,2%, for a total of 11,2 billion cubic meters of natural gas, to which must be added the 4,5 billion cubic meters of strategic storage
Piazza Affari: Takeover bid for Telecom, Stellantis' accounts are up and running
The indiscretions about the big maneuvers continue in the newspapers Telecom +1,54%. Yesterday CEO Labriola met Prime Minister Giorgia Meloni and Undersecretary Alessio Butti at Palazzo Chigi. Author of the plan which envisages the transfer of the entire Telecom to CDP and then merge the network with Open Fiber and give up everything else. But Cdp, in doing so, could end up in the crosshairs of Eurostat which would make Telecom fall back into public debt. This is how the rumor about a joint takeover bid by Cdp, Kkr, Vivendi and Macquarie takes shape.
The conference call after the quarterly is scheduled for today stellantis. The company ended the third quarter with net revenues up 29% to 42,1 billion euros thanks to volume growth and the foreign exchange effect. Vehicle deliveries grew by 13% to 1,281 million units also due to the better availability of semiconductors. The group confirms its guidance for 2022. Car sales in Italy in October grew by 14,56%. Stellantis rises by 6,54% for a market share of 32,9%.
MediaForEurope (MFE) has secured a further stake of up to 4,0% in ProSiebenSat.1 by climbing to 29% of the capital and 29,9% of the voting rights, consolidating its position as the largest single shareholder of the German media group.
MPS. At the end of the unexercised auction, the purchased rights give the possibility of subscribing a total of up to a further 112 million euro of the bank's capital increase, or almost 4,5% of the entire 2,5 billion recapitalization.
The operation Dufry-Autogrill is proceeding according to plan and the closing of the first phase, with the transfer to Dufry of the 50,3% held by Edizione in Autogrill, is expected by the end of the first quarter of 2023, announced the Swiss group.
